H. Rept. 107-334 - 107th Congress (2001-2002)
December 13, 2001

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House Report 107-334 - NO CHILD LEFT BEHIND ACT OF 2001




[House Report 107-334]
[From the U.S. Government Printing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-334
_______________________________________________________________________

                                     




                   NO CHILD LEFT BEHIND ACT OF 2001

                               __________

                           CONFERENCE REPORT

                              to accompany

                                 H.R. 1

<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>


   December 13 (legislative day, December 12), 2001.--Ordered to be 
                                printed

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
76-598                     WASHINGTON : 2001


107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-334

======================================================================



 
                    NO CHILD LEFT BEHIND ACT OF 2001

                                _______
                                

    December 13 (legislative day, December 12), 2001.--Ordered to be 
                                printed

                                _______
                                

 Mr. Boehner, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                         [To accompany H.R. 1]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
1), to close the achievement gap with accountability, 
flexibility, and choice, so that no child is left behind, 
having met, after full and free conference, have agreed to 
recommend and do recommend to their respective Houses as 
follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, inserting the following:

SECTION 1. SHORT TITLE.

    This title may be cited as the ``No Child Left Behind Act 
of 2001''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Transition.
Sec. 5. Effective date.

    TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

Sec. 101. Improving the academic achievement of the disadvantaged.

TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS AND 
                               PRINCIPALS

Sec. 201. Teacher and principal training and recruiting fund.
Sec. 202. Continuation of awards.

   TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT STUDENTS

Sec. 301. Language instruction for limited English proficient children 
          and immigrant children and youth.

                     TITLE IV--21ST CENTURY SCHOOLS

Sec. 401. 21st century schools.

   TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

Sec. 501. Innovative programs and parental choice provisions.
Sec. 502. Continuation of awards.

                TITLE VI--FLEXIBILITY AND ACCOUNTABILITY

Sec. 601. Flexibility and accountability.
Sec. 602. Amendment to the National Education Statistics Act of 1994.

     TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

Sec. 701. Indians.
Sec. 702. Conforming amendments.
Sec. 703. Savings provisions.

                     TITLE VIII--IMPACT AID PROGRAM

Sec. 801. Payments relating to Federal acquisition of real property.
Sec. 802. Payments for eligible federally connected children.
Sec. 803. Construction.
Sec. 804. State consideration of payments in providing State aid.
Sec. 805. Authorization of appropriations.

                      TITLE IX--GENERAL PROVISIONS

Sec. 901. General provisions.

   TITLE X--REPEALS, REDESIGNATIONS, AND AMENDMENTS TO OTHER STATUTES

                             PART A--REPEALS

Sec. 1011. Repeals.
Sec. 1012. Conforming clerical and technical amendments.

                         PART B--REDESIGNATIONS

Sec. 1021. Comprehensive Regional Assistance Centers.
Sec. 1022. National Diffusion Network.
Sec. 1023. Eisenhower Regional Mathematics and Science Education 
          Consortia.
Sec. 1024. Technology-based technical assistance.
Sec. 1025. Conforming amendments.

                       PART C--HOMELESS EDUCATION

Sec. 1031. Short title.
Sec. 1032. Education for homeless children and youths.
Sec. 1033. Conforming amendment.
Sec. 1034. Technical amendment.

              PART D--NATIVE AMERICAN EDUCATION IMPROVEMENT

Sec. 1041. Short title.
Sec. 1042. Amendments to the Education Amendments of 1978.
Sec. 1043. Tribally Controlled Schools Act of 1988.
Sec. 1044. Lease payments by the Ojibwa Indian school.
Sec. 1045. Enrollment and general assistance payments.

                  PART E--HIGHER EDUCATION ACT OF 1965

Sec. 1051. Preparing tomorrow's teachers to use technology.
Sec. 1052. Continuation of awards.

                PART F--GENERAL EDUCATION PROVISIONS ACT

Sec. 1061. Student privacy, parental access to information, and 
          administration of certain physical examinations to minors.
Sec. 1062. Technical corrections.

                  PART G--MISCELLANEOUS OTHER STATUTES

Sec. 1071. Title 5 of the United States Code.
Sec. 1072. Department of Education Organization Act.
Sec. 1073. Education Flexibility Partnership Act of 1999.
Sec. 1074. Educational Research, Development, Dissemination, and 
          Improvement Act of 1994.
Sec. 1075. National Child Protection Act of 1993.
Sec. 1076. Technical and conforming amendments.

SEC. 3. REFERENCES.

    Except as otherwise expressly provided, whenever in this 
Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6301 et seq.).

SEC. 4. TRANSITION.

    (a) Multi-Year Awards.--Except as otherwise provided in 
this Act, the recipient of a multi-year award under the 
Elementary and Secondary Education Act of 1965, as that Act was 
in effect prior to the date of enactment of this Act, shall 
continue to receive funds in accordance with the terms of that 
award, except that no additional funds may be awarded after 
September 30, 2002.
    (b) Planning and Transition.--Notwithstanding any other 
provision of law, a recipient of funds under the Elementary and 
Secondary Education Act of 1965, as that Act was in effect 
prior to the date of enactment of this Act, may use funds 
available to the recipient under that predecessor authority to 
carry out necessary and reasonable planning and transition 
activities in order to ensure an orderly implementation of 
programs authorized by this Act, and the amendments made by 
this Act.
    (c) Orderly Transition.--The Secretary shall take such 
steps as are necessary to provide for the orderly transition 
to, and implementation of, programs authorized by this Act, and 
by the amendments made by this Act, from programs authorized by 
the Elementary and Secondary Education Act of 1965, as that Act 
was in effect prior to the date of enactment of this Act.

SEC. 5. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this Act, 
this Act, and the amendments made by this Act, shall be 
effective upon the date of enactment of this Act.
    (b) Noncompetitive Programs.--With respect to 
noncompetitive programs under which any funds are allotted by 
the Secretary of Education to recipients on the basis of a 
formula, this Act, and the amendments made by this Act, shall 
take effect on July 1, 2002.
    (c) Competitive Programs.--With respect to programs that 
are conducted by the Secretary on a competitive basis, this 
Act, and the amendments made by this Act, shall take effect 
with respect to appropriations for use under those programs for 
fiscal year 2002.
    (d) Impact Aid.--With respect to title VIII (Impact Aid), 
this Act, and the amendments made by this Act, shall take 
effect with respect to appropriations for use under that title 
for fiscal year 2002.

SEC. 6. TABLE OF CONTENTS OF ELEMENTARY AND SECONDARY EDUCATION ACT OF 
                    1965.

    The Act is amended--
            (1) in the heading of section 1, by striking 
        ``TABLE OF CONTENTS'' and inserting ``SHORT TITLE''; 
        and
            (2) by adding after section 1 the following new 
        section:

``SEC. 2. TABLE OF CONTENTS.

    ``The table of contents for this Act is as follows:

``Sec. 1. Short title.
``Sec. 2. Table of contents.



   ``TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED



``Sec. 1001. Statement of purpose.
``Sec. 1002. Authorization of appropriations.
``Sec. 1003. School improvement.
``Sec. 1004. State administration.

    ``PART A--IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL 
                                AGENCIES

                 ``Subpart 1--Basic Program Requirements

``Sec. 1111. State plans.
``Sec. 1112. Local educational agency plans.
``Sec. 1113. Eligible school attendance areas.
``Sec. 1114. Schoolwide programs.
``Sec. 1115. Targeted assistance schools.
``Sec. 1116. Academic assessment and local educational agency and school 
          improvement.
``Sec. 1117. School support and recognition.
``Sec. 1118. Parental involvement.
``Sec. 1119. Qualifications for teachers and paraprofessionals.
``Sec. 1120. Participation of children enrolled in private schools.
``Sec. 1120A. Fiscal requirements.
``Sec. 1120B. Coordination requirements.

                        ``Subpart 2--Allocations

``Sec. 1121. Grants for the outlying areas and the secretary of the 
          interior.
``Sec. 1122. Allocations to States.
``Sec. 1124. Basic grants to local educational agencies.
``Sec. 1124A. Concentration grants to local educational agencies.
``Sec. 1125. Targeted grants to local educational agencies.
``Sec. 1125AA. Adequacy of funding of targeted grants to local 
          educational agencies in fiscal years after fiscal year 2001.
``Sec. 1125A. Education finance incentive grant program.
``Sec. 1126. Special allocation procedures.
``Sec. 1127. Carryover and waiver.

           ``PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS

                       ``Subpart 1--Reading First

``Sec. 1201. Purposes.
``Sec. 1202. Formula grants to State educational agencies.
``Sec. 1203. State formula grant applications.
``Sec. 1204. Targeted assistance grants.
``Sec. 1205. External evaluation.
``Sec. 1206. National activities.
``Sec. 1207. Information dissemination.
``Sec. 1208. Definitions.

                    ``Subpart 2--Early Reading First

``Sec. 1221. Purposes; definitions.
``Sec. 1222. Local early reading first grants.
``Sec. 1223. Federal administration.
``Sec. 1224. Information dissemination.
``Sec. 1225. Reporting requirements.
``Sec. 1226. Evaluation.

  ``Subpart 3--William F. Goodling Even Start Family Literacy Programs

``Sec. 1231. Statement of purpose.
``Sec. 1232. Program authorized.
``Sec. 1233. State educational agency programs.
``Sec. 1234. Uses of funds.
``Sec. 1235. Program elements.
``Sec. 1236. Eligible participants.
``Sec. 1237. Applications.
``Sec. 1238. Award of subgrants.
``Sec. 1239. Evaluation.
``Sec. 1240. Indicators of program quality.
``Sec. 1241. Research.
``Sec. 1242. Construction.

        ``Subpart 4--Improving Literacy Through School Libraries

``Sec. 1251. Improving literacy through school libraries.

                ``PART C--EDUCATION OF MIGRATORY CHILDREN

``Sec. 1301. Program purpose.
``Sec. 1302. Program authorized.
``Sec. 1303. State allocations.
``Sec. 1304. State applications; services.
``Sec. 1305. Secretarial approval; peer review.
``Sec. 1306. Comprehensive needs assessment and service-delivery plan; 
          authorized activities.
``Sec. 1307. Bypass.
``Sec. 1308. Coordination of migrant education activities.
``Sec. 1309. Definitions.

 ``PART D--PREVENTION AND INTERVENTION PROGRAMS FOR CHILDREN AND YOUTH 
                WHO ARE NEGLECTED, DELINQUENT, OR AT-RISK

``Sec. 1401. Purpose and program authorization.
``Sec. 1402. Payments for programs under this part.

                   ``Subpart 1--State Agency Programs

``Sec. 1411. Eligibility.
``Sec. 1412. Allocation of funds.
``Sec. 1413. State reallocation of funds.
``Sec. 1414. State plan and State agency applications.
``Sec. 1415. Use of funds.
``Sec. 1416. Institution-wide projects.
``Sec. 1417. Three-year programs or projects.
``Sec. 1418. Transition services.
``Sec. 1419. Evaluation; technical assistance; annual model program.

                   ``Subpart 2--Local Agency Programs

``Sec. 1421. Purpose.
``Sec. 1422. Programs operated by local educational agencies.
``Sec. 1423. Local educational agency applications.
``Sec. 1424. Uses of funds.
``Sec. 1425. Program requirements for correctional facilities receiving 
          funds under this section.
``Sec. 1426. Accountability.

                     ``Subpart 3--General Provisions

``Sec. 1431. Program evaluations.
``Sec. 1432. Definitions.

                ``PART E--NATIONAL ASSESSMENT OF TITLE I

``Sec. 1501. Evaluations.
``Sec. 1502. Demonstrations of innovative practices.
``Sec. 1503. Assessment evaluation.
``Sec. 1504. Close up fellowship program.

                  ``PART F--COMPREHENSIVE SCHOOL REFORM

``Sec. 1601. Purpose.
``Sec. 1602. Program authorization.
``Sec. 1603. State applications.
``Sec. 1604. State use of funds.
``Sec. 1605. Local applications.
``Sec. 1606. Local use of funds.
``Sec. 1607. Evaluation and reports.
``Sec. 1608. Quality initiatives.

                  ``PART G--ADVANCED PLACEMENT PROGRAMS

``Sec. 1701. Short title.
``Sec. 1702. Purposes.
``Sec. 1703. Funding distribution rule.
``Sec. 1704. Advanced placement test fee program.
``Sec. 1705. Advanced placement incentive program grants.
``Sec. 1706. Supplement, not supplant.
``Sec. 1707. Definitions.
``Sec. 1708. Authorization of appropriations.

                   ``PART H--SCHOOL DROPOUT PREVENTION

``Sec. 1801. Short title.
``Sec. 1802. Purpose.
``Sec. 1803. Authorization of appropriations.

               ``Subpart 1--Coordinated National Strategy

``Sec. 1811. National activities.

            ``Subpart 2--School Dropout Prevention Initiative

``Sec. 1821. Definitions.
``Sec. 1822. Program authorized.
``Sec. 1823. Applications.
``Sec. 1824. State reservation.
``Sec. 1825. Strategies and capacity building.
``Sec. 1826. Selection of local educational agencies for subgrants.
``Sec. 1827. Community based organizations.
``Sec. 1828. Technical assistance.
``Sec. 1829. School dropout rate calculation.
``Sec. 1830. Reporting and accountability.

                      ``PART I--GENERAL PROVISIONS

``Sec. 1901. Federal regulations.
``Sec. 1902. Agreements and records.
``Sec. 1903. State administration.
``Sec. 1904. Local educational agency spending audits.
``Sec. 1905. Prohibition against Federal mandates, direction, or 
          control.
``Sec. 1906. Rule of construction on equalized spending.
``Sec. 1907. State report on dropout data.
``Sec. 1908. Regulations for sections 1111 and 1116.



 ``TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS 
                             AND PRINCIPALS



      ``PART A--TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND

``Sec. 2101. Purpose.
``Sec. 2102. Definitions.
``Sec. 2103. Authorizations of appropriations.

                      ``Subpart 1--Grants to States

``Sec. 2111. Allotments to States.
``Sec. 2112. State applications.
``Sec. 2113. State use of funds.

          ``Subpart 2--Subgrants to Local Educational Agencies

``Sec. 2121. Allocations to local educational agencies.
``Sec. 2122. Local applications and needs assessment.
``Sec. 2123. Local use of funds.

             ``Subpart 3--Subgrants to Eligible Partnerships

``Sec. 2131. Definitions.
``Sec. 2132. Subgrants.
``Sec. 2133. Applications.
``Sec. 2134. Use of funds.

                       ``Subpart 4--Accountability

``Sec. 2141. Technical assistance and accountability.

                    ``Subpart 5--National Activities

``Sec. 2151. National activities of demonstrated effectiveness.

             ``PART B--MATHEMATICS AND SCIENCE PARTNERSHIPS

``Sec. 2201. Purpose; definitions.
``Sec. 2202. Grants for mathematics and science partnerships.
``Sec. 2203. Authorization of appropriations.

                ``PART C--INNOVATION FOR TEACHER QUALITY

                  ``Subpart 1--Transitions to Teaching

                 ``CHAPTER A--TROOPS-TO-TEACHERS PROGRAM

``Sec. 2301. Definitions.
``Sec. 2302. Authorization of Troops-to-Teachers Program.
``Sec. 2303. Recruitment and selection of program participants.
``Sec. 2304. Participation agreement and financial assistance.
``Sec. 2305. Participation by States.
``Sec. 2306. Support of innovative preretirement teacher certification 
          programs.
``Sec. 2307. Reporting requirements.

               ``CHAPTER B--TRANSITION TO TEACHING PROGRAM

``Sec. 2311. Purposes.
``Sec. 2312. Definitions.
``Sec. 2313. Grant program.
``Sec. 2314. Evaluation and accountability for recruiting and retaining 
          teachers.

                     ``CHAPTER C--GENERAL PROVISIONS

``Sec. 2321. Authorization of appropriations.

                  ``Subpart 2--National Writing Project

``Sec. 2331. Purposes.
``Sec. 2332. National Writing Project.

                      ``Subpart 3--Civic Education

``Sec. 2341. Short title.
``Sec. 2342. Purpose.
``Sec. 2343. General authority.
``Sec. 2344. We the People program.
``Sec. 2345. Cooperative civic education and economic education exchange 
          programs.
``Sec. 2346. Authorization of appropriations.

          ``Subpart 4--Teaching of Traditional American History

``Sec. 2351. Establishment of program.
``Sec. 2352. Authorization of appropriations.

                ``Subpart 5--Teacher Liability Protection

``Sec. 2361. Short title.
``Sec. 2362. Purpose.
``Sec. 2363. Definitions.
``Sec. 2364. Applicability.
``Sec. 2365. Preemption and election of State nonapplicability.
``Sec. 2366. Limitation on liability for teachers.
``Sec. 2367. Allocation of responsibility for noneconomic loss.
``Sec. 2368. Effective date.

            ``PART D--ENHANCING EDUCATION THROUGH TECHNOLOGY

``Sec. 2401. Short title.
``Sec. 2402. Purposes and goals.
``Sec. 2403. Definitions.
``Sec. 2404. Authorization of appropriations.

             ``Subpart 1--State and Local Technology Grants

``Sec. 2411. Allotment and reallotment.
``Sec. 2412. Use of allotment by State.
``Sec. 2413. State applications.
``Sec. 2414. Local applications.
``Sec. 2415. State activities.
``Sec. 2416. Local activities.

               ``Subpart 2--National Technology Activities

``Sec. 2421. National activities.
 ``Sec. 2422. National education technology plan.

                 ``Subpart 3--Ready-to-Learn Television

``Sec. 2431. Ready-to-Learn Television.

  ``Subpart 4--Limitation on Availability of Certain Funds for Schools

``Sec. 2441. Internet safety.



  ``TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT STUDENTS



``Sec. 3001. Authorizations of appropriations; condition on 
          effectiveness of parts.

   ``PART A--ENGLISH LANGUAGE ACQUISITION, LANGUAGE ENHANCEMENT, AND 
                        ACADEMIC ACHIEVEMENT ACT

``Sec. 3101. Short title.
``Sec. 3102. Purposes.

 ``Subpart 1--Grants and Subgrants for English Language Acquisition and 
                          Language Enhancement

``Sec. 3111. Formula grants to States.
``Sec. 3112. Native American and Alaska Native children in school.
``Sec. 3113. State and specially qualified agency plans.
``Sec. 3114. Within-State allocations.
``Sec. 3115. Subgrants to eligible entities.
``Sec. 3116. Local plans.

             ``Subpart 2--Accountability and Administration

``Sec. 3121. Evaluations.
``Sec. 3122. Achievement objectives and accountability.
``Sec. 3123. Reporting requirements.
``Sec. 3124. Coordination with related programs.
``Sec. 3125. Rules of construction.
``Sec. 3126. Legal authority under State law.
``Sec. 3127. Civil rights.
 ``Sec. 3128. Programs for Native Americans and Puerto Rico.
``Sec. 3129. Prohibition.

                    ``Subpart 3--National Activities

``Sec. 3131. National professional development project.

                        ``Subpart 4--Definitions

``Sec. 3141. Eligible entity.

      ``PART B--IMPROVING LANGUAGE INSTRUCTION EDUCATIONAL PROGRAMS

``Sec. 3201. Short title.
``Sec. 3202. Purpose.
``Sec. 3203. Native American children in school.
``Sec. 3204. Residents of the territories and freely associated states.

            ``Subpart 1--Program Development and Enhancement

``Sec. 3211. Financial assistance for language instruction educational 
          programs.
``Sec. 3212. Program enhancement activities.
``Sec. 3213. Comprehensive school and systemwide improvement activities.
``Sec. 3214. Applications.
``Sec. 3215. Capacity building.
``Sec. 3216. Programs for Native Americans and Puerto Rico.
``Sec. 3217. Evaluations.
``Sec. 3218. Construction.

          ``Subpart 2--Research, Evaluation, and Dissemination

``Sec. 3221. Authority.
``Sec. 3222. Research.
``Sec. 3223. Academic excellence awards.
``Sec. 3224. State grant program.
``Sec. 3225. Instruction materials development.

                  ``Subpart 3--Professional Development

``Sec. 3231. Professional development grants.

           ``Subpart 4--Emergency Immigrant Education Program

``Sec. 3241. Purpose.
``Sec. 3242. State administrative costs.
``Sec. 3243. Withholding.
``Sec. 3244. State allotments.
``Sec. 3245. State applications.
``Sec. 3246. Administrative provisions.
``Sec. 3247. Uses of funds.
``Sec. 3248. Reports.

                       ``Subpart 5--Administration

``Sec. 3251. Release time.
``Sec. 3252. Notification.
``Sec. 3253. Coordination and reporting requirements.

                      ``PART C--GENERAL PROVISIONS

``Sec. 3301. Definitions.
``Sec. 3302. Parental notification.
``Sec. 3303. National Clearinghouse.
``Sec. 3304. Regulations.



                    ``TITLE IV--21ST CENTURY SCHOOLS



          ``PART A--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

``Sec. 4001. Short title.
``Sec. 4002. Purpose.
``Sec. 4003. Authorization of appropriations.

                        ``Subpart 1--State Grants

``Sec. 4111. Reservations and allotments.
``Sec. 4112. Reservation of State funds for safe and drug-free schools.
``Sec. 4113. State application.
``Sec. 4114. Local educational agency program.
``Sec. 4115. Authorized activities.
``Sec. 4116. Reporting.
``Sec. 4117. Programs for Native Hawaiians.

                     ``Subpart 2--National Programs

``Sec. 4121. Federal activities.
``Sec. 4122. Impact evaluation.
``Sec. 4123. Hate crime prevention.
``Sec. 4124. Safe and Drug-Free Schools and Communities Advisory 
          Committee.
``Sec. 4125. National coordinator program.
``Sec. 4126. Community service grant program.
``Sec. 4127. School Security Technology and Resource Center.
``Sec. 4128. National Center for School and Youth Safety.
``Sec. 4129. Grants to reduce alcohol abuse.
``Sec. 4130. Mentoring programs.

                       ``Subpart 3--Gun Possession

``Sec. 4141. Gun-free requirements.

                     ``Subpart 4--General Provisions

``Sec. 4151. Definitions.
``Sec. 4152. Message and materials.
``Sec. 4153. Parental consent.
``Sec. 4154. Prohibited uses of funds.
``Sec. 4155. Transfer of school disciplinary records.

            ``PART B--21ST CENTURY COMMUNITY LEARNING CENTERS

``Sec. 4201. Purpose; definitions.
``Sec. 4202. Allotments to States.
``Sec. 4203. State application.
``Sec. 4204. Local competitive grant program.
``Sec. 4205. Local activities.
``Sec. 4206. Authorization of appropriations.

                  ``PART C--ENVIRONMENTAL TOBACCO SMOKE

``Sec. 4301. Short title.
``Sec. 4302. Definitions.
``Sec. 4303. Nonsmoking policy for children's services.
``Sec. 4304. Preemption.



  ``TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS



                      ``PART A--INNOVATIVE PROGRAMS

``Sec. 5101. Purposes, State and local responsibility.

                  ``Subpart 1--State and Local Programs

``Sec. 5111. Allotment to States.
``Sec. 5112. Allocation to local educational agencies.

                       ``Subpart 2--State Programs

``Sec. 5121. State uses of funds.
``Sec. 5122. State applications.

            ``Subpart 3--Local Innovative Education Programs

``Sec. 5131. Local uses of funds.
``Sec. 5132. Administrative authority.
``Sec. 5133. Local applications.

                     ``Subpart 4--General Provisions

``Sec. 5141. Maintenance of effort.
``Sec. 5142. Participation of children enrolled in private schools.
``Sec. 5143. Federal administration.
``Sec. 5144. Supplement, not supplant.
``Sec. 5145. Definitions.
``Sec. 5146. Authorization of appropriations.

                    ``PART B--PUBLIC CHARTER SCHOOLS

                  ``Subpart 1--Charter School Programs

``Sec. 5201. Purpose.
``Sec. 5202. Program authorized.
``Sec. 5203. Applications.
``Sec. 5204. Administration.
``Sec. 5205. National activities.
``Sec. 5206. Federal formula allocation during first year and for 
          successive enrollment expansions.
``Sec. 5207. Solicitation of input from charter school operators.
``Sec. 5208. Records transfer.
``Sec. 5209. Paperwork reduction.
``Sec. 5210. Definitions.
``Sec. 5211. Authorization of appropriations.

  ``Subpart 2--Credit Enhancement Initiatives To Assist Charter School 
           Facility Acquisition, Construction, and Renovation

``Sec. 5221. Purpose.
``Sec. 5222. Grants to eligible entities.
``Sec. 5223. Applications.
``Sec. 5224. Charter school objectives.
``Sec. 5225. Reserve account.
``Sec. 5226. Limitation on administrative costs.
``Sec. 5227. Audits and reports.
``Sec. 5228. No full faith and credit for grantee obligations.
``Sec. 5229. Recovery of funds.
``Sec. 5230. Definitions.
``Sec. 5231. Authorization of appropriations.

          ``Subpart 3--Voluntary Public School Choice Programs

``Sec. 5241. Grants.
``Sec. 5242. Uses of funds.
``Sec. 5243. Applications.
``Sec. 5244. Priorities.
``Sec. 5245. Requirements and voluntary participation.
``Sec. 5246. Evaluations.
``Sec. 5247. Definitions.
``Sec. 5248. Authorization of appropriations.

                   ``PART C--MAGNET SCHOOLS ASSISTANCE

``Sec. 5301. Findings and purpose.
``Sec. 5302. Definition.
``Sec. 5303. Program authorized.
``Sec. 5304. Eligibility.
``Sec. 5305. Applications and requirements.
``Sec. 5306. Priority.
``Sec. 5307. Use of funds.
``Sec. 5308. Prohibition.
``Sec. 5309. Limitations.
``Sec. 5310. Evaluations.
``Sec. 5311. Authorization of appropriations; reservation.

             ``PART D--FUND FOR THE IMPROVEMENT OF EDUCATION

``Sec. 5401. Authorization of appropriations.


           ``Subpart 1--Fund for the Improvement of Education


``Sec. 5411. Programs authorized.
``Sec. 5412. Applications.
``Sec. 5413. Program requirements.
``Sec. 5414. Studies of national significance.

    ``Subpart 2--Elementary and Secondary School Counseling Programs

``Sec. 5421. Elementary and secondary school counseling programs.

            ``Subpart 3--Partnerships in Character Education

``Sec. 5431. Partnerships in Character Education program.

                ``Subpart 4--Smaller Learning Communities

``Sec. 5441. Smaller Learning Communities.

   ``Subpart 5--Reading Is Fundamental--Inexpensive Book Distribution 
                                 Program

``Sec. 5451. Inexpensive book distribution program for reading 
          motivation.

                ``Subpart 6--Gifted and Talented Students

``Sec. 5461. Short title.
``Sec. 5462. Purpose.
``Sec. 5463. Rule of construction.
``Sec. 5464. Authorized programs.
``Sec. 5465. Program priorities.
``Sec. 5466. General provisions.

                    ``Subpart 7--Star Schools Program

``Sec. 5471. Short title.
``Sec. 5472. Purposes.
``Sec. 5473. Grant program authorized.
``Sec. 5474. Applications.
``Sec. 5475. Other grant assistance.
``Sec. 5476. Administrative provisions.
``Sec. 5477. Definitions.

                       ``Subpart 8--Ready to Teach

``Sec. 5481. Grants.
``Sec. 5482. Application required.
``Sec. 5483. Reports and evaluation.
``Sec. 5484. Digital educational programming grants.
``Sec. 5485. Administrative costs.

            ``Subpart 9--Foreign Language Assistance Program

``Sec. 5491. Short title.
``Sec. 5492. Program authorized.
``Sec. 5493. Applications.
``Sec. 5494. Elementary school foreign language incentive program.

                    ``Subpart 10--Physical Education

``Sec. 5501. Short title.
``Sec. 5502. Purpose.
``Sec. 5503. Program authorized.
``Sec. 5504. Applications.
``Sec. 5505. Requirements.
``Sec. 5506. Administrative provisions.
``Sec. 5507. Supplement, not supplant.

               ``Subpart 11--Community Technology Centers

``Sec. 5511. Purpose and program authorization.
``Sec. 5512. Eligibility and application requirements.
``Sec. 5513. Uses of funds.

   ``Subpart 12--Educational, Cultural, Apprenticeship, and Exchange 
  Programs for Alaska Natives, Native Hawaiians, and Their Historical 
              Whaling and Trading Partners in Massachusetts

``Sec. 5521. Short title.
``Sec. 5522. Findings and purposes.
``Sec. 5523. Program authorization.
``Sec. 5524. Administrative provisions.
``Sec. 5525. Availability of funds.
``Sec. 5526. Definitions.

             ``Subpart 13--Excellence in Economic Education

``Sec. 5531. Short title.
``Sec. 5532. Purpose and goals.
``Sec. 5533. Grant program authorized.
``Sec. 5534. Applications.
``Sec. 5535. Requirements.
``Sec. 5536. Administrative provisions.
``Sec. 5537. Supplement, not supplant.

      ``Subpart 14--Grants to Improve the Mental Health of Children

``Sec. 5541. Grants for the integration of schools and mental health 
          systems.
``Sec. 5542. Promotion of school readiness through early childhood 
          emotional and social development.

                     ``Subpart 15--Arts in Education

``Sec. 5551. Assistance for arts education.

 ``Subpart 16--Parental Assistance and Local Family Information Centers

``Sec. 5561. Purposes.
``Sec. 5562. Grants authorized.
``Sec. 5563. Applications.
``Sec. 5564. Uses of funds.
``Sec. 5565. Administrative provisions.
``Sec. 5566. Local family information centers.

               ``Subpart 17--Combatting Domestic Violence

``Sec. 5571. Grants to combat the impact of experiencing or witnessing 
          domestic violence on elementary and secondary school children.

             ``Subpart 18--Healthy, High-Performance Schools

``Sec. 5581. Grant program authorized.
``Sec. 5582. State uses of funds.
``Sec. 5583. Local uses of funds.
``Sec. 5584. Report to Congress.
``Sec. 5585. Limitations.
``Sec. 5586. Healthy, high-performance school building defined.

    ``Subpart 19--Grants for Capital Expenses of Providing Equitable 
                  Services for Private School Students

``Sec. 5591. Grant program authorized.
``Sec. 5592. Uses of funds.
``Sec. 5593. Allotments to States.
``Sec. 5594. Subgrants to local educational agencies.
``Sec. 5595. Capital expenses defined.
``Sec. 5596. mination.

   ``Subpart 20--Additional Assistance for Certain Local Educational 
            Agencies Impacted by Federal Property Acquisition

``Sec. 5601. Reservation.
``Sec. 5602. Eligibility.
``Sec. 5603. Maximum amount.

              ``Subpart 21--Women's Educational Equity Act

``Sec. 5611. Short title and findings.
``Sec. 5612. Statement of purposes.
``Sec. 5613. Programs authorized.
``Sec. 5614. Applications.
``Sec. 5615. Criteria and priorities.
``Sec. 5616. Report.
``Sec. 5617. Administration.
``Sec. 5618. Amount.



               ``TITLE VI--FLEXIBILITY AND ACCOUNTABILITY



                ``PART A--IMPROVING ACADEMIC ACHIEVEMENT

                       ``Subpart 1--Accountability

``Sec. 6111. Grants for State assessments and related activities.
``Sec. 6112. Grants for enhanced assessment instruments.
``Sec. 6113. Funding.

  ``Subpart 2--Funding Transferability for State and Local Educational 
                                Agencies

``Sec. 6121. Short title.
``Sec. 6122. Purpose.
``Sec. 6123. Transferability of funds.

         ``Subpart 3--State and Local Flexibility Demonstration

``Sec. 6131. Short title.
``Sec. 6132. Purpose.
``Sec. 6133. General provision.

                ``CHAPTER A--STATE FLEXIBILITY AUTHORITY

``Sec. 6141. State flexibility.
``Sec. 6142. Consolidation and use of funds.
``Sec. 6143. Performance review and penalties.
``Sec. 6144. Renewal of grant of flexibility authority.

              ``CHAPTER B--LOCAL FLEXIBILITY DEMONSTRATION

``Sec. 6151. Local flexibility demonstration agreements.
``Sec. 6152. Consolidation and use of funds.
``Sec. 6153. Limitations on administrative expenditures.
``Sec. 6154. Performance review and penalties.
``Sec. 6155. Renewal of local flexibility demonstration agreement.
``Sec. 6156. Reports.

     ``Subpart 4--State Accountability for Adequate Yearly Progress

``Sec. 6161. Accountability for adequate yearly progress.
``Sec. 6162. Peer review.
``Sec. 6163. Technical assistance.
``Sec. 6164. Report to Congress.

                  ``PART B--RURAL EDUCATION INITIATIVE

``Sec. 6201. Short title.
``Sec. 6202. Purpose.

          ``Subpart 1--Small, Rural School Achievement Program

``Sec. 6211. Use of applicable funding.
``Sec. 6212. Grant program authorized.
``Sec. 6213. Accountability.

            ``Subpart 2--Rural and Low-Income School Program

``Sec. 6221. Program authorized.
``Sec. 6222. Uses of funds.
``Sec. 6223. Applications.
``Sec. 6224. Accountability.

                     ``Subpart 3--General Provisions

``Sec. 6231. Annual average daily attendance determination.
``Sec. 6232. Supplement, not supplant.
``Sec. 6233. Rule of construction.
``Sec. 6234. Authorization of appropriations.

                      ``PART C--GENERAL PROVISIONS

``Sec. 6301. Prohibition against Federal mandates, direction, or 
          control.
``Sec. 6302. Rule of construction on equalized spending.



    ``TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION



                       ``PART A--INDIAN EDUCATION

``Sec. 7101. Statement of policy.
``Sec. 7102. Purpose.

        ``Subpart 1--Formula Grants to Local Educational Agencies

``Sec. 7111. Purpose.
``Sec. 7112. Grants to local educational agencies and tribes.
``Sec. 7113. Amount of grants.
``Sec. 7114. Applications.
``Sec. 7115. Authorized services and activities.
``Sec. 7116. Integration of services authorized.
``Sec. 7117. Student eligibility forms.
``Sec. 7118. Payments.
``Sec. 7119. State educational agency review.

   ``Subpart 2--Special Programs and Projects To Improve Educational 
                    Opportunities for Indian Children

``Sec. 7121. Improvement of educational opportunities for Indian 
          children.
``Sec. 7122. Professional development for teachers and education 
          professionals.

                    ``Subpart 3--National Activities

``Sec. 7131. National research activities.
``Sec. 7132. In-service training for teachers of Indian children.
``Sec. 7133. Fellowships for Indian students.
``Sec. 7134. Gifted and talented Indian students.
``Sec. 7135. Grants to tribes for education administrative planning and 
          development.
``Sec. 7136. Improvement of educational opportunities for adult Indians.

                   ``Subpart 4--Federal Administration

``Sec. 7141. National Advisory Council on Indian Education.
``Sec. 7142. Peer review.
``Sec. 7143. Preference for Indian applicants.
``Sec. 7144. Minimum grant criteria.

       ``Subpart 5--Definitions; Authorizations of Appropriations

``Sec. 7151. Definitions.
``Sec. 7152. Authorizations of appropriations.

                   ``PART B--NATIVE HAWAIIAN EDUCATION

``Sec. 7201. Short title.
``Sec. 7202. Findings.
``Sec. 7203. Purposes.
``Sec. 7204. Native Hawaiian Education Council and island councils.
``Sec. 7205. Program authorized.
``Sec. 7206. Administrative provisions.
``Sec. 7207. Definitions.

                    ``PART C--ALASKA NATIVE EDUCATION

``Sec. 7301. Short title.
``Sec. 7302. Findings.
``Sec. 7303. Purposes.
``Sec. 7304. Program authorized.
``Sec. 7305. Administrative provisions.
``Sec. 7306. Definitions.



                        ``TITLE VIII--IMPACT AID



``Sec. 8001. Purpose.
``Sec. 8002. Payments relating to Federal acquisition of real property.
``Sec. 8003. Payments for eligible federally connected children.
``Sec. 8004. Policies and procedures relating to children residing on 
          Indian lands.
``Sec. 8005. Application for payments under sections 8002 and 8003.
``Sec. 8007. Construction.
``Sec. 8008. Facilities.
``Sec. 8009. State consideration of payments in providing State aid.
``Sec. 8010. Federal administration.
``Sec. 8011. Administrative hearings and judicial review.
``Sec. 8012. Forgiveness of overpayments.
``Sec. 8013. Definitions.
``Sec. 8014. Authorization of appropriations.



                     ``TITLE IX--GENERAL PROVISIONS



                          ``PART A--DEFINITIONS

``Sec. 9101. Definitions.
``Sec. 9102. Applicability of title.
``Sec. 9103. Applicability to Bureau of Indian Affairs operated schools.

   ``PART B--FLEXIBILITY IN THE USE OF ADMINISTRATIVE AND OTHER FUNDS

``Sec. 9201. Consolidation of State administrative funds for elementary 
          and secondary education programs.
``Sec. 9202. Single local educational agency States.
``Sec. 9203. Consolidation of funds for local administration.
``Sec. 9204. Consolidated set-aside for Department of the Interior 
          funds.

 ``PART C--COORDINATION OF PROGRAMS; CONSOLIDATED STATE AND LOCAL PLANS 
                            AND APPLICATIONS

``Sec. 9301. Purpose.
``Sec. 9302. Optional consolidated State plans or applications.
``Sec. 9303. Consolidated reporting.
``Sec. 9304. General applicability of State educational agency 
          assurances.
``Sec. 9305. Consolidated local plans or applications.
``Sec. 9306. Other general assurances.

                            ``PART D--WAIVERS

``Sec. 9401. Waivers of statutory and regulatory requirements.

                      ``PART E--UNIFORM PROVISIONS

                      ``Subpart 1--Private Schools

``Sec. 9501. Participation by private school children and teachers.
``Sec. 9502. Standards for by-pass.
``Sec. 9503. Complaint process for participation of private school 
          children.
``Sec. 9504. By-pass determination process.
``Sec. 9505. Prohibition against funds for religious worship or 
          instruction.
``Sec. 9506. Private, religious, and home schools.

                      ``Subpart 2--Other Provisions

``Sec. 9521. Maintenance of effort.
``Sec. 9522. Prohibition regarding State aid.
``Sec. 9523. Privacy of assessment results.
``Sec. 9524. School prayer.
``Sec. 9525. Equal access to public school facilities.
``Sec. 9526. General prohibitions.
``Sec. 9527. Prohibitions on Federal Government and use of Federal 
          funds.
``Sec. 9528. Armed forces recruiter access to students and student 
          recruiting information.
``Sec. 9529. Prohibition on federally sponsored testing.
``Sec. 9530. Limitations on national testing or certification for 
          teachers.
``Sec. 9531. Prohibition on nationwide database.
``Sec. 9532. Unsafe school choice option.
``Sec. 9533. Prohibition on discrimination.
``Sec. 9534. Civil rights.
``Sec. 9535. Rulemaking.
``Sec. 9536. Severability.

                          ``PART F--EVALUATIONS

``Sec. 9601. Evaluations.''.

    TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

SEC. 101. IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED.

    Title I of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6301 et seq.) is amended to read as follows:

   ``TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

``SEC. 1001. STATEMENT OF PURPOSE.

    ``The purpose of this title is to ensure that all children 
have a fair, equal, and significant opportunity to obtain a 
high-quality education and reach, at a minimum, proficiency on 
challenging State academic achievement standards and state 
academic assessments. This purpose can be accomplished by--
            ``(1) ensuring that high-quality academic 
        assessments, accountability systems, teacher 
        preparation and training, curriculum, and instructional 
        materials are aligned with challenging State academic 
        standards so that students, teachers, parents, and 
        administrators can measure progress against common 
        expectations for student academic achievement;
            ``(2) meeting the educational needs of low-
        achieving children in our Nation's highest-poverty 
        schools, limited English proficient children, migratory 
        children, children with disabilities, Indian children, 
        neglected or delinquent children, and young children in 
        need of reading assistance;
            ``(3) closing the achievement gap between high- and 
        low-performing children, especially the achievement 
        gaps between minority and nonminority students, and 
        between disadvantaged children and their more 
        advantaged peers;
            ``(4) holding schools, local educational agencies, 
        and States accountable for improving the academic 
        achievement of all students, and identifying and 
        turning around low-performing schools that have failed 
        to provide a high-quality education to their students, 
        while providing alternatives to students in such 
        schools to enable the students to receive a high-
        quality education;
            ``(5) distributing and targeting resources 
        sufficiently to make a difference to local educational 
        agencies and schools where needs are greatest;
            ``(6) improving and strengthening accountability, 
        teaching, and learning by using State assessment 
        systems designed to ensure that students are meeting 
        challenging State academic achievement and content 
        standards and increasing achievement overall, but 
        especially for the disadvantaged;
            ``(7) providing greater decisionmaking authority 
        and flexibility to schools and teachers in exchange for 
        greater responsibility for student performance;
            ``(8) providing children an enriched and 
        accelerated educational program, including the use of 
        schoolwide programs or additional services that 
        increase the amount and quality of instructional time;
            ``(9) promoting schoolwide reform and ensuring the 
        access of children to effective, scientifically based 
        instructional strategies and challenging academic 
        content;
            ``(10) significantly elevating the quality of 
        instruction by providing staff in participating schools 
        with substantial opportunities for professional 
        development;
            ``(11) coordinating services under all parts of 
        this title with each other, with other educational 
        services, and, to the extent feasible, with other 
        agencies providing services to youth, children, and 
        families; and
            ``(12) affording parents substantial and meaningful 
        opportunities to participate in the education of their 
        children.

``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Local Educational Agency Grants.--For the purpose of 
carrying out part A, there are authorized to be appropriated--
            ``(1) $13,500,000,000 for fiscal year 2002;
            ``(2) $16,000,000,000 for fiscal year 2003;
            ``(3) $18,500,000,000 for fiscal year 2004;
            ``(4) $20,500,000,000 for fiscal year 2005;
            ``(5) $22,750,000,000 for fiscal year 2006; and
            ``(6) $25,000,000,000 for fiscal year 2007.
    ``(b) Reading First.--
            ``(1) Reading first.--For the purpose of carrying 
        out subpart 1 of part B, there are authorized to be 
        appropriated $900,000,000 for fiscal year 2002 and such 
        sums as may be necessary for each of the 5 succeeding 
        fiscal years.
            ``(2) Early reading first.--For the purpose of 
        carrying out subpart 2 of part B, there are authorized 
        to be appropriated $75,000,000 for fiscal year 2002 and 
        such sums as may be necessary for each of the 5 
        succeeding fiscal years.
            ``(3) Even start.--For the purpose of carrying out 
        subpart 3 of part B, there are authorized to be 
        appropriated $260,000,000 for fiscal year 2002 and such 
        sums as may be necessary for each of the 5 succeeding 
        fiscal years.
            ``(4) Improving literacy through school 
        libraries.--For the purpose of carrying out subpart 4 
        of part B, there are authorized to be appropriated 
        $250,000,000 for fiscal year 2002 and such sums as may 
        be necessary for each of the 5 succeeding fiscal years.
    ``(c) Education of Migratory Children.--For the purpose of 
carrying out part C, there are authorized to be appropriated 
$410,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 5 succeeding fiscal years.
    ``(d) Prevention and Intervention Programs for Youth Who 
Are Neglected, Delinquent, or at Risk.--For the purpose of 
carrying out part D, there are authorized to be appropriated 
$50,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 5 succeeding fiscal years.
    ``(e) Federal Activities.--
            ``(1) Sections 1501 and 1502.--For the purpose of 
        carrying out sections 1501 and 1502, there are 
        authorized to be appropriated such sums as may be 
        necessary for fiscal year 2002 and each of the 5 
        succeeding fiscal years.
            ``(2) Section 1504.--
                    ``(A) In general.--For the purpose of 
                carrying out section 1504, there are authorized 
                to be appropriated such sums as may be 
                necessary for fiscal year 2002 and for each of 
                the 5 succeeding fiscal years.
                    ``(B) Special rule.--Of the funds 
                appropriated pursuant to subparagraph (A), not 
                more than 30 percent may be used for teachers 
                associated with students participating in the 
                programs described in subsections (a)(1), 
                (b)(1), and (c)(1).
    ``(f) Comprehensive School Reform.--For the purpose of 
carrying out part F, there are authorized to be appropriated 
such sums as may be necessary for fiscal year 2002 and each of 
the 5 succeeding fiscal years.
    ``(g) Advanced Placement.--For the purposes of carrying out 
part G, there are authorized to be appropriated such sums for 
fiscal year 2002 and each 5 succeeding fiscal year.
    ``(h) School Dropout Prevention.--For the purpose of 
carrying out part H, there are authorized to be appropriated 
$125,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 5 succeeding fiscal years, of which--
            ``(1) up to 10 percent shall be available to carry 
        out subpart 1 of part H for each fiscal year; and
            ``(2) the remainder shall be available to carry out 
        subpart 2 of part H for each fiscal year.
    ``(i) School Improvement.--For the purpose of carrying out 
section 1003(g), there are authorized to be appropriated 
$500,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 5 succeeding fiscal years.

``SEC. 1003. SCHOOL IMPROVEMENT.

    ``(a) State Reservations.--Each State shall reserve 2 
percent of the amount the State receives under subpart 2 of 
part A for fiscal years 2002 and 2003, and 4 percent of the 
amount received under such subpart for fiscal years 2004 
through 2007, to carry out subsection (b) and to carry out the 
State's responsibilities under sections 1116 and 1117, 
including carrying out the State educational agency's statewide 
system of technical assistance and support for local 
educational agencies.
    ``(b) Uses.--Of the amount reserved under subsection (a) 
for any fiscal year, the State educational agency--
            ``(1) shall allocate not less than 95 percent of 
        that amount directly to local educational agencies for 
        schools identified for school improvement, corrective 
        action, and restructuring, for activities under section 
        1116(b); or
            ``(2) may, with the approval of the local 
        educational agency, directly provide for these 
        activities or arrange for their provision through other 
        entities such as school support teams or educational 
        service agencies.
    ``(c) Priority.--The State educational agency, in 
allocating funds to local educational agencies under this 
section, shall give priority to local educational agencies 
that--
            ``(1) serve the lowest-achieving schools;
            ``(2) demonstrate the greatest need for such funds; 
        and
            ``(3) demonstrate the strongest commitment to 
        ensuring that such funds are used to enable the lowest-
        achieving schools to meet the progress goals in school 
        improvement plans under section 1116 (b)(3)(A)(v).
    ``(d) Unused Funds.--If, after consultation with local 
educational agencies in the State, the State educational agency 
determines that the amount of funds reserved to carry out 
subsection (b) is greater than the amount needed to provide the 
assistance described in that subsection, the State educational 
agency shall allocate the excess amount to local educational 
agencies in accordance with--
            ``(1) the relative allocations the State 
        educational agency made to those agencies for that 
        fiscal year under subpart 2 of part A; or
            ``(2) section 1126(c).
    ``(e) Special Rule.--Notwithstanding any other provision of 
this section, the amount of funds reserved by the State 
educational agency under subsection (a) in any fiscal year 
shall not decrease the amount of funds each local educational 
agency receives under subpart 2 below the amount received by 
such local educational agency under such subpart for the 
preceding fiscal year.
    ``(f) Reporting.--The State educational agency shall make 
publicly available a list of those schools that have received 
funds or services pursuant to subsection (b) and the percentage 
of students from each school from families with incomes below 
the poverty line.
    ``(g) Assistance for Local School Improvement.--
            ``(1) Program authorized.--The Secretary shall 
        award grants to States to enable the States to provide 
        subgrants to local educational agencies for the purpose 
        of providing assistance for school improvement 
        consistent with section 1116.
            ``(2) State allotments.--Such grants shall be 
        allotted among States, the Bureau of Indian Affairs, 
        and the outlying areas, in proportion to the funds 
        received by the States, the Bureau of Indian Affairs, 
        and the outlying areas, respectively, for the fiscal 
        year under parts A, C, and D of this title. The 
        Secretary shall expeditiously allot a portion of such 
        funds to States for the purpose of assisting local 
        educational agencies and schools that were in school 
        improvement status on the date preceding the date of 
        enactment of the No Child Left Behind Act of 2001.
            ``(3) Reallocations.--If a State does not receive 
        funds under this subsection, the Secretary shall 
        reallocate such funds to other States in the same 
        proportion funds are allocated under paragraph (2).
            ``(4) State applications.--Each State educational 
        agency that desires to receive funds under this 
        subsection shall submit an application to the Secretary 
        at such time, and containing such information, as the 
        Secretary shall reasonably require, except that such 
        requirement shall be waived if a State educational 
        agency submitted such information as part of its State 
        plan under this part. Each State application shall 
        describe how the State educational agency will allocate 
        such funds in order to assist the State educational 
        agency and local educational agencies in complying with 
        school improvement, corrective action, and 
        restructuring requirements of section 1116.
            ``(5) Local educational agency grants.--A grant to 
        a local educational agency under this subsection shall 
        be--
                    ``(A) of sufficient size and scope to 
                support the activities required under sections 
                1116 and 1117, but not less than $50,000 and 
                not more than $500,000 for each participating 
                school;
                    ``(B) integrated with other funds awarded 
                by the State under this Act; and
                    ``(C) renewable for 2 additional 1-year 
                periods if schools are meeting the goals in 
                their school improvement plans developed under 
                section 1116.
            ``(6) Priority.--The State, in awarding such 
        grants, shall give priority to local educational 
        agencies with the lowest-achieving schools that 
        demonstrate--
                    ``(A) the greatest need for such funds; and
                    ``(B) the strongest commitment to ensuring 
                that such funds are used to provide adequate 
                resources to enable the lowest-achieving 
                schools to meet the goals under school and 
                local educational agency improvement, 
                corrective action, and restructuring plans 
                under section 1116.
            ``(7) Allocation.--A State educational agency that 
        receives a grant under this subsection shall allocate 
        at least 95 percent of the grant funds directly to 
        local educational agencies for schools identified for 
        school improvement, corrective action, or restructuring 
        to carry out activities under section 1116(b), or may, 
        with the approval of the local educational agency, 
        directly provide for these activities or arrange for 
        their provision through other entities such as school 
        support teams or educational service agencies.
            ``(8) Administrative costs.--A State educational 
        agency that receives a grant award under this 
        subsection may reserve not more than 5 percent of such 
        grant funds for administration, evaluation, and 
        technical assistance expenses.
            ``(9) Local awards.--Each local educational agency 
        that applies for assistance under this subsection shall 
        describe how it will provide the lowest-achieving 
        schools the resources necessary to meet goals under 
        school and local educational agency improvement, 
        corrective action, and restructuring plans under 
        section 1116.

``SEC. 1004. STATE ADMINISTRATION.

    ``(a) In General.--Except as provided in subsection (b), to 
carry out administrative duties assigned under parts A, C, and 
D of this title, each State may reserve the greater of--
            ``(1) 1 percent of the amounts received under such 
        parts; or
            ``(2) $400,000 ($50,000 in the case of each 
        outlying area).
    ``(b) Exception.--If the sum of the amounts appropriated 
for parts A, C, and D of this title is equal to or greater than 
$14,000,000,000, then the reservation described in subsection 
(a)(1) shall not exceed 1 percent of the amount the State would 
receive, if $14,000,000,000 were allocated among the States for 
parts A, C, and D of this title.

   ``PART A--IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL 
                                AGENCIES

                ``Subpart 1--Basic Program Requirements

``SEC. 1111. STATE PLANS.

    ``(a) Plans Required.--
            ``(1) In general.--Any State desiring to receive a 
        grant under this part shall submit to the Secretary a 
        plan, developed in consultation with local educational 
        agencies, teachers, principals, pupil services 
        personnel, administrators (including administrators of 
        programs described in other parts of this title), other 
        staff, and parents, that satisfies the requirements of 
        this section and that is coordinated with other 
        programs under this Act, the Individuals with 
        Disabilities Education Act, the Carl D. Perkins 
        Vocational and Technical Education Act of 1998, the 
        Head Start Act, the Adult Education and Family Literacy 
        Act, and the McKinney-Vento Homeless Assistance Act.
            ``(2) Consolidated plan.--A State plan submitted 
        under paragraph (1) may be submitted as part of a 
        consolidated plan under section 9302.
    ``(b) Academic Standards, Academic Assessments, and 
Accountability.--
            ``(1) Challenging academic standards.--
                    ``(A) In general.--Each State plan shall 
                demonstrate that the State has adopted 
                challenging academic content standards and 
                challenging student academic achievement 
                standards that will be used by the State, its 
                local educational agencies, and its schools to 
                carry out this part, except that a State shall 
                not be required to submit such standards to the 
                Secretary.
                    ``(B) Same standards.--The academic 
                standards required by subparagraph (A) shall be 
                the same academic standards that the State 
                applies to all schools and children in the 
                State.
                    ``(C) Subjects.--The State shall have such 
                academic standards for all public elementary 
                school and secondary school children, including 
                children served under this part, in subjects 
                determined by the State, but including at least 
                mathematics, reading or language arts, and 
                (beginning in the 2005-2006 school year) 
                science, which shall include the same 
                knowledge, skills, and levels of achievement 
                expected of all children.
                    ``(D) Challenging academic standards.--
                Standards under this paragraph shall include--
                            ``(i) challenging academic content 
                        standards in academic subjects that--
                                    ``(I) specify what children 
                                are expected to know and be 
                                able to do;
                                    ``(II) contain coherent and 
                                rigorous content; and
                                    ``(III) encourage the 
                                teaching of advanced skills; 
                                and
                            ``(ii) challenging student academic 
                        achievement standards that--
                                    ``(I) are aligned with the 
                                State's academic content 
                                standards;
                                    ``(II) describe 2 levels of 
                                high achievement (proficient 
                                and advanced) that determine 
                                how well children are mastering 
                                the material in the State 
                                academic content standards; and
                                    ``(III) describe a third 
                                level of achievement (basic) to 
                                provide complete information 
                                about the progress of the 
                                lower-achieving children toward 
                                mastering the proficient and 
                                advanced levels of achievement.
                    ``(E) Information.--For the subjects in 
                which students will be served under this part, 
                but for which a State is not required by 
                subparagraphs (A), (B), and (C) to develop, and 
                has not otherwise developed, such academic 
                standards, the State plan shall describe a 
                strategy for ensuring that students are taught 
                the same knowledge and skills in such subjects 
                and held to the same expectations as are all 
                children.
                    ``(F) Existing standards.--Nothing in this 
                part shall prohibit a State from revising, 
                consistent with this section, any standard 
                adopted under this part before or after the 
                date of enactment of the No Child Left Behind 
                Act of 2001.
            ``(2) Accountability.--
                    ``(A) In general.--Each State plan shall 
                demonstrate that the State has developed and is 
                implementing a single, statewide State 
                accountability system that will be effective in 
                ensuring that all local educational agencies, 
                public elementary schools, and public secondary 
                schools make adequate yearly progress as 
                defined under this paragraph. Each State 
                accountability system shall--
                            ``(i) be based on the academic 
                        standards and academic assessments 
                        adopted under paragraphs (1) and (3), 
                        and other academic indicators 
                        consistent with subparagraph (C)(vi) 
                        and (vii), and shall take into account 
                        the achievement of all public 
                        elementary school and secondary school 
                        students;
                            ``(ii) be the same accountability 
                        system the State uses for all public 
                        elementary schools and secondary 
                        schools or all local educational 
                        agencies in the State, except that 
                        public elementary schools, secondary 
                        schools, and local educational agencies 
                        not participating under this part are 
                        not subject to the requirements of 
                        section 1116; and
                            ``(iii) include sanctions and 
                        rewards, such as bonuses and 
                        recognition, the State will use to hold 
                        local educational agencies and public 
                        elementary schools and secondary 
                        schools accountable for student 
                        achievement and for ensuring that they 
                        make adequate yearly progress in 
                        accordance with the State's definition 
                        under subparagraphs (B) and (C).
                    ``(B) Adequate yearly progress.--Each State 
                plan shall demonstrate, based on academic 
                assessments described in paragraph (3), and in 
                accordance with this paragraph, what 
                constitutes adequate yearly progress of the 
                State, and of all public elementary schools, 
                secondary schools, and local educational 
                agencies in the State, toward enabling all 
                public elementary school and secondary school 
                students to meet the State's student academic 
                achievement standards, while working toward the 
                goal of narrowing the achievement gaps in the 
                State, local educational agencies, and schools.
                    ``(C) Definition.--`Adequate yearly 
                progress' shall be defined by the State in a 
                manner that--
                            ``(i) applies the same high 
                        standards of academic achievement to 
                        all public elementary school and 
                        secondary school students in the State;
                            ``(ii) is statistically valid and 
                        reliable;
                            ``(iii) results in continuous and 
                        substantial academic improvement for 
                        all students;
                            ``(iv) measures the progress of 
                        public elementary schools, secondary 
                        schools and local educational agencies 
                        and the State based primarily on the 
                        academic assessments described in 
                        paragraph (3);
                            ``(v) includes separate measurable 
                        annual objectives for continuous and 
                        substantial improvement for each of the 
                        following:
                                    ``(I) The achievement of 
                                all public elementary school 
                                and secondary school students.
                                    ``(II) The achievement of--
                                            ``(aa) economically 
                                        disadvantaged students;
                                            ``(bb) students 
                                        from major racial and 
                                        ethnic groups;
                                            ``(cc) students 
                                        with disabilities; and
                                            ``(dd) students 
                                        with limited English 
                                        proficiency;
                                except that disaggregation of 
                                data under subclause (II) shall 
                                not be required in a case in 
                                which the number of students in 
                                a category is insufficient to 
                                yield statistically reliable 
                                information or the results 
                                would reveal personally 
                                identifiable information about 
                                an individual student;
                            ``(vi) in accordance with 
                        subparagraph (D), includes graduation 
                        rates for public secondary school 
                        students and at least 1 other academic 
                        indicator, as determined by the State 
                        for all public elementary school 
                        students; and
                            ``(vii) in accordance with 
                        subparagraph (D), at the State's 
                        discretion, may also include other 
                        academic indicators, as determined by 
                        the State for all public school 
                        students, measured separately for each 
                        group described in clause (v), such as 
                        achievement on additional State or 
                        locally administered assessments, 
                        decreases in grade-to-grade retention 
                        rates, attendance rates, and changes in 
                        the percentages of students completing 
                        gifted and talented, advanced 
                        placement, and college preparatory 
                        courses.
                    ``(D) Requirements for other indicators.--
                In carrying out subparagraph (C)(vi) and (vii), 
                the State--
                            ``(i) shall ensure that the 
                        indicators described in those 
                        provisions are valid and reliable, and 
                        are consistent with relevant, 
                        nationally recognized professional and 
                        technical standards, if any; and
                            ``(ii) except as provided in 
                        subparagraph (I)(i), may not use those 
                        indicators to reduce the number of, or 
                        change, the schools that would 
                        otherwise be subject to school 
                        improvement, corrective action, or 
                        restructuring under section 1116 if 
                        those additional indicators were not 
                        used, but may use them to identify 
                        additional schools for school 
                        improvement or in need of corrective 
                        action or restructuring.
                    ``(E) Starting point.--Each State, using 
                data for the 2001-2002 school year, shall 
                establish the starting point for measuring, 
                under subparagraphs (G) and (H), the percentage 
                of students meeting or exceeding the State's 
                proficient level of academic achievement on the 
                State assessments under paragraph (3) and 
                pursuant to the timeline described in 
                subparagraph (F). The starting point shall be, 
                at a minimum, based on the higher of the 
                percentage of students at the proficient level 
                who are in--
                            ``(i) the State's lowest achieving 
                        group of students described in 
                        subparagraph (C)(v)(II); or
                            ``(ii) the school at the 20th 
                        percentile in the State, based on 
                        enrollment, among all schools ranked by 
                        the percentage of students at the 
                        proficient level.
                    ``(F) Timeline.--Each State shall establish 
                a timeline for adequate yearly progress. The 
                timeline shall ensure that not later than 12 
                years after the end of the 2001-2002 school 
                year, all students in each group described in 
                subparagraph (C)(v) will meet or exceed the 
                State's proficient level of academic 
                achievement on the State assessments under 
                paragraph (3).
                    ``(G) Measurable objectives.--Each State 
                shall establish statewide annual measurable 
                objectives, pursuant to subparagraph (C)(v), 
                for meeting the requirements of this paragraph, 
                and which--
                            ``(i) shall be set separately for 
                        the assessments of mathematics and 
                        reading or language arts under 
                        subsection (a)(3);
                            ``(ii) shall be the same for all 
                        schools and local educational agencies 
                        in the State;
                            ``(iii) shall identify a single 
                        minimum percentage of students who are 
                        required to meet or exceed the 
                        proficient level on the academic 
                        assessments that applies separately to 
                        each group of students described in 
                        subparagraph (C)(v);
                            ``(iv) shall ensure that all 
                        students will meet or exceed the 
                        State's proficient level of academic 
                        achievement on the State assessments 
                        within the State's timeline under 
                        subparagraph (F); and
                            ``(v) may be the same for more than 
                        1 year, subject to the requirements of 
                        subparagraph (H).
                    ``(H) Intermediate goals for annual yearly 
                progress.--Each State shall establish 
                intermediate goals for meeting the 
                requirements, including the measurable 
                objectives in subparagraph (G), of this 
                paragraph and that shall--
                            ``(i) increase in equal increments 
                        over the period covered by the State's 
                        timeline under subparagraph (F);
                            ``(ii) provide for the first 
                        increase to occur in not more than two 
                        years; and
                            ``(iii) provide for each following 
                        increase to occur in not more than 
                        three years.
                    ``(I) Annual improvement for schools.--Each 
                year, for a school to make adequate yearly 
                progress under this paragraph--
                            ``(i) each group of students 
                        described in subparagraph (C)(v) must 
                        meet or exceed the objectives set by 
                        the State under subparagraph (G), 
                        except that if any group described in 
                        subparagraph (C)(v) does not meet those 
                        objectives in any particular year, the 
                        school shall be considered to have made 
                        adequate yearly progress if the 
                        percentage of students in that group 
                        who did not meet or exceed the 
                        proficient level of academic 
                        achievement on the State assessments 
                        under paragraph (3) for that year 
                        decreased by 10 percent of that 
                        percentage from the preceding school 
                        year and that group made progress on 
                        one or more of the academic indicators 
                        described in subparagraph (C)(vi) or 
                        (vii); and
                            ``(ii) not less than 95 percent of 
                        each group of students described in 
                        subparagraph (C)(v) who are enrolled in 
                        the school are required to take the 
                        assessments, consistent with paragraph 
                        (3)(C)(xi) and with accommodations, 
                        guidelines, and alternative assessments 
                        provided in the same manner as those 
                        provided under section 612(a)(17)(A) of 
                        the Individuals with Disabilities 
                        Education Act and paragraph (3), on 
                        which adequate yearly progress is based 
                        (except that the 95 percent requirement 
                        described in this clause shall not 
                        apply in a case in which the number of 
                        students in a category is insufficient 
                        to yield statistically reliable 
                        information or the results would reveal 
                        personally identifiable information 
                        about an individual student).
                    ``(J) Uniform averaging procedure.--For the 
                purpose of determining whether schools are 
                making adequate yearly progress, the State may 
                establish a uniform procedure for averaging 
                data which includes one or more of the 
                following:
                            ``(i) The State may average data 
                        from the school year for which the 
                        determination is made with data from 
                        one or two school years immediately 
                        preceding that school year.
                            ``(ii) Until the assessments 
                        described in paragraph (3) are 
                        administered in such manner and time to 
                        allow for the implementation of the 
                        uniform procedure for averaging data 
                        described in clause (i), the State may 
                        use the academic assessments that were 
                        required under paragraph (3) as that 
                        paragraph was in effect on the day 
                        preceding the date of enactment of the 
                        No Child Left Behind Act of 2001, 
                        provided that nothing in this clause 
                        shall be construed to undermine or 
                        delay the determination of adequate 
                        yearly progress, the requirements of 
                        section 1116, or the implementation of 
                        assessments under this section.
                            ``(iii) The State may use data 
                        across grades in a school.
            ``(3) Academic assessments.--
                    ``(A) In general.--Each State plan shall 
                demonstrate that the State, in consultation 
                with local educational agencies, has 
                implemented a set of high-quality, yearly 
                student academic assessments that include, at a 
                minimum, academic assessments in mathematics, 
                reading or language arts, and science that will 
                be used as the primary means of determining the 
                yearly performance of the State and of each 
                local educational agency and school in the 
                State in enabling all children to meet the 
                State's challenging student academic 
                achievement standards, except that no State 
                shall be required to meet the requirements of 
                this part relating to science assessments until 
                the beginning of the 2007-2008 school year.
                    ``(B) Use of assessments.--Each State may 
                incorporate the data from the assessments under 
                this paragraph into a State-developed 
                longitudinal data system that links student 
                test scores, length of enrollment, and 
                graduation records over time.
                    ``(C) Requirements.--Such assessments 
                shall--
                            ``(i) be the same academic 
                        assessments used to measure the 
                        achievement of all children;
                            ``(ii) be aligned with the State's 
                        challenging academic content and 
                        student academic achievement standards, 
                        and provide coherent information about 
                        student attainment of such standards;
                            ``(iii) be used for purposes for 
                        which such assessments are valid and 
                        reliable, and be consistent with 
                        relevant, nationally recognized 
                        professional and technical standards;
                            ``(iv) be used only if the State 
                        provides to the Secretary evidence from 
                        the test publisher or other relevant 
                        sources that the assessments used are 
                        of adequate technical quality for each 
                        purpose required under this Act and are 
                        consistent with the requirements of 
                        this section, and such evidence is made 
                        public by the Secretary upon request;
                            ``(v)(I) except as otherwise 
                        provided for grades 3 through 8 under 
                        clause vii, measure the proficiency of 
                        students in, at a minimum, mathematics 
                        and reading or language arts, and be 
                        administered not less than once 
                        during--
                                    ``(aa) grades 3 through 5;
                                    ``(bb) grades 6 through 9; 
                                and
                                    ``(cc) grades 10 through 
                                12;
                            ``(II) beginning not later than 
                        school year 2007-2008, measure the 
                        proficiency of all students in science 
                        and be administered not less than one 
                        time during--
                                    ``(aa) grades 3 through 5;
                                    ``(bb) grades 6 through 9; 
                                and
                                    ``(cc) grades 10 through 
                                12;
                            ``(vi) involve multiple up-to-date 
                        measures of student academic 
                        achievement, including measures that 
                        assess higher-order thinking skills and 
                        understanding;
                            ``(vii) beginning not later than 
                        school year 2005-2006, measure the 
                        achievement of students against the 
                        challenging State academic content and 
                        student academic achievement standards 
                        in each of grades 3 through 8 in, at a 
                        minimum, mathematics, and reading or 
                        language arts, except that the 
                        Secretary may provide the State 1 
                        additional year if the State 
                        demonstrates that exceptional or 
                        uncontrollable circumstances, such as a 
                        natural disaster or a precipitous and 
                        unforeseen decline in the financial 
                        resources of the State, prevented full 
                        implementation of the academic 
                        assessments by that deadline and that 
                        the State will complete implementation 
                        within the additional 1-year period;
                            ``(viii) at the discretion of the 
                        State, measure the proficiency of 
                        students in academic subjects not 
                        described in clauses (v), (vi), (vii) 
                        in which the State has adopted 
                        challenging academic content and 
                        academic achievement standards;
                            ``(ix) provide for--
                                    ``(I) the participation in 
                                such assessments of all 
                                students;
                                    ``(II) the reasonable 
                                adaptations and accommodations 
                                for students with disabilities 
                                (as defined under section 
                                602(3) of the Individuals with 
                                Disabilities Education Act) 
                                necessary to measure the 
                                academic achievement of such 
                                students relative to State 
                                academic content and State 
                                student academic achievement 
                                standards; and
                                    ``(III) the inclusion of 
                                limited English proficient 
                                students, who shall be assessed 
                                in a valid and reliable manner 
                                and provided reasonable 
                                accommodations on assessments 
                                administered to such students 
                                under this paragraph, 
                                including, to the extent 
                                practicable, assessments in the 
                                language and form most likely 
                                to yield accurate data on what 
                                such students know and can do 
                                in academic content areas, 
                                until such students have 
                                achieved English language 
                                proficiency as determined under 
                                paragraph (7);
                            ``(x) notwithstanding subclause 
                        (III), the academic assessment (using 
                        tests written in English) of reading or 
                        language arts of any student who has 
                        attended school in the United States 
                        (not including Puerto Rico) for 3 or 
                        more consecutive school years, except 
                        that if the local educational agency 
                        determines, on a case-by-case 
                        individual basis, that academic 
                        assessments in another language or form 
                        would likely yield more accurate and 
                        reliable information on what such 
                        student knows and can do, the local 
                        educational agency may make a 
                        determination to assess such student in 
                        the appropriate language other than 
                        English for a period that does not 
                        exceed 2 additional consecutive years, 
                        provided that such student has not yet 
                        reached a level of English language 
                        proficiency sufficient to yield valid 
                        and reliable information on what such 
                        student knows and can do on tests 
                        (written in English) of reading or 
                        language arts;
                            ``(xi) include students who have 
                        attended schools in a local educational 
                        agency for a full academic year but 
                        have not attended a single school for a 
                        full academic year, except that the 
                        performance of students who have 
                        attended more than 1 school in the 
                        local educational agency in any 
                        academic year shall be used only in 
                        determining the progress of the local 
                        educational agency;
                            ``(xii) produce individual student 
                        interpretive, descriptive, and 
                        diagnostic reports, consistent with 
                        clause (iii) that allow parents, 
                        teachers, and principals to understand 
                        and address the specific academic needs 
                        of students, and include information 
                        regarding achievement on academic 
                        assessments aligned with State academic 
                        achievement standards, and that are 
                        provided to parents, teachers, and 
                        principals, as soon as is practicably 
                        possible after the assessment is given, 
                        in an understandable and uniform 
                        format, and to the extent practicable, 
                        in a language that parents can 
                        understand;
                            ``(xiii) enable results to be 
                        disaggregated within each State, local 
                        educational agency, and school by 
                        gender, by each major racial and ethnic 
                        group, by English proficiency status, 
                        by migrant status, by students with 
                        disabilities as compared to nondisabled 
                        students, and by economically 
                        disadvantaged students as compared to 
                        students who are not economically 
                        disadvantaged, except that, in the case 
                        of a local educational agency or a 
                        school, such disaggregation shall not 
                        be required in a case in which the 
                        number of students in a category is 
                        insufficient to yield statistically 
                        reliable information or the results 
                        would reveal personally identifiable 
                        information about an individual 
                        student;
                            ``(xiv) be consistent with widely 
                        accepted professional testing 
                        standards, objectively measure academic 
                        achievement, knowledge, and skills, and 
                        be tests that do not evaluate or assess 
                        personal or family beliefs and 
                        attitudes, or publicly disclose 
                        personally identifiable information; 
                        and
                            ``(xv) enable itemized score 
                        analyses to be produced and reported, 
                        consistent with clause (iii), to local 
                        educational agencies and schools, so 
                        that parents, teachers, principals, and 
                        administrators can interpret and 
                        address the specific academic needs of 
                        students as indicated by the students' 
                        achievement on assessment items.
                    ``(D) Deferral.--A State may defer the 
                commencement, or suspend the administration, 
                but not cease the development, of the 
                assessments described in this paragraph, that 
                were not required prior to the date of 
                enactment of the No Child Left Behind Act of 
                2001, for 1 year for each year for which the 
                amount appropriated for grants under section 
                6204(c) is less than--
                            ``(i) $370,000,000 for fiscal year 
                        2002;
                            ``(ii) $380,000,000 for fiscal year 
                        2003;
                            ``(iii) $390,000,000 for fiscal 
                        year 2004; and
                            ``(iv) $400,000,000 for fiscal 
                        years 2005 through 2007.
            ``(4) Special rule.--Academic assessment measures 
        in addition to those in paragraph (3) that do not meet 
        the requirements of such paragraph may be included in 
        the assessment under paragraph (3) as additional 
        measures, but may not be used in lieu of the academic 
        assessments required under paragraph (3). Such 
        additional assessment measures may not be used to 
        reduce the number of or change, the schools that would 
        otherwise be subject to school improvement, corrective 
        action, or restructuring under section 1116 if such 
        additional indicators were not used, but may be used to 
        identify additional schools for school improvement or 
        in need of corrective action or restructuring except as 
        provided in paragraph (2)(i)(I).
            ``(5) State authority.--If a State educational 
        agency provides evidence, which is satisfactory to the 
        Secretary, that neither the State educational agency 
        nor any other State government official, agency, or 
        entity has sufficient authority, under State law, to 
        adopt curriculum content and student academic 
        achievement standards, and academic assessments aligned 
        with such academic standards, which will be applicable 
        to all students enrolled in the State's public 
        elementary schools and secondary schools, then the 
        State educational agency may meet the requirements of 
        this subsection by--
                    ``(A) adopting academic standards and 
                academic assessments that meet the requirements 
                of this subsection, on a statewide basis, and 
                limiting their applicability to students served 
                under this part; or
                    ``(B) adopting and implementing policies 
                that ensure that each local educational agency 
                in the State that receives grants under this 
                part will adopt curriculum content and student 
                academic achievement standards, and academic 
                assessments aligned with such standards, 
                which--
                            ``(i) meet all of the criteria in 
                        this subsection and any regulations 
                        regarding such standards and 
                        assessments that the Secretary may 
                        publish; and
                            ``(ii) are applicable to all 
                        students served by each such local 
                        educational agency.
            ``(6) Language assessments.--Each State plan shall 
        identify the languages other than English that are 
        present in the participating student population and 
        indicate the languages for which yearly student 
        academic assessments are not available and are needed. 
        The State shall make every effort to develop such 
        assessments and may request assistance from the 
        Secretary if linguistically accessible academic 
        assessment measures are needed. Upon request, the 
        Secretary shall assist with the identification of 
        appropriate academic assessment measures in the needed 
        languages, but shall not mandate a specific academic 
        assessment or mode of instruction.
            ``(7) Academic assessments of english language 
        proficiency.--Each State plan shall demonstrate that 
        local educational agencies in the State will, beginning 
        not later than school year 2002-2003, provide for an 
        annual assessment of English proficiency (measuring 
        students' oral language, reading, and writing skills in 
        English) of all students with limited English 
        proficiency in the schools served by the State, except 
        that the Secretary may provide the State 1 additional 
        year if the State demonstrates that exceptional or 
        uncontrollable circumstances, such as a natural 
        disaster or a precipitous and unforeseen decline in the 
        financial resources of the State, prevented full 
        implementation of this paragraph by that deadline and 
        that the State will complete implementation within the 
        additional 1-year period.
            ``(8) Requirement.--Each State plan shall 
        describe--
                    ``(A) how the State educational agency will 
                assist each local educational agency and school 
                affected by the State plan to develop the 
                capacity to comply with each of the 
                requirements of sections 1112(c)(1)(D), 
                1114(b), and 1115(c) that is applicable to such 
                agency or school;
                    ``(B) how the State educational agency will 
                assist each local educational agency and school 
                affected by the State plan to provide 
                additional educational assistance to individual 
                students assessed as needing help to achieve 
                the State's challenging academic achievement 
                standards;
                    ``(C) the specific steps the State 
                educational agency will take to ensure that 
                both schoolwide programs and targeted 
                assistance schools provide instruction by 
                highly qualified instructional staff as 
                required by sections 1114(b)(1)(C) and 
                1115(c)(1)(E), including steps that the State 
                educational agency will take to ensure that 
                poor and minority children are not taught at 
                higher rates than other children by 
                inexperienced, unqualified, or out-of-field 
                teachers, and the measures that the State 
                educational agency will use to evaluate and 
                publicly report the progress of the State 
                educational agency with respect to such steps;
                    ``(D) an assurance that the State 
                educational agency will assist local 
                educational agencies in developing or 
                identifying high-quality effective curricula 
                aligned with State academic achievement 
                standards and how the State educational agency 
                will disseminate such curricula to each local 
                educational agency and school within the State; 
                and
                    ``(E) such other factors the State 
                determines appropriate to provide students an 
                opportunity to achieve the knowledge and skills 
                described in the challenging academic content 
                standards adopted by the State.
            ``(9) Factors affecting student achievement.--Each 
        State plan shall include an assurance that the State 
        will coordinate and collaborate, to the extent feasible 
        and necessary as determined by the State, with agencies 
        providing services to children, youth, and families, 
        with respect to local educational agencies within the 
        State that are identified under section 1116 and that 
        request assistance with addressing major factors that 
        have significantly affected the academic achievement of 
        students in the local educational agency or schools 
        served by such agency.
            ``(10) Use of academic assessment results to 
        improve student academic achievement.--Each State plan 
        shall describe how the State will ensure that the 
        results of the State assessments described in paragraph 
        (3)--
                    ``(A) will be promptly provided to local 
                educational agencies, schools, and teachers in 
                a manner that is clear and easy to understand, 
                but not later than before the beginning of the 
                next school year; and
                    ``(B) be used by those local educational 
                agencies, schools, and teachers to improve the 
                educational achievement of individual students.
    ``(c) Other Provisions To Support Teaching and Learning.--
Each State plan shall contain assurances that--
            ``(1) the State will meet the requirements of 
        subsection (h)(1) and, beginning with the 2002-2003 
        school year, will produce the annual State report cards 
        described in such subsection, except that the Secretary 
        may provide the State 1 additional year if the State 
        demonstrates that exceptional or uncontrollable 
        circumstances, such as a natural disaster or a 
        precipitous and unforeseen decline in the financial 
        resources of the State, prevented full implementation 
        of this paragraph by that deadline and that the State 
        will complete implementation within the additional 1-
        year period;
            ``(2) the State will, beginning in school year 
        2002-2003, participate in biennial State academic 
        assessments of 4th and 8th grade reading and 
        mathematics under the National Assessment of 
        Educational Progress carried out under section 
        411(b)(2) of the National Education Statistics Act of 
        1994 if the Secretary pays the costs of administering 
        such assessments;
            ``(3) the State educational agency, in consultation 
        with the Governor, will include, as a component of the 
        State plan, a plan to carry out the responsibilities of 
        the State under sections 1116 and 1117, including 
        carrying out the State educational agency's statewide 
        system of technical assistance and support for local 
        educational agencies;
            ``(4) the State educational agency will work with 
        other agencies, including educational service agencies 
        or other local consortia, and institutions to provide 
        technical assistance to local educational agencies and 
        schools, including technical assistance in providing 
        professional development under section 1119, technical 
        assistance under section 1117, and technical assistance 
        relating to parental involvement under section 1118;
            ``(5)(A) where educational service agencies exist, 
        the State educational agency will consider providing 
        professional development and technical assistance 
        through such agencies; and
            ``(B) where educational service agencies do not 
        exist, the State educational agency will consider 
        providing professional development and technical 
        assistance through other cooperative agreements such as 
        through a consortium of local educational agencies;
            ``(6) the State educational agency will notify 
        local educational agencies and the public of the 
        content and student academic achievement standards and 
        academic assessments developed under this section, and 
        of the authority to operate schoolwide programs, and 
        will fulfill the State educational agency's 
        responsibilities regarding local educational agency 
        improvement and school improvement under section 1116, 
        including such corrective actions as are necessary;
            ``(7) the State educational agency will provide the 
        least restrictive and burdensome regulations for local 
        educational agencies and individual schools 
        participating in a program assisted under this part;
            ``(8) the State educational agency will inform the 
        Secretary and the public of how Federal laws, if at 
        all, hinder the ability of States to hold local 
        educational agencies and schools accountable for 
        student academic achievement;
            ``(9) the State educational agency will encourage 
        schools to consolidate funds from other Federal, State, 
        and local sources for schoolwide reform in schoolwide 
        programs under section 1114;
            ``(10) the State educational agency will modify or 
        eliminate State fiscal and accounting barriers so that 
        schools can easily consolidate funds from other 
        Federal, State, and local sources for schoolwide 
        programs under section 1114;
            ``(11) the State educational agency has involved 
        the committee of practitioners established under 
        section 1903(b) in developing the plan and monitoring 
        its implementation;
            ``(12) the State educational agency will inform 
        local educational agencies in the State of the local 
        educational agency's authority to transfer funds under 
        title VI, to obtain waivers under part D of title IX, 
        and, if the State is an Ed-Flex Partnership State, to 
        obtain waivers under the Education Flexibility 
        Partnership Act of 1999;
            ``(13) the State will coordinate activities funded 
        under this part with other Federal activities as 
        appropriate; and
            ``(14) the State educational agency will encourage 
        local educational agencies and individual schools 
        participating in a program assisted under this part to 
        offer family literacy services (using funds under this 
        part), if the agency or school determines that a 
        substantial number of students served under this part 
        by the agency or school have parents who do not have a 
        secondary school diploma or its recognized equivalent 
        or who have low levels of literacy.
    ``(d) Parental Involvement.--Each State plan shall describe 
how the State will support the collection and dissemination to 
local educational agencies and schools of effective parental 
involvement practices. Such practices shall--
            ``(1) be based on the most current research that 
        meets the highest professional and technical standards, 
        on effective parental involvement that fosters 
        achievement to high standards for all children; and
            ``(2) be geared toward lowering barriers to greater 
        participation by parents in school planning, review, 
        and improvement experienced.
    ``(e) Peer Review and Secretarial Approval.--
            ``(1) Secretarial duties.--The Secretary shall--
                    ``(A) establish a peer-review process to 
                assist in the review of State plans;
                    ``(B) appoint individuals to the peer-
                review process who are representative of 
                parents, teachers, State educational agencies, 
                and local educational agencies, and who are 
                familiar with educational standards, 
                assessments, accountability, the needs of low-
                performing schools, and other educational needs 
                of students;
                    ``(C) approve a State plan within 120 days 
                of its submission unless the Secretary 
                determines that the plan does not meet the 
                requirements of this section;
                    ``(D) if the Secretary determines that the 
                State plan does not meet the requirements of 
                subsection (a), (b), or (c), immediately notify 
                the State of such determination and the reasons 
                for such determination;
                    ``(E) not decline to approve a State's plan 
                before--
                            ``(i) offering the State an 
                        opportunity to revise its plan;
                            ``(ii) providing technical 
                        assistance in order to assist the State 
                        to meet the requirements of subsections 
                        (a), (b), and (c); and
                            ``(iii) providing a hearing; and
                    ``(F) have the authority to disapprove a 
                State plan for not meeting the requirements of 
                this part, but shall not have the authority to 
                require a State, as a condition of approval of 
                the State plan, to include in, or delete from, 
                such plan one or more specific elements of the 
                State's academic content standards or to use 
                specific academic assessment instruments or 
                items.
            ``(2) State revisions.--A State shall revise its 
        State plan if necessary to satisfy the requirements of 
        this section.
    ``(f) Duration of the Plan.--
            ``(1) In general.--Each State plan shall--
                    ``(A) remain in effect for the duration of 
                the State's participation under this part; and
                    ``(B) be periodically reviewed and revised 
                by the State, as necessary, to reflect changes 
                in the State's strategies and programs under 
                this part.
            ``(2) Additional information.--If the State makes 
        significant changes to its State plan, such as the 
        adoption of new State academic content standards and 
        State student achievement standards, new academic 
        assessments, or a new definition of adequate yearly 
        progress, the State shall submit such information to 
        the Secretary.
    ``(g) Penalties.--
            ``(1) Failure to meet deadlines enacted in 1994.--
                    ``(A) In general.--If a State fails to meet 
                the deadlines established by the Improving 
                America's Schools Act of 1994 (or under any 
                waiver granted by the Secretary or under any 
                compliance agreement with the Secretary) for 
                demonstrating that the State has in place 
                challenging academic content standards and 
                student achievement standards, and a system for 
                measuring and monitoring adequate yearly 
                progress, the Secretary shall withhold 25 
                percent of the funds that would otherwise be 
                available to the State for State administration 
                and activities under this part in each year 
                until the Secretary determines that the State 
                meets those requirements.
                    ``(B) No extension.--Notwithstanding any 
                other provision of law, 90 days after the date 
                of enactment of the No Child Left Behind Act of 
                2001 the Secretary shall not grant any 
                additional waivers of, or enter into any 
                additional compliance agreements to extend, the 
                deadlines described in subparagraph (A) for any 
                State.
            ``(2) Failure to meet requirements enacted in 
        2001.--If a State fails to meet any of the requirements 
        of this section, other than the requirements described 
        in paragraph (1), then the Secretary may withhold funds 
        for State administration under this part until the 
        Secretary determines that the State has fulfilled those 
        requirements.
    ``(h) Reports.--
            ``(1) Annual state report card.--
                    ``(A) In general.--Not later than the 
                beginning of the 2002-2003 school year, unless 
                the State has received a 1-year extension 
                pursuant to subsection (c)(1), a State that 
                receives assistance under this part shall 
                prepare and disseminate an annual State report 
                card.
                    ``(B) Implementation.--The State report 
                card shall be--
                            ``(i) concise; and
                            ``(ii) presented in an 
                        understandable and uniform format and, 
                        to the extent practicable, provided in 
                        a language that the parents can 
                        understand.
                    ``(C) Required information.--The State 
                shall include in its annual State report card--
                            ``(i) information, in the 
                        aggregate, on student achievement at 
                        each proficiency level on the State 
                        academic assessments described in 
                        subsection (b)(3) (disaggregated by 
                        race, ethnicity, gender, disability 
                        status, migrant status, English 
                        proficiency, and status as economically 
                        disadvantaged, except that such 
                        disaggregation shall not be required in 
                        a case in which the number of students 
                        in a category is insufficient to yield 
                        statistically reliable information or 
                        the results would reveal personally 
                        identifiable information about an 
                        individual student);
                            ``(ii) information that provides a 
                        comparison between the actual 
                        achievement levels of each group of 
                        students described in subsection 
                        (b)(2)(C)(v) and the State's annual 
                        measurable objectives for each such 
                        group of students on each of the 
                        academic assessments required under 
                        this part;
                            ``(iii) the percentage of students 
                        not tested (disaggregated by the same 
                        categories and subject to the same 
                        exception described in clause (i));
                            ``(iv) the most recent 2-year trend 
                        in student achievement in each subject 
                        area, and for each grade level, for 
                        which assessments under this section 
                        are required;
                            ``(v) aggregate information on any 
                        other indicators used by the State to 
                        determine the adequate yearly progress 
                        of students in achieving State academic 
                        achievement standards;
                            ``(vi) graduation rates for 
                        secondary school students consistent 
                        with subsection (b)(2)(B)(vii);
                            ``(vii) information on the 
                        performance of local educational 
                        agencies in the State regarding making 
                        adequate yearly progress, including the 
                        number and names of each school 
                        identified for school improvement under 
                        section 1116; and
                            ``(viii) the professional 
                        qualifications of teachers in the 
                        State, the percentage of such teachers 
                        teaching with emergency or provisional 
                        credentials, and the percentage of 
                        classes in the State not taught by 
                        highly qualified teachers, in the 
                        aggregate and disaggregated by high-
                        poverty compared to low-poverty schools 
                        which, for the purpose of this clause, 
                        means schools in the top quartile of 
                        poverty and the bottom quartile of 
                        poverty in the State.
                    ``(D) Optional information.--The State may 
                include in its annual State report card such 
                other information as the State believes will 
                best provide parents, students, and other 
                members of the public with information 
                regarding the progress of each of the State's 
                public elementary schools and public secondary 
                schools. Such information may include 
                information regarding--
                            ``(i) school attendance rates;
                            ``(ii) average class size in each 
                        grade;
                            ``(iii) academic achievement and 
                        gains in English proficiency of limited 
                        English proficient students;
                            ``(iv) the incidence of school 
                        violence, drug abuse, alcohol abuse, 
                        student suspensions, and student 
                        expulsions;
                            ``(v) the extent and type of 
                        parental involvement in the schools;
                            ``(vi) the percentage of students 
                        completing advanced placement courses, 
                        and the rate of passing of advanced 
                        placement tests; and
                            ``(vii) a clear and concise 
                        description of the State's 
                        accountability system, including a 
                        description of the criteria by which 
                        the State evaluates school performance, 
                        and the criteria that the State has 
                        established, consistent with subsection 
                        (b)(2), to determine the status of 
                        schools regarding school improvement, 
                        corrective action, and restructuring.
            ``(2) Annual local educational agency report 
        cards.--
                    ``(A) Report cards.--
                            ``(i) In general.--Not later than 
                        the beginning of the 2002-2003 school 
                        year, a local educational agency that 
                        receives assistance under this part 
                        shall prepare and disseminate an annual 
                        local educational agency report card, 
                        except that the State may provide the 
                        local educational agency 1 additional 
                        year if the local educational agency 
                        demonstrates that exceptional or 
                        uncontrollable circumstances, such as a 
                        natural disaster or a precipitous and 
                        unforeseen decline in the financial 
                        resources of the local educational 
                        agency, prevented full implementation 
                        of this paragraph by that deadline and 
                        that the local educational agency will 
                        complete implementation within the 
                        additional 1-year period.
                            ``(ii) Special rule.--If a State 
                        has received an extension pursuant to 
                        subsection (c)(1), then a local 
                        educational agency within that State 
                        shall not be required to include the 
                        information required under paragraph 
                        (1)(C) in such report card during such 
                        extension.
                    ``(B) Minimum requirements.--The State 
                shall ensure that each local educational agency 
                collects appropriate data and includes in the 
                local educational agency's annual report the 
                information described in paragraph (1)(C) as 
                applied to the local educational agency and 
                each school served by the local educational 
                agency, and--
                            ``(i) in the case of a local 
                        educational agency--
                                    ``(I) the number and 
                                percentage of schools 
                                identified for school 
                                improvement under section 
                                1116(c) and how long the 
                                schools have been so 
                                identified; and
                                    ``(II) information that 
                                shows how students served by 
                                the local educational agency 
                                achieved on the statewide 
                                academic assessment compared to 
                                students in the State as a 
                                whole; and
                            ``(ii) in the case of a school--
                                    ``(I) whether the school 
                                has been identified for school 
                                improvement; and
                                    ``(II) information that 
                                shows how the school's students 
                                achievement on the statewide 
                                academic assessments and other 
                                indicators of adequate yearly 
                                progress compared to students 
                                in the local educational agency 
                                and the State as a whole.
                    ``(C) Other information.--A local 
                educational agency may include in its annual 
                local educational agency report card any other 
                appropriate information, whether or not such 
                information is included in the annual State 
                report card.
                    ``(D) Data.--A local educational agency or 
                school shall only include in its annual local 
                educational agency report card data that are 
                sufficient to yield statistically reliable 
                information, as determined by the State, and 
                that do not reveal personally identifiable 
                information about an individual student.
                    ``(E) Public dissemination.--The local 
                educational agency shall, not later than the 
                beginning of the 2002-2003 school year, unless 
                the local educational agency has received a 1-
                year extension pursuant to subparagraph (A), 
                publicly disseminate the information described 
                in this paragraph to all schools in the school 
                district served by the local educational agency 
                and to all parents of students attending those 
                schools in an understandable and uniform format 
                and, to the extent practicable, provided in a 
                language that the parents can understand, and 
                make the information widely available through 
                public means, such as posting on the Internet, 
                distribution to the media, and distribution 
                through public agencies, except that if a local 
                educational agency issues a report card for all 
                students, the local educational agency may 
                include the information under this section as 
                part of such report.
            ``(3) Preexisting report cards.--A State 
        educational agency or local educational agency that was 
        providing public report cards on the performance of 
        students, schools, local educational agencies, or the 
        State prior to the enactment of the No Child Left 
        Behind Act of 2001 may use those report cards for the 
        purpose of this subsection, so long as any such report 
        card is modified, as may be needed, to contain the 
        information required by this subsection.
            ``(4) Annual state report to the secretary.--Each 
        State receiving assistance under this part shall report 
        annually to the Secretary, and make widely available 
        within the State--
                    ``(A) beginning with school year 2002-2003, 
                information on the State's progress in 
                developing and implementing the academic 
                assessments described in subsection (b)(3);
                    ``(B) beginning not later than school year 
                2002-2003, information on the achievement of 
                students on the academic assessments required 
                by subsection (b)(3), including the 
                disaggregated results for the categories of 
                students identified in subsection (b)(2)(C)(v);
                    ``(C) in any year before the State begins 
                to provide the information described in 
                subparagraph (B), information on the results of 
                student academic assessments (including 
                disaggregated results) required under this 
                section;
                    ``(D) beginning not later than school year 
                2002-2003, unless the State has received an 
                extension pursuant to subsection (c)(1), 
                information on the acquisition of English 
                proficiency by children with limited English 
                proficiency;
                    ``(E) the number and names of each school 
                identified for school improvement under section 
                1116(c), the reason why each school was so 
                identified, and the measures taken to address 
                the achievement problems of such schools;
                    ``(F) the number of students and schools 
                that participated in public school choice and 
                supplemental service programs and activities 
                under this title; and
                    ``(G) beginning not later than the 2002-
                2003 school year, information on the quality of 
                teachers and the percentage of classes being 
                taught by highly qualified teachers in the 
                State, local educational agency, and school.
            ``(5) Report to congress.--The Secretary shall 
        transmit annually to the Committee on Education and the 
        Workforce of the House of Representatives and the 
        Committee on Health, Education, Labor, and Pensions of 
        the Senate a report that provides national and State-
        level data on the information collected under paragraph 
        (4).
            ``(6) Parents right-to-know.--
                    ``(A) Qualifications.--At the beginning of 
                each school year, a local educational agency 
                that receives funds under this part shall 
                notify the parents of each student attending 
                any school receiving funds under this part that 
                the parents may request, and the agency will 
                provide the parents on request (and in a timely 
                manner), information regarding the professional 
                qualifications of the student's classroom 
                teachers, including, at a minimum, the 
                following:
                            ``(i) Whether the teacher has met 
                        State qualification and licensing 
                        criteria for the grade levels and 
                        subject areas in which the teacher 
                        provides instruction.
                            ``(ii) Whether the teacher is 
                        teaching under emergency or other 
                        provisional status through which State 
                        qualification or licensing criteria 
                        have been waived.
                            ``(iii) The baccalaureate degree 
                        major of the teacher and any other 
                        graduate certification or degree held 
                        by the teacher, and the field of 
                        discipline of the certification or 
                        degree.
                            ``(iv) Whether the child is 
                        provided services by paraprofessionals 
                        and, if so, their qualifications.
                    ``(B) Additional information.--In addition 
                to the information that parents may request 
                under subparagraph (A), a school that receives 
                funds under this part shall provide to each 
                individual parent--
                            ``(i) information on the level of 
                        achievement of the parent's child in 
                        each of the State academic assessments 
                        as required under this part; and
                            ``(ii) timely notice that the 
                        parent's child has been assigned, or 
                        has been taught for 4 or more 
                        consecutive weeks by, a teacher who is 
                        not highly qualified.
                    ``(C) Format.--The notice and information 
                provided to parents under this paragraph shall 
                be in an understandable and uniform format and, 
                to the extent practicable, provided in a 
                language that the parents can understand.
    ``(i) Privacy.--Information collected under this section 
shall be collected and disseminated in a manner that protects 
the privacy of individuals.
    ``(j) Technical Assistance.--The Secretary shall provide a 
State educational agency, at the State educational agency's 
request, technical assistance in meeting the requirements of 
this section, including the provision of advice by experts in 
the development of high-quality academic assessments, the 
setting of State standards, the development of measures of 
adequate yearly progress that are valid and reliable, and other 
relevant areas.
    ``(k) Voluntary Partnerships.--A State may enter into a 
voluntary partnership with another State to develop and 
implement the academic assessments and standards required under 
this section.
    ``(l) Construction.--Nothing in this part shall be 
construed to prescribe the use of the academic assessments 
described in this part for student promotion or graduation 
purposes.
    ``(m) Special Rule With Respect to Bureau-Funded Schools.--
In determining the assessments to be used by each operated or 
funded by BIA school receiving funds under this part, the 
following shall apply:
            ``(1) Each such school that is accredited by the 
        State in which it is operating shall use the 
        assessments the State has developed and implemented to 
        meet the requirements of this section, or such other 
        appropriate assessment as approved by the Secretary of 
        the Interior.
            ``(2) Each such school that is accredited by a 
        regional accrediting organization shall adopt an 
        appropriate assessment, in consultation with and with 
        the approval of, the Secretary of the Interior and 
        consistent with assessments adopted by other schools in 
        the same State or region, that meets the requirements 
        of this section.
            ``(3) Each such school that is accredited by a 
        tribal accrediting agency or tribal division of 
        education shall use an assessment developed by such 
        agency or division, except that the Secretary of the 
        Interior shall ensure that such assessment meets the 
        requirements of this section.

``SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.

    ``(a) Plans Required.--
            ``(1) Subgrants.--A local educational agency may 
        receive a subgrant under this part for any fiscal year 
        only if such agency has on file with the State 
        educational agency a plan, approved by the State 
        educational agency, that is coordinated with other 
        programs under this Act, the Individuals with 
        Disabilities Education Act, the Carl D. Perkins 
        Vocational and Technical Education Act of 1998, the 
        McKinney-Vento Homeless Assistance Act, and other Acts, 
        as appropriate.
            ``(2) Consolidated application.--The plan may be 
        submitted as part of a consolidated application under 
        section 9305.
    ``(b) Plan Provisions.--
            ``(1) In general.--In order to help low-achieving 
        children meet challenging achievement academic 
        standards, each local educational agency plan shall 
        include--
                    ``(A) a description of high-quality student 
                academic assessments, if any, that are in 
                addition to the academic assessments described 
                in the State plan under section 1111(b)(3), 
                that the local educational agency and schools 
                served under this part will use--
                            ``(i) to determine the success of 
                        children served under this part in 
                        meeting the State student academic 
                        achievement standards, and to provide 
                        information to teachers, parents, and 
                        students on the progress being made 
                        toward meeting the State student 
                        academic achievement standards 
                        described in section 1111(b)(1)(D)(ii);
                            ``(ii) to assist in diagnosis, 
                        teaching, and learning in the classroom 
                        in ways that best enable low-achieving 
                        children served under this part to meet 
                        State student achievement academic 
                        standards and do well in the local 
                        curriculum;
                            ``(iii) to determine what revisions 
                        are needed to projects under this part 
                        so that such children meet the State 
                        student academic achievement standards; 
                        and
                            ``(iv) to identify effectively 
                        students who may be at risk for reading 
                        failure or who are having difficulty 
                        reading, through the use of screening, 
                        diagnostic, and classroom-based 
                        instructional reading assessments, as 
                        defined under section 1208;
                    ``(B) at the local educational agency's 
                discretion, a description of any other 
                indicators that will be used in addition to the 
                academic indicators described in section 1111 
                for the uses described in such section;
                    ``(C) a description of how the local 
                educational agency will provide additional 
                educational assistance to individual students 
                assessed as needing help in meeting the State's 
                challenging student academic achievement 
                standards;
                    ``(D) a description of the strategy the 
                local educational agency will use to coordinate 
                programs under this part with programs under 
                title II to provide professional development 
                for teachers and principals, and, if 
                appropriate, pupil services personnel, 
                administrators, parents and other staff, 
                including local educational agency level staff 
                in accordance with sections 1118 and 1119;
                    ``(E) a description of how the local 
                educational agency will coordinate and 
                integrate services provided under this part 
                with other educational services at the local 
                educational agency or individual school level, 
                such as--
                            ``(i) Even Start, Head Start, 
                        Reading First, Early Reading First, and 
                        other preschool programs, including 
                        plans for the transition of 
                        participants in such programs to local 
                        elementary school programs; and
                            ``(ii) services for children with 
                        limited English proficiency, children 
                        with disabilities, migratory children, 
                        neglected or delinquent youth, Indian 
                        children served under part A of title 
                        VII, homeless children, and immigrant 
                        children in order to increase program 
                        effectiveness, eliminate duplication, 
                        and reduce fragmentation of the 
                        instructional program;
                    ``(F) an assurance that the local 
                educational agency will participate, if 
                selected, in the State National Assessment of 
                Educational Progress in 4th and 8th grade 
                reading and mathematics carried out under 
                section 411(b)(2) of the National Education 
                Statistics Act of 1994;
                    ``(G) a description of the poverty criteria 
                that will be used to select school attendance 
                areas under section 1113;
                    ``(H) a description of how teachers, in 
                consultation with parents, administrators, and 
                pupil services personnel, in targeted 
                assistance schools under section 1115, will 
                identify the eligible children most in need of 
                services under this part;
                    ``(I) a general description of the nature 
                of the programs to be conducted by such 
                agency's schools under sections 1114 and 1115 
                and, where appropriate, educational services 
                outside such schools for children living in 
                local institutions for neglected or delinquent 
                children, and for neglected and delinquent 
                children in community day school programs;
                    ``(J) a description of how the local 
                educational agency will ensure that migratory 
                children and formerly migratory children who 
                are eligible to receive services under this 
                part are selected to receive such services on 
                the same basis as other children who are 
                selected to receive services under this part;
                    ``(K) if appropriate, a description of how 
                the local educational agency will use funds 
                under this part to support preschool programs 
                for children, particularly children 
                participating in Early Reading First, or in a 
                Head Start or Even Start program, which 
                services may be provided directly by the local 
                educational agency or through a subcontract 
                with the local Head Start agency designated by 
                the Secretary of Health and Human Services 
                under section 641 of the Head Start Act, or an 
                agency operating an Even Start program, an 
                Early Reading First program, or another 
                comparable public early childhood development 
                program;
                    ``(L) a description of the actions the 
                local educational agency will take to assist 
                its low-achieving schools identified under 
                section 1116 as in need of improvement;
                    ``(M) a description of the actions the 
                local educational agency will take to implement 
                public school choice and supplemental services, 
                consistent with the requirements of section 
                1116;
                    ``(N) a description of how the local 
                educational agency will meet the requirements 
                of section 1119;
                    ``(O) a description of the services the 
                local educational agency will provide homeless 
                children, including services provided with 
                funds reserved under section 1113(c)(3)(A);
                    ``(P) a description of the strategy the 
                local educational agency will use to implement 
                effective parental involvement under section 
                1118; and
                    ``(Q) where appropriate, a description of 
                how the local educational agency will use funds 
                under this part to support after school, 
                (including before school and summer school) and 
                school-year extension programs).
            ``(2) Exception.--The academic assessments and 
        indicators described in subparagraphs (A) and (B) of 
        paragraph (1) shall not be used--
                    ``(A) in lieu of the academic assessments 
                required under section 1111(b)(3) and other 
                State academic indicators under section 
                1111(b)(2); or
                    ``(B) to reduce the number of, or change 
                which, schools would otherwise be subject to 
                school improvement, corrective action, or 
                restructuring under section 1116, if such 
                additional assessments or indicators described 
                in such subparagraphs were not used, but such 
                assessments and indicators may be used to 
                identify additional schools for school 
                improvement or in need of corrective action or 
                restructuring.
    ``(c) Assurances.--
            ``(1) In general.--Each local educational agency 
        plan shall provide assurances that the local 
        educational agency will--
                    ``(A) inform eligible schools and parents 
                of schoolwide program authority and the ability 
                of such schools to consolidate funds from 
                Federal, State, and local sources;
                    ``(B) provide technical assistance and 
                support to schoolwide programs;
                    ``(C) work in consultation with schools as 
                the schools develop the schools' plans pursuant 
                to section 1114 and assist schools as the 
                schools implement such plans or undertake 
                activities pursuant to section 1115 so that 
                each school can make adequate yearly progress 
                toward meeting the State student academic 
                achievement standards;
                    ``(D) fulfill such agency's school 
                improvement responsibilities under section 
                1116, including taking actions under paragraphs 
                (7) and (8) of section 1116(b);
                    ``(E) provide services to eligible children 
                attending private elementary schools and 
                secondary schools in accordance with section 
                1120, and timely and meaningful consultation 
                with private school officials regarding such 
                services;
                    ``(F) take into account the experience of 
                model programs for the educationally 
                disadvantaged, and the findings of relevant 
                scientifically based research indicating that 
                services may be most effective if focused on 
                students in the earliest grades at schools that 
                receive funds under this part;
                    ``(G) in the case of a local educational 
                agency that chooses to use funds under this 
                part to provide early childhood development 
                services to low-income children below the age 
                of compulsory school attendance, ensure that 
                such services comply with the performance 
                standards established under section 641A(a) of 
                the Head Start Act;
                    ``(H) work in consultation with schools as 
                the schools develop and implement their plans 
                or activities under sections 1118 and 1119;
                    ``(I) comply with the requirements of 
                section 1119 regarding the qualifications of 
                teachers and paraprofessionals and professional 
                development;
                    ``(J) inform eligible schools of the local 
                educational agency's authority to obtain 
                waivers on the school's behalf under title IX 
                and, if the State is an Ed-Flex Partnership 
                State, to obtain waivers under the Education 
                Flexibility Partnership Act of 1999;
                    ``(K) coordinate and collaborate, to the 
                extent feasible and necessary as determined by 
                the local educational agency, with the State 
                educational agency and other agencies providing 
                services to children, youth, and families with 
                respect to a school in school improvement, 
                corrective action, or restructuring under 
                section 1116 if such a school requests 
                assistance from the local educational agency in 
                addressing major factors that have 
                significantly affected student achievement at 
                the school;
                    ``(L) ensure, through incentives for 
                voluntary transfers, the provision of 
                professional development, recruitment programs, 
                or other effective strategies, that low-income 
                students and minority students are not taught 
                at higher rates than other students by 
                unqualified, out-of-field, or inexperienced 
                teachers;
                    ``(M) use the results of the student 
                academic assessments required under section 
                1111(b)(3), and other measures or indicators 
                available to the agency, to review annually the 
                progress of each school served by the agency 
                and receiving funds under this part to 
                determine whether all of the schools are making 
                the progress necessary to ensure that all 
                students will meet the State's proficient level 
                of achievement on the State academic 
                assessments described in section 1111(b)(3) 
                within 12 years from the baseline year 
                described in section 1111(b)(2)(E)(ii);
                    ``(N) ensure that the results from the 
                academic assessments required under section 
                1111(b)(3) will be provided to parents and 
                teachers as soon as is practicably possible 
                after the test is taken, in an understandable 
                and uniform format and, to the extent 
                practicable, provided in a language that the 
                parents can understand; and
                    ``(O) assist each school served by the 
                agency and assisted under this part in 
                developing or identifying examples of high-
                quality, effective curricula consistent with 
                section 1111(b)(8)(D).
            ``(2) Special rule.--In carrying out subparagraph 
        (G) of paragraph (1), the Secretary--
                    ``(A) shall consult with the Secretary of 
                Health and Human Services and shall establish 
                procedures (taking into consideration existing 
                State and local laws, and local teacher 
                contracts) to assist local educational agencies 
                to comply with such subparagraph; and
                    ``(B) shall disseminate to local 
                educational agencies the Head Start performance 
                standards as in effect under section 641A(a) of 
                the Head Start Act, and such agencies affected 
                by such subparagraph shall plan for the 
                implementation of such subparagraph (taking 
                into consideration existing State and local 
                laws, and local teacher contracts), including 
                pursuing the availability of other Federal, 
                State, and local funding sources to assist in 
                compliance with such subparagraph.
            ``(3) Inapplicability.--Paragraph (1)(G) of this 
        subsection shall not apply to preschool programs using 
        the Even Start model or to Even Start programs that are 
        expanded through the use of funds under this part.
    ``(d) Plan Development and Duration.--
            ``(1) Consultation.--Each local educational agency 
        plan shall be developed in consultation with teachers, 
        principals, administrators (including administrators of 
        programs described in other parts of this title), and 
        other appropriate school personnel, and with parents of 
        children in schools served under this part.
            ``(2) Duration.--Each such plan shall be submitted 
        for the first year for which this part is in effect 
        following the date of enactment of the No Child Left 
        Behind Act of 2001 and shall remain in effect for the 
        duration of the agency's participation under this part.
            ``(3) Review.--Each local educational agency shall 
        periodically review and, as necessary, revise its plan.
    ``(e) State Approval.--
            ``(1) In general.--Each local educational agency 
        plan shall be filed according to a schedule established 
        by the State educational agency.
            ``(2) Approval.--The State educational agency shall 
        approve a local educational agency's plan only if the 
        State educational agency determines that the local 
        educational agency's plan--
                    ``(A) enables schools served under this 
                part to substantially help children served 
                under this part meet the academic standards 
                expected of all children described in section 
                1111(b)(1); and
                    ``(B) meets the requirements of this 
                section.
            ``(3) Review.--The State educational agency shall 
        review the local educational agency's plan to determine 
        if such agencies activities are in accordance with 
        sections 1118 and 1119.
    ``(f) Program Responsibility.--The local educational agency 
plan shall reflect the shared responsibility of schools, 
teachers, and the local educational agency in making decisions 
regarding activities under sections 1114 and 1115.
    ``(g) Parental Notification.--
            ``(1) In general.--
                    ``(A) Notice.--Each local educational 
                agency using funds under this part to provide a 
                language instruction educational program as 
                determined in part C of title III shall, not 
                later than 30 days after the beginning of the 
                school year, inform a parent or parents of a 
                limited English proficient child identified for 
                participation or participating in, such a 
                program of--
                    ``(i) the reasons for the identification of 
                their child as limited English proficient and 
                in need of placement in a language instruction 
                educational program;
                    ``(ii) the child's level of English 
                proficiency, how such level was assessed, and 
                the status of the child's academic achievement;
                    ``(iii) the methods of instruction used in 
                the program in which their child is, or will be 
                participating, and the methods of instruction 
                used in other available programs, including how 
                such programs differ in content, instructional 
                goals, and the use of English and a native 
                language in instruction;
                    ``(iv) how the program in which their child 
                is, or will be participating, will meet the 
                educational strengths and needs of their child;
                    ``(v) how such program will specifically 
                help their child learn English, and meet age-
                appropriate academic achievement standards for 
                grade promotion and graduation;
                    ``(vi) the specific exit requirements for 
                the program, including the expected rate of 
                transition from such program into classrooms 
                that are not tailored for limited English 
                proficient children, and the expected rate of 
                graduation from secondary school for such 
                program if funds under this part are used for 
                children in secondary schools;
                            ``(vii) in the case of a child with 
                        a disability, how such program meets 
                        the objectives of the individualized 
                        education program of the child;
                            ``(viii) information pertaining to 
                        parental rights that includes written 
                        guidance--
                                    ``(I) detailing--
                                            ``(aa) the right 
                                        that parents have to 
                                        have their child 
                                        immediately removed 
                                        from such program upon 
                                        their request; and
                                            ``(bb) the options 
                                        that parents have to 
                                        decline to enroll their 
                                        child in such program 
                                        or to choose another 
                                        program or method of 
                                        instruction, if 
                                        available; and
                                    ``(II) assisting parents in 
                                selecting among various 
                                programs and methods of 
                                instruction, if more than one 
                                program or method is offered by 
                                the eligible entity.
                    ``(B) Separate notification.--In addition 
                to providing the information required to be 
                provided under paragraph (1), each eligible 
                entity that is using funds provided under this 
                part to provide a language instruction 
                educational program, and that has failed to 
                make progress on the annual measurable 
                achievement objectives described in section 
                3122 for any fiscal year for which part A is in 
                effect, shall separately inform a parent or the 
                parents of a child identified for participation 
                in such program, or participating in such 
                program, of such failure not later than 30 days 
                after such failure occurs.
            ``(2) Notice.--The notice and information provided 
        in paragraph (1) to a parent or parents of a child 
        identified for participation in a language instruction 
        educational program for limited English proficient 
        children shall be in an understandable and uniform 
        format and, to the extent practicable, provided in a 
        language that the parents can understand.
            ``(3) Special rule applicable during the school 
        year.--For those children who have not been identified 
        as limited English proficient prior to the beginning of 
        the school year the local educational agency shall 
        notify parents within the first 2 weeks of the child 
        being placed in a language instruction educational 
        program consistent with paragraphs (1) and (2).
            ``(4) Parental participation.--Each local 
        educational agency receiving funds under this part 
        shall implement an effective means of outreach to 
        parents of limited English proficient students to 
        inform the parents regarding how the parents can be 
        involved in the education of their children, and be 
        active participants in assisting their children to 
        attain English proficiency, achieve at high levels in 
        core academic subjects, and meet challenging State 
        academic achievement standards and State academic 
        content standards expected of all students, including 
        holding, and sending notice of opportunities for, 
        regular meetings for the purpose of formulating and 
        responding to recommendations from parents of students 
        assisted under this part.
            ``(5) Basis for admission or exclusion.--A student 
        shall not be admitted to, or excluded from, any 
        federally assisted education program on the basis of a 
        surname or language-minority status.

``SEC. 1113. ELIGIBLE SCHOOL ATTENDANCE AREAS.

    ``(a) Determination.--
            ``(1) In general.--A local educational agency shall 
        use funds received under this part only in eligible 
        school attendance areas.
            ``(2) Eligible school attendance areas.--For the 
        purposes of this part--
                    ``(A) the term `school attendance area' 
                means, in relation to a particular school, the 
                geographical area in which the children who are 
                normally served by that school reside; and
                    ``(B) the term `eligible school attendance 
                area' means a school attendance area in which 
                the percentage of children from low-income 
                families is at least as high as the percentage 
                of children from low-income families served by 
                the local educational agency as a whole.
            ``(3) Ranking order.--If funds allocated in 
        accordance with subsection (c) are insufficient to 
        serve all eligible school attendance areas, a local 
        educational agency shall--
                    ``(A) annually rank, without regard to 
                grade spans, such agency's eligible school 
                attendance areas in which the concentration of 
                children from low-income families exceeds 75 
                percent from highest to lowest according to the 
                percentage of children from low-income 
                families; and
                    ``(B) serve such eligible school attendance 
                areas in rank order.
            ``(4) Remaining funds.--If funds remain after 
        serving all eligible school attendance areas under 
        paragraph (3), a local educational agency shall--
                    ``(A) annually rank such agency's remaining 
                eligible school attendance areas from highest 
                to lowest either by grade span or for the 
                entire local educational agency according to 
                the percentage of children from low-income 
                families; and
                    ``(B) serve such eligible school attendance 
                areas in rank order either within each grade-
                span grouping or within the local educational 
                agency as a whole.
            ``(5) Measures.--The local educational agency shall 
        use the same measure of poverty, which measure shall be 
        the number of children ages 5 through 17 in poverty 
        counted in the most recent census data approved by the 
        Secretary, the number of children eligible for free and 
        reduced priced lunches under the Richard B. Russell 
        National School Lunch Act, the number of children in 
        families receiving assistance under the State program 
        funded under part A of title IV of the Social Security 
        Act, or the number of children eligible to receive 
        medical assistance under the Medicaid program, or a 
        composite of such indicators, with respect to all 
        school attendance areas in the local educational 
        agency--
                    ``(A) to identify eligible school 
                attendance areas;
                    ``(B) to determine the ranking of each 
                area; and
                    ``(C) to determine allocations under 
                subsection (c).
            ``(6) Exception.--This subsection shall not apply 
        to a local educational agency with a total enrollment 
        of less than 1,000 children.
            ``(7) Waiver for desegregation plans.--The 
        Secretary may approve a local educational agency's 
        written request for a waiver of the requirements of 
        subsections (a) and (c), and permit such agency to 
        treat as eligible, and serve, any school that children 
        attend with a State-ordered, court-ordered school 
        desegregation plan or a plan that continues to be 
        implemented in accordance with a State-ordered or 
        court-ordered desegregation plan, if--
                    ``(A) the number of economically 
                disadvantaged children enrolled in the school 
                is at least 25 percent of the school's total 
                enrollment; and
                    ``(B) the Secretary determines on the basis 
                of a written request from such agency and in 
                accordance with such criteria as the Secretary 
                establishes, that approval of that request 
                would further the purposes of this part.
    ``(b) Local Educational Agency Discretion.--
            ``(1) In general.--Notwithstanding subsection 
        (a)(2), a local educational agency may--
                    ``(A) designate as eligible any school 
                attendance area or school in which at least 35 
                percent of the children are from low-income 
                families;
                    ``(B) use funds received under this part in 
                a school that is not in an eligible school 
                attendance area, if the percentage of children 
                from low-income families enrolled in the school 
                is equal to or greater than the percentage of 
                such children in a participating school 
                attendance area of such agency;
                    ``(C) designate and serve a school 
                attendance area or school that is not eligible 
                under this section, but that was eligible and 
                that was served in the preceding fiscal year, 
                but only for 1 additional fiscal year; and
                    ``(D) elect not to serve an eligible school 
                attendance area or eligible school that has a 
                higher percentage of children from low-income 
                families if--
                            ``(i) the school meets the 
                        comparability requirements of section 
                        1120A(c);
                            ``(ii) the school is receiving 
                        supplemental funds from other State or 
                        local sources that are spent according 
                        to the requirements of section 1114 or 
                        1115; and
                            ``(iii) the funds expended from 
                        such other sources equal or exceed the 
                        amount that would be provided under 
                        this part.
            ``(2) Special rule.--Notwithstanding paragraph 
        (1)(D), the number of children attending private 
        elementary schools and secondary schools who are to 
        receive services, and the assistance such children are 
        to receive under this part, shall be determined without 
        regard to whether the public school attendance area in 
        which such children reside is assisted under 
        subparagraph (A).
    ``(c) Allocations.--
            ``(1) In general.--A local educational agency shall 
        allocate funds received under this part to eligible 
        school attendance areas or eligible schools, identified 
        under subsections (a) and (b), in rank order, on the 
        basis of the total number of children from low-income 
        families in each area or school.
            ``(2) Special rule.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the per-pupil amount of funds 
                allocated to each school attendance area or 
                school under paragraph (1) shall be at least 
                125 percent of the per-pupil amount of funds a 
                local educational agency received for that year 
                under the poverty criteria described by the 
                local educational agency in the plan submitted 
                under section 1112, except that this paragraph 
                shall not apply to a local educational agency 
                that only serves schools in which the 
                percentage of such children is 35 percent or 
                greater.
                    ``(B) Exception.--A local educational 
                agency may reduce the amount of funds allocated 
                under subparagraph (A) for a school attendance 
                area or school by the amount of any 
                supplemental State and local funds expended in 
                that school attendance area or school for 
                programs that meet the requirements of section 
                1114 or 1115.
            ``(3) Reservation.--A local educational agency 
        shall reserve such funds as are necessary under this 
        part to provide services comparable to those provided 
        to children in schools funded under this part to 
        serve--
                    ``(A) homeless children who do not attend 
                participating schools, including providing 
                educationally related support services to 
                children in shelters and other locations where 
                children may live;
                    ``(B) children in local institutions for 
                neglected children; and
                    ``(C) if appropriate, children in local 
                institutions for delinquent children, and 
                neglected or delinquent children in community 
                day school programs.
            ``(4) Financial incentives and rewards 
        reservation.--A local educational agency may reserve 
        such funds as are necessary from those funds received 
        by the local educational agency under title II, and not 
        more than 5 percent of those funds received by the 
        local educational agency under subpart 2, to provide 
        financial incentives and rewards to teachers who serve 
        in schools eligible under this section and identified 
        for school improvement, corrective action, and 
        restructuring under section 1116(b) for the purpose of 
        attracting and retaining qualified and effective 
        teachers.

``SEC. 1114. SCHOOLWIDE PROGRAMS.

    ``(a) Use of Funds for Schoolwide Programs.--
            ``(1) In general.--A local educational agency may 
        consolidate and use funds under this part, together 
        with other Federal, State, and local funds, in order to 
        upgrade the entire educational program of a school that 
        serves an eligible school attendance area in which not 
        less than 40 percent of the children are from low-
        income families, or not less than 40 percent of the 
        children enrolled in the school are from such families.
            ``(2) Identification of students not required.--
                    ``(A) In general.--No school participating 
                in a schoolwide program shall be required--
                            ``(i) to identify particular 
                        children under this part as eligible to 
                        participate in a schoolwide program; or
                            ``(ii) to provide services to such 
                        children that are supplementary, as 
                        otherwise required by section 1120A(b).
                    ``(B) Supplemental funds.--A school 
                participating in a schoolwide program shall use 
                funds available to carry out this section only 
                to supplement the amount of funds that would, 
                in the absence of funds under this part, be 
                made available from non-Federal sources for the 
                school, including funds needed to provide 
                services that are required by law for children 
                with disabilities and children with limited 
                English proficiency.
            ``(3) Exemption from statutory and regulatory 
        requirements.--
                    ``(A) Exemption.--Except as provided in 
                subsection (b), the Secretary may, through 
                publication of a notice in the Federal 
                Register, exempt schoolwide programs under this 
                section from statutory or regulatory provisions 
                of any other noncompetitive formula grant 
                program administered by the Secretary (other 
                than formula or discretionary grant programs 
                under the Individuals with Disabilities 
                Education Act, except as provided in section 
                613(a)(2)(D) of such Act), or any discretionary 
                grant program administered by the Secretary, to 
                support schoolwide programs if the intent and 
                purposes of such other programs are met.
                    ``(B) Requirements.--A school that chooses 
                to use funds from such other programs shall not 
                be relieved of the requirements relating to 
                health, safety, civil rights, student and 
                parental participation and involvement, 
                services to private school children, 
                maintenance of effort, comparability of 
                services, uses of Federal funds to supplement, 
                not supplant non-Federal funds, or the 
                distribution of funds to State educational 
                agencies or local educational agencies that 
                apply to the receipt of funds from such 
                programs.
                    ``(C) Records.--A school that consolidates 
                and uses funds from different Federal programs 
                under this section shall not be required to 
                maintain separate fiscal accounting records, by 
                program, that identify the specific activities 
                supported by those particular funds as long as 
                the school maintains records that demonstrate 
                that the schoolwide program, considered as a 
                whole, addresses the intent and purposes of 
                each of the Federal programs that were 
                consolidated to support the schoolwide program.
            ``(4) Professional development.--Each school 
        receiving funds under this part for any fiscal year 
        shall devote sufficient resources to effectively carry 
        out the activities described in subsection (b)(1)(D) in 
        accordance with section 1119 for such fiscal year, 
        except that a school may enter into a consortium with 
        another school to carry out such activities.
    ``(b) Components of a Schoolwide Program.--
            ``(1) In general.--A schoolwide program shall 
        include the following components:
                    ``(A) A comprehensive needs assessment of 
                the entire school (including taking into 
                account the needs of migratory children as 
                defined in section 1309(2)) that is based on 
                information which includes the achievement of 
                children in relation to the State academic 
                content standards and the State student 
                academic achievement standards described in 
                section 1111(b)(1).
                    ``(B) Schoolwide reform strategies that--
                            ``(i) provide opportunities for all 
                        children to meet the State's proficient 
                        and advanced levels of student academic 
                        achievement described in section 
                        1111(b)(1)(D);
                            ``(ii) use effective methods and 
                        instructional strategies that are based 
                        on scientifically based research that--
                                    ``(I) strengthen the core 
                                academic program in the school;
                                    ``(II) increase the amount 
                                and quality of learning time, 
                                such as providing an extended 
                                school year and before- and 
                                after-school and summer 
                                programs and opportunities, and 
                                help provide an enriched and 
                                accelerated curriculum; and
                                    ``(III) include strategies 
                                for meeting the educational 
                                needs of historically 
                                underserved populations;
                            ``(iii)(I) include strategies to 
                        address the needs of all children in 
                        the school, but particularly the needs 
                        of low-achieving children and those at 
                        risk of not meeting the State student 
                        academic achievement standards who are 
                        members of the target population of any 
                        program that is included in the 
                        schoolwide program, which may include--
                                    ``(aa) counseling, pupil 
                                services, and mentoring 
                                services;
                                    ``(bb) college and career 
                                awareness and preparation, such 
                                as college and career guidance, 
                                personal finance education, and 
                                innovative teaching methods, 
                                which may include applied 
                                learning and team-teaching 
                                strategies; and
                                    ``(cc) the integration of 
                                vocational and technical 
                                education programs; and
                            ``(II) address how the school will 
                        determine if such needs have been met; 
                        and
                            ``(iv) are consistent with, and are 
                        designed to implement, the State and 
                        local improvement plans, if any.
                    ``(C) Instruction by highly qualified 
                teachers.
                    ``(D) In accordance with section 1119 and 
                subsection (a)(4), high-quality and ongoing 
                professional development for teachers, 
                principals, and paraprofessionals and, if 
                appropriate, pupil services personnel, parents, 
                and other staff to enable all children in the 
                school to meet the State's student academic 
                achievement standards.
                    ``(E) Strategies to attract high-quality 
                highly qualified teachers to high-need schools.
                    ``(F) Strategies to increase parental 
                involvement in accordance with section 1118, 
                such as family literary services.
                    ``(G) Plans for assisting preschool 
                children in the transition from early childhood 
                programs, such as Head Start, Even Start, Early 
                Reading First, or a State-run preschool 
                program, to local elementary school programs.
                    ``(H) Measures to include teachers in the 
                decisions regarding the use of academic 
                assessments described in section 1111(b)(3) in 
                order to provide information on, and to 
                improve, the achievement of individual students 
                and the overall instructional program.
                    ``(I) Activities to ensure that students 
                who experience difficulty mastering the 
                proficient or advanced levels of academic 
                achievement standards required by section 
                1111(b)(1) shall be provided with effective, 
                timely additional assistance which shall 
                include measures to ensure that students' 
                difficulties are identified on a timely basis 
                and to provide sufficient information on which 
                to base effective assistance.
                    ``(J) Coordination and integration of 
                Federal, State, and local services and 
                programs, including programs supported under 
                this Act, violence prevention programs, 
                nutrition programs, housing programs, Head 
                Start, adult education, vocational and 
                technical education, and job training.
            ``(2) Plan.--
                    ``(A) In general.--Any eligible school that 
                desires to operate a schoolwide program shall 
                first develop (or amend a plan for such a 
                program that was in existence on the day before 
                the date of enactment of the No Child Left 
                Behind Act of 2001), in consultation with the 
                local educational agency and its school support 
                team or other technical assistance provider 
                under section 1117, a comprehensive plan for 
                reforming the total instructional program in 
                the school that--
                            ``(i) describes how the school will 
                        implement the components described in 
                        paragraph (1);
                            ``(ii) describes how the school 
                        will use resources under this part and 
                        from other sources to implement those 
                        components;
                            ``(iii) includes a list of State 
                        educational agency and local 
                        educational agency programs and other 
                        Federal programs under subsection 
                        (a)(3) that will be consolidated in the 
                        schoolwide program; and
                            ``(iv) describes how the school 
                        will provide individual student 
                        academic assessment results in a 
                        language the parents can understand, 
                        including an interpretation of those 
                        results, to the parents of a child who 
                        participates in the academic 
                        assessments required by section 
                        1111(b)(3).
                    ``(B) Plan development.--The comprehensive 
                plan shall be--
                            ``(i) developed during a one-year 
                        period, unless--
                                    ``(I) the local educational 
                                agency, after considering the 
                                recommendation of the technical 
                                assistance providers under 
                                section 1117, determines that 
                                less time is needed to develop 
                                and implement the schoolwide 
                                program; or
                                    ``(II) the school is 
                                operating a schoolwide program 
                                on the day preceding the date 
                                of enactment of the No Child 
                                Left Behind Act of 2001, in 
                                which case such school may 
                                continue to operate such 
                                program, but shall develop 
                                amendments to its existing plan 
                                during the first year of 
                                assistance after that date to 
                                reflect the provisions of this 
                                section;
                            ``(ii) developed with the 
                        involvement of parents and other 
                        members of the community to be served 
                        and individuals who will carry out such 
                        plan, including teachers, principals, 
                        and administrators (including 
                        administrators of programs described in 
                        other parts of this title), and, if 
                        appropriate, pupil services personnel, 
                        technical assistance providers, school 
                        staff, and, if the plan relates to a 
                        secondary school, students from such 
                        school;
                            ``(iii) in effect for the duration 
                        of the school's participation under 
                        this part and reviewed and revised, as 
                        necessary, by the school;
                            ``(iv) available to the local 
                        educational agency, parents, and the 
                        public, and the information contained 
                        in such plan shall be in an 
                        understandable and uniform format and, 
                        to the extent practicable, provided in 
                        a language that the parents can 
                        understand; and
                            ``(v) if appropriate, developed in 
                        coordination with programs under 
                        Reading First, Early Reading First, 
                        Even Start, Carl D. Perkins Vocational 
                        and Technical Education Act of 1998, 
                        and the Head Start Act.
    ``(c) Prekindergarten Program.--A school that is eligible 
for a schoolwide program under this section may use funds made 
available under this part to establish or enhance 
prekindergarten programs for children below the age of 6, such 
as Even Start programs or Early Reading First programs.

``SEC. 1115. TARGETED ASSISTANCE SCHOOLS.

    ``(a) In General.--In all schools selected to receive funds 
under section 1113(c) that are ineligible for a schoolwide 
program under section 1114, or that choose not to operate such 
a schoolwide program, a local educational agency serving such 
school may use funds received under this part only for programs 
that provide services to eligible children under subsection (b) 
identified as having the greatest need for special assistance.
    ``(b) Eligible Children.--
            ``(1) Eligible population.--
                    ``(A) In general.--The eligible population 
                for services under this section is--
                            ``(i) children not older than age 
                        21 who are entitled to a free public 
                        education through grade 12; and
                            ``(ii) children who are not yet at 
                        a grade level at which the local 
                        educational agency provides a free 
                        public education.
                    ``(B) Eligible children from eligible 
                population.--From the population described in 
                subparagraph (A), eligible children are 
                children identified by the school as failing, 
                or most at risk of failing, to meet the State's 
                challenging student academic achievement 
                standards on the basis of multiple, 
                educationally related, objective criteria 
                established by the local educational agency and 
                supplemented by the school, except that 
                children from preschool through grade 2 shall 
                be selected solely on the basis of such 
                criteria as teacher judgment, interviews with 
                parents, and developmentally appropriate 
                measures.
            ``(2) Children included.--
                    ``(A) In general.--Children who are 
                economically disadvantaged, children with 
                disabilities, migrant children or limited 
                English proficient children, are eligible for 
                services under this part on the same basis as 
                other children selected to receive services 
                under this part.
                    ``(B) Head start, even start, or early 
                reading first children.--A child who, at any 
                time in the 2 years preceding the year for 
                which the determination is made, participated 
                in a Head Start, Even Start, or Early Reading 
                First program, or in preschool services under 
                this title, is eligible for services under this 
                part.
                    ``(C) Part c children.--A child who, at any 
                time in the 2 years preceding the year for 
                which the determination is made, received 
                services under part C is eligible for services 
                under this part.
                    ``(D) Neglected or delinquent children.--A 
                child in a local institution for neglected or 
                delinquent children and youth or attending a 
                community day program for such children is 
                eligible for services under this part.
                    ``(E) Homeless children.--A child who is 
                homeless and attending any school served by the 
                local educational agency is eligible for 
                services under this part.
            ``(3) Special rule.--Funds received under this part 
        may not be used to provide services that are otherwise 
        required by law to be made available to children 
        described in paragraph (2) but may be used to 
        coordinate or supplement such services.
    ``(c) Components of a Targeted Assistance School Program.--
            ``(1) In general.--To assist targeted assistance 
        schools and local educational agencies to meet their 
        responsibility to provide for all their students served 
        under this part the opportunity to meet the State's 
        challenging student academic achievement standards in 
        subjects as determined by the State, each targeted 
        assistance program under this section shall--
                    ``(A) use such program's resources under 
                this part to help participating children meet 
                such State's challenging student academic 
                achievement standards expected for all 
                children;
                    ``(B) ensure that planning for students 
                served under this part is incorporated into 
                existing school planning;
                    ``(C) use effective methods and 
                instructional strategies that are based on 
                scientifically based research that strengthens 
                the core academic program of the school and 
                that--
                            ``(i) give primary consideration to 
                        providing extended learning time, such 
                        as an extended school year, before- and 
                        after-school, and summer programs and 
                        opportunities;
                            ``(ii) help provide an accelerated, 
                        high-quality curriculum, including 
                        applied learning; and
                            ``(iii) minimize removing children 
                        from the regular classroom during 
                        regular school hours for instruction 
                        provided under this part;
                    ``(D) coordinate with and support the 
                regular education program, which may include 
                services to assist preschool children in the 
                transition from early childhood programs such 
                as Head Start, Even Start, Early Reading First 
                or State-run preschool programs to elementary 
                school programs;
                    ``(E) provide instruction by highly 
                qualified teachers;
                    ``(F) in accordance with subsection (e)(3) 
                and section 1119, provide opportunities for 
                professional development with resources 
                provided under this part, and, to the extent 
                practicable, from other sources, for teachers, 
                principals, and paraprofessionals, including, 
                if appropriate, pupil services personnel, 
                parents, and other staff, who work with 
                participating children in programs under this 
                section or in the regular education program;
                    ``(G) provide strategies to increase 
                parental involvement in accordance with section 
                1118, such as family literacy services; and
                    ``(H) coordinate and integrate Federal, 
                State, and local services and programs, 
                including programs supported under this Act, 
                violence prevention programs, nutrition 
                programs, housing programs, Head Start, adult 
                education, vocational and technical education, 
                and job training.
            ``(2) Requirements.--Each school conducting a 
        program under this section shall assist participating 
        children selected in accordance with subsection (b) to 
        meet the State's proficient and advanced levels of 
        achievement by--
                    ``(A) the coordinating of resources 
                provided under this part with other resources; 
                and
                    ``(B) reviewing, on an ongoing basis, the 
                progress of participating children and revising 
                the targeted assistance program, if necessary, 
                to provide additional assistance to enable such 
                children to meet the State's challenging 
                student academic achievement standards, such as 
                an extended school year, before- and after-
                school, and summer programs and opportunities, 
                training for teachers regarding how to identify 
                students who need additional assistance, and 
                training for teachers regarding how to 
                implement student academic achievement 
                standards in the classroom.
    ``(d) Integration of Professional Development.--To promote 
the integration of staff supported with funds under this part 
into the regular school program and overall school planning and 
improvement efforts, public school personnel who are paid with 
funds received under this part may--
            ``(1) participate in general professional 
        development and school planning activities; and
            ``(2) assume limited duties that are assigned to 
        similar personnel who are not so paid, including duties 
        beyond classroom instruction or that do not benefit 
        participating children, so long as the amount of time 
        spent on such duties is the same proportion of total 
        work time as prevails with respect to similar personnel 
        at the same school.
    ``(e) Special Rules.--
            ``(1) Simultaneous service.--Nothing in this 
        section shall be construed to prohibit a school from 
        serving students under this section simultaneously with 
        students with similar educational needs, in the same 
        educational settings where appropriate.
            ``(2) Comprehensive services.--If--
                    ``(A) health, nutrition, and other social 
                services are not otherwise available to 
                eligible children in a targeted assistance 
                school and such school, if appropriate, has 
                engaged in a comprehensive needs assessment and 
                established a collaborative partnership with 
                local service providers; and
                    ``(B) funds are not reasonably available 
                from other public or private sources to provide 
                such services, then a portion of the funds 
                provided under this part may be used as a last 
                resort to provide such services, including--
                            ``(i) the provision of basic 
                        medical equipment, such as eyeglasses 
                        and hearing aids;
                            ``(ii) compensation of a 
                        coordinator; and
                            ``(iii) professional development 
                        necessary to assist teachers, pupil 
                        services personnel, other staff, and 
                        parents in identifying and meeting the 
                        comprehensive needs of eligible 
                        children.
            ``(3) Professional development.--Each school 
        receiving funds under this part for any fiscal year 
        shall devote sufficient resources to carry out 
        effectively the professional development activities 
        described in subparagraph (F) of subsection (c)(1) in 
        accordance with section 1119 for such fiscal year, and 
        a school may enter into a consortium with another 
        school to carry out such activities.

``SEC. 1116. ACADEMIC ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND 
                    SCHOOL IMPROVEMENT.

    ``(a) Local Review.--
            ``(1) In general.--Each local educational agency 
        receiving funds under this part shall--
                    ``(A) use the State academic assessments 
                and other indicators described in the State 
                plan to review annually the progress of each 
                school served under this part to determine 
                whether the school is making adequate yearly 
                progress as defined in section 1111(b)(2);
                    ``(B) at the local educational agency's 
                discretion, use any academic assessments or any 
                other academic indicators described in the 
                local educational agency's plan under section 
                1112(b)(1)(A) and (B) to review annually the 
                progress of each school served under this part 
                to determine whether the school is making 
                adequate yearly progress as defined in section 
                1111(b)(2), except that the local educational 
                agency may not use such indicators (other than 
                as provided for in section 1111(b)(2)(I)) if 
                the indicators reduce the number or change the 
                schools that would otherwise be subject to 
                school improvement, corrective action, or 
                restructuring under section 1116 if such 
                additional indicators were not used, but may 
                identify additional schools for school 
                improvement or in need of corrective action or 
                restructuring;
                    ``(C) publicize and disseminate the results 
                of the local annual review described in 
                paragraph (1) to parents, teachers, principals, 
                schools, and the community so that the 
                teachers, principals, other staff, and schools 
                can continually refine, in an instructionally 
                useful manner, the program of instruction to 
                help all children served under this part meet 
                the challenging State student academic 
                achievement standards established under section 
                1111(b)(1); and
                    ``(D) review the effectiveness of the 
                actions and activities the schools are carrying 
                out under this part with respect to parental 
                involvement, professional development, and 
                other activities assisted under this part.
            ``(2) Available results.--The State educational 
        agency shall ensure that the results of State academic 
        assessments administered in that school year are 
        available to the local educational agency before the 
        beginning of the next school year.
    ``(b) School Improvement.--
            ``(1) General requirements.--
                    ``(A) Identification.--Subject to 
                subparagraph (C), a local educational agency 
                shall identify for school improvement any 
                elementary school or secondary school served 
                under this part that fails, for 2 consecutive 
                years, to make adequate yearly progress as 
                defined in the State's plan under section 
                1111(b)(2).
                    ``(B) Deadline.--The identification 
                described in subparagraph (A) shall take place 
                before the beginning of the school year 
                following such failure to make adequate yearly 
                progress.
                    ``(C) Application.--Subparagraph (A) shall 
                not apply to a school if almost every student 
                in each group specified in section 
                1111(b)(2)(C)(v) enrolled in such school is 
                meeting or exceeding the State's proficient 
                level of academic achievement.
                    ``(D) Targeted assistance schools.--To 
                determine if an elementary school or a 
                secondary school that is conducting a targeted 
                assistance program under section 1115 should be 
                identified for school improvement, corrective 
                action, or restructuring under this section, a 
                local educational agency may choose to review 
                the progress of only the students in the school 
                who are served, or are eligible for services, 
                under this part.
                    ``(E) Public school choice.--
                            ``(i) In general.--In the case of a 
                        school identified for school 
                        improvement under this paragraph, the 
                        local educational agency shall, not 
                        later than the first day of the school 
                        year following such identification, 
                        provide all students enrolled in the 
                        school with the option to transfer to 
                        another public school served by the 
                        local educational agency, which may 
                        include a public charter school, that 
                        has not been identified for school 
                        improvement under this paragraph, 
                        unless such an option is prohibited by 
                        State law.
                            ``(ii) Rule.--In providing students 
                        the option to transfer to another 
                        public school, the local educational 
                        agency shall give priority to the 
                        lowest achieving children from low-
                        income families, as determined by the 
                        local educational agency for purposes 
                        of allocating funds to schools under 
                        section 1113(c)(1).
                    ``(F) Transfer.--Students who use the 
                option to transfer under subparagraph (E) and 
                paragraph (5)(A), (7)(C)(i), or (8)(A)(i) or 
                subsection (c)(10)(C)(vii) shall be enrolled in 
                classes and other activities in the public 
                school to which the students transfer in the 
                same manner as all other children at the public 
                school.
            ``(2) Opportunity to review and present evidence; 
        time limit.--
                    ``(A) Identification.--Before identifying 
                an elementary school or a secondary school for 
                school improvement under paragraphs (1) or 
                (5)(A), for corrective action under paragraph 
                (7), or for restructuring under paragraph (8), 
                the local educational agency shall provide the 
                school with an opportunity to review the 
                school-level data, including academic 
                assessment data, on which the proposed 
                identification is based.
                    ``(B) Evidence.--If the principal of a 
                school proposed for identification under 
                paragraph (1), (5)(A), (7), or (8) believes, or 
                a majority of the parents of the students 
                enrolled in such school believe, that the 
                proposed identification is in error for 
                statistical or other substantive reasons, the 
                principal may provide supporting evidence to 
                the local educational agency, which shall 
                consider that evidence before making a final 
                determination.
                    ``(C) Final determination.--Not later than 
                30 days after a local educational agency 
                provides the school with the opportunity to 
                review such school-level data, the local 
                educational agency shall make public a final 
                determination on the status of the school with 
                respect to the identification.
            ``(3) School plan.--
                    ``(A) Revised plan.--After the resolution 
                of a review under paragraph (2), each school 
                identified under paragraph (1) for school 
                improvement shall, not later than 3 months 
                after being so identified, develop or revise a 
                school plan, in consultation with parents, 
                school staff, the local educational agency 
                serving the school, and outside experts, for 
                approval by such local educational agency. The 
                school plan shall cover a 2-year period and--
                            ``(i) incorporate strategies based 
                        on scientifically based research that 
                        will strengthen the core academic 
                        subjects in the school and address the 
                        specific academic issues that caused 
                        the school to be identified for school 
                        improvement, and may include a strategy 
                        for the implementation of a 
                        comprehensive school reform model that 
                        includes each of the components 
                        described in part F;
                            ``(ii) adopt policies and practices 
                        concerning the school's core academic 
                        subjects that have the greatest 
                        likelihood of ensuring that all groups 
                        of students specified in section 
                        1111(b)(2)(C)(v) and enrolled in the 
                        school will meet the State's proficient 
                        level of achievement on the State 
                        academic assessment described in 
                        section 1111(b)(3) not later than 12 
                        years after the end of the 2001-2002 
                        school year;
                            ``(iii) provide an assurance that 
                        the school will spend not less than 10 
                        percent of the funds made available to 
                        the school under section 1113 for each 
                        fiscal year that the school is in 
                        school improvement status, for the 
                        purpose of providing to the school's 
                        teachers and principal high-quality 
                        professional development that--
                                    ``(I) directly addresses 
                                the academic achievement 
                                problem that caused the school 
                                to be identified for school 
                                improvement;
                                    ``(II) meets the 
                                requirements for professional 
                                development activities under 
                                section 1119; and
                                    ``(III) is provided in a 
                                manner that affords increased 
                                opportunity for participating 
                                in that professional 
                                development;
                            ``(iv) specify how the funds 
                        described in clause (iii) will be used 
                        to remove the school from school 
                        improvement status;
                            ``(v) establish specific annual, 
                        measurable objectives for continuous 
                        and substantial progress by each group 
                        of students specified in section 
                        1111(b)(2)(C)(v) and enrolled in the 
                        school that will ensure that all such 
                        groups of students will, in accordance 
                        with adequate yearly progress as 
                        defined in section 1111(b)(2), meet the 
                        State's proficient level of achievement 
                        on the State academic assessment 
                        described in section 1111(b)(3) not 
                        later than 12 years after the end of 
                        the 2001-2002 school year;
                            ``(vi) describe how the school will 
                        provide written notice about the 
                        identification to parents of each 
                        student enrolled in such school, in a 
                        format and, to the extent practicable, 
                        in a language that the parents can 
                        understand;
                            ``(vii) specify the 
                        responsibilities of the school, the 
                        local educational agency, and the State 
                        educational agency serving the school 
                        under the plan, including the technical 
                        assistance to be provided by the local 
                        educational agency under paragraph (4) 
                        and the local educational agency's 
                        responsibilities under section 1120A;
                            ``(viii) include strategies to 
                        promote effective parental involvement 
                        in the school;
                            ``(ix) incorporate, as appropriate, 
                        activities before school, after school, 
                        during the summer, and during any 
                        extension of the school year; and
                            ``(x) incorporate a teacher 
                        mentoring program.
                    ``(B) Conditional approval.--The local 
                educational agency may condition approval of a 
                school plan under this paragraph on--
                            ``(i) inclusion of one or more of 
                        the corrective actions specified in 
                        paragraph (7)(C)(iv); or
                            ``(ii) feedback on the school 
                        improvement plan from parents and 
                        community leaders.
                    ``(C) Plan implementation.--Except as 
                provided in subparagraph (D), a school shall 
                implement the school plan (including a revised 
                plan) expeditiously, but not later than the 
                beginning of the next full school year 
                following the identification under paragraph 
                (1).
                    ``(D) Plan approved during school year.--
                Notwithstanding subparagraph (C), if a plan is 
                not approved prior to the beginning of a school 
                year, such plan shall be implemented 
                immediately upon approval.
                    ``(E) Local educational agency approval.--
                The local educational agency, within 45 days of 
                receiving a school plan, shall--
                            ``(i) establish a peer review 
                        process to assist with review of the 
                        school plan; and
                            ``(ii) promptly review the school 
                        plan, work with the school as 
                        necessary, and approve the school plan 
                        if the plan meets the requirements of 
                        this paragraph.
            ``(4) Technical assistance.--
                    ``(A) In general.--For each school 
                identified for school improvement under 
                paragraph (1), the local educational agency 
                serving the school shall ensure the provision 
                of technical assistance as the school develops 
                and implements the school plan under paragraph 
                (3) throughout the plan's duration.
                    ``(B) Specific assistance.--Such technical 
                assistance--
                            ``(i) shall include assistance in 
                        analyzing data from the assessments 
                        required under section 1111(b)(3), and 
                        other examples of student work, to 
                        identify and address, problems in 
                        instruction and problems, if any, in 
                        implementing the parental involvement 
                        requirements described in section 1118, 
                        the professional development 
                        requirements described in section 1119, 
                        and the responsibilities of the school 
                        and local educational agency under the 
                        school plan, and to identify and 
                        address solutions to such problems;
                            ``(ii) shall include assistance in 
                        identifying and implementing 
                        professional development, instructional 
                        strategies, and methods of instruction 
                        that are based on scientifically based 
                        research and that have proven effective 
                        in addressing the specific 
                        instructional issues that caused the 
                        school to be identified for school 
                        improvement;
                            ``(iii) shall include assistance in 
                        analyzing and revising the school's 
                        budget so that the school's resources 
                        are more effectively allocated to the 
                        activities most likely to increase 
                        student academic achievement and to 
                        remove the school from school 
                        improvement status; and
                            ``(iv) may be provided--
                                    ``(I) by the local 
                                educational agency, through 
                                mechanisms authorized under 
                                section 1117; or
                                    ``(II) by the State 
                                educational agency, an 
                                institution of higher education 
                                (that is in full compliance 
                                with all the reporting 
                                provisions of title II of the 
                                Higher Education Act of 1965), 
                                a private not-for-profit 
                                organization or for-profit 
                                organization, an educational 
                                service agency, or another 
                                entity with experience in 
                                helping schools improve 
                                academic achievement.
                    ``(C) Scientifically based research.--
                Technical assistance provided under this 
                section by a local educational agency or an 
                entity approved by that agency shall be based 
                on scientifically based research.
            ``(5) Failure to make adequate yearly progress 
        after identification.--In the case of any school served 
        under this part that fails to make adequate yearly 
        progress, as defined by the State under section 
        1111(b)(2), by the end of the first full school year 
        after identification under paragraph (1), the local 
        educational agency serving such school--
                    ``(A) shall continue to provide all 
                students enrolled in the school with the option 
                to transfer to another public school served by 
                the local educational agency in accordance with 
                subparagraphs (E) and (F);
                    ``(B) shall make supplemental educational 
                services available consistent with subsection 
                (e)(1); and
                    ``(C) shall continue to provide technical 
                assistance.
            ``(6) Notice to parents.--A local educational 
        agency shall promptly provide to a parent or parents 
        (in an understandable and uniform format and, to the 
        extent practicable, in a language the parents can 
        understand) of each student enrolled in an elementary 
        school or a secondary school identified for school 
        improvement under paragraph (1), for corrective action 
        under paragraph (7), or for restructuring under 
        paragraph (8)--
                    ``(A) an explanation of what the 
                identification means, and how the school 
                compares in terms of academic achievement to 
                other elementary schools or secondary schools 
                served by the local educational agency and the 
                State educational agency involved;
                    ``(B) the reasons for the identification;
                    ``(C) an explanation of what the school 
                identified for school improvement is doing to 
                address the problem of low achievement;
                    ``(D) an explanation of what the local 
                educational agency or State educational agency 
                is doing to help the school address the 
                achievement problem;
                    ``(E) an explanation of how the parents can 
                become involved in addressing the academic 
                issues that caused the school to be identified 
                for school improvement; and
                    ``(F) an explanation of the parents' option 
                to transfer their child to another public 
                school under paragraphs (1)(E), (5)(A), 
                (7)(C)(i), (8)(A)(i), and subsection 
                (c)(10)(C)(vii) (with transportation provided 
                by the agency when required by paragraph (9)) 
                or to obtain supplemental educational services 
                for the child, in accordance with subsection 
                (e).
            ``(7) Corrective action.--
                    ``(A) In general.--In this subsection, the 
                term `corrective action' means action, 
                consistent with State law, that--
                            ``(i) substantially and directly 
                        responds to--
                                    ``(I) the consistent 
                                academic failure of a school 
                                that caused the local 
                                educational agency to take such 
                                action; and
                                    ``(II) any underlying 
                                staffing, curriculum, or other 
                                problems in the school; and
                            ``(ii) is designed to increase 
                        substantially the likelihood that each 
                        group of students described in 
                        1111(b)(2)(C) enrolled in the school 
                        identified for corrective action will 
                        meet or exceed the State's proficient 
                        levels of achievement on the State 
                        academic assessments described in 
                        section 1111(b)(3).
                    ``(B) System.--In order to help students 
                served under this part meet challenging State 
                student academic achievement standards, each 
                local educational agency shall implement a 
                system of corrective action in accordance with 
                subparagraphs (C) through (E).
                    ``(C) Role of local educational agency.--In 
                the case of any school served by a local 
                educational agency under this part that fails 
                to make adequate yearly progress, as defined by 
                the State under section 1111(b)(2), by the end 
                of the second full school year after the 
                identification under paragraph (1), the local 
                educational agency shall--
                            ``(i) continue to provide all 
                        students enrolled in the school with 
                        the option to transfer to another 
                        public school served by the local 
                        educational agency, in accordance with 
                        paragraph (1)(E) and (F);
                            ``(ii) continue to provide 
                        technical assistance consistent with 
                        paragraph (4) while instituting any 
                        corrective action under clause (iv);
                            ``(iii) continue to make 
                        supplemental educational services 
                        available, in accordance with 
                        subsection (e), to children who remain 
                        in the school; and
                            ``(iv) identify the school for 
                        corrective action and take at least one 
                        of the following corrective actions:
                                    ``(I) Replace the school 
                                staff who are relevant to the 
                                failure to make adequate yearly 
                                progress.
                                    ``(II) Institute and fully 
                                implement a new curriculum, 
                                including providing appropriate 
                                professional development for 
                                all relevant staff, that is 
                                based on scientifically based 
                                research and offers substantial 
                                promise of improving 
                                educational achievement for 
                                low-achieving students and 
                                enabling the school to make 
                                adequate yearly progress.
                                    ``(III) Significantly 
                                decrease management authority 
                                at the school level.
                                    ``(IV) Appoint an outside 
                                expert to advise the school on 
                                its progress toward making 
                                adequate yearly progress, based 
                                on its school plan under 
                                paragraph (3).
                                    ``(V) Extend the school 
                                year or school day for the 
                                school.
                                    ``(VI) Restructure the 
                                internal organizational 
                                structure of the school.
                    ``(D) Delay.--Notwithstanding any other 
                provision of this paragraph, the local 
                educational agency may delay, for a period not 
                to exceed 1 year, implementation of the 
                requirements under paragraph (5), corrective 
                action under this paragraph, or restructuring 
                under paragraph (8) if the school makes 
                adequate yearly progress for 1 year or if its 
                failure to make adequate yearly progress is due 
                to exceptional or uncontrollable circumstances, 
                such as a natural disaster or a precipitous and 
                unforeseen decline in the financial resources 
                of the local educational agency or school. No 
                such period shall be taken into account in 
                determining the number of consecutive years of 
                failure to make adequate yearly progress.
                    ``(E) Publication and dissemination.--The 
                local educational agency shall publish and 
                disseminate information regarding any 
                corrective action the local educational agency 
                takes under this paragraph at a school--
                            ``(i) to the public and to the 
                        parents of each student enrolled in the 
                        school subject to corrective action;
                            ``(ii) in an understandable and 
                        uniform format and, to the extent 
                        practicable, provided in a language 
                        that the parents can understand; and
                            ``(iii) through such means as the 
                        Internet, the media, and public 
                        agencies.
            ``(8) Restructuring.--
                    ``(A) Failure to make adequate yearly 
                progress.--If, after 1 full school year of 
                corrective action under paragraph (7), a school 
                subject to such corrective action continues to 
                fail to make adequate yearly progress, then the 
                local educational agency shall--
                            ``(i) continue to provide all 
                        students enrolled in the school with 
                        the option to transfer to another 
                        public school served by the local 
                        educational agency, in accordance with 
                        paragraph (1)(E) and (F);
                            ``(ii) continue to make 
                        supplemental educational services 
                        available, in accordance with 
                        subsection (e), to children who remain 
                        in the school; and
                            ``(iii) prepare a plan and make 
                        necessary arrangements to carry out 
                        subparagraph (B).
                    ``(B) Alternative governance.--Not later 
                than the beginning of the school year following 
                the year in which the local educational agency 
                implements subparagraph (A), the local 
                educational agency shall implement one of the 
                following alternative governance arrangements 
                for the school consistent with State law:
                            ``(i) Reopening the school as a 
                        public charter school.
                            ``(ii) Replacing all or most of the 
                        school staff (which may include the 
                        principal) who are relevant to the 
                        failure to make adequate yearly 
                        progress.
                            ``(iii) Entering into a contract 
                        with an entity, such as a private 
                        management company, with a demonstrated 
                        record of effectiveness, to operate the 
                        public school.
                            ``(iv) Turning the operation of the 
                        school over to the State, if permitted 
                        under State law and agreed to by the 
                        State.
                            ``(v) Any other major restructuring 
                        of the school's governance arrangement 
                        that makes fundamental reforms, such as 
                        significant changes in the school's 
                        staffing and governance, to improve 
                        student academic achievement in the 
                        school and that has substantial promise 
                        of enabling the school to make adequate 
                        yearly progress as defined in the State 
                        plan under section 1111(b)(2). In the 
                        case of a rural local educational 
                        agency with a total of less than 600 
                        students in average daily attendance at 
                        the schools that are served by the 
                        agency and all of whose schools have a 
                        School Locale Code of 7 or 8, as 
                        determined by the Secretary, the 
                        Secretary shall, at such agency's 
                        request, provide technical assistance 
                        to such agency for the purpose of 
                        implementing this clause.
                    ``(C) Prompt notice.--The local educational 
                agency shall--
                            ``(i) provide prompt notice to 
                        teachers and parents whenever 
                        subparagraph (A) or (B) applies; and
                            ``(ii) provide the teachers and 
                        parents with an adequate opportunity 
                        to--
                                    ``(I) comment before taking 
                                any action under those 
                                subparagraphs; and
                                    ``(II) participate in 
                                developing any plan under 
                                subparagraph (A)(iii).
            ``(9) Transportation.--In any case described in 
        paragraph (1)(E) for schools described in paragraphs 
        (1)(A), (5), (7)(C)(i), and (8)(A), and subsection 
        (c)(10)(C)(vii), the local educational agency shall 
        provide, or shall pay for the provision of, 
        transportation for the student to the public school the 
        student attends.
            ``(10) Funds for transportation and supplemental 
        educational services.--
                    ``(A) In general.--Unless a lesser amount 
                is needed to comply with paragraph (9) and to 
                satisfy all requests for supplemental 
                educational services under subsection (e), a 
                local educational agency shall spend an amount 
                equal to 20 percent of its allocation under 
                subpart 2, from which the agency shall spend--
                            ``(i) an amount equal to 5 percent 
                        of its allocation under subpart 2 to 
                        provide, or pay for, transportation 
                        under paragraph (9);
                            ``(ii) an amount equal to 5 percent 
                        of its allocation under subpart 2 to 
                        provide supplemental educational 
                        services under subsection (e); and
                            ``(iii) an amount equal to the 
                        remaining 10 percent of its allocation 
                        under subpart 2 for transportation 
                        under paragraph (9), supplemental 
                        educational services under subsection 
                        (e), or both, as the agency determines.
                    ``(B) Total amount.--The total amount 
                described in subparagraph (A)(ii) is the 
                maximum amount the local educational agency 
                shall be required to spend under this part on 
                supplemental educational services described in 
                subsection (e).
                    ``(C) Insufficient funds.--If the amount of 
                funds described in subparagraph (A)(ii) or 
                (iii) and available to provide services under 
                this subsection is insufficient to provide 
                supplemental educational services to each child 
                whose parents request the services, the local 
                educational agency shall give priority to 
                providing the services to the lowest-achieving 
                children.
                    ``(D) Prohibition.--A local educational 
                agency shall not, as a result of the 
                application of this paragraph, reduce by more 
                than 15 percent the total amount made available 
                under section 1113(c) to a school described in 
                paragraph (7)(C) or (8)(A) of subsection (b).
            ``(11) Cooperative agreement.--In any case 
        described in paragraph (1)(E), (5)(A), (7)(C)(i), or 
        (8)(A)(i), or subsection (c)(10)(C)(vii) if all public 
        schools served by the local educational agency to which 
        a child may transfer are identified for school 
        improvement, corrective action or restructuring, the 
        agency shall, to the extent practicable, establish a 
        cooperative agreement with other local educational 
        agencies in the area for a transfer.
            ``(12) Duration.--If any school identified for 
        school improvement, corrective action, or restructuring 
        makes adequate yearly progress for 2 consecutive school 
        years, the local educational agency shall no longer 
        subject the school to the requirements of school 
        improvement, corrective action, or restructuring or 
        identify the school for school improvement for the 
        succeeding school year.
            ``(13) Special rule.--A local educational agency 
        shall permit a child who transferred to another school 
        under this subsection to remain in that school until 
        the child has completed the highest grade in that 
        school. The obligation of the local educational agency 
        to provide, or to provide for, transportation for the 
        child ends at the end of a school year if the local 
        educational agency determines that the school from 
        which the child transferred is no longer identified for 
        school improvement or subject to corrective action or 
        restructuring.
            ``(14) State educational agency responsibilities.--
        The State educational agency shall--
                    ``(A) make technical assistance under 
                section 1117 available to schools identified 
                for school improvement, corrective action, or 
                restructuring under this subsection consistent 
                with section 1117(a)(2);
                    ``(B) if the State educational agency 
                determines that a local educational agency 
                failed to carry out its responsibilities under 
                this subsection, take such corrective actions 
                as the State educational agency determines to 
                be appropriate and in compliance with State 
                law;
                    ``(C) ensure that academic assessment 
                results under this part are provided to schools 
                before any identification of a school may take 
                place under this subsection; and
                    ``(D) for local educational agencies or 
                schools identified for improvement under this 
                subsection, notify the Secretary of major 
                factors that were brought to the attention of 
                the State educational agency under section 
                1111(b)(9) that have significantly affected 
                student academic achievement.
    ``(c) State Review and Local Educational Agency 
Improvement.--
            ``(1) In general.--A State shall--
                    ``(A) annually review the progress of each 
                local educational agency receiving funds under 
                this part to determine whether schools 
                receiving assistance under this part are making 
                adequate yearly progress as defined in section 
                1111(b)(2) toward meeting the State's student 
                academic achievement standards and to determine 
                if each local educational agency is carrying 
                out its responsibilities under this section and 
                sections 1117, 1118, and 1119; and
                    ``(B) publicize and disseminate to local 
                educational agencies, teachers and other staff, 
                parents, students, and the community the 
                results of the State review, including 
                statistically sound disaggregated results, as 
                required by section 1111(b)(2).
            ``(2) Rewards.--In the case of a local educational 
        agency that, for 2 consecutive years, has exceeded 
        adequate yearly progress as defined in the State plan 
        under section 1111(b)(2), the State may make rewards of 
        the kinds described under section 1117 to the agency.
            ``(3) Identification of local educational agency 
        for improvement.--A State shall identify for 
        improvement any local educational agency that, for 2 
        consecutive years, including the period immediately 
        prior to the date of enactment of the No Child Left 
        Behind Act of 2001, failed to make adequate yearly 
        progress as defined in the State's plan under section 
        1111(b)(2).
            ``(4) Targeted assistance schools.--When reviewing 
        targeted assistance schools served by a local 
        educational agency, a State educational agency may 
        choose to review the progress of only the students in 
        such schools who are served, or are eligible for 
        services, under this part.
            ``(5) Opportunity to review and present evidence.--
                    ``(A) Review.--Before identifying a local 
                educational agency for improvement under 
                paragraph (3) or corrective action under 
                paragraph (10), a State educational agency 
                shall provide the local educational agency with 
                an opportunity to review the data, including 
                academic assessment data, on which the proposed 
                identification is based.
                    ``(B) Evidence.--If the local educational 
                agency believes that the proposed 
                identification is in error for statistical or 
                other substantive reasons, the agency may 
                provide supporting evidence to the State 
                educational agency, which shall consider the 
                evidence before making a final determination 
                not later than 30 days after the State 
                educational agency provides the local 
                educational agency with the opportunity to 
                review such data under subparagraph (A).
            ``(6) Notification to parents.--The State 
        educational agency shall promptly provide to the 
        parents (in a format and, to the extent practicable, in 
        a language the parents can understand) of each student 
        enrolled in a school served by a local educational 
        agency identified for improvement, the results of the 
        review under paragraph (1) and, if the agency is 
        identified for improvement, the reasons for that 
        identification and how parents can participate in 
        upgrading the quality of the local educational agency.
            ``(7) Local educational agency revisions.--
                    ``(A) Plan.--Each local educational agency 
                identified under paragraph (3) shall, not later 
                than 3 months after being so identified, 
                develop or revise a local educational agency 
                plan, in consultation with parents, school 
                staff, and others. Such plan shall--
                            ``(i) incorporate scientifically-
                        based research strategies that 
                        strengthen the core academic program in 
                        schools served by the local educational 
                        agency;
                            ``(ii) identify actions that have 
                        the greatest likelihood of improving 
                        the achievement of participating 
                        children in meeting the State's student 
                        academic achievement standards;
                            ``(iii) address the professional 
                        development needs of the instructional 
                        staff serving the agency by committing 
                        to spend not less than 10 percent of 
                        the funds received by the local 
                        educational agency under subpart 2 for 
                        each fiscal year in which the agency is 
                        identified for improvement for 
                        professional development (including 
                        funds reserved for professional 
                        development under subsection 
                        (b)(3)(A)(iii)), but excluding funds 
                        reserved for professional development 
                        under section 1119;
                            ``(iv) include specific measurable 
                        achievement goals and targets for each 
                        of the groups of students identified in 
                        the disaggregated data pursuant to 
                        section 1111(b)(2)(C)(v), consistent 
                        with adequate yearly progress as 
                        defined under section 1111(b)(2);
                            ``(v) address the fundamental 
                        teaching and learning needs in the 
                        schools of that agency, and the 
                        specific academic problems of low-
                        achieving students, including a 
                        determination of why the local 
                        educational agency's prior plan failed 
                        to bring about increased student 
                        academic achievement;
                            ``(vi) incorporate, as appropriate, 
                        activities before school, after school, 
                        during the summer, and during an 
                        extension of the school year;
                            ``(vii) specify the 
                        responsibilities of the State 
                        educational agency and the local 
                        educational agency under the plan, 
                        including specifying the technical 
                        assistance to be provided by the State 
                        educational agency under paragraph (9) 
                        and the local educational agency's 
                        responsibilities under section 1120A; 
                        and
                            ``(viii) include strategies to 
                        promote effective parental involvement 
                        in the school.
                    ``(B) Implementation.--The local 
                educational agency shall implement the plan 
                (including a revised plan) expeditiously, but 
                not later than the beginning of the next school 
                year after the school year in which the agency 
                was identified for improvement.
            ``(9) State educational agency responsibility.--
                    ``(A) Technical or other assistance.--For 
                each local educational agency identified under 
                paragraph (3), the State educational agency 
                shall provide technical or other assistance if 
                requested, as authorized under section 1117, to 
                better enable the local educational agency to--
                            ``(i) develop and implement the 
                        local educational agency's plan; and
                            ``(ii) work with schools needing 
                        improvement.
                    ``(B) Methods and strategies.--Technical 
                assistance provided under this section by the 
                State educational agency or an entity 
                authorized by such agency shall be supported by 
                effective methods and instructional strategies 
                based on scientifically based research. Such 
                technical assistance shall address problems, if 
                any, in implementing the parental involvement 
                activities described in section 1118 and the 
                professional development activities described 
                in section 1119.
            ``(10) Corrective action.--In order to help 
        students served under this part meet challenging State 
        student academic achievement standards, each State 
        shall implement a system of corrective action in 
        accordance with the following:
                    ``(A) Definition.--As used in this 
                paragraph, the term `corrective action' means 
                action, consistent with State law, that--
                            ``(i) substantially and directly 
                        responds to the consistent academic 
                        failure that caused the State to take 
                        such action and to any underlying 
                        staffing, curricular, or other problems 
                        in the agency; and
                            ``(ii) is designed to meet the goal 
                        of having all students served under 
                        this part achieve at the proficient and 
                        advanced student academic achievement 
                        levels.
                    ``(B) General requirements.--After 
                providing technical assistance under paragraph 
                (9) and subject to subparagraph (E), the 
                State--
                            ``(i) may take corrective action at 
                        any time with respect to a local 
                        educational agency that has been 
                        identified under paragraph (3);
                            ``(ii) shall take corrective action 
                        with respect to any local educational 
                        agency that fails to make adequate 
                        yearly progress, as defined by the 
                        State, by the end of the second full 
                        school year after the identification of 
                        the agency under paragraph (3); and
                            ``(iii) shall continue to provide 
                        technical assistance while instituting 
                        any corrective action under clause (i) 
                        or (ii).
                    ``(C) Certain corrective actions 
                required.--In the case of a local educational 
                agency identified for corrective action, the 
                State educational agency shall take at least 
                one of the following corrective actions:
                            ``(i) Deferring programmatic funds 
                        or reducing administrative funds.
                            ``(ii) Instituting and fully 
                        implementing a new curriculum that is 
                        based on State and local academic 
                        content and achievement standards, 
                        including providing appropriate 
                        professional development based on 
                        scientifically based research for all 
                        relevant staff, that offers substantial 
                        promise of improving educational 
                        achievement for low-achieving students.
                            ``(iii) Replacing the local 
                        educational agency personnel who are 
                        relevant to the failure to make 
                        adequate yearly progress.
                            ``(iv) Removing particular schools 
                        from the jurisdiction of the local 
                        educational agency and establishing 
                        alternative arrangements for public 
                        governance and supervision of such 
                        schools.
                            ``(v) Appointing, through the State 
                        educational agency, a receiver or 
                        trustee to administer the affairs of 
                        the local educational agency in place 
                        of the superintendent and school board.
                            ``(vi) Abolishing or restructuring 
                        the local educational agency.
                            ``(vii) Authorizing students to 
                        transfer from a school operated by the 
                        local educational agency to a higher-
                        performing public school operated by 
                        another local educational agency in 
                        accordance with subsections (b)(1)(E) 
                        and (F), and providing to such students 
                        transportation (or the costs of 
                        transportation) to such schools 
                        consistent with subsection (b)(9), in 
                        conjunction with carrying out not less 
                        than 1 additional action described 
                        under this subparagraph.
                    ``(D) Hearing.--Prior to implementing any 
                corrective action under this paragraph, the 
                State educational agency shall provide notice 
                and a hearing to the affected local educational 
                agency, if State law provides for such notice 
                and hearing. The hearing shall take place not 
                later than 45 days following the decision to 
                implement corrective action.
                    ``(E) Notice to parents.--The State 
                educational agency shall publish, and 
                disseminate to parents and the public, 
                information on any corrective action the State 
                educational agency takes under this paragraph 
                through such means as the Internet, the media, 
                and public agencies.
                    ``(F) Delay.--Notwithstanding subparagraph 
                (B)(ii), a State educational agency may delay, 
                for a period not to exceed 1 year, 
                implementation of corrective action under this 
                paragraph if the local educational agency makes 
                adequate yearly progress for 1 year or its 
                failure to make adequate yearly progress is due 
                to exceptional or uncontrollable circumstances, 
                such as a natural disaster or a precipitous and 
                unforeseen decline in the financial resources 
                of the local educational agency. No such period 
                shall be taken into account in determining the 
                number of consecutive years of failure to make 
                adequate yearly progress.
            ``(11) Special rule.--If a local educational agency 
        makes adequate yearly progress for 2 consecutive school 
        years beginning after the date of identification of the 
        agency under paragraph (3), the State educational 
        agency need no longer subject the local educational 
        agency to corrective action for the succeeding school 
        year.
    ``(d) Construction.--Nothing in this section shall be 
construed to alter or otherwise affect the rights, remedies, 
and procedures afforded school or school district employees 
under Federal, State, or local laws (including applicable 
regulations or court orders) or under the terms of collective 
bargaining agreements, memoranda of understanding, or other 
agreements between such employees and their employers.
    ``(e) Supplemental Educational Services.--
            ``(1) Supplemental educational services.--In the 
        case of any school described in paragraph (5), (7), or 
        (8) of subsection (b), the local educational agency 
        serving such school shall, subject to this subsection, 
        arrange for the provision of supplemental educational 
        services to eligible children in the school from a 
        provider with a demonstrated record of effectiveness, 
        that is selected by the parents and approved for that 
        purpose by the State educational agency in accordance 
        with reasonable criteria, consistent with paragraph 
        (5), that the State educational agency shall adopt.
            ``(2) Local educational agency responsibilities.--
        Each local educational agency subject to this 
        subsection shall--
                    ``(A) provide, at a minimum, annual notice 
                to parents (in an understandable and uniform 
                format and, to the extent practicable, in a 
                language the parents can understand) of--
                            ``(i) the availability of services 
                        under this subsection;
                            ``(ii) the identity of approved 
                        providers of those services that are 
                        within the local educational agency or 
                        whose services are reasonably available 
                        in neighboring local educational 
                        agencies; and
                            ``(iii) a brief description of the 
                        services, qualifications, and 
                        demonstrated effectiveness of each such 
                        provider;
                    ``(B) if requested, assist parents in 
                choosing a provider from the list of approved 
                providers maintained by the State;
                    ``(C) apply fair and equitable procedures 
                for serving students if the number of spaces at 
                approved providers is not sufficient to serve 
                all students; and
                    ``(D) not disclose to the public the 
                identity of any student who is eligible for, or 
                receiving, supplemental educational services 
                under this subsection without the written 
                permission of the parents of the student.
            ``(3) Agreement.--In the case of the selection of 
        an approved provider by a parent, the local educational 
        agency shall enter into an agreement with such 
        provider. Such agreement shall--
                    ``(A) require the local educational agency 
                to develop, in consultation with parents (and 
                the provider chosen by the parents), a 
                statement of specific achievement goals for the 
                student, how the student's progress will be 
                measured, and a timetable for improving 
                achievement that, in the case of a student with 
                disabilities, is consistent with the student's 
                individualized education program under section 
                614(d) of the Individuals with Disabilities 
                Education Act;
                    ``(B) describe how the student's parents 
                and the student's teacher or teachers will be 
                regularly informed of the student's progress;
                    ``(C) provide for the termination of such 
                agreement if the provider is unable to meet 
                such goals and timetables;
                    ``(D) contain provisions with respect to 
                the making of payments to the provider by the 
                local educational agency; and
                    ``(E) prohibit the provider from disclosing 
                to the public the identity of any student 
                eligible for, or receiving, supplemental 
                educational services under this subsection 
                without the written permission of the parents 
                of such student.
            ``(4) State educational agency responsibilities.--A 
        State educational agency shall--
                    ``(A) in consultation with local 
                educational agencies, parents, teachers, and 
                other interested members of the public, promote 
                maximum participation by providers to ensure, 
                to the extent practicable, that parents have as 
                many choices as possible;
                    ``(B) develop and apply objective criteria, 
                consistent with paragraph (5), to potential 
                providers that are based on a demonstrated 
                record of effectiveness in increasing the 
                academic proficiency of students in subjects 
                relevant to meeting the State academic content 
                and student achievement standards adopted under 
                section 1111(b)(1);
                    ``(C) maintain an updated list of approved 
                providers across the State, by school district, 
                from which parents may select;
                    ``(D) develop, implement, and publicly 
                report on standards and techniques for 
                monitoring the quality and effectiveness of the 
                services offered by approved providers under 
                this subsection, and for withdrawing approval 
                from providers that fail, for 2 consecutive 
                years, to contribute to increasing the academic 
                proficiency of students served under this 
                subsection as described in subparagraph (B); 
                and
                    ``(E) provide annual notice to potential 
                providers of supplemental educational services 
                of the opportunity to provide services under 
                this subsection and of the applicable 
                procedures for obtaining approval from the 
                State educational agency to be an approved 
                provider of those services.
            ``(5) Criteria for providers.--In order for a 
        provider to be included on the State list under 
        paragraph (4)(C), a provider shall agree to carry out 
        the following:
                    ``(A) Provide parents of children receiving 
                supplemental educational services under this 
                subsection and the appropriate local 
                educational agency with information on the 
                progress of the children in increasing 
                achievement, in a format and, to the extent 
                practicable, a language that such parents can 
                understand.
                    ``(B) Ensure that instruction provided and 
                content used by the provider are consistent 
                with the instruction provided and content used 
                by the local educational agency and State, and 
                are aligned with State student academic 
                achievement standards.
                    ``(C) Meet all applicable Federal, State, 
                and local health, safety, and civil rights 
                laws.
                    ``(D) Ensure that all instruction and 
                content under this subsection are secular, 
                neutral, and nonideological.
            ``(6) Amounts for supplemental educational 
        services.--The amount that a local educational agency 
        shall make available for supplemental educational 
        services for each child receiving those services under 
        this subsection shall be the lesser of--
                    ``(A) the amount of the agency's allocation 
                under subpart 2, divided by the number of 
                children from families below the poverty level 
                counted under section 1124(c)(1)(A); or
                    ``(B) the actual costs of the supplemental 
                educational services received by the child.
            ``(7) Funds provided by state educational agency.--
        Each State educational agency may use funds that the 
        agency reserves under this part, and part A of title V, 
        to assist local educational agencies that do not have 
        sufficient funds to provide services under this 
        subsection for all eligible students requesting such 
        services.
            ``(8) Duration.--The local educational agency shall 
        continue to provide supplemental educational services 
        to a child receiving such services under this 
        subsection until the end of the school year in which 
        such services were first received.
            ``(9) Prohibition.--Nothing contained in this 
        subsection shall permit the making of any payment for 
        religious worship or instruction.
            ``(10) Waiver.--
                    ``(A) Requirement.--At the request of a 
                local educational agency, a State educational 
                agency may waive, in whole or in part, the 
                requirement of this subsection to provide 
                supplemental educational services if the State 
                educational agency determines that--
                            ``(i) none of the providers of 
                        those services on the list approved by 
                        the State educational agency under 
                        paragraph (4)(C) makes those services 
                        available in the area served by the 
                        local educational agency or within a 
                        reasonable distance of that area; and
                            ``(ii) the local educational agency 
                        provides evidence that it is not able 
                        to provide those services.
                    ``(B) Notification.--The State educational 
                agency shall notify the local educational 
                agency, within 30 days of receiving the local 
                educational agency's request for a waiver under 
                subparagraph (A), whether the request is 
                approved or disapproved and, if disapproved, 
                the reasons for the disapproval, in writing.
            ``(11) Special rule.--If State law prohibits a 
        State educational agency from carrying out one or more 
        of its responsibilities under paragraph (4) with 
        respect to those who provide, or seek approval to 
        provide, supplemental educational services, each local 
        educational agency in the State shall carry out those 
        responsibilities with respect to its students who are 
        eligible for those services.
            ``(12) Definitions.--In this subsection--
                    ``(A) the term `eligible child' means a 
                child from a low-income family, as determined 
                by the local educational agency for purposes of 
                allocating funds to schools under section 
                1113(c)(1);
                    ``(B) the term `provider' means a non-
                profit entity, a for-profit entity, or a local 
                educational agency that--
                            ``(i) has a demonstrated record of 
                        effectiveness in increasing student 
                        academic achievement;
                            ``(ii) is capable of providing 
                        supplemental educational services that 
                        are consistent with the instructional 
                        program of the local educational agency 
                        and the academic standards described 
                        under section 1111; and
                            ``(iii) is financially sound; and
                    ``(C) the term `supplemental educational 
                services' means tutoring and other supplemental 
                academic enrichment services that are--
                            ``(i) in addition to instruction 
                        provided during the school day; and
                            ``(ii) are of high quality, 
                        research-based, and specifically 
                        designed to increase the academic 
                        achievement of eligible children on the 
                        academic assessments required under 
                        section 1111 and attain proficiency in 
                        meeting the State's academic 
                        achievement standards.
    ``(f) Schools and LEAs Previously Identified for 
Improvement or Corrective Action.--
            ``(1) Schools.--
                    ``(A) School improvement.--
                            ``(i) Schools in school-improvement 
                        status before date of enactment.--Any 
                        school that was in the first year of 
                        school improvement status under this 
                        section on the day preceding the date 
                        of enactment of the No Child Left 
                        Behind Act of 2001 (as this section was 
                        in effect on such day) shall be treated 
                        by the local educational agency as a 
                        school that is in the first year of 
                        school improvement status under 
                        paragraph (1).
                            ``(ii) Schools in school-
                        improvement status for 2 or more years 
                        before date of enactment.--Any school 
                        that was in school improvement status 
                        under this section for 2 or more 
                        consecutive school years preceding the 
                        date of enactment of the No Child Left 
                        Behind Act of 2001 (as this section was 
                        in effect on such day) shall be treated 
                        by the local educational agency as a 
                        school described in subsection (b)(5).
                    ``(B) Corrective action.--Any school that 
                was in corrective action status under this 
                section on the day preceding the date of 
                enactment of the No Child Left Behind Act of 
                2001 (as this section was in effect on such 
                day) shall be treated by the local educational 
                agency as a school described in paragraph (7).
            ``(2) LEAs.--
                    ``(A) LEA improvement.--A State shall 
                identify for improvement under subsection 
                (c)(3) any local educational agency that was in 
                improvement status under this section as this 
                section was in effect on the day preceding the 
                date of enactment of the No Child Left Behind 
                Act of 2001.
                    ``(B) Corrective action.--A State shall 
                identify for corrective action under subsection 
                (c)(10) any local educational agency that was 
                in corrective action status under this section 
                as this section was in effect on the day 
                preceding the date of enactment of the No Child 
                Left Behind Act of 2001.
                    ``(C) Special rule.--For the schools and 
                other local educational agencies described 
                under paragraphs (1) and (2), as required, the 
                State shall ensure that public school choice in 
                accordance with subparagraphs (b)(1)(E) and (F) 
                and supplemental education services in 
                accordance with subsection (e) are provided not 
                later than the first day of the 2002-2003 
                school year.
                    ``(D) Transition.--With respect to a 
                determination that a local educational agency 
                has for 2 consecutive years failed to make 
                adequate yearly progress as defined in the 
                State plan under section 1111(b)(2), such 
                determination shall include in such 2-year 
                period any continuous period of time 
                immediately preceding the date of enactment of 
                the No Child Left Behind Act of 2001 during 
                which the agency has failed to make such 
                progress.
    ``(g) Schools Funded by the Bureau of Indian Affairs.--
            ``(1) Adequate yearly progress for bureau funded 
        schools.--
                    ``(A) Development of definition.--
                            ``(i) Definition.--The Secretary of 
                        the Interior, in consultation with the 
                        Secretary if the Secretary of Interior 
                        requests the consultation, using the 
                        process set out in section 1138(b) of 
                        the Education Amendments of 1978, shall 
                        define adequate yearly progress, 
                        consistent with section 1111(b), for 
                        the schools funded by the Bureau of 
                        Indian Affairs on a regional or tribal 
                        basis, as appropriate, taking into 
                        account the unique circumstances and 
                        needs of such schools and the students 
                        served by such schools.
                            ``(ii) Use of definition.--The 
                        Secretary of the Interior, consistent 
                        with clause (i), may use the definition 
                        of adequate yearly progress that the 
                        State in which the school that is 
                        funded by the Bureau is located uses 
                        consistent with section 1111(b), or in 
                        the case of schools that are located in 
                        more than 1 State, the Secretary of the 
                        Interior may use whichever State 
                        definition of adequate yearly progress 
                        that best meets the unique 
                        circumstances and needs of such school 
                        or schools and the students the schools 
                        serve.
                    ``(B) Waiver.--The tribal governing body or 
                school board of a school funded by the Bureau 
                of Indian Affairs may waive, in part or in 
                whole, the definition of adequate yearly 
                progress established pursuant to paragraph (A) 
                where such definition is determined by such 
                body or school board to be inappropriate. If 
                such definition is waived, the tribal governing 
                body or school board shall, within 60 days 
                thereafter, submit to the Secretary of Interior 
                a proposal for an alternative definition of 
                adequate yearly progress, consistent with 
                section 1111(b), that takes into account the 
                unique circumstances and needs of such school 
                or schools and the students served. The 
                Secretary of the Interior, in consultation with 
                the Secretary if the Secretary of Interior 
                requests the consultation, shall approve such 
                alternative definition unless the Secretary 
                determines that the definition does not meet 
                the requirements of section 1111(b), taking 
                into account the unique circumstances and needs 
                of such school or schools and the students 
                served.
                    ``(C) Technical assistance.--The Secretary 
                of Interior shall, in consultation with the 
                Secretary if the Secretary of Interior requests 
                the consultation, either directly or through a 
                contract, provide technical assistance, upon 
                request, to a tribal governing body or school 
                board of a school funded by the Bureau of 
                Indian Affairs that seeks to develop an 
                alternative definition of adequate yearly 
                progress.
            ``(2) Accountability for bia schools.--For the 
        purposes of this section, schools funded by the Bureau 
        of Indian Affairs shall be considered schools subject 
        to subsection (b), as specifically provided for in this 
        subsection, except that such schools shall not be 
        subject to subsection (c), or the requirements to 
        provide public school choice and supplemental 
        educational services under subsections (b) and (e).
            ``(3) School improvement for bureau schools.--
                    ``(A) Contract and grant schools.--For a 
                school funded by the Bureau of Indian Affairs 
                which is operated under a contract issued by 
                the Secretary of the Interior pursuant to the 
                Indian Self-Determination Act (25 U.S.C. 450 et 
                seq.) or under a grant issued by the Secretary 
                of the Interior pursuant to the Tribally 
                Controlled Schools Act of 1988 (25 U.S.C. 2501 
                et seq.), the school board of such school shall 
                be responsible for meeting the requirements of 
                subsection (b) relating to development and 
                implementation of any school improvement plan 
                as described in subsections (b)(1) through 
                (b)(3), and subsection (b)(5), other than 
                subsection (b)(1)(E). The Bureau of Indian 
                Affairs shall be responsible for meeting the 
                requirements of subsection (b)(4) relating to 
                technical assistance.
                    ``(B) Bureau operated schools.--For schools 
                operated by the Bureau of Indian Affairs, the 
                Bureau shall be responsible for meeting the 
                requirements of subsection (b) relating to 
                development and implementation of any school 
                improvement plan as described in subsections 
                (b)(1) through (b)(5), other than subsection 
                (b)(1)(E).
            ``(4) Corrective action and restructuring for 
        bureau funded schools.--
                    ``(A) Contract and grant schools.--For a 
                school funded by the Bureau of Indian Affairs 
                which is operated under a contract issued by 
                the Secretary of the Interior pursuant to the 
                Indian Self-Determination Act (25 U.S.C. 450 et 
                seq.) or under a grant issued by the Secretary 
                of the Interior pursuant to the Tribally 
                Controlled Schools Act of 1988 (25 U.S.C. 2501 
                et seq.), the school board of such school shall 
                be responsible for meeting the requirements of 
                subsection (b) relating to corrective action 
                and restructuring as described in subsection 
                (b)(7) and (b)(8). Any action taken by such 
                school board under subsection (b)(7) or (b)(8) 
                shall take into account the unique 
                circumstances and structure of the Bureau of 
                Indian Affairs-funded school system and the 
                laws governing that system.
                    ``(B) Bureau operated schools.--For schools 
                operated by the Bureau of Indian Affairs, the 
                Bureau shall be responsible for meeting the 
                requirements of subsection (b) relating to 
                corrective action and restructuring as 
                described in subsection (b)(7) and (b)(8). Any 
                action taken by the Bureau under subsection 
                (b)(7) or (b)(8) shall take into account the 
                unique circumstances and structure of the 
                Bureau of Indian Affairs-funded school system 
                and the laws governing that system.
            ``(5) Annual report.--On an annual basis, the 
        Secretary of the Interior shall report to the Secretary 
        of Education and to the appropriate committees of 
        Congress regarding any schools funded by the Bureau of 
        Indian Affairs which have been identified for school 
        improvement. Such report shall include--
                    ``(A) the identity of each school;
                    ``(B) a statement from each affected school 
                board regarding the factors that lead to such 
                identification; and
                    ``(C) an analysis by the Secretary of the 
                Interior, in consultation with the Secretary if 
                the Secretary of Interior requests the 
                consultation, as to whether sufficient 
                resources were available to enable such school 
                to achieve adequate yearly progress.
    ``(h) Other Agencies.--After receiving the notice described 
in subsection (b)(14)(D), the Secretary may notify, to the 
extent feasible and necessary as determined by the Secretary, 
other relevant Federal agencies regarding the major factors 
that were determined by the State educational agency to have 
significantly affected student academic achievement.

``SEC. 1117. SCHOOL SUPPORT AND RECOGNITION.

    ``(a) System for Support.--
            ``(1) In general.--Each State shall establish a 
        statewide system of intensive and sustained support and 
        improvement for local educational agencies and schools 
        receiving funds under this part, in order to increase 
        the opportunity for all students served by those 
        agencies and schools to meet the State's academic 
        content standards and student academic achievement 
        standards.
            ``(2) Priorities.--In carrying out this subsection, 
        a State shall--
                    ``(A) first, provide support and assistance 
                to local educational agencies with schools 
                subject to corrective action under section 1116 
                and assist those schools, in accordance with 
                section 1116(b)(11), for which a local 
                educational agency has failed to carry out its 
                responsibilities under paragraphs (7) and (8) 
                of section 1116(b);
                    ``(B) second, provide support and 
                assistance to other local educational agencies 
                with schools identified as in need of 
                improvement under section 1116(b); and
                    ``(C) third, provide support and assistance 
                to other local educational agencies and schools 
                participating under this part that need that 
                support and assistance in order to achieve the 
                purpose of this part.
            ``(3) Regional centers.--Such a statewide system 
        shall, to the extent practicable, work with and receive 
        support and assistance from the comprehensive regional 
        technical assistance centers and the regional 
        educational laboratories under section 941(h) of the 
        Educational Research, Development, Dissemination, and 
        Improvement Act of 1994, or other providers of 
        technical assistance.
            ``(4) Statewide system.--
                    ``(A) In order to achieve the purpose 
                described in paragraph (1), the statewide 
                system shall include, at a minimum, the 
                following approaches:
                            ``(i) Establishing school support 
                        teams in accordance with subparagraph 
                        (C) for assignment to, and working in, 
                        schools in the State that are described 
                        in paragraph (2).
                            ``(ii) Providing such support as 
                        the State educational agency determines 
                        necessary and available in order to 
                        ensure the effectiveness of such teams.
                            ``(iii) Designating and using 
                        distinguished teachers and principals 
                        who are chosen from schools served 
                        under this part that have been 
                        especially successful in improving 
                        academic achievement.
                            ``(iv) Devising additional 
                        approaches to providing the assistance 
                        described in paragraph (1), such as 
                        providing assistance through 
                        institutions of higher education and 
                        educational service agencies or other 
                        local consortia, and private providers 
                        of scientifically based technical 
                        assistance.
                    ``(B) Priority.--The State educational 
                agency shall give priority to the approach 
                described in clause (i) of subparagraph (A).
            ``(5) School support teams.--
                    ``(A) Composition.--Each school support 
                team established under this section shall be 
                composed of persons knowledgeable about 
                scientifically based research and practice on 
                teaching and learning and about successful 
                schoolwide projects, school reform, and 
                improving educational opportunities for low-
                achieving students, including--
                            ``(i) highly qualified or 
                        distinguished teachers and principals;
                            ``(ii) pupil services personnel;
                            ``(iii) parents;
                            ``(iv) representatives of 
                        institutions of higher education;
                            ``(v) representatives of regional 
                        educational laboratories or 
                        comprehensive regional technical 
                        assistance centers;
                            ``(vi) representatives of outside 
                        consultant groups; or
                            ``(vii) other individuals as the 
                        State educational agency, in 
                        consultation with the local educational 
                        agency, may determine appropriate.
                    ``(B) Functions.--Each school support team 
                assigned to a school under this section shall--
                            ``(i) review and analyze all facets 
                        of the school's operation, including 
                        the design and operation of the 
                        instructional program, and assist the 
                        school in developing recommendations 
                        for improving student performance in 
                        that school;
                            ``(ii) collaborate with parents and 
                        school staff and the local educational 
                        agency serving the school in the 
                        design, implementation, and monitoring 
                        of a plan that, if fully implemented, 
                        can reasonably be expected to improve 
                        student performance and help the school 
                        meet its goals for improvement, 
                        including adequate yearly progress 
                        under section 1111(b)(2)(B);
                            ``(iii) evaluate, at least 
                        semiannually, the effectiveness of 
                        school personnel assigned to the 
                        school, including identifying 
                        outstanding teachers and principals, 
                        and make findings and recommendations 
                        to the school, the local educational 
                        agency, and, where appropriate, the 
                        State educational agency; and
                            ``(iv) make additional 
                        recommendations as the school 
                        implements the plan described in clause 
                        (ii) to the local educational agency 
                        and the State educational agency 
                        concerning additional assistance that 
                        is needed by the school or the school 
                        support team.
                    ``(C) Continuation of assistance.--After 1 
                school year, from the beginning of the 
                activities, such school support team, in 
                consultation with the local educational agency, 
                may recommend that the school support team 
                continue to provide assistance to the school, 
                or that the local educational agency or the 
                State educational agency, as appropriate, take 
                alternative actions with regard to the school.
    ``(b) State Recognition.--
            ``(1) Academic achievement awards program.--
                    ``(A) In general.--Each State receiving a 
                grant under this part--
                            ``(i) shall establish a program for 
                        making academic achievement awards to 
                        recognize schools that meet the 
                        criteria described in subparagraph (B); 
                        and
                            ``(ii) as appropriate and as funds 
                        are available under subsection 
                        (c)(2)(A), may financially reward 
                        schools served under this part that 
                        meet the criteria described in clause 
                        (ii).
                    ``(B) Criteria.--The criteria referred to 
                in subparagraph (A) are that a school--
                            ``(i) significantly closed the 
                        achievement gap between the groups of 
                        students described in section 
                        1111(b)(2); or
                            ``(ii) exceeded their adequate 
                        yearly progress, consistent with 
                        section 1111(b)(2), for 2 or more 
                        consecutive years.
            ``(2) Distinguished schools.--Of those schools 
        meeting the criteria described in paragraph (2), each 
        State shall designate as distinguished schools those 
        schools that have made the greatest gains in closing 
        the achievement gap as described in subparagraph (B)(i) 
        or exceeding adequate yearly progress as described in 
        subparagraph (B)(ii). Such distinguished schools may 
        serve as models for and provide support to other 
        schools, especially schools identified for improvement 
        under section 1116, to assist such schools in meeting 
        the State's academic content standards and student 
        academic achievement standards.
            ``(3) Awards to teachers.--A State program under 
        paragraph (1) may also recognize and provide financial 
        awards to teachers teaching in a school described in 
        such paragraph that consistently makes significant 
        gains in academic achievement in the areas in which the 
        teacher provides instruction, or to teachers or 
        principals designated as distinguished under subsection 
        (a)(4)(A)(iii).
    ``(c) Funding.--
            ``(1) In general.--Each State--
                    ``(A) shall use funds reserved under 
                section 1003(a) and may use funds made 
                available under section 1003(g) for the 
                approaches described under subsection 
                (a)(4)(A); and
                    ``(B) shall use State administrative funds 
                authorized under section 1004(a) to establish 
                the statewide system of support described under 
                subsection (a).
            ``(2) Reservations of funds by state.--
                    ``(A) Awards program.--For the purpose of 
                carrying out subsection (b)(1), each State 
                receiving a grant under this part may reserve, 
                from the amount (if any) by which the funds 
                received by the State under subpart 2 for a 
                fiscal year exceed the amount received by the 
                State under that subpart for the preceding 
                fiscal year, not more than 5 percent of such 
                excess amount.
                    ``(B) Teacher awards.--For the purpose of 
                carrying out subsection (b)(3), a State 
                educational agency may reserve such funds as 
                necessary from funds made available under 
                section 2113.
            ``(3) Use within 3 years.--Notwithstanding any 
        other provision of law, the amount reserved under 
        subparagraph (A) by a State for each fiscal year shall 
        remain available to the State until expended for a 
        period not exceeding 3 years receipt of funds.
            ``(4) Special allocation rule for schools in high-
        poverty areas.--
                    ``(A) In general.--Each State shall 
                distribute not less than 75 percent of any 
                amount reserved under paragraph (2)(A) for each 
                fiscal year to schools described in 
                subparagraph (B), or to teachers consistent 
                with subsection (b)(3).
                    ``(B) School described.--A school described 
                in subparagraph) (A) is a school whose student 
                population is in the highest quartile of 
                schools statewide in terms of the percentage of 
                children from low income families.

``SEC. 1118. PARENTAL INVOLVEMENT.

    ``(a) Local Educational Agency Policy.--
            ``(1) In general.--A local educational agency may 
        receive funds under this part only if such agency 
        implements programs, activities, and procedures for the 
        involvement of parents in programs assisted under this 
        part consistent with this section. Such programs, 
        activities, and procedures shall be planned and 
        implemented with meaningful consultation with parents 
        of participating children.
            ``(2) Written policy.--Each local educational 
        agency that receives funds under this part shall 
        develop jointly with, agree on with, and distribute to, 
        parents of participating children a written parent 
        involvement policy. The policy shall be incorporated 
        into the local educational agency's plan developed 
        under section 1112, establish the agency's expectations 
        for parent involvement, and describe how the agency 
        will--
                    ``(A) involve parents in the joint 
                development of the plan under section 1112, and 
                the process of school review and improvement 
                under section 1116;
                    ``(B) provide the coordination, technical 
                assistance, and other support necessary to 
                assist participating schools in planning and 
                implementing effective parent involvement 
                activities to improve student academic 
                achievement and school performance;
                    ``(C) build the schools' and parents' 
                capacity for strong parental involvement as 
                described in subsection (e);
                    ``(D) coordinate and integrate parental 
                involvement strategies under this part with 
                parental involvement strategies under other 
                programs, such as the Head Start program, 
                Reading First program, Early Reading First 
                program, Even Start program, Parents as 
                Teachers program, and Home Instruction Program 
                for Preschool Youngsters, and State-run 
                preschool programs;
                    ``(E) conduct, with the involvement of 
                parents, an annual evaluation of the content 
                and effectiveness of the parental involvement 
                policy in improving the academic quality of the 
                schools served under this part, including 
                identifying barriers to greater participation 
                by parents in activities authorized by this 
                section (with particular attention to parents 
                who are economically disadvantaged, are 
                disabled, have limited English proficiency, 
                have limited literacy, or are of any racial or 
                ethnic minority background), and use the 
                findings of such evaluation to design 
                strategies for more effective parental 
                involvement, and to revise, if necessary, the 
                parental involvement policies described in this 
                section; and
                    ``(F) involve parents in the activities of 
                the schools served under this part.
            ``(3) Reservation.--
                    ``(A) In general.--Each local educational 
                agency shall reserve not less than 1 percent of 
                such agency's allocation under subpart 2 of 
                this part to carry out this section, including 
                promoting family literacy and parenting skills, 
                except that this paragraph shall not apply if 1 
                percent of such agency's allocation under 
                subpart 2 of this part for the fiscal year for 
                which the determination is made is $5,000 or 
                less.
                    ``(B) Parental input.--Parents of children 
                receiving services under this part shall be 
                involved in the decisions regarding how funds 
                reserved under subparagraph (A) are allotted 
                for parental involvement activities.
                    ``(C) Distribution of funds.--Not less than 
                95 percent of the funds reserved under 
                subparagraph (A) shall be distributed to 
                schools served under this part.
    ``(b) School Parental Involvement Policy.--
            ``(1) In general.--Each school served under this 
        part shall jointly develop with, and distribute to, 
        parents of participating children a written parental 
        involvement policy, agreed on by such parents, that 
        shall describe the means for carrying out the 
        requirements of subsections (c) through (f). Parents 
        shall be notified of the policy in an understandable 
        and uniform format and, to the extent practicable, 
        provided in a language the parents can understand. Such 
        policy shall be made available to the local community 
        and updated periodically to meet the changing needs of 
        parents and the school.
            ``(2) Special rule.--If the school has a parental 
        involvement policy that applies to all parents, such 
        school may amend that policy, if necessary, to meet the 
        requirements of this subsection.
            ``(3) Amendment.--If the local educational agency 
        involved has a school district-level parental 
        involvement policy that applies to all parents, such 
        agency may amend that policy, if necessary, to meet the 
        requirements of this subsection.
            ``(4) Parental comments.--If the plan under section 
        1112 is not satisfactory to the parents of 
        participating children, the local educational agency 
        shall submit any parent comments with such plan when 
        such local educational agency submits the plan to the 
        State.
    ``(c) Policy Involvement.--Each school served under this 
part shall--
            ``(1) convene an annual meeting, at a convenient 
        time, to which all parents of participating children 
        shall be invited and encouraged to attend, to inform 
        parents of their school's participation under this part 
        and to explain the requirements of this part, and the 
        right of the parents to be involved;
            ``(2) offer a flexible number of meetings, such as 
        meetings in the morning or evening, and may provide, 
        with funds provided under this part, transportation, 
        child care, or home visits, as such services relate to 
        parental involvement;
            ``(3) involve parents, in an organized, ongoing, 
        and timely way, in the planning, review, and 
        improvement of programs under this part, including the 
        planning, review, and improvement of the school 
        parental involvement policy and the joint development 
        of the schoolwide program plan under section 
        1114(b)(2), except that if a school has in place a 
        process for involving parents in the joint planning and 
        design of the school's programs, the school may use 
        that process, if such process includes an adequate 
        representation of parents of participating children;
            ``(4) provide parents of participating children--
                    ``(A) timely information about programs 
                under this part;
                    ``(B) a description and explanation of the 
                curriculum in use at the school, the forms of 
                academic assessment used to measure student 
                progress, and the proficiency levels students 
                are expected to meet; and
                    ``(C) if requested by parents, 
                opportunities for regular meetings to formulate 
                suggestions and to participate, as appropriate, 
                in decisions relating to the education of their 
                children, and respond to any such suggestions 
                as soon as practicably possible; and
            ``(5) if the schoolwide program plan under section 
        1114(b)(2) is not satisfactory to the parents of 
        participating children, submit any parent comments on 
        the plan when the school makes the plan available to 
        the local educational agency.
    (d) Shared Responsibilities for High Student Academic 
Achievement.--As a component of the school-level parental 
involvement policy developed under subsection (b), each school 
served under this part shall jointly develop with parents for 
all children served under this part a school-parent compact 
that outlines how parents, the entire school staff, and 
students will share the responsibility for improved student 
academic achievement and the means by which the school and 
parents will build and develop a partnership to help children 
achieve the State's high standards. Such compact shall--
            (1) describe the school's responsibility to provide 
        high-quality curriculum and instruction in a supportive 
        and effective learning environment that enables the 
        children served under this part to meet the State's 
        student academic achievement standards, and the ways in 
        which each parent will be responsible for supporting 
        their children's learning, such as monitoring 
        attendance, homework completion, and television 
        watching; volunteering in their child's classroom; and 
        participating, as appropriate, in decisions relating to 
        the education of their children and positive use of 
        extracurricular time; and
            (2) address the importance of communication between 
        teachers and parents on an ongoing basis through, at a 
        minimum--
                    (A) parent-teacher conferences in 
                elementary schools, at least annually, during 
                which the compact shall be discussed as the 
                compact relates to the individual child's 
                achievement;
                    (B) frequent reports to parents on their 
                children's progress; and
                    (C) reasonable access to staff, 
                opportunities to volunteer and participate in 
                their child's class, and observation of 
                classroom activities.
    ``(e) Building Capacity for Involvement.--To ensure 
effective involvement of parents and to support a partnership 
among the school involved, parents, and the community to 
improve student academic achievement, each school and local 
educational agency assisted under this part--
            ``(1) shall provide assistance to parents of 
        children served by the school or local educational 
        agency, as appropriate, in understanding such topics as 
        the State's academic content standards and State 
        student academic achievement standards, State and local 
        academic assessments, the requirements of this part, 
        and how to monitor a child's progress and work with 
        educators to improve the achievement of their children;
            ``(2) shall provide materials and training to help 
        parents to work with their children to improve their 
        children's achievement, such as literacy training and 
        using technology, as appropriate, to foster parental 
        involvement;
            ``(3) shall educate teachers, pupil services 
        personnel, principals, and other staff, with the 
        assistance of parents, in the value and utility of 
        contributions of parents, and in how to reach out to, 
        communicate with, and work with parents as equal 
        partners, implement and coordinate parent programs, and 
        build ties between parents and the school;
            ``(4) shall, to the extent feasible and 
        appropriate, coordinate and integrate parent 
        involvement programs and activities with Head Start, 
        Reading First, Early Reading First, Even Start, the 
        Home Instruction Programs for Preschool Youngsters, the 
        Parents as Teachers Program, and public preschool and 
        other programs, and conduct other activities, such as 
        parent resource centers, that encourage and support 
        parents in more fully participating in the education of 
        their children;
            ``(5) shall ensure that information related to 
        school and parent programs, meetings, and other 
        activities is sent to the parents of participating 
        children in a format and, to the extent practicable, in 
        a language the parents can understand;
            ``(6) may involve parents in the development of 
        training for teachers, principals, and other educators 
        to improve the effectiveness of such training;
            ``(7) may provide necessary literacy training from 
        funds received under this part if the local educational 
        agency has exhausted all other reasonably available 
        sources of funding for such training;
            ``(8) may pay reasonable and necessary expenses 
        associated with local parental involvement activities, 
        including transportation and child care costs, to 
        enable parents to participate in school-related 
        meetings and training sessions;
            ``(9) may train parents to enhance the involvement 
        of other parents;
            ``(10) may arrange school meetings at a variety of 
        times, or conduct in-home conferences between teachers 
        or other educators, who work directly with 
        participating children, with parents who are unable to 
        attend such conferences at school, in order to maximize 
        parental involvement and participation;
            ``(11) may adopt and implement model approaches to 
        improving parental involvement;
            ``(12) may establish a districtwide parent advisory 
        council to provide advice on all matters related to 
        parental involvement in programs supported under this 
        section;
            ``(13) may develop appropriate roles for community-
        based organizations and businesses in parent 
        involvement activities; and
            ``(14) shall provide such other reasonable support 
        for parental involvement activities under this section 
        as parents may request.
    ``(f) Accessibility.--In carrying out the parental 
involvement requirements of this part, local educational 
agencies and schools, to the extent practicable, shall provide 
full opportunities for the participation of parents with 
limited English proficiency, parents with disabilities, and 
parents of migratory children, including providing information 
and school reports required under section 1111 in a format and, 
to the extent practicable, in a language such parents 
understand.
    ``(g) Information From Parental Information and Resource 
Centers.--In a State where a parental information and resource 
center is established to provide training, information, and 
support to parents and individuals who work with local parents, 
local educational agencies, and schools receiving assistance 
under this part, each local educational agency or school that 
receives assistance under this part and is located in the State 
shall assist parents and parental organizations by informing 
such parents and organizations of the existence and purpose of 
such centers.
    ``(h) Review.--The State educational agency shall review 
the local educational agency's parental involvement policies 
and practices to determine if the policies and practices meet 
the requirements of this section.

``SEC. 1119. QUALIFICATIONS FOR TEACHERS AND PARAPROFESSIONALS.

    ``(a) Teacher Qualifications and Measurable Objectives.--
            ``(1) In general.--Beginning with the first day of 
        the first school year after the date of enactment of 
        the No Child Left Behind Act of 2001, each local 
        educational agency receiving assistance under this part 
        shall ensure that all teachers hired after such day and 
        teaching in a program supported with funds under this 
        part are highly qualified.
            ``(2) State plan.--As part of the plan described in 
        section 1111, each State educational agency receiving 
        assistance under this part shall develop a plan to 
        ensure that all teachers teaching in core academic 
        subjects within the State are highly qualified not 
        later than the end of the 2005-2006 school year. Such 
        plan shall establish annual measurable objectives for 
        each local educational agency and school that, at a 
        minimum--
                    ``(A) shall include an annual increase in 
                the percentage of highly qualified teachers at 
                each local educational agency and school, to 
                ensure that all teachers teaching in core 
                academic subjects in each public elementary 
                school and secondary school are highly 
                qualified not later than the end of the 2005-
                2006 school year;
                    ``(B) shall include an annual increase in 
                the percentage of teachers who are receiving 
                high-quality professional development to enable 
                such teachers to become highly qualified and 
                successful classroom teachers; and
                    ``(C) may include such other measures as 
                the State educational agency determines to be 
                appropriate to increase teacher qualifications.
            ``(3) Local plan.--As part of the plan described in 
        section 1112, each local educational agency receiving 
        assistance under this part shall develop a plan to 
        ensure that all teachers teaching within the school 
        district served by the local educational agency are 
        highly qualified not later than the end of the 2005-
        2006 school year.
    ``(b) Reports.--
            ``(1) Annual state and local reports.--
                    ``(A) Local reports.--Each State 
                educational agency described in subsection 
                (a)(2) shall require each local educational 
                agency receiving funds under this part to 
                publicly report, each year, beginning with the 
                2002-2003 school year, the annual progress of 
                the local educational agency as a whole and of 
                each of the schools served by the agency, in 
                meeting the measurable objectives described in 
                subsection (a)(2).
                    ``(B) State reports.--Each State 
                educational agency receiving assistance under 
                this part shall prepare and submit each year, 
                beginning with the 2002-2003 school year, a 
                report to the Secretary, describing the State 
                educational agency's progress in meeting the 
                measurable objectives described in subsection 
                (a)(2).
                    ``(C) Information from other reports.--A 
                State educational agency or local educational 
                agency may submit information from the reports 
                described in section 1111(h) for the purposes 
                of this subsection, if such report is modified, 
                as may be necessary, to contain the information 
                required by this subsection, and may submit 
                such information as a part of the reports 
                required under section 1111(h).
            ``(2) Annual reports by the secretary.--Each year, 
        beginning with the 2002-2003 school year, the Secretary 
        shall publicly report the annual progress of State 
        educational agencies, local educational agencies, and 
        schools, in meeting the measurable objectives described 
        in subsection (a)(2).
    ``(c) New Paraprofessionals.--
            ``(1) In general.--Each local educational agency 
        receiving assistance under this part shall ensure that 
        all paraprofessionals hired after the date of enactment 
        of the No Child Left Behind Act of 2001 and working in 
        a program supported with funds under this part shall 
        have--
                    ``(A) completed at least 2 years of study 
                at an institution of higher education;
                    ``(B) obtained an associate's (or higher) 
                degree; or
                    ``(C) met a rigorous standard of quality 
                and can demonstrate, through a formal State or 
                local academic assessment--
                            ``(i) knowledge of, and the ability 
                        to assist in instructing, reading, 
                        writing, and mathematics; or
                            ``(ii) knowledge of, and the 
                        ability to assist in instructing, 
                        reading readiness, writing readiness, 
                        and mathematics readiness, as 
                        appropriate.
            ``(2) Clarification.--The receipt of a secondary 
        school diploma (or its recognized equivalent) shall be 
        necessary but not sufficient to satisfy the 
        requirements of paragraph (1)(C).
    ``(d) Existing Paraprofessionals.--Each local educational 
agency receiving assistance under this part shall ensure that 
all paraprofessionals hired before the date of enactment of the 
No Child Left Behind Act of 2001, and working in a program 
supported with funds under this part shall, not later than 4 
years after the date of enactment satisfy the requirements of 
subsection (b).
    ``(e) Exceptions for Translation and Parental Involvement 
Activities.--Subsections (c) and (d) shall not apply to a 
paraprofessional--
            ``(1) who is proficient in English and a language 
        other than English and who provides services primarily 
        to enhance the participation of children in programs 
        under this part by acting as a translator; or
            ``(2) whose duties consist solely of conducting 
        parental involvement activities consistent with section 
        1118.
    ``(f) General Requirement for All Paraprofessionals.--Each 
local educational agency receiving assistance under this part 
shall ensure that all paraprofessionals working in a program 
supported with funds under this part, regardless of the 
paraprofessionals' hiring date, have earned a secondary school 
diploma or its recognized equivalent.
    ``(g) Duties of Paraprofessionals.--
            ``(1) In general.--Each local educational agency 
        receiving assistance under this part shall ensure that 
        a paraprofessional working in a program supported with 
        funds under this part is not assigned a duty 
        inconsistent with this subsection.
            ``(2) Responsibilities paraprofessionals may be 
        assigned.--A paraprofessional described in paragraph 
        (1) may be assigned--
                    ``(A) to provide one-on-one tutoring for 
                eligible students, if the tutoring is scheduled 
                at a time when a student would not otherwise 
                receive instruction from a teacher;
                    ``(B) to assist with classroom management, 
                such as organizing instructional and other 
                materials;
                    ``(C) to provide assistance in a computer 
                laboratory;
                    ``(D) to conduct parental involvement 
                activities;
                    ``(E) to provide support in a library or 
                media center;
                    ``(F) to act as a translator; or
                    ``(G) to provide instructional services to 
                students in accordance with paragraph (3).
            ``(3) Additional limitations.--A paraprofessional 
        described in paragraph (1)--
                    ``(A) may not provide any instructional 
                service to a student unless the 
                paraprofessional is working under the direct 
                supervision of a teacher consistent with 
                section 1119; and
                    ``(B) may assume limited duties that are 
                assigned to similar personnel who are not 
                working in a program supported with funds under 
                this part, including duties beyond classroom 
                instruction or that do not benefit 
                participating children, so long as the amount 
                of time spent on such duties is the same 
                proportion of total work time as prevails with 
                respect to similar personnel at the same 
                school.
    ``(h) Use of Funds.--A local educational agency receiving 
funds under this part may use such funds to support ongoing 
training and professional development to assist teachers and 
paraprofessionals in satisfying the requirements of this 
section.
    ``(i) Verification of Compliance.--
            ``(1) In general.--In verifying compliance with 
        this section, each local educational agency, at a 
        minimum, shall require that the principal of each 
        school operating a program under section 1114 or 1115 
        attest annually in writing as to whether such school is 
        in compliance with the requirements of this section.
            ``(2) Availability of information.--Copies of 
        attestations under paragraph (1)--
                    ``(A) shall be maintained at each school 
                operating a program under section 1114 or 1115 
                and at the main office of the local educational 
                agency; and
                    ``(B) shall be available to any member of 
                the general public on request.
    ``(j) Combinations of Funds.--Funds provided under this 
part that are used for professional development purposes may be 
combined with funds provided under title II of this Act, other 
Acts, and other sources.
    ``(k) Special Rule.--Except as provided in subsection (l), 
no State educational agency shall require a school or a local 
educational agency to expend a specific amount of funds for 
professional development activities under this part, except 
that this paragraph shall not apply with respect to 
requirements under section 1116(c)(3).
    ``(l) Minimum Expenditures.--Each local educational agency 
that receives funds under this part shall use not less than 5 
percent, or more than 10 percent, of such funds for each of 
fiscal years 2002 and 2003, and not less than 5 percent of the 
funds for each subsequent fiscal year, for professional 
development activities to ensure that teachers who are not 
highly qualified become highly qualified not later than the end 
of the 2005-2006 school year.

``SEC. 1120. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.

    ``(a) General Requirement.--
            ``(1) In general.--To the extent consistent with 
        the number of eligible children identified under 
        section 1115(b) in the school district served by a 
        local educational agency who are enrolled in private 
        elementary schools and secondary schools, a local 
        educational agency shall, after timely and meaningful 
        consultation with appropriate private school officials, 
        provide such children, on an equitable basis, special 
        educational services or other benefits under this part 
        (such as dual enrollment, educational radio and 
        television, computer equipment and materials, other 
        technology, and mobile educational services and 
        equipment) that address their needs, and shall ensure 
        that teachers and families of the children participate, 
        on an equitable basis, in services and activities 
        developed pursuant to sections 1118 and 1119.
            ``(2) Secular, neutral, nonideological.--Such 
        educational services or other benefits, including 
        materials and equipment, shall be secular, neutral, and 
        nonideological.
            ``(3) Equity.--Educational services and other 
        benefits for such private school children shall be 
        equitable in comparison to services and other benefits 
        for public school children participating under this 
        part, and shall be provided in a timely manner.
            ``(4) Expenditures.--Expenditures for educational 
        services and other benefits to eligible private school 
        children shall be equal to the proportion of funds 
        allocated to participating school attendance areas 
        based on the number of children from low-income 
        families who attend private schools, which the local 
        educational agency may determine each year or every 2 
        years.
            ``(5) Provision of services.--The local educational 
        agency may provide services under this section directly 
        or through contracts with public and private agencies, 
        organizations, and institutions.
    ``(b) Consultation.--
            ``(1) In general.--To ensure timely and meaningful 
        consultation, a local educational agency shall consult 
        with appropriate private school officials during the 
        design and development of such agency's programs under 
        this part, on issues such as--
                    ``(A) how the children's needs will be 
                identified;
                    ``(B) what services will be offered;
                    ``(C) how, where, and by whom the services 
                will be provided;
                    ``(D) how the services will be academically 
                assessed and how the results of that assessment 
                will be used to improve those services;
                    ``(E) the size and scope of the equitable 
                services to be provided to the eligible private 
                school children, and the proportion of funds 
                that is allocated under subsection (a)(4) for 
                such services;
                    ``(F) the method or sources of data that 
                are used under subsection (c) and section 
                1113(c)(1) to determine the number of children 
                from low-income families in participating 
                school attendance areas who attend private 
                schools;
                    ``(G) how and when the agency will make 
                decisions about the delivery of services to 
                such children, including a thorough 
                consideration and analysis of the views of the 
                private school officials on the provision of 
                services through a contract with potential 
                third-party providers; and
                    ``(H) how, if the agency disagrees with the 
                views of the private school officials on the 
                provision of services through a contract, the 
                local educational agency will provide in 
                writing to such private school officials an 
                analysis of the reasons why the local 
                educational agency has chosen not to use a 
                contractor.
            ``(2) Timing.--Such consultation shall include 
        meetings of agency and private school officials and 
        shall occur before the local educational agency makes 
        any decision that affects the opportunities of eligible 
        private school children to participate in programs 
        under this part. Such meetings shall continue 
        throughout implementation and assessment of services 
        provided under this section.
            ``(3) Discussion.--Such consultation shall include 
        a discussion of service delivery mechanisms a local 
        educational agency can use to provide equitable 
        services to eligible private school children.
            ``(4) Documentation.--Each local educational agency 
        shall maintain in the agency's records and provide to 
        the State educational agency involved a written 
        affirmation signed by officials of each participating 
        private school that the consultation required by this 
        section has occurred. If such officials do not provide 
        such affirmation within a reasonable period of time, 
        the local educational agency shall forward the 
        documentation that such consultation has taken place to 
        the State educational agency.
            ``(5) Compliance.--
                    ``(A) In general.--A private school 
                official shall have the right to complain to 
                the State educational agency that the local 
                educational agency did not engage in 
                consultation that was meaningful and timely, or 
                did not give due consideration to the views of 
                the private school official.
                    ``(B) Procedure.--If the private school 
                official wishes to complain, the official shall 
                provide the basis of the noncompliance with 
                this section by the local educational agency to 
                the State educational agency, and the local 
                educational agency shall forward the 
                appropriate documentation to the State 
                educational agency.
    ``(c) Allocation for Equitable Service to Private School 
Students.--
            ``(1) Calculation.--A local educational agency 
        shall have the final authority, consistent with this 
        section, to calculate the number of children, ages 5 
        through 17, who are from low-income families and attend 
        private schools by--
                    ``(A) using the same measure of low income 
                used to count public school children;
                    ``(B) using the results of a survey that, 
                to the extent possible, protects the identity 
                of families of private school students, and 
                allowing such survey results to be extrapolated 
                if complete actual data are unavailable;
                    ``(C) applying the low-income percentage of 
                each participating public school attendance 
                area, determined pursuant to this section, to 
                the number of private school children who 
                reside in that school attendance area; or
                    ``(D) using an equated measure of low 
                income correlated with the measure of low 
                income used to count public school children.
            ``(2) Complaint process.--Any dispute regarding 
        low-income data for private school students shall be 
        subject to the complaint process authorized in section 
        9505.
    ``(d) Public Control of Funds.--
            ``(1) In general.--The control of funds provided 
        under this part, and title to materials, equipment, and 
        property purchased with such funds, shall be in a 
        public agency, and a public agency shall administer 
        such funds materials, equipment, and property.
            ``(2) Provision of services.--
                    ``(A) Provider.--The provision of services 
                under this section shall be provided--
                            ``(i) by employees of a public 
                        agency; or
                            ``(ii) through contract by such 
                        public agency with an individual, 
                        association, agency, or organization.
                    ``(B) Requirement.--In the provision of 
                such services, such employee, individual, 
                association, agency, or organization shall be 
                independent of such private school and of any 
                religious organization, and such employment or 
                contract shall be under the control and 
                supervision of such public agency.
    ``(e) Standards for a Bypass.--If a local educational 
agency is prohibited by law from providing for the 
participation in programs on an equitable basis of eligible 
children enrolled in private elementary schools and secondary 
schools, or if the Secretary determines that a local 
educational agency has substantially failed or is unwilling, to 
provide for such participation, as required by this section, 
the Secretary shall--
            ``(1) waive the requirements of this section for 
        such local educational agency;
            ``(2) arrange for the provision of services to such 
        children through arrangements that shall be subject to 
        the requirements of this section and sections 9503 and 
        9504; and
            ``(3) in making the determination under this 
        subsection, consider one or more factors, including the 
        quality, size, scope, and location of the program and 
        the opportunity of eligible children to participate.

``SEC. 1120A. FISCAL REQUIREMENTS.

    ``(a) Maintenance of Effort.--A local educational agency 
may receive funds under this part for any fiscal year only if 
the State educational agency involved finds that the local 
educational agency has maintained the agency's fiscal effort in 
accordance with section 9521.
    ``(b) Federal Funds To Supplement, Not Supplant, Non-
Federal Funds.--
            ``(1) In general.--A State educational agency or 
        local educational agency shall use Federal funds 
        received under this part only to supplement the funds 
        that would, in the absence of such Federal funds, be 
        made available from non-Federal sources for the 
        education of pupils participating in programs assisted 
        under this part, and not to supplant such funds.
            ``(2) Special rule.--No local educational agency 
        shall be required to provide services under this part 
        through a particular instructional method or in a 
        particular instructional setting in order to 
        demonstrate such agency's compliance with paragraph 
        (1).
    ``(c) Comparability of Services.--
            ``(1) In general.--
                    ``(A) Comparable services.--Except as 
                provided in paragraphs (4) and (5), a local 
                educational agency may receive funds under this 
                part only if State and local funds will be used 
                in schools served under this part to provide 
                services that, taken as a whole, are at least 
                comparable to services in schools that are not 
                receiving funds under this part.
                    ``(B) Substantially comparable services.--
                If the local educational agency is serving all 
                of such agency's schools under this part, such 
                agency may receive funds under this part only 
                if such agency will use State and local funds 
                to provide services that, taken as a whole, are 
                substantially comparable in each school.
                    ``(C) Basis.--A local educational agency 
                may meet the requirements of subparagraphs (A) 
                and (B) on a grade-span by grade-span basis or 
                a school-by-school basis.
            ``(2) Written assurance.--
                    ``(A) Equivalence.--A local educational 
                agency shall be considered to have met the 
                requirements of paragraph (1) if such agency 
                has filed with the State educational agency a 
                written assurance that such agency has 
                established and implemented--
                            ``(i) a local educational agency-
                        wide salary schedule;
                            ``(ii) a policy to ensure 
                        equivalence among schools in teachers, 
                        administrators, and other staff; and
                            ``(iii) a policy to ensure 
                        equivalence among schools in the 
                        provision of curriculum materials and 
                        instructional supplies.
                    ``(B) Determinations.--For the purpose of 
                this subsection, in the determination of 
                expenditures per pupil from State and local 
                funds, or instructional salaries per pupil from 
                State and local funds, staff salary 
                differentials for years of employment shall not 
                be included in such determinations.
                    ``(C) Exclusions.--A local educational 
                agency need not include unpredictable changes 
                in student enrollment or personnel assignments 
                that occur after the beginning of a school year 
                in determining comparability of services under 
                this subsection.
            ``(3) Procedures and records.--Each local 
        educational agency assisted under this part shall--
                    ``(A) develop procedures for compliance 
                with this subsection; and
                    ``(B) maintain records that are updated 
                biennially documenting such agency's compliance 
                with this subsection.
            ``(4) Inapplicability.--This subsection shall not 
        apply to a local educational agency that does not have 
        more than one building for each grade span.
            ``(5) Compliance.--For the purpose of determining 
        compliance with paragraph (1), a local educational 
        agency may exclude State and local funds expended for--
                    ``(A) language instruction educational 
                programs; and
                    ``(B) the excess costs of providing 
                services to children with disabilities as 
                determined by the local educational agency.
      ``(d) Exclusion of Funds.--For the purpose of complying 
with subsections (b) and (c), a State educational agency or 
local educational agency may exclude supplemental State or 
local funds expended in any school attendance area or school 
for programs that meet the intent and purposes of this part.

``SEC. 1120B. COORDINATION REQUIREMENTS.

    ``(a) In General.--Each local educational agency receiving 
assistance under this part shall carry out the activities 
described in subsection (b) with Head Start agencies and, if 
feasible, other entities carrying out early childhood 
development programs such as the Early Reading First program.
    ``(b) Activities.--The activities referred to in subsection 
(a) are activities that increase coordination between the local 
educational agency and a Head Start agency and, if feasible, 
other entities carrying out early childhood development 
programs, such as the Early Reading First program, serving 
children who will attend the schools of the local educational 
agency, including--
            ``(1) developing and implementing a systematic 
        procedure for receiving records regarding such 
        children, transferred with parental consent from a Head 
        Start program or, where applicable, another early 
        childhood development program such as the Early Reading 
        First program;
            ``(2) establishing channels of communication 
        between school staff and their counterparts (including 
        teachers, social workers, and health staff) in such 
        Head Start agencies or other entities carrying out 
        early childhood development programs such as the Early 
        Reading First program, as appropriate, to facilitate 
        coordination of programs;
            ``(3) conducting meetings involving parents, 
        kindergarten or elementary school teachers, and Head 
        Start teachers or, if appropriate, teachers from other 
        early childhood development programs such as the Early 
        Reading First program, to discuss the developmental and 
        other needs of individual children;
            ``(4) organizing and participating in joint 
        transition-related training of school staff, Head Start 
        program staff, Early Reading First program staff, and, 
        where appropriate, other early childhood development 
        program staff; and
            ``(5) linking the educational services provided by 
        such local educational agency with the services 
        provided by local Head Start agencies and entities 
        carrying out Early Reading First programs.
    ``(c) Coordination of Regulations.--The Secretary shall 
work with the Secretary of Health and Human Services to 
coordinate regulations promulgated under this part with 
regulations promulgated under the Head Start Act.

                        ``Subpart 2--Allocations

``SEC. 1121. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF THE 
                    INTERIOR.

    ``(a) Reservation of Funds.--From the amount appropriated 
for payments to States for any fiscal year under section 
1002(a) and 1125A(f), the Secretary shall reserve a total of 1 
percent to provide assistance to--
            ``(1) the outlying areas in the amount determined 
        in accordance with subsection (b); and
            ``(2) the Secretary of the Interior in the amount 
        necessary to make payments pursuant to subsection (d).
    ``(b) Assistance to Outlying Areas.--
            ``(1) Funds reserved.--From the amount made 
        available for any fiscal year under subsection (a), the 
        Secretary shall award grants to local educational 
        agencies in the outlying areas.
            ``(2) Competitive grants.--Until each appropriate 
        outlying area enters into an agreement for extension of 
        United States educational assistance under the Compact 
        of Free Association after the date of enactment of the 
        No Child Left Behind Act of 2001, the Secretary shall 
        carry out the competition described 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 amount 
        of such payment may not exceed, for each such child, 
        the greater of--
                    ``(A) 40 percent of the average per-pupil 
                expenditure in the State in which the agency is 
                located; or
                    ``(B) 48 percent of such expenditure in the 
                United States.

``SEC. 1122. ALLOCATIONS TO STATES.

    ``(a) Allocation Formula.--Of the amount appropriated under 
section 1002(a) to carry out this part for each of fiscal years 
2002 through 2007 (referred to in this subsection as the 
current fiscal year)--
            ``(1) an amount equal to the amount made available 
        to carry out section 1124 for fiscal year 2001 shall be 
        allocated in accordance with section 1124;
            ``(2) an amount equal to the amount made available 
        to carry out section 1124A for fiscal year 2001 shall 
        be allocated in accordance with section 1124A; and
            ``(3) an amount equal to 100 percent of the amount, 
        if any, by which the amount made available to carry out 
        sections 1124, 1124A, and 1125 for the current fiscal 
        year for which the determination is made exceeds the 
        amount available to carry out sections 1124 and 1124A 
        for fiscal year 2001 shall be allocated in accordance 
        with section 1125.
    ``(b) Adjustments Where Necessitated by Appropriations.--
            ``(1) In general.--If the sums available under this 
        subpart for any fiscal year are insufficient to pay the 
        full amounts that all local educational agencies in 
        States are eligible to receive under sections 1124, 
        1124A, and 1125 for such year, the Secretary shall 
        ratably reduce the allocations to such local 
        educational agencies, subject to subsections (c) and 
        (d) of this section.
            ``(2) Additional funds.--If additional funds become 
        available for making payments under sections 1124, 
        1124A, and 1125 for such fiscal year, allocations that 
        were reduced under paragraph (1) shall be increased on 
        the same basis as they were reduced.
    ``(c) Hold-Harmless Amounts.--
            ``(1) Amounts for sections 1124, 1124a, and 1125.--
        For each fiscal year, the amount made available to each 
        local educational agency under each of sections 1124, 
        1124A, and 1125 shall be--
                    ``(A) not less than 95 percent of the 
                amount made available for the preceding fiscal 
                year if the number of children counted for 
                grants under section 1124 is not less than 30 
                percent of the total number of children aged 5 
                to 17 years, inclusive, in the local 
                educational agency;
                    ``(B) not less than 90 percent of the 
                amount made available for the preceding fiscal 
                year if the percentage described in 
                subparagraph (A) is between 15 percent and 30 
                percent; and
                    ``(C) not less than 85 percent of the 
                amount made available for the preceding fiscal 
                year if the percentage described in 
                subparagraph (A) is below 15 percent.
            ``(2) Payments.--If sufficient funds are 
        appropriated, the amounts described in paragraph (1) 
        shall be paid to all local educational agencies that 
        received grants under section 1124A for the preceding 
        fiscal year, regardless of whether the local 
        educational agency meets the minimum eligibility 
        criteria for that fiscal year described in section 
        1124A(a)(1)(A) except that a local educational agency 
        that does not meet such minimum eligibility criteria 
        for 4 consecutive years shall no longer be eligible to 
        receive a hold harmless amount referred to in paragraph 
        (1).
            ``(3) Applicability.--Notwithstanding any other 
        provision of law, the Secretary shall not take into 
        consideration the hold-harmless provisions of this 
        subsection for any fiscal year for purposes of 
        calculating State or local allocations for the fiscal 
        year under any program administered by the Secretary 
        other than a program authorized under this part.
            ``(4) Population data.--For any fiscal year for 
        which the Secretary calculates grants on the basis of 
        population data for counties, the Secretary shall apply 
        the hold-harmless percentages in paragraphs (1) and (2) 
        to counties and, if the Secretary's allocation for a 
        county is not sufficient to meet the hold-harmless 
        requirements of this subsection for every local 
        educational agency within that county, the State 
        educational agency shall reallocate funds 
        proportionately from all other local educational 
        agencies in the State that are receiving funds in 
        excess of the hold-harmless amounts specified in this 
        subsection.
    ``(d) Ratable Reductions.--
            ``(1) In general.--If the sums made available under 
        this subpart for any fiscal year are insufficient to 
        pay the full amounts that local educational agencies in 
        all States are eligible to receive under subsection (c) 
        for such year, the Secretary shall ratably reduce such 
        amounts for such year.
            ``(2) Additional funds.--If additional funds become 
        available for making payments under subsection (c) for 
        such fiscal year, amounts that were reduced under 
        paragraph (1) shall be increased on the same basis as 
        such amounts were reduced.
    ``(e) Definition.--For the purpose of this section and 
sections 1124, 1124A, 1125, and 1125A, the term ``State'' means 
each of the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico.

``SEC. 1124. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Amount of Grants.--
            ``(1) Grants for local educational agencies and 
        puerto rico.--Except as provided in paragraph (4) and 
        in section 1126, the grant that a local educational 
        agency is eligible to receive under this section for a 
        fiscal year is the amount determined by multiplying--
                    ``(A) the number of children counted under 
                subsection (c); and
                    ``(B) 40 percent of the average per-pupil 
                expenditure in the State, except that the 
                amount determined under this subparagraph shall 
                not be less than 32 percent, or more than 48 
                percent, of the average per-pupil expenditure 
                in the United States.
            ``(2) Calculation of grants.--
                    ``(A) Allocations to local educational 
                agencies.--The Secretary shall calculate grants 
                under this section on the basis of the number 
                of children counted under subsection (c) for 
                local educational agencies, unless the 
                Secretary and the Secretary of Commerce 
                determine that some or all of those data are 
                unreliable or that their use would be otherwise 
                inappropriate, in which case--
                            ``(i) the 2 Secretaries shall 
                        publicly disclose the reasons for their 
                        determination in detail; and
                            ``(ii) paragraph (3) shall apply.
                    ``(B) Allocations to large and small local 
                educational agencies.--
                            ``(i) For any fiscal year to which 
                        this paragraph applies, the Secretary 
                        shall calculate grants under this 
                        section for each local educational 
                        agency.
                            ``(ii) The amount of a grant under 
                        this section for each large local 
                        educational agency shall be the amount 
                        determined under clause (i).
                            ``(iii) For small local educational 
                        agencies, the State educational agency 
                        may either--
                                    ``(I) distribute grants 
                                under this section in amounts 
                                determined by the Secretary 
                                under clause (i); or
                                    ``(II) use an alternative 
                                method approved by the 
                                Secretary to distribute the 
                                portion of the State's total 
                                grants under this section that 
                                is based on those small 
                                agencies.
                            ``(iv) An alternative method under 
                        clause (iii)(II) shall be based on 
                        population data that the State 
                        educational agency determines best 
                        reflect the current distribution of 
                        children in poor families among the 
                        State's small local educational 
                        agencies that meet the eligibility 
                        criteria of subsection (b).
                            ``(v) If a small local educational 
                        agency is dissatisfied with the 
                        determination of its grant by the State 
                        educational agency under clause 
                        (iii)(II), it may appeal that 
                        determination to the Secretary, who 
                        shall respond not later than 45 days 
                        after receipt of such appeal.
                            ``(vi) As used in this 
                        subparagraph--
                                    ``(I) the term ``large 
                                local educational agency'' 
                                means a local educational 
                                agency serving an area with a 
                                total population of 20,000 or 
                                more; and
                                    ``(II) the term ``small 
                                local educational agency'' 
                                means a local educational 
                                agency serving an area with a 
                                total population of less than 
                                20,000.
            ``(3) Allocations to counties.--
                    ``(A) Calculation.--For any fiscal year to 
                which this paragraph applies, the Secretary 
                shall calculate grants under this section on 
                the basis of the number of children counted 
                under subsection (c) for counties, and State 
                educational agencies shall suballocate county 
                amounts to local educational agencies, in 
                accordance with regulations issued by the 
                Secretary.
                    ``(B) Direct allocations.--In any State in 
                which a large number of local educational 
                agencies overlap county boundaries, or for 
                which the State believes it has data that would 
                better target funds than allocating them by 
                county, the State educational agency may apply 
                to the Secretary for authority to make the 
                allocations under this subpart for a particular 
                fiscal year directly to local educational 
                agencies without regard to counties.
                    ``(C) Allocations to local educational 
                agencies.--If the Secretary approves the State 
                educational agency's application under 
                subparagraph (B), the State educational agency 
                shall provide the Secretary an assurance that 
                such allocations shall be made--
                            ``(i) using precisely the same 
                        factors for determining a grant as are 
                        used under this subpart; or
                            ``(ii) using data that the State 
                        educational agency submits to the 
                        Secretary for approval that more 
                        accurately target poverty.
                    ``(D) Appeal.--The State educational agency 
                shall provide the Secretary an assurance that 
                it will establish a procedure through which a 
                local educational agency that is dissatisfied 
                with its determinations under subparagraph (B) 
                may appeal directly to the Secretary for a 
                final determination.
            ``(4) Puerto rico.--
                    ``(A) In general.--For each fiscal year, 
                the grant that the Commonwealth of Puerto Rico 
                shall be eligible to receive under this section 
                shall be the amount determined by multiplying 
                the number of children counted under subsection 
                (c) for the Commonwealth of Puerto Rico by the 
                product of--
                            ``(i) subject to subparagraph (B), 
                        the percentage that the average per-
                        pupil expenditure in the Commonwealth 
                        of Puerto Rico is of the lowest average 
                        per-pupil expenditure of any of the 50 
                        States; and
                            ``(ii) 32 percent of the average 
                        per-pupil expenditure in the United 
                        States.
                    ``(B) Minimum percentage.--The percentage 
                in subparagraph (A)(i) shall not be less than--
                            ``(i) for fiscal year 2002, 77.5 
                        percent;
                            ``(ii) for fiscal year 2003, 80.0 
                        percent;
                            ``(iii) for fiscal year 2004, 82.5 
                        percent;
                            ``(iv) for fiscal year 2005, 85.0 
                        percent;
                            ``(v) for fiscal year 2006, 92.5 
                        percent; and
                            ``(vi) for fiscal year 2007 and 
                        succeeding fiscal years, 100.0 percent.
                    ``(C) Limitation.--If the application of 
                subparagraph (B) would result in any of the 50 
                States or the District of Columbia receiving 
                less under this subpart than it received under 
                this subpart for the preceding fiscal year, the 
                percentage in subparagraph (A) shall be the 
                greater of--
                            ``(i) the percentage in 
                        subparagraph (A)(i);
                            ``(ii) the percentage specified in 
                        subparagraph (B) for the preceding 
                        fiscal year; or
                            ``(iii) the percentage used for the 
                        preceding fiscal year.
    ``(b) Minimum Number of Children To Qualify.--A local 
educational agency is eligible for a basic grant under this 
section for any fiscal year only if the number of children 
counted under subsection (c) for that agency is both--
            ``(1) 10 or more; and
            ``(2) more than 2 percent of the total school-age 
        population in the agency's jurisdiction.
    ``(c) Children To Be Counted.--
            ``(1) Categories of children.--The number of 
        children to be counted for purposes of this section is 
        the aggregate of--
                    ``(A) the number of children aged 5 to 17, 
                inclusive, in the school district of the local 
                educational agency from families below the 
                poverty level as determined under paragraph 
                (2);
                    ``(B) the number of children (determined 
                under paragraph (4) for either the preceding 
                year as described in that paragraph, or for the 
                second preceding year, as the Secretary finds 
                appropriate) aged 5 to 17, inclusive, in the 
                school district of such agency in institutions 
                for neglected and delinquent children (other 
                than such institutions operated by the United 
                States), but not counted pursuant to subpart 1 
                of part D for the purposes of a grant to a 
                State agency, or being supported in foster 
                homes with public funds; and
                    ``(C) the number of children aged 5 to 17, 
                inclusive, in the school district of such 
                agency from families above the poverty level as 
                determined under paragraph (4).
            ``(2) Determination of number of children.--For the 
        purposes of this section, the Secretary shall determine 
        the number of children aged 5 to 17, inclusive, from 
        families below the poverty level on the basis of the 
        most recent satisfactory data, described in paragraph 
        (3), available from the Department of Commerce. The 
        District of Columbia and the Commonwealth of Puerto 
        Rico shall be treated as individual local educational 
        agencies. If a local educational agency contains 2 or 
        more counties in their entirety, then each county will 
        be treated as if such county were a separate local 
        educational agency for purposes of calculating grants 
        under this part. The total of grants for such counties 
        shall be allocated to such a local educational agency, 
        which local educational agency shall distribute to 
        schools in each county within such agency a share of 
        the local educational agency's total grant that is no 
        less than the county's share of the population counts 
        used to calculate the local educational agency's grant.
            ``(3) Population updates.--
                    ``(A) In general.--In fiscal year 2002 and 
                each subsequent fiscal year, the Secretary 
                shall use updated data on the number of 
                children, aged 5 to 17, inclusive, from 
                families below the poverty level for counties 
                or local educational agencies, published by the 
                Department of Commerce, unless the Secretary 
                and the Secretary of Commerce determine that 
                the use of the updated population data would be 
                inappropriate or unreliable. If appropriate and 
                reliable data are not available annually, the 
                Secretary shall use data which are updated 
                every 2 years.
                    ``(B) Inappropriate or unreliable data.--If 
                the Secretary and the Secretary of Commerce 
                determine that some or all of the data referred 
                to in subparagraph (A) are inappropriate or 
                unreliable, the Secretary and the Secretary of 
                Commerce shall publicly disclose their reasons.
                    ``(C) Criteria of poverty.--In determining 
                the families that are below the poverty level, 
                the Secretary shall use the criteria of poverty 
                used by the Bureau of the Census in compiling 
                the most recent decennial census, as the 
                criteria have been updated by increases in the 
                Consumer Price Index for All Urban Consumers, 
                published by the Bureau of Labor Statistics.
            ``(4) Other children to be counted.--
                    ``(A) For the purpose of this section, the 
                Secretary shall determine the number of 
                children aged 5 to 17, inclusive, from families 
                above the poverty level on the basis of the 
                number of such children from families receiving 
                an annual income, in excess of the current 
                criteria of poverty, from payments under a 
                State program funded under part A of title IV 
                of the Social Security Act; and in making such 
                determinations, the Secretary shall use the 
                criteria of poverty used by the Bureau of the 
                Census in compiling the most recent decennial 
                census for a family of 4 in such form as those 
                criteria have been updated by increases in the 
                Consumer Price Index for all urban consumers, 
                published by the Bureau of Labor Statistics.
                    ``(B) The Secretary shall determine the 
                number of such children and the number of 
                children aged 5 through 17 living in 
                institutions for neglected or delinquent 
                children, or being supported in foster homes 
                with public funds, on the basis of the caseload 
                data for the month of October of the preceding 
                fiscal year (using, in the case of children 
                described in the preceding sentence, the 
                criteria of poverty and the form of such 
                criteria required by such sentence which were 
                determined for the calendar year preceding such 
                month of October) or, to the extent that such 
                data are not available to the Secretary before 
                January of the calendar year in which the 
                Secretary's determination is made, then on the 
                basis of the most recent reliable data 
                available to the Secretary at the time of such 
                determination.
                    ``(C) Except for the data on children 
                living in institutions for neglected or 
                delinquent children, the Secretary of Health 
                and Human Services shall collect and transmit 
                the information required by this subparagraph 
                to the Secretary not later than January 1 of 
                each year.
                    ``(D) For the purpose of this section, the 
                Secretary shall consider all children who are 
                in correctional institutions to be living in 
                institutions for delinquent children.
            ``(5) Estimate.--When requested by the Secretary, 
        the Secretary of Commerce shall make a special updated 
        estimate of the number of children of such ages who are 
        from families below the poverty level (as determined 
        under paragraph (1)(A)) in each school district, and 
        the Secretary is authorized to pay (either in advance 
        or by way of reimbursement) the Secretary of Commerce 
        the cost of making this special estimate. The Secretary 
        of Commerce shall give consideration to any request of 
        the chief executive of a State for the collection of 
        additional census information.
    ``(d) State Minimum.--Notwithstanding section 1122, the 
aggregate amount allotted for all local educational agencies 
within a State may not be less than the lesser of--
            ``(1) 0.25 percent of the total amount allocated to 
        States under this section for fiscal year 2001, plus 
        0.35 percent of the total amount allocated to States 
        under this section in excess of the amount allocated 
        for fiscal year 2001; or
            ``(2) the average of--
                    ``(A) the amount calculated in paragraph 
                (1), above; and
                    ``(B) the number of children in such State 
                counted under subsection (c) in the fiscal year 
                multiplied by 150 percent of the national 
                average per-pupil payment made with funds 
                available under this section for that year.

``SEC. 1124A. CONCENTRATION GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Eligibility for and Amount of Grants.--
            ``(1) In general.--(A) Except as otherwise provided 
        in this paragraph, each local educational agency which 
        is eligible for a grant under section 1124 for any 
        fiscal year is eligible for an additional grant under 
        this section for that fiscal year if the number of 
        children counted under section 1124(c) in the agency 
        exceeds either--
                    ``(i) 6,500; or
                    ``(ii) 15 percent of the total number of 
                children aged 5 through 17 in the agency.
            ``(B) Notwithstanding section 1122, no State shall 
        receive less than the lesser of--
                    ``(i) 0.25 percent of the total amount 
                allocated to States under this section for 
                fiscal year 2001, plus 0.35 percent of the 
                total amount allocated to States under this 
                section in excess of the amount allocated for 
                fiscal year 2001; or
                    ``(ii) the average of--
                            ``(I) the amount calculated under 
                        clause (i); and
                            ``(II) the greater of--
                                    ``(aa) $340,000; or
                                    ``(bb) the number of 
                                children in such State counted 
                                for purposes of this section in 
                                that fiscal year multiplied by 
                                150 percent of the national 
                                average per-pupil payment made 
                                with funds available under this 
                                section for that year.
            ``(2) Determination.--For each county or local 
        educational agency eligible to receive an additional 
        grant under this section for any fiscal year, the 
        Secretary shall determine the product of--
                    ``(A) the number of children counted under 
                section 1124(c) for that fiscal year; and
                    ``(B) the amount in section 1124(a)(1)(B) 
                for each State except the Commonwealth of 
                Puerto Rico, and the amount in section 
                1124(a)(4) for the Commonwealth of Puerto Rico.
            ``(3) Amount.--The amount of the additional grant 
        for which an eligible local educational agency or 
        county is eligible under this section for any fiscal 
        year shall be an amount which bears the same ratio to 
        the amount available to carry out this section for that 
        fiscal year as the product determined under paragraph 
        (2) for such local educational agency for that fiscal 
        year bears to the sum of such products for all local 
        educational agencies in the United States for that 
        fiscal year.
            ``(4) Local allocations.--(A) Grant amounts under 
        this section shall be determined in accordance with 
        section 1124(a)(2), (3) and (4).
            ``(B) For any fiscal year for which the Secretary 
        allocates funds under this section on the basis of 
        counties, a State may reserve not more than 2 percent 
        of its allocation under this section to make grants to 
        local educational agencies that meet the criteria of 
        paragraph (1)(A)(i) or (ii) and are in ineligible 
        counties that do not meet these criteria.
    ``(b) Small States.--In any State for which on the date of 
enactment of the No Child Left Behind Act of 2001 the number of 
children counted under Section 1124(c) is less than 0.25 
percent of the number of those children counted for all States, 
the State educational agency shall allocate funds under this 
section among the local educational agencies in the State 
either--
            ``(1) in accordance with paragraphs (2) and (4) of 
        subsection (a); or
            ``(2) based on their respective concentrations and 
        numbers of children counted under section 1124(c), 
        except that only those local educational agencies with 
        concentrations or numbers of children counted under 
        section 1124(c) that exceed the statewide average 
        percentage of such children or the statewide average 
        number of such children shall receive any funds on the 
        basis of this paragraph.

``SEC. 1125. TARGETED GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Eligibility of Local Educational Agencies.--
            ``(1) In general.--A local educational agency in a 
        State is eligible to receive a targeted grant under 
        this section for any fiscal year if--
                    ``(A) the number of children in the local 
                educational agency counted under section 
                1124(c), before application of the weighted 
                child count described in subsection (c), is at 
                least 10; and
                    ``(B) if the number of children counted for 
                grants under section 1124(c), before 
                application of the weighted child count 
                described in subsection (c), is at least 5 
                percent of the total number of children aged 5 
                to 17 years, inclusive, in the school district 
                of the local educational agency.
            ``(2) Special rule.--For any fiscal year for which 
        the Secretary allocates funds under this section on the 
        basis of counties, funds made available as a result of 
        applying this subsection shall be reallocated by the 
        State educational agency to other eligible local 
        educational agencies in the State in proportion to the 
        distribution of other funds under this section.
    ``(b) Grants for Local Educational Agencies, the District 
of Columbia, and the Commonwealth of Puerto Rico.--
            ``(1) In general.--The amount of the grant that a 
        local educational agency in a State (other than the 
        Commonwealth of Puerto Rico) is eligible to receive 
        under this section for any fiscal year shall be the 
        product of--
                    ``(A) the weighted child count determined 
                under subsection (c); and
                    ``(B) the amount determined under section 
                1124(a)(1)(B).
            ``(2) Puerto rico.--For each fiscal year, the 
        amount of the grant the Commonwealth of Puerto Rico is 
        eligible to receive under this section shall be equal 
        to the number of children counted under subsection (c) 
        for the Commonwealth of Puerto Rico, multiplied by the 
        amount determined in section 1124(a)(4) for the 
        Commonwealth of Puerto Rico.
    ``(c) Weighted Child Count.--
            ``(1) Weights for allocations to counties.--
                    ``(A) In general.--For each fiscal year for 
                which the Secretary uses county population data 
                to calculate grants, the weighted child count 
                used to determine a county's allocation under 
                this section is the larger of the 2 amounts 
                determined under subparagraphs (B) and (C).
                    ``(B) By percentage of children.--The 
                amount referred to in subparagraph (A) is 
                determined by adding--
                            ``(i) the number of children 
                        determined under section 1124(c) for 
                        that county who constitute not more 
                        than 15.00 percent, inclusive, of the 
                        county's total population aged 5 to 17, 
                        inclusive, multiplied by 1.0;
                            ``(ii) the number of such children 
                        who constitute more than 15.00 percent, 
                        but not more than 19.00 percent, of 
                        such population, multiplied by 1.75;
                            ``(iii) the number of such children 
                        who constitute more than 19.00 percent, 
                        but not more than 24.20 percent, of 
                        such population, multiplied by 2.5;
                            ``(iv) the number of such children 
                        who constitute more than 24.20 percent, 
                        but not more than 29.20 percent, of 
                        such population, multiplied by 3.25; 
                        and
                            ``(v) the number of such children 
                        who constitute more than 29.20 percent 
                        of such population, multiplied by 4.0.
                    ``(C) By number of children.--The amount 
                referred to in subparagraph (A) is determined 
                by adding--
                            ``(i) the number of children 
                        determined under section 1124(c) who 
                        constitute not more than 2,311, 
                        inclusive, of the county's total 
                        population aged 5 to 17, inclusive, 
                        multiplied by 1.0;
                            ``(ii) the number of such children 
                        between 2,312 and 7,913, inclusive, in 
                        such population, multiplied by 1.5;
                            ``(iii) the number of such children 
                        between 7,914 and 23,917, inclusive, in 
                        such population, multiplied by 2.0;
                            ``(iv) the number of such children 
                        between 23,918 and 93,810, inclusive, 
                        in such population, multiplied by 2.5; 
                        and
                            ``(v) the number of such children 
                        in excess of 93,811 in such population, 
                        multiplied by 3.0.
                    ``(D) Puerto rico.--Notwithstanding 
                subparagraph (A), the weighting factor for the 
                Commonwealth of Puerto Rico under this 
                paragraph shall not be greater than the total 
                number of children counted under section 
                1124(c) multiplied by 1.82.
            ``(2) Weights for allocations to local educational 
        agencies.--
                    ``(A) In general.--For each fiscal year for 
                which the Secretary uses local educational 
                agency data, the weighted child count used to 
                determine a local educational agency's grant 
                under this section is the larger of the 2 
                amounts determined under subparagraphs (B) and 
                (C).
                    ``(B) By percentage of children.--The 
                amount referred to in subparagraph (A) is 
                determined by adding--
                            ``(i) the number of children 
                        determined under section 1124(c) for 
                        that local educational agency who 
                        constitute not more than 15.58 percent, 
                        inclusive, of the agency's total 
                        population aged 5 to 17, inclusive, 
                        multiplied by 1.0;
                            ``(ii) the number of such children 
                        who constitute more than 15.58 percent, 
                        but not more than 22.11 percent, of 
                        such population, multiplied by 1.75;
                            ``(iii) the number of such children 
                        who constitute more than 22.11 percent, 
                        but not more than 30.16 percent, of 
                        such population, multiplied by 2.5;
                            ``(iv) the number of such children 
                        who constitute more than 30.16 percent, 
                        but not more than 38.24 percent, of 
                        such population, multiplied by 3.25; 
                        and
                            ``(v) the number of such children 
                        who constitute more than 38.24 percent 
                        of such population, multiplied by 4.0.
                    ``(C) By number of children.--The amount 
                referred to in subparagraph (A) is determined 
                by adding--
                            ``(i) the number of children 
                        determined under section 1124(c) who 
                        constitute not more than 691, 
                        inclusive, of the agency's total 
                        population aged 5 to 17, inclusive, 
                        multiplied by 1.0;
                            ``(ii) the number of such children 
                        between 692 and 2,262, inclusive, in 
                        such population, multiplied by 1.5;
                            ``(iii) the number of such children 
                        between 2,263 and 7,851, inclusive, in 
                        such population, multiplied by 2.0;
                            ``(iv) the number of such children 
                        between 7,852 and 35,514, inclusive, in 
                        such population, multiplied by 2.5; and
                            ``(v) the number of such children 
                        in excess of 35,514 in such population, 
                        multiplied by 3.0.
                    ``(D) Puerto rico.--Notwithstanding 
                subparagraph (A), the weighting factor for the 
                Commonwealth of Puerto Rico under this 
                paragraph shall not be greater than the total 
                number of children counted under section 
                1124(c) multiplied by 1.82.
    ``(d) Calculation of Grant Amounts.--Grant amounts under 
this section shall be calculated in the same manner as grant 
amounts are calculated under section 1124(a) (2) and (3).
    ``(e) State Minimum.--Notwithstanding any other provision 
of this section or section 1122, from the total amount 
available for any fiscal year to carry out this section, each 
State shall be allotted at least the lesser of--
            ``(1) 0.35 percent of the total amount available to 
        carry out this section; or
            ``(2) the average of--
                    ``(A) 0.35 percent of the total amount 
                available to carry out this section; and
                    ``(B) 150 percent of the national average 
                grant under this section per child described in 
                section 1124(c), without application of a 
                weighting factor, multiplied by the State's 
                total number of children described in section 
                1124(c), without application of a weighting 
                factor.

``SEC. 1125AA. ADEQUACY OF FUNDING OF TARGETED GRANTS TO LOCAL 
                    EDUCATIONAL AGENCIES IN FISCAL YEARS AFTER FISCAL 
                    YEAR 2001.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) The current Basic Grant Formula for the 
        distribution of funds under this part often does not 
        provide funds for the economically disadvantaged 
        students for which such funds are targeted.
            ``(2) Any school district in which more than 2 
        percent of the students live below the poverty level 
        qualifies for funding under the Basic Grant Formula. As 
        a result, 9 out of every 10 school districts in the 
        country receive some form of aid under the Formula.
            ``(3) 58 percent of all schools receive at least 
        some funding under this part, including many suburban 
        schools with predominantly well-off students.
            ``(4) 1 out of every 5 schools with concentrations 
        of poor students between 50 and 75 percent receive no 
        funding at all under this part.
            ``(5) In passing the Improving America's Schools 
        Act in 1994, Congress declared that grants under this 
        part would more sharply target high poverty schools by 
        using the Targeted Grant Formula, but annual 
        appropriation Acts have prevented the use of that 
        Formula.
            ``(6) The advantage of the Targeted Grant Formula 
        over other funding formulas under this part is that the 
        Targeted Grant Formula provides increased grants per 
        poor child as the percentage of economically 
        disadvantaged children in a school district increases.
            ``(7) Studies have found that the poverty of a 
        child's family is much more likely to be associated 
        with educational disadvantage if the family lives in an 
        area with large concentrations of poor families.
            ``(8) States with large populations of high poverty 
        students would receive significantly more funding if 
        more funds under this part were allocated through the 
        Targeted Grant Formula.
            ``(9) Congress has an obligation to allocate funds 
        under this part so that such funds will positively 
        affect the largest number of economically disadvantaged 
        students.
    ``(b) Limitation on Allocation of Title I Funds Contingent 
on Adequate Funding of Targeted Grants.--Pursuant to section 
1122, the total amount allocated in any fiscal year after 
fiscal year 2001 for programs and activities under this part 
shall not exceed the amount allocated in fiscal year 2001 for 
such programs and activities unless the amount available for 
targeted grants to local educational agencies under section 
1125 in the applicable fiscal year meets the requirements of 
section 1122(a).

``SEC. 1125A. EDUCATION FINANCE INCENTIVE GRANT PROGRAM.

    ``(a) Grants.--From funds appropriated under subsection (f) 
the Secretary is authorized to make grants to States, from 
allotments under subsection (b), to carry out the programs and 
activities of this part.
    ``(b) Distribution Based Upon Fiscal Effort and Equity.--
            ``(1) In general.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), funds appropriated pursuant 
                to subsection (f) shall be allotted to each 
                State based upon the number of children counted 
                under section 1124(c) in such State multiplied 
                by the product of--
                            ``(i) the amount in section 
                        1124(a)(1)(B) for all States other than 
                        the Commonwealth of Puerto Rico, except 
                        that the amount determined under that 
                        subparagraph shall not be less that 34 
                        percent or more than 46 percent of the 
                        average per pupil expenditure in the 
                        United States, and the amount in 
                        section 1124(a)(4) for the Commonwealth 
                        of Puerto Rico, except that the amount 
                        in section 1124(a)(4)(A)(ii) shall be 
                        34 percent of the average per pupil 
                        expenditure in the United States; 
                        multiplied by
                            ``(ii) such State's effort factor 
                        described in paragraph (2); multiplied 
                        by
                            ``(iii) 1.30 minus such State's 
                        equity factor described in paragraph 
                        (3).
                    ``(B) State minimum.--Notwithstanding any 
                other provision of this section or section 
                1122, from the total amount available for any 
                fiscal year to carry out this section, each 
                State shall be allotted at least the lesser 
                of--
                            ``(i) 0.35 percent of total 
                        appropriations; or
                            ``(ii) the average of--
                                    ``(I) 0.35 percent of the 
                                total amount available to carry 
                                out this section; and
                                    ``(II) 150 percent of the 
                                national average grant under 
                                this section per child 
                                described in section 1124(c), 
                                without application of a 
                                weighting factor, multiplied by 
                                the State's total number of 
                                children described in section 
                                1124(c), without application of 
                                a weighting factor.
            ``(2) Effort factor.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the effort factor for a State 
                shall be determined in accordance with the 
                succeeding sentence, except that such factor 
                shall not be less than 0.95 nor greater than 
                1.05. The effort factor determined under this 
                sentence shall be a fraction the numerator of 
                which is the product of the 3-year average per-
                pupil expenditure in the State multiplied by 
                the 3-year average per capita income in the 
                United States and the denominator of which is 
                the product of the 3-year average per capita 
                income in such State multiplied by the 3-year 
                average per-pupil expenditure in the United 
                States.
                    ``(B) Commonwealth of puerto rico.--The 
                effort factor for the Commonwealth of Puerto 
                Rico shall be equal to the lowest effort factor 
                calculated under subparagraph (A) for any 
                State.
            ``(3) Equity factor.--
                    ``(A) Determination.--
                            ``(i) In general.--Except as 
                        provided in subparagraph (B), the 
                        Secretary shall determine the equity 
                        factor under this section for each 
                        State in accordance with clause (ii).
                            ``(ii) Computation.--
                                    ``(I) In general.--For each 
                                State, the Secretary shall 
                                compute a weighted coefficient 
                                of variation for the per-pupil 
                                expenditures of local 
                                educational agencies in 
                                accordance with subclauses 
                                (II), (III), and (IV).
                                    ``(II) Variation.--In 
                                computing coefficients of 
                                variation, the Secretary shall 
                                weigh the variation between 
                                per-pupil expenditures in each 
                                local educational agency and 
                                the average per-pupil 
                                expenditures in the State 
                                according to the number of 
                                pupils served by the local 
                                educational agency.
                                    ``(III) Number of pupils.--
                                In determining the number of 
                                pupils under this paragraph 
                                served by each local 
                                educational agency and in each 
                                State, the Secretary shall 
                                multiply the number of children 
                                counted under section 1124(c) 
                                by a factor of 1.4.
                                    ``(IV) Enrollment 
                                requirement.--In computing 
                                coefficients of variation, the 
                                Secretary shall include only 
                                those local educational 
                                agencies with an enrollment of 
                                more than 200 students.
                    ``(B) Special rule.--The equity factor for 
                a State that meets the disparity standard 
                described in section 222.162 of title 34, Code 
                of Federal Regulations (as such section was in 
                effect on the day preceding the date of 
                enactment of the No Child Left Behind Act of 
                2001) or a State with only 1 local educational 
                agency shall be not greater than 0.10.
    ``(c) Use of Funds; Eligibility of Local Educational 
Agencies.--All funds awarded to each State under this section 
shall be allocated to local educational agencies under the 
following provisions. Within local educational agencies, funds 
allocated under this section shall be distributed to schools on 
a basis consistent with section 1113, and may only be used to 
carry out activities under this part. A local educational 
agency in a State is eligible to receive a targeted grant under 
this section for any fiscal year if--
            ``(A) the number of children in the local 
        educational agency counted under section 1124(c), 
        before application of the weighted child count 
        described in paragraph (3), is at least 10; and
            ``(B) if the number of children counted for grants 
        under section 1124(c), before application of the 
        weighted child count described in paragraph (3), is at 
        least 5 percent of the total number of children aged 5 
        to 17 years, inclusive, in the school district of the 
        local educational agency.
    ``For any fiscal year for which the Secretary allocates 
funds under this section on the basis of counties, funds made 
available as a result of applying this subsection shall be 
reallocated by the State educational agency to other eligible 
local educational agencies in the State in proportion to the 
distribution of other funds under this section.
    ``(d) Allocation of Funds to Eligible Local Educational 
Agencies.--Funds received by States under this section shall be 
allocated within States to eligible local educational agencies 
on the basis of weighted child counts calculated in accordance 
with paragraph (1), (2), or (3), as appropriate for each State.
            ``(1) States with an equity factor less than .10.--
        In States with an equity factor less than .10, the 
        weighted child counts referred to in subsection (d) 
        shall be calculated as follows:
                    ``(A) Weights for allocations to 
                counties.--
                            ``(i) In general.--For each fiscal 
                        year for which the Secretary uses 
                        county population data to calculate 
                        grants, the weighted child count used 
                        to determine a county's allocation 
                        under this section is the larger of the 
                        2 amounts determined under clauses (ii) 
                        and (iii).
                            ``(ii) By percentage of children.--
                        The amount referred to in clause ``(i) 
                        is determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) for that county 
                                who constitute not more than 
                                15.00 percent, inclusive, of 
                                the county's total population 
                                aged 5 to 17, inclusive, 
                                multiplied by 1.0;
                                    ``(II) the number of such 
                                children who constitute more 
                                than 15.00 percent, but not 
                                more than 19.00 percent, of 
                                such population, multiplied by 
                                1.75;
                                    ``(III) the number of such 
                                children who constitute more 
                                than 19.00 percent, but not 
                                more than 24.20 percent, of 
                                such population, multiplied by 
                                2.5;
                                    ``(IV) the number of such 
                                children who constitute more 
                                than 24.20 percent, but not 
                                more than 29.20 percent, of 
                                such population, multiplied by 
                                3.25; and
                                    ``(V) the number of such 
                                children who constitute more 
                                than 29.20 percent of such 
                                population, multiplied by 4.0.
                            ``(iii) By number of children.--The 
                        amount referred to in clause (i) is 
                        determined by adding
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) who constitute 
                                not more than 2,311, inclusive, 
                                of the county's total 
                                population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                    ``(II) the number of such 
                                children between 2,312 and 
                                7,913, inclusive, in such 
                                population, multiplied by 1.5;
                                    ``(III) the number of such 
                                children between 7,914 and 
                                23,917, inclusive, in such 
                                population, multiplied by 2.0;
                                    ``(IV) the number of such 
                                children between 23,918 and 
                                93,810, inclusive, in such 
                                population, multiplied by 2.5; 
                                and
                                    ``(V) the number of such 
                                children in excess of 93,811 in 
                                such population, multiplied by 
                                3.0.
                    ``(B) Weights for allocations to local 
                educational agencies.--
                            ``(i) In general.--For each fiscal 
                        year for which the Secretary uses local 
                        educational agency data, the weighted 
                        child count used to determine a local 
                        educational agency's grant under this 
                        section is the larger of the 2 amounts 
                        determined under clauses (ii) and 
                        (iii).
                            ``(ii) By percentage of children.--
                        The amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) for that local 
                                educational agency who 
                                constitute not more than 15.58 
                                percent, inclusive, of the 
                                agency's total population aged 
                                5 to 17, inclusive, multiplied 
                                by 1.0;
                                    ``(II) the number of such 
                                children who constitute more 
                                than 15.58 percent, but not 
                                more than 22.11 percent, of 
                                such population, multiplied by 
                                1.75;
                                    ``(III) the number of such 
                                children who constitute more 
                                than 22.11 percent, but not 
                                more than 30.16 percent, of 
                                such population, multiplied by 
                                2.5;
                                    ``(IV) the number of such 
                                children who constitute more 
                                than 30.16 percent, but not 
                                more than 38.24 percent, of 
                                such population, multiplied by 
                                3.25; and
                                    ``(V) the number of such 
                                children who constitute more 
                                than 38.24 percent of such 
                                population, multiplied by 4.0.
                            ``(iii) By number of children.--The 
                        amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) who constitute 
                                not more than 691, inclusive, 
                                of the agency's total 
                                population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                    ``(II) the number of such 
                                children between 692 and 2,262, 
                                inclusive, in such population, 
                                multiplied by 1.5;
                                    ``(III) the number of such 
                                children between 2,263 and 
                                7,851, inclusive, in such 
                                population, multiplied by 2.0;
                                    ``(IV) the number of such 
                                children between 7,852 and 
                                35,514, inclusive, in such 
                                population, multiplied by 2.5; 
                                and
                                    ``(V) the number of such 
                                children in excess of 35,514 in 
                                such population, multiplied by 
                                3.0.
            ``(2) States with an equity factor greater than or 
        equal to .10 and less than .20.--In States with an 
        equity factor greater than or equal to .10 and less 
        than .20,the weighted child counts referred to in 
        subsection (d) shall be calculated as follows:
                    ``(A) Weights for allocations to 
                counties.--
                            ``(i) In general.--For each fiscal 
                        year for which the Secretary uses 
                        county population data to calculate 
                        grants, the weighted child count used 
                        to determine a county's allocation 
                        under this section is the larger of the 
                        2 amounts determined under clauses (ii) 
                        and (iii).
                            ``(ii) By percentage of children.--
                        The amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) for that county 
                                who constitute not more than 
                                15.00 percent, inclusive, of 
                                the county's total population 
                                aged 5 to 17, inclusive, 
                                multiplied by 1.0;
                                    ``(II) the number of such 
                                children who constitute more 
                                than 15.00 percent, but not 
                                more than 19.00 percent, of 
                                such population, multiplied by 
                                1.5;
                                    ``(III) the number of such 
                                children who constitute more 
                                than 19.00 percent, but not 
                                more than 24.20 percent, of 
                                such population, multiplied by 
                                3.0;
                                    ``(IV) the number of such 
                                children who constitute more 
                                than 24.20 percent, but not 
                                more than 29.20 percent, of 
                                such population, multiplied by 
                                4.5; and
                                    ``(V) the number of such 
                                children who constitute more 
                                than 29.20 percent of such 
                                population, multiplied by 6.0.
                            ``(iii) By number of children.--The 
                        amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) who constitute 
                                not more than 2,311, inclusive, 
                                of the county's total 
                                population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                    ``(II) the number of such 
                                children between 2,312 and 
                                7,913, inclusive, in such 
                                population, multiplied by 1.5;
                                    ``(III) the number of such 
                                children between 7,914 and 
                                23,917, inclusive, in such 
                                population, multiplied by 2.25;
                                    ``(IV) the number of such 
                                children between 23,918 and 
                                93,810, inclusive, in such 
                                population, multiplied by 
                                3.375; and
                                    ``(V) the number of such 
                                children in excess of 93,811 in 
                                such population, multiplied by 
                                4.5.
                    ``(B) Weights for allocations to local 
                educational agencies.--
                            ``(i) In general.--For each fiscal 
                        year for which the Secretary uses local 
                        educational agency data, the weighted 
                        child count used to determine a local 
                        educational agency's grant under this 
                        section is the larger of the 2 amounts 
                        determined under clauses (ii) and 
                        (iii).
                            ``(ii) By percentage of children.--
                        The amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) for that local 
                                educational agency who 
                                constitute not more than 15.58 
                                percent, inclusive, of the 
                                agency's total population aged 
                                5 to 17, inclusive, multiplied 
                                by 1.0;
                                    ``(II) the number of such 
                                children who constitute more 
                                than 15.58 percent, but not 
                                more than 22.11 percent, of 
                                such population, multiplied by 
                                1.5;
                                    ``(III) the number of such 
                                children who constitute more 
                                than 22.11 percent, but not 
                                more than 30.16 percent, of 
                                such population, multiplied by 
                                3.0;
                                    ``(IV) the number of such 
                                children who constitute more 
                                than 30.16 percent, but not 
                                more than 38.24 percent, of 
                                such population, multiplied by 
                                4.5; and
                                    ``(V) the number of such 
                                children who constitute more 
                                than 38.24 percent of such 
                                population, multiplied by 6.0.
                            ``(iii) By number of children.--The 
                        amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) who constitute 
                                not more than 691, inclusive, 
                                of the agency's total 
                                population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                    ``(II) the number of such 
                                children between 692 and 2,262, 
                                inclusive, in such population, 
                                multiplied by 1.5;
                                    ``(III) the number of such 
                                children between 2,263 and 
                                7,851, inclusive, in such 
                                population, multiplied by 2.25;
                                    ``(IV) the number of such 
                                children between 7,852 and 
                                35,514, inclusive, in such 
                                population, multiplied by 
                                3.375; and
                                    ``(V) the number of such 
                                children in excess of 35,514 in 
                                such population, multiplied by 
                                4.5.
            ``(3) States with an equity factor greater than or 
        equal to .20.--In States with an equity factor greater 
        than or equal to .20, the weighted child counts 
        referred to in subsection (d) shall be calculated as 
        follows:
                    ``(A) Weights for allocations to 
                counties.--
                            ``(i) In general.--For each fiscal 
                        year for which the Secretary uses 
                        county population data to calculate 
                        grants, the weighted child count used 
                        to determine a county's allocation 
                        under this section is the larger of the 
                        2 amounts determined under clauses (ii) 
                        and (iii).
                            ``(ii) By percentage of children.--
                        The amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) for that county 
                                who constitute not more than 
                                15.00 percent, inclusive, of 
                                the county's total population 
                                aged 5 to 17, inclusive, 
                                multiplied by 1.0;
                                    ``(II) the number of such 
                                children who constitute more 
                                than 15.00 percent, but not 
                                more than 19.00 percent, of 
                                such population, multiplied by 
                                2.0;
                                    ``(III) the number of such 
                                children who constitute more 
                                than 19.00 percent, but not 
                                more than 24.20 percent, of 
                                such population, multiplied by 
                                4.0;
                                    ``(IV) the number of such 
                                children who constitute more 
                                than 24.20 percent, but not 
                                more than 29.20 percent, of 
                                such population, multiplied by 
                                6.0; and
                                    ``(V) the number of such 
                                children who constitute more 
                                than 29.20 percent of such 
                                population, multiplied by 8.0.
                            ``(iii) By number of children.--The 
                        amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) who constitute 
                                not more than 2,311, inclusive, 
                                of the county's total 
                                population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                    ``(II) the number of such 
                                children between 2,312 and 
                                7,913, inclusive, in such 
                                population, multiplied by 2.0;
                                    ``(III) the number of such 
                                children between 7,914 and 
                                23,917, inclusive, in such 
                                population, multiplied by 3.0;
                                    ``(IV) the number of such 
                                children between 23,918 and 
                                93,810, inclusive, in such 
                                population, multiplied by 4.5; 
                                and
                                    ``(V) the number of such 
                                children in excess of 93,811 in 
                                such population, multiplied by 
                                6.0.
                    ``(B) Weights for allocations to local 
                educational agencies.--
                            ``(i) In general.--For each fiscal 
                        year for which the Secretary uses local 
                        educational agency data, the weighted 
                        child count used to determine a local 
                        educational agency's grant under this 
                        section is the larger of the 2 amounts 
                        determined under clauses (ii) and 
                        (iii).
                            ``(ii) By percentage of children.--
                        The amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) for that local 
                                educational agency who 
                                constitute not more than 15.58 
                                percent, inclusive, of the 
                                agency's total population aged 
                                5 to 17, inclusive, multiplied 
                                by 1.0;
                                    ``(II) the number of such 
                                children who constitute more 
                                than 15.58 percent, but not 
                                more than 22.11 percent, of 
                                such population, multiplied by 
                                2.0;
                                    ``(III) the number of such 
                                children who constitute more 
                                than 22.11 percent, but not 
                                more than 30.16 percent, of 
                                such population, multiplied by 
                                4.0;
                                    ``(IV) the number of such 
                                children who constitute more 
                                than 30.16 percent, but not 
                                more than 38.24 percent, of 
                                such population, multiplied by 
                                6.0; and
                                    ``(V) the number of such 
                                children who constitute more 
                                than 38.24 percent of such 
                                population, multiplied by 8.0.
                            ``(iii) By number of children.--The 
                        amount referred to in clause (i) is 
                        determined by adding--
                                    ``(I) the number of 
                                children determined under 
                                section 1124(c) who constitute 
                                not more than 691, inclusive, 
                                of the agency's total 
                                population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                    ``(II) the number of such 
                                children between 692 and 2,262, 
                                inclusive, in such population, 
                                multiplied by 2.0;
                                    ``(III) the number of such 
                                children between 2,263 and 
                                7,851, inclusive, in such 
                                population, multiplied by 3.0;
                                    ``(IV) the number of such 
                                children between 7,852 and 
                                35,514, inclusive, in such 
                                population, multiplied by 4.5; 
                                and
                                    ``(V) the number of such 
                                children in excess of 35,514 in 
                                such population, multiplied by 
                                6.0.
    ``(e) Maintenance of Effort.--
            ``(1) In general.--Except as provided in paragraph 
        (2), a State is entitled to receive its full allotment 
        of funds under this section for any fiscal year if the 
        Secretary finds that either the combined fiscal effort 
        per student or the aggregate expenditures within the 
        State with respect to the provision of free public 
        education for the fiscal year preceding the fiscal year 
        for which the determination is made was not less than 
        90 percent of such combined fiscal effort or aggregate 
        expenditures for the second fiscal year preceding the 
        fiscal year for which the determination is made.
            ``(2) Reduction of funds.--The Secretary shall 
        reduce the amount of funds awarded to any State under 
        this section in any fiscal year in the exact proportion 
        to which the State fails to meet the requirements of 
        paragraph (1) by falling below 90 percent of both the 
        fiscal effort per student and aggregate expenditures 
        (using the measure most favorable to the State), and no 
        such lesser amount shall be used for computing the 
        effort required under paragraph (1) for subsequent 
        years.
            ``(3) Waivers.--The Secretary may waive, for 1 
        fiscal year only, the requirements of this subsection 
        if the Secretary determines that such a waiver would be 
        equitable due to exceptional or uncontrollable 
        circumstances such as a natural disaster or a 
        precipitous and unforeseen decline in the financial 
        resources of the State.
    ``(f) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section such 
sums as may be necessary for fiscal year 2002 and for each of 
the 5 succeeding fiscal years.
    ``(g) Adjustments Where Necessitated by Appropriations.--
            ``(1) In general.--If the sums available under this 
        section for any fiscal year are insufficient to pay the 
        full amounts that all local educational agencies in 
        States are eligible to receive under this section for 
        such year, the Secretary shall ratably reduce the 
        allocations to such local educational agencies, subject 
        to paragraphs (2) and (3).
            ``(2) Additional funds.--If additional funds become 
        available for making payments under this section for 
        such fiscal year, allocations that were reduced under 
        paragraph (1) shall be increased on the same basis as 
        they were reduced.
            ``(3) Hold-harmless amounts.--For each fiscal year, 
        if sufficient funds are available, the amount made 
        available to each local educational agency under this 
        section shall be
                    ``(A) not less than 95 percent of the 
                amount made available for the preceding fiscal 
                year if the number of children counted for 
                grants under section 1124 is not less than 30 
                percent of the total number of children aged 5 
                to 17 years, inclusive, in the local 
                educational agency;
                    ``(B) not less than 90 percent of the 
                amount made available for the preceding fiscal 
                year if the percentage described in 
                subparagraph (A) is between 15 percent and 30 
                percent; and
                    ``(C) not less than 85 percent of the 
                amount made available for the preceding fiscal 
                year if the percentage described in 
                subparagraph (A) is below 15 percent.
            ``(4) Applicability.--Notwithstanding any other 
        provision of law, the Secretary shall not take into 
        consideration the hold-harmless provisions of this 
        subsection for any fiscal year for purposes of 
        calculating State or local allocations for the fiscal 
        year under any program administered by the Secretary 
        other than a program authorized under this part.

``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

    ``(a) Allocations for Neglected Children.--
            ``(1) In general.--If a State educational agency 
        determines that a local educational agency in the State 
        is unable or unwilling to provide for the special 
        educational needs of children who are living in 
        institutions for neglected children as described in 
        section 1124(c)(1)(B), the State educational agency 
        shall, if such agency assumes responsibility for the 
        special educational needs of such children, receive the 
        portion of such local educational agency's allocation 
        under sections 1124, 1124A, 1125, and 1125A that is 
        attributable to such children.
            ``(2) Special rule.--If the State educational 
        agency does not assume such responsibility, any other 
        State or local public agency that does assume such 
        responsibility shall receive that portion of the local 
        educational agency's allocation.
    ``(b) Allocations Among Local Educational Agencies.--The 
State educational agency may allocate the amounts of grants 
under sections 1124, 1124A, 1125, and 1125A among the affected 
local educational agencies--
            ``(1) if 2 or more local educational agencies 
        serve, in whole or in part, the same geographical area;
            ``(2) if a local educational agency provides free 
        public education for children who reside in the school 
        district of another local educational agency; or
            ``(3) to reflect the merger, creation, or change of 
        boundaries of 1 or more local educational agencies.
    ``(c) Reallocation.--If a State educational agency 
determines that the amount of a grant a local educational 
agency would receive under sections 1124, 1124A, 1125, and 
1125A is more than such local educational agency will use, the 
State educational agency shall make the excess amount available 
to other local educational agencies in the State that need 
additional funds in accordance with criteria established by the 
State educational agency.

``SEC. 1127. CARRYOVER AND WAIVER.

    ``(a) Limitation on Carryover.--Notwithstanding section 
421(b) of the General Education Provisions Act or any other 
provision of law, not more than 15 percent of the funds 
allocated to a local educational agency for any fiscal year 
under this subpart (but not including funds received through 
any reallocation under this subpart) may remain available for 
obligation by such agency for 1 additional fiscal year.
    ``(b) Waiver.--A State educational agency may, once every 3 
years, waive the percentage limitation in subsection (a) if--
            ``(1) the agency determines that the request of a 
        local educational agency is reasonable and necessary; 
        or
            ``(2) supplemental appropriations for this subpart 
        become available.
    ``(c) Exclusion.--The percentage limitation under 
subsection (a) shall not apply to any local educational agency 
that receives less than $50,000 under this subpart for any 
fiscal year.

          ``PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS

                       ``Subpart 1--Reading First

``SEC. 1201. PURPOSES.

    ``The purposes of this subpart are as follows:
            ``(1) To provide assistance to State educational 
        agencies and local educational agencies in establishing 
        reading programs for students in kindergarten through 
        grade 3 that are based on scientifically based reading 
        research, to ensure that every student can read at 
        grade level or above not later than the end of grade 3.
            ``(2) To provide assistance to State educational 
        agencies and local educational agencies in preparing 
        teachers, including special education teachers, through 
        professional development and other support, so the 
        teachers can identify specific reading barriers facing 
        their students and so the teachers have the tools to 
        effectively help their students learn to read.
            ``(3) To provide assistance to State educational 
        agencies and local educational agencies in selecting or 
        administering screening, diagnostic, and classroom-
        based instructional reading assessments.
            ``(4) To provide assistance to State educational 
        agencies and local educational agencies in selecting or 
        developing effective instructional materials (including 
        classroom-based materials to assist teachers in 
        implementing the essential components of reading 
        instruction), programs, learning systems, and 
        strategies to implement methods that have been proven 
        to prevent or remediate reading failure within a State.
            ``(5) To strengthen coordination among schools, 
        early literacy programs, and family literacy programs 
        to improve reading achievement for all children.

``SEC. 1202. FORMULA GRANTS TO STATE EDUCATIONAL AGENCIES.

    ``(a) In General.--
            ``(1) Authorization to make grants.--In the case of 
        each State educational agency that in accordance with 
        section 1203 submits to the Secretary an application 
        for a 6-year period, the Secretary, from amounts 
        appropriated under section 1002(b)(1) and subject to 
        the application's approval, shall make a grant to the 
        State educational agency for the uses specified in 
        subsections (c) and (d). For each fiscal year, the 
        funds provided under the grant shall equal the 
        allotment determined for the State educational agency 
        under subsection (b).
            ``(2) Duration of grants.--Subject to subsection 
        (e)(3), a grant under this section shall be awarded for 
        a period of not more than 6 years.
    ``(b) Determination of Amount of Allotments.--
            ``(1) Reservations from appropriations.--From the 
        total amount made available to carry out this subpart 
        for a fiscal year, the Secretary--
                    ``(A) shall reserve \1/2\ of 1 percent for 
                allotments for the United States Virgin 
                Islands, Guam, American Samoa, and the 
                Commonwealth of the Northern Mariana Islands, 
                to be distributed among these outlying areas on 
                the basis of their relative need, as determined 
                by the Secretary in accordance with the 
                purposes of this subpart;
                    ``(B) shall reserve \1/2\ of 1 percent for 
                the Secretary of the Interior for programs 
                under this subpart in schools operated or 
                funded by the Bureau of Indian Affairs;
                    ``(C) may reserve not more than 2\1/2\ 
                percent or $25,000,000, whichever is less, to 
                carry out section 1205 (relating to external 
                evaluation) and section 1206 (relating to 
                national activities);
                    ``(D) shall reserve $5,000,000 to carry out 
                sections 1207 and 1224 (relating to information 
                dissemination); and
                    ``(E) for any fiscal year, beginning with 
                fiscal year 2004, for which the amount 
                appropriated to carry out this subpart exceeds 
                the amount appropriated for fiscal year 2003, 
                shall reserve, to carry out section 1204, the 
                lesser of--
                            ``(i) $90,000,000; or
                            ``(ii) 10 percent of such excess 
                        amount.
            ``(2) State allotments.--In accordance with 
        paragraph (3), the Secretary shall allot among each of 
        the States the total amount made available to carry out 
        this subpart for any fiscal year and not reserved under 
        paragraph (1).
            ``(3) Determination of state allotment amounts.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the Secretary shall allot the amount made 
                available under paragraph (2) for a fiscal year 
                among the States in proportion to the number of 
                children, aged 5 to 17, who reside within the 
                State and are from families with incomes below 
                the poverty line for the most recent fiscal 
                year for which satisfactory data are available, 
                compared to the number of such individuals who 
                reside in all such States for that fiscal year.
                    ``(B) Exceptions.--
                            ``(i) Minimum grant amount.--
                        Subject to clause (ii), no State 
                        receiving an allotment under 
                        subparagraph (A) may receive less than 
                        \1/4\ of 1 percent of the total amount 
                        allotted under such subparagraph.
                            ``(ii) Puerto rico.--The percentage 
                        of the amount allotted under 
                        subparagraph (A) that is allotted to 
                        the Commonwealth of Puerto Rico for a 
                        fiscal year may not exceed the 
                        percentage that was received by the 
                        Commonwealth of Puerto Rico of the 
                        funds allocated to all States under 
                        subpart 2 of part A for the preceding 
                        fiscal year.
            ``(4) Distribution of subgrants.--The Secretary may 
        make a grant to a State educational agency only if the 
        State educational agency agrees to expend at least 80 
        percent of the amount of the funds provided under the 
        grant for the purpose of making, in accordance with 
        subsection (c), competitive subgrants to eligible local 
        educational agencies.
            ``(5) Reallotment.--If a State educational agency 
        described in paragraph (2) does not apply for an 
        allotment under this section for any fiscal year, or if 
        the State educational agency's application is not 
        approved, the Secretary shall reallot such amount to 
        the remaining State educational agencies in accordance 
        with paragraph (3).
            ``(6) Definition of state.--For purposes of this 
        subsection, the term `State' means each of the 50 
        States, the District of Columbia, and the Commonwealth 
        of Puerto Rico.
    ``(c) Subgrants to Local Educational Agencies.--
            ``(1) Authorization to make subgrants.--In 
        accordance with paragraph (2), a State educational 
        agency that receives a grant under this section shall 
        make competitive subgrants to eligible local 
        educational agencies.
            ``(2) Allocation.--
                    ``(A) Minimum subgrant amount.--In making 
                subgrants under paragraph (1), a State 
                educational agency shall allocate to each 
                eligible local educational agency that receives 
                such a subgrant, at a minimum, an amount that 
                bears the same relation to the funds made 
                available under subsection (b)(4) as the amount 
                the eligible local educational agency received 
                under part A for the preceding fiscal year 
                bears to the amount all the local educational 
                agencies in the State received under part A for 
                the preceding fiscal year.
                    ``(B) Priority.--In making subgrants under 
                paragraph (1), a State educational agency shall 
                give priority to eligible local educational 
                agencies in which at least--
                            ``(i) 15 percent of the children 
                        served by the eligible local 
                        educational agency are from families 
                        with incomes below the poverty line; or
                            ``(ii) 6,500 children served by the 
                        eligible local educational agency are 
                        from families with incomes below the 
                        poverty line.
            ``(3) Notice.--A State educational agency receiving 
        a grant under this section shall provide notice to all 
        eligible local educational agencies in the State of the 
        availability of competitive subgrants under this 
        subsection and of the requirements for applying for the 
        subgrants.
            ``(4) Local application.--To be eligible to receive 
        a subgrant under this subsection, an eligible local 
        educational agency shall submit an application to the 
        State educational agency at such time, in such manner, 
        and containing such information as the State 
        educational agency may reasonably require.
            ``(5) State requirement.--In distributing subgrant 
        funds to eligible local educational agencies under this 
        subsection, a State educational agency shall--
                    ``(A) provide funds in sufficient size and 
                scope to enable the eligible local educational 
                agencies to improve reading instruction; and
                    ``(B) provide the funds in amounts related 
                to the number or percentage of students in 
                kindergarten through grade 3 who are reading 
                below grade level.
            ``(6) Limitation to certain schools.--In 
        distributing subgrant funds under this subsection, an 
        eligible local educational agency shall provide funds 
        only to schools that both--
                    ``(A) are among the schools served by that 
                eligible local educational agency with the 
                highest percentages or numbers of students in 
                kindergarten through grade 3 reading below 
                grade level, based on the most currently 
                available data; and
                    ``(B)(i) are identified for school 
                improvement under section 1116(b); or
                    ``(ii) have the highest percentages or 
                numbers of children counted under section 
                1124(c).
            ``(7) Local uses of funds.--
                    ``(A) Required uses.--Subject to paragraph 
                (8), an eligible local educational agency that 
                receives a subgrant under this subsection shall 
                use the funds provided under the subgrant to 
                carry out the following activities:
                            ``(i) Selecting and administering 
                        screening, diagnostic, and classroom-
                        based instructional reading 
                        assessments.
                            ``(ii) Selecting and implementing a 
                        learning system or program of reading 
                        instruction based on scientifically 
                        based reading research that--
                                    ``(I) includes the 
                                essential components of reading 
                                instruction; and
                                    ``(II) provides such 
                                instruction to the children in 
                                kindergarten through grade 3 in 
                                the schools served by the 
                                eligible local educational 
                                agency, including children 
                                who--
                                            ``(aa) may have 
                                        reading difficulties;
                                            ``(bb) are at risk 
                                        of being referred to 
                                        special education based 
                                        on these difficulties;
                                            ``(cc) have been 
                                        evaluated under section 
                                        614 of the Individuals 
                                        with Disabilities 
                                        Education Act but, in 
                                        accordance with section 
                                        614(b)(5) of that Act, 
                                        have not been 
                                        identified as being a 
                                        child with a disability 
                                        (as defined in section 
                                        602 of that Act);
                                            ``(dd) are being 
                                        served under such Act 
                                        primarily due to being 
                                        identified as being a 
                                        child with a specific 
                                        learning disability (as 
                                        defined in section 602 
                                        of that Act) related to 
                                        reading;
                                            ``(ee) are 
                                        deficient in the 
                                        essential components of 
                                        reading skills, as 
                                        listed in subparagraphs 
                                        (A) through (E) of 
                                        section 1208(3); or
                                            ``(ff) are 
                                        identified as having 
                                        limited English 
                                        proficiency.
                            ``(iii) Procuring and implementing 
                        instructional materials, including 
                        education technology such as software 
                        and other digital curricula, that are 
                        based on scientifically based reading 
                        research.
                            ``(iv) Providing professional 
                        development for teachers of 
                        kindergarten through grade 3, and 
                        special education teachers of 
                        kindergarten through grade 12, that--
                                    ``(I) will prepare these 
                                teachers in all of the 
                                essential components of reading 
                                instruction;
                                    ``(II) shall include--
                                            ``(aa) information 
                                        on instructional 
                                        materials, programs, 
                                        strategies, and 
                                        approaches based on 
                                        scientifically based 
                                        reading research, 
                                        including early 
                                        intervention, classroom 
                                        reading materials, and 
                                        remedial programs and 
                                        approaches; and
                                            ``(bb) instruction 
                                        in the use of 
                                        screening, diagnostic, 
                                        and classroom-based 
                                        instructional reading 
                                        assessments and other 
                                        procedures that 
                                        effectively identify 
                                        students who may be at 
                                        risk for reading 
                                        failure or who are 
                                        having difficulty 
                                        reading;
                                    ``(III) shall be provided 
                                by eligible professional 
                                development providers; and
                                    ``(IV) will assist teachers 
                                in becoming fully qualified in 
                                reading instruction in 
                                accordance with the 
                                requirements of section 1119.
                            ``(v) Collecting and summarizing 
                        data--
                                    ``(I) to document the 
                                effectiveness of activities 
                                carried out under this subpart 
                                in individual schools and in 
                                the local educational agency as 
                                a whole; and
                                    ``(II) to stimulate and 
                                accelerate improvement by 
                                identifying the schools that 
                                produce significant gains in 
                                reading achievement.
                            ``(vi) Reporting data for all 
                        students and categories of students 
                        described in section 
                        1111(b)(2)(C)(v)(II).
                            ``(vii) Promoting reading and 
                        library programs that provide access to 
                        engaging reading material, including 
                        coordination with programs funded 
                        through grants received under subpart 
                        4, where applicable.
                    ``(B) Additional uses.--Subject to 
                paragraph (8), an eligible local educational 
                agency that receives a subgrant under this 
                subsection may use the funds provided under the 
                subgrant to carry out the following activities:
                            ``(i) Humanities-based family 
                        literacy programs (which may be 
                        referred to as ``Prime Time Family 
                        Reading Time'') that bond families 
                        around the acts of reading and using 
                        public libraries.
                            ``(ii) Providing training in the 
                        essential components of reading 
                        instruction to a parent or other 
                        individual who volunteers to be a 
                        student's reading tutor, to enable such 
                        parent or individual to support 
                        instructional practices that are based 
                        on scientifically based reading 
                        research and are being used by the 
                        student's teacher.
                            ``(iii) Assisting parents, through 
                        the use of materials and reading 
                        programs, strategies, and approaches 
                        (including family literacy services) 
                        that are based on scientifically based 
                        reading research, to encourage reading 
                        and support their child's reading 
                        development.
            ``(8) Local planning and administration.--An 
        eligible local educational agency that receives a 
        subgrant under this subsection may use not more than 
        3.5 percent of the funds provided under the subgrant 
        for planning and administration.
    ``(d) State Uses of Funds.--
            ``(1) In general.--A State educational agency that 
        receives a grant under this section may expend not more 
        than a total of 20 percent of the grant funds to carry 
        out the activities described in paragraphs (3), (4), 
        and (5).
            ``(2) Priority.--A State educational agency shall 
        give priority to carrying out the activities described 
        in paragraphs (3), (4), and (5) for schools described 
        in subsection (c)(6).
            ``(3) Professional inservice and preservice 
        development and review.--A State educational agency may 
        expend not more than 65 percent of the amount of the 
        funds made available under paragraph (1)--
                    ``(A) to develop and implement a program of 
                professional development for teachers, 
                including special education teachers, of 
                kindergarten through grade 3 that--
                            ``(i) will prepare these teachers 
                        in all the essential components of 
                        reading instruction;
                            ``(ii) shall include--
                                    ``(I) information on 
                                instructional materials, 
                                programs, strategies, and 
                                approaches based on 
                                scientifically based reading 
                                research, including early 
                                intervention and reading 
                                remediation materials, 
                                programs, and approaches; and
                                    ``(II) instruction in the 
                                use of screening, diagnostic, 
                                and classroom-based 
                                instructional reading 
                                assessments and other 
                                scientifically based procedures 
                                that effectively identify 
                                students who may be at risk for 
                                reading failure or who are 
                                having difficulty reading; and
                            ``(iii) shall be provided by 
                        eligible professional development 
                        providers;
                    ``(B) to strengthen and enhance preservice 
                courses for students preparing, at all public 
                institutions of higher education in the State, 
                to teach kindergarten through grade 3 by--
                            ``(i) reviewing such courses to 
                        determine whether the courses' content 
                        is consistent with the findings of the 
                        most current scientifically based 
                        reading research, including findings on 
                        the essential components of reading 
                        instruction;
                            ``(ii) following up such reviews 
                        with recommendations to ensure that 
                        such institutions offer courses that 
                        meet the highest standards; and
                            ``(iii) preparing a report on the 
                        results of such reviews, submitting the 
                        report to the reading and literacy 
                        partnership for the State established 
                        under section 1203(d), and making the 
                        report available for public review by 
                        means of the Internet; and
                    ``(C) to make recommendations on how the 
                State licensure and certification standards in 
                the area of reading might be improved.
            ``(4) Technical assistance for local educational 
        agencies and schools.--A State educational agency may 
        expend not more than 25 percent of the amount of the 
        funds made available under paragraph (1) for 1 or more 
        of the following:
                    ``(A) Assisting local educational agencies 
                in accomplishing the tasks required to design 
                and implement a program under this subpart, 
                including--
                            ``(i) selecting and implementing a 
                        program or programs of reading 
                        instruction based on scientifically 
                        based reading research;
                            ``(ii) selecting screening, 
                        diagnostic, and classroom-based 
                        instructional reading assessments; and
                            ``(iii) identifying eligible 
                        professional development providers to 
                        help prepare reading teachers to teach 
                        students using the programs and 
                        assessments described in clauses (i) 
                        and (ii).
                    ``(B) Providing expanded opportunities to 
                students in kindergarten through grade 3 who 
                are served by eligible local educational 
                agencies for receiving reading assistance from 
                alternative providers that includes--
                            ``(i) screening, diagnostic, and 
                        classroom-based instructional reading 
                        assessments; and
                            ``(ii) as need is indicated by the 
                        assessments under clause (i), 
                        instruction based on scientifically 
                        based reading research that includes 
                        the essential components of reading 
                        instruction.
            ``(5) Planning, administration, and reporting.--
                    ``(A) Expenditure of funds.--A State 
                educational agency may expend not more than 10 
                percent of the amount of funds made available 
                under paragraph (1) for the activities 
                described in this paragraph.
                    ``(B) Planning and administration.--A State 
                educational agency that receives a grant under 
                this section may expend funds made available 
                under subparagraph (A) for planning and 
                administration relating to the State uses of 
                funds authorized under this subpart, including 
                the following:
                            ``(i) Administering the 
                        distribution of competitive subgrants 
                        to eligible local educational agencies 
                        under subsection (c) and section 
                        1204(d).
                            ``(ii) Assessing and evaluating, on 
                        a regular basis, eligible local 
                        educational agency activities assisted 
                        under this subpart, with respect to 
                        whether they have been effective in 
                        increasing the number of children in 
                        grades 1, 2, and 3 served under this 
                        subpart who can read at or above grade 
                        level.
                    ``(C) Annual reporting.--
                            ``(i) In general.--A State 
                        educational agency that receives a 
                        grant under this section shall expend 
                        funds made available under subparagraph 
                        (A) to provide the Secretary annually 
                        with a report on the implementation of 
                        this subpart.
                            ``(ii) Information included.--Each 
                        report under this subparagraph shall 
                        include information on the following:
                                    ``(I) Evidence that the 
                                State educational agency is 
                                fulfilling its obligations 
                                under this subpart.
                                    ``(II) Specific 
                                identification of those schools 
                                and local educational agencies 
                                that report the largest gains 
                                in reading achievement.
                                    ``(III) The progress the 
                                State educational agency and 
                                local educational agencies 
                                within the State are making in 
                                reducing the number of students 
                                served under this subpart in 
                                grades 1, 2, and 3 who are 
                                reading below grade level, as 
                                demonstrated by such 
                                information as teacher reports 
                                and school evaluations of 
                                mastery of the essential 
                                components of reading 
                                instruction.
                                    ``(IV) Evidence on whether 
                                the State educational agency 
                                and local educational agencies 
                                within the State have 
                                significantly increased the 
                                number of students reading at 
                                grade level or above, 
                                significantly increased the 
                                percentages of students 
                                described in section 
                                1111(b)(2)(C)(v)(II) who are 
                                reading at grade level or 
                                above, and successfully 
                                implemented this subpart.
                            ``(iii) Privacy protection.--Data 
                        in the report shall be reported in a 
                        manner that protects the privacy of 
                        individuals.
                            ``(iv) Contract.--To the extent 
                        practicable, a State educational agency 
                        shall enter into a contract with an 
                        entity that conducts scientifically 
                        based reading research, under which 
                        contract the entity will assist the 
                        State educational agency in producing 
                        the reports required to be submitted 
                        under this subparagraph.
    ``(e) Review.--
            ``(1) Progress report.--
                    ``(A) Submission.--Not later than 60 days 
                after the termination of the third year of the 
                grant period, each State educational agency 
                receiving a grant under this section shall 
                submit a progress report to the Secretary.
                    ``(B) Information included.--The progress 
                report shall include information on the 
                progress the State educational agency and local 
                educational agencies within the State are 
                making in reducing the number of students 
                served under this subpart in grades 1, 2, and 3 
                who are reading below grade level (as 
                demonstrated by such information as teacher 
                reports and school evaluations of mastery of 
                the essential components of reading 
                instruction). The report shall also include 
                evidence from the State educational agency and 
                local educational agencies within the State 
                that the State educational agency and the local 
                educational agencies have significantly 
                increased the number of students reading at 
                grade level or above, significantly increased 
                the percentages of students described in 
                section 1111(b)(2)(C)(v)(II) who are reading at 
                grade level or above, and successfully 
                implemented this subpart.
            ``(2) Peer review.--The progress report described 
        in paragraph (1) shall be reviewed by the peer review 
        panel convened under section 1203(c)(2).
            ``(3) Consequences of insufficient progress.--After 
        submission of the progress report described in 
        paragraph (1), if the Secretary determines that the 
        State educational agency is not making significant 
        progress in meeting the purposes of this subpart, the 
        Secretary may withhold from the State educational 
        agency, in whole or in part, further payments under 
        this section in accordance with section 455 of the 
        General Education Provisions Act or take such other 
        action authorized by law as the Secretary determines 
        necessary, including providing technical assistance 
        upon request of the State educational agency.
    ``(f) Funds Not Used for State Level Activities.--Any 
portion of funds described in subsection (d)(1) that a State 
educational agency does not expend in accordance with 
subsection (d)(1) shall be expended for the purpose of making 
subgrants in accordance with subsection (c).

``SEC. 1203. STATE FORMULA GRANT APPLICATIONS.

    ``(a) Applications.--
            ``(1) In general.--A State educational agency that 
        desires to receive a grant under section 1202 shall 
        submit an application to the Secretary at such time and 
        in such form as the Secretary may require. The 
        application shall contain the information described in 
        subsection (b).
            ``(2) Special application provisions.--For those 
        State educational agencies that have received a grant 
        under part C of title II (as such part was in effect on 
        the day before the date of enactment of the No Child 
        Left Behind Act of 2001), the Secretary shall establish 
        a modified set of requirements for an application under 
        this section that takes into account the information 
        already submitted and approved under that program and 
        minimizes the duplication of effort on the part of such 
        State educational agencies.
    ``(b) Contents.--An application under this section shall 
contain the following:
            ``(1) An assurance that the Governor of the State, 
        in consultation with the State educational agency, has 
        established a reading and literacy partnership 
        described in subsection (d), and a description of how 
        such partnership--
                    ``(A) coordinated the development of the 
                application; and
                    ``(B) will assist in the oversight and 
                evaluation of the State educational agency's 
                activities under this subpart.
            ``(2) A description, if applicable, of the State's 
        strategy to expand, continue, or modify activities 
        authorized under part C of title II (as such part was 
        in effect on the day before the date of enactment of 
        the No Child Left Behind Act of 2001).
            ``(3) An assurance that the State educational 
        agency, and any local educational agencies receiving a 
        subgrant from that State educational agency under 
        section 1202, will, if requested, participate in the 
        external evaluation under section 1205.
            ``(4) A State educational agency plan containing a 
        description of the following:
                    ``(A) How the State educational agency will 
                assist local educational agencies in 
                identifying screening, diagnostic, and 
                classroom-based instructional reading 
                assessments.
                    ``(B) How the State educational agency will 
                assist local educational agencies in 
                identifying instructional materials, programs, 
                strategies, and approaches, based on 
                scientifically based reading research, 
                including early intervention and reading 
                remediation materials, programs, and 
                approaches.
                    ``(C) How the State educational agency will 
                ensure that professional development activities 
                related to reading instruction and provided 
                under section 1202 are--
                            ``(i) coordinated with other 
                        Federal, State, and local level funds, 
                        and used effectively to improve 
                        instructional practices for reading; 
                        and
                            ``(ii) based on scientifically 
                        based reading research.
                    ``(D) How the activities assisted under 
                section 1202 will address the needs of teachers 
                and other instructional staff in implementing 
                the essential components of reading 
                instruction.
                    ``(E) How subgrants made by the State 
                educational agency under section 1202 will meet 
                the requirements of section 1202, including how 
                the State educational agency will ensure that 
                eligible local educational agencies receiving 
                subgrants under section 1202 will use practices 
                based on scientifically based reading research.
                    ``(F) How the State educational agency 
                will, to the extent practicable, make grants to 
                eligible local educational agencies in both 
                rural and urban areas.
                    ``(G) How the State educational agency will 
                build on, and promote coordination among 
                literacy programs in the State (including 
                federally funded programs such as programs 
                under the Adult Education and Family Literacy 
                Act, the Individuals with Disabilities 
                Education Act, and subpart 2), to increase the 
                effectiveness of the programs in improving 
                reading for adults and children and to avoid 
                duplication of the efforts of the program.
                    ``(H) How the State educational agency will 
                assess and evaluate, on a regular basis, 
                eligible local educational agency activities 
                assisted under section 1202, with respect to 
                whether the activities have been effective in 
                achieving the purposes of section 1202.
                    ``(I) Any other information that the 
                Secretary may reasonably require.
    ``(c) Approval of Applications.--
            ``(1) In general.--The Secretary shall approve an 
        application of a State educational agency under this 
        section only if such application meets the requirements 
        of this section.
            ``(2) Peer review.--
                    ``(A) In general.--The Secretary, in 
                consultation with the National Institute for 
                Literacy, shall convene a panel to evaluate 
                applications under this section. At a minimum, 
                the panel shall include--
                            ``(i) 3 individuals selected by the 
                        Secretary;
                            ``(ii) 3 individuals selected by 
                        the National Institute for Literacy;
                            ``(iii) 3 individuals selected by 
                        the National Research Council of the 
                        National Academy of Sciences; and
                            ``(iv) 3 individuals selected by 
                        the National Institute of Child Health 
                        and Human Development.
                    ``(B) Experts.--The panel shall include--
                            ``(i) experts who are competent, by 
                        virtue of their training, expertise, or 
                        experience, to evaluate applications 
                        under this section;
                            ``(ii) experts who provide 
                        professional development to individuals 
                        who teach reading to children and 
                        adults based on scientifically based 
                        reading research;
                            ``(iii) experts who provide 
                        professional development to other 
                        instructional staff based on 
                        scientifically based reading research; 
                        and
                            ``(iv) an individual who has 
                        expertise in screening, diagnostic, and 
                        classroom-based instructional reading 
                        assessments.
                    ``(C) Recommendations.--The panel shall 
                recommend grant applications from State 
                educational agencies under this section to the 
                Secretary for funding or for disapproval.
    ``(d) Reading and Literacy Partnerships.--
            ``(1) In general.--For a State educational agency 
        to receive a grant under section 1202, the Governor of 
        the State, in consultation with the State educational 
        agency, shall establish a reading and literacy 
        partnership.
            ``(2) Required participants.--The reading and 
        literacy partnership shall include the following 
        participants:
                    ``(A) The Governor of the State.
                    ``(B) The chief State school officer.
                    ``(C) The chairman and the ranking member 
                of each committee of the State legislature that 
                is responsible for education policy.
                    ``(D) A representative, selected jointly by 
                the Governor and the chief State school 
                officer, of at least 1 eligible local 
                educational agency.
                    ``(E) A representative, selected jointly by 
                the Governor and the chief State school 
                officer, of a community-based organization 
                working with children to improve their reading 
                skills, particularly a community-based 
                organization using tutors and scientifically 
                based reading research.
                    ``(F) State directors of appropriate 
                Federal or State programs with a strong reading 
                component, selected jointly by the Governor and 
                the chief State school officer.
                    ``(G) A parent of a public or private 
                school student or a parent who educates the 
                parent's child in the parent's home, selected 
                jointly by the Governor and the chief State 
                school officer.
                    ``(H) A teacher, who may be a special 
                education teacher, who successfully teaches 
                reading, and another instructional staff 
                member, selected jointly by the Governor and 
                the chief State school officer.
                    ``(I) A family literacy service provider 
                selected jointly by the Governor and the chief 
                State school officer.
            ``(3) Optional participants.--The reading and 
        literacy partnership may include additional 
        participants, who shall be selected jointly by the 
        Governor and the chief State school officer, and who 
        may include a representative of--
                    ``(A) an institution of higher education 
                operating a program of teacher preparation in 
                the State that is based on scientifically based 
                reading research;
                    ``(B) a local educational agency;
                    ``(C) a private nonprofit or for-profit 
                eligible professional development provider 
                providing instruction based on scientifically 
                based reading research;
                    ``(D) an adult education provider;
                    ``(E) a volunteer organization that is 
                involved in reading programs; or
                    ``(F) a school library or a public library 
                that offers reading or literacy programs for 
                children or families.
            ``(4) Preexisting partnership.--If, before the date 
        of enactment of the No Child Left Behind Act of 2001, a 
        State educational agency established a consortium, 
        partnership, or any other similar body that was 
        considered a reading and literacy partnership for 
        purposes of part C of title II of this Act (as such 
        part was in effect on the day before the date of 
        enactment of No Child Left Behind Act of 2001), that 
        consortium, partnership, or body may be considered a 
        reading and literacy partnership for purposes of this 
        subsection consistent with the provisions of this 
        subpart.

``SEC. 1204. TARGETED ASSISTANCE GRANTS.

    ``(a) Eligibility Criteria for Awarding Targeted Assistance 
Grants to States.--Beginning with fiscal year 2004, from funds 
appropriated under section 1202(b)(1)(E), the Secretary shall 
make grants, on a competitive basis, to those State educational 
agencies that--
            ``(1) for each of 2 consecutive years, demonstrate 
        that an increasing percentage of third graders in each 
        of the groups described in section 1111(b)(2)(C)(v)(II) 
        in the schools served by the local educational agencies 
        receiving funds under section 1202 are reaching the 
        proficient level in reading; and
            ``(2) for each of the same such consecutive 2 
        years, demonstrate that schools receiving funds under 
        section 1202 are improving the reading skills of 
        students in grades 1, 2, and 3 based on screening, 
        diagnostic, and classroom-based instructional reading 
        assessments.
    ``(b) Continuation of Performance Awards.--For any State 
educational agency that receives a competitive grant under this 
section, the Secretary shall make an award for each of the 
succeeding years that the State educational agency demonstrates 
it is continuing to meet the criteria described in subsection 
(a).
    ``(c) Distribution of Targeted Assistance Grants.--
            ``(1) In general.--The Secretary shall make a grant 
        to each State educational agency with an application 
        approved under this section in an amount that bears the 
        same relation to the amount made available to carry out 
        this section for a fiscal year as the number of 
        children counted under section 1124(c) for the State 
        bears to the number of such children so counted for all 
        States with applications approved for that year.
            ``(2) Peer review.--The peer review panel convened 
        under section 1203(c)(2) shall review the applications 
        submitted under this subsection. The panel shall 
        recommend such applications to the Secretary for 
        funding or for disapproval.
            ``(3) Application contents.--A State educational 
        agency that desires to receive a grant under this 
        section shall submit an application to the Secretary at 
        such time, in such manner, and accompanied by such 
        information as the Secretary may require. Each such 
        application shall include the following:
                    ``(A) Evidence that the State educational 
                agency has carried out its obligations under 
                section 1203.
                    ``(B) Evidence that the State educational 
                agency has met the criteria described in 
                subsection (a).
                    ``(C) The amount of funds requested by the 
                State educational agency and a description of 
                the criteria the State educational agency 
                intends to use in distributing subgrants to 
                eligible local educational agencies under this 
                section to continue or expand activities under 
                subsection (d)(5).
                    ``(D) Evidence that the State educational 
                agency has increased significantly the 
                percentage of students reading at grade level 
                or above.
                    ``(E) Any additional evidence that 
                demonstrates success in the implementation of 
                this section.
    ``(d) Subgrants to Eligible Local Educational Agencies.--
            ``(1) In general.--The Secretary may make a grant 
        to a State educational agency under this section only 
        if the State educational agency agrees to expend 100 
        percent of the amount of the funds provided under the 
        grant for the purpose of making competitive subgrants 
        in accordance with this subsection to eligible local 
        educational agencies.
            ``(2) Notice.--A State educational agency receiving 
        a grant under this section shall provide notice to all 
        local educational agencies in the State of the 
        availability of competitive subgrants under this 
        subsection and of the requirements for applying for the 
        subgrants.
            ``(3) Application.--To be eligible to receive a 
        subgrant under this subsection, an eligible local 
        educational agency shall submit an application to the 
        State educational agency at such time, in such manner, 
        and containing such information as the State 
        educational agency may reasonably require.
            ``(4) Distribution.--
                    ``(A) In general.--A State educational 
                agency shall distribute subgrants under this 
                section through a competitive process based on 
                relative need of eligible local educational 
                agencies and the evidence described in this 
                paragraph.
                    ``(B) Evidence used in all years.--For all 
                fiscal years, a State educational agency shall 
                distribute subgrants under this section based 
                on evidence that an eligible local educational 
                agency--
                            ``(i) satisfies the requirements of 
                        section 1202(c)(4);
                            ``(ii) will carry out its 
                        obligations under this subpart;
                            ``(iii) will work with other local 
                        educational agencies in the State that 
                        have not received a subgrant under this 
                        subsection to assist such nonreceiving 
                        agencies in increasing the reading 
                        achievement of students; and
                            ``(iv) is meeting the criteria 
                        described in subsection (a).
            ``(5) Local uses of funds.--An eligible local 
        educational agency that receives a subgrant under this 
        subsection--
                    ``(A) shall use the funds provided under 
                the subgrant to carry out the activities 
                described in section 1202(c)(7)(A); and
                    ``(B) may use such funds to carry out the 
                activities described in section 1202(c)(7)(B).

``SEC. 1205. EXTERNAL EVALUATION.

    ``(a) In General.--From funds reserved under section 
1202(b)(1)(C), the Secretary shall contract with an independent 
organization outside of the Department for a 5-year, rigorous, 
scientifically valid, quantitative evaluation of this subpart.
    ``(b) Process.--The evaluation under subsection (a) shall 
be conducted by an organization that is capable of designing 
and carrying out an independent evaluation that identifies the 
effects of specific activities carried out by State educational 
agencies and local educational agencies under this subpart on 
improving reading instruction. Such evaluation shall take into 
account factors influencing student performance that are not 
controlled by teachers or education administrators.
    ``(c) Analysis.--The evaluation under subsection (a) shall 
include the following:
            ``(1) An analysis of the relationship between each 
        of the essential components of reading instruction and 
        overall reading proficiency.
            ``(2) An analysis of whether assessment tools used 
        by State educational agencies and local educational 
        agencies measure the essential components of reading.
            ``(3) An analysis of how State reading standards 
        correlate with the essential components of reading 
        instruction.
            ``(4) An analysis of whether the receipt of a 
        targeted assistance grant under section 1204 results in 
        an increase in the number of children who read 
        proficiently.
            ``(5) A measurement of the extent to which specific 
        instructional materials improve reading proficiency.
            ``(6) A measurement of the extent to which specific 
        screening, diagnostic, and classroom-based 
        instructional reading assessments assist teachers in 
        identifying specific reading deficiencies.
            ``(7) A measurement of the extent to which 
        professional development programs implemented by State 
        educational agencies using funds received under this 
        subpart improve reading instruction.
            ``(8) A measurement of how well students preparing 
        to enter the teaching profession are prepared to teach 
        the essential components of reading instruction.
            ``(9) An analysis of changes in students' interest 
        in reading and time spent reading outside of school.
            ``(10) Any other analysis or measurement pertinent 
        to this subpart that is determined to be appropriate by 
        the Secretary.
    ``(d) Program Improvement.--The findings of the evaluation 
conducted under this section shall be provided to State 
educational agencies and local educational agencies on a 
periodic basis for use in program improvement.

``SEC. 1206. NATIONAL ACTIVITIES.

    ``From funds reserved under section 1202(b)(1)(C), the 
Secretary--
            ``(1) may provide technical assistance in achieving 
        the purposes of this subpart to State educational 
        agencies, local educational agencies, and schools 
        requesting such assistance;
            ``(2) shall, at a minimum, evaluate the impact of 
        services provided to children under this subpart with 
        respect to their referral to, and eligibility for, 
        special education services under the Individuals with 
        Disabilities Education Act (based on their difficulties 
        learning to read); and
            ``(3) shall carry out the external evaluation as 
        described in section 1205.

``SEC. 1207. INFORMATION DISSEMINATION.

    ``(a) In General.--From funds reserved under section 
1202(b)(1)(D), the National Institute for Literacy, in 
collaboration with the Secretary of Education, the Secretary of 
Health and Human Services, and the Director of the National 
Institute for Child Health and Human Development shall--
            ``(1) disseminate information on scientifically 
        based reading research pertaining to children, youth, 
        and adults;
            ``(2) identify and disseminate information about 
        schools, local educational agencies, and State 
        educational agencies that have effectively developed 
        and implemented classroom reading programs that meet 
        the requirements of this subpart, including those State 
        educational agencies, local educational agencies, and 
        schools that have been identified as effective through 
        the evaluation and peer review provisions of this 
        subpart; and
            ``(3) support the continued identification and 
        dissemination of information on reading programs that 
        contain the essential components of reading instruction 
        as supported by scientifically based reading research, 
        that can lead to improved reading outcomes for 
        children, youth, and adults.
    ``(b) Dissemination and Coordination.--At a minimum, the 
National Institute for Literacy shall disseminate the 
information described in subsection (a) to--
            ``(1) recipients of Federal financial assistance 
        under this title, title III, the Head Start Act, the 
        Individuals with Disabilities Education Act, and the 
        Adult Education and Family Literacy Act; and
            ``(2) each Bureau funded school (as defined in 
        section 1141 of the Education Amendments of 1978).
    ``(c) Use of Existing Networks.--In carrying out this 
section, the National Institute for Literacy shall, to the 
extent practicable, use existing information and dissemination 
networks developed and maintained through other public and 
private entities including through the Department and the 
National Center for Family Literacy.
    ``(d) National Institute for Literacy--For purposes of 
funds reserved under section 1202(b)(1)(D) to carry out this 
section, the National Institute for Literacy shall administer 
such funds in accordance with section 242(b) of Public Law 105-
220 (relating to the establishment and administration of the 
National Institute for Literacy).

``SEC. 1208. DEFINITIONS.

    ``In this subpart:
            ``(1) Eligible local educational agency.--The term 
        `eligible local educational agency' means a local 
        educational agency that--
                    ``(A) is among the local educational 
                agencies in the State with the highest numbers 
                or percentages of students in kindergarten 
                through grade 3 reading below grade level, 
                based on the most currently available data; and
                    ``(B) has--
                            ``(i) jurisdiction over a 
                        geographic area that includes an area 
                        designated as an empowerment zone, or 
                        an enterprise community, under part I 
                        of subchapter U of chapter 1 of the 
                        Internal Revenue Code of 1986;
                            ``(ii) jurisdiction over a 
                        significant number or percentage of 
                        schools that are identified for school 
                        improvement under section 1116(b); or
                            ``(iii) the highest numbers or 
                        percentages of children who are counted 
                        under section 1124(c), in comparison to 
                        other local educational agencies in the 
                        State.
            ``(2) Eligible professional development provider.--
        The term `eligible professional development provider' 
        means a provider of professional development in reading 
        instruction to teachers, including special education 
        teachers, that is based on scientifically based reading 
        research.
            ``(3) Essential components of reading 
        instruction.--The term `essential components of reading 
        instruction' means explicit and systematic instruction 
        in--
                    ``(A) phonemic awareness;
                    ``(B) phonics;
                    ``(C) vocabulary development;
                    ``(D) reading fluency, including oral 
                reading skills; and
                    ``(E) reading comprehension strategies.
            ``(4) Instructional staff.--The term `instructional 
        staff'--
                    ``(A) means individuals who have 
                responsibility for teaching children to read; 
                and
                    ``(B) includes principals, teachers, 
                supervisors of instruction, librarians, library 
                school media specialists, teachers of academic 
                subjects other than reading, and other 
                individuals who have responsibility for 
                assisting children to learn to read.
            ``(5) Reading.--The term `reading' means a complex 
        system of deriving meaning from print that requires all 
        of the following:
                    ``(A) The skills and knowledge to 
                understand how phonemes, or speech sounds, are 
                connected to print.
                    ``(B) The ability to decode unfamiliar 
                words.
                    ``(C) The ability to read fluently.
                    ``(D) Sufficient background information and 
                vocabulary to foster reading comprehension.
                    ``(E) The development of appropriate active 
                strategies to construct meaning from print.
                    ``(F) The development and maintenance of a 
                motivation to read.
            ``(6) Scientifically based reading research.--The 
        term `scientifically based reading research' means 
        research that--
                    ``(A) applies rigorous, systematic, and 
                objective procedures to obtain valid knowledge 
                relevant to reading development, reading 
                instruction, and reading difficulties; and
                    ``(B) includes research that--
                            ``(i) employs systematic, empirical 
                        methods that draw on observation or 
                        experiment;
                            ``(ii) involves rigorous data 
                        analyses that are adequate to test the 
                        stated hypotheses and justify the 
                        general conclusions drawn;
                            ``(iii) relies on measurements or 
                        observational methods that provide 
                        valid data across evaluators and 
                        observers and across multiple 
                        measurements and observations; and
                            ``(iv) has been accepted by a peer-
                        reviewed journal or approved by a panel 
                        of independent experts through a 
                        comparably rigorous, objective, and 
                        scientific review.
            ``(7) Screening, diagnostic, and classroom-based 
        instructional reading assessments.--
                    ``(A) In general.--The term `screening, 
                diagnostic, and classroom-based instructional 
                reading assessments' means--
                            ``(i) screening reading 
                        assessments;
                            ``(ii) diagnostic reading 
                        assessments; and
                            ``(iii) classroom-based 
                        instructional reading assessments.
                    ``(B) Screening reading assessment.--The 
                term `screening reading assessment' means an 
                assessment that is--
                            ``(i) valid, reliable, and based on 
                        scientifically based reading research; 
                        and
                            ``(ii) a brief procedure designed 
                        as a first step in identifying children 
                        who may be at high risk for delayed 
                        development or academic failure and in 
                        need of further diagnosis of their need 
                        for special services or additional 
                        reading instruction.
                    ``(C) Diagnostic reading assessment.--The 
                term `diagnostic reading assessment' means an 
                assessment that is--
                            ``(i) valid, reliable, and based on 
                        scientifically based reading research; 
                        and
                            ``(ii) used for the purpose of--
                                    ``(I) identifying a child's 
                                specific areas of strengths and 
                                weaknesses so that the child 
                                has learned to read by the end 
                                of grade 3;
                                    ``(II) determining any 
                                difficulties that a child may 
                                have in learning to read and 
                                the potential cause of such 
                                difficulties; and
                                    ``(III) helping to 
                                determine possible reading 
                                intervention strategies and 
                                related special needs.
                    ``(D) Classroom-based instructional reading 
                assessment.--The term `classroom-based 
                instructional reading assessment' means an 
                assessment that--
                            ``(i) evaluates children's learning 
                        based on systematic observations by 
                        teachers of children performing 
                        academic tasks that are part of their 
                        daily classroom experience; and
                            ``(ii) is used to improve 
                        instruction in reading, including 
                        classroom instruction.

                    ``Subpart 2--Early Reading First

``SEC. 1221. PURPOSES; DEFINITIONS.

    ``(a) Purposes.--The purposes of this subpart are as 
follows:
            ``(1) To support local efforts to enhance the early 
        language, literacy, and prereading development of 
        preschool age children, particularly those from low-
        income families, through strategies and professional 
        development that are based on scientifically based 
        reading research.
            ``(2) To provide preschool age children with 
        cognitive learning opportunities in high-quality 
        language and literature-rich environments, so that the 
        children can attain the fundamental knowledge and 
        skills necessary for optimal reading development in 
        kindergarten and beyond.
            ``(3) To demonstrate language and literacy 
        activities based on scientifically based reading 
        research that supports the age-appropriate development 
        of--
                    ``(A) recognition, leading to automatic 
                recognition, of letters of the alphabet;
                    ``(B) knowledge of letter sounds, the 
                blending of sounds, and the use of increasingly 
                complex vocabulary;
                    ``(C) an understanding that written 
                language is composed of phonemes and letters 
                each representing 1 or more speech sounds that 
                in combination make up syllables, words, and 
                sentences;
                    ``(D) spoken language, including vocabulary 
                and oral comprehension abilities; and
                    ``(E) knowledge of the purposes and 
                conventions of print.
            ``(4) To use screening assessments to effectively 
        identify preschool age children who may be at risk for 
        reading failure.
            ``(5) To integrate such scientific reading 
        research-based instructional materials and literacy 
        activities with existing programs of preschools, child 
        care agencies and programs, Head Start centers, and 
        family literacy services.
    ``(b) Definitions.--For purposes of this subpart:
            ``(1) Eligible applicant.--The term `eligible 
        applicant' means--
                    ``(A) one or more local educational 
                agencies that are eligible to receive a 
                subgrant under subpart 1;
                    ``(B) one or more public or private 
                organizations or agencies, acting on behalf of 
                1 or more programs that serve preschool age 
                children (such as a program at a Head Start 
                center, a child care program, or a family 
                literacy program), which organizations or 
                agencies shall be located in a community served 
                by a local educational agency described in 
                subparagraph (A); or
                    ``(C) one or more local educational 
                agencies described in subparagraph (A) in 
                collaboration with 1 or more organizations or 
                agencies described in subparagraph (B).
            ``(2) Scientifically based reading research.--The 
        term `scientifically based reading research' has the 
        same meaning given to that term in section 1208.
            ``(3) Screening reading assessment.--The term 
        `screening reading assessment' has the same meaning 
        given to that term in section 1208.

``SEC. 1222. LOCAL EARLY READING FIRST GRANTS.

    ``(a) Program Authorized.--From amounts appropriated under 
section 1002(b)(2), the Secretary shall award grants, on a 
competitive basis, for periods of not more than 6 years, to 
eligible applicants to enable the eligible applicants to carry 
out the authorized activities described in subsection (d).
    ``(b) Applications.--An eligible applicant that desires to 
receive a grant under this section shall submit an application 
to the Secretary, which shall include a description of--
            ``(1) the programs to be served by the proposed 
        project, including demographic and socioeconomic 
        information on the preschool age children enrolled in 
        the programs;
            ``(2) how the proposed project will enhance the 
        school readiness of preschool age children in high-
        quality oral language and literature-rich environments;
            ``(3) how the proposed project will prepare and 
        provide ongoing assistance to staff in the programs, 
        through professional development and other support, to 
        provide high-quality language, literacy, and prereading 
        activities using scientifically based reading research, 
        for preschool age children;
            ``(4) how the proposed project will provide 
        services and use instructional materials that are based 
        on scientifically based reading research on early 
        language acquisition, prereading activities, and the 
        development of spoken vocabulary skills;
            ``(5) how the proposed project will help staff in 
        the programs to meet more effectively the diverse needs 
        of preschool age children in the community, including 
        such children with limited English proficiency, 
        disabilities, or other special needs;
            ``(6) how the proposed project will integrate such 
        instructional materials and literacy activities with 
        existing preschool programs and family literacy 
        services;
            ``(7) how the proposed project will help children, 
        particularly children experiencing difficulty with 
        spoken language, prereading, and early reading skills, 
        to make the transition from preschool to formal 
        classroom instruction in school;
            ``(8) if the eligible applicant has received a 
        subgrant under subpart 1, how the activities conducted 
        under this subpart will be coordinated with the 
        eligible applicant's activities under subpart 1 at the 
        kindergarten through grade 3 level;
            ``(9) how the proposed project will evaluate the 
        success of the activities supported under this subpart 
        in enhancing the early language, literacy, and 
        prereading development of preschool age children served 
        by the project; and
            ``(10) such other information as the Secretary may 
        require.
    ``(c) Approval of Local Applications.--The Secretary shall 
select applicants for funding under this subpart based on the 
quality of the applications and the recommendations of a peer 
review panel convened under section 1203(c)(2), that includes, 
at a minimum, 3 individuals, selected from the entities 
described in clauses (ii), (iii), and (iv) of section 
1203(c)(2)(A), who are experts in early reading development and 
early childhood development.
    ``(d) Authorized Activities.--An eligible applicant that 
receives a grant under this subpart shall use the funds 
provided under the grant to carry out the following activities:
            ``(1) Providing preschool age children with high-
        quality oral language and literature-rich environments 
        in which to acquire language and prereading skills.
            ``(2) Providing professional development that is 
        based on scientifically based reading research 
        knowledge of early language and reading development for 
        the staff of the eligible applicant and that will 
        assist in developing the preschool age children's--
                    ``(A) recognition, leading to automatic 
                recognition, of letters of the alphabet, 
                knowledge of letters, sounds, blending of 
                letter sounds, and increasingly complex 
                vocabulary;
                    ``(B) understanding that written language 
                is composed of phonemes and letters each 
                representing 1 or more speech sounds that in 
                combination make up syllables, words, and 
                sentences;
                    ``(C) spoken language, including vocabulary 
                and oral comprehension abilities; and
                    ``(D) knowledge of the purposes and 
                conventions of print.
            ``(3) Identifying and providing activities and 
        instructional materials that are based on 
        scientifically based reading research for use in 
        developing the skills and abilities described in 
        paragraph (2).
            ``(4) Acquiring, providing training for, and 
        implementing screening reading assessments or other 
        appropriate measures that are based on scientifically 
        based reading research to determine whether preschool 
        age children are developing the skills described in 
        this subsection.
            ``(5) Integrating such instructional materials, 
        activities, tools, and measures into the programs 
        offered by the eligible applicant.
    ``(e) Award Amounts.--The Secretary may establish a maximum 
award amount, or ranges of award amounts, for grants under this 
subpart.

``SEC. 1223. FEDERAL ADMINISTRATION.

    ``The Secretary shall consult with the Secretary of Health 
and Human Services to coordinate the activities under this 
subpart with preschool age programs administered by the 
Department of Health and Human Services.

``SEC. 1224. INFORMATION DISSEMINATION.

    ``From the funds the National Institute for Literacy 
receives under section 1202(b)(1)(D), the National Institute 
for Literacy, in consultation with the Secretary, shall 
disseminate information regarding projects assisted under this 
subpart that have proven effective.

``SEC. 1225. REPORTING REQUIREMENTS.

    ``Each eligible applicant receiving a grant under this 
subpart shall report annually to the Secretary regarding the 
eligible applicant's progress in addressing the purposes of 
this subpart. Such report shall include, at a minimum, a 
description of--
            ``(1) the research-based instruction, materials, 
        and activities being used in the programs funded under 
        the grant;
            ``(2) the types of programs funded under the grant 
        and the ages of children served by such programs;
            ``(3) the qualifications of the program staff who 
        provide early literacy instruction under such programs 
        and the type of ongoing professional development 
        provided to such staff; and
            ``(4) the results of the evaluation described in 
        section 1222(b)(9).

``SEC. 1226. EVALUATION.

    ``(a) In General.--From the total amount made available 
under section 1002(b)(2) for the period beginning October 1, 
2002, and ending September 30, 2006, the Secretary shall 
reserve not more than $3,000,000 to conduct an independent 
evaluation of the effectiveness of this subpart.
    ``(b) Reports.--
            ``(1) Interim report.--Not later than October 1, 
        2004, the Secretary shall submit an interim report to 
        the Committee on Education and the Workforce of the 
        House of Representatives and the Committee on Health, 
        Education, Labor, and Pensions of the Senate.
            ``(2) Final report.--Not later than September 30, 
        2006, the Secretary shall submit a final report to the 
        committees described in paragraph (1).
    ``(c) Contents.--The reports submitted under subsection (b) 
shall include information on the following:
            ``(1) How the grant recipients under this subpart 
        are improving the prereading skills of preschool 
        children.
            ``(2) The effectiveness of the professional 
        development program assisted under this subpart.
            ``(3) How early childhood teachers are being 
        prepared with scientifically based reading research on 
        early reading development.
            ``(4) What activities and instructional practices 
        are most effective.
            ``(5) How prereading instructional materials and 
        literacy activities based on scientifically based 
        reading research are being integrated into preschools, 
        child care agencies and programs, programs carried out 
        under the Head Start Act, and family literacy programs.
            ``(6) Any recommendations on strengthening or 
        modifying this subpart.

  ``Subpart 3--William F. Goodling Even Start Family Literacy Programs

``SEC. 1231. STATEMENT OF PURPOSE.

    ``It is the purpose of this subpart to help break the cycle 
of poverty and illiteracy by--
            ``(1) improving the educational opportunities of 
        the Nation's low-income families by integrating early 
        childhood education, adult literacy or adult basic 
        education, and parenting education into a unified 
        family literacy program, to be referred to as `Even 
        Start'; and
            ``(2) establishing a program that shall--
                    ``(A) be implemented through cooperative 
                projects that build on high-quality existing 
                community resources to create a new range of 
                services;
                    ``(B) promote the academic achievement of 
                children and adults;
                    ``(C) assist children and adults from low-
                income families to achieve to challenging State 
                content standards and challenging State student 
                achievement standards; and
                    ``(D) use instructional programs based on 
                scientifically based reading research and 
                addressing the prevention of reading 
                difficulties for children and adults, to the 
                extent such research is available.

``SEC. 1232. PROGRAM AUTHORIZED.

    ``(a) Reservation for Migrant Programs, Outlying Areas, and 
Indian Tribes.--
            ``(1) In general.--For each fiscal year, the 
        Secretary shall reserve 5 percent of the amount 
        appropriated under section 1002(b)(3) (or, if such 
        appropriated amount exceeds $200,000,000, 6 percent of 
        such amount) for programs, under such terms and 
        conditions as the Secretary shall establish, that are 
        consistent with the purpose of this subpart, and 
        according to their relative needs, for--
                    ``(A) children of migratory workers;
                    ``(B) the outlying areas; and
                    ``(C) Indian tribes and tribal 
                organizations.
            ``(2) Special rule.--After December 21, 2000, the 
        Secretary shall award a grant, on a competitive basis, 
        of sufficient size and for a period of sufficient 
        duration to demonstrate the effectiveness of a family 
        literacy program in a prison that houses women and 
        their preschool age children and that has the 
        capability of developing a program of high quality.
            ``(3) Coordination of programs for american 
        indians.--The Secretary shall ensure that programs 
        under paragraph (1)(C) are coordinated with family 
        literacy programs operated by the Bureau of Indian 
        Affairs in order to avoid duplication and to encourage 
        the dissemination of information on high-quality family 
        literacy programs serving American Indians.
    ``(b) Reservation for Federal Activities.--
            ``(1) Evaluation, technical assistance, program 
        improvement, and replication activities.--Subject to 
        paragraph (2), from amounts appropriated under section 
        1002(b)(3), the Secretary may reserve not more than 3 
        percent of such amounts for purposes of--
                    ``(A) carrying out the evaluation required 
                by section 1239; and
                    ``(B) providing, through grants or 
                contracts with eligible organizations, 
                technical assistance, program improvement, and 
                replication activities.
            ``(2) Research.--In any fiscal year, if the amount 
        appropriated under section 1002(b)(3) for such year--
                    ``(A) is equal to or less than the amount 
                appropriated for the preceding fiscal year, the 
                Secretary may reserve from such amount only the 
                amount necessary to continue multi-year 
                activities carried out pursuant to section 
                1241(b) that began during or prior to the 
                fiscal year preceding the fiscal year for which 
                the determination is made; or
                    ``(B) exceeds the amount appropriated for 
                the preceding fiscal year, then the Secretary 
                shall reserve from such excess amount 
                $2,000,000 or 50 percent, whichever is less, to 
                carry out section 1241(b).
    ``(c) Reservation for Grants.--
            ``(1) Grants authorized.--
                    ``(A) In general.--For any fiscal year for 
                which at least 1 State educational agency 
                applies and submits an application that meets 
                the requirements and goals of this subsection 
                and for which the amount appropriated under 
                section 1002(b)(3) exceeds the amount 
                appropriated under that section for the 
                preceding fiscal year, the Secretary shall 
                reserve, from the amount of the excess 
                remaining after the application of subsection 
                (b)(2), the amount of the remainder or 
                $1,000,000, whichever is less, to award grants, 
                on a competitive basis, to State educational 
                agencies to enable them to plan and implement 
                statewide family literacy initiatives to 
                coordinate and, where appropriate, integrate 
                existing Federal, State, and local literacy 
                resources consistent with the purposes of this 
                subpart.
                    ``(B) Coordination and integration.--The 
                coordination and integration described in 
                subparagraph (A) shall include coordination and 
                integration of funds available under the Adult 
                Education and Family Literacy Act, the Head 
                Start Act, this subpart, part A of this title, 
                and part A of title IV of the Social Security 
                Act.
                    ``(C) Restriction.--No State educational 
                agency may receive more than 1 grant under this 
                subsection.
            ``(2) Consortia.--
                    ``(A) Establishment.--To receive a grant 
                under this subsection, a State educational 
                agency shall establish a consortium of State-
                level programs under the following provisions 
                of laws:
                            ``(i) This title (other than part 
                        D).
                            ``(ii) The Head Start Act.
                            ``(iii) The Adult Education and 
                        Family Literacy Act.
                            ``(iv) All other State-funded 
                        preschool programs and programs 
                        providing literacy services to adults.
                    ``(B) Plan.--To receive a grant under this 
                subsection, the consortium established by a 
                State educational agency shall create a plan to 
                use a portion of the State educational agency's 
                resources, derived from the programs referred 
                to in subparagraph (A), to strengthen and 
                expand family literacy services in the State.
                    ``(C) Coordination with subpart 1.--The 
                consortium shall coordinate its activities 
                under this paragraph with the activities of the 
                reading and literacy partnership for the State 
                educational agency established under section 
                1203(d), if the State educational agency 
                receives a grant under section 1202.
            ``(3) Reading instruction.--Statewide family 
        literacy initiatives implemented under this subsection 
        shall base reading instruction on scientifically based 
        reading research.
            ``(4) Technical assistance.--The Secretary shall 
        provide, directly or through a grant or contract with 
        an organization with experience in the development and 
        operation of successful family literacy services, 
        technical assistance to State educational agencies 
        receiving a grant under this subsection.
            ``(5) Matching requirement.--The Secretary shall 
        not make a grant to a State educational agency under 
        this subsection unless the State educational agency 
        agrees that, with respect to the costs to be incurred 
        by the eligible consortium in carrying out the 
        activities for which the grant was awarded, the State 
        educational agency will make available non-Federal 
        contributions in an amount equal to not less than the 
        Federal funds provided under the grant.
    ``(d) State Educational Agency Allocation.--
            ``(1) In general.--From amounts appropriated under 
        section 1002(b)(3) and not reserved under subsection 
        (a), (b), or (c), the Secretary shall make grants to 
        State educational agencies from allocations under 
        paragraph (2).
            ``(2) Allocations.--Except as provided in paragraph 
        (3), from the total amount available under paragraph 
        (1) for allocation to State educational agencies in any 
        fiscal year, each State educational agency shall be 
        eligible to receive a grant under paragraph (1) in an 
        amount that bears the same ratio to the total amount as 
        the amount allocated under part A to that State 
        educational agency bears to the total amount allocated 
        under that part to all State educational agencies.
            ``(3) Minimum.--No State educational agency shall 
        receive a grant under paragraph (1) in any fiscal year 
        in an amount that is less than $250,000, or \1/2\ of 1 
        percent of the amount appropriated under section 
        1002(b)(3) and not reserved under subsections (a), (b), 
        and (c) for such year, whichever is greater.
    ``(e) Definitions.--For the purpose of this subpart--
            ``(1) the term `eligible entity' means a 
        partnership composed of--
                    ``(A) a local educational agency; and
                    ``(B) a nonprofit community-based 
                organization, a public agency other than a 
                local educational agency, an institution of 
                higher education, or a public or private 
                nonprofit organization other than a local 
                educational agency, of demonstrated quality;
            ``(2) the term `eligible organization' means any 
        public or private nonprofit organization with a record 
        of providing effective services to family literacy 
        providers, such as the National Center for Family 
        Literacy, Parents as Teachers, Inc., the Home 
        Instruction Program for Preschool Youngsters, and the 
        Home and School Institute, Inc.;
            ``(3) the terms `Indian tribe' and `tribal 
        organization' have the meanings given those terms in 
        section 4 of the Indian Self-Determination and 
        Education Assistance Act;
            ``(4) the term `scientifically based reading 
        research' has the meaning given that term in section 
        1208; and
            ``(5) the term `State' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of 
        Puerto Rico.

``SEC. 1233. STATE EDUCATIONAL AGENCY PROGRAMS.

    ``(a) State Educational Agency Level Activities.--Each 
State educational agency that receives a grant under section 
1232(d)(1) may use not more than a total of 6 percent of the 
grant funds for the costs of--
            ``(1) administration, which amount shall not exceed 
        half of the total;
            ``(2) providing, through 1 or more subgrants or 
        contracts, technical assistance for program improvement 
        and replication, to eligible entities that receive 
        subgrants under subsection (b); and
            ``(3) carrying out sections 1240 and 1234(c).
    ``(b) Subgrants for Local Programs.--
            ``(1) In general.--Each State educational agency 
        shall use the grant funds received under section 
        1232(d)(1) and not reserved under subsection (a) to 
        award subgrants to eligible entities to carry out Even 
        Start programs.
            ``(2) Minimum subgrant amounts.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), no State educational 
                agency shall award a subgrant under paragraph 
                (1) in an amount less than $75,000.
                    ``(B) Subgrantees in ninth and succeeding 
                years.--No State educational agency shall award 
                a subgrant under paragraph (1) in an amount 
                less than $52,500 to an eligible entity for a 
                fiscal year to carry out an Even Start program 
                that is receiving assistance under this subpart 
                or its predecessor authority for the ninth (or 
                any subsequent) fiscal year.
                    ``(C) Exception for single subgrant.--A 
                State educational agency may award 1 subgrant 
                in each fiscal year of sufficient size, scope, 
                and quality to be effective in an amount less 
                than $75,000 if, after awarding subgrants under 
                paragraph (1) for that fiscal year in 
                accordance with subparagraphs (A) and (B), less 
                than $75,000 is available to the State 
                educational agency to award those subgrants.

``SEC. 1234. USES OF FUNDS.

    ``(a) In General.--In carrying out an Even Start program 
under this subpart, a recipient of funds under this subpart 
shall use those funds to pay the Federal share of the cost of 
providing intensive family literacy services that involve 
parents and children, from birth through age 7, in a 
cooperative effort to help parents become full partners in the 
education of their children and to assist children in reaching 
their full potential as learners.
    ``(b) Federal Share Limitation.--
            ``(1) In general.--
                    ``(A) Federal share.--Except as provided in 
                paragraph (2), the Federal share under this 
                subpart may not exceed--
                            ``(i) 90 percent of the total cost 
                        of the program in the first year that 
                        the program receives assistance under 
                        this subpart or its predecessor 
                        authority;
                            ``(ii) 80 percent in the second 
                        year;
                            ``(iii) 70 percent in the third 
                        year;
                            ``(iv) 60 percent in the fourth 
                        year;
                            ``(v) 50 percent in the fifth, 
                        sixth, seventh, and eighth such years; 
                        and
                            ``(vi) 35 percent in any subsequent 
                        year.
                    ``(B) Remaining cost.--The remaining cost 
                of a program assisted under this subpart may be 
                provided in cash or in kind, fairly evaluated, 
                and may be obtained from any source, including 
                other Federal funds under this Act.
            ``(2) Waiver.--The State educational agency may 
        waive, in whole or in part, the Federal share described 
        in paragraph (1) for an eligible entity if the entity--
                    ``(A) demonstrates that it otherwise would 
                not be able to participate in the program 
                assisted under this subpart; and
                    ``(B) negotiates an agreement with the 
                State educational agency with respect to the 
                amount of the remaining cost to which the 
                waiver will be applicable.
            ``(3) Prohibition.--Federal funds provided under 
        this subpart may not be used for the indirect costs of 
        a program assisted under this subpart, except that the 
        Secretary may waive this paragraph if an eligible 
        recipient of funds reserved under section 1232(a)(1)(C) 
        demonstrates to the Secretary's satisfaction that the 
        recipient otherwise would not be able to participate in 
        the program assisted under this subpart.
    ``(c) Use of Funds for Family Literacy Services.--
            ``(1) In general.--A State educational agency may 
        use a portion of funds reserved under section 1233(a), 
        to assist eligible entities receiving a subgrant under 
        section 1233(b) in improving the quality of family 
        literacy services provided under Even Start programs 
        under this subpart, except that in no case may a State 
        educational agency's use of funds for this purpose for 
        a fiscal year result in a decrease from the level of 
        activities and services provided to program 
        participants in the preceding year.
            ``(2) Priority.--In carrying out paragraph (1), a 
        State educational agency shall give priority to 
        programs that were of low quality, as evaluated based 
        on the indicators of program quality developed by the 
        State educational agency under section 1240.
            ``(3) Technical assistance to help local programs 
        raise additional funds.--In carrying out paragraph (1), 
        a State educational agency may use the funds referred 
        to in that paragraph to provide technical assistance to 
        help local programs of demonstrated effectiveness to 
        access and leverage additional funds for the purpose of 
        expanding services and reducing waiting lists, 
        including requesting and applying for non-Federal 
        resources.
            ``(4) Technical assistance and training.--
        Assistance under paragraph (1) shall be in the form of 
        technical assistance and training, provided by a State 
        educational agency through a grant, contract, or 
        cooperative agreement with an entity that has 
        experience in offering high-quality training and 
        technical assistance to family literacy providers.

``SEC. 1235. PROGRAM ELEMENTS.

    ``Each program assisted under this subpart shall--
            ``(1) include the identification and recruitment of 
        families most in need of services provided under this 
        subpart, as indicated by a low level of income, a low 
        level of adult literacy or English language proficiency 
        of the eligible parent or parents, and other need-
        related indicators;
            ``(2) include screening and preparation of parents, 
        including teenage parents, and children to enable those 
        parents and children to participate fully in the 
        activities and services provided under this subpart, 
        including testing, referral to necessary counselling, 
        other developmental and support services, and related 
        services;
            ``(3) be designed to accommodate the participants' 
        work schedule and other responsibilities, including the 
        provision of support services, when those services are 
        unavailable from other sources, necessary for 
        participation in the activities assisted under this 
        subpart, such as--
                    ``(A) scheduling and locating of services 
                to allow joint participation by parents and 
                children;
                    ``(B) child care for the period that 
                parents are involved in the program provided 
                under this subpart; and
                    ``(C) transportation for the purpose of 
                enabling parents and their children to 
                participate in programs authorized by this 
                subpart;
            ``(4) include high-quality, intensive instructional 
        programs that promote adult literacy and empower 
        parents to support the educational growth of their 
        children, developmentally appropriate early childhood 
        educational services, and preparation of children for 
        success in regular school programs;
            ``(5) with respect to the qualifications of staff 
        the cost of whose salaries are paid, in whole or in 
        part, with Federal funds provided under this subpart, 
        ensure that--
                    ``(A) not later than December 21, 2004--
                            ``(i) a majority of the individuals 
                        providing academic instruction--
                                    ``(I) shall have obtained 
                                an associate's, bachelor's, or 
                                graduate degree in a field 
                                related to early childhood 
                                education, elementary school or 
                                secondary school education, or 
                                adult education; and
                                    ``(II) if applicable, shall 
                                meet qualifications established 
                                by the State for early 
                                childhood education, elementary 
                                school or secondary school 
                                education, or adult education 
                                provided as part of an Even 
                                Start program or another family 
                                literacy program;
                            ``(ii) the individual responsible 
                        for administration of family literacy 
                        services under this subpart has 
                        received training in the operation of a 
                        family literacy program; and
                            ``(iii) paraprofessionals who 
                        provide support for academic 
                        instruction have a secondary school 
                        diploma or its recognized equivalent; 
                        and
                    ``(B) all new personnel hired to provide 
                academic instruction--
                            ``(i) have obtained an associate's, 
                        bachelor's, or graduate degree in a 
                        field related to early childhood 
                        education, elementary school or 
                        secondary school education, or adult 
                        education; and
                            ``(ii) if applicable, meet 
                        qualifications established by the State 
                        for early childhood education, 
                        elementary school or secondary school 
                        education, or adult education provided 
                        as part of an Even Start program or 
                        another family literacy program;
            ``(6) include special training of staff, including 
        child-care staff, to develop the skills necessary to 
        work with parents and young children in the full range 
        of instructional services offered through this subpart;
            ``(7) provide and monitor integrated instructional 
        services to participating parents and children through 
        home-based programs;
            ``(8) operate on a year-round basis, including the 
        provision of some program services, including 
        instructional and enrichment services, during the 
        summer months;
            ``(9) be coordinated with--
                    ``(A) other programs assisted under this 
                Act;
                    ``(B) any relevant programs under the Adult 
                Education and Family Literacy Act, the 
                Individuals with Disabilities Education Act, 
                and title I of the Workforce Investment Act of 
                1998; and
                    ``(C) the Head Start program, volunteer 
                literacy programs, and other relevant programs;
            ``(10) use instructional programs based on 
        scientifically based reading research for children and 
        adults, to the extent that research is available;
            ``(11) encourage participating families to attend 
        regularly and to remain in the program a sufficient 
        time to meet their program goals;
            ``(12) include reading-readiness activities for 
        preschool children based on scientifically based 
        reading research, to the extent available, to ensure 
        that children enter school ready to learn to read;
            ``(13) if applicable, promote the continuity of 
        family literacy to ensure that individuals retain and 
        improve their educational outcomes;
            ``(14) ensure that the programs will serve those 
        families most in need of the activities and services 
        provided by this subpart; and
            ``(15) provide for an independent evaluation of the 
        program, to be used for program improvement.

``SEC. 1236. ELIGIBLE PARTICIPANTS.

    ``(a) In General.--Except as provided in subsection (b), 
eligible participants in an Even Start program are--
            ``(1) a parent or parents--
                    ``(A) who are eligible for participation in 
                adult education and literacy activities under 
                the Adult Education and Family Literacy Act; or
                    ``(B) who are within the State's compulsory 
                school attendance age range, so long as a local 
                educational agency provides (or ensures the 
                availability of) the basic education component 
                required under this subpart, or who are 
                attending secondary school; and
            ``(2) the child or children, from birth through age 
        7, of any individual described in paragraph (1).
    ``(b) Eligibility for Certain Other Participants.--
            ``(1) In general.--Family members of eligible 
        participants described in subsection (a) may 
        participate in activities and services provided under 
        this subpart, when appropriate to serve the purpose of 
        this subpart.
            ``(2) Special rule.--Any family participating in a 
        program assisted under this subpart that becomes 
        ineligible to participate as a result of 1 or more 
        members of the family becoming ineligible to 
        participate may continue to participate in the program 
        until all members of the family become ineligible to 
        participate, which--
                    ``(A) in the case of a family in which 
                ineligibility was due to the child or children 
                of the family attaining the age of 8, shall be 
                in 2 years or when the parent or parents become 
                ineligible due to educational advancement, 
                whichever occurs first; and
                    ``(B) in the case of a family in which 
                ineligibility was due to the educational 
                advancement of the parent or parents of the 
                family, shall be when all children in the 
                family attain the age of 8.
            ``(3) Children 8 years of age or older.--If an Even 
        Start program assisted under this subpart collaborates 
        with a program under part A, and funds received under 
        the part A program contribute to paying the cost of 
        providing programs under this subpart to children 8 
        years of age or older, the Even Start program may, 
        notwithstanding subsection (a)(2), permit the 
        participation of children 8 years of age or older if 
        the focus of the program continues to remain on 
        families with young children.

``SEC. 1237. APPLICATIONS.

    ``(a) Submission.--To be eligible to receive a subgrant 
under this subpart, an eligible entity shall submit an 
application to the State educational agency in such form and 
containing or accompanied by such information as the State 
educational agency shall require.
    ``(b) Required Documentation.--Each application shall 
include documentation, satisfactory to the State educational 
agency, that the eligible entity has the qualified personnel 
needed--
            ``(1) to develop, administer, and implement an Even 
        Start program under this subpart; and
            ``(2) to provide access to the special training 
        necessary to prepare staff for the program, which may 
        be offered by an eligible organization.
    ``(c) Plan.--
            ``(1) In general.--The application shall also 
        include a plan of operation and continuous improvement 
        for the program, that includes--
                    ``(A) a description of the program 
                objectives, strategies to meet those 
                objectives, and how those strategies and 
                objectives are consistent with the program 
                indicators established by the State;
                    ``(B) a description of the activities and 
                services that will be provided under the 
                program, including a description of how the 
                program will incorporate the program elements 
                required by section 1235;
                    ``(C) a description of the population to be 
                served and an estimate of the number of 
                participants to be served;
                    ``(D) as appropriate, a description of the 
                applicant's collaborative efforts with 
                institutions of higher education, community-
                based organizations, the State educational 
                agency, private elementary schools, or other 
                eligible organizations in carrying out the 
                program for which assistance is sought;
                    ``(E) a statement of the methods that will 
                be used--
                            ``(i) to ensure that the programs 
                        will serve families most in need of the 
                        activities and services provided by 
                        this subpart;
                            ``(ii) to provide services under 
                        this subpart to individuals with 
                        special needs, such as individuals with 
                        limited English proficiency and 
                        individuals with disabilities; and
                            ``(iii) to encourage participants 
                        to remain in the program for a time 
                        sufficient to meet the program's 
                        purpose;
                    ``(F) a description of how the plan is 
                integrated with other programs under this Act 
                or other Acts, as appropriate; and
                    ``(G) a description of how the plan 
                provides for rigorous and objective evaluation 
                of progress toward the program objectives 
                described in subparagraph (A) and for 
                continuing use of evaluation data for program 
                improvement.
            ``(2) Duration of the plan.--Each plan submitted 
        under paragraph (1) shall--
                    ``(A) remain in effect for the duration of 
                the eligible entity's participation under this 
                subpart; and
                    ``(B) be periodically reviewed and revised 
                by the eligible entity as necessary.
    ``(d) Consolidated Application.--The plan described in 
subsection (c)(1)(F) may be submitted as part of a consolidated 
application under section 9302.

``SEC. 1238. AWARD OF SUBGRANTS.

    ``(a) Selection Process.--
            ``(1) In general.--The State educational agency 
        shall establish a review panel in accordance with 
        paragraph (3) that will approve applications that--
                    ``(A) are most likely to be successful in--
                            ``(i) meeting the purpose of this 
                        subpart; and
                            ``(ii) effectively implementing the 
                        program elements required under section 
                        1235;
                    ``(B) demonstrate that the area to be 
                served by the program has a high percentage or 
                a large number of children and families who are 
                in need of those services as indicated by high 
                levels of poverty, illiteracy, unemployment, 
                limited English proficiency, or other need-
                related indicators, such as a high percentage 
                of children to be served by the program who 
                reside in a school attendance area served by a 
                local educational agency eligible for 
                participation in programs under part A, a high 
                number or percentage of parents who have been 
                victims of domestic violence, or a high number 
                or percentage of parents who are receiving 
                assistance under a State program funded under 
                part A of title IV of the Social Security Act 
                (42 U.S.C. 601 et seq.);
                    ``(C) provide services for at least a 3-
                year age range, which may begin at birth;
                    ``(D) demonstrate the greatest possible 
                cooperation and coordination between a variety 
                of relevant service providers in all phases of 
                the program;
                    ``(E) include cost-effective budgets, given 
                the scope of the application;
                    ``(F) demonstrate the applicant's ability 
                to provide the non-Federal share required by 
                section 1234(b);
                    ``(G) are representative of urban and rural 
                regions of the State; and
                    ``(H) show the greatest promise for 
                providing models that may be adopted by other 
                family literacy projects and other local 
                educational agencies.
            ``(2) Priority for subgrants.--The State 
        educational agency shall give priority for subgrants 
        under this subsection to applications that--
                    ``(A) target services primarily to families 
                described in paragraph (1)(B); or
                    ``(B) are located in areas designated as 
                empowerment zones or enterprise communities.
            ``(3) Review panel.--A review panel shall consist 
        of at least 3 members, including 1 early childhood 
        professional, 1 adult education professional, and 1 
        individual with expertise in family literacy programs, 
        and may include other individuals, such as 1 or more of 
        the following:
                    ``(A) A representative of a parent-child 
                education organization.
                    ``(B) A representative of a community-based 
                literacy organization.
                    ``(C) A member of a local board of 
                education.
                    ``(D) A representative of business and 
                industry with a commitment to education.
                    ``(E) An individual who has been involved 
                in the implementation of programs under this 
                title in the State.
    ``(b) Duration.--
            ``(1) In general.--Subgrants under this subpart may 
        be awarded for a period not to exceed 4 years.
            ``(2) Startup period.--The State educational agency 
        may provide subgrant funds to an eligible recipient, at 
        the recipient's request, for a 3- to 6-month start-up 
        period during the first year of the 4-year grant 
        period, which may include staff recruitment and 
        training, and the coordination of services, before 
        requiring full implementation of the program.
            ``(3) Continuing eligibility.--In awarding subgrant 
        funds to continue a program under this subpart after 
        the first year, the State educational agency shall 
        review the progress of each eligible entity in meeting 
        the objectives of the program referred to in section 
        1237(c)(1)(A) and shall evaluate the program based on 
        the indicators of program quality developed by the 
        State under section 1240.
            ``(4) Insufficient progress.--The State educational 
        agency may refuse to award subgrant funds to an 
        eligible entity if the agency finds that the eligible 
        entity has not sufficiently improved the performance of 
        the program, as evaluated based on the indicators of 
        program quality developed by the State under section 
        1240, after--
                    ``(A) providing technical assistance to the 
                eligible entity; and
                    ``(B) affording the eligible entity notice 
                and an opportunity for a hearing.
            ``(5) Grant renewal.--(A) An eligible entity that 
        has previously received a subgrant under this subpart 
        may reapply under this subpart for additional 
        subgrants.
            ``(B) The Federal share of any subgrant renewed 
        under subparagraph (A) shall be limited in accordance 
        with section 1234(b).

``SEC. 1239. EVALUATION.

    ``From funds reserved under section 1232(b)(1), the 
Secretary shall provide for an independent evaluation of 
programs assisted under this subpart--
            ``(1) to determine the performance and 
        effectiveness of programs assisted under this subpart;
            ``(2) to identify effective Even Start programs 
        assisted under this subpart that can be duplicated and 
        used in providing technical assistance to Federal, 
        State, and local programs; and
            ``(3) to provide State educational agencies and 
        eligible entities receiving a subgrant under this 
        subpart, directly or through a grant or contract with 
        an organization with experience in the development and 
        operation of successful family literacy services, 
        technical assistance to ensure that local evaluations 
        undertaken under section 1235(15) provide accurate 
        information on the effectiveness of programs assisted 
        under this subpart.

``SEC. 1240. INDICATORS OF PROGRAM QUALITY.

    ``Each State educational agency receiving funds under this 
subpart shall develop, based on the best available research and 
evaluation data, indicators of program quality for programs 
assisted under this subpart. The indicators shall be used to 
monitor, evaluate, and improve those programs within the State. 
The indicators shall include the following:
            ``(1) With respect to eligible participants in a 
        program who are adults--
                    ``(A) achievement in the areas of reading, 
                writing, English-language acquisition, problem 
                solving, and numeracy;
                    ``(B) receipt of a secondary school diploma 
                or a general equivalency diploma (GED);
                    ``(C) entry into a postsecondary school, 
                job retraining program, or employment or career 
                advancement, including the military; and
                    ``(D) such other indicators as the State 
                may develop.
            ``(2) With respect to eligible participants in a 
        program who are children--
                    ``(A) improvement in ability to read on 
                grade level or reading readiness;
                    ``(B) school attendance;
                    ``(C) grade retention and promotion; and
                    ``(D) such other indicators as the State 
                may develop.

``SEC. 1241. RESEARCH.

    ``(a) In General.--The Secretary shall carry out, through 
grant or contract, research into the components of successful 
family literacy services, in order to--
            ``(1) improve the quality of existing programs 
        assisted under this subpart or other family literacy 
        programs carried out under this Act or the Adult 
        Education and Family Literacy Act; and
            ``(2) develop models for new programs to be carried 
        out under this Act or the Adult Education and Family 
        Literacy Act.
    ``(b) Scientifically Based Research on Family Literacy.--
            ``(1) In general.--From amounts reserved under 
        section 1232(b)(2), the National Institute for 
        Literacy, in consultation with the Secretary, shall 
        carry out research that--
                    ``(A) is scientifically based reading 
                research; and
                    ``(B) determines--
                            ``(i) the most effective ways of 
                        improving the literacy skills of adults 
                        with reading difficulties; and
                            ``(ii) how family literacy services 
                        can best provide parents with the 
                        knowledge and skills the parents need 
                        to support their children's literacy 
                        development.
            ``(2) Use of expert entity.--The National Institute 
        for Literacy, in consultation with the Secretary, shall 
        carry out the research under paragraph (1) through an 
        entity, including a Federal agency, that has expertise 
        in carrying out longitudinal studies of the development 
        of literacy skills in children and has developed 
        effective interventions to help children with reading 
        difficulties.
    ``(c) Dissemination.--The National Institute for Literacy 
shall disseminate, pursuant to section 1207, the results of the 
research described in subsections (a) and (b) to State 
educational agencies and recipients of subgrants under this 
subpart.

``SEC. 1242. CONSTRUCTION.

    ``Nothing in this subpart shall be construed to prohibit a 
recipient of funds under this subpart from serving students 
participating in Even Start simultaneously with students with 
similar educational needs, in the same educational settings 
where appropriate.

        ``Subpart 4--Improving Literacy Through School Libraries

``SEC. 1251. IMPROVING LITERACY THROUGH SCHOOL LIBRARIES.

    ``(a) Purposes.--The purpose of this subpart is to improve 
literacy skills and academic achievement of students by 
providing students with increased access to up-to-date school 
library materials, a well-equipped, technologically advanced 
school library media center, and well-trained, professionally 
certified school library media specialists.
    ``(b) Reservation.--From the funds appropriated under 
section 1002(b)(4) for a fiscal year, the Secretary shall 
reserve--
            ``(1) \1/2\ of 1 percent to award assistance under 
        this section to the Bureau of Indian Affairs to carry 
        out activities consistent with the purpose of this 
        subpart; and
            ``(2) \1/2\ of 1 percent to award assistance under 
        this section to the outlying areas according to their 
        respective needs for assistance under this subpart.
    ``(c) Grants.--
            ``(1) Competitive grants to eligible local 
        educational agencies.--If the amount of funds 
        appropriated under section 1002(b)(4) for a fiscal year 
        is less than $100,000,000, then the Secretary shall 
        award grants, on a competitive basis, to eligible local 
        educational agencies under subsection (e).
            ``(2) Formula grants to states.--If the amount of 
        funds appropriated under section 1002(b)(4) for a 
        fiscal year equals or exceeds $100,000,000, then the 
        Secretary shall award grants to State educational 
        agencies from allotments under subsection (d).
            ``(3) Definition of eligible local educational 
        agency.--In this section the term `eligible local 
        educational agency' means--
                    ``(A) in the case of a local educational 
                agency receiving assistance made available 
                under paragraph (1), a local educational agency 
                in which 20 percent of the students served by 
                the local educational agency are from families 
                with incomes below the poverty line; and
                    ``(B) in the case of a local educational 
                agency receiving assistance from State 
                allocations made available under paragraph (2), 
                a local educational agency in which--
                            ``(i) 15 percent of the students 
                        who are served by the local educational 
                        agency are from such families; or
                            ``(ii) the percentage of students 
                        from such families who are served by 
                        the local educational agency is greater 
                        than the statewide percentage of 
                        children from such families.
    ``(d) State Grants.--
            ``(1) Allotments.--From funds made available under 
        subsection (c)(2) and not reserved under subsections 
        (b) and (j) for a fiscal year, the Secretary shall 
        allot to each State educational agency having an 
        application approved under subsection (f)(1) an amount 
        that bears the same relation to the funds as the amount 
        the State educational agency received under part A for 
        the preceding fiscal year bears to the amount all such 
        State educational agencies received under part A for 
        the preceding fiscal year, to increase literacy and 
        reading skills by improving school libraries.
            ``(2) Competitive grants to eligible local 
        educational agencies.--Each State educational agency 
        receiving an allotment under paragraph (1) for a fiscal 
        year--
                    ``(A) may reserve not more than 3 percent 
                of the allotted funds to provide technical 
                assistance, disseminate information about 
                school library media programs that are 
                effective and based on scientifically based 
                research, and pay administrative costs related 
                to activities under this section; and
                    ``(B) shall use the allotted funds that 
                remain after making the reservation under 
                subparagraph (A) to award grants, for a period 
                of 1 year, on a competitive basis, to eligible 
                local educational agencies in the State that 
                have an application approved under subsection 
                (f)(2) for activities described in subsection 
                (g).
            ``(3) Reallotment.--If a State educational agency 
        does not apply for an allotment under this section for 
        any fiscal year, or if the State educational agency's 
        application is not approved, the Secretary shall 
        reallot the amount of the State educational agency's 
        allotment to the remaining State educational agencies 
        in accordance with paragraph (1).
    ``(e) Direct Competitive Grants to Eligible Local 
Educational Agencies.--
            ``(1) In general.--From amounts made available 
        under subsection (c)(1) and not reserved under 
        subsections (b) and (j) for a fiscal year, the 
        Secretary shall award grants, on a competitive basis, 
        to eligible local educational agencies that have 
        applications approved under subsection (f)(2) for 
        activities described in subsection (g).
            ``(2) Duration.--The Secretary shall award grants 
        under this subsection for a period of 1 year.
            ``(3) Distribution.--The Secretary shall ensure 
        that grants under this subsection are equitably 
        distributed among the different geographic regions of 
        the United States, and among local educational agencies 
        serving urban and rural areas.
    ``(f) Applications.--
            ``(1) State educational agency.--Each State 
        educational agency desiring assistance under this 
        section shall submit to the Secretary an application at 
        such time, in such manner, and containing such 
        information as the Secretary shall require. The 
        application shall contain a description of--
                    ``(A) how the State educational agency will 
                assist eligible local educational agencies in 
                meeting the requirements of this section and in 
                using scientifically based research to 
                implement effective school library media 
                programs; and
                    ``(B) the standards and techniques the 
                State educational agency will use to evaluate 
                the quality and impact of activities carried 
                out under this section by eligible local 
                educational agencies to determine the need for 
                technical assistance and whether to continue to 
                provide additional funding to the agencies 
                under this section.
            ``(2) Eligible local educational agency.--Each 
        eligible local educational agency desiring assistance 
        under this section shall submit to the Secretary or 
        State educational agency, as appropriate, an 
        application at such time, in such manner, and 
        containing such information as the Secretary or State 
        educational agency, respectively, shall require. The 
        application shall contain a description of--
                    ``(A) a needs assessment relating to the 
                need for school library media improvement, 
                based on the age and condition of school 
                library media resources, including book 
                collections, access of school library media 
                centers to advanced technology, and the 
                availability of well-trained, professionally 
                certified school library media specialists, in 
                schools served by the eligible local 
                educational agency;
                    ``(B) the manner in which the eligible 
                local educational agency will use the funds 
                made available through the grant to carry out 
                the activities described in subsection (g);
                    ``(C) how the eligible local educational 
                agency will extensively involve school library 
                media specialists, teachers, administrators, 
                and parents in the activities assisted under 
                this section, and the manner in which the 
                eligible local educational agency will carry 
                out the activities described in subsection (g) 
                using programs and materials that are grounded 
                in scientifically based research;
                    ``(D) the manner in which the eligible 
                local educational agency will effectively 
                coordinate the funds and activities provided 
                under this section with Federal, State, and 
                local funds and activities under this subpart 
                and other literacy, library, technology, and 
                professional development funds and activities; 
                and
                    ``(E) the manner in which the eligible 
                local educational agency will collect and 
                analyze data on the quality and impact of 
                activities carried out under this section by 
                schools served by the eligible local 
                educational agency.
    ``(g) Local Activities.--Funds under this section may be 
used to--
            ``(1) acquire up-to-date school library media 
        resources, including books;
            ``(2) acquire and use advanced technology, 
        incorporated into the curricula of the school, to 
        develop and enhance the information literacy, 
        information retrieval, and critical thinking skills of 
        students;
            ``(3) facilitate Internet links and other resource-
        sharing networks among schools and school library media 
        centers, and public and academic libraries, where 
        possible;
            ``(4) provide professional development described in 
        section 1222(d)(2) for school library media 
        specialists, and activities that foster increased 
        collaboration between school library media specialists, 
        teachers, and administrators; and
            ``(5) provide students with access to school 
        libraries during nonschool hours, including the hours 
        before and after school, during weekends, and during 
        summer vacation periods.
    ``(h) Accountability and Reporting.--
            ``(1) Local reports.--Each eligible local 
        educational agency that receives funds under this 
        section for a fiscal year shall report to the Secretary 
        or State educational agency, as appropriate, on how the 
        funding was used and the extent to which the 
        availability of, the access to, and the use of, up-to-
        date school library media resources in the elementary 
        schools and secondary schools served by the eligible 
        local educational agency was increased.
            ``(2) State report.--Each State educational agency 
        that receives funds under this section shall compile 
        the reports received under paragraph (1) and submit the 
        compiled reports to the Secretary.
    ``(i) Supplement, Not Supplant.--Funds made available under 
this section shall be used to supplement, and not supplant, 
other Federal, State, and local funds expended to carry out 
activities relating to library, technology, or professional 
development activities.
    ``(j) National Activities.--
            ``(1) Evaluations.--From the funds appropriated 
        under section 1002(b)(4) for each fiscal year, the 
        Secretary shall reserve not more than 1 percent for 
        annual, independent, national evaluations of the 
        activities assisted under this section and their impact 
        on improving the reading skills of students. The 
        evaluations shall be conducted not later than 3 years 
        after the date of enactment of the No Child Left Behind 
        Act of 2001, and biennially thereafter.
            ``(2) Report to congress.--The Secretary shall 
        transmit the State reports received under subsection 
        (h)(2) and the evaluations conducted under paragraph 
        (1) to the Committee on Health, Education, Labor, and 
        Pensions of the Senate and the Committee on Education 
        and the Workforce of the House of Representatives.

               ``PART C--EDUCATION OF MIGRATORY CHILDREN

``SEC. 1301. PROGRAM PURPOSE.

    ``It is the purpose of this part to assist States to--
            ``(1) support high-quality and comprehensive 
        educational programs for migratory children to help 
        reduce the educational disruptions and other problems 
        that result from repeated moves;
            ``(2) ensure that migratory children who move among 
        the States are not penalized in any manner by 
        disparities among the States in curriculum, graduation 
        requirements, and State academic content and student 
        academic achievement standards;
            ``(3) ensure that migratory children are provided 
        with appropriate educational services (including 
        supportive services) that address their special needs 
        in a coordinated and efficient manner;
            ``(4) ensure that migratory children receive full 
        and appropriate opportunities to meet the same 
        challenging State academic content and student academic 
        achievement standards that all children are expected to 
        meet;
            ``(5) design programs to help migratory children 
        overcome educational disruption, cultural and language 
        barriers, social isolation, various health-related 
        problems, and other factors that inhibit the ability of 
        such children to do well in school, and to prepare such 
        children to make a successful transition to 
        postsecondary education or employment; and
            ``(6) ensure that migratory children benefit from 
        State and local systemic reforms.

``SEC. 1302. PROGRAM AUTHORIZED.

    ``In order to carry out the purpose of this part, the 
Secretary shall make grants to State educational agencies, or 
combinations of such agencies, to establish or improve, 
directly or through local operating agencies, programs of 
education for migratory children in accordance with this part.

``SEC. 1303. STATE ALLOCATIONS.

    ``(a) State Allocations.--
            ``(1) Fiscal year 2002.--For fiscal year 2002, each 
        State (other than the Commonwealth of Puerto Rico) is 
        entitled to receive under this part an amount equal 
        to--
                    ``(A) the sum of the estimated number of 
                migratory children aged 3 through 21 who reside 
                in the State full time and the full-time 
                equivalent of the estimated number of migratory 
                children aged 3 through 21 who reside in the 
                State part time, as determined in accordance 
                with subsection (e); multiplied by
                    ``(B) 40 percent of the average per-pupil 
                expenditure in the State, except that the 
                amount determined under this paragraph shall 
                not be less than 32 percent, nor more than 48 
                percent, of the average per-pupil expenditure 
                in the United States.
            ``(2) Subsequent years.--
                    ``(A) Base amount.--
                            ``(i) In general.--Except as 
                        provided in subsection (b) and clause 
                        (ii), each State (other than the 
                        Commonwealth of Puerto Rico) is 
                        entitled to receive under this part, 
                        for fiscal year 2003 and succeeding 
                        fiscal years, an amount equal to--
                                    ``(I) the amount that such 
                                State received under this part 
                                for fiscal year 2002; plus
                                    ``(II) the amount allocated 
                                to the State under subparagraph 
                                (B).
                            ``(ii) Nonparticipating states.--In 
                        the case of a State (other than the 
                        Commonwealth of Puerto Rico) that did 
                        not receive any funds for fiscal year 
                        2002 under this part, the State shall 
                        receive, for fiscal year 2003 and 
                        succeeding fiscal years, an amount 
                        equal to--
                                    ``(I) the amount that such 
                                State would have received under 
                                this part for fiscal year 2002 
                                if its application under 
                                section 1304 for the year had 
                                been approved; plus
                                    ``(II) the amount allocated 
                                to the State under subparagraph 
                                (B).
                    ``(B) Allocation of additional amount.--For 
                fiscal year 2003 and succeeding fiscal years, 
                the amount (if any) by which the funds 
                appropriated to carry out this part for the 
                year exceed such funds for fiscal year 2002 
                shall be allocated to a State (other than the 
                Commonwealth of Puerto Rico) so that the State 
                receives an amount equal to--
                            ``(i) the sum of--
                                    ``(I) the number of 
                                identified eligible migratory 
                                children, aged 3 through 21, 
                                residing in the State during 
                                the previous year; and
                                    ``(II) the number of 
                                identified eligible migratory 
                                children, aged 3 through 21, 
                                who received services under 
                                this part in summer or 
                                intersession programs provided 
                                by the State during such year; 
                                multiplied by
                            ``(ii) 40 percent of the average 
                        per-pupil expenditure in the State, 
                        except that the amount determined under 
                        this clause may not be less than 32 
                        percent, or more than 48 percent, of 
                        the average per-pupil expenditure in 
                        the United States.
    ``(b) Allocation to Puerto Rico.--
            ``(1) In general.--For each fiscal year, the grant 
        which the Commonwealth of Puerto Rico shall be eligible 
        to receive under this part shall be the amount 
        determined by multiplying the number of children who 
        would be counted under subsection (a)(1)(A) if such 
        subsection applied to the Commonwealth of Puerto Rico 
        by the product of--
                    ``(A) the percentage which the average per-
                pupil expenditure in the Commonwealth of Puerto 
                Rico is of the lowest average per-pupil 
                expenditure of any of the 50 States; and
                    ``(B) 32 percent of the average per-pupil 
                expenditure in the United States.
            ``(2) Minimum percentage.--The percentage in 
        paragraph (1)(A) shall not be less than--
                    ``(A) for fiscal year 2002, 77.5 percent;
                    ``(B) for fiscal year 2003, 80.0 percent;
                    ``(C) for fiscal year 2004, 82.5 percent; 
                and
                    ``(D) for fiscal year 2005 and succeeding 
                fiscal years, 85.0 percent.
            ``(3) Limitation.--If the application of paragraph 
        (2) for any fiscal year would result in any of the 50 
        States or the District of Columbia receiving less under 
        this part than it received under this part for the 
        preceding fiscal year, then the percentage described in 
        paragraph (1)(A) that is used for the Commonwealth of 
        Puerto Rico for the fiscal year for which the 
        determination is made shall be the greater of the 
        percentage in paragraph (1)(A) for such fiscal year or 
        the percentage used for the preceding fiscal year.
    ``(c) Ratable Reductions; Reallocations.--
            ``(1) In general.--(A) If, after the Secretary 
        reserves funds under section 1308(c), the amount 
        appropriated to carry out this part for any fiscal year 
        is insufficient to pay in full the amounts for which 
        all States are eligible, the Secretary shall ratably 
        reduce each such amount.
            ``(B) If additional funds become available for 
        making such payments for any fiscal year, the Secretary 
        shall allocate such funds to States in amounts that the 
        Secretary determines will best carry out the purpose of 
        this part.
            ``(2) Special rule.--(A) The Secretary shall 
        further reduce the amount of any grant to a State under 
        this part for any fiscal year if the Secretary 
        determines, based on available information on the 
        numbers and needs of migratory children in the State 
        and the program proposed by the State to address such 
        needs, that such amount exceeds the amount required 
        under section 1304.
            ``(B) The Secretary shall reallocate such excess 
        funds to other States whose grants under this part 
        would otherwise be insufficient to provide an 
        appropriate level of services to migratory children, in 
        such amounts as the Secretary determines are 
        appropriate.
    ``(d) Consortium Arrangements.--
            ``(1) In general.--In the case of a State that 
        receives a grant of $1,000,000 or less under this 
        section, the Secretary shall consult with the State 
        educational agency to determine whether consortium 
        arrangements with another State or other appropriate 
        entity would result in delivery of services in a more 
        effective and efficient manner.
            ``(2) Proposals.--Any State, regardless of the 
        amount of such State's allocation, may submit a 
        consortium arrangement to the Secretary for approval.
            ``(3) Approval.--The Secretary shall approve a 
        consortium arrangement under paragraph (1) or (2) if 
        the proposal demonstrates that the arrangement will--
                    ``(A) reduce administrative costs or 
                program function costs for State programs; and
                    ``(B) make more funds available for direct 
                services to add substantially to the welfare or 
                educational attainment of children to be served 
                under this part.
    ``(e) Determining Numbers of Eligible Children.--In order 
to determine the estimated number of migratory children 
residing in each State for purposes of this section, the 
Secretary shall--
            ``(1) use such information as the Secretary finds 
        most accurately reflects the actual number of migratory 
        children;
            ``(2) develop and implement a procedure for more 
        accurately reflecting cost factors for different types 
        of summer and intersession program designs;
            ``(3) adjust the full-time equivalent number of 
        migratory children who reside in each State to take 
        into account--
                    ``(A) the special needs of those children 
                participating in special programs provided 
                under this part that operate during the summer 
                and intersession periods; and
                    ``(B) the additional costs of operating 
                such programs; and
            ``(4) conduct an analysis of the options for 
        adjusting the formula so as to better direct services 
        to the child whose education has been interrupted.

``SEC. 1304. STATE APPLICATIONS; SERVICES.

    ``(a) Application Required.--Any State desiring to receive 
a grant under this part for any fiscal year shall submit an 
application to the Secretary at such time and in such manner as 
the Secretary may require.
    ``(b) Program Information.--Each such application shall 
include--
            ``(1) a description of how, in planning, 
        implementing, and evaluating programs and projects 
        assisted under this part, the State and its local 
        operating agencies will ensure that the special 
        educational needs of migratory children, including 
        preschool migratory children, are identified and 
        addressed through--
                    ``(A) the full range of services that are 
                available for migratory children from 
                appropriate local, State, and Federal 
                educational programs;
                    ``(B) joint planning among local, State, 
                and Federal educational programs serving 
                migrant children, including language 
                instruction educational programs under part A 
                or B of title III;
                    ``(C) the integration of services available 
                under this part with services provided by those 
                other programs; and
                    ``(D) measurable program goals and 
                outcomes;
            ``(2) a description of the steps the State is 
        taking to provide all migratory students with the 
        opportunity to meet the same challenging State academic 
        content standards and challenging State student 
        academic achievement standards that all children are 
        expected to meet;
            ``(3) a description of how the State will use funds 
        received under this part to promote interstate and 
        intrastate coordination of services for migratory 
        children, including how, consistent with procedures the 
        Secretary may require, the State will provide for 
        educational continuity through the timely transfer of 
        pertinent school records, including information on 
        health, when children move from one school to another, 
        whether or not such move occurs during the regular 
        school year;
            ``(4) a description of the State's priorities for 
        the use of funds received under this part, and how such 
        priorities relate to the State's assessment of needs 
        for services in the State;
            ``(5) a description of how the State will determine 
        the amount of any subgrants the State will award to 
        local operating agencies, taking into account the 
        numbers and needs of migratory children, the 
        requirements of subsection (d), and the availability of 
        funds from other Federal, State, and local programs;
            ``(6) such budgetary and other information as the 
        Secretary may require; and
            ``(7) a description of how the State will encourage 
        programs and projects assisted under this part to offer 
        family literacy services if the program or project 
        serves a substantial number of migratory children who 
        have parents who do not have a high school diploma or 
        its recognized equivalent or who have low levels of 
        literacy.
    ``(c) Assurances.--Each such application shall also include 
assurances, satisfactory to the Secretary, that--
            ``(1) funds received under this part will be used 
        only--
                    ``(A) for programs and projects, including 
                the acquisition of equipment, in accordance 
                with section 1306; and
                    ``(B) to coordinate such programs and 
                projects with similar programs and projects 
                within the State and in other States, as well 
                as with other Federal programs that can benefit 
                migratory children and their families;
            ``(2) such programs and projects will be carried 
        out in a manner consistent with the objectives of 
        section 1114, subsections (b) and (d) of section 1115, 
        subsections (b) and (c) of section 1120A, and part I;
            ``(3) in the planning and operation of programs and 
        projects at both the State and local agency operating 
        level, there is consultation with parent advisory 
        councils for programs of 1 school year in duration, and 
        that all such programs and projects are carried out--
                    ``(A) in a manner that provides for the 
                same parental involvement as is required for 
                programs and projects under section 1118, 
                unless extraordinary circumstances make such 
                provision impractical; and
                    ``(B) in a format and language 
                understandable to the parents;
            ``(4) in planning and carrying out such programs 
        and projects, there has been, and will be, adequate 
        provision for addressing the unmet education needs of 
        preschool migratory children;
            ``(5) the effectiveness of such programs and 
        projects will be determined, where feasible, using the 
        same approaches and standards that will be used to 
        assess the performance of students, schools, and local 
        educational agencies under part A;
            ``(6) to the extent feasible, such programs and 
        projects will provide for--
                    ``(A) advocacy and outreach activities for 
                migratory children and their families, 
                including informing such children and families 
                of, or helping such children and families gain 
                access to, other education, health, nutrition, 
                and social services;
                    ``(B) professional development programs, 
                including mentoring, for teachers and other 
                program personnel;
                    ``(C) family literacy programs, including 
                such programs that use models developed under 
                Even Start;
                    ``(D) the integration of information 
                technology into educational and related 
                programs; and
                    ``(E) programs to facilitate the transition 
                of secondary school students to postsecondary 
                education or employment; and
            ``(7) the State will assist the Secretary in 
        determining the number of migratory children under 
        paragraphs (1)(A) and (2)(B)(i) of section 1303(a), 
        through such procedures as the Secretary may require.
    ``(d) Priority for Services.--In providing services with 
funds received under this part, each recipient of such funds 
shall give priority to migratory children who are failing, or 
most at risk of failing, to meet the State's challenging State 
academic content standards and challenging State student 
academic achievement standards, and whose education has been 
interrupted during the regular school year.
    ``(e) Continuation of Services.--Notwithstanding any other 
provision of this part--
            ``(1) a child who ceases to be a migratory child 
        during a school term shall be eligible for services 
        until the end of such term;
            ``(2) a child who is no longer a migratory child 
        may continue to receive services for 1 additional 
        school year, but only if comparable services are not 
        available through other programs; and
            ``(3) secondary school students who were eligible 
        for services in secondary school may continue to be 
        served through credit accrual programs until 
        graduation.

``SEC. 1305. SECRETARIAL APPROVAL; PEER REVIEW.

    ``(a) Secretarial Approval.--The Secretary shall approve 
each State application that meets the requirements of this 
part.
    ``(b) Peer Review.--The Secretary may review any such 
application with the assistance and advice of State officials 
and other individuals with relevant expertise.

``SEC. 1306. COMPREHENSIVE NEEDS ASSESSMENT AND SERVICE-DELIVERY PLAN; 
                    AUTHORIZED ACTIVITIES.

    ``(a) Comprehensive Plan.--
            ``(1) In general.--Each State that receives 
        assistance under this part shall ensure that the State 
        and its local operating agencies identify and address 
        the special educational needs of migratory children in 
        accordance with a comprehensive State plan that--
                    ``(A) is integrated with other programs 
                under this Act or other Acts, as appropriate;
                    ``(B) may be submitted as a part of 
                consolidated application under section 9302, 
                if--
                            ``(i) the special needs of 
                        migratory children are specifically 
                        addressed in the comprehensive State 
                        plan;
                            ``(ii) the comprehensive State plan 
                        is developed in collaboration with 
                        parents of migratory children; and
                            ``(iii) the comprehensive State 
                        planning is not used to supplant State 
                        efforts regarding, or administrative 
                        funding for, this part;
                    ``(C) provides that migratory children will 
                have an opportunity to meet the same 
                challenging State academic content standards 
                and challenging State student academic 
                achievement standards that all children are 
                expected to meet;
                    ``(D) specifies measurable program goals 
                and outcomes;
                    ``(E) encompasses the full range of 
                services that are available for migratory 
                children from appropriate local, State, and 
                Federal educational programs;
                    ``(F) is the product of joint planning 
                among such local, State, and Federal programs, 
                including programs under part A, early 
                childhood programs, and language instruction 
                educational programs under part A or B of title 
                III; and
                    ``(G) provides for the integration of 
                services available under this part with 
                services provided by such other programs.
            ``(2) Duration of the plan.--Each such 
        comprehensive State plan shall--
                    ``(A) remain in effect for the duration of 
                the State's participation under this part; and
                    ``(B) be periodically reviewed and revised 
                by the State, as necessary, to reflect changes 
                in the State's strategies and programs under 
                this part.
    ``(b) Authorized Activities.--
            ``(1) Flexibility.--In implementing the 
        comprehensive plan described in subsection (a), each 
        State educational agency, where applicable through its 
        local educational agencies, shall have the flexibility 
        to determine the activities to be provided with funds 
        made available under this part, except that such funds 
        first shall be used to meet the identified needs of 
        migratory children that result from their migratory 
        lifestyle, and to permit these children to participate 
        effectively in school.
            ``(2) Unaddressed needs.--Funds provided under this 
        part shall be used to address the needs of migratory 
        children that are not addressed by services available 
        from other Federal or non-Federal programs, except that 
        migratory children who are eligible to receive services 
        under part A may receive those services through funds 
        provided under that part, or through funds under this 
        part that remain after the agency addresses the needs 
        described in paragraph (1).
            ``(3) Construction.--Nothing in this part shall be 
        construed to prohibit a local educational agency from 
        serving migratory children simultaneously with students 
        with similar educational needs in the same educational 
        settings, where appropriate.
            ``(4) Special rule.--Notwithstanding section 1114, 
        a school that receives funds under this part shall 
        continue to address the identified needs described in 
        paragraph (1), and shall meet the special educational 
        needs of migratory children before using funds under 
        this part for schoolwide programs under section 1114.

``SEC. 1307. BYPASS.

    ``The Secretary may use all or part of any State's 
allocation under this part to make arrangements with any public 
or private nonprofit agency to carry out the purpose of this 
part in such State if the Secretary determines that--
            ``(1) the State is unable or unwilling to conduct 
        educational programs for migratory children;
            ``(2) such arrangements would result in more 
        efficient and economic administration of such programs; 
        or
            ``(3) such arrangements would add substantially to 
        the welfare or educational attainment of such children.

``SEC. 1308. COORDINATION OF MIGRANT EDUCATION ACTIVITIES.

    ``(a) Improvement of Coordination.--
            ``(1) In general.--The Secretary, in consultation 
        with the States, may make grants to, or enter into 
        contracts with, State educational agencies, local 
        educational agencies, institutions of higher education, 
        and other public and private nonprofit entities to 
        improve the interstate and intrastate coordination 
        among such agencies' educational programs, including 
        the establishment or improvement of programs for credit 
        accrual and exchange, available to migratory students.
            ``(2) Duration.--Grants under this subsection may 
        be awarded for not more than 5 years.
    ``(b) Student Records.--
            ``(1) Assistance.--The Secretary shall assist 
        States in developing effective methods for the 
        electronic transfer of student records and in 
        determining the number of migratory children in each 
        State.
            ``(2) Information system.--
                    ``(A) In general.--The Secretary, in 
                consultation with the States, shall ensure the 
                linkage of migrant student record systems for 
                the purpose of electronically exchanging, among 
                the States, health and educational information 
                regarding all migratory students. The Secretary 
                shall ensure such linkage occurs in a cost-
                effective manner, utilizing systems used by the 
                States prior to, or developed after, the date 
                of enactment of the No Child Left Behind Act of 
                2001, and shall determine the minimum data 
                elements that each State receiving funds under 
                this part shall collect and maintain. Such 
                elements may include--
                            ``(i) immunization records and 
                        other health information;
                            ``(ii) elementary and secondary 
                        academic history (including partial 
                        credit), credit accrual, and results 
                        from State assessments required under 
                        section 1111(b);
                            ``(iii) other academic information 
                        essential to ensuring that migratory 
                        children achieve to high standards; and
                            ``(iv) eligibility for services 
                        under the Individuals with Disabilities 
                        Education Act.
                    ``(B) Notice and comment.--After consulting 
                with the States under subparagraph (A), the 
                Secretary shall publish a notice in the Federal 
                Register seeking public comment on the proposed 
                data elements that each State receiving funds 
                under this part shall be required to collect 
                for purposes of electronic transfer of 
                migratory student information and the 
                requirements that States shall meet for 
                immediate electronic access to such 
                information. Such publication shall occur not 
                later than 120 days after the date of enactment 
                of the No Child Left Behind Act of 2001.
            ``(3) No cost for certain transfers.--A State 
        educational agency or local educational agency 
        receiving assistance under this part shall make student 
        records available to another State educational agency 
        or local educational agency that requests the records 
        at no cost to the requesting agency, if the request is 
        made in order to meet the needs of a migratory child.
            ``(4) Report to congress.--
                    ``(A) In general.--Not later than April 30, 
                2003, the Secretary shall report to the 
                Committee on Health, Education, Labor, and 
                Pensions of the Senate and the Committee on 
                Education and the Workforce of the House of 
                Representatives the Secretary's findings and 
                recommendations regarding the maintenance and 
                transfer of health and educational information 
                for migratory students by the States.
                    ``(B) Required contents.--The Secretary 
                shall include in such report--
                            ``(i) a review of the progress of 
                        States in developing and linking 
                        electronic records transfer systems;
                            ``(ii) recommendations for the 
                        development and linkage of such 
                        systems; and
                            ``(iii) recommendations for 
                        measures that may be taken to ensure 
                        the continuity of services provided for 
                        migratory students.
    ``(c) Availability of Funds.--For the purpose of carrying 
out this section in any fiscal year, the Secretary shall 
reserve not more than $10,000,000 of the amount appropriated to 
carry out this part for such year.
    ``(d) Incentive Grants.--From the amounts made available to 
carry out this section for any fiscal year, the Secretary may 
reserve not more than $3,000,000 to award grants of not more 
than $250,000 on a competitive basis to State educational 
agencies that propose a consortium arrangement with another 
State or other appropriate entity that the Secretary 
determines, pursuant to criteria that the Secretary shall 
establish, will improve the delivery of services to migratory 
children whose education is interrupted.
    ``(e) Data Collection.--The Secretary shall direct the 
National Center for Education Statistics to collect data on 
migratory children.

``SEC. 1309. DEFINITIONS.

    ``As used in this part:
            ``(1) Local operating agency.--The term `local 
        operating agency' means--
                    ``(A) a local educational agency to which a 
                State educational agency makes a subgrant under 
                this part;
                    ``(B) a public or nonprofit private agency 
                with which a State educational agency or the 
                Secretary makes an arrangement to carry out a 
                project under this part; or
                    ``(C) a State educational agency, if the 
                State educational agency operates the State's 
                migrant education program or projects directly.
            ``(2) Migratory child.--The term `migratory child' 
        means a child who is, or whose parent or spouse is, a 
        migratory agricultural worker, including a migratory 
        dairy worker, or a migratory fisher, and who, in the 
        preceding 36 months, in order to obtain, or accompany 
        such parent or spouse, in order to obtain, temporary or 
        seasonal employment in agricultural or fishing work--
                    ``(A) has moved from one school district to 
                another;
                    ``(B) in a State that is comprised of a 
                single school district, has moved from one 
                administrative area to another within such 
                district; or
                    ``(C) resides in a school district of more 
                than 15,000 square miles, and migrates a 
                distance of 20 miles or more to a temporary 
                residence to engage in a fishing activity.

 ``PART D--PREVENTION AND INTERVENTION PROGRAMS FOR CHILDREN AND YOUTH 
               WHO ARE NEGLECTED, DELINQUENT, OR AT-RISK

``SEC. 1401. PURPOSE AND PROGRAM AUTHORIZATION.

    ``(a) Purpose.--It is the purpose of this part--
            ``(1) to improve educational services for children 
        and youth in local and State institutions for neglected 
        or delinquent children and youth so that such children 
        and youth have the opportunity to meet the same 
        challenging State academic content standards and 
        challenging State student academic achievement 
        standards that all children in the State are expected 
        to meet;
            ``(2) to provide such children and youth with the 
        services needed to make a successful transition from 
        institutionalization to further schooling or 
        employment; and
            ``(3) to prevent at-risk youth from dropping out of 
        school, and to provide dropouts, and children and youth 
        returning from correctional facilities or institutions 
        for neglected or delinquent children and youth, with a 
        support system to ensure their continued education.
    ``(b) Program Authorized.--In order to carry out the 
purpose of this part and from amounts appropriated under 
section 1002(d), the Secretary shall make grants to State 
educational agencies to enable such agencies to award subgrants 
to State agencies and local educational agencies to establish 
or improve programs of education for neglected, delinquent, or 
at-risk children and youth.

``SEC. 1402. PAYMENTS FOR PROGRAMS UNDER THIS PART.

    ``(a) Agency Subgrants.--Based on the allocation amount 
computed under section 1412, the Secretary shall allocate to 
each State educational agency an amount necessary to make 
subgrants to State agencies under subpart 1.
    ``(b) Local Subgrants.--Each State shall retain, for the 
purpose of carrying out subpart 2, funds generated throughout 
the State under part A of this title based on children and 
youth residing in local correctional facilities, or attending 
community day programs for delinquent children and youth.

                   ``Subpart 1--State Agency Programs

``SEC. 1411. ELIGIBILITY.

    ``A State agency is eligible for assistance under this 
subpart if such State agency is responsible for providing free 
public education for children and youth--
            ``(1) in institutions for neglected or delinquent 
        children and youth;
            ``(2) attending community day programs for 
        neglected or delinquent children and youth; or
            ``(3) in adult correctional institutions.

``SEC. 1412. ALLOCATION OF FUNDS.

    ``(a) Subgrants to State Agencies.--
            ``(1) In general.--Each State agency described in 
        section 1411 (other than an agency in the Commonwealth 
        of Puerto Rico) is eligible to receive a subgrant under 
        this subpart, for each fiscal year, in an amount equal 
        to the product of--
                    ``(A) the number of neglected or delinquent 
                children and youth described in section 1411 
                who--
                            ``(i) are enrolled for at least 15 
                        hours per week in education programs in 
                        adult correctional institutions; and
                            ``(ii) are enrolled for at least 20 
                        hours per week--
                                    ``(I) in education programs 
                                in institutions for neglected 
                                or delinquent children and 
                                youth; or
                                    ``(II) in community day 
                                programs for neglected or 
                                delinquent children and youth; 
                                and
                    ``(B) 40 percent of the average per-pupil 
                expenditure in the State, except that the 
                amount determined under this subparagraph shall 
                not be less than 32 percent, nor more than 48 
                percent, of the average per-pupil expenditure 
                in the United States.
            ``(2) Special rule.--The number of neglected or 
        delinquent children and youth determined under 
        paragraph (1) shall--
                    ``(A) be determined by the State agency by 
                a deadline set by the Secretary, except that no 
                State agency shall be required to determine the 
                number of such children and youth on a specific 
                date set by the Secretary; and
                    ``(B) be adjusted, as the Secretary 
                determines is appropriate, to reflect the 
                relative length of such agency's annual 
                programs.
    ``(b) Subgrants to State Agencies in Puerto Rico.--
            ``(1) In general.--For each fiscal year, the amount 
        of the subgrant which a State agency in the 
        Commonwealth of Puerto Rico shall be eligible to 
        receive under this subpart shall be the amount 
        determined by multiplying the number of children 
        counted under subsection (a)(1)(A) for the Commonwealth 
        of Puerto Rico by the product of--
                    ``(A) the percentage which the average per-
                pupil expenditure in the Commonwealth of Puerto 
                Rico is of the lowest average per-pupil 
                expenditure of any of the 50 States; and
                    ``(B) 32 percent of the average per-pupil 
                expenditure in the United States.
            ``(2) Minimum percentage.--The percentage in 
        paragraph (1)(A) shall not be less than--
                    ``(A) for fiscal year 2002, 77.5 percent;
                    ``(B) for fiscal year 2003, 80.0 percent;
                    ``(C) for fiscal year 2004, 82.5 percent; 
                and
                    ``(D) for fiscal year 2005 and succeeding 
                fiscal years, 85.0 percent.
            ``(3) Limitation.--If the application of paragraph 
        (2) would result in any of the 50 States or the 
        District of Columbia receiving less under this subpart 
        than it received under this subpart for the preceding 
        fiscal year, then the percentage described in paragraph 
        (1)(A) that is used for the Commonwealth of Puerto Rico 
        for the fiscal year for which the determination is made 
        shall be the greater of--
                    ``(A) the percentage in paragraph (1)(A) 
                for such fiscal year; or
                    ``(B) the percentage used for the preceding 
                fiscal year.
    ``(c) Ratable Reductions in Case of Insufficient 
Appropriations.--If the amount appropriated for any fiscal year 
for subgrants under subsections (a) and (b) is insufficient to 
pay the full amount for which all State agencies are eligible 
under such subsections, the Secretary shall ratably reduce each 
such amount.

``SEC. 1413. STATE REALLOCATION OF FUNDS.

    ``If a State educational agency determines that a State 
agency does not need the full amount of the subgrant for which 
such State agency is eligible under this subpart for any fiscal 
year, the State educational agency may reallocate the amount 
that will not be needed to other eligible State agencies that 
need additional funds to carry out the purpose of this part, in 
such amounts as the State educational agency shall determine.

``SEC. 1414. STATE PLAN AND STATE AGENCY APPLICATIONS.

    ``(a) State Plan.--
            ``(1) In general.--Each State educational agency 
        that desires to receive a grant under this subpart 
        shall submit, for approval by the Secretary, a plan--
                    ``(A) for meeting the educational needs of 
                neglected, delinquent, and at-risk children and 
                youth;
                    ``(B) for assisting in the transition of 
                children and youth from correctional facilities 
                to locally operated programs; and
                    ``(C) that is integrated with other 
                programs under this Act or other Acts, as 
                appropriate.
            ``(2) Contents.--Each such State plan shall--
                    ``(A) describe the program goals, 
                objectives, and performance measures 
                established by the State that will be used to 
                assess the effectiveness of the program in 
                improving the academic, vocational, and 
                technical skills of children in the program;
                    ``(B) provide that, to the extent feasible, 
                such children will have the same opportunities 
                to achieve as such children would have if such 
                children were in the schools of local 
                educational agencies in the State; and
                    ``(C) contain an assurance that the State 
                educational agency will--
                            ``(i) ensure that programs assisted 
                        under this subpart will be carried out 
                        in accordance with the State plan 
                        described in this subsection;
                            ``(ii) carry out the evaluation 
                        requirements of section 1431;
                            ``(iii) ensure that the State 
                        agencies receiving subgrants under this 
                        subpart comply with all applicable 
                        statutory and regulatory requirements; 
                        and
                            ``(iv) provide such other 
                        information as the Secretary may 
                        reasonably require.
            ``(3) Duration of the plan.--Each such State plan 
        shall--
                    ``(A) remain in effect for the duration of 
                the State's participation under this part; and
                    ``(B) be periodically reviewed and revised 
                by the State, as necessary, to reflect changes 
                in the State's strategies and programs under 
                this part.
    ``(b) Secretarial Approval and Peer Review.--
            ``(1) Secretarial approval.--The Secretary shall 
        approve each State plan that meets the requirements of 
        this subpart.
            ``(2) Peer review.--The Secretary may review any 
        State plan with the assistance and advice of 
        individuals with relevant expertise.
    ``(c) State Agency Applications.--Any State agency that 
desires to receive funds to carry out a program under this 
subpart shall submit an application to the State educational 
agency that--
            ``(1) describes the procedures to be used, 
        consistent with the State plan under section 1111, to 
        assess the educational needs of the children to be 
        served under this subpart;
            ``(2) provide an assurance that in making services 
        available to children and youth in adult correctional 
        institutions, priority will be given to such children 
        and youth who are likely to complete incarceration 
        within a 2-year period;
            ``(3) describes the program, including a budget for 
        the first year of the program, with annual updates to 
        be provided to the State educational agency;
            ``(4) describes how the program will meet the goals 
        and objectives of the State plan;
            ``(5) describes how the State agency will consult 
        with experts and provide the necessary training for 
        appropriate staff, to ensure that the planning and 
        operation of institution-wide projects under section 
        1416 are of high quality;
            ``(6) describes how the State agency will carry out 
        the evaluation requirements of section 9601 and how the 
        results of the most recent evaluation will be used to 
        plan and improve the program;
            ``(7) includes data showing that the State agency 
        has maintained the fiscal effort required of a local 
        educational agency, in accordance with section 9521;
            ``(8) describes how the programs will be 
        coordinated with other appropriate State and Federal 
        programs, such as programs under title I of Public Law 
        105-220, vocational and technical education programs, 
        State and local dropout prevention programs, and 
        special education programs;
            ``(9) describes how the State agency will encourage 
        correctional facilities receiving funds under this 
        subpart to coordinate with local educational agencies 
        or alternative education programs attended by 
        incarcerated children and youth prior to their 
        incarceration to ensure that student assessments and 
        appropriate academic records are shared jointly between 
        the correctional facility and the local educational 
        agency or alternative education program;
            ``(10) describes how appropriate professional 
        development will be provided to teachers and other 
        staff;
            ``(11) designates an individual in each affected 
        correctional facility or institution for neglected or 
        delinquent children and youth to be responsible for 
        issues relating to the transition of children and youth 
        from such facility or institution to locally operated 
        programs;
            ``(12) describes how the State agency will endeavor 
        to coordinate with businesses for training and 
        mentoring for participating children and youth;
            ``(13) provides an assurance that the State agency 
        will assist in locating alternative programs through 
        which students can continue their education if the 
        students are not returning to school after leaving the 
        correctional facility or institution for neglected or 
        delinquent children and youth;
            ``(14) provides assurances that the State agency 
        will work with parents to secure parents' assistance in 
        improving the educational achievement of their children 
        and youth, and preventing their children's and youth's 
        further involvement in delinquent activities;
            ``(15) provides an assurance that the State agency 
        will work with children and youth with disabilities in 
        order to meet an existing individualized education 
        program and an assurance that the agency will notify 
        the child's or youth's local school if the child or 
        youth--
                    ``(A) is identified as in need of special 
                education services while the child or youth is 
                in the correctional facility or institution for 
                neglected or delinquent children and youth; and
                    ``(B) intends to return to the local 
                school;
            ``(16) provides an assurance that the State agency 
        will work with children and youth who dropped out of 
        school before entering the correctional facility or 
        institution for neglected or delinquent children and 
        youth to encourage the children and youth to reenter 
        school once the term of the incarceration is completed 
        or provide the child or youth with the skills necessary 
        to gain employment, continue the education of the child 
        or youth, or achieve a secondary school diploma or its 
        recognized equivalent if the child or youth does not 
        intend to return to school;
            ``(17) provides an assurance that teachers and 
        other qualified staff are trained to work with children 
        and youth with disabilities and other students with 
        special needs taking into consideration the unique 
        needs of such students;
            ``(18) describes any additional services to be 
        provided to children and youth, such as career 
        counseling, distance learning, and assistance in 
        securing student loans and grants; and
            ``(19) provides an assurance that the program under 
        this subpart will be coordinated with any programs 
        operated under the Juvenile Justice and Delinquency 
        Prevention Act of 1974 (42 U.S.C. 5601 et seq.) or 
        other comparable programs, if applicable.

``SEC. 1415. USE OF FUNDS.

    ``(a) Uses.--
            ``(1) In general.--A State agency shall use funds 
        received under this subpart only for programs and 
        projects that--
                    ``(A) are consistent with the State plan 
                under section 1414(a); and
                    ``(B) concentrate on providing participants 
                with the knowledge and skills needed to make a 
                successful transition to secondary school 
                completion, vocational or technical training, 
                further education, or employment.
            ``(2) Programs and projects.--Such programs and 
        projects--
                    ``(A) may include the acquisition of 
                equipment;
                    ``(B) shall be designed to support 
                educational services that--
                            ``(i) except for institution-wide 
                        projects under section 1416, are 
                        provided to children and youth 
                        identified by the State agency as 
                        failing, or most at-risk of failing, to 
                        meet the State's challenging academic 
                        content standards and student academic 
                        achievement standards;
                            ``(ii) supplement and improve the 
                        quality of the educational services 
                        provided to such children and youth by 
                        the State agency; and
                            ``(iii) afford such children and 
                        youth an opportunity to meet 
                        challenging State academic achievement 
                        standards;
                    ``(C) shall be carried out in a manner 
                consistent with section 1120A and part I (as 
                applied to programs and projects under this 
                part); and
                    ``(D) may include the costs of meeting the 
                evaluation requirements of section 9601.
    ``(b) Supplement, Not Supplant.--A program under this 
subpart that supplements the number of hours of instruction 
students receive from State and local sources shall be 
considered to comply with the supplement, not supplant 
requirement of section 1120A (as applied to this part) without 
regard to the subject areas in which instruction is given 
during those hours.

``SEC. 1416. INSTITUTION-WIDE PROJECTS.

    ``A State agency that provides free public education for 
children and youth in an institution for neglected or 
delinquent children and youth (other than an adult correctional 
institution) or attending a community-day program for such 
children and youth may use funds received under this subpart to 
serve all children in, and upgrade the entire educational 
effort of, that institution or program if the State agency has 
developed, and the State educational agency has approved, a 
comprehensive plan for that institution or program that--
            ``(1) provides for a comprehensive assessment of 
        the educational needs of all children and youth in the 
        institution or program serving juveniles;
            ``(2) provides for a comprehensive assessment of 
        the educational needs of youth aged 20 and younger in 
        adult facilities who are expected to complete 
        incarceration within a 2-year period;
            ``(3) describes the steps the State agency has 
        taken, or will take, to provide all children and youth 
        under age 21 with the opportunity to meet challenging 
        State academic content standards and student academic 
        achievement standards in order to improve the 
        likelihood that the children and youth will complete 
        secondary school, attain a secondary diploma or its 
        recognized equivalent, or find employment after leaving 
        the institution;
            ``(4) describes the instructional program, pupil 
        services, and procedures that will be used to meet the 
        needs described in paragraph (1), including, to the 
        extent feasible, the provision of mentors for the 
        children and youth described in paragraph (1);
            ``(5) specifically describes how such funds will be 
        used;
            ``(6) describes the measures and procedures that 
        will be used to assess student progress;
            ``(7) describes how the agency has planned, and 
        will implement and evaluate, the institution-wide or 
        program-wide project in consultation with personnel 
        providing direct instructional services and support 
        services in institutions or community-day programs for 
        neglected or delinquent children and youth, and with 
        personnel from the State educational agency; and
            ``(8) includes an assurance that the State agency 
        has provided for appropriate training for teachers and 
        other instructional and administrative personnel to 
        enable such teachers and personnel to carry out the 
        project effectively.

``SEC. 1417. THREE-YEAR PROGRAMS OR PROJECTS.

    ``If a State agency operates a program or project under 
this subpart in which individual children or youth are likely 
to participate for more than 1 year, the State educational 
agency may approve the State agency's application for a 
subgrant under this subpart for a period of not more than 3 
years.

``SEC. 1418. TRANSITION SERVICES.

    ``(a) Transition Services.--Each State agency shall reserve 
not less than 15 percent and not more than 30 percent of the 
amount such agency receives under this subpart for any fiscal 
year to support--
            ``(1) projects that facilitate the transition of 
        children and youth from State-operated institutions to 
        schools served by local educational agencies; or
            ``(2) the successful reentry of youth offenders, 
        who are age 20 or younger and have received a secondary 
        school diploma or its recognized equivalent, into 
        postsecondary education, or vocational and technical 
        training programs, through strategies designed to 
        expose the youth to, and prepare the youth for, 
        postsecondary education, or vocational and technical 
        training programs, such as--
                    ``(A) preplacement programs that allow 
                adjudicated or incarcerated youth to audit or 
                attend courses on college, university, or 
                community college campuses, or through programs 
                provided in institutional settings;
                    ``(B) worksite schools, in which 
                institutions of higher education and private or 
                public employers partner to create programs to 
                help students make a successful transition to 
                postsecondary education and employment; and
                    ``(C) essential support services to ensure 
                the success of the youth, such as--
                            ``(i) personal, vocational and 
                        technical, and academic, counseling;
                            ``(ii) placement services designed 
                        to place the youth in a university, 
                        college, or junior college program;
                            ``(iii) information concerning, and 
                        assistance in obtaining, available 
                        student financial aid;
                            ``(iv) counseling services; and
                            ``(v) job placement services.
    ``(b) Conduct of Projects.--A project supported under this 
section may be conducted directly by the State agency, or 
through a contract or other arrangement with one or more local 
educational agencies, other public agencies, or private 
nonprofit organizations.
    ``(c) Rule of Construction.--Nothing in this section shall 
be construed to prohibit a school that receives funds under 
subsection (a) from serving neglected and delinquent children 
and youth simultaneously with students with similar educational 
needs, in the same educational settings where appropriate.

``SEC. 1419. EVALUATION; TECHNICAL ASSISTANCE; ANNUAL MODEL PROGRAM.

    ``The Secretary may reserve not more than 2.5 percent of 
the amount made available to carry out this subpart for a 
fiscal year--
            ``(1) to develop a uniform model to evaluate the 
        effectiveness of programs assisted under this subpart; 
        and
            ``(2) to provide technical assistance to and 
        support the capacity building of State agency programs 
        assisted under this subpart.

                   ``Subpart 2--Local Agency Programs

``SEC. 1421. PURPOSE.

    ``The purpose of this subpart is to support the operation 
of local educational agency programs that involve collaboration 
with locally operated correctional facilities--
            ``(1) to carry out high quality education programs 
        to prepare children and youth for secondary school 
        completion, training, employment, or further education;
            ``(2) to provide activities to facilitate the 
        transition of such children and youth from the 
        correctional program to further education or 
        employment; and
            ``(3) to operate programs in local schools for 
        children and youth returning from correctional 
        facilities, and programs which may serve at-risk 
        children and youth.

``SEC. 1422. PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.

    ``(a) Local Subgrants.--With funds made available under 
section 1402(b), the State educational agency shall award 
subgrants to local educational agencies with high numbers or 
percentages of children and youth residing in locally operated 
(including county operated) correctional facilities for 
children and youth (including facilities involved in community 
day programs).
    ``(b) Special Rule.--A local educational agency that serves 
a school operated by a correctional facility is not required to 
operate a program of support for children and youth returning 
from such school to a school that is not operated by a 
correctional agency but served by such local educational 
agency, if more than 30 percent of the children and youth 
attending the school operated by the correctional facility will 
reside outside the boundaries served by the local educational 
agency after leaving such facility.
    ``(c) Notification.--A State educational agency shall 
notify local educational agencies within the State of the 
eligibility of such agencies to receive a subgrant under this 
subpart.
    ``(d) Transitional and Academic Services.--Transitional and 
supportive programs operated in local educational agencies 
under this subpart shall be designed primarily to meet the 
transitional and academic needs of students returning to local 
educational agencies or alternative education programs from 
correctional facilities. Services to students at-risk of 
dropping out of school shall not have a negative impact on 
meeting the transitional and academic needs of the students 
returning from correctional facilities.

``SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

    ``Each local educational agency desiring assistance under 
this subpart shall submit an application to the State 
educational agency that contains such information as the State 
educational agency may require. Each such application shall 
include--
            ``(1) a description of the program to be assisted;
            ``(2) a description of formal agreements, regarding 
        the program to be assisted, between--
                    ``(A) the local educational agency; and
                    ``(B) correctional facilities and 
                alternative school programs serving children 
                and youth involved with the juvenile justice 
                system;
            ``(3) as appropriate, a description of how 
        participating schools will coordinate with facilities 
        working with delinquent children and youth to ensure 
        that such children and youth are participating in an 
        education program comparable to one operating in the 
        local school such youth would attend;
            ``(4) a description of the program operated by 
        participating schools for children and youth returning 
        from correctional facilities and, as appropriate, the 
        types of services that such schools will provide such 
        children and youth and other at-risk children and 
        youth;
            ``(5) a description of the characteristics 
        (including learning difficulties, substance abuse 
        problems, and other special needs) of the children and 
        youth who will be returning from correctional 
        facilities and, as appropriate, other at-risk children 
        and youth expected to be served by the program, and a 
        description of how the school will coordinate existing 
        educational programs to meet the unique educational 
        needs of such children and youth;
            ``(6) as appropriate, a description of how schools 
        will coordinate with existing social, health, and other 
        services to meet the needs of students returning from 
        correctional facilities, at-risk children or youth, and 
        other participating children or youth, including 
        prenatal health care and nutrition services related to 
        the health of the parent and the child or youth, 
        parenting and child development classes, child care, 
        targeted reentry and outreach programs, referrals to 
        community resources, and scheduling flexibility;
            ``(7) as appropriate, a description of any 
        partnerships with local businesses to develop training, 
        curriculum-based youth entrepreneurship education, and 
        mentoring services for participating students;
            ``(8) as appropriate, a description of how the 
        program will involve parents in efforts to improve the 
        educational achievement of their children, assist in 
        dropout prevention activities, and prevent the 
        involvement of their children in delinquent activities;
            ``(9) a description of how the program under this 
        subpart will be coordinated with other Federal, State, 
        and local programs, such as programs under title I of 
        Public Law 105-220 and vocational and technical 
        education programs serving at-risk children and youth;
            ``(10) a description of how the program will be 
        coordinated with programs operated under the Juvenile 
        Justice and Delinquency Prevention Act of 1974 and 
        other comparable programs, if applicable;
            ``(11) as appropriate, a description of how schools 
        will work with probation officers to assist in meeting 
        the needs of children and youth returning from 
        correctional facilities;
            ``(12) a description of the efforts participating 
        schools will make to ensure correctional facilities 
        working with children and youth are aware of a child's 
        or youth's existing individualized education program; 
        and
            ``(13) as appropriate, a description of the steps 
        participating schools will take to find alternative 
        placements for children and youth interested in 
        continuing their education but unable to participate in 
        a regular public school program.

``SEC. 1424. USES OF FUNDS.

    ``Funds provided to local educational agencies under this 
subpart may be used, as appropriate, for--
            ``(1) programs that serve children and youth 
        returning to local schools from correctional 
        facilities, to assist in the transition of such 
        children and youth to the school environment and help 
        them remain in school in order to complete their 
        education;
            ``(2) dropout prevention programs which serve at-
        risk children and youth, including pregnant and 
        parenting teens, children and youth who have come in 
        contact with the juvenile justice system, children and 
        youth at least 1 year behind their expected grade 
        level, migrant youth, immigrant youth, students with 
        limited English proficiency, and gang members;
            ``(3) the coordination of health and social 
        services for such individuals if there is a likelihood 
        that the provision of such services, including day 
        care, drug and alcohol counseling, and mental health 
        services, will improve the likelihood such individuals 
        will complete their education;
            ``(4) special programs to meet the unique academic 
        needs of participating children and youth, including 
        vocational and technical education, special education, 
        career counseling, curriculum-based youth 
        entrepreneurship education, and assistance in securing 
        student loans or grants for postsecondary education; 
        and
            ``(5) programs providing mentoring and peer 
        mediation.

``SEC. 1425. PROGRAM REQUIREMENTS FOR CORRECTIONAL FACILITIES RECEIVING 
                    FUNDS UNDER THIS SECTION.

    ``Each correctional facility entering into an agreement 
with a local educational agency under section 1423(2) to 
provide services to children and youth under this subpart 
shall--
            ``(1) where feasible, ensure that educational 
        programs in the correctional facility are coordinated 
        with the student's home school, particularly with 
        respect to a student with an individualized education 
        program under part B of the Individuals with 
        Disabilities Education Act;
            ``(2) if the child or youth is identified as in 
        need of special education services while in the 
        correctional facility, notify the local school of the 
        child or youth of such need;
            ``(3) where feasible, provide transition assistance 
        to help the child or youth stay in school, including 
        coordination of services for the family, counseling, 
        assistance in accessing drug and alcohol abuse 
        prevention programs, tutoring, and family counseling;
            ``(4) provide support programs that encourage 
        children and youth who have dropped out of school to 
        reenter school once their term at the correctional 
        facility has been completed, or provide such children 
        and youth with the skills necessary to gain employment 
        or seek a secondary school diploma or its recognized 
        equivalent;
            ``(5) work to ensure that the correctional facility 
        is staffed with teachers and other qualified staff who 
        are trained to work with children and youth with 
        disabilities taking into consideration the unique needs 
        of such children and youth;
            ``(6) ensure that educational programs in the 
        correctional facility are related to assisting students 
        to meet high academic achievement standards;
            ``(7) to the extent possible, use technology to 
        assist in coordinating educational programs between the 
        correctional facility and the community school;
            ``(8) where feasible, involve parents in efforts to 
        improve the educational achievement of their children 
        and prevent the further involvement of such children in 
        delinquent activities;
            ``(9) coordinate funds received under this subpart 
        with other local, State, and Federal funds available to 
        provide services to participating children and youth, 
        such as funds made available under title I of Public 
        Law 105-220, and vocational and technical education 
        funds;
            ``(10) coordinate programs operated under this 
        subpart with activities funded under the Juvenile 
        Justice and Delinquency Prevention Act of 1974 and 
        other comparable programs, if applicable; and
            ``(11) if appropriate, work with local businesses 
        to develop training, curriculum-based youth 
        entrepreneurship education, and mentoring programs for 
        children and youth.

``SEC. 1426. ACCOUNTABILITY.

    ``The State educational agency may--
            ``(1) reduce or terminate funding for projects 
        under this subpart if a local educational agency does 
        not show progress in reducing dropout rates for male 
        students and for female students over a 3-year period; 
        and
            ``(2) require correctional facilities or 
        institutions for neglected or delinquent children and 
        youth to demonstrate, after receiving assistance under 
        this subpart for 3 years, that there has been an 
        increase in the number of children and youth returning 
        to school, obtaining a secondary school diploma or its 
        recognized equivalent, or obtaining employment after 
        such children and youth are released.

                    ``Subpart 3--General Provisions

``SEC. 1431. PROGRAM EVALUATIONS.

    ``(a) Scope of Evaluation.--Each State agency or local 
educational agency that conducts a program under subpart 1 or 2 
shall evaluate the program, disaggregating data on 
participation by gender, race, ethnicity, and age, not less 
than once every 3 years, to determine the program's impact on 
the ability of participants--
            ``(1) to maintain and improve educational 
        achievement;
            ``(2) to accrue school credits that meet State 
        requirements for grade promotion and secondary school 
        graduation;
            ``(3) to make the transition to a regular program 
        or other education program operated by a local 
        educational agency;
            ``(4) to complete secondary school (or secondary 
        school equivalency requirements) and obtain employment 
        after leaving the correctional facility or institution 
        for neglected or delinquent children and youth; and
            ``(5) as appropriate, to participate in 
        postsecondary education and job training programs.
    ``(b) Exception.--The disaggregation required under 
subsection (a) shall not be required in a case in which the 
number of students in a category is insufficient to yield 
statistically reliable information or the results would reveal 
personally identifiable information about an individual 
student.
    ``(c) Evaluation Measures.--In conducting each evaluation 
under subsection (a), a State agency or local educational 
agency shall use multiple and appropriate measures of student 
progress.
    ``(d) Evaluation Results.--Each State agency and local 
educational agency shall--
            ``(1) submit evaluation results to the State 
        educational agency and the Secretary; and
            ``(2) use the results of evaluations under this 
        section to plan and improve subsequent programs for 
        participating children and youth.

``SEC. 1432. DEFINITIONS.

    ``In this part:
            ``(1) Adult correctional institution.--The term 
        `adult correctional institution' means a facility in 
        which persons (including persons under 21 years of age) 
        are confined as a result of a conviction for a criminal 
        offense.
            ``(2) At-risk.--The term `at-risk', when used with 
        respect to a child, youth, or student, means a school 
        aged individual who is at-risk of academic failure, has 
        a drug or alcohol problem, is pregnant or is a parent, 
        has come into contact with the juvenile justice system 
        in the past, is at least 1 year behind the expected 
        grade level for the age of the individual, has limited 
        English proficiency, is a gang member, has dropped out 
        of school in the past, or has a high absenteeism rate 
        at school.
            ``(3) Community day program.--The term `community 
        day program' means a regular program of instruction 
        provided by a State agency at a community day school 
        operated specifically for neglected or delinquent 
        children and youth.
            ``(4) Institution for neglected or delinquent 
        children and youth.--The term `institution for 
        neglected or delinquent children and youth' means--
                    ``(A) a public or private residential 
                facility, other than a foster home, that is 
                operated for the care of children who have been 
                committed to the institution or voluntarily 
                placed in the institution under applicable 
                State law, due to abandonment, neglect, or 
                death of their parents or guardians; or
                    ``(B) a public or private residential 
                facility for the care of children who have been 
                adjudicated to be delinquent or in need of 
                supervision.

                ``PART E--NATIONAL ASSESSMENT OF TITLE I

``SEC. 1501. EVALUATIONS.

    ``(a) National Assessment of Title I.--
            ``(1) In general.--The Secretary shall conduct a 
        national assessment of the programs assisted under this 
        title and the impact of this title on States, local 
        educational agencies, schools, and students.
            ``(2) Issues to be examined.--In conducting the 
        assessment under this subsection, the Secretary shall 
        examine, at a minimum, the following:
                    ``(A) The implementation of programs 
                assisted under this title and the impact of 
                such implementation on increasing student 
                academic achievement (particularly in schools 
                with high concentrations of children living in 
                poverty), relative to the goal of all students 
                reaching the proficient level of achievement 
                based on State academic assessments, 
                challenging State academic content standards, 
                and challenging State student academic 
                achievement standards under section 1111.
                    ``(B) The types of programs and services 
                that have demonstrated the greatest likelihood 
                of helping students reach the proficient and 
                advanced levels of achievement based on State 
                student academic achievement standards and 
                State academic content standards.
                    ``(C) The implementation of State academic 
                standards, assessments, and accountability 
                systems developed under this title, including--
                            ``(i) the time and cost required 
                        for the development of academic 
                        assessments for students in grades 3 
                        through 8;
                            ``(ii) how well such State 
                        assessments meet the requirements for 
                        assessments described in this title; 
                        and
                            ``(iii) the impact of such 
                        standards, assessments, and 
                        accountability systems on educational 
                        programs and instruction at the local 
                        level.
                    ``(D) Each State's definition of adequate 
                yearly progress, including--
                            ``(i) the impact of applying this 
                        definition to schools, local 
                        educational agencies, and the States;
                            ``(ii) the number of schools and 
                        local educational agencies not meeting 
                        this definition; and
                            ``(iii) the changes in the 
                        identification of schools in need of 
                        improvement as a result of such 
                        definition.
                    ``(E) How schools, local educational 
                agencies, and States have--
                            ``(i) publicized and disseminated 
                        the local educational agency report 
                        cards required under section 1111(b) to 
                        teachers, school staff, students, 
                        parents, and the community;
                            ``(ii) used funds made available 
                        under this title to provide preschool 
                        and family literacy services and the 
                        impact of these services on students' 
                        school readiness;
                            ``(iii) implemented the provisions 
                        of section 1118 and afforded parents 
                        meaningful opportunities to be involved 
                        in the education of their children;
                            ``(iv) used Federal, State, and 
                        local educational agency funds and 
                        resources to support schools and 
                        provide technical assistance to improve 
                        the achievement of students in low-
                        performing schools, including the 
                        impact of the technical assistance on 
                        such achievement; and
                            ``(v) used State educational agency 
                        and local educational agency funds and 
                        resources to help schools in which 50 
                        percent or more of the students are 
                        from families with incomes below the 
                        poverty line meet the requirement 
                        described in section 1119 of having all 
                        teachers highly qualified not later 
                        than the end of the 2005-2006 school 
                        year
                    ``(F) The implementation of schoolwide 
                programs and targeted assistance programs under 
                this title and the impact of such programs on 
                improving student academic achievement, 
                including the extent to which schools meet the 
                requirements of such programs.
                    ``(G) The extent to which varying models of 
                comprehensive school reform are funded and 
                implemented under this title, and the effect of 
                the implementation of such models on improving 
                achievement of disadvantaged students.
                    ``(H) The costs as compared to the benefits 
                of the activities assisted under this title.
                    ``(I) The extent to which actions 
                authorized under section 1116 are implemented 
                by State educational agencies and local 
                educational agencies to improve the academic 
                achievement of students in low-performing 
                schools, and the effectiveness of the 
                implementation of such actions, including the 
                following:
                            ``(i) The number of schools 
                        identified for school improvement and 
                        how many years the schools remain in 
                        this status.
                            ``(ii) The types of support 
                        provided by the State educational 
                        agencies and local educational agencies 
                        to schools and local educational 
                        agencies respectively identified as in 
                        need of improvement, and the impact of 
                        such support on student achievement.
                            ``(iii) The number of parents who 
                        take advantage of the public school 
                        choice provisions of this title, the 
                        costs (including transportation costs) 
                        associated with implementing these 
                        provisions, the implementation of these 
                        provisions, and the impact of these 
                        provisions (including the impact of 
                        attending another school) on student 
                        achievement.
                            ``(iv) The number of parents who 
                        choose to take advantage of the 
                        supplemental services option, the 
                        criteria used by the States to 
                        determine the quality of providers, the 
                        kinds of services that are available 
                        and utilized, the costs associated with 
                        implementing this option, and the 
                        impact of receiving supplemental 
                        services on student achievement.
                            ``(v) The implementation and impact 
                        of actions that are taken with regard 
                        to schools and local educational 
                        agencies identified for corrective 
                        action and restructuring.
                    ``(J) The extent to which State and local 
                fiscal accounting requirements under this title 
                affect the flexibility of schoolwide programs.
                    ``(K) The implementation and impact of the 
                professional development activities assisted 
                under this title and title II on instruction, 
                student academic achievement, and teacher 
                qualifications.
                    ``(L) The extent to which the assistance 
                made available under this title, including 
                funds under section 1002, is targeted to 
                disadvantaged students, schools, and local 
                educational agencies with the greatest need.
                    ``(M) The effectiveness of Federal 
                administration assistance made available under 
                this title, including monitoring and technical 
                assistance.
                    ``(N) The academic achievement of the 
                groups of students described in section 
                1111(b)(2)(C)(v)(II).
                    ``(O) Such other issues as the Secretary 
                considers appropriate.
            ``(3) Sources of information.--In conducting the 
        assessment under this subsection, the Secretary shall 
        use information from a variety of sources, including 
        the National Assessment of Educational Progress 
        (carried out under section 411 of the National 
        Education Statistics Act of 1994), State evaluations, 
        and other research studies.
            ``(4) Coordination.--In carrying out this 
        subsection, the Secretary shall--
                    ``(A) coordinate the national assessment 
                under this subsection with the longitudinal 
                study described in subsection (c); and
                    ``(B) ensure that the independent review 
                panel described in subsection (d) participates 
                in conducting the national assessment under 
                this subsection, including planning for and 
                reviewing the assessment.
            ``(5) Developmentally appropriate measures.--In 
        conducting the national assessment under this 
        subsection, the Secretary shall use developmentally 
        appropriate measures to assess student academic 
        achievement.
            ``(6) Reports.--
                    ``(A) Interim report.--Not later than 3 
                years after the date of enactment of the No 
                Child Left Behind Act of 2001, the Secretary 
                shall transmit to the President, the Committee 
                on Education and the Workforce of the House of 
                Representatives, and the Committee on Health, 
                Education, Labor, and Pensions of the Senate an 
                interim report on the national assessment 
                conducted under this subsection.
                    ``(B) Final report.--Not later than 5 years 
                after the date of enactment of the No Child 
                Left Behind Act of 2001, the Secretary shall 
                transmit to the President, the Committee on 
                Education and the Workforce of the House of 
                Representatives, and the Committee on Health, 
                Education, Labor, and Pensions of the Senate a 
                final report on the national assessment 
                conducted under this subsection.
    ``(b) Studies and Data Collection.--
            ``(1) In general.--In addition to other activities 
        described in this section, the Secretary may, directly 
        or through awarding grants to or entering into 
        contracts with appropriate entities--
                    ``(A) assess the implementation and 
                effectiveness of programs under this title;
                    ``(B) collect the data necessary to comply 
                with the Government Performance and Results Act 
                of 1993; and
                    ``(C) provide guidance and technical 
                assistance to State educational agencies and 
                local educational agencies in developing and 
                maintaining management information systems 
                through which such agencies may develop program 
                performance indicators to improve services and 
                performance.
            ``(2) Minimum information.--In carrying out this 
        subsection, the Secretary shall collect, at a minimum, 
        trend information on the effect of each program 
        authorized under this title, which shall complement the 
        data collected and reported under subsections (a) and 
        (c).
    ``(c) National Longitudinal Study.--
            ``(1) In general.--The Secretary shall conduct a 
        longitudinal study of schools receiving assistance 
        under part A.
            ``(2) Issues to be examined.--In carrying out this 
        subsection, the Secretary shall ensure that the study 
        referred to in paragraph (1) provides Congress and 
        educators with each of the following:
                    ``(A) An accurate description and analysis 
                of the short- and long-term effect of the 
                assistance made available under this title on 
                academic achievement.
                    ``(B) Information that can be used to 
                improve the effectiveness of the assistance 
                made available under this title in enabling 
                students to meet challenging academic 
                achievement standards.
                    ``(C) An analysis of educational practices 
                or model programs that are effective in 
                improving the achievement of disadvantaged 
                children.
                    ``(D) An analysis of the costs as compared 
                to the benefits of the assistance made 
                available under this title in improving the 
                achievement of disadvantaged children.
                    ``(E) An analysis of the effects of the 
                availability of school choice options under 
                section 1116 on the academic achievement of 
                disadvantaged students, on schools in school 
                improvement, and on schools from which students 
                have transferred under such options.
                    ``(F) Such other information as the 
                Secretary considers appropriate.
            ``(3) Scope.--In conducting the study referred to 
        in paragraph (1), the Secretary shall ensure that the 
        study--
                    ``(A) bases its analysis on a nationally 
                representative sample of schools participating 
                in programs under this title;
                    ``(B) to the extent practicable, includes 
                in its analysis students who transfer to 
                different schools during the course of the 
                study; and
                    ``(C) analyzes varying models or strategies 
                for delivering school services, including--
                            ``(i) schoolwide and targeted 
                        services; and
                            ``(ii) comprehensive school reform 
                        models.
    ``(d) Independent Review Panel.--
            ``(1) In general.--The Secretary shall establish an 
        independent review panel (in this subsection referred 
        to as the `Review Panel') to advise the Secretary on 
        methodological and other issues that arise in carrying 
        out subsections (a) and (c).
            ``(2) Appointment of members.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the Secretary shall appoint members of the 
                Review Panel from among qualified individuals 
                who are--
                            ``(i) specialists in statistics, 
                        evaluation, research, and assessment;
                            ``(ii) education practitioners, 
                        including teachers, principals, and 
                        local and State superintendents;
                            ``(iii) parents and members of 
                        local school boards or other 
                        organizations involved with the 
                        implementation and operation of 
                        programs under this title; and
                            ``(iv) other individuals with 
                        technical expertise who will contribute 
                        to the overall rigor and quality of the 
                        program evaluation.
                    ``(B) Limitations.--In appointing members 
                of the Review Panel, the Secretary shall ensure 
                that--
                            ``(i) in order to ensure diversity, 
                        the Review Panel includes individuals 
                        appointed under subparagraph (A)(i) who 
                        represent disciplines or programs 
                        outside the field of education; and
                            ``(ii) the total number of the 
                        individuals appointed under 
                        subparagraph (A)(ii) or (A)(iv) does 
                        not exceed \1/4\ of the total number of 
                        the individuals appointed under this 
                        paragraph.
            ``(3) Functions.--The Review Panel shall consult 
        with and advise the Secretary--
                    ``(A) to ensure that the assessment 
                conducted under subsection (a) and the study 
                conducted under subsection (c)--
                            ``(i) adhere to the highest 
                        possible standards of quality with 
                        respect to research design, statistical 
                        analysis, and the dissemination of 
                        findings; and
                            ``(ii) use valid and reliable 
                        measures to document program 
                        implementation and impacts; and
                    ``(B) to ensure--
                            ``(i) that the final report 
                        described in subsection (a)(6)(B) is 
                        reviewed not later than 120 days after 
                        its completion by not less than 2 
                        independent experts in program 
                        evaluation (who may be from among the 
                        members of the Review Panel appointed 
                        under paragraph (2));
                            ``(ii) that such experts evaluate 
                        and comment on the degree to which the 
                        report complies with subsection (a); 
                        and
                            ``(iii) that the comments of such 
                        experts are transmitted with the report 
                        under subsection (a)(6)(B).

``SEC. 1502. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

    ``(a) In General.--From the funds appropriated for any 
fiscal year under section 1002(e)(1), the Secretary may award 
grants to State educational agencies, local educational 
agencies, other public agencies, nonprofit organizations, 
public or private partnerships involving business and industry 
organizations, and consortia of such entities to carry out 
demonstration projects that show the most promise of enabling 
children served under this title to meet challenging State 
academic content standards and challenging State student 
academic achievement standards.
    ``(b) Evaluation.--The Secretary shall evaluate the 
demonstration projects supported under this title, using 
rigorous methodological designs and techniques, including 
control groups and random assignment, to the extent feasible, 
to produce reliable evidence of effectiveness.
    ``(c) Partnerships.--From funds appropriated under section 
1002(e)(1) for any fiscal year, the Secretary may, directly or 
through grants or contracts, work in partnership with State 
educational agencies, local educational agencies, other public 
agencies, and nonprofit organizations to disseminate and use 
the highest quality research and knowledge about effective 
practices to improve the quality of teaching and learning in 
schools assisted under this title.

``SEC. 1503. ASSESSMENT EVALUATION.

    ``(a) In General.--The Secretary shall conduct an 
independent study of assessments used for State accountability 
purposes and for making decisions about the promotion and 
graduation of students. Such research shall be conducted over a 
period not to exceed 5 years and shall address the components 
described in subsection (d).
    ``(b) Contract Authorized.--The Secretary is authorized to 
award a contract, through a peer review process, to an 
organization or entity capable of conducting rigorous, 
independent research. The Assistant Secretary of Educational 
Research and Improvement shall appoint peer reviewers to 
evaluate the applications for this contract.
    ``(c) Study.--The study shall--
            ``(1) synthesize and analyze existing research that 
        meets standards of quality and scientific rigor; and
            ``(2) evaluate academic assessment and 
        accountability systems in State educational agencies, 
        local educational agencies, and schools; and
            ``(3) make recommendations to the Department and to 
        the Committee on Education and the Workforce of the 
        United States House of Representatives and the 
        Committee on Health, Education, Labor, and Pensions of 
        the United States Senate, based on the findings of the 
        study.
    ``(d) Components of the Research Program.--The study 
described in subsection (a) shall examine--
            ``(1) the effect of the assessment and 
        accountability systems described in section (c) on 
        students, teachers, parents, families, schools, school 
        districts, and States, including correlations between 
        such systems and--
                    ``(A) student academic achievement, 
                progress to the State-defined level of 
                proficiency, and progress toward closing 
                achievement gaps, based on independent 
                measures;
                    ``(B) changes in course offerings, teaching 
                practices, course content, and instructional 
                material;
                    ``(C) changes in turnover rates among 
                teachers, principals, and pupil-services 
                personnel;
                    ``(D) changes in dropout, grade-retention, 
                and graduation rates for students; and
                    ``(E) such other effects as may be 
                appropriate;
            ``(2) the effect of the academic assessments on 
        students with disabilities;
            ``(3) the effect of the academic assessments on 
        low, middle, and high socioeconomic status students, 
        limited and nonlimited English proficient students, 
        racial and ethnic minority students, and nonracial or 
        nonethnic minority students;
            ``(4) guidelines for assessing the validity, 
        reliability, and consistency of those systems using 
        nationally recognized professional and technical 
        standards; and
            ``(5) the relationship between accountability 
        systems and the inclusion or exclusion of students from 
        the assessment system; and
            ``(6) such other factors as the Secretary finds 
        appropriate.
    ``(e) Reporting.--Not later than 3 years after the contract 
described in section (b) is awarded, the organization or entity 
conducting the study shall submit an interim report to the 
Committee on Education and the Workforce of the United States 
House of Representatives and the Committee on Health, 
Education, Labor and Pensions of the United States Senate, 
Congress, and to the President and the States, and shall make 
the report widely available to the public. The organization or 
entity shall submit a final report to the same recipients as 
soon as possible after the completion of the study. Additional 
reports may be periodically prepared and released as necessary.
    ``(f) Reservation of Funds.--The Secretary may reserve up 
to 15 percent of the funds authorized to be appropriated for 
this part to carry out the study, except such reservation of 
funds shall not exceed $1,500,000.

``SEC. 1504. CLOSE UP FELLOWSHIP PROGRAM.

    ``(a) Program for Middle School and Secondary School 
Students.--
            ``(1) Establishment.--
                    ``(A) General authority.--In accordance 
                with this subsection, the Secretary may make 
                grants to the Close Up Foundation of 
                Washington, District of Columbia, a 
                nonpartisan, nonprofit foundation, for the 
                purpose of assisting the Close Up Foundation in 
                carrying out its programs of increasing civic 
                responsibility and understanding of the Federal 
                Government among middle school and secondary 
                school students.
                    ``(B) Use of funds.--Grants under this 
                subsection shall be used only to provide 
                financial assistance to economically 
                disadvantaged students who participate in the 
                programs described in subparagraph (A).
                    ``(C) Name of fellowships.--Financial 
                assistance received by students pursuant to 
                this subsection shall be known as Close Up 
                fellowships.
            ``(2) Applications.--
                    ``(A) Application required.--No grant under 
                this subsection may be made except upon an 
                application at such time, in such manner, and 
                accompanied by such information as the 
                Secretary may reasonably require.
                    ``(B) Contents of application.--Each 
                application submitted under this paragraph 
                shall contain assurances that--
                            ``(i) Close Up fellowships provided 
                        under this subsection shall be made to 
                        economically disadvantaged middle 
                        school and secondary school students;
                            ``(ii) every effort shall be made 
                        to ensure the participation of students 
                        from rural, small town, and urban 
                        areas;
                            ``(iii) in awarding the fellowships 
                        to economically disadvantaged students, 
                        special consideration shall be given to 
                        the participation of those students 
                        with special educational needs, 
                        including students with disabilities, 
                        ethnic minority students, and students 
                        with migrant parents; and
                            ``(iv) the funds received under 
                        this subsection shall be properly 
                        disbursed.
    ``(b) Program for Middle School and Secondary School 
Teachers.--
            ``(1) Establishment.--
                    ``(A) General authority.--In accordance 
                with this subsection, the Secretary may make 
                grants to the Close Up Foundation of 
                Washington, District of Columbia, a 
                nonpartisan, nonprofit foundation, for the 
                purpose of assisting the Close Up Foundation in 
                carrying out its programs of professional 
                development for middle school and secondary 
                school teachers and its programs to increase 
                civic responsibility and understanding of the 
                Federal Government among the teachers' 
                students.
                    ``(B) Use of funds.--Grants under this 
                subsection shall be used only to provide 
                financial assistance to teachers who 
                participate in the programs described in 
                subparagraph (A).
                    ``(C) Name of fellowships.--Financial 
                assistance received by teachers pursuant to 
                this subsection shall be known as Close Up 
                fellowships.
            ``(2) Applications.--
                    ``(A) Application required.--No grant under 
                this subsection may be made except upon an 
                application at such time, in such manner, and 
                accompanied by such information as the 
                Secretary may reasonably require.
                    ``(B) Contents of application.--Each 
                application submitted under this paragraph 
                shall contain assurances that--
                            ``(i) Close Up fellowships provided 
                        under this subsection shall be made 
                        only to a teacher who has worked with 
                        at least 1 student from such teacher's 
                        school who participates in a program 
                        described in subsection (a)(1)(A);
                            ``(ii) no teacher shall receive 
                        more than 1 such fellowship in any 
                        fiscal year; and
                            ``(iii) the funds received under 
                        this subsection shall be properly 
                        disbursed.
    ``(c) Programs for New Americans.--
            ``(1) Establishment.--
                    ``(A) General authority.--In accordance 
                with this subsection, the Secretary may make 
                grants to the Close Up Foundation of 
                Washington, District of Columbia, a 
                nonpartisan, nonprofit foundation, for the 
                purpose of assisting the Close Up Foundation in 
                carrying out its programs of increasing civic 
                responsibility and understanding of the Federal 
                Government among economically disadvantaged 
                middle school and secondary school recent 
                immigrant students.
                    ``(B) Definition.--In this subsection, the 
                term `recent immigrant student' means a student 
                who is a member of a family that immigrated to 
                the United States within 5 years of the 
                student's participation in such a program.
                    ``(C) Use of funds.--Grants under this 
                subsection shall be used only to provide 
                financial assistance to economically 
                disadvantaged recent immigrant students and 
                their teachers who participate in the programs 
                described in subparagraph (A).
                    ``(D) Name of fellowships.--Financial 
                assistance received by students and teachers 
                pursuant to this subsection shall be known as 
                Close Up Fellowships for New Americans.
            ``(2) Applications.--
                    ``(A) Application required.--No grant under 
                this subsection may be made except upon an 
                application at such time, in such manner, and 
                accompanied by such information as the 
                Secretary may reasonably require.
                    ``(B) Contents of application.--Each 
                application submitted under this paragraph 
                shall contain assurances that--
                            ``(i) Close Up Fellowships for New 
                        Americans shall be made to economically 
                        disadvantaged middle school and 
                        secondary school recent immigrant 
                        students;
                            ``(ii) every effort shall be made 
                        to ensure the participation of recent 
                        immigrant students from rural, small 
                        town, and urban areas;
                            ``(iii) in awarding the fellowships 
                        to economically disadvantaged recent 
                        immigrant students, special 
                        consideration shall be given to the 
                        participation of those students with 
                        special educational needs, including 
                        students with disabilities, students 
                        with migrant parents, and ethnic 
                        minority students;
                            ``(iv) fully describe the 
                        activities to be carried out with the 
                        proceeds of the grant made under 
                        paragraph (1); and
                            ``(v) the funds received under this 
                        subsection shall be properly disbursed.
    ``(d) General Provisions.--
            ``(1) Administrative provisions.--
                    ``(A) Accountability.--In consultation with 
                the Secretary, the Close Up Foundation shall 
                devise and implement procedures to measure the 
                efficacy of the programs authorized in 
                subsections (a), (b), and (c) in attaining 
                objectives that include the following:
                            ``(i) Providing young people with 
                        an increased understanding of the 
                        Federal Government.
                            ``(ii) Heightening a sense of civic 
                        responsibility among young people.
                            ``(iii) Enhancing the skills of 
                        educators in teaching young people 
                        about civic responsibility, the Federal 
                        Government, and attaining citizenship 
                        competencies.
                    ``(B) General rule.--Payments under this 
                section may be made in installments, in 
                advance, or by way of reimbursement, with 
                necessary adjustments on account of 
                underpayments or overpayments.
                    ``(C) Audit rule.--The Comptroller General 
                of the United States or any of the Comptroller 
                General's duly authorized representatives shall 
                have access for the purpose of audit and 
                examination to any books, documents, papers, 
                and records that are pertinent to any grant 
                under this section.
             ``(2) Continuation of awards.--Notwithstanding any 
        other provision of this Act, any person or entity that 
        was awarded a grant under part G of title X before the 
        date of enactment of the No Child Left Behind Act of 
        2001 shall continue to receive funds in accordance with 
        the terms of such award until the date on which the 
        award period terminates under such terms.

                 ``PART F--COMPREHENSIVE SCHOOL REFORM

``SEC. 1601. PURPOSE.

    ``The purpose of this part is to provide financial 
incentives for schools to develop comprehensive school reforms, 
based upon scientifically based research and effective 
practices that include an emphasis on basic academics and 
parental involvement so that all children can meet challenging 
State academic content and academic achievement standards.

``SEC. 1602. PROGRAM AUTHORIZATION.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to 
        award grants to State educational agencies, from 
        allotments under paragraph (2), to enable the State 
        educational agencies to award subgrants to local 
        educational agencies to carry out the purpose described 
        in section 1601.
            ``(2) Allotments.--
                    ``(A) Reservations.--Of the amount 
                appropriated under section 1002(f), the 
                Secretary may reserve--
                            ``(i) not more than 1 percent for 
                        each fiscal year to provide assistance 
                        to schools supported by the Bureau of 
                        Indian Affairs and in the United States 
                        Virgin Islands, Guam, American Samoa, 
                        and the Commonwealth of the Northern 
                        Mariana Islands according to their 
                        respective needs for assistance under 
                        this part;
                            ``(ii) not more than 1 percent for 
                        each fiscal year to conduct national 
                        evaluation activities described in 
                        section 1607; and
                            ``(iii) not more than 3 percent of 
                        the amount appropriated in fiscal year 
                        2002 to carry out this part, for 
                        quality initiatives described in 
                        section 1608.
                    ``(B) In general.--Of the amount 
                appropriated under section 1002(f) that remains 
                after making the reservation under subparagraph 
                (A) for a fiscal year, the Secretary shall 
                allot to each State for the fiscal year an 
                amount that bears the same ratio to the 
                remainder for that fiscal year as the amount 
                made available under section 1124 to the State 
                for the preceding fiscal year bears to the 
                total amount made available under section 1124 
                to all States for that year.
                    ``(C) Reallotment.--If a State does not 
                apply for funds under this section, the 
                Secretary shall reallot such funds to other 
                States that do apply in proportion to the 
                amount allotted to such other States under 
                subparagraph (B).

``SEC. 1603. STATE APPLICATIONS.

    ``(a) In General.--Each State educational agency that 
desires to receive a grant under this section shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may reasonably 
require.
    ``(b) Contents.--Each such application shall describe--
            ``(1) the process and selection criteria by which 
        the State educational agency, using expert review, will 
        select local educational agencies to receive subgrants 
        under this section;
            ``(2) how the State educational agency will ensure 
        that funds under this part are limited to comprehensive 
        school reform programs that--
                    ``(A) include each of the components 
                described in section 1606(a);
                    ``(B) have the capacity to improve the 
                academic achievement of all students in core 
                academic subjects within participating schools; 
                and
                    ``(C) are supported by technical assistance 
                providers that have a successful track record, 
                financial stability, and the capacity to 
                deliver high quality materials, professional 
                development for school personnel, and on-site 
                support during the full implementation period 
                of the reforms;
            ``(3) how the State educational agency will 
        disseminate materials and information on comprehensive 
        school reforms that are based on scientifically based 
        research and effective practices;
            ``(4) how the State educational agency will 
        evaluate annually the implementation of such reforms 
        and measure the extent to which the reforms have 
        resulted in increased student academic achievement; and
            ``(5) how the State educational agency will provide 
        technical assistance to the local educational agency or 
        consortia of local educational agencies, and to 
        participating schools, in evaluating, developing, and 
        implementing comprehensive school reform.

``SEC. 1604. STATE USE OF FUNDS.

    ``(a) In General.--Except as provided in subsection (e), a 
State educational agency that receives a grant under this part 
shall use the grant funds to award subgrants, on a competitive 
basis, to local educational agencies or consortia of local 
educational agencies in the State that receive funds under part 
A, to support comprehensive school reforms in schools that are 
eligible for funds under part A.
    ``(b) Subgrant Requirements.--A subgrant to a local 
educational agency or consortium shall be--
            ``(1) of sufficient size and scope to support the 
        initial costs of comprehensive school reforms selected 
        or designed by each school identified in the 
        application of the local educational agency or 
        consortium;
            ``(2) in an amount not less than $50,000--
                    ``(A) for each participating school; or
                    ``(B) for each participating consortium of 
                small schools (which for purposes of this 
                subparagraph means a consortium of small 
                schools serving a total of not more than 500 
                students); and
            ``(3) renewable for 2 additional 1-year subgrant 
        periods after the initial 1-year subgrant is made if 
        the school is or the schools are making substantial 
        progress in the implementation of reforms.
    ``(c) Priority.--A State educational agency, in awarding 
subgrants under this part, shall give priority to local 
educational agencies or consortia that--
            ``(1) plan to use the funds in schools identified 
        as being in need of improvement or corrective action 
        under section 1116(c); and
            ``(2) demonstrate a commitment to assist schools 
        with budget allocation, professional development, and 
        other strategies necessary to ensure the comprehensive 
        school reforms are properly implemented and are 
        sustained in the future.
    ``(d) Grant Consideration.--In awarding subgrants under 
this part, the State educational agency shall take into 
consideration the equitable distribution of subgrants to 
different geographic regions within the State, including urban 
and rural areas, and to schools serving elementary and 
secondary students.
    ``(e) Administrative Costs.--A State educational agency 
that receives a grant under this part may reserve not more than 
5 percent of the grant funds for administrative, evaluation, 
and technical assistance expenses.
    ``(f) Supplement.--Funds made available under this part 
shall be used to supplement, and not supplant, any other 
Federal, State, or local funds that would otherwise be 
available to carry out the activities assisted under this part.
    ``(g) Reporting.--Each State educational agency that 
receives a grant under this part shall provide to the Secretary 
such information as the Secretary may require, including the 
names of local educational agencies and schools receiving 
assistance under this part, the amount of the assistance, a 
description of the comprehensive school reforms selected and 
used, and a copy of the State's annual evaluation of the 
implementation of comprehensive school reforms supported under 
this part and the student achievement results.

``SEC. 1605. LOCAL APPLICATIONS.

    ``(a) In General.--Each local educational agency or 
consortium of local educational agencies desiring a subgrant 
under this section shall submit an application to the State 
educational agency at such time, in such manner, and containing 
such information as the State educational agency may reasonably 
require.
    ``(b) Contents.--Each such application shall--
            ``(1) identify the schools that are eligible for 
        assistance under part A and plan to implement a 
        comprehensive school reform program, including the 
        projected costs of such a program;
            ``(2) describe the comprehensive school reforms 
        based on scientifically based research and effective 
        practices that such schools will implement;
            ``(3) describe how the local educational agency or 
        consortium will provide technical assistance and 
        support for the effective implementation of the 
        comprehensive school reforms based on scientifically 
        based research and effective practices selected by such 
        schools; and
            ``(4) describe how the local educational agency or 
        consortium will evaluate the implementation of such 
        comprehensive school reforms and measure the results 
        achieved in improving student academic achievement.

``SEC. 1606. LOCAL USE OF FUNDS.

    ``(a) Uses of Funds.--A local educational agency or 
consortium that receives a subgrant under this part shall 
provide the subgrant funds to schools that are eligible for 
assistance under part A and served by the agency, to enable the 
schools to implement a comprehensive school reform program 
that--
            ``(1) employs proven strategies and proven methods 
        for student learning, teaching, and school management 
        that are based on scientifically based research and 
        effective practices and have been replicated 
        successfully in schools;
            ``(2) integrates a comprehensive design for 
        effective school functioning, including instruction, 
        assessment, classroom management, professional 
        development, parental involvement, and school 
        management, that aligns the school's curriculum, 
        technology, and professional development into a 
        comprehensive school reform plan for schoolwide change 
        designed to enable all students to meet challenging 
        State content and student academic achievement 
        standards and addresses needs identified through a 
        school needs assessment;
            ``(3) provides high quality and continuous teacher 
        and staff professional development;
            ``(4) includes measurable goals for student 
        academic achievement and benchmarks for meeting such 
        goals;
            ``(5) is supported by teachers, principals, 
        administrators, school personnel staff, and other 
        professional staff;
            ``(6) provides support for teachers, principals, 
        administrators, and other school staff;
            ``(7) provides for the meaningful involvement of 
        parents and the local community in planning, 
        implementing, and evaluating school improvement 
        activities consistent with section 1118;
            ``(8) uses high quality external technical support 
        and assistance from an entity that has experience and 
        expertise in schoolwide reform and improvement, which 
        may include an institution of higher education;
            ``(9) includes a plan for the annual evaluation of 
        the implementation of school reforms and the student 
        results achieved;
            ``(10) identifies other resources, including 
        Federal, State, local, and private resources, that 
        shall be used to coordinate services that will support 
        and sustain the comprehensive school reform effort; and
            ``(11)(A) has been found, through scientifically 
        based research to significantly improve the academic 
        achievement of students participating in such program 
        as compared to students in schools who have not 
        participated in such program; or
            ``(B) has been found to have strong evidence that 
        such program will significantly improve the academic 
        achievement of participating children.
    ``(b) Special Rule.--A school that receives funds to 
develop a comprehensive school reform program shall not be 
limited to using nationally available approaches, but may 
develop the school's own comprehensive school reform program 
for schoolwide change as described in subsection (a).

``SEC. 1607. EVALUATION AND REPORTS.

    ``(a) In General.--The Secretary shall develop a plan for a 
national evaluation of the programs assisted under this part.
    ``(b) Evaluation.--The national evaluation shall--
            ``(1) evaluate the implementation and results 
        achieved by schools after 3 years of implementing 
        comprehensive school reforms; and
            ``(2) assess the effectiveness of comprehensive 
        school reforms in schools with diverse characteristics.
    ``(c) Reports.--The Secretary shall submit a report 
describing the results of the evaluation under subsection (b) 
for the Comprehensive School Reform Program to the Committee on 
Education and the Workforce, and the Committee on 
Appropriations of the House of Representatives, and the 
Committee on Health, Education, Labor, and Pensions, and the 
Committee on Appropriations of the Senate.

``SEC. 1608. QUALITY INITIATIVES.

    ``The Secretary, through grants or contracts, shall provide 
funds for--
            ``(1) a public-private effort, in which funds are 
        matched by private organizations, to assist States, 
        local educational agencies, and schools, in making 
        informed decisions regarding approving or selecting 
        providers of comprehensive school reform, consistent 
        with the requirements described in section 1606(a); and
            ``(2) activities to foster the development of 
        comprehensive school reform models and to provide 
        effective capacity building for comprehensive school 
        reform providers to expand their work in more schools, 
        assure quality, and promote financial stability.

                 ``PART G--ADVANCED PLACEMENT PROGRAMS

``SEC. 1701. SHORT TITLE.

    ``This part may be cited as the `Access to High Standards 
Act'.

``SEC. 1702. PURPOSES.

    The purposes of this part are--
            ``(1) to support State and local efforts to raise 
        academic standards through advanced placement programs, 
        and thus further increase the number of students who 
        participate and succeed in advanced placement programs;
            ``(2) to encourage more of the 600,000 students who 
        take advanced placement courses each year but do not 
        take advanced placement exams each year, to demonstrate 
        their achievements through taking the exams;
            ``(3) to build on the many benefits of advanced 
        placement programs for students, which benefits may 
        include the acquisition of skills that are important to 
        many employers, Scholastic Aptitude Test (SAT) scores 
        that are 100 points above the national averages, and 
        the achievement of better grades in secondary school 
        and in college than the grades of students who have not 
        participated in the programs;
            ``(4) to increase the availability and broaden the 
        range of schools, including middle schools, that have 
        advanced placement and pre-advanced placement programs;
            ``(5) to demonstrate that larger and more diverse 
        groups of students can participate and succeed in 
        advanced placement programs;
            ``(6) to provide greater access to advanced 
        placement and pre-advanced placement courses and highly 
        trained teachers for low-income and other disadvantaged 
        students;
            ``(7) to provide access to advanced placement 
        courses for secondary school students at schools that 
        do not offer advanced placement programs, increase the 
        rate at which secondary school students participate in 
        advanced placement courses, and increase the numbers of 
        students who receive advanced placement test scores for 
        which college academic credit is awarded;
            ``(8) to increase the participation of low-income 
        individuals in taking advanced placement tests through 
        the payment or partial payment of the costs of the 
        advanced placement test fees; and
            ``(9) to increase the number of individuals that 
        achieve a baccalaureate or advanced degree, and to 
        decrease the amount of time such individuals require to 
        attain such degrees.

``SEC. 1703. FUNDING DISTRIBUTION RULE.

    ``From amounts appropriated under section 1002(g) for a 
fiscal year, the Secretary shall give priority to funding 
activities under section 1704 and shall distribute any 
remaining funds under section 1705.

``SEC. 1704. ADVANCED PLACEMENT TEST FEE PROGRAM.

    ``(a) Grants Authorized.--From amounts made available under 
section 1703 for a fiscal year, the Secretary shall award 
grants to State educational agencies having applications 
approved under this section to enable the State educational 
agencies to reimburse low-income individuals to cover part or 
all of the costs of advanced placement test fees, if the low-
income individuals--
            ``(1) are enrolled in an advanced placement course; 
        and
            ``(2) plan to take an advanced placement test.
    ``(b) Award Basis.--In determining the amount of the grant 
awarded to a State educational agency under this section for a 
fiscal year, the Secretary shall consider the number of 
children eligible to be counted under section 1124(c) in the 
State in relation to the number of such children so counted in 
all the States.
    ``(c) Information Dissemination.--A State educational 
agency awarded a grant under this section shall disseminate 
information regarding the availability of advanced placement 
test fee payments under this section to eligible individuals 
through secondary school teachers and guidance counselors.
    ``(d) Applications.--Each State educational agency desiring 
to receive a grant under this section shall submit an 
application to the Secretary at such time, in such manner, and 
accompanied by such information as the Secretary may require. 
At a minimum, each State educational agency application shall--
            ``(1) describe the advanced placement test fees the 
        State educational agency will pay on behalf of low-
        income individuals in the State from grant funds 
        awarded under this section;
            ``(2) provide an assurance that any grant funds 
        awarded under this section shall be used only to pay 
        for advanced placement test fees; and
            ``(3) contain such information as the Secretary may 
        require to demonstrate that the State educational 
        agency will ensure that a student is eligible for 
        payments authorized under this section, including 
        documentation required under chapter 1 of subpart 2 of 
        part A of title IV of the Higher Education Act of 1965.
    ``(e) Regulations.--The Secretary shall prescribe such 
regulations as are necessary to carry out this section.
    ``(f) Report.--
            ``(1) In general.--Each State educational agency 
        awarded a grant under this section shall, with respect 
        to each advanced placement subject, annually report to 
        the Secretary on--
                    ``(A) the number of students in the State 
                who are taking an advanced placement course in 
                that subject;
                    ``(B) the number of advanced placement 
                tests taken by students in the State who have 
                taken an advanced placement course in that 
                subject;
                    ``(C) the number of students in the State 
                scoring at different levels on advanced 
                placement tests in that subject; and
                    ``(D) demographic information regarding 
                individuals in the State taking advanced 
                placement courses and tests in that subject 
                disaggregated by race, ethnicity, sex, English 
                proficiency status, and socioeconomic status.
            ``(2) Report to congress.--The Secretary shall 
        annually compile the information received from each 
        State educational agency under paragraph (1) and report 
        to the appropriate Committees of Congress regarding the 
        information.
    ``(g) BIA as SEA.--For purposes of this section the Bureau 
of Indian Affairs shall be treated as a State educational 
agency.

``SEC. 1705. ADVANCED PLACEMENT INCENTIVE PROGRAM GRANTS.

    ``(a) Grants Authorized.--
            ``(1) In general.--From amounts made available 
        under section 1703 for a fiscal year, the Secretary 
        shall award grants, on a competitive basis, to eligible 
        entities to enable those entities to carry out the 
        authorized activities described in subsection (d).
            ``(2) Duration and payments.--
                    ``(A) Duration.--The Secretary shall award 
                a grant under this section for a period of not 
                more than 3 years.
                    ``(B) Payments.--The Secretary shall make 
                grant payments under this section on an annual 
                basis.
            ``(3) Definition of eligible entity.--In this 
        section, the term `eligible entity' means a State 
        educational agency, local educational agency, or 
        national nonprofit educational entity with expertise in 
        advanced placement services.
    ``(b) Application.--Each eligible entity desiring a grant 
under this section shall submit an application to the Secretary 
at such time, in such manner, and accompanied by such 
information as the Secretary may require.
    ``(c) Priority.--In awarding grants under this section, the 
Secretary shall give priority to an eligible entity that 
submits an application under subsection (b) that--
            ``(1) demonstrates a pervasive need for access to 
        advanced placement incentive programs;
            ``(2) provides for the involvement of business and 
        community organizations in the activities to be 
        assisted;
            ``(3) assures the availability of matching funds 
        from State, local, or other sources to pay for the cost 
        of activities to be assisted;
            ``(4) demonstrates a focus on developing or 
        expanding advanced placement programs and participation 
        in the core academic areas of English, mathematics, and 
        science;
            ``(5) demonstrates an intent to carry out 
        activities that target--
                    ``(A) local educational agencies serving 
                schools with a high concentration of low-income 
                students; or
                    ``(B) schools with a high concentration of 
                low-income students; and
            ``(6) in the case of a local educational agency, 
        assures that the local educational agency serves 
        schools with a high concentration of low-income 
        students; or
            ``(7) demonstrates an intent to carry out 
        activities to increase the availability of, and 
        participation in, on-line advanced placement courses.
    ``(d) Authorized Activities.--
            ``(1) In general.--Subject to paragraph (2), an 
        eligible entity shall use grant funds made available 
        under this section to expand access for low-income 
        individuals to advanced placement incentive programs 
        that involve--
                    ``(A) teacher training;
                    ``(B) pre-advanced placement course 
                development;
                    ``(C) coordination and articulation between 
                grade levels to prepare students for academic 
                achievement in advanced placement courses;
                    ``(D) books and supplies; or
                    ``(E) activities to increase the 
                availability of, and participation in, on-line 
                advanced placement courses; or
                    ``(F) any other activity directly related 
                to expanding access to and participation in 
                advanced placement incentive programs, 
                particularly for low-income individuals.
            ``(2) State educational agency.--In the case of an 
        eligible entity that is a State educational agency, the 
        entity may use grant funds made available under this 
        section to award subgrants to local educational 
        agencies to enable the local educational agencies to 
        carry out the activities under paragraph (1).
            ``(e) Contracts.--An eligible entity awarded a 
        grant to provide online advanced placement courses 
        under this part may enter into a contract with a 
        nonprofit or for profit organization to provide the 
        online advanced placement courses, including 
        contracting for necessary support services.
    ``(f) Data Collection and Reporting.--
            ``(1) Data collection.--Each eligible entity 
        awarded a grant under this section shall, with respect 
        to each advanced placement subject, annually report to 
        the Secretary on--
                    ``(A) the number of students served by the 
                eligible entity who are taking an advanced 
                placement course in that subject;
                    ``(B) the number of advanced placement 
                tests taken by students served by the eligible 
                entity in that subject;
                    ``(C) the number of students served by the 
                eligible entity scoring at different levels on 
                advanced placement tests in that subject; and
                    ``(D) demographic information regarding 
                individuals served by such agency who taking 
                advanced placement courses and tests in that 
                subject disaggregated by race, ethnicity, sex, 
                English proficiency status, and socioeconomic 
                status.
            ``(2) Report.--The Secretary shall annually compile 
        the information received from each eligible entity 
        under paragraph (1) and report to the appropriate 
        Committees of Congress regarding the information.

``SEC. 1706. SUPPLEMENT, NOT SUPPLANT.

    Grant funds provided under this part shall supplement, and 
not supplant, other non-Federal funds that are available to 
assist low-income individuals to pay for the cost of advanced 
placement test fees or to expand access to advanced placement 
and pre-advanced placement courses.

``SEC. 1707. DEFINITIONS.

    ``In this part:
            ``(1) Advanced placement test.--The term `advanced 
        placement test' means an advanced placement test 
        administered by the College Board or approved by the 
        Secretary.
            ``(2) High concentration of low-income students.--
        The term `high concentration of low-income students', 
        used with respect to a school, means a school that 
        serves a student population 40 percent or more of whom 
        are low-income individuals.
            ``(3) Low-income individual.--The term `low-income 
        individual' means an individual who is determined by a 
        State educational agency or local educational agency to 
        be a child, ages 5 through 17, from a low-income 
        family, on the basis of data used by the Secretary to 
        determine allocations under section 1124 of this Act, 
        data on children eligible for free or reduced-price 
        lunches under the National School Lunch Act, data on 
        children in families receiving assistance under part A 
        of title IV of the Social Security Act, or data on 
        children eligible to receive medical assistance under 
        the medicaid program under title XIX of the Social 
        Security Act, or through an alternate method that 
        combines or extrapolates from those data.

                  ``PART H--SCHOOL DROPOUT PREVENTION

``SEC. 1801. SHORT TITLE.

    ``This part may be cited as the `Dropout Prevention Act'.

``SEC. 1802. PURPOSE.

    ``The purpose of this part is to provide for school dropout 
prevention and reentry and to raise academic achievement levels 
by providing grants that--
            ``(1) challenge all children to attain their 
        highest academic potential; and
            ``(2) ensure that all students have substantial and 
        ongoing opportunities to attain their highest academic 
        potential through schoolwide programs proven effective 
        in school dropout prevention and reentry.

``SEC. 1803. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this part, there are 
authorized to be appropriated $125,000,000 for fiscal year 2002 
and such sums as may be necessary for each of the 5 succeeding 
fiscal years, of which--
            ``(1) 10 percent shall be available to carry out 
        subpart 1 for each fiscal year; and
            ``(2) 90 percent shall be available to carry out 
        subpart 2 for each fiscal year.

               ``Subpart 1--Coordinated National Strategy

``SEC. 1811. NATIONAL ACTIVITIES.

    ``(a) In General.--The Secretary is authorized--
            ``(1) to collect systematic data on the 
        effectiveness of the programs assisted under this part 
        in reducing school dropout rates and increasing school 
        reentry and secondary school graduation rates;
            ``(2) to establish a national clearinghouse of 
        information on effective school dropout prevention and 
        reentry programs that shall disseminate to State 
        educational agencies, local educational agencies, and 
        schools--
                    ``(A) the results of research on school 
                dropout prevention and reentry; and
                    ``(B) information on effective programs, 
                best practices, and Federal resources to--
                            ``(i) reduce annual school dropout 
                        rates;
                            ``(ii) increase school reentry; and
                            ``(iii) increase secondary school 
                        graduation rates;
            ``(3) to provide technical assistance to State 
        educational agencies, local educational agencies, and 
        schools in designing and implementing programs and 
        securing resources to implement effective school 
        dropout prevention and reentry programs;
            ``(4) to establish and consult with an interagency 
        working group that shall--
                    ``(A) address inter- and intra-agency 
                program coordination issues at the Federal 
                level with respect to school dropout prevention 
                and reentry, and assess the targeting of 
                existing Federal services to students who are 
                most at risk of dropping out of school, and the 
                cost-effectiveness of various programs and 
                approaches used to address school dropout 
                prevention and reentry;
                    ``(B) describe the ways in which State 
                educational agencies and local educational 
                agencies can implement effective school dropout 
                prevention and reentry programs using funds 
                from a variety of Federal programs, including 
                the programs under this part; and
                    ``(C) examine Federal programs that may 
                have a positive impact on secondary school 
                graduation or school reentry;
            ``(5) to carry out a national recognition program 
        in accordance with subsection (b) that recognizes 
        schools that have made extraordinary progress in 
        lowering school dropout rates; and
            ``(6) to use funds made available for this subpart 
        to carry out the evaluation required under section 
        1830(c).
    ``(b) Recognition Program.--
            ``(1) Establishment.--The Secretary shall--
                    ``(A) establish a national recognition 
                program; and
                    ``(B) develop uniform national guidelines 
                for the recognition program that shall be used 
                to recognize eligible schools from nominations 
                submitted by State educational agencies.
            ``(2) Recognition.--The Secretary shall recognize, 
        under the recognition program established under 
        paragraph (1), eligible schools.
            ``(3) Support.--The Secretary may make monetary 
        awards to an eligible school recognized under this 
        subsection in amounts determined appropriate by the 
        Secretary that shall be used for dissemination 
        activities within the eligible school district or 
        nationally.
            ``(4) Definition of eligible school.--In this 
        subsection, the term `eligible school' means a public 
        middle school or secondary school, including a charter 
        school, that has implemented comprehensive reforms that 
        have been effective in lowering school dropout rates 
        for all students--
                    ``(A) in that secondary school or charter 
                school; or
                    ``(B) in the case of a middle school, in 
                the secondary school that the middle school 
                feeds students into.
    ``(c) Capacity Building.--
            ``(1) In general.--The Secretary, through a 
        contract with 1 or more non-Federal entities, may 
        conduct a capacity building and design initiative in 
        order to increase the types of proven strategies for 
        school dropout prevention and reentry that address the 
        needs of an entire school population rather than a 
        subset of students.
            ``(2) Number and duration.--
                    ``(A) Number.--The Secretary may award not 
                more than 5 contracts under this subsection.
                    ``(B) Duration.--The Secretary may award a 
                contract under this subsection for a period of 
                not more than 5 years.
    ``(d) Support for Existing Reform Networks.--
            ``(1) In general.--The Secretary may provide 
        appropriate support to eligible entities to enable the 
        eligible entities to provide training, materials, 
        development, and staff assistance to schools assisted 
        under this part.
            ``(2) Definition of eligible entity.--In this 
        subsection, the term `eligible entity' means an entity 
        that, prior to the date of enactment of the Dropout 
        Prevention Act--
                    ``(A) provided training, technical 
                assistance, and materials related to school 
                dropout prevention or reentry to 100 or more 
                elementary schools or secondary schools; and
                    ``(B) developed and published a specific 
                educational program or design related to school 
                dropout prevention or reentry for use by the 
                schools.

           ``Subpart 2--School Dropout Prevention Initiative

``SEC. 1821. DEFINITIONS.

    ``In this subpart:
            ``(1) Low-income student.--The term `low-income 
        student' means a student who is determined by a local 
        educational agency to be from a low-income family using 
        the measures described in section 1113(c).
            ``(2) State.--The term `State' means each of the 
        several States of the United States, the District of 
        Columbia, the Commonwealth of Puerto Rico, the United 
        States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and the 
        Bureau of Indian Affairs for purposes of serving 
        schools funded by the Bureau.

``SEC. 1822. PROGRAM AUTHORIZED.

    ``(a) Grants to State Educational Agencies and Local 
Educational Agencies.--
            ``(1) Amount less than $75,000,000.--
                    ``(A) In general.--If the amount 
                appropriated under section 1803 for a fiscal 
                year equals or is less than $75,000,000, then 
                the Secretary shall use such amount to award 
                grants, on a competitive basis, to--
                            ``(i) State educational agencies to 
                        support activities--
                                    ``(I) in schools that--
                                            ``(aa) serve 
                                        students in grades 6 
                                        through 12; and
                                            ``(bb) have annual 
                                        school dropout rates 
                                        that are above the 
                                        State average annual 
                                        school dropout rate; or
                                    ``(II) in the middle 
                                schools that feed students into 
                                the schools described in 
                                subclause (I); or
                            ``(ii) local educational agencies 
                        that operate--
                                    ``(I) schools that--
                                            ``(aa) serve 
                                        students in grades 6 
                                        through 12; and
                                            ``(bb) have annual 
                                        school dropout rates 
                                        that are above the 
                                        State average annual 
                                        school dropout rate; or
                                    ``(II) middle schools that 
                                feed students into the schools 
                                described in subclause (I).
                    ``(B) Use of grant funds.--Grant funds 
                awarded under this paragraph shall be used to 
                fund effective, sustainable, and coordinated 
                school dropout prevention and reentry programs 
                that may include the activities described in 
                subsection (b)(2), in--
                            ``(i) schools serving students in 
                        grades 6 through 12 that have annual 
                        school dropout rates that are above the 
                        State average annual school dropout 
                        rate; or
                            ``(ii) the middle schools that feed 
                        students into the schools described in 
                        clause (i).
            ``(2) Amount less than $250,000,000 but more than 
        $75,000,000.--If the amount appropriated under section 
        1803 for a fiscal year is less than $250,000,000 but 
        more than $75,000,000, then the Secretary shall use 
        such amount to award grants, on a competitive basis, to 
        State educational agencies to enable the State 
        educational agencies to award subgrants under 
        subsection (b).
            ``(3) Amount equal to or exceeds $250,000,000.--If 
        the amount appropriated under section 1803 for a fiscal 
        year equals or exceeds $250,000,000, then the Secretary 
        shall use such amount to award a grant to each State 
        educational agency in an amount that bears the same 
        relation to such appropriated amount as the amount the 
        State educational agency received under part A for the 
        preceding fiscal year bears to the amount received by 
        all State educational agencies under such part for the 
        preceding fiscal year, to enable the State educational 
        agency to award subgrants under subsection (b).
    ``(b) Subgrants to Local Educational Agencies.--
            ``(1) In general.--From amounts made available to a 
        State educational agency under paragraph (2) or (3) of 
        subsection (a), the State educational agency shall 
        award subgrants, on a competitive basis, to local 
        educational agencies that operate public schools that 
        serve students in grades 6 through 12 and that have 
        annual school dropout rates that are above the State 
        average annual school dropout rate, to enable those 
        schools, or the middle schools that feed students into 
        those schools, to implement effective, sustainable, and 
        coordinated school dropout prevention and reentry 
        programs that involve activities such as--
                    ``(A) professional development;
                    ``(B) obtaining curricular materials;
                    ``(C) release time for professional staff 
                to obtain professional development;
                    ``(D) planning and research;
                    ``(E) remedial education;
                    ``(F) reduction in pupil-to-teacher ratios;
                    ``(G) efforts to meet State student 
                academic achievement standards;
                    ``(H) counseling and mentoring for at-risk 
                students;
                    ``(I) implementing comprehensive school 
                reform models, such as creating smaller 
                learning communities; and
                    ``(J) school reentry activities.
            ``(2) Amount.--Subject to paragraph (3), a subgrant 
        under this subpart shall be awarded--
                    ``(A) in the first year that a local 
                educational agency receives a subgrant payment 
                under this subpart, in an amount that is based 
                on factors such as--
                            ``(i) the size of schools operated 
                        by the local educational agency;
                            ``(ii) costs of the model or set of 
                        prevention and reentry strategies being 
                        implemented; and
                            ``(iii) local cost factors such as 
                        poverty rates;
                    ``(B) in the second year, in an amount that 
                is not less than 75 percent of the amount the 
                local educational agency received under this 
                subpart in the first such year;
                    ``(C) in the third year, in an amount that 
                is not less than 50 percent of the amount the 
                local educational agency received under this 
                subpart in the first such year; and
                    ``(D) in each succeeding year, in an amount 
                that is not less than 30 percent of the amount 
                the local educational agency received under 
                this subpart in the first year.
            ``(3) Duration.--A subgrant under this subpart 
        shall be awarded for a period of 3 years, and may be 
        continued for a period of 2 additional years if the 
        State educational agency determines, based on the 
        annual reports described in section 1830(a), that 
        significant progress has been made in lowering the 
        annual school dropout rate for secondary schools 
        participating in the program assisted under this 
        subpart.

``SEC. 1823. APPLICATIONS.

    ``(a) In General.--To receive--
            ``(1) a grant under this subpart, a State 
        educational agency or local educational agency shall 
        submit an application and plan to the Secretary at such 
        time, in such manner, and accompanied by such 
        information as the Secretary may reasonably require; 
        and
            ``(2) a subgrant under this subpart, a local 
        educational agency shall submit an application and plan 
        to the State educational agency at such time, in such 
        manner, and accompanied by such information as the 
        State educational agency may reasonably require.
    ``(b) Contents.--
            ``(1) State educational agency and local 
        educational agency.--Each application and plan 
        submitted under subsection (a) shall--
                    ``(A) include an outline--
                            ``(i) of the State educational 
                        agency's or local educational agency's 
                        strategy for reducing the State 
                        educational agency or local educational 
                        agency's annual school dropout rate;
                            ``(ii) for targeting secondary 
                        schools, and the middle schools that 
                        feed students into those secondary 
                        schools, that have the highest annual 
                        school dropout rates; and
                            ``(iii) for assessing the 
                        effectiveness of the efforts described 
                        in the plan;
                    ``(B) contain an identification of the 
                schools in the State or operated by the local 
                educational agency that have annual school 
                dropout rates that are greater than the average 
                annual school dropout rate for the State;
                    ``(C) describe the instructional strategies 
                to be implemented, how the strategies will 
                serve all students, and the effectiveness of 
                the strategies;
                    ``(D) describe a budget and timeline for 
                implementing the strategies;
                    ``(E) contain evidence of coordination with 
                existing resources;
                    ``(F) provide an assurance that funds 
                provided under this subpart will supplement, 
                and not supplant, other State and local funds 
                available for school dropout prevention and 
                reentry programs; and
                    ``(G) describe how the activities to be 
                assisted conform with research knowledge about 
                school dropout prevention and reentry.
            ``(2) Local educational agency.--Each application 
        and plan submitted under subsection (a) by a local 
        educational agency shall contain, in addition to the 
        requirements of paragraph (1)--
                    ``(A) an assurance that the local 
                educational agency is committed to providing 
                ongoing operational support for such schools to 
                address the problem of school dropouts for a 
                period of 5 years; and
                    ``(B) an assurance that the local 
                educational agency will support the plan, 
                including--
                            ``(i) provision of release time for 
                        teacher training;
                            ``(ii) efforts to coordinate 
                        activities for secondary schools and 
                        the middle schools that feed students 
                        into those secondary schools; and
                            ``(iii) encouraging other schools 
                        served by the local educational agency 
                        to participate in the plan.

``SEC. 1824. STATE RESERVATION.

    ``A State educational agency that receives a grant under 
paragraph (2) or (3) of section 1822(a) may reserve not more 
than 5 percent of the grant funds for administrative costs and 
State activities related to school dropout prevention and 
reentry activities, of which not more than 2 percent of the 
grant funds may be used for administrative costs.

``SEC. 1825. STRATEGIES AND CAPACITY BUILDING.

    ``Each local educational agency receiving a grant or 
subgrant under this subpart and each State educational agency 
receiving a grant under this subpart shall implement 
scientifically based, sustainable, and widely replicated 
strategies for school dropout prevention and reentry. The 
strategies may include--
            ``(1) specific strategies for targeted purposes, 
        such as--
                    ``(A) effective early intervention programs 
                designed to identify at-risk students;
                    ``(B) effective programs serving at-risk 
                students, including racial and ethnic 
                minorities and pregnant and parenting 
                teenagers, designed to prevent such students 
                from dropping out of school; and
                    ``(C) effective programs to identify and 
                encourage youth who have already dropped out of 
                school to reenter school and complete their 
                secondary education; and
            ``(2) approaches such as breaking larger schools 
        down into smaller learning communities and other 
        comprehensive reform approaches, creating alternative 
        school programs, and developing clear linkages to 
        career skills and employment.

``SEC. 1826. SELECTION OF LOCAL EDUCATIONAL AGENCIES FOR SUBGRANTS.

    ``(a) State Educational Agency Review and Award.--The State 
educational agency shall review applications submitted under 
section 1823(a)(2) and award subgrants to local educational 
agencies with the assistance and advice of a panel of experts 
on school dropout prevention and reentry.
    ``(b) Eligibility.--A local educational agency is eligible 
to receive a subgrant under this subpart if the local 
educational agency operates a public school (including a public 
alternative school)--
            ``(1) that is eligible to receive assistance under 
        part A; and
            ``(2)(A) that serves students 50 percent or more of 
        whom are low-income students; or
            ``(B) in which a majority of the students come from 
        feeder schools that serve students 50 percent or more 
        of whom are low-income students.

``SEC. 1827. COMMUNITY BASED ORGANIZATIONS.

    ``A local educational agency that receives a grant or 
subgrant under this subpart and a State educational agency that 
receives a grant under this subpart may use the funds to secure 
necessary services from a community-based organization or other 
government agency if the funds are used to provide school 
dropout prevention and reentry activities related to schoolwide 
efforts.

``SEC. 1828. TECHNICAL ASSISTANCE.

    ``Notwithstanding any other provision of law, each local 
educational agency that receives funds under this subpart shall 
use the funds to provide technical assistance to secondary 
schools served by the agency that have not made progress toward 
lowering annual school dropout rates after receiving assistance 
under this subpart for 2 fiscal years.

``SEC. 1829. SCHOOL DROPOUT RATE CALCULATION.

    ``For purposes of calculating an annual school dropout rate 
under this subpart, a school shall use the annual event school 
dropout rate for students leaving a school in a single year 
determined in accordance with the National Center for Education 
Statistics' Common Core of Data.

``SEC. 1830. REPORTING AND ACCOUNTABILITY.

    ``(a) Local Educational Agency Reports.--
            ``(1) In general.--To receive funds under this 
        subpart for a fiscal year after the first fiscal year 
        that a local educational agency receives funds under 
        this subpart, the local educational agency shall 
        provide, on an annual basis, a report regarding the 
        status of the implementation of activities funded under 
        this subpart, and the dropout data for students at 
        schools assisted under this subpart, disaggregated by 
        race and ethnicity, to the--
                    ``(A) Secretary, if the local educational 
                agency receives a grant under section 
                1822(a)(1); or
                    ``(B) State educational agency, if the 
                local educational agency receives a subgrant 
                under paragraph (2) or (3) of section 1822(a).
            ``(2) Dropout data.--The dropout data under 
        paragraph (1) shall include annual school dropout rates 
        for each fiscal year, starting with the 2 fiscal years 
        before the local educational agency received funds 
        under this subpart.
    ``(b) State Report on Program Activities.--Each State 
educational agency receiving funds under this subpart shall 
provide to the Secretary, at such time and in such format as 
the Secretary may require, information on the status of the 
implementation of activities funded under this subpart and 
outcome data for students in schools assisted under this 
subpart.
    ``(c) Accountability.--The Secretary shall evaluate the 
effect of the activities assisted under this subpart on school 
dropout prevention compared, if feasible, to a control group 
using control procedures. The Secretary may use funds 
appropriated for subpart 1 to carry out this evaluation.

                      ``PART I--GENERAL PROVISIONS

``SEC. 1901. FEDERAL REGULATIONS.

    ``(a) In General.--The Secretary may issue such regulations 
as are necessary to reasonably ensure that there is compliance 
with this title.
    ``(b) Negotiated Rulemaking Process.--
            ``(1) In general.--Before publishing in the Federal 
        Register proposed regulations to carry out this title, 
        the Secretary shall obtain the advice and 
        recommendations of representatives of Federal, State, 
        and local administrators, parents, teachers, 
        paraprofessionals, and members of local school boards 
        and other organizations involved with the 
        implementation and operation of programs under this 
        title.
            ``(2) Meetings and electronic exchange.--Such 
        advice and recommendations may be obtained through such 
        mechanisms as regional meetings and electronic 
        exchanges of information.
            ``(3) Proposed regulations.--After obtaining such 
        advice and recommendations, and before publishing 
        proposed regulations, the Secretary shall--
                    ``(A) establish a negotiated rulemaking 
                process on, at a minimum, standards and 
                assessments;
                    ``(B) select individuals to participate in 
                such process from among individuals or groups 
                that provided advice and recommendations, 
                including representation from all geographic 
                regions of the United States, in such numbers 
                as will provide an equitable balance between 
                representatives of parents and students and 
                representatives of educators and education 
                officials; and
                    ``(C) prepare a draft of proposed policy 
                options that shall be provided to the 
                individuals selected by the Secretary under 
                subparagraph (B) not less than 15 days before 
                the first meeting under such process.
            ``(4) Process.--Such process--
                    ``(A) shall be conducted in a timely manner 
                to ensure that final regulations are issued by 
                the Secretary not later than 1 year after the 
                date of enactment of the No Child Left Behind 
                Act of 2001; and
                    ``(B) shall not be subject to the Federal 
                Advisory Committee Act, but shall otherwise 
                follow the provisions of the Negotiated 
                Rulemaking Act of 1990 (5 U.S.C. 561 et seq.).
            ``(5) Emergency situation.--In an emergency 
        situation in which regulations to carry out this title 
        must be issued within a very limited time to assist 
        State educational agencies and local educational 
        agencies with the operation of a program under this 
        title, the Secretary may issue proposed regulations 
        without following such process but shall, immediately 
        thereafter and before issuing final regulations, 
        conduct regional meetings to review such proposed 
        regulations.
    ``(c) Limitation.--Regulations to carry out this part may 
not require local programs to follow a particular instructional 
model, such as the provision of services outside the regular 
classroom or school program.

``SEC. 1902. AGREEMENTS AND RECORDS.

    ``(a) Agreements.--All published proposed regulations shall 
conform to agreements that result from negotiated rulemaking 
described in section 1901 unless the Secretary reopens the 
negotiated rulemaking process or provides a written explanation 
to the participants involved in the process explaining why the 
Secretary decided to depart from, and not adhere to, such 
agreements.
    ``(b) Records.--The Secretary shall ensure that an accurate 
and reliable record of agreements reached during the 
negotiations process is maintained.

``SEC. 1903. STATE ADMINISTRATION.

    ``(a) Rulemaking.--
            ``(1) In general.--Each State that receives funds 
        under this title shall--
                    ``(A) ensure that any State rules, 
                regulations, and policies relating to this 
                title conform to the purposes of this title and 
                provide any such proposed rules, regulations, 
                and policies to the committee of practitioners 
                created under subsection (b) for review and 
                comment;
                    ``(B) minimize such rules, regulations, and 
                policies to which the State's local educational 
                agencies and schools are subject;
                    ``(C) eliminate or modify State and local 
                fiscal accounting requirements in order to 
                facilitate the ability of schools to 
                consolidate funds under schoolwide programs; 
                and
                    ``(D) identify any such rule, regulation, 
                or policy as a State-imposed requirement.
            ``(2) Support and facilitation.--State rules, 
        regulations, and policies under this title shall 
        support and facilitate local educational agency and 
        school-level systemic reform designed to enable all 
        children to meet the challenging State student academic 
        achievement standards.
    ``(b) Committee of Practitioners.--
            ``(1) In general.--Each State educational agency 
        that receives funds under this title shall create a 
        State committee of practitioners to advise the State in 
        carrying out its responsibilities under this title.
            ``(2) Membership.--Each such committee shall 
        include--
                    ``(A) as a majority of its members, 
                representatives from local educational 
                agencies;
                    ``(B) administrators, including the 
                administrators of programs described in other 
                parts of this title;
                    ``(C) teachers, including vocational 
                educators;
                    ``(D) parents;
                    ``(E) members of local school boards;
                    ``(F) representatives of private school 
                children; and
                    ``(G) pupil services personnel.
            ``(3) Duties.--The duties of such committee shall 
        include a review, before publication, of any proposed 
        or final State rule or regulation pursuant to this 
        title. In an emergency situation where such rule or 
        regulation must be issued within a very limited time to 
        assist local educational agencies with the operation of 
        the program under this title, the State educational 
        agency may issue a regulation without prior 
        consultation, but shall immediately thereafter convene 
        the State committee of practitioners to review the 
        emergency regulation before issuance in final form.

``SEC. 1904. LOCAL EDUCATIONAL AGENCY SPENDING AUDITS.

    ``(a) Audits.--The Comptroller General of the United States 
shall conduct audits of not less than 6 local educational 
agencies that receive funds under part A in each fiscal year to 
determine more clearly and specifically how local educational 
agencies are expending such funds. Such audits--
            ``(1) shall be conducted in 6 local educational 
        agencies that represent the size, ethnic, economic, and 
        geographic diversity of local educational agencies; and
            ``(2) shall examine the extent to which funds have 
        been expended for academic instruction in the core 
        curriculum and activities unrelated to academic 
        instruction in the core curriculum, such as the payment 
        of janitorial, utility, and other maintenance services, 
        the purchase and lease of vehicles, and the payment for 
        travel and attendance costs at conferences.
    ``(b) Report.--Not later than 3 months after the completion 
of the audits under subsection (a) each year, the Comptroller 
General of the United States shall submit a report on each 
audit to the Committee on Education and the Workforce of the 
House of Representatives and the Committee on Health, 
Education, Labor and Pensions of the Senate.

``SEC. 1905. PROHIBITION AGAINST FEDERAL MANDATES, DIRECTION, OR 
                    CONTROL.

    ``Nothing in this title shall be construed to authorize an 
officer or employee of the Federal Government to mandate, 
direct, or control a State, local educational agency, or 
school's specific instructional content, academic achievement 
standards and assessments, curriculum, or program of 
instruction.

``SEC. 1906. RULE OF CONSTRUCTION ON EQUALIZED SPENDING.

    ``Nothing in this title shall be construed to mandate 
equalized spending per pupil for a State, local educational 
agency, or school.

``SEC. 1907. STATE REPORT ON DROPOUT DATA.

    ``Not later than 1 year after a State educational agency 
receives funds under this title, the agency shall report to the 
Secretary and statewide, all school district data regarding 
annual school dropout rates in the State disaggregated by race 
and ethnicity according to procedures that conform with the 
National Center for Education Statistics' Common Core of Data.

``SEC. 1908. REGULATIONS FOR SECTIONS 1111 AND 1116.

    ``The Secretary shall issue regulations for sections 1111 
and 1116 not later than 6 months after the date of enactment of 
the No Child Left Behind Act of 2001.''.

TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS AND 
                               PRINCIPALS

SEC. 201. TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND.

    Title II (20 U.S.C. 6601 et seq.) is amended to read as 
follows:

 ``TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS 
                             AND PRINCIPALS

      ``PART A--TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND

``SEC. 2101. PURPOSE.

    ``The purpose of this part is to provide grants to State 
educational agencies, local educational agencies, State 
agencies for higher education, and eligible partnerships in 
order to--
            ``(1) increase student academic achievement through 
        strategies such as improving teacher and principal 
        quality and increasing the number of highly qualified 
        teachers in the classroom and highly qualified 
        principals and assistant principals in schools; and
            ``(2) hold local educational agencies and schools 
        accountable for improvements in student academic 
        achievement.

``SEC. 2102. DEFINITIONS.

    ``In this part:
            ``(1) Arts and sciences.--The term `arts and 
        sciences' means--
                    ``(A) when referring to an organizational 
                unit of an institution of higher education, any 
                academic unit that offers one or more academic 
                majors in disciplines or content areas 
                corresponding to the academic subjects in which 
                teachers teach; and
                    ``(B) when referring to a specific academic 
                subject, the disciplines or content areas in 
                which an academic major is offered by an 
                organizational unit described in subparagraph 
                (A).
            ``(2) Charter school.--The term `charter school' 
        has the meaning given the term in section 5210.
            ``(3) High-need local educational agency.--The term 
        `high-need local educational agency' means a local 
        educational agency--
                    ``(A)(i) that serves not fewer than 10,000 
                children from families with incomes below the 
                poverty line; or
                    ``(ii) for which not less than 20 percent 
                of the children served by the agency are from 
                families with incomes below the poverty line; 
                and
                    ``(B)(i) for which there is a high 
                percentage of teachers not teaching in the 
                academic subjects or grade levels that the 
                teachers were trained to teach; or
                    ``(ii) for which there is a high percentage 
                of teachers with emergency, provisional, or 
                temporary certification or licensing.
            ``(4) Highly qualified paraprofessional.--The term 
        `highly qualified paraprofessional' means a 
        paraprofessional who has not less than 2 years of--
                    ``(A) experience in a classroom; and
                    ``(B) postsecondary education or 
                demonstrated competence in a field or academic 
                subject for which there is a significant 
                shortage of qualified teachers.
            ``(5) Out-of-field teacher.--The term `out-of-field 
        teacher' means a teacher who is teaching an academic 
        subject or a grade level for which the teacher is not 
        highly qualified.
            ``(6) Principal.--The term `principal' includes an 
        assistant principal.

``SEC. 2103. AUTHORIZATIONS OF APPROPRIATIONS.

    ``(a) Grants to States, Local Educational Agencies, and 
Eligible Partnerships.--There are authorized to be appropriated 
to carry out this part (other than subpart 5) $3,175,000,000 
for fiscal year 2002 and such sums as may be necessary for each 
of the 5 succeeding fiscal years.
    ``(b) National Programs.--There are authorized to be 
appropriated to carry out subpart 5 such sums as may be 
necessary for fiscal year 2002 and each of the 5 succeeding 
fiscal years.

                     ``Subpart 1--Grants to States

``SEC. 2111. ALLOTMENTS TO STATES.

    ``(a) In General.--The Secretary shall make grants to 
States with applications approved under section 2112 to pay for 
the Federal share of the cost of carrying out the activities 
specified in section 2113. Each grant shall consist of the 
allotment determined for a State under subsection (b).
    ``(b) Determination of Allotments.--
            ``(1) Reservation of funds.--
                    ``(A) In general.--From the total amount 
                appropriated under section 2103(a) for a fiscal 
                year, the Secretary shall reserve--
                            ``(i) \1/2\ of 1 percent for 
                        allotments for the United States Virgin 
                        Islands, Guam, American Samoa, and the 
                        Commonwealth of the Northern Mariana 
                        Islands, to be distributed among those 
                        outlying areas on the basis of their 
                        relative need, as determined by the 
                        Secretary, in accordance with the 
                        purpose of this part; and
                            ``(ii) \1/2\ of 1 percent for the 
                        Secretary of the Interior for programs 
                        under this part in schools operated or 
                        funded by the Bureau of Indian Affairs.
            ``(2) State allotments.--
                    ``(A) Hold harmless.--
                            ``(i) In general.--Subject to 
                        subparagraph (B), from the funds 
                        appropriated under section 2103(a) for 
                        any fiscal year and not reserved under 
                        paragraph (1), the Secretary shall 
                        allot to each of the 50 States, the 
                        District of Columbia, and the 
                        Commonwealth of Puerto Rico an amount 
                        equal to the total amount that such 
                        State received for fiscal year 2001 
                        under--
                                    ``(I) section 2202(b) of 
                                this Act (as in effect on the 
                                day before the date of 
                                enactment of the No Child Left 
                                Behind Act of 2001); and
                                    ``(II) section 306 of the 
                                Department of Education 
                                Appropriations Act, 2001 (as 
                                enacted into law by section 
                                1(a)(1) of Public Law 106-554).
                            ``(ii) Ratable reduction.--If the 
                        funds described in clause (i) are 
                        insufficient to pay the full amounts 
                        that all States are eligible to receive 
                        under clause (i) for any fiscal year, 
                        the Secretary shall ratably reduce 
                        those amounts for the fiscal year.
                    ``(B) Allotment of additional funds.--
                            ``(i) In general.--Subject to 
                        clause (ii), for any fiscal year for 
                        which the funds appropriated under 
                        section 2103(a) and not reserved under 
                        paragraph (1) exceed the total amount 
                        required to make allotments under 
                        subparagraph (A), the Secretary shall 
                        allot to each of the States described 
                        in subparagraph (A) the sum of--
                                    ``(I) an amount that bears 
                                the same relationship to 35 
                                percent of the excess amount as 
                                the number of individuals age 5 
                                through 17 in the State, as 
                                determined by the Secretary on 
                                the basis of the most recent 
                                satisfactory data, bears to the 
                                number of those individuals in 
                                all such States, as so 
                                determined; and
                                    ``(II) an amount that bears 
                                the same relationship to 65 
                                percent of the excess amount as 
                                the number of individuals age 5 
                                through 17 from families with 
                                incomes below the poverty line, 
                                in the State, as determined by 
                                the Secretary on the basis of 
                                the most recent satisfactory 
                                data, bears to the number of 
                                those individuals in all such 
                                States, as so determined.
                            ``(ii) Exception.--No State 
                        receiving an allotment under clause (i) 
                        may receive less than \1/2\ of 1 
                        percent of the total excess amount 
                        allotted under such clause for a fiscal 
                        year.
            ``(3) Reallotment.--If any State does not apply for 
        an allotment under this subsection for any fiscal year, 
        the Secretary shall reallot the amount of the allotment 
        to the remaining States in accordance with this 
        subsection.

``SEC. 2112. STATE APPLICATIONS.

    ``(a) In General.--For a State to be eligible to receive a 
grant under this part, the State educational agency shall 
submit an application to the Secretary at such time, in such 
manner, and containing such information as the Secretary may 
reasonably require.
    ``(b) Contents.--Each application submitted under this 
section shall include the following:
            ``(1) A description of how the activities to be 
        carried out by the State educational agency under this 
        subpart will be based on a review of scientifically 
        based research and an explanation of why the activities 
        are expected to improve student academic achievement.
            ``(2) A description of how the State educational 
        agency will ensure that a local educational agency 
        receiving a subgrant to carry out subpart 2 will comply 
        with the requirements of such subpart.
            ``(3) A description of how the State educational 
        agency will ensure that activities assisted under this 
        subpart are aligned with challenging State academic 
        content and student academic achievement standards, 
        State assessments, and State and local curricula.
            ``(4) A description of how the State educational 
        agency will use funds under this part to improve the 
        quality of the State's teachers and principals.
            ``(5)(A) A description of how the State educational 
        agency will coordinate professional development 
        activities authorized under this part with professional 
        development activities provided under other Federal, 
        State, and local programs.
            ``(B) A description of the comprehensive strategy 
        that the State educational agency will use, as part of 
        such coordination effort, to ensure that teachers are 
        trained in the use of technology so that technology and 
        applications of technology are effectively used in the 
        classroom to improve teaching and learning in all 
        curricula and academic subjects, as appropriate.
            ``(6) A description of how the State educational 
        agency will encourage the development of proven, 
        innovative strategies to deliver intensive professional 
        development programs that are both cost-effective and 
        easily accessible, such as strategies that involve 
        delivery through the use of technology, peer networks, 
        and distance learning.
            ``(7)(A) A description of how the State educational 
        agency will ensure compliance with the requirements for 
        professional development activities described in 
        section 9101 and how the activities to be carried out 
        under the grant will be developed collaboratively and 
        based on the input of teachers, principals, parents, 
        administrators, paraprofessionals, and other school 
        personnel.
            ``(B) In the case of a State in which the State 
        educational agency is not the entity responsible for 
        teacher professional standards, certification, and 
        licensing, an assurance that the State activities 
        carried out under this subpart are carried out in 
        conjunction with the entity responsible for such 
        standards, certification, and licensing under State 
        law.
            ``(8) A description of how the State educational 
        agency will ensure that the professional development 
        (including teacher mentoring) needs of teachers will be 
        met using funds under this subpart and subpart 2.
            ``(9) A description of the State educational 
        agency's annual measurable objectives under section 
        1119(a)(2).
            ``(10) A description of how the State educational 
        agency will use funds under this part to meet the 
        teacher and paraprofessional requirements of section 
        1119 and how the State educational agency will hold 
        local educational agencies accountable for meeting the 
        annual measurable objectives described in section 
        1119(a)(2).
            ``(11) In the case of a State that has a charter 
        school law that exempts teachers from State 
        certification and licensing requirements, the specific 
        portion of the State law that provides for the 
        exemption.
            ``(12) An assurance that the State educational 
        agency will comply with section 9501 (regarding 
        participation by private school children and teachers).
    ``(c) Deemed Approval.--An application submitted by a State 
educational agency pursuant to subsection (a) shall be deemed 
to be approved by the Secretary unless the Secretary makes a 
written determination, prior to the expiration of the 120-day 
period beginning on the date on which the Secretary received 
the application, that the application is not in compliance with 
this subpart.
    ``(d) Disapproval.--The Secretary shall not finally 
disapprove the application, except after giving the State 
educational agency notice and an opportunity for a hearing.
    ``(e) Notification.--If the Secretary finds that the 
application is not in compliance, in whole or in part, with 
this subpart, the Secretary shall--
            ``(1) give the State educational agency notice and 
        an opportunity for a hearing; and
            ``(2) notify the State educational agency of the 
        finding of noncompliance and, in such notification, 
        shall--
                    ``(A) cite the specific provisions in the 
                application that are not in compliance; and
                    ``(B) request additional information, only 
                as to the noncompliant provisions, needed to 
                make the application compliant.
    ``(f) Response.--If the State educational agency responds 
to the Secretary's notification described in subsection (e)(2) 
during the 45-day period beginning on the date on which the 
agency received the notification, and resubmits the application 
with the requested information described in subsection 
(e)(2)(B), the Secretary shall approve or disapprove such 
application prior to the later of--
            ``(1) the expiration of the 45-day period beginning 
        on the date on which the application is resubmitted; or
            ``(2) the expiration of the 120-day period 
        described in subsection (c).
    ``(g) Failure to Respond.--If the State educational agency 
does not respond to the Secretary's notification described in 
subsection (e)(2) during the 45-day period beginning on the 
date on which the agency received the notification, such 
application shall be deemed to be disapproved.

``SEC. 2113. STATE USE OF FUNDS.

    ``(a) In General.--A State that receives a grant under 
section 2111 shall--
            ``(1) reserve 95 percent of the funds made 
        available through the grant to make subgrants to local 
        educational agencies as described in subpart 2;
            ``(2) reserve 2.5 percent (or, for a fiscal year 
        described in subsection (b), the percentage determined 
        under subsection (b)) of the funds to make subgrants to 
        local partnerships as described in subpart 3; and
            ``(3) use the remainder of the funds for State 
        activities described in subsection (c).
    ``(b) Special Rule.--For any fiscal year for which the 
total amount that would be reserved by all States under 
subsection (a)(2), if the States applied a 2.5 percentage rate, 
exceeds $125,000,000, the Secretary shall determine an 
alternative percentage that the States shall apply for that 
fiscal year under subsection (a)(2) so that the total amount 
reserved by all States under subsection (a)(2) equals 
$125,000,000.
    ``(c) State Activities.--The State educational agency for a 
State that receives a grant under section 2111 shall use the 
funds described in subsection (a)(3) to carry out one or more 
of the following activities, which may be carried out through a 
grant or contract with a for-profit or nonprofit entity:
            ``(1) Reforming teacher and principal certification 
        (including recertification) or licensing requirements 
        to ensure that--
                    ``(A)(i) teachers have the necessary 
                subject matter knowledge and teaching skills in 
                the academic subjects that the teachers teach; 
                and
                    ``(ii) principals have the instructional 
                leadership skills to help teachers teach and 
                students learn;
                    ``(B) teacher certification (including 
                recertification) or licensing requirements are 
                aligned with challenging State academic content 
                standards; and
                    ``(C) teachers have the subject matter 
                knowledge and teaching skills, including 
                technology literacy, and principals have the 
                instructional leadership skills, necessary to 
                help students meet challenging State student 
                academic achievement standards.
            ``(2) Carrying out programs that provide support to 
        teachers or principals, including support for teachers 
        and principals new to their profession, such as 
        programs that--
                    ``(A) provide teacher mentoring, team 
                teaching, reduced class schedules, and 
                intensive professional development; and
                    ``(B) use standards or assessments for 
                guiding beginning teachers that are consistent 
                with challenging State student academic 
                achievement standards and with the requirements 
                for professional development activities 
                described in section 9101.
            ``(3) Carrying out programs that establish, expand, 
        or improve alternative routes for State certification 
        of teachers and principals, especially in the areas of 
        mathematics and science, for highly qualified 
        individuals with a baccalaureate or master's degree, 
        including mid-career professionals from other 
        occupations, paraprofessionals, former military 
        personnel, and recent college or university graduates 
        with records of academic distinction who demonstrate 
        the potential to become highly effective teachers or 
        principals.
            ``(4) Developing and implementing mechanisms to 
        assist local educational agencies and schools in 
        effectively recruiting and retaining highly qualified 
        teachers, including specialists in core academic 
        subjects, principals, and pupil services personnel, 
        except that funds made available under this paragraph 
        may be used for pupil services personnel only--
                    ``(A) if the State educational agency is 
                making progress toward meeting the annual 
                measurable objectives described in section 
                1119(a)(2); and
                    ``(B) in a manner consistent with 
                mechanisms to assist local educational agencies 
                and schools in effectively recruiting and 
                retaining highly qualified teachers and 
                principals.
            ``(5) Reforming tenure systems, implementing 
        teacher testing for subject matter knowledge, and 
        implementing teacher testing for State certification or 
        licensing, consistent with title II of the Higher 
        Education Act of 1965.
            ``(6) Providing professional development for 
        teachers and principals and, in cases in which a State 
        educational agency determines support to be 
        appropriate, supporting the participation of pupil 
        services personnel in the same type of professional 
        development activities as are made available to 
        teachers and principals.
            ``(7) Developing systems to measure the 
        effectiveness of specific professional development 
        programs and strategies to document gains in student 
        academic achievement or increases in teacher mastery of 
        the academic subjects the teachers teach.
            ``(8) Fulfilling the State educational agency's 
        responsibilities concerning proper and efficient 
        administration of the programs carried out under this 
        part, including provision of technical assistance to 
        local educational agencies.
            ``(9) Funding projects to promote reciprocity of 
        teacher and principal certification or licensing 
        between or among States, except that no reciprocity 
        agreement developed under this paragraph or developed 
        using funds provided under this part may lead to the 
        weakening of any State teaching certification or 
        licensing requirement.
            ``(10) Developing or assisting local educational 
        agencies in the development and use of proven, 
        innovative strategies to deliver intensive professional 
        development programs that are both cost-effective and 
        easily accessible, such as strategies that involve 
        delivery through the use of technology, peer networks, 
        and distance learning.
            ``(11) Encouraging and supporting the training of 
        teachers and administrators to effectively integrate 
        technology into curricula and instruction, including 
        training to improve the ability to collect, manage, and 
        analyze data to improve teaching, decisionmaking, 
        school improvement efforts, and accountability.
            ``(12) Developing, or assisting local educational 
        agencies in developing, merit-based performance 
        systems, and strategies that provide differential and 
        bonus pay for teachers in high-need academic subjects 
        such as reading, mathematics, and science and teachers 
        in high-poverty schools and districts.
            ``(13) Providing assistance to local educational 
        agencies for the development and implementation of 
        professional development programs for principals that 
        enable the principals to be effective school leaders 
        and prepare all students to meet challenging State 
        academic content and student academic achievement 
        standards, and the development and support of school 
        leadership academies to help exceptionally talented 
        aspiring or current principals and superintendents 
        become outstanding managers and educational leaders.
            ``(14) Developing, or assisting local educational 
        agencies in developing, teacher advancement initiatives 
        that promote professional growth and emphasize multiple 
        career paths (such as paths to becoming a career 
        teacher, mentor teacher, or exemplary teacher) and pay 
        differentiation.
            ``(15) Providing assistance to teachers to enable 
        them to meet certification, licensing, or other 
        requirements needed to become highly qualified by the 
        end of the fourth year for which the State receives 
        funds under this part (as amended by the No Child Left 
        Behind Act of 2001).
            ``(16) Supporting activities that ensure that 
        teachers are able to use challenging State academic 
        content standards and student academic achievement 
        standards, and State assessments, to improve 
        instructional practices and improve student academic 
        achievement.
            ``(17) Funding projects and carrying out programs 
        to encourage men to become elementary school teachers.
            ``(18) Establishing and operating a center that--
                    ``(A) serves as a statewide clearinghouse 
                for the recruitment and placement of 
                kindergarten, elementary school, and secondary 
                school teachers; and
                    ``(B) establishes and carries out programs 
                to improve teacher recruitment and retention 
                within the State.
    ``(d) Administrative Costs.--A State educational agency or 
State agency for higher education receiving a grant under this 
part may use not more than 1 percent of the grant funds for 
planning and administration related to carrying out activities 
under subsection (c) and subpart 3.
    ``(e) Coordination.--A State that receives a grant to carry 
out this subpart and a grant under section 202 of the Higher 
Education Act of 1965 shall coordinate the activities carried 
out under this subpart and the activities carried out under 
that section.
    ``(f) Supplement, Not Supplant.--Funds received under this 
subpart shall be used to supplement, and not supplant, non-
Federal funds that would otherwise be used for activities 
authorized under this subpart.

          ``Subpart 2--Subgrants to Local Educational Agencies

``SEC. 2121. ALLOCATIONS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Subgrants to Local Educational Agencies.--
            ``(1) In general.--The Secretary may make a grant 
        to a State under subpart 1 only if the State 
        educational agency agrees to distribute the funds 
        described in this subsection as subgrants to local 
        educational agencies under this subpart.
            ``(2) Hold harmless.--
                    ``(A) In general.--From the funds reserved 
                by a State under section 2113(a)(1), the State 
                educational agency shall allocate to each local 
                educational agency in the State an amount equal 
                to the total amount that such agency received 
                for fiscal year 2001 under--
                            ``(i) section 2203(1)(B) of this 
                        Act (as in effect on the day before the 
                        date of enactment of the No Child Left 
                        Behind Act of 2001); and
                            ``(ii) section 306 of the 
                        Department of Education Appropriations 
                        Act, 2001 (as enacted into law by 
                        section 1(a)(1) of Public Law 106-554).
                    ``(B) Nonparticipating agencies.--In the 
                case of a local educational agency that did not 
                receive any funds for fiscal year 2001 under 
                one or both of the provisions referred to in 
                clauses (i) and (ii) of subparagraph (A), the 
                amount allocated to the agency under such 
                subparagraph shall be the total amount that the 
                agency would have received for fiscal year 2001 
                if the agency had elected to participate in all 
                of the programs for which the agency was 
                eligible under each of the provisions referred 
                to in those clauses.
                    ``(C) Ratable reduction.--If the funds 
                described in subparagraph (A) are insufficient 
                to pay the full amounts that all local 
                educational agencies in the State are eligible 
                to receive under subparagraph (A) for any 
                fiscal year, the State educational agency shall 
                ratably reduce such amounts for the fiscal 
                year.
            ``(3) Allocation of additional funds.--For any 
        fiscal year for which the funds reserved by a State 
        under section 2113(a)(1) exceed the total amount 
        required to make allocations under paragraph (2), the 
        State educational agency shall allocate to each of the 
        eligible local educational agencies in the State the 
        sum of--
                    ``(A) an amount that bears the same 
                relationship to 20 percent of the excess amount 
                as the number of individuals age 5 through 17 
                in the geographic area served by the agency, as 
                determined by the Secretary on the basis of the 
                most recent satisfactory data, bears to the 
                number of those individuals in the geographic 
                areas served by all the local educational 
                agencies in the State, as so determined; and
                    ``(B) an amount that bears the same 
                relationship to 80 percent of the excess amount 
                as the number of individuals age 5 through 17 
                from families with incomes below the poverty 
                line in the geographic area served by the 
                agency, as determined by the Secretary on the 
                basis of the most recent satisfactory data, 
                bears to the number of those individuals in the 
                geographic areas served by all the local 
                educational agencies in the State, as so 
                determined.

``SEC. 2122. LOCAL APPLICATIONS AND NEEDS ASSESSMENT.

    ``(a) In General.--To be eligible to receive a subgrant 
under this subpart, a local educational agency shall submit an 
application to the State educational agency at such time, in 
such manner, and containing such information as the State 
educational agency may reasonably require.
    ``(b) Contents.--Each application submitted under this 
section shall be based on the needs assessment required in 
subsection (c) and shall include the following:
            ``(1)(A) A description of the activities to be 
        carried out by the local educational agency under this 
        subpart and how these activities will be aligned with--
                    ``(i) challenging State academic content 
                standards and student academic achievement 
                standards, and State assessments; and
                    ``(ii) the curricula and programs tied to 
                the standards described in clause (i).
            ``(B) A description of how the activities will be 
        based on a review of scientifically based research and 
        an explanation of why the activities are expected to 
        improve student academic achievement.
            ``(2) A description of how the activities will have 
        a substantial, measurable, and positive impact on 
        student academic achievement and how the activities 
        will be used as part of a broader strategy to eliminate 
        the achievement gap that separates low-income and 
        minority students from other students.
            ``(3) An assurance that the local educational 
        agency will target funds to schools within the 
        jurisdiction of the local educational agency that--
                    ``(A) have the lowest proportion of highly 
                qualified teachers;
                    ``(B) have the largest average class size; 
                or
                    ``(C) are identified for school improvement 
                under section 1116(b).
            ``(4) A description of how the local educational 
        agency will coordinate professional development 
        activities authorized under this subpart with 
        professional development activities provided through 
        other Federal, State, and local programs.
            ``(5) A description of the professional development 
        activities that will be made available to teachers and 
        principals under this subpart and how the local 
        educational agency will ensure that the professional 
        development (which may include teacher mentoring) needs 
        of teachers and principals will be met using funds 
        under this subpart.
            ``(6) A description of how the local educational 
        agency will integrate funds under this subpart with 
        funds received under part D that are used for 
        professional development to train teachers to integrate 
        technology into curricula and instruction to improve 
        teaching, learning, and technology literacy.
            ``(7) A description of how the local educational 
        agency, teachers, paraprofessionals, principals, other 
        relevant school personnel, and parents have 
        collaborated in the planning of activities to be 
        carried out under this subpart and in the preparation 
        of the application.
            ``(8) A description of the results of the needs 
        assessment described in subsection (c).
            ``(9) A description of how the local educational 
        agency will provide training to enable teachers to--
                    ``(A) teach and address the needs of 
                students with different learning styles, 
                particularly students with disabilities, 
                students with special learning needs (including 
                students who are gifted and talented), and 
                students with limited English proficiency;
                    ``(B) improve student behavior in the 
                classroom and identify early and appropriate 
                interventions to help students described in 
                subparagraph (A) learn;
                    ``(C) involve parents in their child's 
                education; and
                    ``(D) understand and use data and 
                assessments to improve classroom practice and 
                student learning.
            ``(10) A description of how the local educational 
        agency will use funds under this subpart to meet the 
        requirements of section 1119.
            ``(11) An assurance that the local educational 
        agency will comply with section 9501 (regarding 
        participation by private school children and teachers).
    ``(c) Needs Assessment.--
            ``(1) In general.--To be eligible to receive a 
        subgrant under this subpart, a local educational agency 
        shall conduct an assessment of local needs for 
        professional development and hiring, as identified by 
        the local educational agency and school staff.
            ``(2) Requirements.--Such needs assessment shall be 
        conducted with the involvement of teachers, including 
        teachers participating in programs under part A of 
        title I, and shall take into account the activities 
        that need to be conducted in order to give teachers the 
        means, including subject matter knowledge and teaching 
        skills, and to give principals the instructional 
        leadership skills to help teachers, to provide students 
        with the opportunity to meet challenging State and 
        local student academic achievement standards.

``SEC. 2123. LOCAL USE OF FUNDS.

    ``(a) In General.--A local educational agency that receives 
a subgrant under section 2121 shall use the funds made 
available through the subgrant to carry out one or more of the 
following activities, including carrying out the activities 
through a grant or contract with a for-profit or nonprofit 
entity:
            ``(1) Developing and implementing mechanisms to 
        assist schools in effectively recruiting and retaining 
        highly qualified teachers, including specialists in 
        core academic subjects, principals, and pupil services 
        personnel, except that funds made available under this 
        paragraph may be used for pupil services personnel 
        only--
                    ``(A) if the local educational agency is 
                making progress toward meeting the annual 
                measurable objectives described in section 
                1119(a)(2); and
                    ``(B) in a manner consistent with 
                mechanisms to assist schools in effectively 
                recruiting and retaining highly qualified 
                teachers and principals.
            ``(2) Developing and implementing initiatives to 
        assist in recruiting highly qualified teachers 
        (particularly initiatives that have proven effective in 
        retaining highly qualified teachers), and hiring highly 
        qualified teachers, who will be assigned teaching 
        positions within their fields, including--
                    ``(A) providing scholarships, signing 
                bonuses, or other financial incentives, such as 
                differential pay, for teachers to teach--
                            ``(i) in academic subjects in which 
                        there exists a shortage of highly 
                        qualified teachers within a school or 
                        within the local educational agency; 
                        and
                            ``(ii) in schools in which there 
                        exists a shortage of highly qualified 
                        teachers;
                    ``(B) recruiting and hiring highly 
                qualified teachers to reduce class size, 
                particularly in the early grades; and
                    ``(C) establishing programs that--
                            ``(i) train and hire regular and 
                        special education teachers (which may 
                        include hiring special education 
                        teachers to team-teach in classrooms 
                        that contain both children with 
                        disabilities and nondisabled children);
                            ``(ii) train and hire highly 
                        qualified teachers of special needs 
                        children, as well as teaching 
                        specialists in core academic subjects 
                        who will provide increased 
                        individualized instruction to students;
                            ``(iii) recruit qualified 
                        professionals from other fields, 
                        including highly qualified 
                        paraprofessionals, and provide such 
                        professionals with alternative routes 
                        to teacher certification, including 
                        developing and implementing hiring 
                        policies that ensure comprehensive 
                        recruitment efforts as a way to expand 
                        the applicant pool, such as through 
                        identifying teachers certified through 
                        alternative routes, and using a system 
                        of intensive screening designed to hire 
                        the most qualified applicants; and
                            ``(iv) provide increased 
                        opportunities for minorities, 
                        individuals with disabilities, and 
                        other individuals underrepresented in 
                        the teaching profession.
            ``(3) Providing professional development 
        activities--
                    ``(A) that improve the knowledge of 
                teachers and principals and, in appropriate 
                cases, paraprofessionals, concerning--
                            ``(i) one or more of the core 
                        academic subjects that the teachers 
                        teach; and
                            ``(ii) effective instructional 
                        strategies, methods, and skills, and 
                        use of challenging State academic 
                        content standards and student academic 
                        achievement standards, and State 
                        assessments, to improve teaching 
                        practices and student academic 
                        achievement; and
                    ``(B) that improve the knowledge of 
                teachers and principals and, in appropriate 
                cases, paraprofessionals, concerning effective 
                instructional practices and that--
                            ``(i) involve collaborative groups 
                        of teachers and administrators;
                            ``(ii) provide training in how to 
                        teach and address the needs of students 
                        with different learning styles, 
                        particularly students with 
                        disabilities, students with special 
                        learning needs (including students who 
                        are gifted and talented), and students 
                        with limited English proficiency;
                            ``(iii) provide training in methods 
                        of--
                                    ``(I) improving student 
                                behavior in the classroom; and
                                    ``(II) identifying early 
                                and appropriate interventions 
                                to help students described in 
                                clause (ii) learn;
                            ``(iv) provide training to enable 
                        teachers and principals to involve 
                        parents in their child's education, 
                        especially parents of limited English 
                        proficient and immigrant children; and
                            ``(v) provide training on how to 
                        understand and use data and assessments 
                        to improve classroom practice and 
                        student learning.
            ``(4) Developing and implementing initiatives to 
        promote retention of highly qualified teachers and 
        principals, particularly within elementary schools and 
        secondary schools with a high percentage of low-
        achieving students, including programs that provide--
                    ``(A) teacher mentoring from exemplary 
                teachers, principals, or superintendents;
                    ``(B) induction and support for teachers 
                and principals during their first 3 years of 
                employment as teachers or principals, 
                respectively;
                    ``(C) incentives, including financial 
                incentives, to retain teachers who have a 
                record of success in helping low-achieving 
                students improve their academic achievement; or
                    ``(D) incentives, including financial 
                incentives, to principals who have a record of 
                improving the academic achievement of all 
                students, but particularly students from 
                economically disadvantaged families, students 
                from racial and ethnic minority groups, and 
                students with disabilities.
            ``(5) Carrying out programs and activities that are 
        designed to improve the quality of the teacher force, 
        such as--
                    ``(A) innovative professional development 
                programs (which may be provided through 
                partnerships including institutions of higher 
                education), including programs that train 
                teachers and principals to integrate technology 
                into curricula and instruction to improve 
                teaching, learning, and technology literacy, 
                are consistent with the requirements of section 
                9101, and are coordinated with activities 
                carried out under part D;
                    ``(B) development and use of proven, cost-
                effective strategies for the implementation of 
                professional development activities, such as 
                through the use of technology and distance 
                learning;
                    ``(C) tenure reform;
                    ``(D) merit pay programs; and
                    ``(E) testing of elementary school and 
                secondary school teachers in the academic 
                subjects that the teachers teach.
            ``(6) Carrying out professional development 
        activities designed to improve the quality of 
        principals and superintendents, including the 
        development and support of academies to help talented 
        aspiring or current principals and superintendents 
        become outstanding managers and educational leaders.
            ``(7) Hiring highly qualified teachers, including 
        teachers who become highly qualified through State and 
        local alternative routes to certification, and special 
        education teachers, in order to reduce class size, 
        particularly in the early grades.
            ``(8) Carrying out teacher advancement initiatives 
        that promote professional growth and emphasize multiple 
        career paths (such as paths to becoming a career 
        teacher, mentor teacher, or exemplary teacher) and pay 
        differentiation.
            ``(10) Carrying out programs and activities related 
        to exemplary teachers.
    ``(b) Supplement, Not Supplant.--Funds received under this 
subpart shall be used to supplement, and not supplant, non-
Federal funds that would otherwise be used for activities 
authorized under this subpart.

            ``Subpart 3--Subgrants to Eligible Partnerships

``SEC. 2131. DEFINITIONS.

    ``In this subpart:
            ``(1) Eligible partnership.--The term `eligible 
        partnership' means an entity that--
                    ``(A) shall include--
                            ``(i) a private or State 
                        institution of higher education and the 
                        division of the institution that 
                        prepares teachers and principals;
                            ``(ii) a school of arts and 
                        sciences; and
                            ``(iii) a high-need local 
                        educational agency; and
                    ``(B) may include another local educational 
                agency, a public charter school, an elementary 
                school or secondary school, an educational 
                service agency, a nonprofit educational 
                organization, another institution of higher 
                education, a school of arts and sciences within 
                such an institution, the division of such an 
                institution that prepares teachers and 
                principals, a nonprofit cultural organization, 
                an entity carrying out a prekindergarten 
                program, a teacher organization, a principal 
                organization, or a business.
            ``(2) Low-performing school.--The term `low-
        performing school' means an elementary school or 
        secondary school that is identified under section 1116.

``SEC. 2132. SUBGRANTS.

    ``(a) In General.--The State agency for higher education 
for a State that receives a grant under section 2111, working 
in conjunction with the State educational agency (if such 
agencies are separate), shall use the funds reserved under 
section 2113(a)(2) to make subgrants, on a competitive basis, 
to eligible partnerships to enable such partnerships to carry 
out the activities described in section 2134.
    ``(b) Distribution.--The State agency for higher education 
shall ensure that--
            ``(1) such subgrants are equitably distributed by 
        geographic area within a State; or
            ``(2) eligible partnerships in all geographic areas 
        within the State are served through the subgrants.
    ``(c) Special Rule.--No single participant in an eligible 
partnership may use more than 50 percent of the funds made 
available to the partnership under this section.

``SEC. 2133. APPLICATIONS.

    ``To be eligible to receive a subgrant under this subpart, 
an eligible partnership shall submit an application to the 
State agency for higher education at such time, in such manner, 
and containing such information as the agency may require.

``SEC. 2134. USE OF FUNDS.

    ``(a) In General.--An eligible partnership that receives a 
subgrant under section 2132 shall use the subgrant funds for--
            ``(1) professional development activities in core 
        academic subjects to ensure that--
                    ``(A) teachers and highly qualified 
                paraprofessionals, and, if appropriate, 
                principals have subject matter knowledge in the 
                academic subjects that the teachers teach, 
                including the use of computer related 
                technology to enhance student learning; and
                    ``(B) principals have the instructional 
                leadership skills that will help such 
                principals work most effectively with teachers 
                to help students master core academic subjects; 
                and
            ``(2) developing and providing assistance to local 
        educational agencies and individuals who are teachers, 
        highly qualified paraprofessionals, or principals of 
        schools served by such agencies, for sustained, high-
        quality professional development activities that--
                    ``(A) ensure that the individuals are able 
                to use challenging State academic content 
                standards and student academic achievement 
                standards, and State assessments, to improve 
                instructional practices and improve student 
                academic achievement;
                    ``(B) may include intensive programs 
                designed to prepare such individuals who will 
                return to a school to provide instruction 
                related to the professional development 
                described in subparagraph (A) to other such 
                individuals within such school; and
                    ``(C) may include activities of 
                partnerships between one or more local 
                educational agencies, one or more schools 
                served by such local educational agencies, and 
                one or more institutions of higher education 
                for the purpose of improving teaching and 
                learning at low-performing schools.
    ``(b) Coordination.--An eligible partnership that receives 
a subgrant to carry out this subpart and a grant under section 
203 of the Higher Education Act of 1965 shall coordinate the 
activities carried out under this subpart and the activities 
carried out under that section 203.

                      ``Subpart 4--Accountability

``SEC. 2141. TECHNICAL ASSISTANCE AND ACCOUNTABILITY.

    ``(a) Improvement Plan.--After the second year of the plan 
described in section 1119(a)(2), if a State educational agency 
determines, based on the reports described in section 
1119(b)(1), that a local educational agency in the State has 
failed to make progress toward meeting the annual measurable 
objectives described in section 1119(a)(2), for 2 consecutive 
years, such local educational agency shall develop an 
improvement plan that will enable the agency to meet such 
annual measurable objectives and that specifically addresses 
issues that prevented the agency from meeting such annual 
measurable objectives.
    ``(b) Technical Assistance.--During the development of the 
improvement plan described in subsection (a) and throughout 
implementation of the plan, the State educational agency 
shall--
            ``(1) provide technical assistance to the local 
        educational agency; and
            ``(2) provide technical assistance, if applicable, 
        to schools served by the local educational agency that 
        need assistance to enable the local educational agency 
        to meet the annual measurable objectives described in 
        section 1119(a)(2).
    ``(c) Accountability.--After the third year of the plan 
described in section 1119(a)(2), if the State educational 
agency determines, based on the reports described in section 
1119(b)(1), that the local educational agency has failed to 
make progress toward meeting the annual measurable objectives 
described in section 1119(a)(2), and has failed to make 
adequate yearly progress as described under section 
1111(b)(2)(B), for 3 consecutive years, the State educational 
agency shall enter into an agreement with such local 
educational agency on the use of that agency's funds under this 
part. As part of this agreement, the State educational agency--
            ``(1) shall develop, in conjunction with the local 
        educational agency, teachers, and principals, 
        professional development strategies and activities, 
        based on scientifically based research, that the local 
        educational agency will use to meet the annual 
        measurable objectives described in section 1119(a)(2) 
        and require such agency to utilize such strategies and 
        activities; and
            ``(2)(A) except as provided in subparagraphs (B) 
        and (C), shall prohibit the use of funds received under 
        part A of title I to fund any paraprofessional hired 
        after the date such determination is made;
            ``(B) shall allow the use of such funds to fund a 
        paraprofessional hired after that date if the local 
        educational agency can demonstrate that the hiring is 
        to fill a vacancy created by the departure of another 
        paraprofessional funded under title I and such new 
        paraprofessional satisfies the requirements of section 
        1119(c); and
            ``(C) may allow the use of such funds to fund a 
        paraprofessional hired after that date if the local 
        educational agency can demonstrate--
                    ``(i) that a significant influx of 
                population has substantially increased student 
                enrollment; or
                    ``(ii) that there is an increased need for 
                translators or assistance with parental 
                involvement activities.
    ``(d) Special Rule.--During the development of the 
strategies and activities described in subsection (c)(1), the 
State educational agency shall, in conjunction with the local 
educational agency, provide from funds allocated to such local 
educational agency under subpart 2 directly to one or more 
schools served by such local educational agency, to enable 
teachers at the schools to choose, with continuing consultation 
with the principal involved, professional development 
activities that--
            ``(1) meet the requirements for professional 
        development activities described in section 9101; and
            ``(2) are coordinated with other reform efforts at 
        the schools.

                    ``Subpart 5--National Activities

``SEC. 2151. NATIONAL ACTIVITIES OF DEMONSTRATED EFFECTIVENESS.

    ``(a) National Teacher Recruitment Campaign.--The Secretary 
is authorized to establish and carry out a national teacher 
recruitment campaign, which may include activities carried out 
through the National Teacher Recruitment Clearinghouse, to 
assist high-need local educational agencies in recruiting 
teachers (particularly those activities that are effective in 
retaining new teachers) and training teachers and to conduct a 
national public service campaign concerning the resources for, 
and the routes to, entering the field of teaching. In carrying 
out the campaign, the Secretary may promote and link the 
activities of the campaign to the information and referral 
activities of the National Teacher Recruitment Clearinghouse. 
The Secretary shall coordinate activities under this subsection 
with State and regional recruitment activities.
    ``(b) School Leadership.--
            ``(1) In general.--The Secretary is authorized to 
        establish and carry out a national principal 
        recruitment program to assist high-need local 
        educational agencies in recruiting and training 
        principals (including assistant principals) through 
        such activities as--
                    ``(A) providing financial incentives to 
                aspiring new principals;
                    ``(B) providing stipends to principals who 
                mentor new principals;
                    ``(C) carrying out professional development 
                programs in instructional leadership and 
                management; and
                    ``(D) providing incentives that are 
                appropriate for teachers or individuals from 
                other fields who want to become principals and 
                that are effective in retaining new principals.
            ``(2) Grants.--If the Secretary uses sums made 
        available under section 2103(b) to carry out paragraph 
        (1), the Secretary shall carry out such paragraph by 
        making grants, on a competitive basis, to--
                    ``(A) high-need local educational agencies;
                    ``(B) consortia of high-need local 
                educational agencies; and
                    ``(C) partnerships of high-need local 
                educational agencies, nonprofit organizations, 
                and institutions of higher education.
    ``(c) Advanced Certification or Advanced Credentialing.--
            ``(1) In general.--The Secretary is authorized to 
        support activities to encourage and support teachers 
        seeking advanced certification or advanced 
        credentialing through high quality professional teacher 
        enhancement programs designed to improve teaching and 
        learning.
            ``(2) Implementation.--In carrying out paragraph 
        (1), the Secretary shall make grants to eligible 
        entities to--
                    ``(A) develop teacher standards that 
                include measures tied to increased student 
                academic achievement; and
                    ``(B) promote outreach, teacher 
                recruitment, teacher subsidy, or teacher 
                support programs, related to teacher 
                certification or credentialing by the National 
                Board for Professional Teaching Standards, the 
                National Council on Teacher Quality, or other 
                nationally recognized certification or 
                credentialing organizations.
            ``(3) Eligible entities.--In this subsection, the 
        term `eligible entity' includes--
                    ``(A) a State educational agency;
                    ``(B) a local educational agency;
                    ``(C) the National Board for Professional 
                Teaching Standards, in partnership with a high-
                need local educational agency or a State 
                educational agency;
                    ``(D) the National Council on Teacher 
                Quality, in partnership with a high-need local 
                educational agency or a State educational 
                agency; or
                    ``(E) another recognized entity, including 
                another recognized certification or 
                credentialing organization, in partnership with 
                a high-need local educational agency or a State 
                educational agency.
    ``(d) Special Education Teacher Training.--The Secretary is 
authorized to award a grant to the University of Northern 
Colorado to enable such university to provide, to other 
institutions of higher education, assistance in training 
special education teachers.
    ``(e) Early Childhood Educator Professional Development.--
            ``(1) Purpose.--The purpose of this subsection is 
        to enhance the school readiness of young children, 
        particularly disadvantaged young children, and to 
        prevent young children from encountering difficulties 
        once the children enter school, by improving the 
        knowledge and skills of early childhood educators who 
        work in communities that have high concentrations of 
        children living in poverty.
            ``(2) Program authorized.--
                    ``(A) Grants to partnerships.--The 
                Secretary is authorized to carry out the 
                purpose of this subsection by awarding grants, 
                on a competitive basis, to partnerships 
                consisting of--
                            ``(i)(I) one or more institutions 
                        of higher education that provide 
                        professional development for early 
                        childhood educators who work with 
                        children from low-income families in 
                        high-need communities; or
                            ``(II) another public or private 
                        entity that provides such professional 
                        development;
                            ``(ii) one or more public agencies 
                        (including local educational agencies, 
                        State educational agencies, State human 
                        services agencies, and State and local 
                        agencies administering programs under 
                        the Child Care and Development Block 
                        Grant Act of 1990 (42 U.S.C. 9858 et 
                        seq.), Head Start agencies, or private 
                        organizations; and
                            ``(iii) to the extent feasible, an 
                        entity with demonstrated experience in 
                        providing training to educators in 
                        early childhood education programs 
                        concerning identifying and preventing 
                        behavior problems or working with 
                        children identified as or suspected to 
                        be victims of abuse.
                    ``(B) Duration and number of grants.--
                            ``(i) Duration.--The Secretary 
                        shall award grants under this 
                        subsection for periods of not more than 
                        4 years.
                            ``(ii) Number.--No partnership may 
                        receive more than one grant under this 
                        subsection.
            ``(3) Applications.--
                    ``(A) Applications required.--Any 
                partnership that desires to receive a grant 
                under this subsection shall submit an 
                application to the Secretary at such time, in 
                such manner, and containing such information as 
                the Secretary may require.
                    ``(B) Contents.--Each such application 
                shall include--
                            ``(i) a description of the high-
                        need community to be served by the 
                        project proposed to be carried out 
                        through the grant, including such 
                        demographic and socioeconomic 
                        information as the Secretary may 
                        request;
                            ``(ii) information on the quality 
                        of the early childhood educator 
                        professional development program 
                        currently conducted (as of the date of 
                        the submission of the application) by 
                        the institution of higher education or 
                        another provider in the partnership;
                            ``(iii) the results of a needs 
                        assessment that the entities in the 
                        partnership have undertaken to 
                        determine the most critical 
                        professional development needs of the 
                        early childhood educators to be served 
                        by the partnership and in the broader 
                        community, and a description of how the 
                        proposed project will address those 
                        needs;
                            ``(iv) a description of how the 
                        proposed project will be carried out, 
                        including a description of--
                                    ``(I) how individuals will 
                                be selected to participate;
                                    ``(II) the types of 
                                professional development 
                                activities, based on 
                                scientifically based research, 
                                that will be carried out;
                                    ``(III) how research on 
                                effective professional 
                                development and on adult 
                                learning will be used to design 
                                and deliver project activities;
                                    ``(IV) how the project will 
                                be coordinated with and build 
                                on, and will not supplant or 
                                duplicate, early childhood 
                                education professional 
                                development activities in the 
                                high-need community;
                                    ``(V) how the project will 
                                train early childhood educators 
                                to provide developmentally 
                                appropriate school-readiness 
                                services that are based on the 
                                best available research on 
                                early childhood pedagogy and 
                                child development and learning 
                                domains;
                                    ``(VI) how the project will 
                                train early childhood educators 
                                to meet the diverse educational 
                                needs of children in the 
                                community, including children 
                                who have limited English 
                                proficiency, children with 
                                disabilities, or children with 
                                other special needs; and
                                    ``(VII) how the project 
                                will train early childhood 
                                educators in identifying and 
                                preventing behavioral problems 
                                in children or working with 
                                children identified as or 
                                suspected to be victims of 
                                abuse;
                            ``(v) a description of--
                                    ``(I) the specific 
                                objectives that the partnership 
                                will seek to attain through the 
                                project, and the methods that 
                                the partnership will use to 
                                measure progress toward 
                                attainment of those objectives; 
                                and
                                    ``(II) how the objectives 
                                and the measurement methods 
                                align with the achievement 
                                indicators established by the 
                                Secretary under paragraph 
                                (6)(A);
                            ``(vi) a description of the 
                        partnership's plan for continuing the 
                        activities carried out under the 
                        project after Federal funding ceases;
                            ``(vii) an assurance that, where 
                        applicable, the project will provide 
                        appropriate professional development to 
                        volunteers working directly with young 
                        children, as well as to paid staff; and
                            ``(viii) an assurance that, in 
                        developing the application and in 
                        carrying out the project, the 
                        partnership has consulted with, and 
                        will consult with, relevant agencies, 
                        early childhood educator organizations, 
                        and early childhood providers that are 
                        not members of the partnership.
            ``(4) Selection of grant recipients.--
                    ``(A) Criteria.--The Secretary shall select 
                partnerships to receive grants under this 
                subsection on the basis of the degree to which 
                the communities proposed to be served require 
                assistance and the quality of the applications 
                submitted under paragraph (3).
                    ``(B) Geographic distribution.--In 
                selecting partnerships to receive grants under 
                this subsection, the Secretary shall seek to 
                ensure that communities in different regions of 
                the Nation, as well as both urban and rural 
                communities, are served.
            ``(5) Uses of funds.--
                    ``(A) In general.--Each partnership 
                receiving a grant under this subsection shall 
                use the grant funds to carry out activities 
                that will improve the knowledge and skills of 
                early childhood educators who are working in 
                early childhood programs that are located in 
                high-need communities and serve concentrations 
                of children from low-income families.
                    ``(B) Allowable activities.--Such 
                activities may include--
                            ``(i) professional development for 
                        early childhood educators, particularly 
                        to familiarize those educators with the 
                        application of recent research on 
                        child, language, and literacy 
                        development and on early childhood 
                        pedagogy;
                            ``(ii) professional development for 
                        early childhood educators in working 
                        with parents, so that the educators and 
                        parents can work together to provide 
                        and support developmentally appropriate 
                        school-readiness services that are 
                        based on scientifically based research 
                        on early childhood pedagogy and child 
                        development and learning domains;
                            ``(iii) professional development 
                        for early childhood educators to work 
                        with children who have limited English 
                        proficiency, children with 
                        disabilities, and children with other 
                        special needs;
                            ``(iv) professional development to 
                        train early childhood educators in 
                        identifying and preventing behavioral 
                        problems in children or working with 
                        children identified as or suspected to 
                        be victims of abuse;
                            ``(v) activities that assist and 
                        support early childhood educators 
                        during their first 3 years in the 
                        field;
                            ``(vi) development and 
                        implementation of early childhood 
                        educator professional development 
                        programs that make use of distance 
                        learning and other technologies;
                            ``(vii) professional development 
                        activities related to the selection and 
                        use of screening and diagnostic 
                        assessments to improve teaching and 
                        learning; and
                            ``(viii) data collection, 
                        evaluation, and reporting needed to 
                        meet the requirements of paragraph (6) 
                        relating to accountability.
            ``(6) Accountability.--
                    ``(A) Achievement indicators.--On the date 
                on which the Secretary first issues a notice 
                soliciting applications for grants under this 
                subsection, the Secretary shall announce 
                achievement indicators for this subsection, 
                which shall be designed--
                            ``(i) to measure the quality and 
                        accessibility of the professional 
                        development provided;
                            ``(ii) to measure the impact of 
                        that professional development on the 
                        early childhood education provided by 
                        the individuals who receive the 
                        professional development; and
                            ``(iii) to provide such other 
                        measures of program impact as the 
                        Secretary determines to be appropriate.
                    ``(B) Annual reports; termination.--
                            ``(i) Annual reports.--Each 
                        partnership receiving a grant under 
                        this subsection shall report annually 
                        to the Secretary on the partnership's 
                        progress toward attaining the 
                        achievement indicators.
                            ``(ii) Termination.--The Secretary 
                        may terminate a grant under this 
                        subsection at any time if the Secretary 
                        determines that the partnership 
                        receiving the grant is not making 
                        satisfactory progress toward attaining 
                        the achievement indicators.
            ``(7) Cost-sharing.--
                    ``(A) In general.--Each partnership 
                carrying out a project through a grant awarded 
                under this subsection shall provide, from 
                sources other than the program carried out 
                under this subsection, which may include 
                Federal sources--
                            ``(i) at least 50 percent of the 
                        total cost of the project for the grant 
                        period; and
                            ``(ii) at least 20 percent of the 
                        project cost for each year.
                    ``(B) Acceptable contributions.--A 
                partnership may meet the requirements of 
                subparagraph (A) by providing contributions in 
                cash or in kind, fairly evaluated, including 
                plant, equipment, and services.
                    ``(C) Waivers.--The Secretary may waive or 
                modify the requirements of subparagraph (A) for 
                partnerships in cases of demonstrated financial 
                hardship.
            ``(8) Federal coordination.--The Secretary and the 
        Secretary of Health and Human Services shall coordinate 
        activities carried out through programs under this 
        subsection with activities carried out through other 
        early childhood programs administered by the Secretary 
        or the Secretary of Health and Human Services.
            ``(9) Definitions.--In this subsection:
                    ``(A) Early childhood educator.--The term 
                `early childhood educator' means a person 
                providing, or employed by a provider of, 
                nonresidential child care services (including 
                center-based, family-based, and in-home child 
                care services) that is legally operating under 
                State law, and that complies with applicable 
                State and local requirements for the provision 
                of child care services to children at any age 
                from birth through the age at which a child may 
                start kindergarten in that State.
                    ``(B) High-need community.--
                            ``(i) In general.--The term `high-
                        need community' means--
                                    ``(I) a political 
                                subdivision of a State, or a 
                                portion of a political 
                                subdivision of a State, in 
                                which at least 50 percent of 
                                the children are from low-
                                income families; or
                                    ``(II) a political 
                                subdivision of a State that is 
                                among the 10 percent of 
                                political subdivisions of the 
                                State having the greatest 
                                numbers of such children.
                            ``(ii) Determination.--In 
                        determining which communities are 
                        described in clause (i), the Secretary 
                        shall use such data as the Secretary 
                        determines are most accurate and 
                        appropriate.
                    ``(C) Low-income family.--The term `low-
                income family' means a family with an income 
                below the poverty line for the most recent 
                fiscal year for which satisfactory data are 
                available.
    ``(f) Teacher Mobility.--
            ``(1) Establishment.--The Secretary is authorized 
        to establish a panel to be known as the National Panel 
        on Teacher Mobility (referred to in this subsection as 
        the `panel').
            ``(2) Membership.--The panel shall be composed of 
        12 members appointed by the Secretary. The Secretary 
        shall appoint the members from among practitioners and 
        experts with experience relating to teacher mobility, 
        such as teachers, members of teacher certification or 
        licensing bodies, faculty of institutions of higher 
        education that prepare teachers, and State policymakers 
        with such experience.
            ``(3) Period of appointment; vacancies.--Members 
        shall be appointed for the life of the panel. Any 
        vacancy in the panel shall not affect the powers of the 
        panel, but shall be filled in the same manner as the 
        original appointment.
            ``(4) Duties.--
                    ``(A) Study.--
                            ``(i) In general.--The panel shall 
                        study strategies for increasing 
                        mobility and employment opportunities 
                        for highly qualified teachers, 
                        especially for States with teacher 
                        shortages and States with school 
                        districts or schools that are difficult 
                        to staff.
                            ``(ii) Data and analysis.--As part 
                        of the study, the panel shall evaluate 
                        the desirability and feasibility of 
                        State initiatives that support teacher 
                        mobility by collecting data and 
                        conducting effective analysis 
                        concerning--
                                    ``(I) teacher supply and 
                                demand;
                                    ``(II) the development of 
                                recruitment and hiring 
                                strategies that support 
                                teachers; and
                                    ``(III) increasing 
                                reciprocity of certification 
                                and licensing across States.
                    ``(B) Report.--Not later than 1 year after 
                the date on which all members of the panel have 
                been appointed, the panel shall submit to the 
                Secretary and to the appropriate committees of 
                Congress a report containing the results of the 
                study.
            ``(5) Powers.--
                    ``(A) Hearings.--The panel may hold such 
                hearings, sit and act at such times and places, 
                take such testimony, and receive such evidence 
                as the panel considers advisable to carry out 
                the objectives of this subsection.
                    ``(B) Information from federal agencies.--
                The panel may secure directly from any Federal 
                department or agency such information as the 
                panel considers necessary to carry out the 
                provisions of this subsection. Upon request of 
                a majority of the members of the panel, the 
                head of such department or agency shall furnish 
                such information to the panel.
                    ``(C) Postal services.--The panel may use 
                the United States mails in the same manner and 
                under the same conditions as other departments 
                and agencies of the Federal Government.
            ``(6) Personnel.--
                    ``(A) Travel expenses.--The members of the 
                panel shall not receive compensation for the 
                performance of services for the panel, but 
                shall be allowed travel expenses, including per 
                diem in lieu of subsistence, at rates 
                authorized for employees of agencies under 
                subchapter I of chapter 57 of title 5, United 
                States Code, while away from their homes or 
                regular places of business in the performance 
                of services for the panel. Notwithstanding 
                section 1342 of title 31, United States Code, 
                the Secretary may accept the voluntary and 
                uncompensated services of members of the panel.
                    ``(B) Detail of government employees.--Any 
                Federal Government employee may be detailed to 
                the panel without reimbursement, and such 
                detail shall be without interruption or loss of 
                civil service status or privilege.
            ``(7) Permanent committee.--Section 14 of the 
        Federal Advisory Committee Act (5 U.S.C. App.) shall 
        not apply to the panel.

             ``PART B--MATHEMATICS AND SCIENCE PARTNERSHIPS

``SEC. 2201. PURPOSE; DEFINITIONS.

    ``(a) Purpose.--The purpose of this part is to improve the 
academic achievement of students in the areas of mathematics 
and science by encouraging State educational agencies, 
institutions of higher education, local educational agencies, 
elementary schools, and secondary schools to participate in 
programs that--
            ``(1) improve and upgrade the status and stature of 
        mathematics and science teaching by encouraging 
        institutions of higher education to assume greater 
        responsibility for improving mathematics and science 
        teacher education through the establishment of a 
        comprehensive, integrated system of recruiting, 
        training, and advising mathematics and science 
        teachers;
            ``(2) focus on the education of mathematics and 
        science teachers as a career-long process that 
        continuously stimulates teachers' intellectual growth 
        and upgrades teachers' knowledge and skills;
            ``(3) bring mathematics and science teachers in 
        elementary schools and secondary schools together with 
        scientists, mathematicians, and engineers to increase 
        the subject matter knowledge of mathematics and science 
        teachers and improve such teachers' teaching skills 
        through the use of sophisticated laboratory equipment 
        and work space, computing facilities, libraries, and 
        other resources that institutions of higher education 
        are better able to provide than the elementary schools 
        and secondary schools;
            ``(4) develop more rigorous mathematics and science 
        curricula that are aligned with challenging State and 
        local academic content standards and with the standards 
        expected for postsecondary study in engineering, 
        mathematics, and science; and
            ``(5) improve and expand training of mathematics 
        and science teachers, including training such teachers 
        in the effective integration of technology into 
        curricula and instruction.
    ``(b) Definitions.--In this part:
            ``(1) Eligible partnership.--The term `eligible 
        partnership' means a partnership that--
                    ``(A) shall include--
                            ``(i) if grants are awarded under 
                        section 2202(a)(1), a State educational 
                        agency;
                            ``(ii) an engineering, mathematics, 
                        or science department of an institution 
                        of higher education; and
                            ``(iii) a high-need local 
                        educational agency; and
                    ``(B) may include--
                            ``(i) another engineering, 
                        mathematics, science, or teacher 
                        training department of an institution 
                        of higher education;
                            ``(ii) additional local educational 
                        agencies, public charter schools, 
                        public or private elementary schools or 
                        secondary schools, or a consortium of 
                        such schools;
                            ``(iii) a business; or
                            ``(iv) a nonprofit or for-profit 
                        organization of demonstrated 
                        effectiveness in improving the quality 
                        of mathematics and science teachers.
            ``(2) Summer workshop or institute.--The term 
        `summer workshop or institute' means a workshop or 
        institute, conducted during the summer, that--
                    ``(A) is conducted for a period of not less 
                than 2 weeks;
                    ``(B) includes, as a component, a program 
                that provides direct interaction between 
                students and faculty; and
                    ``(C) provides for followup training during 
                the academic year that is conducted in the 
                classroom for a period of not less than 3 
                consecutive or nonconsecutive days, except 
                that--
                            ``(i) if the workshop or institute 
                        is conducted during a 2-week period, 
                        the followup training shall be 
                        conducted for a period of not less than 
                        4 days; and
                            ``(ii) if the followup training is 
                        for teachers in rural school districts, 
                        the followup training may be conducted 
                        through distance learning.

``SEC. 2202. GRANTS FOR MATHEMATICS AND SCIENCE PARTNERSHIPS.

    ``(a) Grants Authorized.--
            ``(1) Grants to partnerships.--For any fiscal year 
        for which the funds appropriated under section 2203 are 
        less than $100,000,000, the Secretary is authorized to 
        award grants, on a competitive basis, to eligible 
        partnerships to carry out the authorized activities 
        described in subsection (c).
            ``(2) Grants to state educational agencies.--
                    ``(A) In general.--For any fiscal year for 
                which the funds appropriated under section 2203 
                equal or exceed $100,000,000--
                            ``(i) if an eligible partnership in 
                        the State was previously awarded a 
                        grant under paragraph (1), and the 
                        grant period has not ended, the 
                        Secretary shall reserve funds in a 
                        sufficient amount to make payments to 
                        the partnership in accordance with the 
                        terms of the grant; and
                            ``(ii) the Secretary is authorized 
                        to award grants to State educational 
                        agencies to enable such agencies to 
                        award subgrants, on a competitive 
                        basis, to eligible partnerships to 
                        carry out the authorized activities 
                        described in subsection (c).
                    ``(B) Allotment.--The Secretary shall allot 
                the amount made available under this part for a 
                fiscal year and not reserved under subparagraph 
                (A)(i) among the State educational agencies in 
                proportion to the number of children, aged 5 to 
                17, who are from families with incomes below 
                the poverty line and reside in a State for the 
                most recent fiscal year for which satisfactory 
                data are available, as compared to the number 
                of such children who reside in all such States 
                for such year.
                    ``(C) Minimum allotment.--The amount of any 
                State educational agency's allotment under 
                subparagraph (B) for any fiscal year may not be 
                less than \1/2\ of 1 percent of the amount made 
                available under this part for such year.
            ``(3) Duration.--The Secretary shall award grants 
        under this part for a period of 3 years.
            ``(4) Supplement, not supplant.--Funds received 
        under this part shall be used to supplement, and not 
        supplant, funds that would otherwise be used for 
        activities authorized under this part.
    ``(b) Application Requirements.--
            ``(1) In general.--Each eligible partnership 
        desiring a grant or subgrant under this part shall 
        submit an application--
                    ``(A) in the case of grants awarded 
                pursuant to subsection (a)(1), to the 
                Secretary, at such time, in such manner, and 
                accompanied by such information as the 
                Secretary may require; or
                    ``(B) in the case of subgrants awarded 
                pursuant to subsection (a)(2), to the State 
                educational agency, at such time, in such 
                manner, and accompanied by such information as 
                the State educational agency may require.
            ``(2) Contents.--Each application submitted 
        pursuant to paragraph (1) shall include--
                    ``(A) the results of a comprehensive 
                assessment of the teacher quality and 
                professional development needs of any schools, 
                local educational agencies, and State 
                educational agencies that comprise the eligible 
                partnership with respect to the teaching and 
                learning of mathematics and science;
                    ``(B) a description of how the activities 
                to be carried out by the eligible partnership 
                will be aligned with challenging State academic 
                content and student academic achievement 
                standards in mathematics and science and with 
                other educational reform activities that 
                promote student academic achievement in 
                mathematics and science;
                    ``(C) a description of how the activities 
                to be carried out by the eligible partnership 
                will be based on a review of scientifically 
                based research, and an explanation of how the 
                activities are expected to improve student 
                academic achievement and strengthen the quality 
                of mathematics and science instruction;
                    ``(D) a description of--
                            ``(i) how the eligible partnership 
                        will carry out the authorized 
                        activities described in subsection (c); 
                        and
                            ``(ii) the eligible partnership's 
                        evaluation and accountability plan 
                        described in subsection (e); and
                    ``(E) a description of how the eligible 
                partnership will continue the activities funded 
                under this part after the original grant or 
                subgrant period has expired.
    ``(c) Authorized Activities.--An eligible partnership shall 
use funds provided under this part for one or more of the 
following activities related to elementary schools or secondary 
schools:
            ``(1) Creating opportunities for enhanced and 
        ongoing professional development of mathematics and 
        science teachers that improves the subject matter 
        knowledge of such teachers.
            ``(2) Promoting strong teaching skills for 
        mathematics and science teachers and teacher educators, 
        including integrating reliable scientifically based 
        research teaching methods and technology-based teaching 
        methods into the curriculum.
            ``(3) Establishing and operating mathematics and 
        science summer workshops or institutes, including 
        followup training, for elementary school and secondary 
        school mathematics and science teachers that--
                    ``(A) shall--
                            ``(i) directly relate to the 
                        curriculum and academic areas in which 
                        the teacher provides instruction, and 
                        focus only secondarily on pedagogy;
                            ``(ii) enhance the ability of the 
                        teacher to understand and use the 
                        challenging State academic content 
                        standards for mathematics and science 
                        and to select appropriate curricula; 
                        and
                            ``(iii) train teachers to use 
                        curricula that are--
                                    ``(I) based on scientific 
                                research;
                                    ``(II) aligned with 
                                challenging State academic 
                                content standards; and
                                    ``(III) object-centered, 
                                experiment-oriented, and 
                                concept- and content-based; and
                    ``(B) may include--
                            ``(i) programs that provide 
                        teachers and prospective teachers with 
                        opportunities to work under the 
                        guidance of experienced teachers and 
                        college faculty;
                            ``(ii) instruction in the use of 
                        data and assessments to inform and 
                        instruct classroom practice; and
                            ``(iii) professional development 
                        activities, including supplemental and 
                        followup activities, such as curriculum 
                        alignment, distance learning, and 
                        activities that train teachers to 
                        utilize technology in the classroom.
            ``(4) Recruiting mathematics, engineering, and 
        science majors to teaching through the use of--
                    ``(A) signing and performance incentives 
                that are linked to activities proven effective 
                in retaining teachers, for individuals with 
                demonstrated professional experience in 
                mathematics, engineering, or science;
                    ``(B) stipends provided to mathematics and 
                science teachers for certification through 
                alternative routes;
                    ``(C) scholarships for teachers to pursue 
                advanced course work in mathematics, 
                engineering, or science; and
                    ``(D) other programs that the State 
                educational agency determines to be effective 
                in recruiting and retaining individuals with 
                strong mathematics, engineering, or science 
                backgrounds.
            ``(5) Developing or redesigning more rigorous 
        mathematics and science curricula that are aligned with 
        challenging State and local academic content standards 
        and with the standards expected for postsecondary study 
        in mathematics and science.
            ``(6) Establishing distance learning programs for 
        mathematics and science teachers using curricula that 
        are innovative, content-based, and based on 
        scientifically based research that is current as of the 
        date of the program involved.
            ``(7) Designing programs to prepare a mathematics 
        or science teacher at a school to provide professional 
        development to other mathematics or science teachers at 
        the school and to assist beginning and other teachers 
        at the school, including (if applicable) a mechanism to 
        integrate the teacher's experiences from a summer 
        workshop or institute into the provision of 
        professional development and assistance.
            ``(8) Establishing and operating programs to bring 
        mathematics and science teachers into contact with 
        working scientists, mathematicians, and engineers, to 
        expand such teachers' subject matter knowledge of and 
        research in science and mathematics.
            ``(9) Designing programs to identify and develop 
        exemplary mathematics and science teachers in the 
        kindergarten through grade 8 classrooms.
            ``(10) Training mathematics and science teachers 
        and developing programs to encourage young women and 
        other underrepresented individuals in mathematics and 
        science careers (including engineering and technology) 
        to pursue postsecondary degrees in majors leading to 
        such careers.
    ``(d) Coordination and Consultation.--
            ``(1) Partnership grants.--An eligible partnership 
        receiving a grant under section 203 of the Higher 
        Education Act of 1965 shall coordinate the use of such 
        funds with any related activities carried out by such 
        partnership with funds made available under this part.
            ``(2) National science foundation.--In carrying out 
        the activities authorized by this part, the Secretary 
        shall consult and coordinate with the Director of the 
        National Science Foundation, particularly with respect 
        to the appropriate roles for the Department and the 
        Foundation in the conduct of summer workshops, 
        institutes, or partnerships to improve mathematics and 
        science teaching in elementary schools and secondary 
        schools.
    ``(e) Evaluation and Accountability Plan.--
            ``(1) In general.--Each eligible partnership 
        receiving a grant or subgrant under this part shall 
        develop an evaluation and accountability plan for 
        activities assisted under this part that includes 
        rigorous objectives that measure the impact of 
        activities funded under this part.
            ``(2) Contents.--The plan developed pursuant to 
        paragraph (1)--
                    ``(A) shall include measurable objectives 
                to increase the number of mathematics and 
                science teachers who participate in content-
                based professional development activities;
                    ``(B) shall include measurable objectives 
                for improved student academic achievement on 
                State mathematics and science assessments or, 
                where applicable, an International Mathematics 
                and Science Study assessment; and
                    ``(C) may include objectives and measures 
                for--
                            ``(i) increased participation by 
                        students in advanced courses in 
                        mathematics and science;
                            ``(ii) increased percentages of 
                        elementary school teachers with 
                        academic majors or minors, or group 
                        majors or minors, in mathematics, 
                        engineering, or the sciences; and
                            ``(iii) increased percentages of 
                        secondary school classes in mathematics 
                        and science taught by teachers with 
                        academic majors in mathematics, 
                        engineering, and science.
    ``(f) Report.--Each eligible partnership receiving a grant 
or subgrant under this part shall report annually to the 
Secretary regarding the eligible partnership's progress in 
meeting the objectives described in the accountability plan of 
the partnership under subsection (e).

``SEC. 2203. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
part $450,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 5 succeeding fiscal years.

                ``PART C--INNOVATION FOR TEACHER QUALITY

                  ``Subpart 1--Transitions to Teaching

                ``CHAPTER A--TROOPS-TO-TEACHERS PROGRAM

``SEC. 2301. DEFINITIONS.

    ``In this chapter:
            ``(1) Armed forces.--The term `Armed Forces' means 
        the Army, Navy, Air Force, Marine Corps, and Coast 
        Guard.
            ``(2) Member of the armed forces.--The term `member 
        of the Armed Forces' includes a former member of the 
        Armed Forces.
            ``(3) Program.--The term `Program' means the 
        Troops-to-Teachers Program authorized by this chapter.
            ``(4) Reserve component.--The term `reserve 
        component' means--
                    ``(A) the Army National Guard of the United 
                States;
                    ``(B) the Army Reserve;
                    ``(C) the Naval Reserve;
                    ``(D) the Marine Corps Reserve;
                    ``(E) the Air National Guard of the United 
                States;
                    ``(F) the Air Force Reserve; and
                    ``(G) the Coast Guard Reserve.
            ``(5) Secretary concerned.--The term `Secretary 
        concerned' means--
                    ``(A) the Secretary of the Army, with 
                respect to matters concerning a reserve 
                component of the Army;
                    ``(B) the Secretary of the Navy, with 
                respect to matters concerning reserve 
                components named in subparagraphs (C) and (D) 
                of paragraph (4);
                    ``(C) the Secretary of the Air Force, with 
                respect to matters concerning a reserve 
                component of the Air Force; and
                    ``(D) the Secretary of Transportation, with 
                respect to matters concerning the Coast Guard 
                Reserve.

``SEC. 2302. AUTHORIZATION OF TROOPS-TO-TEACHERS PROGRAM.

    ``(a) Purpose.--The purpose of this section is to authorize 
a mechanism for the funding and administration of the Troops-
to-Teachers Program, which was originally established by the 
Troops-to-Teachers Program Act of 1999 (title XVII of the 
National Defense Authorization Act for Fiscal Year 2000) (20 
U.S.C. 9301 et seq.).
    ``(b) Program Authorized.--The Secretary may carry out a 
program (to be known as the `Troops-to-Teachers Program')--
            ``(1) to assist eligible members of the Armed 
        Forces described in section 2303 to obtain 
        certification or licensing as elementary school 
        teachers, secondary school teachers, or vocational or 
        technical teachers, and to become highly qualified 
        teachers; and
            ``(2) to facilitate the employment of such 
        members--
                    ``(A) by local educational agencies or 
                public charter schools that the Secretary 
                identifies as--
                            ``(i) receiving grants under part A 
                        of title I as a result of having within 
                        their jurisdictions concentrations of 
                        children from low-income families; or
                            ``(ii) experiencing a shortage of 
                        highly qualified teachers, in 
                        particular a shortage of science, 
                        mathematics, special education, or 
                        vocational or technical teachers; and
                    ``(B) in elementary schools or secondary 
                schools, or as vocational or technical 
                teachers.
    ``(c) Administration of Program.--The Secretary shall enter 
into a memorandum of agreement with the Secretary of Defense 
under which the Secretary of Defense, acting through the 
Defense Activity for Non-Traditional Education Support of the 
Department of Defense, will perform the actual administration 
of the Program, other than section 2306. Using funds 
appropriated to the Secretary to carry out this chapter, the 
Secretary shall transfer to the Secretary of Defense such 
amounts as may be necessary to administer the Program pursuant 
to the memorandum of agreement.
    ``(d) Information Regarding Program.--The Secretary shall 
provide to the Secretary of Defense information regarding the 
Program and applications to participate in the Program, for 
distribution as part of preseparation counseling provided under 
section 1142 of title 10, United States Code, to members of the 
Armed Forces described in section 2303.
    ``(e) Placement Assistance and Referral Services.--The 
Secretary may, with the agreement of the Secretary of Defense, 
provide placement assistance and referral services to members 
of the Armed Forces who meet the criteria described in section 
2303, including meeting education qualification requirements 
under subsection 2303(c)(2). Such members shall not be eligible 
for financial assistance under subsections (c) and (d) of 
section 2304.

``SEC. 2303. RECRUITMENT AND SELECTION OF PROGRAM PARTICIPANTS.

    ``(a) Eligible Members.--The following members of the Armed 
Forces are eligible for selection to participate in the 
Program:
            ``(1) Any member who--
                    ``(A) on or after October 1, 1999, becomes 
                entitled to retired or retainer pay in the 
                manner provided in title 10 or title 14, United 
                States Code;
                    ``(B) has an approved date of retirement 
                that is within 1 year after the date on which 
                the member submits an application to 
                participate in the Program; or
                    ``(C) has been transferred to the Retired 
                Reserve.
            ``(2) Any member who, on or after the date of 
        enactment of the No Child Left Behind Act of 2001--
                    ``(A)(i) is separated or released from 
                active duty after 6 or more years of continuous 
                active duty immediately before the separation 
                or release; or
                    ``(ii) has completed a total of at least 10 
                years of active duty service, 10 years of 
                service computed under section 12732 of title 
                10, United States Code, or 10 years of any 
                combination of such service; and
                    ``(B) executes a reserve commitment 
                agreement for a period of not less than 3 years 
                under subsection (e)(2).
            ``(3) Any member who, on or after the date of 
        enactment of the No Child Left Behind Act of 2001, is 
        retired or separated for physical disability under 
        chapter 61 of title 10, United States Code.
            ``(4) Any member who--
                    ``(A) during the period beginning on 
                October 1, 1990, and ending on September 30, 
                1999, was involuntarily discharged or released 
                from active duty for purposes of a reduction of 
                force after 6 or more years of continuous 
                active duty immediately before the discharge or 
                release; or
                    ``(B) applied for the teacher placement 
                program administered under section 1151 of 
                title 10, United States Code, before the repeal 
                of that section, and satisfied the eligibility 
                criteria specified in subsection (c) of such 
                section 1151.
    ``(b) Submission of Applications.--
            ``(1) Form and submission.--Selection of eligible 
        members of the Armed Forces to participate in the 
        Program shall be made on the basis of applications 
        submitted to the Secretary within the time periods 
        specified in paragraph (2). An application shall be in 
        such form and contain such information as the Secretary 
        may require.
            ``(2) Time for submission.--An application shall be 
        considered to be submitted on a timely basis under 
        paragraph (1) if--
                    ``(A) in the case of a member described in 
                paragraph (1)(A), (2), or (3) of subsection 
                (a), the application is submitted not later 
                than 4 years after the date on which the member 
                is retired or separated or released from active 
                duty, whichever applies to the member; or
                    ``(B) in the case of a member described in 
                subsection (a)(4), the application is submitted 
                not later than September 30, 2003.
    ``(c) Selection Criteria.--
            ``(1) Establishment.--Subject to paragraphs (2) and 
        (3), the Secretary shall prescribe the criteria to be 
        used to select eligible members of the Armed Forces to 
        participate in the Program.
            ``(2) Educational background.--
                    ``(A) Elementary or secondary school 
                teacher.--If a member of the Armed Forces 
                described in paragraph (1), (2), or (3) of 
                subsection (a) is applying for assistance for 
                placement as an elementary school or secondary 
                school teacher, the Secretary shall require the 
                member to have received a baccalaureate or 
                advanced degree from an accredited institution 
                of higher education.
                    ``(B) Vocational or technical teacher.--If 
                a member of the Armed Forces described in 
                paragraph (1), (2), or (3) of subsection (a) is 
                applying for assistance for placement as a 
                vocational or technical teacher, the Secretary 
                shall require the member--
                            ``(i) to have received the 
                        equivalent of 1 year of college from an 
                        accredited institution of higher 
                        education and have 6 or more years of 
                        military experience in a vocational or 
                        technical field; or
                            ``(ii) to otherwise meet the 
                        certification or licensing requirements 
                        for a vocational or technical teacher 
                        in the State in which the member seeks 
                        assistance for placement under the 
                        Program.
            ``(3) Honorable service.--A member of the Armed 
        Forces is eligible to participate in the Program only 
        if the member's last period of service in the Armed 
        Forces was honorable, as characterized by the Secretary 
        concerned (as defined in section 101(a)(9) of title 10, 
        United States Code). A member selected to participate 
        in the Program before the retirement of the member or 
        the separation or release of the member from active 
        duty may continue to participate in the Program after 
        the retirement, separation, or release only if the 
        member's last period of service is characterized as 
        honorable by the Secretary concerned (as so defined).
    ``(d) Selection Priorities.--In selecting eligible members 
of the Armed Forces to receive assistance under the Program, 
the Secretary shall give priority to members who have 
educational or military experience in science, mathematics, 
special education, or vocational or technical subjects and 
agree to seek employment as science, mathematics, or special 
education teachers in elementary schools or secondary schools 
or in other schools under the jurisdiction of a local 
educational agency.
    ``(e) Other Conditions on Selection.--
            ``(1) Selection subject to funding.--The Secretary 
        may not select an eligible member of the Armed Forces 
        to participate in the Program under this section and 
        receive financial assistance under section 2304 unless 
        the Secretary has sufficient appropriations for the 
        Program available at the time of the selection to 
        satisfy the obligations to be incurred by the United 
        States under section 2304 with respect to the member.
            ``(2) Reserve commitment agreement.--The Secretary 
        may not select an eligible member of the Armed Forces 
        described in subsection (a)(2)(A) to participate in the 
        Program under this section and receive financial 
        assistance under section 2304 unless--
                    ``(A) the Secretary notifies the Secretary 
                concerned and the member that the Secretary has 
                reserved a full stipend or bonus under section 
                2304 for the member; and
                    ``(B) the member executes a written 
                agreement with the Secretary concerned to serve 
                as a member of the Selected Reserve of a 
                reserve component of the Armed Forces for a 
                period of not less than 3 years (in addition to 
                any other reserve commitment the member may 
                have).

``SEC. 2304. PARTICIPATION AGREEMENT AND FINANCIAL ASSISTANCE.

    ``(a) Participation Agreement.--
            ``(1) In general.--An eligible member of the Armed 
        Forces selected to participate in the Program under 
        section 2303 and receive financial assistance under 
        this section shall be required to enter into an 
        agreement with the Secretary in which the member 
        agrees--
                    ``(A) within such time as the Secretary may 
                require, to obtain certification or licensing 
                as an elementary school teacher, secondary 
                school teacher, or vocational or technical 
                teacher, and to become a highly qualified 
                teacher; and
                    ``(B) to accept an offer of full-time 
                employment as an elementary school teacher, 
                secondary school teacher, or vocational or 
                technical teacher for not less than 3 school 
                years with a high-need local educational agency 
                or public charter school, as such terms are 
                defined in section 2101, to begin the school 
                year after obtaining that certification or 
                licensing.
            ``(2) Waiver.--The Secretary may waive the 3-year 
        commitment described in paragraph (1)(B) for a 
        participant if the Secretary determines such waiver to 
        be appropriate. If the Secretary provides the waiver, 
        the participant shall not be considered to be in 
        violation of the agreement and shall not be required to 
        provide reimbursement under subsection (f), for failure 
        to meet the 3-year commitment.
    ``(b) Violation of Participation Agreement; Exceptions.--A 
participant in the Program shall not be considered to be in 
violation of the participation agreement entered into under 
subsection (a) during any period in which the participant--
            ``(1) is pursuing a full-time course of study 
        related to the field of teaching at an institution of 
        higher education;
            ``(2) is serving on active duty as a member of the 
        Armed Forces;
            ``(3) is temporarily totally disabled for a period 
        of time not to exceed 3 years as established by sworn 
        affidavit of a qualified physician;
            ``(4) is unable to secure employment for a period 
        not to exceed 12 months by reason of the care required 
        by a spouse who is disabled;
            ``(5) is a highly qualified teacher who is seeking 
        and unable to find full-time employment as a teacher in 
        an elementary school or secondary school or as a 
        vocational or technical teacher for a single period not 
        to exceed 27 months; or
            ``(6) satisfies the provisions of additional 
        reimbursement exceptions that may be prescribed by the 
        Secretary.
    ``(c) Stipend for Participants.--
            ``(1) Stipend authorized.--Subject to paragraph 
        (2), the Secretary may pay to a participant in the 
        Program selected under section 2303 a stipend in an 
        amount of not more than $5,000.
            ``(2) Limitation.--The total number of stipends 
        that may be paid under paragraph (1) in any fiscal year 
        may not exceed 5,000.
    ``(d) Bonus for Participants.--
            ``(1) Bonus authorized.--Subject to paragraph (2), 
        the Secretary may, in lieu of paying a stipend under 
        subsection (c), pay a bonus of $10,000 to a participant 
        in the Program selected under section 2303 who agrees 
        in the participation agreement under subsection (a) to 
        become a highly qualified teacher and to accept full-
        time employment as an elementary school teacher, 
        secondary school teacher, or vocational or technical 
        teacher for not less than 3 school years in a high-need 
        school.
            ``(2) Limitation.--The total number of bonuses that 
        may be paid under paragraph (1) in any fiscal year may 
        not exceed 3,000.
            ``(3) High-need school defined.--In this 
        subsection, the term `high-need school' means a public 
        elementary school, public secondary school, or public 
        charter school that meets one or more of the following 
        criteria:
                    ``(A) Low-income children.--At least 50 
                percent of the students enrolled in the school 
                were from low-income families (as described in 
                section 2302(b)(2)(A)(i)).
                    ``(B) Children with disabilities.--The 
                school has a large percentage of students who 
                qualify for assistance under part B of the 
                Individuals with Disabilities Education Act.
    ``(e) Treatment of Stipend and Bonus.--A stipend or bonus 
paid under this section to a participant in the Program shall 
be taken into account in determining the eligibility of the 
participant for Federal student financial assistance provided 
under title IV of the Higher Education Act of 1965.
    ``(f) Reimbursement Under Certain Circumstances.--
            ``(1) Reimbursement required.--A participant in the 
        Program who is paid a stipend or bonus under this 
        section shall be required to repay the stipend or bonus 
        under the following circumstances:
                    ``(A) Failure to obtain qualifications or 
                employment.--The participant fails to obtain 
                teacher certification or licensing, to become a 
                highly qualified teacher, or to obtain 
                employment as an elementary school teacher, 
                secondary school teacher, or vocational or 
                technical teacher as required by the 
                participation agreement under subsection (a).
                    ``(B) Termination of employment.--The 
                participant voluntarily leaves, or is 
                terminated for cause from, employment as an 
                elementary school teacher, secondary school 
                teacher, or vocational or technical teacher 
                during the 3 years of required service in 
                violation of the participation agreement.
                    ``(C) Failure to complete service under 
                reserve commitment agreement.--The participant 
                executed a written agreement with the Secretary 
                concerned under section 2303(e)(2) to serve as 
                a member of a reserve component of the Armed 
                Forces for a period of 3 years and fails to 
                complete the required term of service.
            ``(2) Amount of reimbursement.--A participant 
        required to reimburse the Secretary for a stipend or 
        bonus paid to the participant under this section shall 
        pay an amount that bears the same ratio to the amount 
        of the stipend or bonus as the unserved portion of 
        required service bears to the 3 years of required 
        service. Any amount owed by the participant shall bear 
        interest at the rate equal to the highest rate being 
        paid by the United States on the day on which the 
        reimbursement is determined to be due for securities 
        having maturities of 90 days or less and shall accrue 
        from the day on which the participant is first notified 
        of the amount due.
            ``(3) Treatment of obligation.--The obligation to 
        reimburse the Secretary under this subsection is, for 
        all purposes, a debt owing the United States. A 
        discharge in bankruptcy under title 11, United States 
        Code, shall not release a participant from the 
        obligation to reimburse the Secretary under this 
        subsection.
            ``(4) Exceptions to reimbursement requirement.--A 
        participant shall be excused from reimbursement under 
        this subsection if the participant becomes permanently 
        totally disabled as established by sworn affidavit of a 
        qualified physician. The Secretary may also waive the 
        reimbursement in cases of extreme hardship to the 
        participant, as determined by the Secretary.
    ``(g) Relationship to Educational Assistance Under 
Montgomery GI Bill.--The receipt by a participant in the 
Program of a stipend or bonus under this section shall not 
reduce or otherwise affect the entitlement of the participant 
to any benefits under chapter 30 of title 38, United States 
Code, or chapter 1606 of title 10, United States Code.

``SEC. 2305. PARTICIPATION BY STATES.

    ``(a) Discharge of State Activities Through Consortia of 
States.--The Secretary may permit States participating in the 
Program to carry out activities authorized for such States 
under the Program through one or more consortia of such States.
    ``(b) Assistance to States.--
            ``(1) Grants authorized.--Subject to paragraph (2), 
        the Secretary may make grants to States participating 
        in the Program, or to consortia of such States, in 
        order to permit such States or consortia of States to 
        operate offices for purposes of recruiting eligible 
        members of the Armed Forces for participation in the 
        Program and facilitating the employment of participants 
        in the Program as elementary school teachers, secondary 
        school teachers, and vocational or technical teachers.
            ``(2) Limitation.--The total amount of grants made 
        under paragraph (1) in any fiscal year may not exceed 
        $5,000,000.

``SEC. 2306. SUPPORT OF INNOVATIVE PRERETIREMENT TEACHER CERTIFICATION 
                    PROGRAMS.

    ``(a) Purpose.--The purpose of this section is to provide 
funding to develop, implement, and demonstrate teacher 
certification programs.
    ``(b) Development, Implementation and Demonstration.--The 
Secretary may enter into a memorandum of agreement with a State 
educational agency, an institution of higher education, or a 
consortia of State educational agencies or institutions of 
higher education, to develop, implement, and demonstrate 
teacher certification programs for members of the Armed Forces 
described in section 2303(a)(1)(B) for the purpose of assisting 
such members to consider and prepare for a career as a highly 
qualified elementary school teacher, secondary school teacher, 
or vocational or technical teacher upon retirement from the 
Armed Forces.
    ``(c) Program Elements.--A teacher certification program 
under subsection (b) shall--
            ``(1) provide recognition of military experience 
        and training as related to certification or licensing 
        requirements;
            ``(2) provide courses of instruction that may be 
        conducted on or near a military installation;
            ``(3) incorporate alternative approaches to achieve 
        teacher certification, such as innovative methods to 
        gaining field-based teaching experiences, and 
        assessment of background and experience as related to 
        skills, knowledge, and abilities required of elementary 
        school teachers, secondary school teachers, or 
        vocational or technical teachers;
            ``(4) provide for courses to be delivered via 
        distance education methods; and
            ``(5) address any additional requirements or 
        specifications established by the Secretary.
    ``(d) Application Procedures.--
            ``(1) In general.--A State educational agencies or 
        institution of higher education (or a consortium of 
        State educational agencies or institutions of higher 
        education) that desires to enter into a memorandum 
        under subsection (b) shall prepare and submit to the 
        Secretary a proposal, at such time, in such manner, and 
        containing such information as the Secretary may 
        require, including an assurance that the State 
        educational agency, institution, or consortium is 
        operating a program leading to State approved teacher 
        certification.
            ``(2) Preference.--The Secretary shall give 
        preference to State educational agencies, institutions, 
        and consortia that submit proposals that provide for 
        cost sharing with respect to the program involved.
    ``(e) Continuation of Programs.--Upon successful completion 
of the demonstration phase of teacher certification programs 
funded under this section, the continued operation of the 
teacher certification programs shall not be the responsibility 
of the Secretary. A State educational agency, institution, or 
consortium that desires to continue a program that is funded 
under this section after such funding is terminated shall use 
amounts derived from tuition charges to continue such program.
    ``(f) Funding Limitation.--The total amount obligated by 
the Secretary under this section for any fiscal year may not 
exceed $10,000,000.

``SEC. 2307. REPORTING REQUIREMENTS.

    ``(a) Report Required.--Not later than March 31, 2006, the 
Secretary (in consultation with the Secretary of Defense and 
the Secretary of Transportation) and the Comptroller General of 
the United States shall submit to Congress a report on the 
effectiveness of the Program in the recruitment and retention 
of qualified personnel by local educational agencies and public 
charter schools.
    ``(b) Elements of Report.--The report submitted under 
subsection (a) shall include information on the following:
            ``(1) The number of participants in the Program.
            ``(2) The schools in which the participants are 
        employed.
            ``(3) The grade levels at which the participants 
        teach.
            ``(4) The academic subjects taught by the 
        participants.
            ``(5) The rates of retention of the participants by 
        the local educational agencies and public charter 
        schools employing the participants.
            ``(6) Such other matters as the Secretary or the 
        Comptroller General of the United States, as the case 
        may be, considers to be appropriate.

              ``CHAPTER B--TRANSITION TO TEACHING PROGRAM

``SEC. 2311. PURPOSES.

    ``The purposes of this chapter are--
            ``(1) to establish a program to recruit and retain 
        highly qualified mid-career professionals (including 
        highly qualified paraprofessionals), and recent 
        graduates of an institution of higher education, as 
        teachers in high-need schools, including recruiting 
        teachers through alternative routes to certification; 
        and
            ``(2) to encourage the development and expansion of 
        alternative routes to certification under State-
        approved programs that enable individuals to be 
        eligible for teacher certification within a reduced 
        period of time, relying on the experience, expertise, 
        and academic qualifications of an individual, or other 
        factors in lieu of traditional course work in the field 
        of education.

``SEC. 2312. DEFINITIONS.

    ``In this chapter:
            ``(1) Eligible participant.--The term `eligible 
        participant' means--
                    ``(A) an individual with substantial, 
                demonstrable career experience, including a 
                highly qualified paraprofessional; or
                    ``(B) an individual who is a graduate of an 
                institution of higher education who--
                            ``(i) has graduated not more than 3 
                        years before applying to an eligible 
                        entity to teach under this chapter; and
                            ``(ii) in the case of an individual 
                        wishing to teach in a secondary school, 
                        has completed an academic major (or 
                        courses totaling an equivalent number 
                        of credit hours) in the academic 
                        subject that the individual will teach.
            ``(2) High-need local educational agency.--The term 
        `high-need local educational agency' has the meaning 
        given the term in section 2102.
            ``(3) High-need school.--The term `high-need 
        school' means a school that--
                    ``(A) is located in an area in which the 
                percentage of students from families with 
                incomes below the poverty line is 30 percent or 
                more; or
                    ``(B)(i) is located in an area with a high 
                percentage of out-of-field teachers, as defined 
                in section 2102;
                    ``(ii) is within the top quartile of 
                elementary schools and secondary schools 
                statewide, as ranked by the number of unfilled, 
                available teacher positions at the schools;
                    ``(iii) is located in an area in which 
                there is a high teacher turnover rate; or
                    ``(iv) is located in an area in which there 
                is a high percentage of teachers who are not 
                certified or licensed.

``SEC. 2313. GRANT PROGRAM.

    ``(a) In General.--The Secretary may establish a program to 
make grants on a competitive basis to eligible entities to 
develop State and local teacher corps or other programs to 
establish, expand, or enhance teacher recruitment and retention 
efforts.
    ``(b) Eligible Entity.--To be eligible to receive a grant 
under this section, an entity shall be--
            ``(1) a State educational agency;
            ``(2) a high-need local educational agency;
            ``(3) a for-profit or nonprofit organization that 
        has a proven record of effectively recruiting and 
        retaining highly qualified teachers, in a partnership 
        with a high-need local educational agency or with a 
        State educational agency;
            ``(4) an institution of higher education, in a 
        partnership with a high-need local educational agency 
        or with a State educational agency;
            ``(5) a regional consortium of State educational 
        agencies; or
            ``(6) a consortium of high-need local educational 
        agencies.
    ``(c) Priority.--In making such a grant, the Secretary 
shall give priority to a partnership or consortium that 
includes a high-need State educational agency or local 
educational agency.
    ``(d) Application.--
            ``(1) In general.--To be eligible to receive a 
        grant under this section, an entity described in 
        subsection (b) shall submit an application to the 
        Secretary at such time, in such manner, and containing 
        such information as the Secretary may require.
            ``(2) Contents.--The application shall describe--
                    ``(A) one or more target recruitment groups 
                on which the applicant will focus its 
                recruitment efforts;
                    ``(B) the characteristics of each such 
                target group that--
                            ``(i) show the knowledge and 
                        experience of the group's members; and
                            ``(ii) demonstrate that the members 
                        are eligible to achieve the objectives 
                        of this section;
                    ``(C) describe how the applicant will use 
                funds received under this section to develop a 
                teacher corps or other program to recruit and 
                retain highly qualified midcareer professionals 
                (which may include highly qualified 
                paraprofessionals), recent college graduates, 
                and recent graduate school graduates, as highly 
                qualified teachers in high-need schools 
                operated by high-need local educational 
                agencies;
                    ``(D) explain how the program carried out 
                under the grant will meet the relevant State 
                laws (including regulations) related to teacher 
                certification or licensing and facilitate the 
                certification or licensing of such teachers;
                    ``(E) describe how the grant will increase 
                the number of highly qualified teachers, in 
                high-need schools operated by high-need local 
                educational agencies (in urban or rural school 
                districts), and in high-need academic subjects, 
                in the jurisdiction served by the applicant; 
                and
                    ``(F) describe how the applicant will 
                collaborate, as needed, with other 
                institutions, agencies, or organizations to 
                recruit (particularly through activities that 
                have proven effective in retaining highly 
                qualified teachers), train, place, support, and 
                provide teacher induction programs to program 
                participants under this chapter, including 
                providing evidence of the commitment of the 
                institutions, agencies, or organizations to the 
                applicant's programs.
    ``(e) Duration of Grants.--The Secretary may make grants 
under this section for periods of 5 years. At the end of the 5-
year period for such a grant, the grant recipient may apply for 
an additional grant under this section.
    ``(f) Equitable Distribution.--To the extent practicable, 
the Secretary shall ensure an equitable geographic distribution 
of grants under this section among the regions of the United 
States.
    ``(g) Uses of Funds.--
            ``(1) In general.--An entity that receives a grant 
        under this section shall use the funds made available 
        through the grant to develop a teacher corps or other 
        program in order to establish, expand, or enhance a 
        teacher recruitment and retention program for highly 
        qualified mid-career professionals (including highly 
        qualified paraprofessionals), and recent graduates of 
        an institution of higher education, who are eligible 
        participants, including activities that provide 
        alternative routes to teacher certification.
            ``(2) Authorized activities.--The entity shall use 
        the funds to carry out a program that includes two or 
        more of the following activities:
                    ``(A) Providing scholarships, stipends, 
                bonuses, and other financial incentives, that 
                are linked to participation in activities that 
                have proven effective in retaining teachers in 
                high-need schools operated by high-need local 
                educational agencies, to all eligible 
                participants, in an amount not to exceed $5,000 
                per participant.
                    ``(B) Carrying out pre- and post-placement 
                induction or support activities that have 
                proven effective in recruiting and retaining 
                teachers, such as--
                            ``(i) teacher mentoring;
                            ``(ii) providing internships;
                            ``(iii) providing high-quality, 
                        preservice coursework; and
                            ``(iv) providing high-quality, 
                        sustained inservice professional 
                        development.
                    ``(C) Carrying out placement and ongoing 
                activities to ensure that teachers are placed 
                in fields in which the teachers are highly 
                qualified to teach and are placed in high-need 
                schools.
                    ``(D) Making payments to pay for costs 
                associated with accepting teachers recruited 
                under this section from among eligible 
                participants or provide financial incentives to 
                prospective teachers who are eligible 
                participants.
                    ``(E) Collaborating with institutions of 
                higher education in developing and implementing 
                programs to facilitate teacher recruitment 
                (including teacher credentialing) and teacher 
                retention programs.
                    ``(F) Carrying out other programs, 
                projects, and activities that are designed and 
                have proven to be effective in recruiting and 
                retaining teachers, and that the Secretary 
                determines to be appropriate.
                    ``(G) Developing long-term recruitment and 
                retention strategies including developing--
                            ``(i) a statewide or regionwide 
                        clearinghouse for the recruitment and 
                        placement of teachers;
                            ``(ii) administrative structures to 
                        develop and implement programs to 
                        provide alternative routes to 
                        certification;
                            ``(iii) reciprocity agreements 
                        between or among States for the 
                        certification or licensing of teachers; 
                        or
                            ``(iv) other long-term teacher 
                        recruitment and retention strategies.
            ``(3) Effective programs.--The entity shall use the 
        funds only for programs that have proven to be 
        effective in both recruiting and retaining teachers.
    ``(h) Requirements.--
            ``(1) Targeting.--An entity that receives a grant 
        under this section to carry out a program shall ensure 
        that participants in the program recruited with funds 
        made available under this section are placed in high-
        need schools operated by high-need local educational 
        agencies. In placing the participants in the schools, 
        the entity shall give priority to the schools that are 
        located in areas with the highest percentages of 
        students from families with incomes below the poverty 
        line.
            ``(2) Supplement, not supplant.--Funds made 
        available under this section shall be used to 
        supplement, and not supplant, State and local public 
        funds expended for teacher recruitment and retention 
        programs, including programs to recruit the teachers 
        through alternative routes to certification.
            ``(3) Partnerships and consortia of local 
        educational agencies.--In the case of a partnership 
        established by a local educational agency to carry out 
        a program under this chapter, or a consortium of such 
        agencies established to carry out a program under this 
        chapter, the local educational agency or consortium 
        shall not be eligible to receive funds through a State 
        program under this chapter.
    ``(i) Period of Service.--A program participant in a 
program under this chapter who receives training through the 
program shall serve a high-need school operated by a high-need 
local educational agency for at least 3 years.
    ``(j) Repayment.--The Secretary shall establish such 
requirements as the Secretary determines to be appropriate to 
ensure that program participants who receive a stipend or other 
financial incentive under subsection (g)(2)(A), but fail to 
complete their service obligation under subsection (i), repay 
all or a portion of such stipend or other incentive.
    ``(k) Administrative Funds.--No entity that receives a 
grant under this section shall use more than 5 percent of the 
funds made available through the grant for the administration 
of a program under this chapter carried out under the grant.

``SEC. 2314. EVALUATION AND ACCOUNTABILITY FOR RECRUITING AND RETAINING 
                    TEACHERS.

    ``(a) Evaluation.--Each entity that receives a grant under 
this chapter shall conduct--
            ``(1) an interim evaluation of the program funded 
        under the grant at the end of the third year of the 
        grant period; and
            ``(2) a final evaluation of the program at the end 
        of the fifth year of the grant period.
    ``(b) Contents.--In conducting the evaluation, the entity 
shall describe the extent to which local educational agencies 
that received funds through the grant have met the goals 
relating to teacher recruitment and retention described in the 
application.
    ``(c) Reports.--The entity shall prepare and submit to the 
Secretary and to Congress interim and final reports containing 
the results of the interim and final evaluations, respectively.
    ``(d) Revocation.--If the Secretary determines that the 
recipient of a grant under this chapter has not made 
substantial progress in meeting such goals and the objectives 
of the grant by the end of the third year of the grant period, 
the Secretary--
            ``(1) shall revoke the payment made for the fourth 
        year of the grant period; and
            ``(2) shall not make a payment for the fifth year 
        of the grant period.

                    ``CHAPTER C--GENERAL PROVISIONS

``SEC. 2321. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated 
to carry out this subpart $150,000,000 for fiscal year 2002 and 
such sums as may be necessary for each of the 5 succeeding 
fiscal years.
    ``(b) Reservation.--From the funds appropriated to carry 
out this subpart for fiscal year 2002, the Secretary shall 
reserve not more than $30,000,000 to carry out chapter A.

                 ``Subpart 2--National Writing Project

``SEC. 2331. PURPOSES.

    ``The purposes of this subpart are--
            ``(1) to support and promote the expansion of the 
        National Writing Project network of sites so that 
        teachers in every region of the United States will have 
        access to a National Writing Project program;
            ``(2) to ensure the consistent high quality of the 
        sites through ongoing review, evaluation and technical 
        assistance;
            ``(3) to support and promote the establishment of 
        programs to disseminate effective practices and 
        research findings about the teaching of writing; and
            ``(4) to coordinate activities assisted under this 
        subpart with activities assisted under this Act.

``SEC. 2332. NATIONAL WRITING PROJECT.

    ``(a) Authorization.--The Secretary is authorized to award 
a grant to the National Writing Project, a nonprofit 
educational organization that has as its primary purpose the 
improvement of the quality of student writing and learning 
(hereafter in this section referred to as the `grantee') to 
improve the teaching of writing and the use of writing as a 
part of the learning process in our Nation's classrooms.
    ``(b) Requirements of Grant.--The grant shall provide 
that--
            ``(1) the grantee will enter into contracts with 
        institutions of higher education or other nonprofit 
        educational providers (hereafter in this section 
        referred to as `contractors') under which the 
        contractors will agree to establish, operate, and 
        provide the non-Federal share of the cost of teacher 
        training programs in effective approaches and processes 
        for the teaching of writing;
            ``(2) funds made available by the Secretary to the 
        grantee pursuant to any contract entered into under 
        this section will be used to pay the Federal share of 
        the cost of establishing and operating teacher training 
        programs as provided in paragraph (1); and
            ``(3) the grantee will meet such other conditions 
        and standards as the Secretary determines to be 
        necessary to assure compliance with the provisions of 
        this section and will provide such technical assistance 
        as may be necessary to carry out the provisions of this 
        section.
    ``(c) Teacher Training Programs.--The teacher training 
programs authorized in subsection (a) shall--
            ``(1) be conducted during the school year and 
        during the summer months;
            ``(2) train teachers who teach grades kindergarten 
        through college;
            ``(3) select teachers to become members of a 
        National Writing Project teacher network whose members 
        will conduct writing workshops for other teachers in 
        the area served by each National Writing Project site; 
        and
            ``(4) encourage teachers from all disciplines to 
        participate in such teacher training programs.
    ``(d) Federal Share.--
            ``(1) In general.--Except as provided in paragraph 
        (2) or (3) and for purposes of subsection (a), the term 
        `Federal share' means, with respect to the costs of 
        teacher training programs authorized in subsection (a), 
        50 percent of such costs to the contractor.
            ``(2) Waiver.--The Secretary may waive the 
        provisions of paragraph (1) on a case-by-case basis if 
        the National Advisory Board described in subsection (e) 
        determines, on the basis of financial need, that such 
        waiver is necessary.
            ``(3) Maximum.--The Federal share of the costs of 
        teacher training programs conducted pursuant to 
        subsection (a) may not exceed $100,000 for any one 
        contractor, or $200,000 for a statewide program 
        administered by any one contractor in at least five 
        sites throughout the State.
    ``(e) National Advisory Board.--
            ``(1) Establishment.--The National Writing Project 
        shall establish and operate a National Advisory Board.
            ``(2) Composition.--The National Advisory Board 
        established pursuant to paragraph (1) shall consist 
        of--
                    ``(A) national educational leaders;
                    ``(B) leaders in the field of writing; and
                    ``(C) such other individuals as the 
                National Writing Project determines necessary.
            ``(3) Duties.--The National Advisory Board 
        established pursuant to paragraph (1) shall--
                    ``(A) advise the National Writing Project 
                on national issues related to student writing 
                and the teaching of writing;
                    ``(B) review the activities and programs of 
                the National Writing Project; and
                    ``(C) support the continued development of 
                the National Writing Project.
    ``(f) Evaluation.--
            ``(1) In general.--The Secretary shall conduct an 
        independent evaluation by grant or contract of the 
        teacher training programs administered pursuant to this 
        subpart. Such evaluation shall specify the amount of 
        funds expended by the National Writing Project and each 
        contractor receiving assistance under this section for 
        administrative costs. The results of such evaluation 
        shall be made available to the appropriate committees 
        of Congress.
            ``(2) Funding limitation.--The Secretary shall 
        reserve not more than $150,000 from the total amount 
        appropriated pursuant to the authority of subsection 
        (h) for fiscal year 2002 and each of the 5 succeeding 
        fiscal years to conduct the evaluation described in 
        paragraph (1).
    ``(g) Application Review.--
            ``(1) Review board.--The National Writing Project 
        shall establish and operate a National Review Board 
        that shall consist of--
                    ``(A) leaders in the field of research in 
                writing; and
                    ``(B) such other individuals as the 
                National Writing Project deems necessary.
            ``(2) Duties.--The National Review Board shall--
                    ``(A) review all applications for 
                assistance under this subsection; and
                    ``(B) recommend applications for assistance 
                under this subsection for funding by the 
                National Writing Project.
    ``(h) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this subpart 
$15,000,000 as may be necessary for fiscal year 2002 and each 
of the 5 succeeding fiscal years.

                      ``Subpart 3--Civic Education

``SEC. 2341. SHORT TITLE.

    ``This subpart may be cited as the `Education for Democracy 
Act'.

``SEC. 2342. PURPOSE.

    ``It is the purpose of this subpart--
            ``(1) to improve the quality of civics and 
        government education by educating students about the 
        history and principles of the Constitution of the 
        United States, including the Bill of Rights;
            ``(2) to foster civic competence and 
        responsibility; and
            ``(3) to improve the quality of civic education and 
        economic education through cooperative civic education 
        and economic education exchange programs with emerging 
        democracies.

``SEC. 2343. GENERAL AUTHORITY.

    ``(a) Authority.--The Secretary is authorized to award 
grants to, or enter into contracts with--
            ``(1) the Center for Civic Education, to carry out 
        civic education activities under sections 2344 and 
        2345;
            ``(2) the National Council on Economic Education, 
        to carry out economic education activities under 
        section 2345; and
            ``(3) organizations experienced in the development 
        of curricula and programs in civics and government 
        education and economic education for students in 
        elementary schools and secondary schools in countries 
        other than the United States, to carry out civic 
        education activities under section 2345.
    ``(b) Distribution for Cooperative Civic Education and 
Economic Education Exchange Programs.--
            ``(1) Limitation.--Not more than 40 percent of the 
        amount appropriated under section 2346 for a fiscal 
        year shall be used to carry out section 2345.
            ``(2) Distribution.--Of the amount used to carry 
        out section 2345 for a fiscal year (consistent with 
        paragraph (1)), the Secretary shall use--
                    ``(A) 37.5 percent for a grant or contract 
                for the Center for Civic Education;
                    ``(B) 37.5 percent for a grant or contract 
                for the National Council on Economic Education; 
                and
                    ``(C) 25 percent for not less than 1, but 
                not more than 3, grants or contracts for 
                organizations described in subsection (a)(3).

``SEC. 2344. WE THE PEOPLE PROGRAM.

    ``(a) The Citizen and the Constitution.--
            ``(1) Educational activities.--The Center for Civic 
        Education--
                    ``(A) shall use funds made available under 
                grants or contracts under section 2343(a)(1)--
                            ``(i) to continue and expand the 
                        educational activities of the program 
                        entitled the `We the People . . . The 
                        Citizen and the Constitution' program 
                        administered by such center;
                            ``(ii) to carry out activities to 
                        enhance student attainment of 
                        challenging academic content standards 
                        in civics and government;
                            ``(iii) to provide a course of 
                        instruction on the basic principles of 
                        the Nation's constitutional democracy 
                        and the history of the Constitution of 
                        the United States, including the Bill 
                        of Rights;
                            ``(iv) to provide, at the request 
                        of a participating school, school and 
                        community simulated congressional 
                        hearings following the course of 
                        instruction described in clause (iii); 
                        and
                            ``(v) to provide an annual national 
                        competition of simulated congressional 
                        hearings for secondary school students 
                        who wish to participate in such a 
                        program; and
                    ``(B) may use funds made available under 
                grants or contracts under section 2343(a)(1)--
                            ``(i) to provide advanced, 
                        sustained, and ongoing training of 
                        teachers about the Constitution of the 
                        United States and the political system 
                        of the United States;
                            ``(ii) to provide materials and 
                        methods of instruction, including 
                        teacher training, that utilize the 
                        latest advancements in educational 
                        technology; and
                            ``(iii) to provide civic education 
                        materials and services to address 
                        specific problems such as the 
                        prevention of school violence and the 
                        abuse of drugs and alcohol.
            ``(2) Availability of program.--The education 
        program authorized under this subsection shall be made 
        available to public and private elementary schools and 
        secondary schools, including Bureau funded schools, in 
        the 435 congressional districts, and in the District of 
        Columbia, the Commonwealth of Puerto Rico, the United 
        States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
    ``(b) Project Citizen.--
            ``(1) Educational activities.--The Center for Civic 
        Education--
                    ``(A) shall use funds made available under 
                grants or contracts under section 2343(a)(1)--
                            ``(i) to continue and expand the 
                        educational activities of the program 
                        entitled the `We the People . . . 
                        Project Citizen' program administered 
                        by the Center;
                            ``(ii) to carry out activities to 
                        enhance student attainment of 
                        challenging academic content standards 
                        in civics and government;
                            ``(iii) to provide a course of 
                        instruction at the middle school level 
                        on the roles of State and local 
                        governments in the Federal system 
                        established by the Constitution of the 
                        United States; and
                            ``(iv) to provide an annual 
                        national showcase or competition; and
                    ``(B) may use funds made available under 
                grants or contracts under section 2343(a)(1)--
                            ``(i) to provide optional school 
                        and community simulated State 
                        legislative hearings;
                            ``(ii) to provide advanced, 
                        sustained, and ongoing training of 
                        teachers on the roles of State and 
                        local governments in the Federal system 
                        established by the Constitution of the 
                        United States;
                            ``(iii) to provide materials and 
                        methods of instruction, including 
                        teacher training, that utilize the 
                        latest advancements in educational 
                        technology; and
                            ``(iv) to provide civic education 
                        materials and services to address 
                        specific problems such as the 
                        prevention of school violence and the 
                        abuse of drugs and alcohol.
            ``(2) Availability of program.--The education 
        program authorized under this subsection shall be made 
        available to public and private middle schools, 
        including Bureau funded schools, in the 50 States of 
        the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin 
        Islands, Guam, American Samoa, and the Commonwealth of 
        the Northern Mariana Islands.
    ``(c) Bureau-Funded School Defined.--In this section, the 
term `Bureau-funded school' has the meaning given such term in 
section 1146 of the Education Amendments of 1978 (25 U.S.C. 
2026).

``SEC. 2345. COOPERATIVE CIVIC EDUCATION AND ECONOMIC EDUCATION 
                    EXCHANGE PROGRAMS.

    ``(a) Cooperative Education Exchange Programs.--The Center 
for Civic Education, the National Council on Economic 
Education, and organizations described in section 2343(a)(3) 
shall use funds made available under grants or contracts under 
section 2343 to carry out cooperative education exchange 
programs in accordance with this section.
    ``(b) Purpose.--The purpose of the cooperative education 
exchange programs carried out under this section shall be--
            ``(1) to make available to educators from eligible 
        countries exemplary curriculum and teacher training 
        programs in civics and government education, and 
        economics education, developed in the United States;
            ``(2) to assist eligible countries in the 
        adaptation, implementation, and institutionalization of 
        such programs;
            ``(3) to create and implement civics and government 
        education, and economic education, programs for 
        students that draw upon the experiences of the 
        participating eligible countries;
            ``(4) to provide a means for the exchange of ideas 
        and experiences in civics and government education, and 
        economic education, among political, educational, 
        governmental, and private sector leaders of 
        participating eligible countries; and
            ``(5) to provide support for--
                    ``(A) independent research and evaluation 
                to determine the effects of educational 
                programs on students' development of the 
                knowledge, skills, and traits of character 
                essential for the preservation and improvement 
                of constitutional democracy; and
                    ``(B) effective participation in, and the 
                preservation and improvement of, an efficient 
                market economy.
    ``(c) Activities.--In carrying out the cooperative 
education exchange programs assisted under this section, the 
Center for Civic Education, the National Council on Economic 
Education, and organizations described in section 2343(a)(3) 
shall--
            ``(1) provide to the participants from eligible 
        countries--
                    ``(A) seminars on the basic principles of 
                United States constitutional democracy and 
                economic system, including seminars on the 
                major governmental and economic institutions 
                and systems in the United States, and visits to 
                such institutions;
                    ``(B) visits to school systems, 
                institutions of higher education, and nonprofit 
                organizations conducting exemplary programs in 
                civics and government education, and economic 
                education, in the United States;
                    ``(C) translations and adaptations with 
                respect to United States civics and government 
                education, and economic education, curricular 
                programs for students and teachers, and in the 
                case of training programs for teachers, 
                translations and adaptations into forms useful 
                in schools in eligible countries, and joint 
                research projects in such areas; and
                    ``(D) independent research and evaluation 
                assistance--
                            ``(i) to determine the effects of 
                        the cooperative education exchange 
                        programs on students' development of 
                        the knowledge, skills, and traits of 
                        character essential for the 
                        preservation and improvement of 
                        constitutional democracy; and
                            ``(ii) to identify effective 
                        participation in, and the preservation 
                        and improvement of, an efficient market 
                        economy;
            ``(2) provide to the participants from the United 
        States--
                    ``(A) seminars on the histories, economies, 
                and systems of government of eligible 
                countries;
                    ``(B) visits to school systems, 
                institutions of higher education, and 
                organizations conducting exemplary programs in 
                civics and government education, and economic 
                education, located in eligible countries;
                    ``(C) assistance from educators and 
                scholars in eligible countries in the 
                development of curricular materials on the 
                history, government, and economy of such 
                countries that are useful in United States 
                classrooms;
                    ``(D) opportunities to provide onsite 
                demonstrations of United States curricula and 
                pedagogy for educational leaders in eligible 
                countries; and
                    ``(E) independent research and evaluation 
                assistance to determine--
                            ``(i) the effects of the 
                        cooperative education exchange programs 
                        assisted under this section on 
                        students' development of the knowledge, 
                        skills, and traits of character 
                        essential for the preservation and 
                        improvement of constitutional 
                        democracy; and
                            ``(ii) effective participation in, 
                        and improvement of, an efficient market 
                        economy; and
            ``(3) assist participants from eligible countries 
        and the United States to participate in international 
        conferences on civics and government education, and 
        economic education, for educational leaders, teacher 
        trainers, scholars in related disciplines, and 
        educational policymakers.
    ``(d) Participants.--The primary participants in the 
cooperative education exchange programs assisted under this 
section shall be educational leaders in the areas of civics and 
government education, and economic education, including 
teachers, curriculum and teacher training specialists, scholars 
in relevant disciplines, and educational policymakers, and 
government and private sector leaders from the United States 
and eligible countries.
    ``(e) Consultation.--The Secretary may award a grant to, or 
enter into a contract with, the entities described in section 
2343 to carry out programs assisted under this section only if 
the Secretary of State concurs with the Secretary that such 
grant, or contract, respectively, is consistent with the 
foreign policy of the United States.
    ``(f) Avoidance of Duplication.--With the concurrence of 
the Secretary of State, the Secretary shall ensure that--
            ``(1) the activities carried out under the programs 
        assisted under this section are not duplicative of 
        other activities conducted in eligible countries; and
            ``(2) any institutions in eligible countries, with 
        which the Center for Civic Education, the National 
        Council on Economic Education, or organizations 
        described in section 2343(a)(3) may work in conducting 
        such activities, are creditable.
    ``(g) Eligible Country Defined.--In this section, the term 
`eligible country' means a Central European country, an Eastern 
European country, Lithuania, Latvia, Estonia, the independent 
states of the former Soviet Union as defined in section 3 of 
the FREEDOM Support Act (22 U.S.C. 5801), the Republic of 
Ireland, the province of Northern Ireland in the United 
Kingdom, and any developing country (as such term is defined in 
section 209(d) of the Education for the Deaf Act) if the 
Secretary, with the concurrence of the Secretary of State, 
determines that such developing country has a democratic form 
of government.

``SEC. 2346. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subpart $30,000,000 for fiscal year 2002 and such sums as may 
be necessary for each of the 5 succeeding fiscal years.

         ``Subpart 4--Teaching of Traditional American History

``SEC. 2351. ESTABLISHMENT OF PROGRAM.

    ``(a) In General.--The Secretary may establish and 
implement a program to be known as the `Teaching American 
History Grant Program', under which the Secretary shall award 
grants on a competitive basis to local educational agencies--
            ``(1) to carry out activities to promote the 
        teaching of traditional American history in elementary 
        schools and secondary schools as a separate academic 
        subject (not as a component of social studies); and
            ``(2) for the development, implementation, and 
        strengthening of programs to teach traditional American 
        history as a separate academic subject (not as a 
        component of social studies) within elementary school 
        and secondary school curricula, including the 
        implementation of activities--
                    ``(A) to improve the quality of 
                instruction; and
                    ``(B) to provide professional development 
                and teacher education activities with respect 
                to American history.
    ``(b) Required Partnership.--A local educational agency 
that receives a grant under subsection (a) shall carry out 
activities under the grant in partnership with one or more of 
the following:
            ``(1) An institution of higher education.
            ``(2) A nonprofit history or humanities 
        organization.
            ``(3) A library or museum.
    ``(c) Application.--To be eligible to receive an grant 
under this section, a local educational agency shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require.

``SEC. 2352. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subpart such sums as may be necessary for fiscal year 2002 and 
each of the 5 succeeding fiscal years.

               ``Subpart 5--Teacher Liability Protection

``SEC. 2361. SHORT TITLE.

    ``This subpart may be cited as the `Paul D. Coverdell 
Teacher Protection Act of 2001'.

``SEC. 2362. PURPOSE.

    ``The purpose of this subpart is to provide teachers, 
principals, and other school professionals the tools they need 
to undertake reasonable actions to maintain order, discipline, 
and an appropriate educational environment.

``SEC. 2363. DEFINITIONS.

    ``For purposes of this subpart:
            ``(1) Economic loss.--The term `economic loss' 
        means any pecuniary loss resulting from harm (including 
        the loss of earnings or other benefits related to 
        employment, medical expense loss, replacement services 
        loss, loss due to death, burial costs, and loss of 
        business or employment opportunities) to the extent 
        recovery for such loss is allowed under applicable 
        State law.
            ``(2) Harm.--The term `harm' includes physical, 
        nonphysical, economic, and noneconomic losses.
            ``(3) Noneconomic loss.--The term `noneconomic 
        loss' means loss for physical or emotional pain, 
        suffering, inconvenience, physical impairment, mental 
        anguish, disfigurement, loss of enjoyment of life, loss 
        of society or companionship, loss of consortium (other 
        than loss of domestic service), hedonic damages, injury 
        to reputation, or any other nonpecuniary loss of any 
        kind or nature.
            ``(4) School.--The term `school' means a public or 
        private kindergarten, a public or private elementary 
        school or secondary school, or a home school.
            ``(5) State.--The term `State' means each of the 
        several States of the United States, the District of 
        Columbia, the Commonwealth of Puerto Rico, the United 
        States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, any other 
        territory or possession of the United States, or any 
        political subdivision of any such State, territory, or 
        possession.
            ``(6) Teacher.--The term `teacher' means--
                    ``(A) a teacher, instructor, principal, or 
                administrator;
                    ``(B) another educational professional who 
                works in a school;
                    ``(C) a professional or nonprofessional 
                employee who--
                            ``(i) works in a school; and
                            ``(ii)(I) in the employee's job, 
                        maintains discipline or ensures safety; 
                        or
                            ``(II) in an emergency, is called 
                        on to maintain discipline or ensure 
                        safety; or
                    ``(D) an individual member of a school 
                board (as distinct from the board).

``SEC. 2364. APPLICABILITY.

    ``This subpart shall only apply to States that receive 
funds under this Act, and shall apply to such a State as a 
condition of receiving such funds.

``SEC. 2365. PREEMPTION AND ELECTION OF STATE NONAPPLICABILITY.

    ``(a) Preemption.--This subpart preempts the laws of any 
State to the extent that such laws are inconsistent with this 
subpart, except that this subpart shall not preempt any State 
law that provides additional protection from liability relating 
to teachers.
    ``(b) Election of State Regarding Nonapplicability.--This 
subpart shall not apply to any civil action in a State court 
against a teacher with respect to claims arising within that 
State if such State enacts a statute in accordance with State 
requirements for enacting legislation--
            ``(1) citing the authority of this subsection;
            ``(2) declaring the election of such State that 
        this subpart shall not apply, as of a date certain, to 
        such civil action in the State; and
            ``(3) containing no other provisions.

``SEC. 2366. LIMITATION ON LIABILITY FOR TEACHERS.

    ``(a) Liability Protection for Teachers.--Except as 
provided in subsection (b), no teacher in a school shall be 
liable for harm caused by an act or omission of the teacher on 
behalf of the school if--
            ``(1) the teacher was acting within the scope of 
        the teacher's employment or responsibilities to a 
        school or governmental entity;
            ``(2) the actions of the teacher were carried out 
        in conformity with Federal, State, and local laws 
        (including rules and regulations) in furtherance of 
        efforts to control, discipline, expel, or suspend a 
        student or maintain order or control in the classroom 
        or school;
            ``(3) if appropriate or required, the teacher was 
        properly licensed, certified, or authorized by the 
        appropriate authorities for the activities or practice 
        involved in the State in which the harm occurred, where 
        the activities were or practice was undertaken within 
        the scope of the teacher's responsibilities;
            ``(4) the harm was not caused by willful or 
        criminal misconduct, gross negligence, reckless 
        misconduct, or a conscious, flagrant indifference to 
        the rights or safety of the individual harmed by the 
        teacher; and
            ``(5) the harm was not caused by the teacher 
        operating a motor vehicle, vessel, aircraft, or other 
        vehicle for which the State requires the operator or 
        the owner of the vehicle, craft, or vessel to--
                    ``(A) possess an operator's license; or
                    ``(B) maintain insurance.
    ``(b) Exceptions to Teacher Liability Protection.--If the 
laws of a State limit teacher liability subject to one or more 
of the following conditions, such conditions shall not be 
construed as inconsistent with this section:
            ``(1) A State law that requires a school or 
        governmental entity to adhere to risk management 
        procedures, including mandatory training of teachers.
            ``(2) A State law that makes the school or 
        governmental entity liable for the acts or omissions of 
        its teachers to the same extent as an employer is 
        liable for the acts or omissions of its employees.
            ``(3) A State law that makes a limitation of 
        liability inapplicable if the civil action was brought 
        by an officer of a State or local government pursuant 
        to State or local law.
    ``(c) Limitation on Punitive Damages Based on the Actions 
of Teachers.--
            ``(1) General rule.--Punitive damages may not be 
        awarded against a teacher in an action brought for harm 
        based on the act or omission of a teacher acting within 
        the scope of the teacher's employment or 
        responsibilities to a school or governmental entity 
        unless the claimant establishes by clear and convincing 
        evidence that the harm was proximately caused by an act 
        or omission of such teacher that constitutes willful or 
        criminal misconduct, or a conscious, flagrant 
        indifference to the rights or safety of the individual 
        harmed.
            ``(2) Construction.--Paragraph (1) does not create 
        a cause of action for punitive damages and does not 
        preempt or supersede any Federal or State law to the 
        extent that such law would further limit the award of 
        punitive damages.
    ``(d) Exceptions to Limitations on Liability.--
            ``(1) In general.--The limitations on the liability 
        of a teacher under this subpart shall not apply to any 
        misconduct that--
                    ``(A) constitutes a crime of violence (as 
                that term is defined in section 16 of title 18, 
                United States Code) or act of international 
                terrorism (as that term is defined in section 
                2331 of title 18, United States Code) for which 
                the defendant has been convicted in any court;
                    ``(B) involves a sexual offense, as defined 
                by applicable State law, for which the 
                defendant has been convicted in any court;
                    ``(C) involves misconduct for which the 
                defendant has been found to have violated a 
                Federal or State civil rights law; or
                    ``(D) where the defendant was under the 
                influence (as determined pursuant to applicable 
                State law) of intoxicating alcohol or any drug 
                at the time of the misconduct.
            ``(2) Hiring.--The limitations on the liability of 
        a teacher under this subpart shall not apply to 
        misconduct during background investigations, or during 
        other actions, involved in the hiring of a teacher.
    ``(e) Rules of Construction.--
            ``(1) Concerning responsibility of teachers to 
        schools and governmental entities.-- Nothing in this 
        section shall be construed to affect any civil action 
        brought by any school or any governmental entity 
        against any teacher of such school.
            ``(2) Concerning corporal punishment.--Nothing in 
        this subpart shall be construed to affect any State or 
        local law (including a rule or regulation) or policy 
        pertaining to the use of corporal punishment.

``SEC. 2367. ALLOCATION OF RESPONSIBILITY FOR NONECONOMIC LOSS.

    ``(a) General Rule.--In any civil action against a teacher, 
based on an act or omission of a teacher acting within the 
scope of the teacher's employment or responsibilities to a 
school or governmental entity, the liability of the teacher for 
noneconomic loss shall be determined in accordance with 
subsection (b).
    ``(b) Amount of Liability.--
            ``(1) In general.--
                    ``(A) Liability.--Each defendant who is a 
                teacher shall be liable only for the amount of 
                noneconomic loss allocated to that defendant in 
                direct proportion to the percentage of 
                responsibility of that defendant (determined in 
                accordance with paragraph (2)) for the harm to 
                the claimant with respect to which that 
                defendant is liable.
                    ``(B) Separate judgment.--The court shall 
                render a separate judgment against each 
                defendant in an amount determined pursuant to 
                subparagraph (A).
            ``(2) Percentage of responsibility.--For purposes 
        of determining the amount of noneconomic loss allocated 
        to a defendant who is a teacher under this section, the 
        trier of fact shall determine the percentage of 
        responsibility of each person responsible for the 
        claimant's harm, whether or not such person is a party 
        to the action.
    ``(c) Rule of Construction.--Nothing in this section shall 
be construed to preempt or supersede any Federal or State law 
that further limits the application of joint liability in a 
civil action described in subsection (a), beyond the 
limitations established in this section.

``SEC. 2368. EFFECTIVE DATE.

    ``(a) In General.--This subpart shall take effect 90 days 
after the date of enactment of the No Child Left Behind Act of 
2001.
    ``(b) Application.--This subpart applies to any claim for 
harm caused by an act or omission of a teacher if that claim is 
filed on or after the effective date of the No Child Left 
Behind Act of 2001 without regard to whether the harm that is 
the subject of the claim or the conduct that caused the harm 
occurred before such effective date.

            ``PART D--ENHANCING EDUCATION THROUGH TECHNOLOGY

``SEC. 2401. SHORT TITLE.

    ``This part may be cited as the `Enhancing Education 
Through Technology Act of 2001'.

``SEC. 2402. PURPOSES AND GOALS.

    ``(a) Purposes.--The purposes of this part are the 
following:
            ``(1) To provide assistance to States and 
        localities for the implementation and support of a 
        comprehensive system that effectively uses technology 
        in elementary schools and secondary schools to improve 
        student academic achievement.
            ``(2) To encourage the establishment or expansion 
        of initiatives, including initiatives involving public-
        private partnerships, designed to increase access to 
        technology, particularly in schools served by high-need 
        local educational agencies.
            ``(3) To assist States and localities in the 
        acquisition, development, interconnection, 
        implementation, improvement, and maintenance of an 
        effective educational technology infrastructure in a 
        manner that expands access to technology for students 
        (particularly for disadvantaged students) and teachers.
            ``(4) To promote initiatives that provide school 
        teachers, principals, and administrators with the 
        capacity to integrate technology effectively into 
        curricula and instruction that are aligned with 
        challenging State academic content and student academic 
        achievement standards, through such means as high-
        quality professional development programs.
            ``(5) To enhance the ongoing professional 
        development of teachers, principals, and administrators 
        by providing constant access to training and updated 
        research in teaching and learning through electronic 
        means.
            ``(6) To support the development and utilization of 
        electronic networks and other innovative methods, such 
        as distance learning, of delivering specialized or 
        rigorous academic courses and curricula for students in 
        areas that would not otherwise have access to such 
        courses and curricula, particularly in geographically 
        isolated regions.
            ``(7) To support the rigorous evaluation of 
        programs funded under this part, particularly regarding 
        the impact of such programs on student academic 
        achievement, and ensure that timely information on the 
        results of such evaluations is widely accessible 
        through electronic means.
            ``(8) To support local efforts using technology to 
        promote parent and family involvement in education and 
        communication among students, parents, teachers, 
        principals, and administrators.
    ``(b) Goals.--
            ``(1) Primary goal.--The primary goal of this part 
        is to improve student academic achievement through the 
        use of technology in elementary schools and secondary 
        schools.
            ``(2) Additional goals.--The additional goals of 
        this part are the following:
                    ``(A) To assist every student in crossing 
                the digital divide by ensuring that every 
                student is technologically literate by the time 
                the student finishes the eighth grade, 
                regardless of the student's race, ethnicity, 
                gender, family income, geographic location, or 
                disability.
                    ``(B) To encourage the effective 
                integration of technology resources and systems 
                with teacher training and curriculum 
                development to establish research-based 
                instructional methods that can be widely 
                implemented as best practices by State 
                educational agencies and local educational 
                agencies.

``SEC. 2403. DEFINITIONS.

    ``In this part:
            ``(1) Eligible local entity.--The term `eligible 
        local entity' means--
                    ``(A) a high-need local educational agency; 
                or
                    ``(B) an eligible local partnership.
            ``(2) Eligible local partnership.--The term 
        `eligible local partnership' means a partnership that--
                    ``(A) shall include at least one high-need 
                local educational agency and at least one--
                            ``(i) local educational agency that 
                        can demonstrate that teachers in 
                        schools served by the agency are 
                        effectively integrating technology and 
                        proven teaching practices into 
                        instruction, based on a review of 
                        relevant research, and that the 
                        integration results in improvement in--
                                    ``(I) classroom instruction 
                                in the core academic subjects; 
                                and
                                    ``(II) the preparation of 
                                students to meet challenging 
                                State academic content and 
                                student academic achievement 
                                standards;
                            ``(ii) institution of higher 
                        education that is in full compliance 
                        with the reporting requirements of 
                        section 207(f) of the Higher Education 
                        Act of 1965 and that has not been 
                        identified by its State as low-
                        performing under section 208 of such 
                        Act;
                            ``(iii) for-profit business or 
                        organization that develops, designs, 
                        manufactures, or produces technology 
                        products or services, or has 
                        substantial expertise in the 
                        application of technology in 
                        instruction; or
                            ``(iv) public or private nonprofit 
                        organization with demonstrated 
                        experience in the application of 
                        educational technology to instruction; 
                        and
                    ``(B) may include other local educational 
                agencies, educational service agencies, 
                libraries, or other educational entities 
                appropriate to provide local programs.
            ``(3) High-need local educational agency.--The term 
        `high-need local educational agency' means a local 
        educational agency that--
                    ``(A) is among the local educational 
                agencies in a State with the highest numbers or 
                percentages of children from families with 
                incomes below the poverty line; and
                    ``(B)(i) operates one or more schools 
                identified under section 1116; or
                    ``(ii) has a substantial need for 
                assistance in acquiring and using technology.

``SEC. 2404. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated 
to carry out subparts 1 and 2 $1,000,000,000 for fiscal year 
2002, and such sums as may be necessary for each of the 5 
succeeding fiscal years.
    ``(b) Allocation of Funds Between State and Local and 
National Initiatives.--The amount of funds made available under 
subsection (a) for a fiscal year shall be allocated so that--
            ``(1) not less than 98 percent is made available to 
        carry out subpart 1; and
            ``(2) not more than 2 percent is made available to 
        carry out subpart 2.
    ``(c) Allocation of Funds for Study.--Of the total amount 
of funds allocated under subsection (b)(2) for fiscal years 
2002 through 2007, not more than $15,000,000 may be used to 
carry out section 2421(a).
    ``(d) Limitation.--Of the amount of funds made available to 
a recipient of funds under this part for a fiscal year, not 
more than 5 percent may be used by the recipient for 
administrative costs or technical assistance, of which not more 
than 60 percent may be used by the recipient for administrative 
costs.

             ``Subpart 1--State and Local Technology Grants

``SEC. 2411. ALLOTMENT AND REALLOTMENT.

    ``(a) Reservations and Allotment.--From the amount made 
available to carry out this subpart under section 2404(b)(1) 
for a fiscal year--
            ``(1) the Secretary shall reserve--
                    ``(A) \3/4\ of 1 percent for the Secretary 
                of the Interior for programs under this subpart 
                for schools operated or funded by the Bureau of 
                Indian Affairs;
                    ``(B) \1/2\ of 1 percent to provide 
                assistance under this subpart to the outlying 
                areas; and
                    ``(C) such sums as may be necessary for 
                continuation awards on grants awarded under 
                section 3136 prior to the date of enactment of 
                the No Child Left Behind Act of 2001; and
            ``(2) from the remainder of such amount and subject 
        to subsection (b), the Secretary shall make grants by 
        allotting to each eligible State educational agency 
        under this subpart an amount that bears the same 
        relationship to such remainder for such year as the 
        amount received under part A of title I for such year 
        by such State educational agency bears to the amount 
        received under such part for such year by all State 
        educational agencies.
    ``(b) Minimum Allotment.--The amount of any State 
educational agency's allotment under subsection (a)(2) for any 
fiscal year may not be less than \1/2\ of 1 percent of the 
amount made available for allotments to States under this part 
for such year.
    ``(c) Reallotment of Unused Funds.--If any State 
educational agency does not apply for an allotment under this 
subpart for a fiscal year, or does not use its entire allotment 
under this subpart for that fiscal year, the Secretary shall 
reallot the amount of the State educational agency's allotment, 
or the unused portion of the allotment, to the remaining State 
educational agencies that use their entire allotments under 
this subpart in accordance with this section.
    ``(d) State Educational Agency Defined.--In this section, 
the term `State educational agency' does not include an agency 
of an outlying area or the Bureau of Indian Affairs.

``SEC. 2412. USE OF ALLOTMENT BY STATE.

    ``(a) In General.--Of the amount provided to a State 
educational agency (from the agency's allotment under section 
2411(a)(2)) for a fiscal year--
            ``(1) the State educational agency may use not more 
        than 5 percent to carry out activities under section 
        2415; and
            ``(2) the State educational agency shall distribute 
        the remainder as follows:
                    ``(A) From 50 percent of the remainder, the 
                State educational agency shall award subgrants 
                by allocating to each eligible local 
                educational agency that has submitted an 
                application to the State educational agency 
                under section 2414, for the activities 
                described in section 2416, an amount that bears 
                the same relationship to 50 percent of the 
                remainder for such year as the amount received 
                under part A of title I for such year by such 
                local educational agency bears to the amount 
                received under such part for such year by all 
                local educational agencies within the State.
                    ``(B) From 50 percent of the remainder and 
                subject to subsection (b), the State 
                educational agency shall award subgrants, 
                through a State-determined competitive process, 
                to eligible local entities that have submitted 
                applications to the State educational agency 
                under section 2414, for the activities 
                described in section 2416.
    ``(b) Sufficient Amounts.--
            ``(1) Special rule.--In awarding a subgrant under 
        subsection (a)(2)(B), the State educational agency 
        shall--
                    ``(A) determine the local educational 
                agencies that--
                            ``(i) received allocations under 
                        subsection (a)(2)(A) that are not of 
                        sufficient size to be effective, 
                        consistent with the purposes of this 
                        part; and
                            ``(ii) are eligible local entities;
                    ``(B) give priority to applications 
                submitted by eligible local educational 
                agencies described in subparagraph (A); and
                    ``(C) determine the minimum amount for 
                awards under subsection (a)(2)(B) to ensure 
                that subgrants awarded under that subsection 
                are of sufficient size to be effective.
            ``(2) Sufficiency.--In awarding subgrants under 
        subsection (a)(2)(B), each State educational agency 
        shall ensure that each subgrant is of sufficient size 
        and duration, and that the program funded by the 
        subgrant is of sufficient scope and quality, to carry 
        out the purposes of this part effectively.
            ``(3) Distribution.--In awarding subgrants under 
        subsection (a)(2)(B), each State educational agency 
        shall ensure an equitable distribution of assistance 
        under this subpart among urban and rural areas of the 
        State, according to the demonstrated need of those 
        local educational agencies serving the areas.
    ``(c) Fiscal Agent.--If an eligible local partnership 
receives a subgrant under subsection (a)(2)(B), a local 
educational agency in the partnership shall serve as the fiscal 
agent for the partnership.
    ``(d) Technical Assistance.--Each State educational agency 
receiving a grant under section 2411(a) shall--
            ``(1) identify the local educational agencies 
        served by the State educational agency that--
                    ``(A) have the highest numbers or 
                percentages of children from families with 
                incomes below the poverty line; and
                    ``(B) demonstrate to such State educational 
                agency the greatest need for technical 
                assistance in developing an application under 
                section 2414; and
            ``(2) offer the technical assistance described in 
        paragraph (1)(B) to those local educational agencies.

``SEC. 2413. STATE APPLICATIONS.

    ``(a) In General.--To be eligible to receive a grant under 
this subpart, a State educational agency shall submit to the 
Secretary, at such time and in such manner as the Secretary may 
specify, an application containing a new or updated statewide 
long-range strategic educational technology plan (which shall 
address the educational technology needs of local educational 
agencies) and such other information as the Secretary may 
reasonably require.
    ``(b) Contents.--Each State application submitted under 
subsection (a) shall include each of the following:
            ``(1) An outline of the State educational agency's 
        long-term strategies for improving student academic 
        achievement, including technology literacy, through the 
        effective use of technology in classrooms throughout 
        the State, including through improving the capacity of 
        teachers to integrate technology effectively into 
        curricula and instruction.
            ``(2) A description of the State educational 
        agency's goals for using advanced technology to improve 
        student academic achievement, and how those goals are 
        aligned with challenging State academic content and 
        student academic achievement standards.
            ``(3) A description of how the State educational 
        agency will take steps to ensure that all students and 
        teachers in the State, particularly students and 
        teachers in districts served by high-need local 
        educational agencies, have increased access to 
        technology.
            ``(4) A description of the process and 
        accountability measures that the State educational 
        agency will use to evaluate the extent to which 
        activities funded under this subpart are effective in 
        integrating technology into curricula and instruction.
            ``(5) A description of how the State educational 
        agency will encourage the development and utilization 
        of innovative strategies for the delivery of 
        specialized or rigorous academic courses and curricula 
        through the use of technology, including distance 
        learning technologies, particularly for those areas of 
        the State that would not otherwise have access to such 
        courses and curricula due to geographical isolation or 
        insufficient resources.
            ``(6) An assurance that financial assistance 
        provided under this subpart will supplement, and not 
        supplant, State and local funds.
            ``(7) A description of how the plan incorporates 
        teacher education, professional development, and 
        curriculum development, and how the State educational 
        agency will work to ensure that teachers and principals 
        in a State receiving funds under this part are 
        technologically literate.
            ``(8) A description of--
                    ``(A) how the State educational agency will 
                provide technical assistance to applicants 
                under section 2414, especially to those 
                applicants serving the highest numbers or 
                percentages of children in poverty or with the 
                greatest need for technical assistance; and
                    ``(B) the capacity of the State educational 
                agency to provide such assistance.
            ``(9) A description of technology resources and 
        systems that the State will provide for the purpose of 
        establishing best practices that can be widely 
        replicated by State educational agencies and local 
        educational agencies in the State and in other States.
            ``(10) A description of the State's long-term 
        strategies for financing technology to ensure that all 
        students, teachers, and classrooms have access to 
        technology.
            ``(11) A description of the State's strategies for 
        using technology to increase parental involvement.
            ``(12) A description of how the State educational 
        agency will ensure that each subgrant awarded under 
        section 2412(a)(2)(B) is of sufficient size and 
        duration, and that the program funded by the subgrant 
        is of sufficient scope and quality, to carry out the 
        purposes of this part effectively.
            ``(13) A description of how the State educational 
        agency will ensure ongoing integration of technology 
        into school curricula and instructional strategies in 
        all schools in the State, so that technology will be 
        fully integrated into the curricula and instruction of 
        the schools by December 31, 2006.
            ``(14) A description of how the local educational 
        agencies in the State will provide incentives to 
        teachers who are technologically literate and teaching 
        in rural or urban areas, to encourage such teachers to 
        remain in those areas.
            ``(15) A description of how public and private 
        entities will participate in the implementation and 
        support of the plan.
    ``(c) Deemed Approval.--An application submitted by a State 
educational agency pursuant to subsection (a) shall be deemed 
to be approved by the Secretary unless the Secretary makes a 
written determination, prior to the expiration of the 120-day 
period beginning on the date on which the Secretary received 
the application, that the application is not in compliance with 
this part.
    ``(d) Disapproval.--The Secretary shall not finally 
disapprove the application, except after giving the State 
educational agency notice and an opportunity for a hearing.
    ``(e) Notification.--If the Secretary finds that the 
application is not in compliance, in whole or in part, with 
this part, the Secretary shall--
            ``(1) give the State educational agency notice and 
        an opportunity for a hearing; and
            ``(2) notify the State educational agency of the 
        finding of noncompliance and, in such notification, 
        shall--
                    ``(A) cite the specific provisions in the 
                application that are not in compliance; and
                    ``(B) request additional information, only 
                as to the noncompliant provisions, needed to 
                make the application compliant.
    ``(f) Response.--If the State educational agency responds 
to the Secretary's notification described in subsection (e)(2) 
during the 45-day period beginning on the date on which the 
agency received the notification, and resubmits the application 
with the requested information described in subsection 
(e)(2)(B), the Secretary shall approve or disapprove such 
application prior to the later of--
            ``(1) the expiration of the 45-day period beginning 
        on the date on which the application is resubmitted; or
            ``(2) the expiration of the 120-day period 
        described in subsection (c).
    ``(g) Failure To Respond.--If the State educational agency 
does not respond to the Secretary's notification described in 
subsection (e)(2) during the 45-day period beginning on the 
date on which the agency received the notification, such 
application shall be deemed to be disapproved.

``SEC. 2414. LOCAL APPLICATIONS.

    ``(a) In General.--To be eligible to receive a subgrant 
from a State educational agency under this subpart, a local 
educational agency or eligible local entity shall submit to the 
State educational agency an application containing a new or 
updated local long-range strategic educational technology plan 
that is consistent with the objectives of the statewide 
educational technology plan described in section 2413(a), and 
such other information as the State educational agency may 
reasonably require, at such time and in such manner as the 
State educational agency may require.
    ``(b) Contents.--The application shall include each of the 
following:
            ``(1) A description of how the applicant will use 
        Federal funds under this subpart to improve the student 
        academic achievement, including technology literacy, of 
        all students attending schools served by the local 
        educational agency and to improve the capacity of all 
        teachers teaching in schools served by the local 
        educational agency to integrate technology effectively 
        into curricula and instruction.
            ``(2) A description of the applicant's specific 
        goals for using advanced technology to improve student 
        academic achievement, aligned with challenging State 
        academic content and student academic achievement 
        standards.
            ``(3) A description of the steps the applicant will 
        take to ensure that all students and teachers in 
        schools served by the local educational agency involved 
        have increased access to educational technology, 
        including how the agency would use funds under this 
        subpart (such as combining the funds with funds from 
        other sources), to help ensure that--
                    ``(A) students in high-poverty and high-
                needs schools, or schools identified under 
                section 1116, have access to technology; and
                    ``(B) teachers are prepared to integrate 
                technology effectively into curricula and 
                instruction.
            ``(4) A description of how the applicant will--
                    ``(A) identify and promote curricula and 
                teaching strategies that integrate technology 
                effectively into curricula and instruction, 
                based on a review of relevant research, leading 
                to improvements in student academic 
                achievement, as measured by challenging State 
                academic content and student academic 
                achievement standards; and
                    ``(B) provide ongoing, sustained 
                professional development for teachers, 
                principals, administrators, and school library 
                media personnel serving the local educational 
                agency, to further the effective use of 
                technology in the classroom or library media 
                center, including, if applicable, a list of the 
                entities that will be partners with the local 
                educational agency involved in providing the 
                ongoing, sustained professional development.
            ``(5) A description of the type and costs of 
        technologies to be acquired under this subpart, 
        including services, software, and digital curricula, 
        and including specific provisions for interoperability 
        among components of such technologies.
            ``(6) A description of how the applicant will 
        coordinate activities carried out with funds provided 
        under this subpart with technology-related activities 
        carried out with funds available from other Federal, 
        State, and local sources.
            ``(7) A description of how the applicant will 
        integrate technology (including software and other 
        electronically delivered learning materials) into 
        curricula and instruction, and a timeline for such 
        integration.
            ``(8) A description of how the applicant will 
        encourage the development and utilization of innovative 
        strategies for the delivery of specialized or rigorous 
        academic courses and curricula through the use of 
        technology, including distance learning technologies, 
        particularly for those areas that would not otherwise 
        have access to such courses and curricula due to 
        geographical isolation or insufficient resources.
            ``(9) A description of how the applicant will 
        ensure the effective use of technology to promote 
        parental involvement and increase communication with 
        parents, including a description of how parents will be 
        informed of the technology being applied in their 
        child's education so that the parents are able to 
        reinforce at home the instruction their child receives 
        at school.
            ``(10) A description of how programs will be 
        developed, where applicable, in collaboration with 
        adult literacy service providers, to maximize the use 
        of technology.
            ``(11) A description of the process and 
        accountability measures that the applicant will use to 
        evaluate the extent to which activities funded under 
        this subpart are effective in integrating technology 
        into curricula and instruction, increasing the ability 
        of teachers to teach, and enabling students to meet 
        challenging State academic content and student academic 
        achievement standards.
            ``(12) A description of the supporting resources 
        (such as services, software, other electronically 
        delivered learning materials, and print resources) that 
        will be acquired to ensure successful and effective 
        uses of technology.
    ``(c) Combined Applications.--A local educational agency 
that is an eligible local entity and submits an application to 
the State educational agency under this section for funds 
awarded under section 2412(a)(2)(A) may combine the agency's 
application for funds awarded under that section with an 
application for funds awarded under section 2412(a)(2)(B).
    ``(d) Special Rule.--
            ``(1) Consortium applications.--
                    ``(A) In general.--For any fiscal year, a 
                local educational agency applying for financial 
                assistance described in section 2412(a)(2)(A) 
                may apply as part of a consortium that includes 
                other local educational agencies, institutions 
                of higher education, educational service 
                agencies, libraries, or other educational 
                entities appropriate to provide local programs.
                    ``(B) Fiscal agent.--If a local educational 
                agency applies for and receives financial 
                assistance described in section 2412(a)(2)(A) 
                as part of a consortium, the local educational 
                agency shall serve as the fiscal agent for the 
                consortium.
            ``(2) State educational agency assistance.--At the 
        request of a local educational agency, a State 
        educational agency may assist the local educational 
        agency in the formation of a consortium described in 
        paragraph (1) to provide services for the teachers and 
        students served by the local educational agency.

``SEC. 2415. STATE ACTIVITIES.

    ``From funds made available under section 2412(a)(1), a 
State educational agency shall carry out activities and assist 
local efforts to carry out the purposes of this part, which may 
include the following activities:
            ``(1) Developing, or assisting applicants or 
        recipients of funds under this subpart in the 
        development and utilization of, innovative strategies 
        for the delivery of specialized or rigorous academic 
        courses and curricula through the use of technology, 
        including distance learning technologies, and providing 
        other technical assistance to such applicants or 
        recipients throughout the State, with priority given to 
        high-need local educational agencies.
            ``(2) Establishing or supporting public-private 
        initiatives (such as interest-free or reduced-cost 
        loans) for the acquisition of educational technology 
        for high-need local educational agencies and students 
        attending schools served by such agencies.
            ``(3) Assisting recipients of funds under this 
        subpart in providing sustained and intensive, high-
        quality professional development based on a review of 
        relevant research in the integration of advanced 
        technologies, including emerging technologies, into 
        curricula and instruction and in using those 
        technologies to create new learning environments, 
        including training in the use of technology to--
                    ``(A) access data and resources to develop 
                curricula and instructional materials;
                    ``(B) enable teachers--
                            ``(i) to use the Internet and other 
                        technology to communicate with parents, 
                        other teachers, principals, and 
                        administrators; and
                            ``(ii) to retrieve Internet-based 
                        learning resources; and
                    ``(C) lead to improvements in classroom 
                instruction in the core academic subjects, that 
                effectively prepare students to meet 
                challenging State academic content standards 
                and student academic achievement standards.
            ``(4) Assisting recipients of funds under this 
        subpart in providing all students (including students 
        with disabilities and students with limited English 
        proficiency) and teachers with access to educational 
        technology.
            ``(5) Developing performance measurement systems to 
        determine the effectiveness of educational technology 
        programs funded under this subpart, particularly in 
        determining the extent to which activities funded under 
        this subpart are effective in integrating technology 
        into curricula and instruction, increasing the ability 
        of teachers to teach, and enabling students to meet 
        challenging State academic content and student academic 
        achievement standards.
            ``(6) Collaborating with other State educational 
        agencies on distance learning, including making 
        specialized or rigorous academic courses and curricula 
        available to students in areas that would not otherwise 
        have access to such courses and curricula.

``SEC. 2416. LOCAL ACTIVITIES.

    ``(a) Professional Development.--
            ``(1) In general.--A recipient of funds made 
        available under section 2412(a)(2) shall use not less 
        than 25 percent of such funds to provide ongoing, 
        sustained, and intensive, high-quality professional 
        development. The recipient shall provide professional 
        development in the integration of advanced 
        technologies, including emerging technologies, into 
        curricula and instruction and in using those 
        technologies to create new learning environments, such 
        as professional development in the use of technology--
                    ``(A) to access data and resources to 
                develop curricula and instructional materials;
                    ``(B) to enable teachers--
                            ``(i) to use the Internet and other 
                        technology to communicate with parents, 
                        other teachers, principals, and 
                        administrators; and
                            ``(ii) to retrieve Internet-based 
                        learning resources; and
                    ``(C) to lead to improvements in classroom 
                instruction in the core academic subjects, that 
                effectively prepare students to meet 
                challenging State academic content standards, 
                including increasing student technology 
                literacy, and student academic achievement 
                standards.
            ``(2) Waivers.--Paragraph (1) shall not apply to a 
        recipient of funds made available under section 
        2412(a)(2) that demonstrates, to the satisfaction of 
        the State educational agency involved, that the 
        recipient already provides ongoing, sustained, and 
        intensive, high-quality professional development that 
        is based on a review of relevant research, to all 
        teachers in core academic subjects in the integration 
        of advanced technologies, including emerging 
        technologies, into curricula and instruction.
    ``(b) Other Activities.--In addition to the activities 
described in subsection (a), a recipient of funds made 
available by a State educational agency under section 
2412(a)(2) shall use such funds to carry out other activities 
consistent with this subpart, which may include the following:
            ``(1) Establishing or expanding initiatives, 
        particularly initiatives involving public-private 
        partnerships, designed to increase access to technology 
        for students and teachers, with special emphasis on the 
        access of high-need schools to technology.
            ``(2) Adapting or expanding existing and new 
        applications of technology to enable teachers to 
        increase student academic achievement, including 
        technology literacy--
                    ``(A) through the use of teaching practices 
                that are based on a review of relevant research 
                and are designed to prepare students to meet 
                challenging State academic content and student 
                academic achievement standards; and
                    ``(B) by the development and utilization of 
                innovative distance learning strategies to 
                deliver specialized or rigorous academic 
                courses and curricula to areas that would not 
                otherwise have access to such courses and 
                curricula.
            ``(3) Acquiring proven and effective courses and 
        curricula that include integrated technology and are 
        designed to help students meet challenging State 
        academic content and student academic achievement 
        standards.
            ``(4) Utilizing technology to develop or expand 
        efforts to connect schools and teachers with parents 
        and students to promote meaningful parental 
        involvement, to foster increased communication about 
        curricula, assignments, and assessments between 
        students, parents, and teachers, and to assist parents 
        to understand the technology being applied in their 
        child's education, so that parents are able to 
        reinforce at home the instruction their child receives 
        at school.
            ``(5) Preparing one or more teachers in elementary 
        schools and secondary schools as technology leaders who 
        are provided with the means to serve as experts and 
        train other teachers in the effective use of 
        technology, and providing bonus payments to the 
        technology leaders.
            ``(6) Acquiring, adapting, expanding, implementing, 
        repairing, and maintaining existing and new 
        applications of technology, to support the school 
        reform effort and to improve student academic 
        achievement, including technology literacy.
            ``(7) Acquiring connectivity linkages, resources, 
        and services (including the acquisition of hardware and 
        software and other electronically delivered learning 
        materials) for use by teachers, students, academic 
        counselors, and school library media personnel in the 
        classroom, in academic and college counseling centers, 
        or in school library media centers, in order to improve 
        student academic achievement.
            ``(8) Using technology to collect, manage, and 
        analyze data to inform and enhance teaching and school 
        improvement efforts.
            ``(9) Implementing performance measurement systems 
        to determine the effectiveness of education technology 
        programs funded under this subpart, particularly in 
        determining the extent to which activities funded under 
        this subpart are effective in integrating technology 
        into curricula and instruction, increasing the ability 
        of teachers to teach, and enabling students to meet 
        challenging State academic content and student academic 
        achievement standards.
            ``(10) Developing, enhancing, or implementing 
        information technology courses.

              ``Subpart 2--National Technology Activities

``SEC. 2421. NATIONAL ACTIVITIES.

    ``(a) Study.--Using funds made available under section 
2404(b)(2), the Secretary--
            ``(1) shall conduct an independent, long-term 
        study, utilizing scientifically based research methods 
        and control groups or control conditions--
                    ``(A) on the conditions and practices under 
                which educational technology is effective in 
                increasing student academic achievement; and
                    ``(B) on the conditions and practices that 
                increase the ability of teachers to integrate 
                technology effectively into curricula and 
                instruction, that enhance the learning 
                environment and opportunities, and that 
                increase student academic achievement, 
                including technology literacy;
            ``(2) shall establish an independent review panel 
        to advise the Secretary on methodological and other 
        issues that arise in conducting the long-term study;
            ``(3) shall consult with other interested Federal 
        departments or agencies, State and local educational 
        practitioners and policymakers (including teachers, 
        principals, and superintendents), and experts in 
        technology, regarding the study; and
            ``(4) shall submit to Congress interim reports, 
        when appropriate, and a final report, to be submitted 
        not later than April 1, 2006, on the findings of the 
        study.
    ``(b) Dissemination.--Using funds made available under 
section 2404(b)(2), the Secretary shall make widely available, 
including through dissemination on the Internet and to all 
State educational agencies and other recipients of funds under 
this part, findings identified through activities carried out 
under this section regarding the conditions and practices under 
which educational technology is effective in increasing student 
academic achievement.
    ``(c) Technical Assistance.--Using funds made available 
under section 2404(b)(2), the Secretary may provide technical 
assistance (directly or through the competitive award of grants 
or contracts) to State educational agencies, local educational 
agencies, and other recipients of funds, particularly in rural 
areas, under this part, in order to assist such State 
educational agencies, local educational agencies, and other 
recipients to achieve the purposes of this part.

``SEC. 2422. NATIONAL EDUCATION TECHNOLOGY PLAN.

    ``(a) In General.--Based on the Nation's progress and an 
assessment by the Secretary of the continuing and future needs 
of the Nation's schools in effectively using technology to 
provide all students the opportunity to meet challenging State 
academic content and student academic achievement standards, 
the Secretary shall update and publish, in a form readily 
accessible to the public, a national long-range technology 
plan, by not later than 12 months after the date of enactment 
of the No Child Left Behind Act of 2001.
    ``(b) Contents.--The plan referred to in subsection (a) 
shall include each of the following:
            ``(1) A description of the manner in which the 
        Secretary will promote--
                    ``(A) higher student academic achievement 
                through the integration of advanced 
                technologies, including emerging technologies, 
                into curricula and instruction;
                    ``(B) increased access to technology for 
                teaching and learning for schools with a high 
                number or percentage of children from families 
                with incomes below the poverty line; and
                    ``(C) the use of technology to assist in 
                the implementation of State systemic reform 
                strategies.
            ``(2) A description of joint activities of the 
        Department of Education and other Federal departments 
        or agencies that will promote the use of technology in 
        education.

                 ``Subpart 3--Ready-to-Learn Television

``SEC. 2431. READY-TO-LEARN TELEVISION.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to 
        award grants to, or enter into contracts or cooperative 
        agreements with, eligible entities described in 
        paragraph (3) to enable such entities--
                    ``(A) to develop, produce, and distribute 
                educational and instructional video programming 
                for preschool and elementary school children 
                and their parents in order to facilitate 
                student academic achievement;
                    ``(B) to facilitate the development, 
                directly or through contracts with producers of 
                children and family educational television 
                programming, of educational programming for 
                preschool and elementary school children, and 
                the accompanying support materials and services 
                that promote the effective use of such 
                programming;
                    ``(C) to facilitate the development of 
                programming and digital content containing 
                Ready-to-Learn-based children's programming and 
                resources for parents and caregivers that is 
                specially designed for nationwide distribution 
                over public television stations' digital 
                broadcasting channels and the Internet;
                    ``(D) to contract with entities (such as 
                public telecommunications entities) so that 
                programs developed under this section are 
                disseminated and distributed to the widest 
                possible audience appropriate to be served by 
                the programming, and through the use of the 
                most appropriate distribution technologies; and
                    ``(E) to develop and disseminate education 
                and training materials, including interactive 
                programs and programs adaptable to distance 
                learning technologies, that are designed--
                            ``(i) to promote school readiness; 
                        and
                            ``(ii) to promote the effective use 
                        of materials developed under 
                        subparagraphs (B) and (C) among 
                        parents, teachers, Head Start 
                        providers, Even Start providers, 
                        providers of family literacy services, 
                        child care providers, early childhood 
                        development personnel, elementary 
                        school teachers, public libraries, and 
                        after-school program personnel caring 
                        for preschool and elementary school 
                        children.
            ``(2) Availability.--In awarding grants, contracts, 
        or cooperative agreements under this section, the 
        Secretary shall ensure that eligible entities make 
        programming widely available, with support materials as 
        appropriate, to young children, parents, child care 
        workers, Head Start providers, Even Start providers, 
        and providers of family literacy services to increase 
        the effective use of such programming.
            ``(3) Eligible entities.--To be eligible to receive 
        a grant, contract, or cooperative agreements under this 
        section, an entity shall be a public telecommunications 
        entity that is able to demonstrate each of the 
        following:
                    ``(A) A capacity for the development and 
                national distribution of educational and 
                instructional television programming of high 
                quality that is accessible by a large majority 
                of disadvantaged preschool and elementary 
                school children.
                    ``(B) A capacity to contract with the 
                producers of children's television programming 
                for the purpose of developing educational 
                television programming of high quality.
                    ``(C) A capacity, consistent with the 
                entity's mission and nonprofit nature, to 
                negotiate such contracts in a manner that 
                returns to the entity an appropriate share of 
                any ancillary income from sales of any program-
                related products.
                    ``(D) A capacity to localize programming 
                and materials to meet specific State and local 
                needs and to provide educational outreach at 
                the local level.
            ``(4) Coordination of activities.--An entity 
        receiving a grant, contract, or cooperative agreement 
        under this section shall consult with the Secretary and 
        the Secretary of Health and Human Services--
                    ``(A) to maximize the utilization of 
                quality educational programming by preschool 
                and elementary school children, and make such 
                programming widely available to federally 
                funded programs serving such populations; and
                    ``(B) to coordinate activities with Federal 
                programs that have major training components 
                for early childhood development, including 
                programs under the Head Start Act (42 U.S.C. 
                9831 et seq.) and Even Start, and State 
                training activities funded under the Child Care 
                and Development Block Grant Act of 1990 (42 
                U.S.C. 9858 et seq.), regarding the 
                availability and utilization of materials 
                developed under paragraph (1)(E) to enhance 
                parent and child care provider skills in early 
                childhood development and education.
    ``(b) Applications.--To be eligible to receive a grant, 
contract, or cooperative agreement under subsection (a), an 
entity shall submit to the Secretary an application at such 
time, in such manner, and containing such information as the 
Secretary may reasonably require.
    ``(c) Reports and Evaluations.--
            ``(1) Annual report to the secretary.--An entity 
        receiving a grant, contract, or cooperative agreement 
        under this section shall prepare and submit to the 
        Secretary an annual report that contains such 
        information as the Secretary may require. At a minimum, 
        the report shall describe the program activities 
        undertaken with funds received under the grant, 
        contract, or cooperative agreement, including each of 
        the following:
                    ``(A) The programming that has been 
                developed, directly or indirectly, by the 
                eligible entity, and the target population of 
                the programs developed.
                    ``(B) The support and training materials 
                that have been developed to accompany the 
                programming, and the method by which the 
                materials are distributed to consumers and 
                users of the programming.
                    ``(C) The means by which programming 
                developed under this section has been 
                distributed, including the distance learning 
                technologies that have been utilized to make 
                programming available, and the geographic 
                distribution achieved through such 
                technologies.
                    ``(D) The initiatives undertaken by the 
                entity to develop public-private partnerships 
                to secure non-Federal support for the 
                development, distribution, and broadcast of 
                educational and instructional programming.
            ``(2) Report to congress.--The Secretary shall 
        prepare and submit to the relevant committees of 
        Congress a biannual report that includes the following:
                    ``(A) A summary of the activities assisted 
                under subsection (a).
                    ``(B) A description of the education and 
                training materials made available under 
                subsection (a)(1)(E), the manner in which 
                outreach has been conducted to inform parents 
                and child care providers of the availability of 
                such materials, and the manner in which such 
                materials have been distributed in accordance 
                with such subsection.
    ``(d) Administrative Costs.--An entity that receives a 
grant, contract, or cooperative agreement under this section 
may use up to 5 percent of the amount received under the grant, 
contract, or agreement for the normal and customary expenses of 
administering the grant, contract, or agreement.
    ``(e) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be 
        appropriated to carry out this section such sums as may 
        be necessary for fiscal year 2002, and for each of the 
        5 succeeding fiscal years.
            ``(2) Funding rule.--Not less than 60 percent of 
        the amount appropriated under paragraph (1) for each 
        fiscal year shall be used to carry out activities under 
        subparagraphs (B) through (D) of subsection (a)(1).

  ``Subpart 4--Limitation on Availability of Certain Funds for Schools

``SEC. 2441. INTERNET SAFETY.

    ``(a) In General.--No funds made available under this part 
to a local educational agency for an elementary school or 
secondary school that does not receive services at discount 
rates under section 254(h)(5) of the Communications Act of 1934 
(47 U.S.C. 254(h)(5)) may be used to purchase computers used to 
access the Internet, or to pay for direct costs associated with 
accessing the Internet, for such school unless the school, 
school board, local educational agency, or other authority with 
responsibility for administration of such school both--
            ``(1)(A) has in place a policy of Internet safety 
        for minors that includes the operation of a technology 
        protection measure with respect to any of its computers 
        with Internet access that protects against access 
        through such computers to visual depictions that are--
                    ``(i) obscene;
                    ``(ii) child pornography; or
                    ``(iii) harmful to minors; and
            ``(B) is enforcing the operation of such technology 
        protection measure during any use of such computers by 
        minors; and
            ``(2)(A) has in place a policy of Internet safety 
        that includes the operation of a technology protection 
        measure with respect to any of its computers with 
        Internet access that protects against access through 
        such computers to visual depictions that are--
                    ``(i) obscene; or
                    ``(ii) child pornography; and
            ``(B) is enforcing the operation of such technology 
        protection measure during any use of such computers.
    ``(b) Timing and Applicability of Implementation.--
            ``(1) In general.--The local educational agency 
        with responsibility for a school covered by subsection 
        (a) shall certify the compliance of such school with 
        the requirements of subsection (a) as part of the 
        application process for the next program funding year 
        under this Act following December 21, 2000, and for 
        each subsequent program funding year thereafter.
            ``(2) Process.--
                    ``(A) Schools with internet safety policies 
                and technology protection measures in place.--A 
                local educational agency with responsibility 
                for a school covered by subsection (a) that has 
                in place an Internet safety policy meeting the 
                requirements of subsection (a) shall certify 
                its compliance with subsection (a) during each 
                annual program application cycle under this 
                Act.
                    ``(B) Schools without internet safety 
                policies and technology protection measures in 
                place.--
                            ``(i) Certification.--A local 
                        educational agency with responsibility 
                        for a school covered by subsection (a) 
                        that does not have in place an Internet 
                        safety policy meeting the requirements 
                        of subsection (a)--
                                    ``(I) for the first program 
                                year after December 21, 2000, 
                                in which the local educational 
                                agency is applying for funds 
                                for such school under this Act, 
                                shall certify that it is 
                                undertaking such actions, 
                                including any necessary 
                                procurement procedures, to put 
                                in place an Internet safety 
                                policy that meets such 
                                requirements; and
                                    ``(II) for the second 
                                program year after December 21, 
                                2000, in which the local 
                                educational agency is applying 
                                for funds for such school under 
                                this Act, shall certify that 
                                such school is in compliance 
                                with such requirements.
                            ``(ii) Ineligibility.--Any school 
                        covered by subsection (a) for which the 
                        local educational agency concerned is 
                        unable to certify compliance with such 
                        requirements in such second program 
                        year shall be ineligible for all 
                        funding under this part for such second 
                        program year and all subsequent program 
                        years until such time as such school 
                        comes into compliance with such 
                        requirements.
                    ``(C) Waivers.--Any school subject to a 
                certification under subparagraph (B)(i)(II) for 
                which the local educational agency concerned 
                cannot make the certification otherwise 
                required by that subparagraph may seek a waiver 
                of that subparagraph if State or local 
                procurement rules or regulations or competitive 
                bidding requirements prevent the making of the 
                certification otherwise required by that 
                subparagraph. The local educational agency 
                concerned shall notify the Secretary of the 
                applicability of that subparagraph to the 
                school. Such notice shall certify that the 
                school will be brought into compliance with the 
                requirements in subsection (a) before the start 
                of the third program year after December 21, 
                2000, in which the school is applying for funds 
                under this part.
    ``(c) Disabling During Certain Use.--An administrator, 
supervisor, or person authorized by the responsible authority 
under subsection (a) may disable the technology protection 
measure concerned to enable access for bona fide research or 
other lawful purposes.
    ``(d) Noncompliance.--
            ``(1) Use of general education provisions act 
        remedies.--Whenever the Secretary has reason to believe 
        that any recipient of funds under this part is failing 
        to comply substantially with the requirements of this 
        section, the Secretary may--
                    ``(A) withhold further payments to the 
                recipient under this part;
                    ``(B) issue a complaint to compel 
                compliance of the recipient through a cease and 
                desist order; or
                    ``(C) enter into a compliance agreement 
                with a recipient to bring it into compliance 
                with such requirements,
        in same manner as the Secretary is authorized to take 
        such actions under sections 455, 456, and 457, 
        respectively, of the General Education Provisions Act.
            ``(2) Recovery of funds prohibited.--The actions 
        authorized by paragraph (1) are the exclusive remedies 
        available with respect to the failure of a school to 
        comply substantially with a provision of this section, 
        and the Secretary shall not seek a recovery of funds 
        from the recipient for such failure.
            ``(3) Recommencement of payments.--Whenever the 
        Secretary determines (whether by certification or other 
        appropriate evidence) that a recipient of funds who is 
        subject to the withholding of payments under paragraph 
        (1)(A) has cured the failure providing the basis for 
        the withholding of payments, the Secretary shall cease 
        the withholding of payments to the recipient under that 
        paragraph.
    ``(e) Definitions.--In this subpart:
            ``(1) Computer.--The term `computer' includes any 
        hardware, software, or other technology attached or 
        connected to, installed in, or otherwise used in 
        connection with a computer.
            ``(2) Access to internet.--A computer shall be 
        considered to have access to the Internet if such 
        computer is equipped with a modem or is connected to a 
        computer network that has access to the Internet.
            ``(3) Acquisition or operation.--An elementary 
        school or secondary school shall be considered to have 
        received funds under this part for the acquisition or 
        operation of any computer if such funds are used in any 
        manner, directly or indirectly--
                    ``(A) to purchase, lease, or otherwise 
                acquire or obtain the use of such computer; or
                    ``(B) to obtain services, supplies, 
                software, or other actions or materials to 
                support, or in connection with, the operation 
                of such computer.
            ``(4) Minor.--The term `minor' means an individual 
        who has not attained the age of 17.
            ``(5) Child pornography.--The term `child 
        pornography' has the meaning given that term in section 
        2256 of title 18, United States Code.
            ``(6) Harmful to minors.--The term `harmful to 
        minors' means any picture, image, graphic image file, 
        or other visual depiction that--
                    ``(A) taken as a whole and with respect to 
                minors, appeals to a prurient interest in 
                nudity, sex, or excretion;
                    ``(B) depicts, describes, or represents, in 
                a patently offensive way with respect to what 
                is suitable for minors, an actual or simulated 
                sexual act or sexual contact, actual or 
                simulated normal or perverted sexual acts, or a 
                lewd exhibition of the genitals; and
                    ``(C) taken as a whole, lacks serious 
                literary, artistic, political, or scientific 
                value as to minors.
            ``(7) Obscene.--The term `obscene' has the meaning 
        applicable to that term under section 1460 of title 18, 
        United States Code.
            ``(8) Sexual act and sexual contact.--The terms 
        `sexual act' and `sexual contact' have the meanings 
        given those terms in section 2246 of title 18, United 
        States Code.
    ``(f) Severability.--If any provision of this section is 
held invalid, the remainder of this section shall not be 
affected thereby.''.

SEC. 202. CONTINUATION OF AWARDS.

    Notwithstanding any other provision of this Act or the 
Elementary and Secondary Education Act of 1965, in the case 
of--
            (1) a person or entity that, prior to the date of 
        enactment of this Act, was awarded funds appropriated 
        under the Department of Education Appropriations Act, 
        2001 for new teacher recruitment initiatives; or
            (2) a person or agency that, prior to the date of 
        enactment of this Act, was awarded a grant or contract 
        under part K of title X of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 8331 et seq.),

the Secretary of Education shall continue to provide funds in 
accordance with the terms of such award until the date on which 
the award period terminates.

  TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT STUDENTS

SEC. 301. LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT CHILDREN 
                    AND IMMIGRANT CHILDREN AND YOUTH.

    Title III (20 U.S.C. 6801 et seq.) is amended to read as 
follows:

 ``TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT STUDENTS

``SEC. 3001. AUTHORIZATIONS OF APPROPRIATIONS; CONDITION ON 
                    EFFECTIVENESS OF PARTS.

    ``(a) Authorizations of Appropriations.--
            ``(1) In general.--Subject to subsection (b), there 
        are authorized to be appropriated to carry out this 
        title, except for subpart 4 of part B, $750,000,000 for 
        fiscal year 2002 and such sums as may be necessary for 
        each of the 5 succeeding fiscal years.
            ``(2) Emergency immigrant education program.--There 
        are authorized to be appropriated to carry out subpart 
        4 of part B (when such part is in effect) such sums as 
        may be necessary for fiscal year 2002 and each of the 5 
        succeeding fiscal years.
    ``(b) Conditions on Effectiveness of Parts A and B.--
            ``(1) Part a.--Part A shall be in effect for any 
        fiscal year for which the amount appropriated under 
        paragraphs (1) and (2) of subsection (a) equals or 
        exceeds $650,000,000.
            ``(2) Part b.--Part B shall be in effect only for a 
        fiscal year for which part A is not in effect.
    ``(c) References.--In any fiscal year for which part A is 
in effect, references in Federal law (other than this title) to 
part B shall be considered to be references to part A. In any 
fiscal year for which part B is in effect, references in 
Federal law (other than this title) to part A shall be 
considered to be references to part B.

   ``PART A--ENGLISH LANGUAGE ACQUISITION, LANGUAGE ENHANCEMENT, AND 
                        ACADEMIC ACHIEVEMENT ACT

``SEC. 3101. SHORT TITLE.

    ``This part may be cited as the `English Language 
Acquisition, Language Enhancement, and Academic Achievement 
Act'.

``SEC. 3102. PURPOSES.

    ``The purposes of this part are--
            ``(1) to help ensure that children who are limited 
        English proficient, including immigrant children and 
        youth, attain English proficiency, develop high levels 
        of academic attainment in English, and meet the same 
        challenging State academic content and student academic 
        achievement standards as all children are expected to 
        meet;
            ``(2) to assist all limited English proficient 
        children, including immigrant children and youth, to 
        achieve at high levels in the core academic subjects so 
        that those children can meet the same challenging State 
        academic content and student academic achievement 
        standards as all children are expected to meet, 
        consistent with section 1111(b)(1);
            ``(3) to develop high-quality language instruction 
        educational programs designed to assist State 
        educational agencies, local educational agencies, and 
        schools in teaching limited English proficient children 
        and serving immigrant children and youth;
            ``(4) to assist State educational agencies and 
        local educational agencies to develop and enhance their 
        capacity to provide high-quality instructional programs 
        designed to prepare limited English proficient 
        children, including immigrant children and youth, to 
        enter all-English instruction settings;
            ``(5) to assist State educational agencies, local 
        educational agencies, and schools to build their 
        capacity to establish, implement, and sustain language 
        instruction educational programs and programs of 
        English language development for limited English 
        proficient children;
            ``(6) to promote parental and community 
        participation in language instruction educational 
        programs for the parents and communities of limited 
        English proficient children;
            ``(7) to streamline language instruction 
        educational programs into a program carried out through 
        formula grants to State educational agencies and local 
        educational agencies to help limited English proficient 
        children, including immigrant children and youth, 
        develop proficiency in English, while meeting 
        challenging State academic content and student academic 
        achievement standards;
            ``(8) to hold State educational agencies, local 
        educational agencies, and schools accountable for 
        increases in English proficiency and core academic 
        content knowledge of limited English proficient 
        children by requiring--
                    ``(A) demonstrated improvements in the 
                English proficiency of limited English 
                proficient children each fiscal year; and
                    ``(B) adequate yearly progress for limited 
                English proficient children, including 
                immigrant children and youth, as described in 
                section 1111(b)(2)(B); and
            ``(9) to provide State educational agencies and 
        local educational agencies with the flexibility to 
        implement language instruction educational programs, 
        based on scientifically based research on teaching 
        limited English proficient children, that the agencies 
        believe to be the most effective for teaching English.

``Subpart 1--Grants and Subgrants for English Language Acquisition and 
                          Language Enhancement

``SEC. 3111. FORMULA GRANTS TO STATES.

    ``(a) In General.--In the case of each State educational 
agency having a plan approved by the Secretary for a fiscal 
year under section 3113, the Secretary shall make a grant for 
the year to the agency for the purposes specified in subsection 
(b). The grant shall consist of the allotment determined for 
the State educational agency under subsection (c).
    ``(b) Use of Funds.--
            ``(1) Subgrants to eligible entities.--The 
        Secretary may make a grant under subsection (a) only if 
        the State educational agency involved agrees to expend 
        at least 95 percent of the State educational agency's 
        allotment under subsection (c) for a fiscal year--
                    ``(A) to award subgrants, from allocations 
                under section 3114, to eligible entities to 
                carry out the activities described in section 
                3115 (other than subsection (e)); and
                    ``(B) to award subgrants under section 
                3114(d)(1) to eligible entities that are 
                described in that section to carry out the 
                activities described in section 3115(e).
            ``(2) State activities.--Subject to paragraph (3), 
        each State educational agency receiving a grant under 
        subsection (a) may reserve not more than 5 percent of 
        the agency's allotment under subsection (c) to carry 
        out one or more of the following activities:
                    ``(A) Professional development activities, 
                and other activities, that assist personnel in 
                meeting State and local certification and 
                licensing requirements for teaching limited 
                English proficient children.
                    ``(B) Planning, evaluation, administration, 
                and interagency coordination related to the 
                subgrants referred to in paragraph (1).
                    ``(C) Providing technical assistance and 
                other forms of assistance to eligible entities 
                that are receiving subgrants from a State 
                educational agency under this subpart, 
                including assistance in--
                            ``(i) identifying and implementing 
                        language instruction educational 
                        programs and curricula that are based 
                        on scientifically based research on 
                        teaching limited English proficient 
                        children;
                            ``(ii) helping limited English 
                        proficient children meet the same 
                        challenging State academic content and 
                        student academic achievement standards 
                        as all children are expected to meet;
                            ``(iii) identifying or developing, 
                        and implementing, measures of English 
                        proficiency; and
                            ``(iv) promoting parental and 
                        community participation in programs 
                        that serve limited English proficient 
                        children.
                    ``(D) Providing recognition, which may 
                include providing financial awards, to 
                subgrantees that have exceeded their annual 
                measurable achievement objectives pursuant to 
                section 3122.
            ``(3) Administrative expenses.--From the amount 
        reserved under paragraph (2), a State educational 
        agency may use not more than 60 percent of such amount 
        or $175,000, whichever is greater, for the planning and 
        administrative costs of carrying out paragraphs (1) and 
        (2).
    ``(c) Reservations and Allotments.--
            ``(1) Reservations.--From the amount appropriated 
        under section 3001(a) for each fiscal year, the 
        Secretary shall reserve--
                    ``(A) 0.5 percent or $5,000,000 of such 
                amount, whichever is greater, for payments to 
                eligible entities that are defined under 
                section 3112(a) for activities, approved by the 
                Secretary, consistent with this subpart;
                    ``(B) 0.5 percent of such amount for 
                payments to outlying areas, to be allotted in 
                accordance with their respective needs for 
                assistance under this subpart, as determined by 
                the Secretary, for activities, approved by the 
                Secretary, consistent with this subpart;
                    ``(C) 6.5 percent of such amount for 
                national activities under sections 3131 and 
                3303, except that not more than 0.5 percent of 
                such amount shall be reserved for evaluation 
                activities conducted by the Secretary and not 
                more than $2,000,000 of such amount may be 
                reserved for the National Clearinghouse for 
                English Language Acquisition and Language 
                Instruction Educational Programs described in 
                section 3303; and
                    ``(D) such sums as may be necessary to make 
                continuation awards under paragraph (2).
            ``(2) Continuation awards.--
                    ``(A) In general.--Before making allotments 
                to State educational agencies under paragraph 
                (3) for any fiscal year, the Secretary shall 
                use the sums reserved under paragraph (1)(D) to 
                make continuation awards to recipients who 
                received grants or fellowships for the fiscal 
                year preceding any fiscal year described in 
                section 3001(b)(1)(A) under--
                            ``(i) subparts 1 and 3 of part A of 
                        title VII (as in effect on the day 
                        before the date of enactment of the No 
                        Child Left Behind Act of 2001); or
                            ``(ii) subparts 1 and 3 of part B 
                        of this title.
                    ``(B) Use of funds.--The Secretary shall 
                make the awards in order to allow such 
                recipients to receive awards for the complete 
                period of their grants or fellowships under the 
                appropriate subparts.
            ``(3) State allotments.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), from the amount appropriated 
                under section 3001(a) for each fiscal year that 
                remains after making the reservations under 
                paragraph (1), the Secretary shall allot to 
                each State educational agency having a plan 
                approved under section 3113(c)--
                            ``(i) an amount that bears the same 
                        relationship to 80 percent of the 
                        remainder as the number of limited 
                        English proficient children in the 
                        State bears to the number of such 
                        children in all States; and
                            ``(ii) an amount that bears the 
                        same relationship to 20 percent of the 
                        remainder as the number of immigrant 
                        children and youth in the State bears 
                        to the number of such children and 
                        youth in all States.
                    ``(B) Minimum allotments.--No State 
                educational agency shall receive an allotment 
                under this paragraph that is less than 
                $500,000.
                    ``(C) Reallotment.--If any State 
                educational agency described in subparagraph 
                (A) does not submit a plan to the Secretary for 
                a fiscal year, or submits a plan (or any 
                amendment to a plan) that the Secretary, after 
                reasonable notice and opportunity for a 
                hearing, determines does not satisfy the 
                requirements of this subpart, the Secretary--
                            ``(i) shall endeavor to make the 
                        State's allotment available on a 
                        competitive basis to specially 
                        qualified agencies within the State to 
                        satisfy the requirements of section 
                        3115 (and any additional requirements 
                        that the Secretary may impose), 
                        consistent with the purposes of such 
                        section, and to carry out required and 
                        authorized activities under such 
                        section; and
                            ``(ii) shall reallot any portion of 
                        such allotment remaining after the 
                        application of clause (i) to the 
                        remaining State educational agencies in 
                        accordance with subparagraph (A).
                    ``(D) Special rule for puerto rico.--The 
                total amount allotted to Puerto Rico for any 
                fiscal year under subparagraph (A) shall not 
                exceed 0.5 percent of the total amount allotted 
                to all States for that fiscal year.
            ``(4) Use of data for determinations.--
                    ``(A) In general.--In making State 
                allotments under paragraph (3), for the purpose 
                of determining the number of limited English 
                proficient children in a State and in all 
                States, and the number of immigrant children 
                and youth in a State and in all States, for 
                each fiscal year, the Secretary shall use data 
                that will yield the most accurate, up-to-date 
                numbers of such children and youth.
                    ``(B) Special rule.--
                            ``(i) First 2 years.--In making 
                        determinations under subparagraph (A) 
                        for the 2 fiscal years following the 
                        date of enactment of the No Child Left 
                        Behind Act of 2001, the Secretary shall 
                        determine the number of limited English 
                        proficient children in a State and in 
                        all States, and the number of immigrant 
                        children and youth in a State and in 
                        all States, using data available from 
                        the Bureau of Census or submitted by 
                        the States to the Secretary.
                            ``(ii) Subsequent years.--For 
                        subsequent fiscal years, the Secretary 
                        shall determine the number of limited 
                        English proficient children in a State 
                        and in all States, and the number of 
                        immigrant children and youth in a State 
                        and in all States, using the more 
                        accurate of--
                                    ``(I) the data available 
                                from the American Community 
                                Survey available from the 
                                Department of Commerce; or
                                    ``(II) the number of 
                                children being assessed for 
                                English proficiency in a State 
                                as required under section 
                                1111(b)(7).

``SEC. 3112. NATIVE AMERICAN AND ALASKA NATIVE CHILDREN IN SCHOOL.

    ``(a) Eligible Entities.--For the purpose of carrying out 
programs under this part for individuals served by elementary 
schools, secondary schools, and postsecondary schools operated 
predominately for Native American children (including Alaska 
Native children), the following shall be considered to be an 
eligible entity:
            ``(1) An Indian tribe.
            ``(2) A tribally sanctioned educational authority.
            ``(3) A Native Hawaiian or Native American Pacific 
        Islander native language educational organization.
            ``(4) An elementary school or secondary school that 
        is operated or funded by the Bureau of Indian Affairs, 
        or a consortium of such schools.
            ``(5) An elementary school or secondary school 
        operated under a contract with or grant from the Bureau 
        of Indian Affairs, in consortium with another such 
        school or a tribal or community organization.
            ``(6) An elementary school or secondary school 
        operated by the Bureau of Indian Affairs and an 
        institution of higher education, in consortium with an 
        elementary school or secondary school operated under a 
        contract with or grant from the Bureau of Indian 
        Affairs or a tribal or community organization.
    ``(b) Submission of Applications for Assistance.--
Notwithstanding any other provision of this part, an entity 
that is considered to be an eligible entity under subsection 
(a), and that desires to receive Federal financial assistance 
under this subpart, shall submit an application to the 
Secretary.
    ``(c) Special Rule.--An eligible entity described in 
subsection (a) that receives Federal financial assistance 
pursuant to this section shall not be eligible to receive a 
subgrant under section 3114.

``SEC. 3113. STATE AND SPECIALLY QUALIFIED AGENCY PLANS.

    ``(a) Plan Required.--Each State educational agency and 
specially qualified agency desiring a grant under this subpart 
shall submit a plan to the Secretary at such time, in such 
manner, and containing such information as the Secretary may 
require.
    ``(b) Contents.--Each plan submitted under subsection (a) 
shall--
            ``(1) describe the process that the agency will use 
        in making subgrants to eligible entities under section 
        3114(d)(1);
            ``(2) describe how the agency will establish 
        standards and objectives for raising the level of 
        English proficiency that are derived from the 4 
        recognized domains of speaking, listening, reading, and 
        writing, and that are aligned with achievement of the 
        challenging State academic content and student academic 
        achievement standards described in section 1111(b)(1);
            ``(3) contain an assurance that--
                    ``(A) in the case of a State educational 
                agency, the agency consulted with local 
                educational agencies, education-related 
                community groups and nonprofit organizations, 
                parents, teachers, school administrators, and 
                researchers, in developing the annual 
                measurable achievement objectives described in 
                section 3122;
                    ``(B) in the case of a specially qualified 
                agency, the agency consulted with education-
                related community groups and nonprofit 
                organizations, parents, teachers, and 
                researchers, in developing the annual 
                measurable achievement objectives described in 
                section 3122;
                    ``(C) the agency will ensure that eligible 
                entities receiving a subgrant under this 
                subpart comply with the requirement in section 
                1111(b)(7) to annually assess in English 
                children who have been in the United States for 
                3 or more consecutive years;
                    ``(D) the agency will ensure that eligible 
                entities receiving a subgrant under this 
                subpart annually assess the English proficiency 
                of all limited English proficient children 
                participating in a program funded under this 
                subpart, consistent with section 1111(b)(7);
                    ``(E) in awarding subgrants under section 
                3114, the agency will address the needs of 
                school systems of all sizes and in all 
                geographic areas, including school systems with 
                rural and urban schools;
                    ``(F) subgrants to eligible entities under 
                section 3114(d)(1) will be of sufficient size 
                and scope to allow such entities to carry out 
                high-quality language instruction educational 
                programs for limited English proficient 
                children; and
                    ``(G) the agency will require an eligible 
                entity receiving a subgrant under this subpart 
                to use the subgrant in ways that will build 
                such recipient's capacity to continue to offer 
                high-quality language instruction educational 
                programs that assist limited English proficient 
                children in meeting challenging State academic 
                content and student academic achievement 
                standards once assistance under this subpart is 
                no longer available;
            ``(4) describe how the agency will coordinate its 
        programs and activities under this subpart with its 
        other programs and activities under this Act and other 
        Acts, as appropriate;
            ``(5) describe how the agency will hold local 
        educational agencies, eligible entities, elementary 
        schools, and secondary schools accountable for--
                    ``(A) meeting all annual measurable 
                achievement objectives described in section 
                3122;
                    ``(B) making adequate yearly progress for 
                limited English proficient children, as 
                described in section 1111(b)(2)(B); and
                    ``(C) achieving the purposes of this part; 
                and
            ``(6) describe how eligible entities in the State 
        will be given the flexibility to teach limited English 
        proficient children--
                    ``(A) using a language instruction 
                curriculum that is tied to scientifically based 
                research on teaching limited English proficient 
                children and that has been demonstrated to be 
                effective; and
                    ``(B) in the manner the eligible entities 
                determine to be the most effective.
    ``(c) Approval.--The Secretary, after using a peer review 
process, shall approve a plan submitted under subsection (a) if 
the plan meets the requirements of this section.
    ``(d) Duration of Plan.--
            ``(1) In general.--Each plan submitted by a State 
        educational agency or specially qualified agency and 
        approved under subsection (c) shall--
                    ``(A) remain in effect for the duration of 
                the agency's participation under this part; and
                    ``(B) be periodically reviewed and revised 
                by the agency, as necessary, to reflect changes 
                to the agency's strategies and programs carried 
                out under this part.
            ``(2) Additional information.--
                    ``(A) Amendments.--If the State educational 
                agency or specially qualified agency amends the 
                plan, the agency shall submit such amendment to 
                the Secretary.
                    ``(B) Approval.--The Secretary shall 
                approve such amendment to an approved plan, 
                unless the Secretary determines that the 
                amendment will result in the agency not meeting 
                the requirements, or fulfilling the purposes, 
                of this part.
    ``(e) Consolidated Plan.--A plan submitted under subsection 
(a) may be submitted as part of a consolidated plan under 
section 9302.
    ``(f) Secretary Assistance.--The Secretary shall provide 
technical assistance, if requested, in the development of 
English proficiency standards, objectives, and assessments.

``SEC. 3114. WITHIN-STATE ALLOCATIONS.

    ``(a) In General.--After making the reservation required 
under subsection (d)(1), each State educational agency 
receiving a grant under section 3111(c)(3) shall award 
subgrants for a fiscal year by allocating to each eligible 
entity in the State having a plan approved under section 3116 
an amount that bears the same relationship to the amount 
received under the grant and remaining after making such 
reservation as the population of limited English proficient 
children in schools served by the eligible entity bears to the 
population of limited English proficient children in schools 
served by all eligible entities in the State.
    ``(b) Limitation.--A State educational agency shall not 
award a subgrant from an allocation made under subsection (a) 
if the amount of such subgrant would be less than $10,000.
    ``(c) Reallocation.--Whenever a State educational agency 
determines that an amount from an allocation made to an 
eligible entity under subsection (a) for a fiscal year will not 
be used by the entity for the purpose for which the allocation 
was made, the agency shall, in accordance with such rules as it 
determines to be appropriate, reallocate such amount, 
consistent with such subsection, to other eligible entities in 
the State that the agency determines will use the amount to 
carry out that purpose.
    ``(d) Required Reservation.--A State educational agency 
receiving a grant under this subpart for a fiscal year--
            ``(1) shall reserve not more than 15 percent of the 
        agency's allotment under section 3111(c)(3) to award 
        subgrants to eligible entities in the State that have 
        experienced a significant increase, as compared to the 
        average of the 2 preceding fiscal years, in the 
        percentage or number of immigrant children and youth, 
        who have enrolled, during the fiscal year preceding the 
        fiscal year for which the subgrant is made, in public 
        and nonpublic elementary schools and secondary schools 
        in the geographic areas under the jurisdiction of, or 
        served by, such entities; and
            ``(2) in awarding subgrants under paragraph (1)--
                    ``(A) shall equally consider eligible 
                entities that satisfy the requirement of such 
                paragraph but have limited or no experience in 
                serving immigrant children and youth; and
                    ``(B) shall consider the quality of each 
                local plan under section 3116 and ensure that 
                each subgrant is of sufficient size and scope 
                to meet the purposes of this part.

``SEC. 3115. SUBGRANTS TO ELIGIBLE ENTITIES.

    ``(a) Purposes of Subgrants.--A State educational agency 
may make a subgrant to an eligible entity from funds received 
by the agency under this subpart only if the entity agrees to 
expend the funds to improve the education of limited English 
proficient children, by assisting the children to learn English 
and meet challenging State academic content and student 
academic achievement standards. In carrying out activities with 
such funds, the entity shall use approaches and methodologies 
based on scientifically based research on teaching limited 
English proficient children and immigrant children and youth 
for the following purposes:
            ``(1) Developing and implementing new language 
        instruction educational programs and academic content 
        instruction programs for such children, and such 
        children and youth, including programs of early 
        childhood education, elementary school programs, and 
        secondary school programs.
            ``(2) Carrying out highly focused, innovative, 
        locally designed activities to expand or enhance 
        existing language instruction educational programs and 
        academic content instruction programs for such 
        children, and such children and youth.
            ``(3) Implementing, within an individual school, 
        schoolwide programs for restructuring, reforming, and 
        upgrading all relevant programs, activities, and 
        operations relating to language instruction educational 
        programs and academic content instruction for such 
        children, and such children and youth.
            ``(4) Implementing, within the entire jurisdiction 
        of a local educational agency, agencywide programs for 
        restructuring, reforming, and upgrading all relevant 
        programs, activities, and operations relating to 
        language instruction educational programs and academic 
        content instruction for such children, and such 
        children and youth.
    ``(b) Administrative Expenses.--Each eligible entity 
receiving funds under section 3114(a) for a fiscal year may use 
not more than 2 percent of such funds for the cost of 
administering this subpart.
    ``(c) Required Subgrantee Activities.--An eligible entity 
receiving funds under section 3114(a) shall use the funds--
            ``(1) to increase the English proficiency of 
        limited English proficient children by providing high-
        quality language instruction educational programs that 
        are based on scientifically based research 
        demonstrating the effectiveness of the programs in 
        increasing--
                    ``(A) English proficiency; and
                    ``(B) student academic achievement in the 
                core academic subjects; and
            ``(2) to provide high-quality professional 
        development to classroom teachers (including teachers 
        in classroom settings that are not the settings of 
        language instruction educational programs), principals, 
        administrators, and other school or community-based 
        organizational personnel, that is--
                    ``(A) designed to improve the instruction 
                and assessment of limited English proficient 
                children;
                    ``(B) designed to enhance the ability of 
                such teachers to understand and use curricula, 
                assessment measures, and instruction strategies 
                for limited English proficient children;
                    ``(C) based on scientifically based 
                research demonstrating the effectiveness of the 
                professional development in increasing 
                children's English proficiency or substantially 
                increasing the subject matter knowledge, 
                teaching knowledge, and teaching skills of such 
                teachers; and
                    ``(D) of sufficient intensity and duration 
                (which shall not include activities such as 
                one-day or short-term workshops and 
                conferences) to have a positive and lasting 
                impact on the teachers' performance in the 
                classroom, except that this subparagraph shall 
                not apply to an activity that is one component 
                of a long-term, comprehensive professional 
                development plan established by a teacher and 
                the teacher's supervisor based on an assessment 
                of the needs of the teacher, the supervisor, 
                the students of the teacher, and any local 
                educational agency employing the teacher.
    ``(d) Authorized Subgrantee Activities.--Subject to 
subsection (c), an eligible entity receiving funds under 
section 3114(a) may use the funds to achieve one of the 
purposes described in subsection (a) by undertaking one or more 
of the following activities:
            ``(1) Upgrading program objectives and effective 
        instruction strategies.
            ``(2) Improving the instruction program for limited 
        English proficient children by identifying, acquiring, 
        and upgrading curricula, instruction materials, 
        educational software, and assessment procedures.
            ``(3) Providing--
                    ``(A) tutorials and academic or vocational 
                education for limited English proficient 
                children; and
                    ``(B) intensified instruction.
            ``(4) Developing and implementing elementary school 
        or secondary school language instruction educational 
        programs that are coordinated with other relevant 
        programs and services.
            ``(5) Improving the English proficiency and 
        academic achievement of limited English proficient 
        children.
            ``(6) Providing community participation programs, 
        family literacy services, and parent outreach and 
        training activities to limited English proficient 
        children and their families--
                    ``(A) to improve the English language 
                skills of limited English proficient children; 
                and
                    ``(B) to assist parents in helping their 
                children to improve their academic achievement 
                and becoming active participants in the 
                education of their children.
            ``(7) Improving the instruction of limited English 
        proficient children by providing for--
                    ``(A) the acquisition or development of 
                educational technology or instructional 
                materials;
                    ``(B) access to, and participation in, 
                electronic networks for materials, training, 
                and communication; and
                    ``(C) incorporation of the resources 
                described in subparagraphs (A) and (B) into 
                curricula and programs, such as those funded