Text: H.R.1 — 107th Congress (2001-2002)All Bill Information (Except Text)

Text available as:

Shown Here:
Public Law No: 107-110 (01/08/2002)

 
[107th Congress Public Law 110]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ110.107]


[[Page 115 STAT. 1425]]

Public Law 107-110
107th Congress

                                 An Act


 
   To close the achievement gap with accountability, flexibility, and 
 choice, so that no child is left behind. <<NOTE: Jan. 8, 2002 -  [H.R. 
                                  1]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: No Child Left 
Behind Act of 2001. Education. Inter-governmental relations.>> 

SECTION 1. SHORT TITLE. <<NOTE: 20 USC 6301 note.>> 

    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.
Sec. 6. Table of contents of Elementary and Secondary Education Act of 
           1965.

    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, Native Hawaiians, and Alaska Natives.
Sec. 702. Conforming amendments.
Sec. 703. Savings provisions.

                     TITLE VIII--IMPACT AID PROGRAM

Sec. 801. Payments relating to Federal acquisition of real property.

[[Page 115 STAT. 1426]]

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. <<NOTE: 20 USC 6301 note.>> 

    (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.

[[Page 115 STAT. 1427]]

    (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. <<NOTE: 20 USC 6301 note.>> 

    (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, <<NOTE: 20 USC 6301 
        note.>>  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.

[[Page 115 STAT. 1428]]

``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.

[[Page 115 STAT. 1429]]

 ``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.

                   ``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.

[[Page 115 STAT. 1430]]

``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.

[[Page 115 STAT. 1431]]

                  ``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.

[[Page 115 STAT. 1432]]

``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.

[[Page 115 STAT. 1433]]

``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.

[[Page 115 STAT. 1434]]

                    ``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.

[[Page 115 STAT. 1435]]

   ``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.

[[Page 115 STAT. 1436]]

``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. Termination.

   ``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 purpose.
``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.

[[Page 115 STAT. 1437]]

                ``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. orization 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.

[[Page 115 STAT. 1438]]

``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--Aalaska 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.

[[Page 115 STAT. 1439]]

``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. <<NOTE: 20 USC 6301.>> 

    ``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,

[[Page 115 STAT. 1440]]

        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. <<NOTE: 20 USC 6302.>> 

    ``(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.--

[[Page 115 STAT. 1441]]

            ``(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.

[[Page 115 STAT. 1442]]

    ``(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. <<NOTE: 20 USC 6303.>>  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) <<NOTE: Public information. Records.>>  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.--

[[Page 115 STAT. 1443]]

            ``(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 two 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

[[Page 115 STAT. 1444]]

        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. <<NOTE: 20 USC 6304.>> 

    ``(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. <<NOTE: 20 USC 6311.>> 

    ``(a) Plans Required.--
            ``(1) In general.--For any State desiring to receive a grant 
        under this part, the State educational agency shall submit to 
        the Secretary a plan, developed by the State educational agency, 
        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

[[Page 115 STAT. 1445]]

                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 two 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

[[Page 115 STAT. 1446]]

                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

[[Page 115 STAT. 1447]]

                                            ``(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 (defined as the percentage of 
                      students who graduate from secondary school with a 
                      regular diploma in the standard number of years) 
                      and at least one 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

[[Page 115 STAT. 1448]]

                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 2 years; and
                          ``(iii) provide for each following increase to 
                      occur in not more than 3 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

[[Page 115 STAT. 1449]]

                      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.
                    ``(K) Accountability for charter schools.--The 
                accountability provisions under this Act shall be 
                overseen for charter schools in accordance with State 
                charter school law.
            ``(3) Academic assessments.--
                    ``(A) In general.--Each State plan shall demonstrate 
                that the State educational agency, 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 educational 
                agency 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--

[[Page 115 STAT. 1450]]

                          ``(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 educational 
                      agency 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) <<NOTE: Deadline.>>  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

[[Page 115 STAT. 1451]]

                                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 three 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 two 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

[[Page 115 STAT. 1452]]

                      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 6113(a)(2) 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

[[Page 115 STAT. 1453]]

        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. <<NOTE: Deadline.>> --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 educational agency, 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

[[Page 115 STAT. 1454]]

                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 educational 
                agency 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 educational 
        agency will coordinate and collaborate, to the extent feasible 
        and necessary as determined by the State educational agency, 
        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 educational agency 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) <<NOTE: Deadline.>>  the State educational agency 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 educational agency 1 additional year if 
        the State 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 State, prevented full implementation of this paragraph by 
        that deadline and that the State will complete implementation 
        within the additional 1-year period;
            ``(2) <<NOTE: Deadline.>>  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;

[[Page 115 STAT. 1455]]

            ``(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) <<NOTE: Notification.>>  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 educational agency will coordinate 
        activities funded under this part with other Federal activities 
        as appropriate; and

[[Page 115 STAT. 1456]]

            ``(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 educational agency 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) <<NOTE: Establishment.>>  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) <<NOTE: Deadline.>>  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 plan shall be revised by the 
        State educational agency if it is 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

[[Page 115 STAT. 1457]]

                    ``(B) be periodically reviewed and revised as 
                necessary by the State educational agency to reflect 
                changes in the State's strategies and programs under 
                this part.
            ``(2) Additional information.--If significant changes are 
        made to a State's 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, such information shall be submitted 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) <<NOTE: Deadline.>>  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

[[Page 115 STAT. 1458]]

                      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)(C)(vi);
                          ``(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

[[Page 115 STAT. 1459]]

                          ``(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) <<NOTE: Deadline.>>  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 educational 
                      agency 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 educational 
                      agency 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 educational 
                agency 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

[[Page 115 STAT. 1460]]

                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) <<NOTE: Deadline.>>  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) <<NOTE: Deadlines.>>  Annual state report to the 
        secretary.--Each State educational agency 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;

[[Page 115 STAT. 1461]]

                    ``(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) <<NOTE: Notification.>>  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 four 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

[[Page 115 STAT. 1462]]

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) <<NOTE: Applicability.>>  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. <<NOTE: 20 USC 6312.>> 

    ``(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

[[Page 115 STAT. 1463]]

                      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

[[Page 115 STAT. 1464]]

                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

[[Page 115 STAT. 1465]]

                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;

[[Page 115 STAT. 1466]]

                    ``(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 end of the 2001-2002 school 
                year;
                    ``(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) <<NOTE: Procedures.>>  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

[[Page 115 STAT. 1467]]

        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) <<NOTE: Deadline.>>  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

[[Page 115 STAT. 1468]]

                      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) <<NOTE: Deadline.>>  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) <<NOTE: Deadline.>>  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

[[Page 115 STAT. 1469]]

        education program on the basis of a surname or language-minority 
        status.

``SEC. 1113. <<NOTE: 20 USC 6313.>>  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).

[[Page 115 STAT. 1470]]

            ``(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

[[Page 115 STAT. 1471]]

        (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. <<NOTE: 20 USC 6314.>>  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

[[Page 115 STAT. 1472]]

                          ``(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

[[Page 115 STAT. 1473]]

                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.

[[Page 115 STAT. 1474]]

                    ``(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) <<NOTE: Records.>>  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

[[Page 115 STAT. 1475]]

                                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. <<NOTE: 20 USC 6315.>> 

    ``(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.

[[Page 115 STAT. 1476]]

            ``(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

[[Page 115 STAT. 1477]]

                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--

[[Page 115 STAT. 1478]]

                    ``(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. <<NOTE: 20 USC 6316.>>  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

[[Page 115 STAT. 1479]]

                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

[[Page 115 STAT. 1480]]

                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) <<NOTE: Deadline. Public information.>>  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) <<NOTE: Deadline.>>  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--

[[Page 115 STAT. 1481]]

                                    ``(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) <<NOTE: Deadline.>>  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) <<NOTE: Deadline.>>  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.

[[Page 115 STAT. 1482]]

                    ``(E) Local educational agency approval.--The local 
                educational agency, within 45 days of receiving a school 
                plan, shall--
                          ``(i) <<NOTE: Establishment.>>  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

[[Page 115 STAT. 1483]]

        part that fails to make adequate yearly progress, as set out in 
        the State's plan 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).

[[Page 115 STAT. 1484]]

                    ``(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.

[[Page 115 STAT. 1485]]

                    ``(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) <<NOTE: Deadline.>>  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 educational agency, 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

[[Page 115 STAT. 1486]]

                      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

[[Page 115 STAT. 1487]]

        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 two 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),

[[Page 115 STAT. 1488]]

        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) <<NOTE: Deadline.>>  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) <<NOTE: Deadline.>>  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

[[Page 115 STAT. 1489]]

                      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) <<NOTE: Deadline.>>  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--

[[Page 115 STAT. 1490]]

                          ``(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 one additional action described 
                      under this subparagraph.

[[Page 115 STAT. 1491]]

                    ``(D) <<NOTE: Notice. Deadline.>>  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) <<NOTE: Publication.>>  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 two consecutive school years 
        beginning after the date of identification of the agency under 
        paragraph (3), the State educational agency need no longer 
        identify the local educational agency for improvement or 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;

[[Page 115 STAT. 1492]]

                          ``(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) <<NOTE: Records.>>  maintain an updated list 
                of approved providers across the State, by school 
                district, from which parents may select;

[[Page 115 STAT. 1493]]

                    ``(D) <<NOTE: Reports. Public information.>>  
                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) <<NOTE: Notice.>>  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.--

[[Page 115 STAT. 1494]]

                    ``(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) <<NOTE: Deadline.>>  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

[[Page 115 STAT. 1495]]

                      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 two 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) <<NOTE: Deadline.>>  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,

[[Page 115 STAT. 1496]]

                      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 one 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. <<NOTE: Deadline.>>  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

[[Page 115 STAT. 1497]]

                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

[[Page 115 STAT. 1498]]

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. <<NOTE: 20 USC 6317.>>  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.

[[Page 115 STAT. 1499]]

                    ``(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 one 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

[[Page 115 STAT. 1500]]

                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.

[[Page 115 STAT. 1501]]

                    ``(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 in those 
                schools 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. <<NOTE: 20 USC 6318.>> 

    ``(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

[[Page 115 STAT. 1502]]

                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). <<NOTE: Notification.>>  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. <<NOTE: Public information.>>  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

[[Page 115 STAT. 1503]]

        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--

[[Page 115 STAT. 1504]]

                    ``(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;

[[Page 115 STAT. 1505]]

            ``(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. <<NOTE: 20 USC 6319.>>  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) <<NOTE: Deadline.>>  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

[[Page 115 STAT. 1506]]

                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) <<NOTE: Deadline.>>  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) <<NOTE: Deadlines.>>  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--

[[Page 115 STAT. 1507]]

                          ``(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) <<NOTE: Deadline.>>  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 (c).

    ``(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

[[Page 115 STAT. 1508]]

                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) <<NOTE: Deadline.>>  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. <<NOTE: 20 USC 6320.>>  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.

[[Page 115 STAT. 1509]]

            ``(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.

[[Page 115 STAT. 1510]]

            ``(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

[[Page 115 STAT. 1511]]

                          ``(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. <<NOTE: 20 USC 6321.>> 

    ``(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

[[Page 115 STAT. 1512]]

                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. <<NOTE: 20 USC 6322.>> 

    ``(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.

[[Page 115 STAT. 1513]]

    ``(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. <<NOTE: 20 USC 6331.>>  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

[[Page 115 STAT. 1514]]

        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

[[Page 115 STAT. 1515]]

        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. <<NOTE: 20 USC 6332.>> 

    ``(a) Allocation Formula.--Of the amount appropriated under section 
1002(a) to carry out this part for each of fiscal years 2002-2007 
(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

[[Page 115 STAT. 1516]]

        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) <<NOTE: Applicability.>>  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. <<NOTE: 20 USC 
            6333.>> 

    ``(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

[[Page 115 STAT. 1517]]

                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) <<NOTE: Public information.>>  the two 
                      Secretaries shall publicly disclose the reasons 
                      for their determination in detail; and
                          ``(ii) <<NOTE: Applicability.>>  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) <<NOTE: Deadline.>>  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.

[[Page 115 STAT. 1518]]

                    ``(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.--

[[Page 115 STAT. 1519]]

            ``(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 two 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) <<NOTE: Public information.>>  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,

[[Page 115 STAT. 1520]]

                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 four 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) <<NOTE: Deadline.>>  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

[[Page 115 STAT. 1521]]

            ``(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. <<NOTE: 20 USC 6334.>>  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).

[[Page 115 STAT. 1522]]

            ``(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. <<NOTE: 20 USC 6335.>>  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

[[Page 115 STAT. 1523]]

        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 two 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 two amounts determined under subparagraphs 
                (B) and (C).

[[Page 115 STAT. 1524]]

                    ``(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.

[[Page 115 STAT. 1525]]

``SEC. <<NOTE: 20 USC 6336.>> 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) Fifty-eight percent of all schools receive at least 
        some funding under this part, including many suburban schools 
        with predominantly well-off students.
            ``(4) One 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. <<NOTE: 20 USC 6337.>> 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

[[Page 115 STAT. 1526]]

                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.--

[[Page 115 STAT. 1527]]

                                    ``(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 one 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.

[[Page 115 STAT. 1528]]

            ``(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 two 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

[[Page 115 STAT. 1529]]

                      of the two 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 two 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

[[Page 115 STAT. 1530]]

                                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 two 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

[[Page 115 STAT. 1531]]

                                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 two 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

[[Page 115 STAT. 1532]]

                                    ``(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 two 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;

[[Page 115 STAT. 1533]]

                                    ``(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

[[Page 115 STAT. 1534]]

                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. <<NOTE: 20 USC 6338.>> 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 two 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 one 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. <<NOTE: 20 USC 6339.>> 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 one additional fiscal year.

[[Page 115 STAT. 1535]]

    ``(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. <<NOTE: 20 USC 6361.>> 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. <<NOTE: 20 USC 6362.>> 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).

[[Page 115 STAT. 1536]]

            ``(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 one-half 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 one-half 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 one-fourth 
                      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

[[Page 115 STAT. 1537]]

        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

[[Page 115 STAT. 1538]]

                    ``(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

[[Page 115 STAT. 1539]]

                      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 highly 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.

[[Page 115 STAT. 1540]]

            ``(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) <<NOTE: Reports. Public 
                      information. Internet.>> 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

[[Page 115 STAT. 1541]]

        not more than 25 percent of the amount of the funds made 
        available under paragraph (1) for one 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.

[[Page 115 STAT. 1542]]

                                    ``(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) <<NOTE: Deadline.>> 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

[[Page 115 STAT. 1543]]

        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. <<NOTE: 20 USC 6363.>> 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

[[Page 115 STAT. 1544]]

                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) three individuals selected by the 
                      Secretary;
                          ``(ii) three individuals selected by the 
                      National Institute for Literacy;
                          ``(iii) three individuals selected by the 
                      National Research Council of the National Academy 
                      of Sciences; and
                          ``(iv) three individuals selected by the 
                      National Institute of Child Health and Human 
                      Development.
                    ``(B) Experts.--The panel shall include--

[[Page 115 STAT. 1545]]

                          ``(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 
                one 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;

[[Page 115 STAT. 1546]]

                    ``(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. <<NOTE: 20 USC 6364.>> 1204. TARGETED ASSISTANCE GRANTS.

    ``(a) Eligibility Criteria for Awarding Targeted Assistance Grants 
to States.--Beginning <<NOTE: Effective date.>> 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,

[[Page 115 STAT. 1547]]

        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--

[[Page 115 STAT. 1548]]

                    ``(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. <<NOTE: 20 USC 6365.>> 1205. EXTERNAL EVALUATION.

    ``(a) <<NOTE: Contracts.>> 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. <<NOTE: 20 USC 6366.>> 1206. NATIONAL ACTIVITIES.

    ``From funds reserved under section 1202(b)(1)(C), the Secretary--

[[Page 115 STAT. 1549]]

            ``(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. <<NOTE: 20 USC 6367.>> 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. <<NOTE: 20 USC 6368.>> 1208. DEFINITIONS.

    ``In this subpart:
            ``(1) Eligible local educational agency.--The term `eligible 
        local educational agency' means a local educational agency 
        that--

[[Page 115 STAT. 1550]]

                    ``(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--

[[Page 115 STAT. 1551]]

                          ``(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.

[[Page 115 STAT. 1552]]

                    ``Subpart 2--Early Reading First

``SEC. <<NOTE: 20 USC 6371.>> 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 one 
                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 one 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 one 
                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.

[[Page 115 STAT. 1553]]

``SEC. <<NOTE: 20 USC 6372.>> 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, three 
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:

[[Page 115 STAT. 1554]]

            ``(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 one 
                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. <<NOTE: 20 USC 6373.>> 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. <<NOTE: 20 USC 6374.>> 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. <<NOTE: 20 USC 6375.>> 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;

[[Page 115 STAT. 1555]]

            ``(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. <<NOTE: 20 USC 6376.>> 1226. EVALUATION.

    ``(a) <<NOTE: Effective date. Termination date.>> 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) <<NOTE: Deadlines.>> 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. <<NOTE: 20 USC 6381.>> 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;

[[Page 115 STAT. 1556]]

                    ``(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. <<NOTE: 20 USC 6381a.>> 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

[[Page 115 STAT. 1557]]

                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 one 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 one 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

[[Page 115 STAT. 1558]]

        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 one-half 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. <<NOTE: 20 USC 6381b.>> 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--

[[Page 115 STAT. 1559]]

            ``(1) administration, which amount shall not exceed half of 
        the total;
            ``(2) providing, through one 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 one 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. <<NOTE: 20 USC 6381c.>> 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.

[[Page 115 STAT. 1560]]

            ``(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. <<NOTE: 20 USC 6381d.>> 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

[[Page 115 STAT. 1561]]

        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) <<NOTE: Deadline.>> 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;

[[Page 115 STAT. 1562]]

            ``(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. <<NOTE: 20 USC 6381e.>> 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.

[[Page 115 STAT. 1563]]

            ``(2) Special rule.--Any family participating in a program 
        assisted under this subpart that becomes ineligible to 
        participate as a result of one 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. <<NOTE: 20 USC 6381f.>> 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

[[Page 115 STAT. 1564]]

                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) may be submitted as part of a consolidated application under 
section 9305.

``SEC. <<NOTE: 20 USC 6381g.>> 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;

[[Page 115 STAT. 1565]]

                    ``(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 three members, including one early childhood professional, 
        one adult education professional, and one individual with 
        expertise in family literacy programs, and may include other 
        individuals, such as one 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

[[Page 115 STAT. 1566]]

                    ``(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. <<NOTE: 20 USC 6381h.>> 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. <<NOTE: 20 USC 6381i.>> 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. <<NOTE: 20 USC 6381j.>> 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--

[[Page 115 STAT. 1567]]

            ``(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. <<NOTE: 20 USC 6381k.>> 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. <<NOTE: 20 USC 6383.>> 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) one-half 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) one-half 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

[[Page 115 STAT. 1568]]

        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

[[Page 115 STAT. 1569]]

        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;

[[Page 115 STAT. 1570]]

                    ``(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

[[Page 115 STAT. 1571]]

        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. <<NOTE: 20 USC 6391.>> 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. <<NOTE: 20 USC 6392.>> 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. <<NOTE: 20 USC 6393.>> 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

[[Page 115 STAT. 1572]]

                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

[[Page 115 STAT. 1573]]

                    ``(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

[[Page 115 STAT. 1574]]

                    ``(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. <<NOTE: 20 USC 6394.>> 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,

[[Page 115 STAT. 1575]]

        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;

[[Page 115 STAT. 1576]]

                    ``(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. <<NOTE: 20 USC 6395.>> 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. <<NOTE: 20 USC 6396.>> 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 a 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

[[Page 115 STAT. 1577]]

                          ``(iii) the comprehensive State plan 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.

[[Page 115 STAT. 1578]]

``SEC. <<NOTE: 20 USC 6397.>> 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. <<NOTE: 20 USC 6398.>> 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) <<NOTE: Federal Register, 
                publication.>> 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

[[Page 115 STAT. 1579]]

                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. <<NOTE: Deadline.>> 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) <<NOTE: Deadline.>> 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. <<NOTE: 20 USC 6399.>> 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.

[[Page 115 STAT. 1580]]

            ``(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. <<NOTE: 20 USC 6421.>> 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. <<NOTE: 20 USC 6422.>> 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.

[[Page 115 STAT. 1581]]

                   ``Subpart 1--State Agency Programs

``SEC. <<NOTE: 20 USC 6431.>> 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. <<NOTE: 20 USC 6432.>> 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--

[[Page 115 STAT. 1582]]

                    ``(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. <<NOTE: 20 USC 6433.>> 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. <<NOTE: 20 USC 6434.>> 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;

[[Page 115 STAT. 1583]]

                          ``(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

[[Page 115 STAT. 1584]]

        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.

[[Page 115 STAT. 1585]]

``SEC. <<NOTE: 20 USC 6435.>> 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 andskills 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. <<NOTE: 20 USC 6436.>> 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

[[Page 115 STAT. 1586]]

        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. <<NOTE: 20 USC 6437.>> 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. <<NOTE: 20 USC 6438.>> 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--

[[Page 115 STAT. 1587]]

                          ``(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. <<NOTE: 20 USC 6439.>> 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. <<NOTE: 20 USC 6451.>> 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. <<NOTE: 20 USC 6452.>> 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

[[Page 115 STAT. 1588]]

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. <<NOTE: 20 USC 6453.>> 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;

[[Page 115 STAT. 1589]]

            ``(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. <<NOTE: 20 USC 6454.>> 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. <<NOTE: 20 USC 6455.>> 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--

[[Page 115 STAT. 1590]]

            ``(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. <<NOTE: 20 USC 6456.>> 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

[[Page 115 STAT. 1591]]

        or its recognized equivalent, or obtaining employment after such 
        children and youth are released.

                     ``Subpart 3--General Provisions

``SEC. <<NOTE: 20 USC 6471.>> 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. <<NOTE: 20 USC 6472.>> 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

[[Page 115 STAT. 1592]]

        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. <<NOTE: 20 USC 6491.>> 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 
                      State;

[[Page 115 STAT. 1593]]

                          ``(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(h)(2) 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) <<NOTE: Deadline.>> 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

[[Page 115 STAT. 1594]]

                      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 educational 
                      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 
                      educational 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) <<NOTE: Deadline.>> Interim report.--Not later 
                than 3 years after the date of enactment of the No Child 
                Left Behind Act

[[Page 115 STAT. 1595]]

                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) <<NOTE: Deadline.>> 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

[[Page 115 STAT. 1596]]

                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) <<NOTE: Establishment.>> 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 one-fourth 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--

[[Page 115 STAT. 1597]]

                          ``(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 two 
                      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. <<NOTE: 20 USC 6492.>> 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. <<NOTE: 20 USC 6493.>> 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,

[[Page 115 STAT. 1598]]

        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;
            ``(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) <<NOTE: Deadline. Public information.>> Reporting.--Not later 
than 3 years after the contract described in subsection (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, 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. <<NOTE: 20 USC 6494.>> 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

[[Page 115 STAT. 1599]]

                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.

[[Page 115 STAT. 1600]]

                    ``(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 one student from such 
                      teacher's school who participates in a program 
                      described in subsection (a)(1)(A);
                          ``(ii) no teacher shall receive more than one 
                      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;

[[Page 115 STAT. 1601]]

                          ``(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. <<NOTE: 20 USC 6511.>> 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. <<NOTE: 20 USC 6512.>> 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--

[[Page 115 STAT. 1602]]

                          ``(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. <<NOTE: 20 USC 6513.>> 1603. STATE APPLICATIONS.

    ``(a) In General.--Each State educational agency that desires to 
receive a grant under this part 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 part;
            ``(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

[[Page 115 STAT. 1603]]

            ``(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. <<NOTE: 20 USC 6514.>> 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 two 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

[[Page 115 STAT. 1604]]

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. <<NOTE: 20 USC 6515.>> 1605. LOCAL APPLICATIONS.

    ``(a) In General.--Each local educational agency or consortium of 
local educational agencies desiring a subgrant under this part 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. <<NOTE: 20 USC 6516.>> 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;

[[Page 115 STAT. 1605]]

            ``(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. <<NOTE: 20 USC 6517.>> 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. <<NOTE: 20 USC 6518.>> 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

[[Page 115 STAT. 1606]]

        for comprehensive school reform providers to expand their work 
        in more schools, assure quality, and promote financial 
        stability.

  ``PART <<NOTE: Access to High Standards Act.>> G--ADVANCED PLACEMENT 
PROGRAMS

``SEC. <<NOTE: 20 USC 6531.>> 1701. SHORT TITLE.

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

``SEC. <<NOTE: 20 USC 6532.>> 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. <<NOTE: 20 USC 6533.>> 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. <<NOTE: 20 USC 6534.>> 1704. ADVANCED PLACEMENT TEST FEE PROGRAM.

    ``(a) Grants Authorized.--From amounts made available under section 
1703 for a fiscal year, the Secretary shall award

[[Page 115 STAT. 1607]]

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) <<NOTE: Records.>> 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.

[[Page 115 STAT. 1608]]

``SEC. <<NOTE: 20 USC 6535.>> 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

[[Page 115 STAT. 1609]]

                    ``(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) <<NOTE: Records.>> 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. <<NOTE: 20 USC 6536.>> 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. <<NOTE: 20 USC 6537.>> 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,

[[Page 115 STAT. 1610]]

        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 <<NOTE: Dropout Prevention Act.>> H--SCHOOL DROPOUT PREVENTION

``SEC. <<NOTE: 20 USC 6551.>> 1801. SHORT TITLE.

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

``SEC. <<NOTE: 20 USC 6552.>> 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. <<NOTE: 20 USC 6553.>> 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. <<NOTE: 20 USC 6555.>> 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;

[[Page 115 STAT. 1611]]

            ``(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 
        one 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.--

[[Page 115 STAT. 1612]]

                    ``(A) Number.--The Secretary may award not more than 
                five 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. <<NOTE: 20 USC 6561.>> 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. <<NOTE: 20 USC 6561a.>> 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

[[Page 115 STAT. 1613]]

                                            ``(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

[[Page 115 STAT. 1614]]

                    ``(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. <<NOTE: 20 USC 6561b.>> 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

[[Page 115 STAT. 1615]]

                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. <<NOTE: 20 USC 6561c.>> 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. <<NOTE: 20 USC 6561d.>> 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

[[Page 115 STAT. 1616]]

            ``(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. <<NOTE: 20 USC 6561e.>> 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. <<NOTE: 20 USC 6561f.>> 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. <<NOTE: 20 USC 6561g.>> 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. <<NOTE: 20 USC 6561h.>> 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. <<NOTE: 20 USC 6561i.>> 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

[[Page 115 STAT. 1617]]

                    ``(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. <<NOTE: 20 USC 6571.>> 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) <<NOTE: Federal Register, publication.>> 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) <<NOTE: Deadline.>> 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) <<NOTE: Deadline.>> shall be conducted in a 
                timely manner to ensure that final regulations are 
                issued by the Secretary not later

[[Page 115 STAT. 1618]]

                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. <<NOTE: 20 USC 6572.>> 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. <<NOTE: 20 USC 6573.>> 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.

[[Page 115 STAT. 1619]]

            ``(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. <<NOTE: 20 USC 6574.>> 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) <<NOTE: Deadline.>> 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. <<NOTE: 20 USC 6575.>> 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. <<NOTE: 20 USC 6576.>> 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. <<NOTE: 20 USC 6577.>> 1907. STATE REPORT ON DROPOUT DATA.

    ``Not <<NOTE: Deadline.>> later than 1 year after a State 
educational agency receives funds under this title, the agency shall 
report to the Secretary

[[Page 115 STAT. 1620]]

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. <<NOTE: 20 USC 6578.>> 1908. REGULATIONS FOR SECTIONS 1111 AND 
            1116.

    ``The <<NOTE: Deadline.>> 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. <<NOTE: 20 USC 6601.>> 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. <<NOTE: 20 USC 6602.>> 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.

[[Page 115 STAT. 1621]]

            ``(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. <<NOTE: 20 USC 6603.>> 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. <<NOTE: 20 USC 6611.>> 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) one-half 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

[[Page 115 STAT. 1622]]

                          ``(ii) one-half 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 
                      one-half 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.

[[Page 115 STAT. 1623]]

``SEC. <<NOTE: 20 USC 6612.>> 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

[[Page 115 STAT. 1624]]

        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.

[[Page 115 STAT. 1625]]

``SEC. 2113. STATE USE OF FUNDS. <<NOTE: 20 USC 6613.>> 

    ``(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,

[[Page 115 STAT. 1626]]

        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.

[[Page 115 STAT. 1627]]

            ``(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. <<NOTE: 20 USC 
            6621.>> 

    ``(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.--

[[Page 115 STAT. 1628]]

                    ``(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. <<NOTE: 20 USC 
            6622.>> 

    ``(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.

[[Page 115 STAT. 1629]]

    ``(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;

[[Page 115 STAT. 1630]]

                    ``(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. <<NOTE: 20 USC 6623.>> 

    ``(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

[[Page 115 STAT. 1631]]

                          ``(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,

[[Page 115 STAT. 1632]]

                      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.

[[Page 115 STAT. 1633]]

    ``(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. <<NOTE: 20 USC 6631.>> 

    ``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. <<NOTE: 20 USC 6632.>> 

    ``(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. <<NOTE: 20 USC 6633.>> 

    ``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. <<NOTE: 20 USC 6634.>> 

    ``(a) In General.--An eligible partnership that receives a subgrant 
under section 2132 shall use the subgrant funds for--

[[Page 115 STAT. 1634]]

            ``(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. <<NOTE: 20 USC 
            6641.>> 

    ``(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

[[Page 115 STAT. 1635]]

        to enable the local educational agency to meet the annual 
        measurable objectives described in section 1119(a)(2).

    ``(c) <<NOTE: Contracts.>> 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. <<NOTE: 20 USC 6651.>> 

    ``(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

[[Page 115 STAT. 1636]]

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;

[[Page 115 STAT. 1637]]

                    ``(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

[[Page 115 STAT. 1638]]

                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

[[Page 115 STAT. 1639]]

                                    ``(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;

[[Page 115 STAT. 1640]]

                          ``(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.

[[Page 115 STAT. 1641]]

            ``(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.

[[Page 115 STAT. 1642]]

                          ``(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) <<NOTE: Deadline.>>  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. <<NOTE: 20 USC 6661.>> 

    ``(a) Purpose.--The purpose of this part is to improve the academic 
achievement of students in the areas of mathematics

[[Page 115 STAT. 1643]]

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

[[Page 115 STAT. 1644]]

                    ``(C) provides for followup training during the 
                academic year that is conducted in the classroom for a 
                period of not less than three 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. <<NOTE: 20 
            USC 6662.>> 

    ``(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 one-half 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--

[[Page 115 STAT. 1645]]

                    ``(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

[[Page 115 STAT. 1646]]

                      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.

[[Page 115 STAT. 1647]]

            ``(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. <<NOTE: 20 USC 6663.>> 

    ``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.

[[Page 115 STAT. 1648]]

                ``PART C--INNOVATION FOR TEACHER QUALITY

                  ``Subpart 1--Transitions to Teaching

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

``SEC. 2301. DEFINITIONS. <<NOTE: 20 USC 6671.>> 

    ``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. <<NOTE: 20 USC 
            6672.>> 

    ``(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

[[Page 115 STAT. 1649]]

                          ``(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) <<NOTE: Memorandum.>>  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. <<NOTE: 20 USC 6673.>> 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--

[[Page 115 STAT. 1650]]

                    ``(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--
                          ave 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

[[Page 115 STAT. 1651]]

        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. <<NOTE: 20 USC 6674.>> 

    ``(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.

[[Page 115 STAT. 1652]]

            ``(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

[[Page 115 STAT. 1653]]

                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

[[Page 115 STAT. 1654]]

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. <<NOTE: 20 USC 6675.>> 

    ``(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. <<NOTE: 20 USC 6676.>> 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 agency 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

[[Page 115 STAT. 1655]]

        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. <<NOTE: 20 USC 6677.>> 

    ``(a) <<NOTE: Deadline.>>  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. <<NOTE: 20 USC 6681.>> 

    ``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

[[Page 115 STAT. 1656]]

        factors in lieu of traditional course work in the field of 
        education.

``SEC. 2312. DEFINITIONS. <<NOTE: 20 USC 6682.>> 

    ``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. <<NOTE: 20 USC 6683.>> 

    ``(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.

[[Page 115 STAT. 1657]]

    ``(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

[[Page 115 STAT. 1658]]

        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

[[Page 115 STAT. 1659]]

        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) <<NOTE: Requirements.>>  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. <<NOTE: 20 USC 6684.>> 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.

[[Page 115 STAT. 1660]]

                     ``CHAPTER C--GENERAL PROVISIONS

``SEC. 2321. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 6691.>> 

    ``(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. <<NOTE: 20 USC 6701.>> 

    ``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. <<NOTE: 20 USC 6702.>> 

    ``(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;

[[Page 115 STAT. 1661]]

            ``(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.--

[[Page 115 STAT. 1662]]

            ``(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 <<NOTE: Education for Democracy Act.>> 

``SEC. 2341. SHORT TITLE. <<NOTE: 20 USC 6711.>> 

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

``SEC. 2342. PURPOSE. <<NOTE: 20 USC 6712.>> 

    ``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. <<NOTE: 20 USC 6713.>> 

    ``(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

[[Page 115 STAT. 1663]]

                    ``(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. <<NOTE: 20 USC 6714.>> 

    ``(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;

[[Page 115 STAT. 1664]]

                          ``(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. <<NOTE: 20 USC 6715.>> 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

[[Page 115 STAT. 1665]]

        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--

[[Page 115 STAT. 1666]]

                          ``(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. <<NOTE: 20 USC 6716.>> 

    ``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. <<NOTE: 20 USC 6721.>> 

    ``(a) In General.--The Secretary may establish and implement a 
program to be known as the `Teaching American History Grant

[[Page 115 STAT. 1667]]

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. <<NOTE: 20 USC 6722.>> 

    ``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 <<NOTE: Paul D. Coverdell 
Teacher Protection Act of 2001.>> 

``SEC. 2361. SHORT TITLE. <<NOTE: 20 USC 6731.>> 

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

``SEC. 2362. PURPOSE. <<NOTE: 20 USC 6732.>> 

    ``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. <<NOTE: 20 USC 6733.>> 

    ``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

[[Page 115 STAT. 1668]]

        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. <<NOTE: 20 USC 6734.>> 

    ``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. <<NOTE: 20 USC 6735.>> 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. <<NOTE: 20 USC 
            6736.>> 

    ``(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,

[[Page 115 STAT. 1669]]

        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.
            ate 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 entityunless 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;

[[Page 115 STAT. 1670]]

                    ``(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. <<NOTE: 20 USC 6737.>> 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. <<NOTE: 20 USC 6738.>> 

    ``(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

[[Page 115 STAT. 1671]]

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 <<NOTE: Enhancing Education Through Technology Act of 2001.>>  
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.

[[Page 115 STAT. 1672]]

            ``(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. <<NOTE: 20 USC 6753.>> 

    ``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

[[Page 115 STAT. 1673]]

                    ``(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. <<NOTE: 20 USC 6754.>> 

    ``(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. <<NOTE: 20 USC 6761.>> 

    ``(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) three-fourths 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) one-half 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 one-half of 1 percent of the amount made available for 
allotments to States under this part for such year.

[[Page 115 STAT. 1674]]

    ``(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. <<NOTE: 20 USC 6762.>> 

    ``(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.

[[Page 115 STAT. 1675]]

            ``(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. <<NOTE: 20 USC 6763.>> 

    ``(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

[[Page 115 STAT. 1676]]

        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) <<NOTE: Notice.>>  Disapproval.--The Secretary shall not 
finally disapprove the application, except after giving the State 
educational agency notice and an opportunity for a hearing.

[[Page 115 STAT. 1677]]

    ``(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. <<NOTE: 20 USC 6764.>> 

    ``(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

[[Page 115 STAT. 1678]]

        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

[[Page 115 STAT. 1679]]

        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. <<NOTE: 20 USC 6765.>> 

    ``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--

[[Page 115 STAT. 1680]]

                    ``(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. <<NOTE: 20 USC 6766.>> 

    ``(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

[[Page 115 STAT. 1681]]

        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.

[[Page 115 STAT. 1682]]

            ``(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. <<NOTE: 20 USC 6771.>> 

    ``(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) <<NOTE: Establishment.>> 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) <<NOTE: Reports. Deadline.>> 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) <<NOTE: Internet.>>  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. <<NOTE: 20 USC 6772.>> 

    ``(a) <<NOTE: Publication. Public information.>>  In General.--Based 
on the Nation's progress and an assessment by the Secretary of the 
continuing and future needs

[[Page 115 STAT. 1683]]

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. <<NOTE: 20 USC 6775.>> 

    ``(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

[[Page 115 STAT. 1684]]

                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.

[[Page 115 STAT. 1685]]

    ``(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).

[[Page 115 STAT. 1686]]

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

``SEC. 2441. INTERNET SAFETY. <<NOTE: 20 USC 6777.>> 

    ``(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) <<NOTE: Certification.>>  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

[[Page 115 STAT. 1687]]

                                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. <<NOTE: Notification.>>  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

[[Page 115 STAT. 1688]]

        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. <<NOTE: 20 USC 6301 note.>> 

    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

[[Page 115 STAT. 1689]]

            (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. <<NOTE: 20 USC 6801.>> 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.

[[Page 115 STAT. 1690]]

 ``PART <<NOTE: English Language Acquisition, Language Enhancement, and 
 Academic Achievement Act. Children, youth and families. Grants. 20 USC 
  6811.>>  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. <<NOTE: 20 USC 6812.>> 

    ``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

[[Page 115 STAT. 1691]]

                    ``(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. <<NOTE: 20 USC 6821.>> 

    ``(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

[[Page 115 STAT. 1692]]

                      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.--

[[Page 115 STAT. 1693]]

                    ``(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.

[[Page 115 STAT. 1694]]

                          ``(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. <<NOTE: 20 USC 6822.>> 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. <<NOTE: 20 USC 
            6823.>> 

    ``(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 four recognized domains of speaking, listening,

[[Page 115 STAT. 1695]]

        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--

[[Page 115 STAT. 1696]]

                    ``(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. <<NOTE: 20 USC 6824.>> 

    ``(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.

[[Page 115 STAT. 1697]]

    ``(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. <<NOTE: 20 USC 6825.>> 

    ``(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.

[[Page 115 STAT. 1698]]

    ``(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.

[[Page 115 STAT. 1699]]

            ``(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 under this subpart.
            ``(8) Carrying out other activities that are consistent with 
        the purposes of this section.

    ``(e) Activities by Agencies Experiencing Substantial Increases in 
Immigrant Children and Youth.--
            ``(1) In general.--An eligible entity receiving funds under 
        section 3114(d)(1) shall use the funds to pay for activities 
        that provide enhanced instructional opportunities for immigrant 
        children and youth, which may include--
                    ``(A) family literacy, parent outreach, and training 
                activities designed to assist parents to become active 
                participants in the education of their children;
                    ``(B) support for personnel, including teacher aides 
                who have been specifically trained, or are being 
                trained, to provide services to immigrant children and 
                youth;
                    ``(C) provision of tutorials, mentoring, and 
                academic or career counseling for immigrant children and 
                youth;
                    ``(D) identification and acquisition of curricular 
                materials, educational software, and technologies to be 
                used in the program carried out with funds;
                    ``(E) basic instruction services that are directly 
                attributable to the presence in the school district 
                involved of immigrant children and youth, including the 
                payment of costs of providing additional classroom 
                supplies, costs of transportation, or such other costs 
                as are directly attributable to such additional basic 
                instruction services;
                    ``(F) other instruction services that are designed 
                to assist immigrant children and youth to achieve in 
                elementary schools and secondary schools in the United 
                States, such as programs of introduction to the 
                educational system and civics education; and
                    ``(G) activities, coordinated with community-based 
                organizations, institutions of higher education, private 
                sector entities, or other entities with expertise in 
                working with immigrants, to assist parents of immigrant 
                children and youth by offering comprehensive community 
                services.
            ``(2) Duration of subgrants.--The duration of a subgrant 
        made by a State educational agency under section 3114(d)(1) 
        shall be determined by the agency in its discretion.

    ``(f) Selection of Method of Instruction.--

[[Page 115 STAT. 1700]]

            ``(1) In general.--To receive a subgrant from a State 
        educational agency under this subpart, an eligible entity shall 
        select one or more methods or forms of instruction to be used in 
        the programs and activities undertaken by the entity to assist 
        limited English proficient children to attain English 
        proficiency and meet challenging State academic content and 
        student academic achievement standards.
            ``(2) Consistency.--Such selection shall be consistent with 
        sections 3125 through 3127.

    ``(g) Supplement, Not Supplant.--Federal funds made available under 
this subpart shall be used so as to supplement the level of Federal, 
State, and local public funds that, in the absence of such availability, 
would have been expended for programs for limited English proficient 
children and immigrant children and youth and in no case to supplant 
such Federal, State, and local public funds.

``SEC. 3116. LOCAL PLANS. <<NOTE: 20 USC 6826.>> 

    ``(a) Plan Required.--Each eligible entity desiring a subgrant from 
the State educational agency under section 3114 shall submit a plan to 
the State educational agency at such time, in such manner, and 
containing such information as the State educational agency may require.
    ``(b) Contents.--Each plan submitted under subsection (a) shall--
            ``(1) describe the programs and activities proposed to be 
        developed, implemented, and administered under the subgrant;
            ``(2) describe how the eligible entity will use the subgrant 
        funds to meet all annual measurable achievement objectives 
        described in section 3122;
            ``(3) describe how the eligible entity will hold elementary 
        schools and secondary schools receiving funds under this subpart 
        accountable for--
                    ``(A) meeting the 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) annually measuring the English proficiency of 
                limited English proficient children, so that such 
                children served by the programs carried out under this 
                part develop proficiency in English while meeting State 
                academic content and student academic achievement 
                standards as required by section 1111(b)(1);
            ``(4) describe how the eligible entity will promote parental 
        and community participation in programs for limited English 
        proficient children;
            ``(5) contain an assurance that the eligible entity 
        consulted with teachers, researchers, school administrators, and 
        parents, and, if appropriate, with education-related community 
        groups and nonprofit organizations, and institutions of higher 
        education, in developing such plan; and
            ``(6) describe how language instruction educational programs 
        carried out under the subgrant will ensure that limited English 
        proficient children being served by the programs develop English 
        proficiency.

[[Page 115 STAT. 1701]]

    ``(c) Teacher English Fluency.--Each eligible entity receiving a 
subgrant under section 3114 shall include in its plan a certification 
that all teachers in any language instruction educational program for 
limited English proficient children that is, or will be, funded under 
this part are fluent in English and any other language used for 
instruction, including having written and oral communications skills.
    ``(d) Other Requirements for Approval.--Each local plan shall also 
contain assurances that--
            ``(1) each local educational agency that is included in the 
        eligible entity is complying with section 3302 prior to, and 
        throughout, each school year;
            ``(2) the eligible entity annually will assess the English 
        proficiency of all children with limited English proficiency 
        participating in programs funded under this part;
            ``(3) the eligible entity has based its proposed plan on 
        scientifically based research on teaching limited English 
        proficient children;
            ``(4) the eligible entity will ensure that the programs will 
        enable children to speak, read, write, and comprehend the 
        English language and meet challenging State academic content and 
        student academic achievement standards; and
            ``(5) the eligible entity is not in violation of any State 
        law, including State constitutional law, regarding the education 
        of limited English proficient children, consistent with sections 
        3126 and 3127.

             ``Subpart 2--Accountability and Administration

``SEC. 3121. EVALUATIONS. <<NOTE: 20 USC 6841.>> 

    ``(a) In General.--Each eligible entity that receives a subgrant 
from a State educational agency under subpart 1 shall provide such 
agency, at the conclusion of every second fiscal year during which the 
subgrant is received, with an evaluation, in a form prescribed by the 
agency, that includes--
            ``(1) a description of the programs and activities conducted 
        by the entity with funds received under subpart 1 during the two 
        immediately preceding fiscal years;
            ``(2) a description of the progress made by children in 
        learning the English language and meeting challenging State 
        academic content and student academic achievement standards;
            ``(3) the number and percentage of children in the programs 
        and activities attaining English proficiency by the end of each 
        school year, as determined by a valid and reliable assessment of 
        English proficiency; and
            ``(4) a description of the progress made by children in 
        meeting challenging State academic content and student academic 
        achievement standards for each of the 2 years a