[Congressional Bills 107th Congress]
[From the U.S. Government Printing Office]
[H.R. 1 Enrolled Bill (ENR)]

        H.R.1

                      One Hundred Seventh Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

         Begun and held at the City of Washington on Wednesday,
             the third day of January, two thousand and one


                                 An Act


 
   To close the achievement gap with accountability, flexibility, and 
                choice, so that no child is left behind.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Transition.
Sec. 5. Effective date.
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.
Sec. 802. Payments for eligible federally connected children.
Sec. 803. Construction.
Sec. 804. State consideration of payments in providing State aid.
Sec. 805. Authorization of appropriations.

                      TITLE IX--GENERAL PROVISIONS

Sec. 901. General provisions.

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

                             Part A--Repeals

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

                         Part B--Redesignations

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

                       Part C--Homeless Education

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

              Part D--Native American Education Improvement

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

                  Part E--Higher Education Act of 1965

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

                Part F--General Education Provisions Act

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

                  Part G--Miscellaneous Other Statutes

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

SEC. 3. REFERENCES.

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

SEC. 4. TRANSITION.

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

SEC. 5. EFFECTIVE DATE.

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

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

    The Act is amended--
        (1) in the heading of section 1, by striking ``table of 
    contents'' and inserting ``short title''; and
        (2) by adding after section 1 the following new section:

``SEC. 2. TABLE OF CONTENTS.

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

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

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

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

    ``Part A--Improving Basic Programs Operated by Local Educational 
                                Agencies

                 ``Subpart 1--Basic Program Requirements

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

                        ``Subpart 2--Allocations

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

           ``Part B--Student Reading Skills Improvement Grants

                       ``Subpart 1--Reading First

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

                    ``Subpart 2--Early Reading First

``Sec. 1221. Purposes; definitions.
``Sec. 1222. Local Early Reading First grants.
``Sec. 1223. Federal administration.
``Sec. 1224. Information dissemination.
``Sec. 1225. Reporting requirements.
``Sec. 1226. Evaluation.

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

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

        ``Subpart 4--Improving Literacy Through School Libraries

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

                ``Part C--Education of Migratory Children

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

 ``Part D--Prevention and Intervention Programs for Children and Youth 
                who are Neglected, Delinquent, or At-risk

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

                   ``Subpart 1--State Agency Programs

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

                   ``Subpart 2--Local Agency Programs

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

                     ``Subpart 3--General Provisions

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

                ``Part E--National Assessment of Title I

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

                  ``Part F--Comprehensive School Reform

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

                  ``Part G--Advanced Placement Programs

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

                   ``Part H--School Dropout Prevention

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

               ``Subpart 1--Coordinated National Strategy

``Sec. 1811. National activities.

            ``Subpart 2--School Dropout Prevention Initiative

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

                      ``Part I--General Provisions

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

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

      ``Part A--Teacher and Principal Training and Recruiting Fund

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

                      ``Subpart 1--Grants to States

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

          ``Subpart 2--Subgrants to Local Educational Agencies

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

             ``Subpart 3--Subgrants to Eligible Partnerships

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

                       ``Subpart 4--Accountability

``Sec. 2141. Technical assistance and accountability.

                    ``Subpart 5--National Activities

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

             ``Part B--Mathematics and Science Partnerships

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

                ``Part C--Innovation for Teacher Quality

                  ``Subpart 1--Transitions to Teaching

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

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

               ``CHAPTER B--TRANSITION TO TEACHING PROGRAM

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

                     ``CHAPTER C--GENERAL PROVISIONS

``Sec. 2321. Authorization of appropriations.

                  ``Subpart 2--National Writing Project

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

                      ``Subpart 3--Civic Education

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

          ``Subpart 4--Teaching of Traditional American History

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

                ``Subpart 5--Teacher Liability Protection

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

            ``Part D--Enhancing Education Through Technology

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

             ``Subpart 1--State and Local Technology Grants

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

               ``Subpart 2--National Technology Activities

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

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

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

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

``Sec. 2441. Internet safety.

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

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

   ``Part A--English Language Acquisition, Language Enhancement, and 
                        Academic Achievement Act

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

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

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

             ``Subpart 2--Accountability and Administration

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

                    ``Subpart 3--National Activities

``Sec. 3131. National professional development project.

                        ``Subpart 4--Definitions

``Sec. 3141. Eligible entity.

      ``Part B--Improving Language Instruction Educational Programs

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

            ``Subpart 1--Program Development and Enhancement

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

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

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

                  ``Subpart 3--Professional Development

``Sec. 3231. Professional development grants.

           ``Subpart 4--Emergency Immigrant Education Program

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

                       ``Subpart 5--Administration

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

                      ``Part C--General Provisions

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

                    ``TITLE IV--21ST CENTURY SCHOOLS

          ``Part A--Safe and Drug-Free Schools and Communities

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

                        ``Subpart 1--State Grants

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

                     ``Subpart 2--National Programs

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

                       ``Subpart 3--Gun Possession

``Sec. 4141. Gun-free requirements.

                     ``Subpart 4--General Provisions

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

            ``Part B--21st Century Community Learning Centers

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

                  ``Part C--Environmental Tobacco Smoke

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

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

                      ``Part A--Innovative Programs

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

                  ``Subpart 1--State and Local Programs

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

                       ``Subpart 2--State Programs

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

            ``Subpart 3--Local Innovative Education Programs

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

                     ``Subpart 4--General Provisions

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

                    ``Part B--Public Charter Schools

                  ``Subpart 1--Charter School Programs

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

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

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

          ``Subpart 3--Voluntary Public School Choice Programs

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

                   ``Part C--Magnet Schools Assistance

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

             ``Part D--Fund for the Improvement of Education

``Sec. 5401. Authorization of appropriations.

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

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

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

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

            ``Subpart 3--Partnerships in Character Education

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

                ``Subpart 4--Smaller Learning Communities

``Sec. 5441. Smaller learning communities.

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

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

                ``Subpart 6--Gifted and Talented Students

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

                    ``Subpart 7--Star Schools Program

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

                       ``Subpart 8--Ready to Teach

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

            ``Subpart 9--Foreign Language Assistance Program

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

                    ``Subpart 10--Physical Education

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

               ``Subpart 11--Community Technology Centers

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

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

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

             ``Subpart 13--Excellence in Economic Education

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

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

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

                     ``Subpart 15--Arts in Education

``Sec. 5551. Assistance for arts education.

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

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

               ``Subpart 17--Combatting Domestic Violence

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

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

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

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

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

                ``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.
``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.
``Sec. 9306. Other general assurances.

                            ``Part D--Waivers

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

                      ``Part E--Uniform Provisions

                      ``Subpart 1--Private Schools

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

                      ``Subpart 2--Other Provisions

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

                          ``Part F--Evaluations

``Sec. 9601. Evaluations.''.

    TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

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

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

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

``SEC. 1001. STATEMENT OF PURPOSE.

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

``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

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

``SEC. 1003. SCHOOL IMPROVEMENT.

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

``SEC. 1004. STATE ADMINISTRATION.

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

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

                ``Subpart 1--Basic Program Requirements

``SEC. 1111. STATE PLANS.

    ``(a) Plans Required.--
        ``(1) In general.--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 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 elementary schools, 
        and public secondary schools make adequate yearly progress as 
        defined under this paragraph. Each State accountability system 
        shall--
                ``(i) be based on the academic standards and academic 
            assessments adopted under paragraphs (1) and (3), and other 
            academic indicators consistent with subparagraph (C)(vi) 
            and (vii), and shall take into account the achievement of 
            all public elementary school and secondary school students;
                ``(ii) be the same accountability system the State uses 
            for all public elementary schools and secondary schools or 
            all local educational agencies in the State, except that 
            public elementary schools, secondary schools, and local 
            educational agencies not participating under this part are 
            not subject to the requirements of section 1116; and
                ``(iii) include sanctions and rewards, such as bonuses 
            and recognition, the State will use to hold local 
            educational agencies and public elementary schools and 
            secondary schools accountable for student achievement and 
            for ensuring that they make adequate yearly progress in 
            accordance with the State's definition under subparagraphs 
            (B) and (C).
            ``(B) Adequate yearly progress.--Each State plan shall 
        demonstrate, based on academic assessments described in 
        paragraph (3), and in accordance with this paragraph, what 
        constitutes adequate yearly progress of the State, and of all 
        public elementary schools, secondary schools, and local 
        educational agencies in the State, toward enabling all public 
        elementary school and secondary school students to meet the 
        State's student academic achievement standards, while working 
        toward the goal of narrowing the achievement gaps in the State, 
        local educational agencies, and schools.
            ``(C) Definition.--`Adequate yearly progress' shall be 
        defined by the State in a manner that--
                ``(i) applies the same high standards of academic 
            achievement to all public elementary school and secondary 
            school students in the State;
                ``(ii) is statistically valid and reliable;
                ``(iii) results in continuous and substantial academic 
            improvement for all students;
                ``(iv) measures the progress of public elementary 
            schools, secondary schools and local educational agencies 
            and the State based primarily on the academic assessments 
            described in paragraph (3);
                ``(v) includes separate measurable annual objectives 
            for continuous and substantial improvement for each of the 
            following:

                    ``(I) The achievement of all public elementary 
                school and secondary school students.
                    ``(II) The achievement of--

                        ``(aa) economically disadvantaged students;
                        ``(bb) students from major racial and ethnic 
                    groups;
                        ``(cc) students with disabilities; and
                        ``(dd) students with limited English 
                    proficiency;

                except that disaggregation of data under subclause (II) 
                shall not be required in a case in which the number of 
                students in a category is insufficient to yield 
                statistically reliable information or the results would 
                reveal personally identifiable information about an 
                individual student;

                ``(vi) in accordance with subparagraph (D), includes 
            graduation rates for public secondary school students 
            (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 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 
            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--
                ``(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) beginning not later than school year 2005-2006, 
            measure the achievement of students against the challenging 
            State academic content and student academic achievement 
            standards in each of grades 3 through 8 in, at a minimum, 
            mathematics, and reading or language arts, except that the 
            Secretary may provide the State 1 additional year if the 
            State demonstrates that exceptional or uncontrollable 
            circumstances, such as a natural disaster or a precipitous 
            and unforeseen decline in the financial resources of the 
            State, prevented full implementation of the academic 
            assessments by that deadline and that the State will 
            complete implementation within the additional 1-year 
            period;
                ``(viii) at the discretion of the State, measure the 
            proficiency of students in academic subjects not described 
            in clauses (v), (vi), (vii) in which the State has adopted 
            challenging academic content and academic achievement 
            standards;
                ``(ix) provide for--

                    ``(I) the participation in such assessments of all 
                students;
                    ``(II) the reasonable adaptations and 
                accommodations for students with disabilities (as 
                defined under section 602(3) of the Individuals with 
                Disabilities Education Act) necessary to measure the 
                academic achievement of such students relative to State 
                academic content and State student academic achievement 
                standards; and
                    ``(III) the inclusion of limited English proficient 
                students, who shall be assessed in a valid and reliable 
                manner and provided reasonable accommodations on 
                assessments administered to such students under this 
                paragraph, including, to the extent practicable, 
                assessments in the language and form most likely to 
                yield accurate data on what such students know and can 
                do in academic content areas, until such students have 
                achieved English language proficiency as determined 
                under paragraph (7);

                ``(x) notwithstanding subclause (III), the academic 
            assessment (using tests written in English) of reading or 
            language arts of any student who has attended school in the 
            United States (not including Puerto Rico) for 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 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 and secondary schools, then the 
    State educational agency may meet the requirements of this 
    subsection by--
            ``(A) adopting academic standards and academic assessments 
        that meet the requirements of this subsection, on a statewide 
        basis, and limiting their applicability to students served 
        under this part; or
            ``(B) adopting and implementing policies that ensure that 
        each local educational agency in the State that receives grants 
        under this part will adopt curriculum content and student 
        academic achievement standards, and academic assessments 
        aligned with such standards, which--
                ``(i) meet all of the criteria in this subsection and 
            any regulations regarding such standards and assessments 
            that the Secretary may publish; and
                ``(ii) are applicable to all students served by each 
            such local educational agency.
        ``(6) Language assessments.--Each State plan shall identify the 
    languages other than English that are present in the participating 
    student population and indicate the languages for which yearly 
    student academic assessments are not available and are needed. The 
    State shall make every effort to develop such assessments and may 
    request assistance from the Secretary if linguistically accessible 
    academic assessment measures are needed. Upon request, the 
    Secretary shall assist with the identification of appropriate 
    academic assessment measures in the needed languages, but shall not 
    mandate a specific academic assessment or mode of instruction.
        ``(7) Academic assessments of english language proficiency.--
    Each State plan shall demonstrate that local educational agencies 
    in the State will, beginning not later than school year 2002-2003, 
    provide for an annual assessment of English proficiency (measuring 
    students' oral language, reading, and writing skills in English) of 
    all students with limited English proficiency in the schools served 
    by the State 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 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) 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) the State will, beginning in school year 2002-2003, 
    participate in biennial State academic assessments of 4th and 8th 
    grade reading and mathematics under the National Assessment of 
    Educational Progress carried out under section 411(b)(2) of the 
    National Education Statistics Act of 1994 if the Secretary pays the 
    costs of administering such assessments;
        ``(3) the State educational agency, in consultation with the 
    Governor, will include, as a component of the State plan, a plan to 
    carry out the responsibilities of the State under sections 1116 and 
    1117, including carrying out the State educational agency's 
    statewide system of technical assistance and support for local 
    educational agencies;
        ``(4) the State educational agency will work with other 
    agencies, including educational service agencies or other local 
    consortia, and institutions to provide technical assistance to 
    local educational agencies and schools, including technical 
    assistance in providing professional development under section 
    1119, technical assistance under section 1117, and technical 
    assistance relating to parental involvement under section 1118;
        ``(5)(A) where educational service agencies exist, the State 
    educational agency will consider providing professional development 
    and technical assistance through such agencies; and
        ``(B) where educational service agencies do not exist, the 
    State educational agency will consider providing professional 
    development and technical assistance through other cooperative 
    agreements such as through a consortium of local educational 
    agencies;
        ``(6) the State educational agency will notify local 
    educational agencies and the public of the content and student 
    academic achievement standards and academic assessments developed 
    under this section, and of the authority to operate schoolwide 
    programs, and will fulfill the State educational agency's 
    responsibilities regarding local educational agency improvement and 
    school improvement under section 1116, including such corrective 
    actions as are necessary;
        ``(7) the State educational agency will provide the least 
    restrictive and burdensome regulations for local educational 
    agencies and individual schools participating in a program assisted 
    under this part;
        ``(8) the State educational agency will inform the Secretary 
    and the public of how Federal laws, if at all, hinder the ability 
    of States to hold local educational agencies and schools 
    accountable for student academic achievement;
        ``(9) the State educational agency will encourage schools to 
    consolidate funds from other Federal, State, and local sources for 
    schoolwide reform in schoolwide programs under section 1114;
        ``(10) the State educational agency will modify or eliminate 
    State fiscal and accounting barriers so that schools can easily 
    consolidate funds from other Federal, State, and local sources for 
    schoolwide programs under section 1114;
        ``(11) the State educational agency has involved the committee 
    of practitioners established under section 1903(b) in developing 
    the plan and monitoring its implementation;
        ``(12) the State educational agency will inform local 
    educational agencies in the State of the local educational agency's 
    authority to transfer funds under title VI, to obtain waivers under 
    part D of title IX, and, if the State is an Ed-Flex Partnership 
    State, to obtain waivers under the Education Flexibility 
    Partnership Act of 1999;
        ``(13) the State educational agency will coordinate activities 
    funded under this part with other Federal activities as 
    appropriate; and
        ``(14) the State educational agency will encourage local 
    educational agencies and individual schools participating in a 
    program assisted under this part to offer family literacy services 
    (using funds under this part), if the agency or school determines 
    that a substantial number of students served under this part by the 
    agency or school have parents who do not have a secondary school 
    diploma or its recognized equivalent or who have low levels of 
    literacy.
    ``(d) Parental Involvement.--Each State plan shall describe how the 
State 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) establish a peer-review process to assist in the 
        review of State plans;
            ``(B) appoint individuals to the peer-review process who 
        are representative of parents, teachers, State educational 
        agencies, and local educational agencies, and who are familiar 
        with educational standards, assessments, accountability, the 
        needs of low-performing schools, and other educational needs of 
        students;
            ``(C) approve a State plan within 120 days of its 
        submission unless the Secretary determines that the plan does 
        not meet the requirements of this section;
            ``(D) if the Secretary determines that the State plan does 
        not meet the requirements of subsection (a), (b), or (c), 
        immediately notify the State of such determination and the 
        reasons for such determination;
            ``(E) not decline to approve a State's plan before--
                ``(i) offering the State an opportunity to revise its 
            plan;
                ``(ii) providing technical assistance in order to 
            assist the State to meet the requirements of subsections 
            (a), (b), and (c); and
                ``(iii) providing a hearing; and
            ``(F) have the authority to disapprove a State plan for not 
        meeting the requirements of this part, but shall not have the 
        authority to require a State, as a condition of approval of the 
        State plan, to include in, or delete from, such plan one or 
        more specific elements of the State's academic content 
        standards or to use specific academic assessment instruments or 
        items.
        ``(2) State revisions.--A State 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
            ``(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) In general.--Not later than the beginning of the 
        2002-2003 school year, unless the State has received a 1-year 
        extension pursuant to subsection (c)(1), a State that receives 
        assistance under this part shall prepare and disseminate an 
        annual State report card.
            ``(B) Implementation.--The State report card shall be--
                ``(i) concise; and
                ``(ii) presented in an understandable and uniform 
            format and, to the extent practicable, provided in a 
            language that the parents can understand.
            ``(C) Required information.--The State shall include in its 
        annual State report card--
                ``(i) information, in the aggregate, on student 
            achievement at each proficiency level on the State academic 
            assessments described in subsection (b)(3) (disaggregated 
            by race, ethnicity, gender, disability status, migrant 
            status, English proficiency, and status as economically 
            disadvantaged, except that such disaggregation shall not be 
            required in a case in which the number of students in a 
            category is insufficient to yield statistically reliable 
            information or the results would reveal personally 
            identifiable information about an individual student);
                ``(ii) information that provides a comparison between 
            the actual achievement levels of each group of students 
            described in subsection (b)(2)(C)(v) and the State's annual 
            measurable objectives for each such group of students on 
            each of the academic assessments required under this part;
                ``(iii) the percentage of students not tested 
            (disaggregated by the same categories and subject to the 
            same exception described in clause (i));
                ``(iv) the most recent 2-year trend in student 
            achievement in each subject area, and for each grade level, 
            for which assessments under this section are required;
                ``(v) aggregate information on any other indicators 
            used by the State to determine the adequate yearly progress 
            of students in achieving State academic achievement 
            standards;
                ``(vi) graduation rates for secondary school students 
            consistent with subsection (b)(2)(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
                ``(vii) a clear and concise description of the State's 
            accountability system, including a description of the 
            criteria by which the State evaluates school performance, 
            and the criteria that the State has established, consistent 
            with subsection (b)(2), to determine the status of schools 
            regarding school improvement, corrective action, and 
            restructuring.
        ``(2) Annual local educational agency report cards.--
            ``(A) Report cards.--
                ``(i) In general.--Not later than the beginning of the 
            2002-2003 school year, a local educational agency that 
            receives assistance under this part shall prepare and 
            disseminate an annual local educational agency report card, 
            except that the State 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 such information 
        is included in the annual State report card.
            ``(D) Data.--A local educational agency or school shall 
        only include in its annual local educational agency report card 
        data that are sufficient to yield statistically reliable 
        information, as determined by the State, and that do not reveal 
        personally identifiable information about an individual 
        student.
            ``(E) Public dissemination.--The local educational agency 
        shall, not later than the beginning of the 2002-2003 school 
        year, unless the local educational agency has received a 1-year 
        extension pursuant to subparagraph (A), publicly disseminate 
        the information described in this paragraph to all schools in 
        the school district served by the local educational agency and 
        to all parents of students attending those schools in an 
        understandable and uniform format and, to the extent 
        practicable, provided in a language that the parents can 
        understand, and make the information widely available through 
        public means, such as posting on the Internet, distribution to 
        the media, and distribution through public agencies, except 
        that if a local educational agency issues a report card for all 
        students, the local educational agency may include the 
        information under this section as part of such report.
        ``(3) Preexisting report cards.--A State educational agency or 
    local educational agency that was providing public report cards on 
    the performance of students, schools, local educational agencies, 
    or the State prior to the enactment of the No Child Left Behind Act 
    of 2001 may use those report cards for the purpose of this 
    subsection, so long as any such report card is modified, as may be 
    needed, to contain the information required by this subsection.
        ``(4) Annual state report to the secretary.--Each State 
    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;
            ``(F) the number of students and schools that participated 
        in public school choice and supplemental service programs and 
        activities under this title; and
            ``(G) beginning not later than the 2002-2003 school year, 
        information on the quality of teachers and the percentage of 
        classes being taught by highly qualified teachers in the State, 
        local educational agency, and school.
        ``(5) Report to congress.--The Secretary shall transmit 
    annually to the Committee on Education and the Workforce of the 
    House of Representatives and the Committee on Health, Education, 
    Labor, and Pensions of the Senate a report that provides national 
    and State-level data on the information collected under paragraph 
    (4).
        ``(6) Parents right-to-know.--
            ``(A) Qualifications.--At the beginning of each school 
        year, a local educational agency that receives funds under this 
        part shall notify the parents of each student attending any 
        school receiving funds under this part that the parents may 
        request, and the agency will provide the parents on request 
        (and in a timely manner), information regarding the 
        professional qualifications of the student's classroom 
        teachers, including, at a minimum, the following:
                ``(i) Whether the teacher has met State qualification 
            and licensing criteria for the grade levels and subject 
            areas in which the teacher provides instruction.
                ``(ii) Whether the teacher is teaching under emergency 
            or other provisional status through which State 
            qualification or licensing criteria have been waived.
                ``(iii) The baccalaureate degree major of the teacher 
            and any other graduate certification or degree held by the 
            teacher, and the field of discipline of the certification 
            or degree.
                ``(iv) Whether the child is provided services by 
            paraprofessionals and, if so, their qualifications.
            ``(B) Additional information.--In addition to the 
        information that parents may request under subparagraph (A), a 
        school that receives funds under this part shall provide to 
        each individual parent--
                ``(i) information on the level of achievement of the 
            parent's child in each of the State academic assessments as 
            required under this part; and
                ``(ii) timely notice that the parent's child has been 
            assigned, or has been taught for 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 of 
high-quality academic assessments, the setting of State standards, the 
development of measures of adequate yearly progress that are valid and 
reliable, and other relevant areas.
    ``(k) Voluntary Partnerships.--A State may enter into a voluntary 
partnership with another State to develop and implement the academic 
assessments and standards required under this section.
    ``(l) Construction.--Nothing in this part shall be construed to 
prescribe the use of the academic assessments described in this part 
for student promotion or graduation purposes.
    ``(m) Special Rule With Respect to Bureau-Funded Schools.--In 
determining the assessments to be used by each operated or funded by 
BIA school receiving funds under this part, the following shall apply:
        ``(1) Each such school that is accredited by the State in which 
    it is operating shall use the assessments the State has developed 
    and implemented to meet the requirements of this section, or such 
    other appropriate assessment as approved by the Secretary of the 
    Interior.
        ``(2) Each such school that is accredited by a regional 
    accrediting organization shall adopt an appropriate assessment, in 
    consultation with and with the approval of, the Secretary of the 
    Interior and consistent with assessments adopted by other schools 
    in the same State or region, that meets the requirements of this 
    section.
        ``(3) Each such school that is accredited by a tribal 
    accrediting agency or tribal division of education shall use an 
    assessment developed by such agency or division, except that the 
    Secretary of the Interior shall ensure that such assessment meets 
    the requirements of this section.

``SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.

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

                    ``(I) detailing--

                        ``(aa) the right that parents have to have 
                    their child immediately removed from such program 
                    upon their request; and
                        ``(bb) the options that parents have to decline 
                    to enroll their child in such program or to choose 
                    another program or method of instruction, if 
                    available; and

                    ``(II) assisting parents in selecting among various 
                programs and methods of instruction, if more than one 
                program or method is offered by the eligible entity.

            ``(B) Separate notification.--In addition to providing the 
        information required to be provided under paragraph (1), each 
        eligible entity that is using funds provided under this part to 
        provide a language instruction educational program, and that 
        has failed to make progress on the annual measurable 
        achievement objectives described in section 3122 for any fiscal 
        year for which part A is in effect, shall separately inform a 
        parent or the parents of a child identified for participation 
        in such program, or participating in such program, of such 
        failure not later than 30 days after such failure occurs.
        ``(2) Notice.--The notice and information provided in paragraph 
    (1) to a parent or parents of a child identified for participation 
    in a language instruction educational program for limited English 
    proficient children shall be in an understandable and uniform 
    format and, to the extent practicable, provided in a language that 
    the parents can understand.
        ``(3) Special rule applicable during the school year.--For 
    those children who have not been identified as limited English 
    proficient prior to the beginning of the school year the local 
    educational agency shall notify parents within the first 2 weeks of 
    the child being placed in a language instruction educational 
    program consistent with paragraphs (1) and (2).
        ``(4) Parental participation.--Each local educational agency 
    receiving funds under this part shall implement an effective means 
    of outreach to parents of limited English proficient students to 
    inform the parents regarding how the parents can be involved in the 
    education of their children, and be active participants in 
    assisting their children to attain English proficiency, achieve at 
    high levels in core academic subjects, and meet challenging State 
    academic achievement standards and State academic content standards 
    expected of all students, including holding, and sending notice of 
    opportunities for, regular meetings for the purpose of formulating 
    and responding to recommendations from parents of students assisted 
    under this part.
        ``(5) Basis for admission or exclusion.--A student shall not be 
    admitted to, or excluded from, any federally assisted education 
    program on the basis of a surname or language-minority status.

``SEC. 1113. ELIGIBLE SCHOOL ATTENDANCE AREAS.

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

``SEC. 1114. SCHOOLWIDE PROGRAMS.

    ``(a) Use of Funds for Schoolwide Programs.--
        ``(1) In general.--A local educational agency may consolidate 
    and use funds under this part, together with other Federal, State, 
    and local funds, in order to upgrade the entire educational program 
    of a school that serves an eligible school attendance area in which 
    not less than 40 percent of the children are from low-income 
    families, or not less than 40 percent of the children enrolled in 
    the school are from such families.
        ``(2) Identification of students not required.--
            ``(A) In general.--No school participating in a schoolwide 
        program shall be required--
                ``(i) to identify particular children under this part 
            as eligible to participate in a schoolwide program; or
                ``(ii) to provide services to such children that are 
            supplementary, as otherwise required by section 1120A(b).
            ``(B) Supplemental funds.--A school participating in a 
        schoolwide program shall use funds available to carry out this 
        section only to supplement the amount of funds that would, in 
        the absence of funds under this part, be made available from 
        non-Federal sources for the school, including funds needed to 
        provide services that are required by law for children with 
        disabilities and children with limited English proficiency.
        ``(3) Exemption from statutory and regulatory requirements.--
            ``(A) Exemption.--Except as provided in subsection (b), the 
        Secretary may, through publication of a notice in the Federal 
        Register, exempt schoolwide programs under this section from 
        statutory or regulatory provisions of any other noncompetitive 
        formula grant program administered by the Secretary (other than 
        formula or discretionary grant programs under the Individuals 
        with Disabilities Education Act, except as provided in section 
        613(a)(2)(D) of such Act), or any discretionary grant program 
        administered by the Secretary, to support schoolwide programs 
        if the intent and purposes of such other programs are met.
            ``(B) Requirements.--A school that chooses to use funds 
        from such other programs shall not be relieved of the 
        requirements relating to health, safety, civil rights, student 
        and parental participation and involvement, services to private 
        school children, maintenance of effort, comparability of 
        services, uses of Federal funds to supplement, not supplant 
        non-Federal funds, or the distribution of funds to State 
        educational agencies or local educational agencies that apply 
        to the receipt of funds from such programs.
            ``(C) Records.--A school that consolidates and uses funds 
        from different Federal programs under this section shall not be 
        required to maintain separate fiscal accounting records, by 
        program, that identify the specific activities supported by 
        those particular funds as long as the school maintains records 
        that demonstrate that the schoolwide program, considered as a 
        whole, addresses the intent and purposes of each of the Federal 
        programs that were consolidated to support the schoolwide 
        program.
        ``(4) Professional development.--Each school receiving funds 
    under this part for any fiscal year shall devote sufficient 
    resources to effectively carry out the activities described in 
    subsection (b)(1)(D) in accordance with section 1119 for such 
    fiscal year, except that a school may enter into a consortium with 
    another school to carry out such activities.
    ``(b) Components of a Schoolwide Program.--
        ``(1) In general.--A schoolwide program shall include the 
    following components:
            ``(A) A comprehensive needs assessment of the entire school 
        (including taking into account the needs of migratory children 
        as defined in section 1309(2)) that is based on information 
        which includes the achievement of children in relation to the 
        State academic content standards and the State student academic 
        achievement standards described in section 1111(b)(1).
            ``(B) Schoolwide reform strategies that--
                ``(i) provide opportunities for all children to meet 
            the State's proficient and advanced levels of student 
            academic achievement described in section 1111(b)(1)(D);
                ``(ii) use effective methods and instructional 
            strategies that are based on scientifically based research 
            that--

                    ``(I) strengthen the core academic program in the 
                school;
                    ``(II) increase the amount and quality of learning 
                time, such as providing an extended school year and 
                before- and after-school and summer programs and 
                opportunities, and help provide an enriched and 
                accelerated curriculum; and
                    ``(III) include strategies for meeting the 
                educational needs of historically underserved 
                populations;

                ``(iii)(I) include strategies to address the needs of 
            all children in the school, but particularly the needs of 
            low-achieving children and those at risk of not meeting the 
            State student academic achievement standards who are 
            members of the target population of any program that is 
            included in the schoolwide program, which may include--

                    ``(aa) counseling, pupil services, and mentoring 
                services;
                    ``(bb) college and career awareness and 
                preparation, such as college and career guidance, 
                personal finance education, and innovative teaching 
                methods, which may include applied learning and team-
                teaching strategies; and
                    ``(cc) the integration of vocational and technical 
                education programs; and

                ``(II) address how the school will determine if such 
            needs have been met; and
                ``(iv) are consistent with, and are designed to 
            implement, the State and local improvement plans, if any.
            ``(C) Instruction by highly qualified teachers.
            ``(D) In accordance with section 1119 and subsection 
        (a)(4), high-quality and ongoing professional development for 
        teachers, principals, and paraprofessionals and, if 
        appropriate, pupil services personnel, parents, and other staff 
        to enable all children in the school to meet the State's 
        student academic achievement standards.
            ``(E) Strategies to attract high-quality highly qualified 
        teachers to high-need schools.
            ``(F) Strategies to increase parental involvement in 
        accordance with section 1118, such as family literary services.
            ``(G) Plans for assisting preschool children in the 
        transition from early childhood programs, such as Head Start, 
        Even Start, Early Reading First, or a State-run preschool 
        program, to local elementary school programs.
            ``(H) Measures to include teachers in the decisions 
        regarding the use of academic assessments described in section 
        1111(b)(3) in order to provide information on, and to improve, 
        the achievement of individual students and the overall 
        instructional program.
            ``(I) Activities to ensure that students who experience 
        difficulty mastering the proficient or advanced levels of 
        academic achievement standards required by section 1111(b)(1) 
        shall be provided with effective, timely additional assistance 
        which shall include measures to ensure that students' 
        difficulties are identified on a timely basis and to provide 
        sufficient information on which to base effective assistance.
            ``(J) Coordination and integration of Federal, State, and 
        local services and programs, including programs supported under 
        this Act, violence prevention programs, nutrition programs, 
        housing programs, Head Start, adult education, vocational and 
        technical education, and job training.
        ``(2) Plan.--
            ``(A) In general.--Any eligible school that desires to 
        operate a schoolwide program shall first develop (or amend a 
        plan for such a program that was in existence on the day before 
        the date of enactment of the No Child Left Behind Act of 2001), 
        in consultation with the local educational agency and its 
        school support team or other technical assistance provider 
        under section 1117, a comprehensive plan for reforming the 
        total instructional program in the school that--
                ``(i) describes how the school will implement the 
            components described in paragraph (1);
                ``(ii) describes how the school will use resources 
            under this part and from other sources to implement those 
            components;
                ``(iii) includes a list of State educational agency and 
            local educational agency programs and other Federal 
            programs under subsection (a)(3) that will be consolidated 
            in the schoolwide program; and
                ``(iv) describes how the school will provide individual 
            student academic assessment results in a language the 
            parents can understand, including an interpretation of 
            those results, to the parents of a child who participates 
            in the academic assessments required by section 1111(b)(3).
            ``(B) Plan development.--The comprehensive plan shall be--
                ``(i) developed during a one-year period, unless--

                    ``(I) the local educational agency, after 
                considering the recommendation of the technical 
                assistance providers under section 1117, determines 
                that less time is needed to develop and implement the 
                schoolwide program; or
                    ``(II) the school is operating a schoolwide program 
                on the day preceding the date of enactment of the No 
                Child Left Behind Act of 2001, in which case such 
                school may continue to operate such program, but shall 
                develop amendments to its existing plan during the 
                first year of assistance after that date to reflect the 
                provisions of this section;

                ``(ii) developed with the involvement of parents and 
            other members of the community to be served and individuals 
            who will carry out such plan, including teachers, 
            principals, and administrators (including administrators of 
            programs described in other parts of this title), and, if 
            appropriate, pupil services personnel, technical assistance 
            providers, school staff, and, if the plan relates to a 
            secondary school, students from such school;
                ``(iii) in effect for the duration of the school's 
            participation under this part and reviewed and revised, as 
            necessary, by the school;
                ``(iv) available to the local educational agency, 
            parents, and the public, and the information contained in 
            such plan shall be in an understandable and uniform format 
            and, to the extent practicable, provided in a language that 
            the parents can understand; and
                ``(v) if appropriate, developed in coordination with 
            programs under Reading First, Early Reading First, Even 
            Start, Carl D. Perkins Vocational and Technical Education 
            Act of 1998, and the Head Start Act.
    ``(c) Prekindergarten Program.--A school that is eligible for a 
schoolwide program under this section may use funds made available 
under this part to establish or enhance prekindergarten programs for 
children below the age of 6, such as Even Start programs or Early 
Reading First programs.

``SEC. 1115. TARGETED ASSISTANCE SCHOOLS.

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

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

    ``(a) Local Review.--
        ``(1) In general.--Each local educational agency receiving 
    funds under this part shall--
            ``(A) use the State academic assessments and other 
        indicators described in the State plan to review annually the 
        progress of each school served under this part to determine 
        whether the school is making adequate yearly progress as 
        defined in section 1111(b)(2);
            ``(B) at the local educational agency's discretion, use any 
        academic assessments or any other academic indicators described 
        in the local educational agency's plan under section 
        1112(b)(1)(A) and (B) to review annually the progress of each 
        school served under this part to determine whether the school 
        is making adequate yearly progress as defined in section 
        1111(b)(2), except that the local educational agency may not 
        use such indicators (other than as provided for in section 
        1111(b)(2)(I)) if the indicators reduce the number or change 
        the schools that would otherwise be subject to school 
        improvement, corrective action, or restructuring under section 
        1116 if such additional indicators were not used, but may 
        identify additional schools for school improvement or in need 
        of corrective action or restructuring;
            ``(C) publicize and disseminate the results of the local 
        annual review described in paragraph (1) to parents, teachers, 
        principals, schools, and the community so that the teachers, 
        principals, other staff, and schools can continually refine, in 
        an instructionally useful manner, the program of instruction to 
        help all children served under this part meet the challenging 
        State student academic achievement standards established under 
        section 1111(b)(1); and
            ``(D) review the effectiveness of the actions and 
        activities the schools are carrying out under this part with 
        respect to parental involvement, professional development, and 
        other activities assisted under this part.
        ``(2) Available results.--The State educational agency shall 
    ensure that the results of State academic assessments administered 
    in that school year are available to the local educational agency 
    before the beginning of the next school year.
    ``(b) School Improvement.--
        ``(1) General requirements.--
            ``(A) Identification.--Subject to subparagraph (C), a local 
        educational agency shall identify for school improvement any 
        elementary school or secondary school served under this part 
        that fails, for 2 consecutive years, to make adequate yearly 
        progress as defined in the State's plan under section 
        1111(b)(2).
            ``(B) Deadline.--The identification described in 
        subparagraph (A) shall take place before the beginning of the 
        school year following such failure to make adequate yearly 
        progress.
            ``(C) Application.--Subparagraph (A) shall not apply to a 
        school if almost every student in each group specified in 
        section 1111(b)(2)(C)(v) enrolled in such school is meeting or 
        exceeding the State's proficient level of academic achievement.
            ``(D) Targeted assistance schools.--To determine if an 
        elementary school or a secondary school that is conducting a 
        targeted assistance program under section 1115 should be 
        identified for school improvement, corrective action, or 
        restructuring under this section, a local educational agency 
        may choose to review the progress of only the students in the 
        school who are served, or are eligible for services, under this 
        part.
            ``(E) Public school choice.--
                ``(i) In general.--In the case of a school identified 
            for school improvement under this paragraph, the local 
            educational agency shall, not later than the first day of 
            the school year following such identification, provide all 
            students enrolled in the school with the option to transfer 
            to another public school served by the local educational 
            agency, which may include a public charter school, that has 
            not been identified for school improvement under this 
            paragraph, unless such an option is prohibited by State 
            law.
                ``(ii) Rule.--In providing students the option to 
            transfer to another public school, the local educational 
            agency shall give priority to the lowest achieving children 
            from low-income families, as determined by the local 
            educational agency for purposes of allocating funds to 
            schools under section 1113(c)(1).
            ``(F) Transfer.--Students who use the option to transfer 
        under subparagraph (E) and paragraph (5)(A), (7)(C)(i), or 
        (8)(A)(i) or subsection (c)(10)(C)(vii) shall be enrolled in 
        classes and other activities in the public school to which the 
        students transfer in the same manner as all other children at 
        the public school.
        ``(2) Opportunity to review and present evidence; time limit.--
            ``(A) Identification.--Before identifying an elementary 
        school or a secondary school for school improvement under 
        paragraphs (1) or (5)(A), for corrective action under paragraph 
        (7), or for restructuring under paragraph (8), the local 
        educational agency shall provide the school with an opportunity 
        to review the school-level data, including academic assessment 
        data, on which the proposed identification is based.
            ``(B) Evidence.--If the principal of a school proposed for 
        identification under paragraph (1), (5)(A), (7), or (8) 
        believes, or a majority of the parents of the students enrolled 
        in such school believe, that the proposed identification is in 
        error for statistical or other substantive reasons, the 
        principal may provide supporting evidence to the local 
        educational agency, which shall consider that evidence before 
        making a final determination.
            ``(C) Final determination.--Not later than 30 days after a 
        local educational agency provides the school with the 
        opportunity to review such school-level data, the local 
        educational agency shall make public a final determination on 
        the status of the school with respect to the identification.
        ``(3) School plan.--
            ``(A) Revised plan.--After the resolution of a review under 
        paragraph (2), each school identified under paragraph (1) for 
        school improvement shall, not later than 3 months after being 
        so identified, develop or revise a school plan, in consultation 
        with parents, school staff, the local educational agency 
        serving the school, and outside experts, for approval by such 
        local educational agency. The school plan shall cover a 2-year 
        period and--
                ``(i) incorporate strategies based on scientifically 
            based research that will strengthen the core academic 
            subjects in the school and address the specific academic 
            issues that caused the school to be identified for school 
            improvement, and may include a strategy for the 
            implementation of a comprehensive school reform model that 
            includes each of the components described in part F;
                ``(ii) adopt policies and practices concerning the 
            school's core academic subjects that have the greatest 
            likelihood of ensuring that all groups of students 
            specified in section 1111(b)(2)(C)(v) and enrolled in the 
            school will meet the State's proficient level of 
            achievement on the State academic assessment described in 
            section 1111(b)(3) not later than 12 years after the end of 
            the 2001-2002 school year;
                ``(iii) provide an assurance that the school will spend 
            not less than 10 percent of the funds made available to the 
            school under section 1113 for each fiscal year that the 
            school is in school improvement status, for the purpose of 
            providing to the school's teachers and principal high-
            quality professional development that--

                    ``(I) directly addresses the academic achievement 
                problem that caused the school to be identified for 
                school improvement;
                    ``(II) meets the requirements for professional 
                development activities under section 1119; and
                    ``(III) is provided in a manner that affords 
                increased opportunity for participating in that 
                professional development;

                ``(iv) specify how the funds described in clause (iii) 
            will be used to remove the school from school improvement 
            status;
                ``(v) establish specific annual, measurable objectives 
            for continuous and substantial progress by each group of 
            students specified in section 1111(b)(2)(C)(v) and enrolled 
            in the school that will ensure that all such groups of 
            students will, in accordance with adequate yearly progress 
            as defined in section 1111(b)(2), meet the State's 
            proficient level of achievement on the State academic 
            assessment described in section 1111(b)(3) not later than 
            12 years after the end of the 2001-2002 school year;
                ``(vi) describe how the school will provide written 
            notice about the identification to parents of each student 
            enrolled in such school, in a format and, to the extent 
            practicable, in a language that the parents can understand;
                ``(vii) specify the responsibilities of the school, the 
            local educational agency, and the State educational agency 
            serving the school under the plan, including the technical 
            assistance to be provided by the local educational agency 
            under paragraph (4) and the local educational agency's 
            responsibilities under section 1120A;
                ``(viii) include strategies to promote effective 
            parental involvement in the school;
                ``(ix) incorporate, as appropriate, activities before 
            school, after school, during the summer, and during any 
            extension of the school year; and
                ``(x) incorporate a teacher mentoring program.
            ``(B) Conditional approval.--The local educational agency 
        may condition approval of a school plan under this paragraph 
        on--
                ``(i) inclusion of one or more of the corrective 
            actions specified in paragraph (7)(C)(iv); or
                ``(ii) feedback on the school improvement plan from 
            parents and community leaders.
            ``(C) Plan implementation.--Except as provided in 
        subparagraph (D), a school shall implement the school plan 
        (including a revised plan) expeditiously, but not later than 
        the beginning of the next full school year following the 
        identification under paragraph (1).
            ``(D) Plan approved during school year.--Notwithstanding 
        subparagraph (C), if a plan is not approved prior to the 
        beginning of a school year, such plan shall be implemented 
        immediately upon approval.
            ``(E) Local educational agency approval.--The local 
        educational agency, within 45 days of receiving a school plan, 
        shall--
                ``(i) establish a peer review process to assist with 
            review of the school plan; and
                ``(ii) promptly review the school plan, work with the 
            school as necessary, and approve the school plan if the 
            plan meets the requirements of this paragraph.
        ``(4) Technical assistance.--
            ``(A) In general.--For each school identified for school 
        improvement under paragraph (1), the local educational agency 
        serving the school shall ensure the provision of technical 
        assistance as the school develops and implements the school 
        plan under paragraph (3) throughout the plan's duration.
            ``(B) Specific assistance.--Such technical assistance--
                ``(i) shall include assistance in analyzing data from 
            the assessments required under section 1111(b)(3), and 
            other examples of student work, to identify and address 
            problems in instruction, and problems if any, in 
            implementing the parental involvement requirements 
            described in section 1118, the professional development 
            requirements described in section 1119, and the 
            responsibilities of the school and local educational agency 
            under the school plan, and to identify and address 
            solutions to such problems;
                ``(ii) shall include assistance in identifying and 
            implementing professional development, instructional 
            strategies, and methods of instruction that are based on 
            scientifically based research and that have proven 
            effective in addressing the specific instructional issues 
            that caused the school to be identified for school 
            improvement;
                ``(iii) shall include assistance in analyzing and 
            revising the school's budget so that the school's resources 
            are more effectively allocated to the activities most 
            likely to increase student academic achievement and to 
            remove the school from school improvement status; and
                ``(iv) may be provided--

                    ``(I) by the local educational agency, through 
                mechanisms authorized under section 1117; or
                    ``(II) by the State educational agency, an 
                institution of higher education (that is in full 
                compliance with all the reporting provisions of title 
                II of the Higher Education Act of 1965), a private not-
                for-profit organization or for-profit organization, an 
                educational service agency, or another entity with 
                experience in helping schools improve academic 
                achievement.

            ``(C) Scientifically based research.--Technical assistance 
        provided under this section by a local educational agency or an 
        entity approved by that agency shall be based on scientifically 
        based research.
        ``(5) Failure to make adequate yearly progress after 
    identification.--In the case of any school served under this part 
    that fails to make adequate yearly progress, as 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).
            ``(B) System.--In order to help students served under this 
        part meet challenging State student academic achievement 
        standards, each local educational agency shall implement a 
        system of corrective action in accordance with subparagraphs 
        (C) through (E).
            ``(C) Role of local educational agency.--In the case of any 
        school served by a local educational agency under this part 
        that fails to make adequate yearly progress, as defined by the 
        State under section 1111(b)(2), by the end of the second full 
        school year after the identification under paragraph (1), the 
        local educational agency shall--
                ``(i) continue to provide all students enrolled in the 
            school with the option to transfer to another public school 
            served by the local educational agency, in accordance with 
            paragraph (1)(E) and (F);
                ``(ii) continue to provide technical assistance 
            consistent with paragraph (4) while instituting any 
            corrective action under clause (iv);
                ``(iii) continue to make supplemental educational 
            services available, in accordance with subsection (e), to 
            children who remain in the school; and
                ``(iv) identify the school for corrective action and 
            take at least one of the following corrective actions:

                    ``(I) Replace the school staff who are relevant to 
                the failure to make adequate yearly progress.
                    ``(II) Institute and fully implement a new 
                curriculum, including providing appropriate 
                professional development for all relevant staff, that 
                is based on scientifically based research and offers 
                substantial promise of improving educational 
                achievement for low-achieving students and enabling the 
                school to make adequate yearly progress.
                    ``(III) Significantly decrease management authority 
                at the school level.
                    ``(IV) Appoint an outside expert to advise the 
                school on its progress toward making adequate yearly 
                progress, based on its school plan under paragraph (3).
                    ``(V) Extend the school year or school day for the 
                school.
                    ``(VI) Restructure the internal organizational 
                structure of the school.

            ``(D) Delay.--Notwithstanding any other provision of this 
        paragraph, the local educational agency may delay, for a period 
        not to exceed 1 year, implementation of the requirements under 
        paragraph (5), corrective action under this paragraph, or 
        restructuring under paragraph (8) if the school makes adequate 
        yearly progress for 1 year or if its failure to make adequate 
        yearly progress is due to exceptional or uncontrollable 
        circumstances, such as a natural disaster or a precipitous and 
        unforeseen decline in the financial resources of the local 
        educational agency or school. No such period shall be taken 
        into account in determining the number of consecutive years of 
        failure to make adequate yearly progress.
            ``(E) Publication and dissemination.--The local educational 
        agency shall publish and disseminate information regarding any 
        corrective action the local educational agency takes under this 
        paragraph at a school--
                ``(i) to the public and to the parents of each student 
            enrolled in the school subject to corrective action;
                ``(ii) in an understandable and uniform format and, to 
            the extent practicable, provided in a language that the 
            parents can understand; and
                ``(iii) through such means as the Internet, the media, 
            and public agencies.
        ``(8) Restructuring.--
            ``(A) Failure to make adequate yearly progress.--If, after 
        1 full school year of corrective action under paragraph (7), a 
        school subject to such corrective action continues to fail to 
        make adequate yearly progress, then the local educational 
        agency shall--
                ``(i) continue to provide all students enrolled in the 
            school with the option to transfer to another public school 
            served by the local educational agency, in accordance with 
            paragraph (1)(E) and (F);
                ``(ii) continue to make supplemental educational 
            services available, in accordance with subsection (e), to 
            children who remain in the school; and
                ``(iii) prepare a plan and make necessary arrangements 
            to carry out subparagraph (B).
            ``(B) Alternative governance.--Not later than the beginning 
        of the school year following the year in which the local 
        educational agency implements subparagraph (A), the local 
        educational agency shall implement one of the following 
        alternative governance arrangements for the school consistent 
        with State law:
                ``(i) Reopening the school as a public charter school.
                ``(ii) Replacing all or most of the school staff (which 
            may include the principal) who are relevant to the failure 
            to make adequate yearly progress.
                ``(iii) Entering into a contract with an entity, such 
            as a private management company, with a demonstrated record 
            of effectiveness, to operate the public school.
                ``(iv) Turning the operation of the school over to the 
            State 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 technical assistance to such agency for the purpose 
            of implementing this clause.
            ``(C) Prompt notice.--The local educational agency shall--
                ``(i) provide prompt notice to teachers and parents 
            whenever subparagraph (A) or (B) applies; and
                ``(ii) provide the teachers and parents with an 
            adequate opportunity to--

                    ``(I) comment before taking any action under those 
                subparagraphs; and
                    ``(II) participate in developing any plan under 
                subparagraph (A)(iii).

        ``(9) Transportation.--In any case described in paragraph 
    (1)(E) for schools described in paragraphs (1)(A), (5), (7)(C)(i), 
    and (8)(A), and subsection (c)(10)(C)(vii), the local educational 
    agency shall provide, or shall pay for the provision of, 
    transportation for the student to the public school the student 
    attends.
        ``(10) Funds for transportation and supplemental educational 
    services.--
            ``(A) In general.--Unless a lesser amount is needed to 
        comply with paragraph (9) and to satisfy all requests for 
        supplemental educational services under subsection (e), a local 
        educational agency shall spend an amount equal to 20 percent of 
        its allocation under subpart 2, from which the agency shall 
        spend--
                ``(i) an amount equal to 5 percent of its allocation 
            under subpart 2 to provide, or pay for, transportation 
            under paragraph (9);
                ``(ii) an amount equal to 5 percent of its allocation 
            under subpart 2 to provide supplemental educational 
            services under subsection (e); and
                ``(iii) an amount equal to the remaining 10 percent of 
            its allocation under subpart 2 for transportation under 
            paragraph (9), supplemental educational services under 
            subsection (e), or both, as the agency determines.
            ``(B) Total amount.--The total amount described in 
        subparagraph (A)(ii) is the maximum amount the local 
        educational agency shall be required to spend under this part 
        on supplemental educational services described in subsection 
        (e).
            ``(C) Insufficient funds.--If the amount of funds described 
        in subparagraph (A)(ii) or (iii) and available to provide 
        services under this subsection is insufficient to provide 
        supplemental educational services to each child whose parents 
        request the services, the local educational agency shall give 
        priority to providing the services to the lowest-achieving 
        children.
            ``(D) Prohibition.--A local educational agency shall not, 
        as a result of the application of this paragraph, reduce by 
        more than 15 percent the total amount made available under 
        section 1113(c) to a school described in paragraph (7)(C) or 
        (8)(A) of subsection (b).
        ``(11) Cooperative agreement.--In any case described in 
    paragraph (1)(E), (5)(A), (7)(C)(i), or (8)(A)(i), or subsection 
    (c)(10)(C)(vii) if all public schools served by the local 
    educational agency to which a child may transfer are identified for 
    school improvement, corrective action or restructuring, the agency 
    shall, to the extent practicable, establish a cooperative agreement 
    with other local educational agencies in the area for a transfer.
        ``(12) Duration.--If any school identified for school 
    improvement, corrective action, or restructuring makes adequate 
    yearly progress for 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), the State may 
    make rewards of the kinds described under section 1117 to the 
    agency.
        ``(3) Identification of local educational agency for 
    improvement.--A State shall identify for improvement any local 
    educational agency that, for 2 consecutive years, including the 
    period immediately prior to the date of enactment of the No Child 
    Left Behind Act of 2001, failed to make adequate yearly progress as 
    defined in the State's plan under section 1111(b)(2).
        ``(4) Targeted assistance schools.--When reviewing targeted 
    assistance schools served by a local educational agency, a State 
    educational agency may choose to review the progress of only the 
    students in such schools who are served, or are eligible for 
    services, under this part.
        ``(5) Opportunity to review and present evidence.--
            ``(A) Review.--Before identifying a local educational 
        agency for improvement under paragraph (3) or corrective action 
        under paragraph (10), a State educational agency shall provide 
        the local educational agency with an opportunity to review the 
        data, including academic assessment data, on which the proposed 
        identification is based.
            ``(B) Evidence.--If the local educational agency believes 
        that the proposed identification is in error for statistical or 
        other substantive reasons, the agency may provide supporting 
        evidence to the State educational agency, which shall consider 
        the evidence before making a final determination not later than 
        30 days after the State educational agency provides the local 
        educational agency with the opportunity to review such data 
        under subparagraph (A).
        ``(6) Notification to parents.--The State educational agency 
    shall promptly provide to the parents (in a format and, to the 
    extent practicable, in a language the parents can understand) of 
    each student enrolled in a school served by a local educational 
    agency identified for improvement, the results of the review under 
    paragraph (1) and, if the agency is identified for improvement, the 
    reasons for that identification and how parents can participate in 
    upgrading the quality of the local educational agency.
        ``(7) Local educational agency revisions.--
            ``(A) Plan.--Each local educational agency identified under 
        paragraph (3) shall, not later than 3 months after being so 
        identified, develop or revise a local educational agency plan, 
        in consultation with parents, school staff, and others. Such 
        plan shall--
                ``(i) incorporate scientifically based research 
            strategies that strengthen the core academic program in 
            schools served by the local educational agency;
                ``(ii) identify actions that have the greatest 
            likelihood of improving the achievement of participating 
            children in meeting the State's student academic 
            achievement standards;
                ``(iii) address the professional development needs of 
            the instructional staff serving the agency by committing to 
            spend not less than 10 percent of the funds received by the 
            local educational agency under subpart 2 for each fiscal 
            year in which the agency is identified for improvement for 
            professional development (including funds reserved for 
            professional development under subsection (b)(3)(A)(iii)), 
            but excluding funds reserved for professional development 
            under section 1119;
                ``(iv) include specific measurable achievement goals 
            and targets for each of the groups of students identified 
            in the disaggregated data pursuant to section 
            1111(b)(2)(C)(v), consistent with adequate yearly progress 
            as defined under section 1111(b)(2);
                ``(v) address the fundamental teaching and learning 
            needs in the schools of that agency, and the specific 
            academic problems of low-achieving students, including a 
            determination of why the local educational agency's prior 
            plan failed to bring about increased student academic 
            achievement;
                ``(vi) incorporate, as appropriate, activities before 
            school, after school, during the summer, and during an 
            extension of the school year;
                ``(vii) specify the responsibilities of the State 
            educational agency and the local educational agency under 
            the plan, including specifying the technical assistance to 
            be provided by the State educational agency under paragraph 
            (9) and the local educational agency's responsibilities 
            under section 1120A; and
                ``(viii) include strategies to promote effective 
            parental involvement in the school.
            ``(B) Implementation.--The local educational agency shall 
        implement the plan (including a revised plan) expeditiously, 
        but not later than the beginning of the next school year after 
        the school year in which the agency was identified for 
        improvement.
        ``(9) State educational agency responsibility.--
            ``(A) Technical or other assistance.--For each local 
        educational agency identified under paragraph (3), the State 
        educational agency shall provide technical or other assistance 
        if requested, as authorized under section 1117, to better 
        enable the local educational agency to--
                ``(i) develop and implement the local educational 
            agency's plan; and
                ``(ii) work with schools needing improvement.
            ``(B) Methods and strategies.--Technical assistance 
        provided under this section by the State educational agency or 
        an entity authorized by such agency shall be supported by 
        effective methods and instructional strategies based on 
        scientifically based research. Such technical assistance shall 
        address problems, if any, in implementing the parental 
        involvement activities described in section 1118 and the 
        professional development activities described in section 1119.
        ``(10) Corrective action.--In order to help students served 
    under this part meet challenging State student academic achievement 
    standards, each State shall implement a system of corrective action 
    in accordance with the following:
            ``(A) Definition.--As used in this paragraph, the term 
        `corrective action' means action, consistent with State law, 
        that--
                ``(i) substantially and directly responds to the 
            consistent academic failure that caused the State to take 
            such action and to any underlying staffing, curricular, or 
            other problems in the agency; and
                ``(ii) is designed to meet the goal of having all 
            students served under this part achieve at the proficient 
            and advanced student academic achievement levels.
            ``(B) General requirements.--After providing technical 
        assistance under paragraph (9) and subject to subparagraph (E), 
        the State--
                ``(i) may take corrective action at any time with 
            respect to a local educational agency that has been 
            identified under paragraph (3);
                ``(ii) shall take corrective action with respect to any 
            local educational agency that fails to make adequate yearly 
            progress, as defined by the State, by the end of the second 
            full school year after the identification of the agency 
            under paragraph (3); and
                ``(iii) shall continue to provide technical assistance 
            while instituting any corrective action under clause (i) or 
            (ii).
            ``(C) Certain corrective actions required.--In the case of 
        a local educational agency identified for corrective action, 
        the State educational agency shall take at least one of the 
        following corrective actions:
                ``(i) Deferring programmatic funds or reducing 
            administrative funds.
                ``(ii) Instituting and fully implementing a new 
            curriculum that is based on State and local academic 
            content and achievement standards, including providing 
            appropriate professional development based on 
            scientifically based research for all relevant staff, that 
            offers substantial promise of improving educational 
            achievement for low-achieving students.
                ``(iii) Replacing the local educational agency 
            personnel who are relevant to the failure to make adequate 
            yearly progress.
                ``(iv) Removing particular schools from the 
            jurisdiction of the local educational agency and 
            establishing alternative arrangements for public governance 
            and supervision of such schools.
                ``(v) Appointing, through the State educational agency, 
            a receiver or trustee to administer the affairs of the 
            local educational agency in place of the superintendent and 
            school board.
                ``(vi) Abolishing or restructuring the local 
            educational agency.
                ``(vii) Authorizing students to transfer from a school 
            operated by the local educational agency to a higher-
            performing public school operated by another local 
            educational agency in accordance with subsections (b)(1)(E) 
            and (F), and providing to such students transportation (or 
            the costs of transportation) to such schools consistent 
            with subsection (b)(9), in conjunction with carrying out 
            not less than one additional action described under this 
            subparagraph.
            ``(D) Hearing.--Prior to implementing any corrective action 
        under this paragraph, the State educational agency shall 
        provide notice and a hearing to the affected local educational 
        agency, if State law provides for such notice and hearing. The 
        hearing shall take place not later than 45 days following the 
        decision to implement corrective action.
            ``(E) Notice to parents.--The State educational agency 
        shall publish, and disseminate to parents and the public, 
        information on any corrective action the State educational 
        agency takes under this paragraph through such means as the 
        Internet, the media, and public agencies.
            ``(F) Delay.--Notwithstanding subparagraph (B)(ii), a State 
        educational agency may delay, for a period not to exceed 1 
        year, implementation of corrective action under this paragraph 
        if the local educational agency makes adequate yearly progress 
        for 1 year or its failure to make adequate yearly progress is 
        due to exceptional or uncontrollable circumstances, such as a 
        natural disaster or a precipitous and unforeseen decline in the 
        financial resources of the local educational agency. No such 
        period shall be taken into account in determining the number of 
        consecutive years of failure to make adequate yearly progress.
        ``(11) Special rule.--If a local educational agency makes 
    adequate yearly progress for 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;
                ``(ii) the identity of approved providers of those 
            services that are within the local educational agency or 
            whose services are reasonably available in neighboring 
            local educational agencies; and
                ``(iii) a brief description of the services, 
            qualifications, and demonstrated effectiveness of each such 
            provider;
            ``(B) if requested, assist parents in choosing a provider 
        from the list of approved providers maintained by the State;
            ``(C) apply fair and equitable procedures for serving 
        students if the number of spaces at approved providers is not 
        sufficient to serve all students; and
            ``(D) not disclose to the public the identity of any 
        student who is eligible for, or receiving, supplemental 
        educational services under this subsection without the written 
        permission of the parents of the student.
        ``(3) Agreement.--In the case of the selection of an approved 
    provider by a parent, the local educational agency shall enter into 
    an agreement with such provider. Such agreement shall--
            ``(A) require the local educational agency to develop, in 
        consultation with parents (and the provider chosen by the 
        parents), a statement of specific achievement goals for the 
        student, how the student's progress will be measured, and a 
        timetable for improving achievement that, in the case of a 
        student with disabilities, is consistent with the student's 
        individualized education program under section 614(d) of the 
        Individuals with Disabilities Education Act;
            ``(B) describe how the student's parents and the student's 
        teacher or teachers will be regularly informed of the student's 
        progress;
            ``(C) provide for the termination of such agreement if the 
        provider is unable to meet such goals and timetables;
            ``(D) contain provisions with respect to the making of 
        payments to the provider by the local educational agency; and
            ``(E) prohibit the provider from disclosing to the public 
        the identity of any student eligible for, or receiving, 
        supplemental educational services under this subsection without 
        the written permission of the parents of such student.
        ``(4) State educational agency responsibilities.--A State 
    educational agency shall--
            ``(A) in consultation with local educational agencies, 
        parents, teachers, and other interested members of the public, 
        promote maximum participation by providers to ensure, to the 
        extent practicable, that parents have as many choices as 
        possible;
            ``(B) develop and apply objective criteria, consistent with 
        paragraph (5), to potential providers that are based on a 
        demonstrated record of effectiveness in increasing the academic 
        proficiency of students in subjects relevant to meeting the 
        State academic content and student achievement standards 
        adopted under section 1111(b)(1);
            ``(C) maintain an updated list of approved providers across 
        the State, by school district, from which parents may select;
            ``(D) develop, implement, and publicly report on standards 
        and techniques for monitoring the quality and effectiveness of 
        the services offered by approved providers under this 
        subsection, and for withdrawing approval from providers that 
        fail, for 2 consecutive years, to contribute to increasing the 
        academic proficiency of students served under this subsection 
        as described in subparagraph (B); and
            ``(E) provide annual notice to potential providers of 
        supplemental educational services of the opportunity to provide 
        services under this subsection and of the applicable procedures 
        for obtaining approval from the State educational agency to be 
        an approved provider of those services.
        ``(5) Criteria for providers.--In order for a provider to be 
    included on the State list under paragraph (4)(C), a provider shall 
    agree to carry out the following:
            ``(A) Provide parents of children receiving supplemental 
        educational services under this subsection and the appropriate 
        local educational agency with information on the progress of 
        the children in increasing achievement, in a format and, to the 
        extent practicable, a language that such parents can 
        understand.
            ``(B) Ensure that instruction provided and content used by 
        the provider are consistent with the instruction provided and 
        content used by the local educational agency and State, and are 
        aligned with State student academic achievement standards.
            ``(C) Meet all applicable Federal, State, and local health, 
        safety, and civil rights laws.
            ``(D) Ensure that all instruction and content under this 
        subsection are secular, neutral, and nonideological.
        ``(6) Amounts for supplemental educational services.--The 
    amount that a local educational agency shall make available for 
    supplemental educational services for each child receiving those 
    services under this subsection shall be the lesser of--
            ``(A) the amount of the agency's allocation under subpart 
        2, divided by the number of children from families below the 
        poverty level counted under section 1124(c)(1)(A); or
            ``(B) the actual costs of the supplemental educational 
        services received by the child.
        ``(7) Funds provided by state educational agency.--Each State 
    educational agency may use funds that the agency reserves under 
    this part, and part A of title V, to assist local educational 
    agencies that do not have sufficient funds to provide services 
    under this subsection for all eligible students requesting such 
    services.
        ``(8) Duration.--The local educational agency shall continue to 
    provide supplemental educational services to a child receiving such 
    services under this subsection until the end of the school year in 
    which such services were first received.
        ``(9) Prohibition.--Nothing contained in this subsection shall 
    permit the making of any payment for religious worship or 
    instruction.
        ``(10) Waiver.--
            ``(A) Requirement.--At the request of a local educational 
        agency, a State educational agency may waive, in whole or in 
        part, the requirement of this subsection to provide 
        supplemental educational services if the State educational 
        agency determines that--
                ``(i) none of the providers of those services on the 
            list approved by the State educational agency under 
            paragraph (4)(C) makes those services available in the area 
            served by the local educational agency or within a 
            reasonable distance of that area; and
                ``(ii) the local educational agency provides evidence 
            that it is not able to provide those services.
            ``(B) Notification.--The State educational agency shall 
        notify the local educational agency, within 30 days of 
        receiving the local educational agency's request for a waiver 
        under subparagraph (A), whether the request is approved or 
        disapproved and, if disapproved, the reasons for the 
        disapproval, in writing.
        ``(11) Special rule.--If State law prohibits a State 
    educational agency from carrying out one or more of its 
    responsibilities under paragraph (4) with respect to those who 
    provide, or seek approval to provide, supplemental educational 
    services, each local educational agency in the State shall carry 
    out those responsibilities with respect to its students who are 
    eligible for those services.
        ``(12) Definitions.--In this subsection--
            ``(A) the term `eligible child' means a child from a low-
        income family, as determined by the local educational agency 
        for purposes of allocating funds to schools under section 
        1113(c)(1);
            ``(B) the term `provider' means a non-profit entity, a for-
        profit entity, or a local educational agency that--
                ``(i) has a demonstrated record of effectiveness in 
            increasing student academic achievement;
                ``(ii) is capable of providing supplemental educational 
            services that are consistent with the instructional program 
            of the local educational agency and the academic standards 
            described under section 1111; and
                ``(iii) is financially sound; and
            ``(C) the term `supplemental educational services' means 
        tutoring and other supplemental academic enrichment services 
        that are--
                ``(i) in addition to instruction provided during the 
            school day; and
                ``(ii) are of high quality, research-based, and 
            specifically designed to increase the academic achievement 
            of eligible children on the academic assessments required 
            under section 1111 and attain proficiency in meeting the 
            State's academic achievement standards.
    ``(f) Schools and LEAs Previously Identified for Improvement or 
Corrective Action.--
        ``(1) Schools.--
            ``(A) School improvement.--
                ``(i) Schools in school-improvement status before date 
            of enactment.--Any school that was in the first year of 
            school improvement status under this section on the day 
            preceding the date of enactment of the No Child Left Behind 
            Act of 2001 (as this section was in effect on such day) 
            shall be treated by the local educational agency as a 
            school that is in the first year of school improvement 
            status under paragraph (1).
                ``(ii) Schools in school-improvement status for 2 or 
            more years before date of enactment.--Any school that was 
            in school improvement status under this section for 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) Special rule.--For the schools and other local 
        educational agencies described under paragraphs (1) and (2), as 
        required, the State shall ensure that public school choice in 
        accordance with subparagraphs (b)(1)(E) and (F) and 
        supplemental education services in accordance with subsection 
        (e) are provided not later than the first day of the 2002-2003 
        school year.
            ``(D) Transition.--With respect to a determination that a 
        local educational agency has for 2 consecutive years failed to 
        make adequate yearly progress as defined in the State plan 
        under section 1111(b)(2), such determination shall include in 
        such 2-year period any continuous period of time immediately 
        preceding the date of enactment of the No Child Left Behind Act 
        of 2001 during which the agency has failed to make such 
        progress.
    ``(g) Schools Funded by the Bureau of Indian Affairs.--
        ``(1) Adequate yearly progress for bureau funded schools.--
            ``(A) Development of definition.--
                ``(i) Definition.--The Secretary of the Interior, in 
            consultation with the Secretary if the Secretary of 
            Interior requests the consultation, using the process set 
            out in section 1138(b) of the Education Amendments of 1978, 
            shall define adequate yearly progress, consistent with 
            section 1111(b), for the schools funded by the Bureau of 
            Indian Affairs on a regional or tribal basis, as 
            appropriate, taking into account the unique circumstances 
            and needs of such schools and the students served by such 
            schools.
                ``(ii) Use of definition.--The Secretary of the 
            Interior, consistent with clause (i), may use the 
            definition of adequate yearly progress that the State in 
            which the school that is funded by the Bureau is located 
            uses consistent with section 1111(b), or in the case of 
            schools that are located in more than 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. If 
        such definition is waived, the tribal governing body or school 
        board shall, within 60 days thereafter, submit to the Secretary 
        of Interior a proposal for an alternative definition of 
        adequate yearly progress, consistent with section 1111(b), that 
        takes into account the unique circumstances and needs of such 
        school or schools and the students served. The Secretary of the 
        Interior, in consultation with the Secretary if the Secretary 
        of Interior requests the consultation, shall approve such 
        alternative definition unless the Secretary determines that the 
        definition does not meet the requirements of section 1111(b), 
        taking into account the unique circumstances and needs of such 
        school or schools and the students served.
            ``(C) Technical assistance.--The Secretary of Interior 
        shall, in consultation with the Secretary if the Secretary of 
        Interior requests the consultation, either directly or through 
        a contract, provide technical assistance, upon request, to a 
        tribal governing body or school board of a school funded by the 
        Bureau of Indian Affairs that seeks to develop an alternative 
        definition of adequate yearly progress.
        ``(2) Accountability for bia schools.--For the purposes of this 
    section, schools funded by the Bureau of Indian Affairs shall be 
    considered schools subject to subsection (b), as specifically 
    provided for in this subsection, except that such schools shall not 
    be subject to subsection (c), or the requirements to provide public 
    school choice and supplemental educational services under 
    subsections (b) and (e).
        ``(3) School improvement for bureau schools.--
            ``(A) Contract and grant schools.--For a school funded by 
        the Bureau of Indian Affairs which is operated under a contract 
        issued by the Secretary of the Interior pursuant to the Indian 
        Self-Determination Act (25 U.S.C. 450 et seq.) or under a grant 
        issued by the Secretary of the Interior pursuant to the 
        Tribally Controlled Schools Act of 1988 (25 U.S.C. 2501 et 
        seq.), the school board of such school shall be responsible for 
        meeting the requirements of subsection (b) relating to 
        development and implementation of any school improvement plan 
        as described in subsections (b)(1) through (b)(3), and 
        subsection (b)(5), other than subsection (b)(1)(E). The Bureau 
        of Indian Affairs shall be responsible for meeting the 
        requirements of subsection (b)(4) relating to technical 
        assistance.
            ``(B) Bureau operated schools.--For schools operated by the 
        Bureau of Indian Affairs, the Bureau shall be responsible for 
        meeting the requirements of subsection (b) relating to 
        development and implementation of any school improvement plan 
        as described in subsections (b)(1) through (b)(5), other than 
        subsection (b)(1)(E).
        ``(4) Corrective action and restructuring for bureau-funded 
    schools.--
            ``(A) Contract and grant schools.--For a school funded by 
        the Bureau of Indian Affairs which is operated under a contract 
        issued by the Secretary of the Interior pursuant to the Indian 
        Self-Determination Act (25 U.S.C. 450 et seq.) or under a grant 
        issued by the Secretary of the Interior pursuant to the 
        Tribally Controlled Schools Act of 1988 (25 U.S.C. 2501 et 
        seq.), the school board of such school shall be responsible for 
        meeting the requirements of subsection (b) relating to 
        corrective action and restructuring as described in subsection 
        (b)(7) and (b)(8). Any action taken by such school board under 
        subsection (b)(7) or (b)(8) shall take into account the unique 
        circumstances and structure of the Bureau of Indian Affairs-
        funded school system and the laws governing that system.
            ``(B) Bureau operated schools.--For schools operated by the 
        Bureau of Indian Affairs, the Bureau shall be responsible for 
        meeting the requirements of subsection (b) relating to 
        corrective action and restructuring as described in subsection 
        (b)(7) and (b)(8). Any action taken by the Bureau under 
        subsection (b)(7) or (b)(8) shall take into account the unique 
        circumstances and structure of the Bureau of Indian Affairs-
        funded school system and the laws governing that system.
        ``(5) Annual report.--On an annual basis, the Secretary of the 
    Interior shall report to the Secretary of Education and to the 
    appropriate committees of Congress regarding any schools funded by 
    the Bureau of Indian Affairs which have been identified for school 
    improvement. Such report shall include--
            ``(A) the identity of each school;
            ``(B) a statement from each affected school board regarding 
        the factors that lead to such identification; and
            ``(C) an analysis by the Secretary of the Interior, in 
        consultation with the Secretary if the Secretary of Interior 
        requests the consultation, as to whether sufficient resources 
        were available to enable such school to achieve adequate yearly 
        progress.
    ``(h) Other Agencies.--After receiving the notice described in 
subsection (b)(14)(D), the Secretary may notify, to the extent feasible 
and necessary as determined by the Secretary, other relevant Federal 
agencies regarding the major factors that were determined by the State 
educational agency to have significantly affected student academic 
achievement.

``SEC. 1117. SCHOOL SUPPORT AND RECOGNITION.

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

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

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

    ``(a) Teacher Qualifications and Measurable Objectives.--
        ``(1) In general.--Beginning with the first day of the first 
    school year after the date of enactment of the No Child Left Behind 
    Act of 2001, each local educational agency receiving assistance 
    under this part shall ensure that all teachers hired after such day 
    and teaching in a program supported with funds under this part are 
    highly qualified.
        ``(2) State plan.--As part of the plan described in section 
    1111, each State educational agency receiving assistance under this 
    part shall develop a plan to ensure that all teachers teaching in 
    core academic subjects within the State are highly qualified not 
    later than the end of the 2005-2006 school year. Such plan shall 
    establish annual measurable objectives for each local educational 
    agency and school that, at a minimum--
            ``(A) shall include an annual increase in the percentage of 
        highly qualified teachers at each local educational agency and 
        school, to ensure that all teachers teaching in core academic 
        subjects in each public elementary school and secondary school 
        are highly qualified not later than the end of the 2005-2006 
        school year;
            ``(B) shall include an annual increase in the percentage of 
        teachers who are receiving high-quality professional 
        development to enable such teachers to become highly qualified 
        and successful classroom teachers; and
            ``(C) may include such other measures as the State 
        educational agency determines to be appropriate to increase 
        teacher qualifications.
        ``(3) Local plan.--As part of the plan described in section 
    1112, each local educational agency receiving assistance under this 
    part shall develop a plan to ensure that all teachers teaching 
    within the school district served by the local educational agency 
    are highly qualified not later than the end of the 2005-2006 school 
    year.
    ``(b) Reports.--
        ``(1) Annual state and local reports.--
            ``(A) Local reports.--Each State educational agency 
        described in subsection (a)(2) shall require each local 
        educational agency receiving funds under this part to publicly 
        report, each year, beginning with the 2002-2003 school year, 
        the annual progress of the local educational agency as a whole 
        and of each of the schools served by the agency, in meeting the 
        measurable objectives described in subsection (a)(2).
            ``(B) State reports.--Each State educational agency 
        receiving assistance under this part shall prepare and submit 
        each year, beginning with the 2002-2003 school year, a report 
        to the Secretary, describing the State educational agency's 
        progress in meeting the measurable objectives described in 
        subsection (a)(2).
            ``(C) Information from other reports.--A State educational 
        agency or local educational agency may submit information from 
        the reports described in section 1111(h) for the purposes of 
        this subsection, if such report is modified, as may be 
        necessary, to contain the information required by this 
        subsection, and may submit such information as a part of the 
        reports required under section 1111(h).
        ``(2) Annual reports by the secretary.--Each year, beginning 
    with the 2002-2003 school year, the Secretary shall publicly report 
    the annual progress of State educational agencies, local 
    educational agencies, and schools, in meeting the measurable 
    objectives described in subsection (a)(2).
    ``(c) New Paraprofessionals.--
        ``(1) In general.--Each local educational agency receiving 
    assistance under this part shall ensure that all paraprofessionals 
    hired after the date of enactment of the No Child Left Behind Act 
    of 2001 and working in a program supported with funds under this 
    part shall have--
            ``(A) completed at least 2 years of study at an institution 
        of higher education;
            ``(B) obtained an associate's (or higher) degree; or
            ``(C) met a rigorous standard of quality and can 
        demonstrate, through a formal State or local academic 
        assessment--
                ``(i) knowledge of, and the ability to assist in 
            instructing, reading, writing, and mathematics; or
                ``(ii) knowledge of, and the ability to assist in 
            instructing, reading readiness, writing readiness, and 
            mathematics readiness, as appropriate.
        ``(2) Clarification.--The receipt of a secondary school diploma 
    (or its recognized equivalent) shall be necessary but not 
    sufficient to satisfy the requirements of paragraph (1)(C).
    ``(d) Existing Paraprofessionals.--Each local educational agency 
receiving assistance under this part shall ensure that all 
paraprofessionals hired before the date of enactment of the No Child 
Left Behind Act of 2001, and working in a program supported with funds 
under this part shall, not later than 4 years after the date of 
enactment satisfy the requirements of subsection (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 classroom 
        instruction or that do not benefit participating children, so 
        long as the amount of time spent on such duties is the same 
        proportion of total work time as prevails with respect to 
        similar personnel at the same school.
    ``(h) Use of Funds.--A local educational agency receiving funds 
under this part may use such funds to support ongoing training and 
professional development to assist teachers and paraprofessionals in 
satisfying the requirements of this section.
    ``(i) Verification of Compliance.--
        ``(1) In general.--In verifying compliance with this section, 
    each local educational agency, at a minimum, shall require that the 
    principal of each school operating a program under section 1114 or 
    1115 attest annually in writing as to whether such school is in 
    compliance with the requirements of this section.
        ``(2) Availability of information.--Copies of attestations 
    under paragraph (1)--
            ``(A) shall be maintained at each school operating a 
        program under section 1114 or 1115 and at the main office of 
        the local educational agency; and
            ``(B) shall be available to any member of the general 
        public on request.
    ``(j) Combinations of Funds.--Funds provided under this part that 
are used for professional development purposes may be combined with 
funds provided under title II of this Act, other Acts, and other 
sources.
    ``(k) Special Rule.--Except as provided in subsection (l), no State 
educational agency shall require a school or a local educational agency 
to expend a specific amount of funds for professional development 
activities under this part, except that this paragraph shall not apply 
with respect to requirements under section 1116(c)(3).
    ``(l) Minimum Expenditures.--Each local educational agency that 
receives funds under this part shall use not less than 5 percent, or 
more than 10 percent, of such funds for each of fiscal years 2002 and 
2003, and not less than 5 percent of the funds for each subsequent 
fiscal year, for professional development activities to ensure that 
teachers who are not highly qualified become highly qualified not later 
than the end of the 2005-2006 school year.

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

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

``SEC. 1120A. FISCAL REQUIREMENTS.

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

``SEC. 1120B. COORDINATION REQUIREMENTS.

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

                        ``Subpart 2--Allocations

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

    ``(a) Reservation of Funds.--From the amount appropriated for 
payments to States for any fiscal year under section 1002(a) and 
1125A(f), the Secretary shall reserve a total of 1 percent to provide 
assistance to--
        ``(1) the outlying areas in the amount determined in accordance 
    with subsection (b); and
        ``(2) the Secretary of the Interior in the amount necessary to 
    make payments pursuant to subsection (d).
    ``(b) Assistance to Outlying Areas.--
        ``(1) Funds reserved.--From the amount made available for any 
    fiscal year under subsection (a), the Secretary shall award grants 
    to local educational agencies in the outlying areas.
        ``(2) Competitive grants.--Until each appropriate outlying area 
    enters into an agreement for extension of United States educational 
    assistance under the Compact of Free Association after the date of 
    enactment of the No Child Left Behind Act of 2001, the Secretary 
    shall carry out the competition described in paragraph (3), except 
    that the amount reserved to carry out such competition shall not 
    exceed $5,000,000.
        ``(3) Limitation for competitive grants.--
            ``(A) Competitive grants.--The Secretary shall use funds 
        described in paragraph (2) to award grants to the outlying 
        areas and freely associated States to carry out the purposes of 
        this part.
            ``(B) Award basis.--The Secretary shall award grants under 
        subparagraph (A) on a competitive basis, taking into 
        consideration the recommendations of the Pacific Region 
        Educational Laboratory in Honolulu, Hawaii.
            ``(C) Uses.--Except as provided in subparagraph (D), grant 
        funds awarded under this paragraph may be used only--
                ``(i) for programs described in this Act, including 
            teacher training, curriculum development, instructional 
            materials, or general school improvement and reform; and
                ``(ii) to provide direct educational services that 
            assist all students with meeting challenging State academic 
            content standards.
            ``(D) Administrative costs.--The Secretary may provide not 
        more than 5 percent of the amount reserved for grants under 
        this paragraph to pay the administrative costs of the Pacific 
        Region Educational Laboratory under subparagraph (B).
        ``(4) Special rule.--The provisions of Public Law 95-134, 
    permitting the consolidation of grants by the outlying areas, shall 
    not apply to funds provided to the freely associated States under 
    this section.
    ``(c) Definitions.--For the purpose of subsections (a) and (b)--
        ``(1) the term `freely associated states' means the Republic of 
    the Marshall Islands, the Federated States of Micronesia, and the 
    Republic of Palau; and
        ``(2) the term `outlying area' means the United States Virgin 
    Islands, Guam, American Samoa, and the Commonwealth of the Northern 
    Mariana Islands.
    ``(d) Allotment to the Secretary of the Interior.--
        ``(1) In general.--The amount allotted for payments to the 
    Secretary of the Interior under subsection (a)(2) for any fiscal 
    year shall be, as determined pursuant to criteria established by 
    the Secretary, the amount necessary to meet the special educational 
    needs of--
            ``(A) Indian children on reservations served by elementary 
        schools and secondary schools for Indian children operated or 
        supported by the Department of the Interior; and
            ``(B) out-of-State Indian children in elementary schools 
        and secondary schools in local educational agencies under 
        special contracts with the Department of the Interior.
        ``(2) Payments.--From the amount allotted for payments to the 
    Secretary of the Interior under subsection (a)(2), the Secretary of 
    the Interior shall make payments to local educational agencies, on 
    such terms as the Secretary determines will best carry out the 
    purposes of this part, with respect to out-of-State Indian children 
    described in paragraph (1). The amount of such payment may not 
    exceed, for each such child, the greater of--
            ``(A) 40 percent of the average per-pupil expenditure in 
        the State in which the agency is located; or
            ``(B) 48 percent of such expenditure in the United States.

``SEC. 1122. ALLOCATIONS TO STATES.

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

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

    ``(a) Amount of Grants.--
        ``(1) Grants for local educational agencies and puerto rico.--
    Except as provided in paragraph (4) and in section 1126, the grant 
    that a local educational agency is eligible to receive under this 
    section for a fiscal year is the amount determined by multiplying--
            ``(A) the number of children counted under subsection (c); 
        and
            ``(B) 40 percent of the average per-pupil expenditure in 
        the State, except that the amount determined under this 
        subparagraph shall not be less than 32 percent, or more than 48 
        percent, of the average per-pupil expenditure in the United 
        States.
        ``(2) Calculation of grants.--
            ``(A) Allocations to local educational agencies.--The 
        Secretary shall calculate grants under this section on the 
        basis of the number of children counted under subsection (c) 
        for local educational agencies, unless the Secretary and the 
        Secretary of Commerce determine that some or all of those data 
        are unreliable or that their use would be otherwise 
        inappropriate, in which case--
                ``(i) the two Secretaries shall publicly disclose the 
            reasons for their determination in detail; and
                ``(ii) paragraph (3) shall apply.
            ``(B) Allocations to large and small local educational 
        agencies.--
                ``(i) For any fiscal year to which this paragraph 
            applies, the Secretary shall calculate grants under this 
            section for each local educational agency.
                ``(ii) The amount of a grant under this section for 
            each large local educational agency shall be the amount 
            determined under clause (i).
                ``(iii) For small local educational agencies, the State 
            educational agency may either--

                    ``(I) distribute grants under this section in 
                amounts determined by the Secretary under clause (i); 
                or
                    ``(II) use an alternative method approved by the 
                Secretary to distribute the portion of the State's 
                total grants under this section that is based on those 
                small agencies.

                ``(iv) An alternative method under clause (iii)(II) 
            shall be based on population data that the State 
            educational agency determines best reflect the current 
            distribution of children in poor families among the State's 
            small local educational agencies that meet the eligibility 
            criteria of subsection (b).
                ``(v) If a small local educational agency is 
            dissatisfied with the determination of its grant by the 
            State educational agency under clause (iii)(II), it may 
            appeal that determination to the Secretary, who shall 
            respond not later than 45 days after receipt of such 
            appeal.
                ``(vi) As used in this subparagraph--

                    ``(I) the term `large local educational agency' 
                means a local educational agency serving an area with a 
                total population of 20,000 or more; and
                    ``(II) the term `small local educational agency' 
                means a local educational agency serving an area with a 
                total population of less than 20,000.

        ``(3) Allocations to counties.--
            ``(A) Calculation.--For any fiscal year to which this 
        paragraph applies, the Secretary shall calculate grants under 
        this section on the basis of the number of children counted 
        under subsection (c) for counties, and State educational 
        agencies shall suballocate county amounts to local educational 
        agencies, in accordance with regulations issued by the 
        Secretary.
            ``(B) Direct allocations.--In any State in which a large 
        number of local educational agencies overlap county boundaries, 
        or for which the State believes it has data that would better 
        target funds than allocating them by county, the State 
        educational agency may apply to the Secretary for authority to 
        make the allocations under this subpart for a particular fiscal 
        year directly to local educational agencies without regard to 
        counties.
            ``(C) Allocations to local educational agencies.--If the 
        Secretary approves the State educational agency's application 
        under subparagraph (B), the State educational agency shall 
        provide the Secretary an assurance that such allocations shall 
        be made--
                ``(i) using precisely the same factors for determining 
            a grant as are used under this subpart; or
                ``(ii) using data that the State educational agency 
            submits to the Secretary for approval that more accurately 
            target poverty.
            ``(D) Appeal.--The State educational agency shall provide 
        the Secretary an assurance that it will establish a procedure 
        through which a local educational agency that is dissatisfied 
        with its determinations under subparagraph (B) may appeal 
        directly to the Secretary for a final determination.
        ``(4) Puerto rico.--
            ``(A) In general.--For each fiscal year, the grant that the 
        Commonwealth of Puerto Rico shall be eligible to receive under 
        this section shall be the amount determined by multiplying the 
        number of children counted under subsection (c) for the 
        Commonwealth of Puerto Rico by the product of--
                ``(i) subject to subparagraph (B), the percentage that 
            the average per-pupil expenditure in the Commonwealth of 
            Puerto Rico is of the lowest average per-pupil expenditure 
            of any of the 50 States; and
                ``(ii) 32 percent of the average per-pupil expenditure 
            in the United States.
            ``(B) Minimum percentage.--The percentage in subparagraph 
        (A)(i) shall not be less than--
                ``(i) for fiscal year 2002, 77.5 percent;
                ``(ii) for fiscal year 2003, 80.0 percent;
                ``(iii) for fiscal year 2004, 82.5 percent;
                ``(iv) for fiscal year 2005, 85.0 percent;
                ``(v) for fiscal year 2006, 92.5 percent; and
                ``(vi) for fiscal year 2007 and succeeding fiscal 
            years, 100.0 percent.
            ``(C) Limitation.--If the application of subparagraph (B) 
        would result in any of the 50 States or the District of 
        Columbia receiving less under this subpart than it received 
        under this subpart for the preceding fiscal year, the 
        percentage in subparagraph (A) shall be the greater of--
                ``(i) the percentage in subparagraph (A)(i);
                ``(ii) the percentage specified in subparagraph (B) for 
            the preceding fiscal year; or
                ``(iii) the percentage used for the preceding fiscal 
            year.
    ``(b) Minimum Number of Children To Qualify.--A local educational 
agency is eligible for a basic grant under this section for any fiscal 
year only if the number of children counted under subsection (c) for 
that agency is both--
        ``(1) 10 or more; and
        ``(2) more than 2 percent of the total school-age population in 
    the agency's jurisdiction.
    ``(c) Children To Be Counted.--
        ``(1) Categories of children.--The number of children to be 
    counted for purposes of this section is the aggregate of--
            ``(A) the number of children aged 5 to 17, inclusive, in 
        the school district of the local educational agency from 
        families below the poverty level as determined under paragraph 
        (2);
            ``(B) the number of children (determined under paragraph 
        (4) for either the preceding year as described in that 
        paragraph, or for the second preceding year, as the Secretary 
        finds appropriate) aged 5 to 17, inclusive, in the school 
        district of such agency in institutions for neglected and 
        delinquent children (other than such institutions operated by 
        the United States), but not counted pursuant to subpart 1 of 
        part D for the purposes of a grant to a State agency, or being 
        supported in foster homes with public funds; and
            ``(C) the number of children aged 5 to 17, inclusive, in 
        the school district of such agency from families above the 
        poverty level as determined under paragraph (4).
        ``(2) Determination of number of children.--For the purposes of 
    this section, the Secretary shall determine the number of children 
    aged 5 to 17, inclusive, from families below the poverty level on 
    the basis of the most recent satisfactory data, described in 
    paragraph (3), available from the Department of Commerce. The 
    District of Columbia and the Commonwealth of Puerto Rico shall be 
    treated as individual local educational agencies. If a local 
    educational agency contains 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) Inappropriate or unreliable data.--If the Secretary 
        and the Secretary of Commerce determine that some or all of the 
        data referred to in subparagraph (A) are inappropriate or 
        unreliable, the Secretary and the Secretary of Commerce shall 
        publicly disclose their reasons.
            ``(C) Criteria of poverty.--In determining the families 
        that are below the poverty level, the Secretary shall use the 
        criteria of poverty used by the Bureau of the Census in 
        compiling the most recent decennial census, as the criteria 
        have been updated by increases in the Consumer Price Index for 
        All Urban Consumers, published by the Bureau of Labor 
        Statistics.
        ``(4) Other children to be counted.--
            ``(A) For the purpose of this section, the Secretary shall 
        determine the number of children aged 5 to 17, inclusive, from 
        families above the poverty level on the basis of the number of 
        such children from families receiving an annual income, in 
        excess of the current criteria of poverty, from payments under 
        a State program funded under part A of title IV of the Social 
        Security Act; and in making such determinations, the Secretary 
        shall use the criteria of poverty used by the Bureau of the 
        Census in compiling the most recent decennial census for a 
        family of 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) Except for the data on children living in 
        institutions for neglected or delinquent children, the 
        Secretary of Health and Human Services shall collect and 
        transmit the information required by this subparagraph to the 
        Secretary not later than January 1 of each year.
            ``(D) For the purpose of this section, the Secretary shall 
        consider all children who are in correctional institutions to 
        be living in institutions for delinquent children.
        ``(5) Estimate.--When requested by the Secretary, the Secretary 
    of Commerce shall make a special updated estimate of the number of 
    children of such ages who are from families below the poverty level 
    (as determined under paragraph (1)(A)) in each school district, and 
    the Secretary is authorized to pay (either in advance or by way of 
    reimbursement) the Secretary of Commerce the cost of making this 
    special estimate. The Secretary of Commerce shall give 
    consideration to any request of the chief executive of a State for 
    the collection of additional census information.
    ``(d) State Minimum.--Notwithstanding section 1122, the aggregate 
amount allotted for all local educational agencies within a State may 
not be less than the lesser of--
        ``(1) 0.25 percent of the total amount allocated to States 
    under this section for fiscal year 2001, plus 0.35 percent of the 
    total amount allocated to States under this section in excess of 
    the amount allocated for fiscal year 2001; or
        ``(2) the average of--
            ``(A) the amount calculated in paragraph (1), above; and
            ``(B) the number of children in such State counted under 
        subsection (c) in the fiscal year multiplied by 150 percent of 
        the national average per-pupil payment made with funds 
        available under this section for that year.

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

    ``(a) Eligibility for and Amount of Grants.--
        ``(1) In general.--(A) Except as otherwise provided in this 
    paragraph, each local educational agency which is eligible for a 
    grant under section 1124 for any fiscal year is eligible for an 
    additional grant under this section for that fiscal year if the 
    number of children counted under section 1124(c) in the agency 
    exceeds either--
            ``(i) 6,500; or
            ``(ii) 15 percent of the total number of children aged 5 
        through 17 in the agency.
        ``(B) Notwithstanding section 1122, no State shall receive less 
    than the lesser of--
            ``(i) 0.25 percent of the total amount allocated to States 
        under this section for fiscal year 2001, plus 0.35 percent of 
        the total amount allocated to States under this section in 
        excess of the amount allocated for fiscal year 2001; or
            ``(ii) the average of--
                ``(I) the amount calculated under clause (i); and
                ``(II) the greater of--

                    ``(aa) $340,000; or
                    ``(bb) the number of children in such State counted 
                for purposes of this section in that fiscal year 
                multiplied by 150 percent of the national average per-
                pupil payment made with funds available under this 
                section for that year.

        ``(2) Determination.--For each county or local educational 
    agency eligible to receive an additional grant under this section 
    for any fiscal year, the Secretary shall determine the product of--
            ``(A) the number of children counted under section 1124(c) 
        for that fiscal year; and
            ``(B) the amount in section 1124(a)(1)(B) for each State 
        except the Commonwealth of Puerto Rico, and the amount in 
        section 1124(a)(4) for the Commonwealth of Puerto Rico.
        ``(3) Amount.--The amount of the additional grant for which an 
    eligible local educational agency or county is eligible under this 
    section for any fiscal year shall be an amount which bears the same 
    ratio to the amount available to carry out this section for that 
    fiscal year as the product determined under paragraph (2) for such 
    local educational agency for that fiscal year bears to the sum of 
    such products for all local educational agencies in the United 
    States for that fiscal year.
        ``(4) Local allocations.--(A) Grant amounts under this section 
    shall be determined in accordance with section 1124(a)(2), (3), and 
    (4).
        ``(B) For any fiscal year for which the Secretary allocates 
    funds under this section on the basis of counties, a State may 
    reserve not more than 2 percent of its allocation under this 
    section to make grants to local educational agencies that meet the 
    criteria of paragraph (1)(A)(i) or (ii) and are in ineligible 
    counties that do not meet these criteria.
    ``(b) Small States.--In any State for which on the date of 
enactment of the No Child Left Behind Act of 2001 the number of 
children counted under section 1124(c) is less than 0.25 percent of the 
number of those children counted for all States, the State educational 
agency shall allocate funds under this section among the local 
educational agencies in the State either--
        ``(1) in accordance with paragraphs (2) and (4) of subsection 
    (a); or
        ``(2) based on their respective concentrations and numbers of 
    children counted under section 1124(c), except that only those 
    local educational agencies with concentrations or numbers of 
    children counted under section 1124(c) that exceed the statewide 
    average percentage of such children or the statewide average number 
    of such children shall receive any funds on the basis of this 
    paragraph.

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

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

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

    ``(a) Findings.--Congress makes the following findings:
        ``(1) The current Basic Grant Formula for the distribution of 
    funds under this part often does not provide funds for the 
    economically disadvantaged students for which such funds are 
    targeted.
        ``(2) Any school district in which more than 2 percent of the 
    students live below the poverty level qualifies for funding under 
    the Basic Grant Formula. As a result, 9 out of every 10 school 
    districts in the country receive some form of aid under the 
    Formula.
        ``(3) 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. 1125A. EDUCATION FINANCE INCENTIVE GRANT PROGRAM.

    ``(a) Grants.--From funds appropriated under subsection (f) the 
Secretary is authorized to make grants to States, from allotments under 
subsection (b), to carry out the programs and activities of this part.
    ``(b) Distribution Based Upon Fiscal Effort and Equity.--
        ``(1) In general.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        funds appropriated pursuant to subsection (f) shall be allotted 
        to each State based upon the number of children counted under 
        section 1124(c) in such State multiplied by the product of--
                ``(i) the amount in section 1124(a)(1)(B) for all 
            States other than the Commonwealth of Puerto Rico, except 
            that the amount determined under that subparagraph shall 
            not be less that 34 percent or more than 46 percent of the 
            average per pupil expenditure in the United States, and the 
            amount in section 1124(a)(4) for the Commonwealth of Puerto 
            Rico, except that the amount in section 1124(a)(4)(A)(ii) 
            shall be 34 percent of the average per pupil expenditure in 
            the United States; multiplied by
                ``(ii) such State's effort factor described in 
            paragraph (2); multiplied by
                ``(iii) 1.30 minus such State's equity factor described 
            in paragraph (3).
            ``(B) State minimum.--Notwithstanding any other provision 
        of this section or section 1122, from the total amount 
        available for any fiscal year to carry out this section, each 
        State shall be allotted at least the lesser of--
                ``(i) 0.35 percent of total appropriations; or
                ``(ii) the average of--

                    ``(I) 0.35 percent of the total amount available to 
                carry out this section; and
                    ``(II) 150 percent of the national average grant 
                under this section per child described in section 
                1124(c), without application of a weighting factor, 
                multiplied by the State's total number of children 
                described in section 1124(c), without application of a 
                weighting factor.

        ``(2) Effort factor.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        the effort factor for a State shall be determined in accordance 
        with the succeeding sentence, except that such factor shall not 
        be less than 0.95 nor greater than 1.05. The effort factor 
        determined under this sentence shall be a fraction the 
        numerator of which is the product of the 3-year average per-
        pupil expenditure in the State multiplied by the 3-year average 
        per capita income in the United States and the denominator of 
        which is the product of the 3-year average per capita income in 
        such State multiplied by the 3-year average per-pupil 
        expenditure in the United States.
            ``(B) Commonwealth of puerto rico.--The effort factor for 
        the Commonwealth of Puerto Rico shall be equal to the lowest 
        effort factor calculated under subparagraph (A) for any State.
        ``(3) Equity factor.--
            ``(A) Determination.--
                ``(i) In general.--Except as provided in subparagraph 
            (B), the Secretary shall determine the equity factor under 
            this section for each State in accordance with clause (ii).
                ``(ii) Computation.--

                    ``(I) In general.--For each State, the Secretary 
                shall compute a weighted coefficient of variation for 
                the per-pupil expenditures of local educational 
                agencies in accordance with subclauses (II), (III), and 
                (IV).
                    ``(II) Variation.--In computing coefficients of 
                variation, the Secretary shall weigh the variation 
                between per-pupil expenditures in each local 
                educational agency and the average per-pupil 
                expenditures in the State according to the number of 
                pupils served by the local educational agency.
                    ``(III) Number of pupils.--In determining the 
                number of pupils under this paragraph served by each 
                local educational agency and in each State, the 
                Secretary shall multiply the number of children counted 
                under section 1124(c) by a factor of 1.4.
                    ``(IV) Enrollment requirement.--In computing 
                coefficients of variation, the Secretary shall include 
                only those local educational agencies with an 
                enrollment of more than 200 students.

            ``(B) Special rule.--The equity factor for a State that 
        meets the disparity standard described in section 222.162 of 
        title 34, Code of Federal Regulations (as such section was in 
        effect on the day preceding the date of enactment of the No 
        Child Left Behind Act of 2001) or a State with only 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.
        ``(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 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 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 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
                    ``(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;
                    ``(II) the number of such children between 692 and 
                2,262, inclusive, in such population, multiplied by 
                2.0;
                    ``(III) the number of such children between 2,263 
                and 7,851, inclusive, in such population, multiplied by 
                3.0;
                    ``(IV) the number of such children between 7,852 
                and 35,514, inclusive, in such population, multiplied 
                by 4.5; and
                    ``(V) the number of such children in excess of 
                35,514 in such population, multiplied by 6.0.

    ``(e) Maintenance of Effort.--
        ``(1) In general.--Except as provided in paragraph (2), a State 
    is entitled to receive its full allotment of funds under this 
    section for any fiscal year if the Secretary finds that either the 
    combined fiscal effort per student or the aggregate expenditures 
    within the State with respect to the provision of free public 
    education for the fiscal year preceding the fiscal year for which 
    the determination is made was not less than 90 percent of such 
    combined fiscal effort or aggregate expenditures for the second 
    fiscal year preceding the fiscal year for which the determination 
    is made.
        ``(2) Reduction of funds.--The Secretary shall reduce the 
    amount of funds awarded to any State under this section in any 
    fiscal year in the exact proportion to which the State fails to 
    meet the requirements of paragraph (1) by falling below 90 percent 
    of both the fiscal effort per student and aggregate expenditures 
    (using the measure most favorable to the State), and no such lesser 
    amount shall be used for computing the effort required under 
    paragraph (1) for subsequent years.
        ``(3) Waivers.--The Secretary may waive, for 1 fiscal year 
    only, the requirements of this subsection if the Secretary 
    determines that such a waiver would be equitable due to exceptional 
    or uncontrollable circumstances such as a natural disaster or a 
    precipitous and unforeseen decline in the financial resources of 
    the State.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2002 and for each of the 5 succeeding fiscal years.
    ``(g) Adjustments Where Necessitated by Appropriations.--
        ``(1) In general.--If the sums available under this section for 
    any fiscal year are insufficient to pay the full amounts that all 
    local educational agencies in States are eligible to receive under 
    this section for such year, the Secretary shall ratably reduce the 
    allocations to such local educational agencies, subject to 
    paragraphs (2) and (3).
        ``(2) Additional funds.--If additional funds become available 
    for making payments under this section for such fiscal year, 
    allocations that were reduced under paragraph (1) shall be 
    increased on the same basis as they were reduced.
        ``(3) Hold-harmless amounts.--For each fiscal year, if 
    sufficient funds are available, the amount made available to each 
    local educational agency under this section shall be
            ``(A) not less than 95 percent of the amount made available 
        for the preceding fiscal year if the number of children counted 
        for grants under section 1124 is not less than 30 percent of 
        the total number of children aged 5 to 17 years, inclusive, in 
        the local educational agency;
            ``(B) not less than 90 percent of the amount made available 
        for the preceding fiscal year if the percentage described in 
        subparagraph (A) is between 15 percent and 30 percent; and
            ``(C) not less than 85 percent of the amount made available 
        for the preceding fiscal year if the percentage described in 
        subparagraph (A) is below 15 percent.
        ``(4) Applicability.--Notwithstanding any other provision of 
    law, the Secretary shall not take into consideration the hold-
    harmless provisions of this subsection for any fiscal year for 
    purposes of calculating State or local allocations for the fiscal 
    year under any program administered by the Secretary other than a 
    program authorized under this part.

``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

    ``(a) Allocations for Neglected Children.--
        ``(1) In general.--If a State educational agency determines 
    that a local educational agency in the State is unable or unwilling 
    to provide for the special educational needs of children who are 
    living in institutions for neglected children as described in 
    section 1124(c)(1)(B), the State educational agency shall, if such 
    agency assumes responsibility for the special educational needs of 
    such children, receive the portion of such local educational 
    agency's allocation under sections 1124, 1124A, 1125, and 1125A 
    that is attributable to such children.
        ``(2) Special rule.--If the State educational agency does not 
    assume such responsibility, any other State or local public agency 
    that does assume such responsibility shall receive that portion of 
    the local educational agency's allocation.
    ``(b) Allocations Among Local Educational Agencies.--The State 
educational agency may allocate the amounts of grants under sections 
1124, 1124A, 1125, and 1125A among the affected local educational 
agencies--
        ``(1) if 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. 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.
    ``(b) Waiver.--A State educational agency may, once every 3 years, 
waive the percentage limitation in subsection (a) if--
        ``(1) the agency determines that the request of a local 
    educational agency is reasonable and necessary; or
        ``(2) supplemental appropriations for this subpart become 
    available.
    ``(c) Exclusion.--The percentage limitation under subsection (a) 
shall not apply to any local educational agency that receives less than 
$50,000 under this subpart for any fiscal year.

          ``PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS

                       ``Subpart 1--Reading First

``SEC. 1201. PURPOSES.

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

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

    ``(a) In General.--
        ``(1) Authorization to make grants.--In the case of each State 
    educational agency that in accordance with section 1203 submits to 
    the Secretary an application for a 6-year period, the Secretary, 
    from amounts appropriated under section 1002(b)(1) and subject to 
    the application's approval, shall make a grant to the State 
    educational agency for the uses specified in subsections (c) and 
    (d). For each fiscal year, the funds provided under the grant shall 
    equal the allotment determined for the State educational agency 
    under subsection (b).
        ``(2) Duration of grants.--Subject to subsection (e)(3), a 
    grant under this section shall be awarded for a period of not more 
    than 6 years.
    ``(b) Determination of Amount of Allotments.--
        ``(1) Reservations from appropriations.--From the total amount 
    made available to carry out this subpart for a fiscal year, the 
    Secretary--
            ``(A) shall reserve 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 educational 
    agency agrees to expend at least 80 percent of the amount of the 
    funds provided under the grant for the purpose of making, in 
    accordance with subsection (c), competitive subgrants to eligible 
    local educational agencies.
        ``(5) Reallotment.--If a State educational agency described in 
    paragraph (2) does not apply for an allotment under this section 
    for any fiscal year, or if the State educational agency's 
    application is not approved, the Secretary shall reallot such 
    amount to the remaining State educational agencies in accordance 
    with paragraph (3).
        ``(6) Definition of state.--For purposes of this subsection, 
    the term `State' means each of the 50 States, the District of 
    Columbia, and the Commonwealth of Puerto Rico.
    ``(c) Subgrants to Local Educational Agencies.--
        ``(1) Authorization to make subgrants.--In accordance with 
    paragraph (2), a State educational agency that receives a grant 
    under this section shall make competitive subgrants to eligible 
    local educational agencies.
        ``(2) Allocation.--
            ``(A) Minimum subgrant amount.--In making subgrants under 
        paragraph (1), a State educational agency shall allocate to 
        each eligible local educational agency that receives such a 
        subgrant, at a minimum, an amount that bears the same relation 
        to the funds made available under subsection (b)(4) as the 
        amount the eligible local educational agency received under 
        part A for the preceding fiscal year bears to the amount all 
        the local educational agencies in the State received under part 
        A for the preceding fiscal year.
            ``(B) Priority.--In making subgrants under paragraph (1), a 
        State educational agency shall give priority to eligible local 
        educational agencies in which at least--
                ``(i) 15 percent of the children served by the eligible 
            local educational agency are from families with incomes 
            below the poverty line; or
                ``(ii) 6,500 children served by the eligible local 
            educational agency are from families with incomes below the 
            poverty line.
        ``(3) Notice.--A State educational agency receiving a grant 
    under this section shall provide notice to all eligible local 
    educational agencies in the State of the availability of 
    competitive subgrants under this subsection and of the requirements 
    for applying for the subgrants.
        ``(4) Local application.--To be eligible to receive a subgrant 
    under this subsection, an eligible local educational agency shall 
    submit an application to the State educational agency at such time, 
    in such manner, and containing such information as the State 
    educational agency may reasonably require.
        ``(5) State requirement.--In distributing subgrant funds to 
    eligible local educational agencies under this subsection, a State 
    educational agency shall--
            ``(A) provide funds in sufficient size and scope to enable 
        the eligible local educational agencies to improve reading 
        instruction; and
            ``(B) provide the funds in amounts related to the number or 
        percentage of students in kindergarten through grade 3 who are 
        reading below grade level.
        ``(6) Limitation to certain schools.--In distributing subgrant 
    funds under this subsection, an eligible local educational agency 
    shall provide funds only to schools that both--
            ``(A) are among the schools served by that eligible local 
        educational agency with the highest percentages or numbers of 
        students in kindergarten through grade 3 reading below grade 
        level, based on the most currently available data; and
            ``(B)(i) are identified for school improvement under 
        section 1116(b); or
            ``(ii) have the highest percentages or numbers of children 
        counted under section 1124(c).
        ``(7) Local uses of funds.--
            ``(A) Required uses.--Subject to paragraph (8), an eligible 
        local educational agency that receives a subgrant under this 
        subsection shall use the funds provided under the subgrant to 
        carry out the following activities:
                ``(i) Selecting and administering screening, 
            diagnostic, and classroom-based instructional reading 
            assessments.
                ``(ii) Selecting and implementing a learning system or 
            program of reading instruction based on scientifically 
            based reading research that--

                    ``(I) includes the essential components of reading 
                instruction; and
                    ``(II) provides such instruction to the children in 
                kindergarten through grade 3 in the schools served by 
                the eligible local educational agency, including 
                children who--

                        ``(aa) may have reading difficulties;
                        ``(bb) are at risk of being referred to special 
                    education based on these difficulties;
                        ``(cc) have been evaluated under section 614 of 
                    the Individuals with Disabilities Education Act 
                    but, in accordance with section 614(b)(5) of that 
                    Act, have not been identified as being a child with 
                    a disability (as defined in section 602 of that 
                    Act);
                        ``(dd) are being served under such Act 
                    primarily due to being identified as being a child 
                    with a specific learning disability (as defined in 
                    section 602 of that Act) related to reading;
                        ``(ee) are deficient in the essential 
                    components of reading skills, as listed in 
                    subparagraphs (A) through (E) of section 1208(3); 
                    or
                        ``(ff) are identified as having limited English 
                    proficiency.
                ``(iii) Procuring and implementing instructional 
            materials, including education technology such as software 
            and other digital curricula, that are based on 
            scientifically based reading research.
                ``(iv) Providing professional development for teachers 
            of kindergarten through grade 3, and special education 
            teachers of kindergarten through grade 12, that--

                    ``(I) will prepare these teachers in all of the 
                essential components of reading instruction;
                    ``(II) shall include--

                        ``(aa) information on instructional materials, 
                    programs, strategies, and approaches based on 
                    scientifically based reading research, including 
                    early intervention, classroom reading materials, 
                    and remedial programs and approaches; and
                        ``(bb) instruction in the use of screening, 
                    diagnostic, and classroom-based instructional 
                    reading assessments and other procedures that 
                    effectively identify students who may be at risk 
                    for reading failure or who are having difficulty 
                    reading;

                    ``(III) shall be provided by eligible professional 
                development providers; and
                    ``(IV) will assist teachers in becoming 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.
        ``(8) Local planning and administration.--An eligible local 
    educational agency that receives a subgrant under this subsection 
    may use not more than 3.5 percent of the funds provided under the 
    subgrant for planning and administration.
    ``(d) State Uses of Funds.--
        ``(1) In general.--A State educational agency that receives a 
    grant under this section may expend not more than a total of 20 
    percent of the grant funds to carry out the activities described in 
    paragraphs (3), (4), and (5).
        ``(2) Priority.--A State educational agency shall give priority 
    to carrying out the activities described in paragraphs (3), (4), 
    and (5) for schools described in subsection (c)(6).
        ``(3) Professional inservice and preservice development and 
    review.--A State educational agency may expend not more than 65 
    percent of the amount of the funds made available under paragraph 
    (1)--
            ``(A) to develop and implement a program of professional 
        development for teachers, including special education teachers, 
        of kindergarten through grade 3 that--
                ``(i) will prepare these teachers in all the essential 
            components of reading instruction;
                ``(ii) shall include--

                    ``(I) information on instructional materials, 
                programs, strategies, and approaches based on 
                scientifically based reading research, including early 
                intervention and reading remediation materials, 
                programs, and approaches; and
                    ``(II) instruction in the use of screening, 
                diagnostic, and classroom-based instructional reading 
                assessments and other scientifically based procedures 
                that effectively identify students who may be at risk 
                for reading failure or who are having difficulty 
                reading; and

                ``(iii) shall be provided by eligible professional 
            development providers;
            ``(B) to strengthen and enhance preservice courses for 
        students preparing, at all public institutions of higher 
        education in the State, to teach kindergarten through grade 3 
        by--
                ``(i) reviewing such courses to determine whether the 
            courses' content is consistent with the findings of the 
            most current scientifically based reading research, 
            including findings on the essential components of reading 
            instruction;
                ``(ii) following up such reviews with recommendations 
            to ensure that such institutions offer courses that meet 
            the highest standards; and
                ``(iii) preparing a report on the results of such 
            reviews, submitting the report to the reading and literacy 
            partnership for the State established under section 
            1203(d), and making the report available for public review 
            by means of the Internet; and
            ``(C) to make recommendations on how the State licensure 
        and certification standards in the area of reading might be 
        improved.
        ``(4) Technical assistance for local educational agencies and 
    schools.--A State educational agency may expend not more than 25 
    percent of the amount of the funds made available under paragraph 
    (1) for 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.
                    ``(II) Specific identification of those schools and 
                local educational agencies that report the largest 
                gains in reading achievement.
                    ``(III) The progress the State educational agency 
                and local educational agencies within the State are 
                making in reducing the number of students served under 
                this subpart in grades 1, 2, and 3 who are reading 
                below grade level, as demonstrated by such information 
                as teacher reports and school evaluations of mastery of 
                the essential components of reading instruction.
                    ``(IV) Evidence on whether the State educational 
                agency and local educational agencies within the State 
                have significantly increased the number of students 
                reading at grade level or above, significantly 
                increased the percentages of students described in 
                section 1111(b)(2)(C)(v)(II) who are reading at grade 
                level or above, and successfully implemented this 
                subpart.

                ``(iii) Privacy protection.--Data in the report shall 
            be reported in a manner that protects the privacy of 
            individuals.
                ``(iv) Contract.--To the extent practicable, a State 
            educational agency shall enter into a contract with an 
            entity that conducts scientifically based reading research, 
            under which contract the entity will assist the State 
            educational agency in producing the reports required to be 
            submitted under this subparagraph.
    ``(e) Review.--
        ``(1) Progress report.--
            ``(A) Submission.--Not later than 60 days after the 
        termination of the third year of the grant period, each State 
        educational agency receiving a grant under this section shall 
        submit a progress report to the Secretary.
            ``(B) Information included.--The progress report shall 
        include information on the progress the State educational 
        agency and local educational agencies within the State are 
        making in reducing the number of students served under this 
        subpart in grades 1, 2, and 3 who are reading below grade level 
        (as demonstrated by such information as teacher reports and 
        school evaluations of mastery of the essential components of 
        reading instruction). The report shall also include evidence 
        from the State educational agency and local educational 
        agencies within the State that the State educational agency and 
        the local educational agencies have significantly increased the 
        number of students reading at grade level or above, 
        significantly increased the percentages of students described 
        in section 1111(b)(2)(C)(v)(II) who are reading at grade level 
        or above, and successfully implemented this subpart.
        ``(2) Peer review.--The progress report described in paragraph 
    (1) shall be reviewed by the peer review panel convened under 
    section 1203(c)(2).
        ``(3) Consequences of insufficient progress.--After submission 
    of the progress report described in paragraph (1), if the Secretary 
    determines that the State educational agency is not making 
    significant progress in meeting the purposes of this subpart, the 
    Secretary may withhold from the State educational agency, in whole 
    or in part, further payments under this section in accordance with 
    section 455 of the General Education Provisions Act or take such 
    other action authorized by law as the Secretary determines 
    necessary, including providing technical assistance upon request of 
    the State educational agency.
    ``(f) Funds not Used for State Level Activities.--Any portion of 
funds described in subsection (d)(1) that a State educational agency 
does not expend in accordance with subsection (d)(1) shall be expended 
for the purpose of making subgrants in accordance with subsection (c).

``SEC. 1203. STATE FORMULA GRANT APPLICATIONS.

    ``(a) Applications.--
        ``(1) In general.--A State educational agency that desires to 
    receive a grant under section 1202 shall submit an application to 
    the Secretary at such time and in such form as the Secretary may 
    require. The application shall contain the information described in 
    subsection (b).
        ``(2) Special application provisions.--For those State 
    educational agencies that have received a grant under part C of 
    title II (as such part was in effect on the day before the date of 
    enactment of the No Child Left Behind Act of 2001), the Secretary 
    shall establish a modified set of requirements for an application 
    under this section that takes into account the information already 
    submitted and approved under that program and minimizes the 
    duplication of effort on the part of such State educational 
    agencies.
    ``(b) Contents.--An application under this section shall contain 
the following:
        ``(1) An assurance that the Governor of the State, in 
    consultation with the State educational agency, has established a 
    reading and literacy partnership described in subsection (d), and a 
    description of how such partnership--
            ``(A) coordinated the development of the application; and
            ``(B) will assist in the oversight and evaluation of the 
        State educational agency's activities under this subpart.
        ``(2) A description, if applicable, of the State's strategy to 
    expand, continue, or modify activities authorized under part C of 
    title II (as such part was in effect on the day before the date of 
    enactment of the No Child Left Behind Act of 2001).
        ``(3) An assurance that the State educational agency, and any 
    local educational agencies receiving a subgrant from that State 
    educational agency under section 1202, will, if requested, 
    participate in the external evaluation under section 1205.
        ``(4) A State educational agency plan containing a description 
    of the following:
            ``(A) How the State educational agency will assist local 
        educational agencies in identifying screening, diagnostic, and 
        classroom-based instructional reading assessments.
            ``(B) How the State educational agency will assist local 
        educational agencies in identifying instructional materials, 
        programs, strategies, and approaches, based on scientifically 
        based reading research, including early intervention and 
        reading remediation materials, programs, and approaches.
            ``(C) How the State educational agency will ensure that 
        professional development activities related to reading 
        instruction and provided under section 1202 are--
                ``(i) coordinated with other Federal, State, and local 
            level funds, and used effectively to improve instructional 
            practices for reading; and
                ``(ii) based on scientifically based reading research.
            ``(D) How the activities assisted under section 1202 will 
        address the needs of teachers and other instructional staff in 
        implementing the essential components of reading instruction.
            ``(E) How subgrants made by the State educational agency 
        under section 1202 will meet the requirements of section 1202, 
        including how the State educational agency will ensure that 
        eligible local educational agencies receiving subgrants under 
        section 1202 will use practices based on scientifically based 
        reading research.
            ``(F) How the State educational agency will, to the extent 
        practicable, make grants to eligible local educational agencies 
        in both rural and urban areas.
            ``(G) How the State educational agency will build on, and 
        promote coordination among literacy programs in the State 
        (including federally funded programs such as programs under the 
        Adult Education and Family Literacy Act, the Individuals with 
        Disabilities Education Act, and subpart 2), to increase the 
        effectiveness of the programs in improving reading for adults 
        and children and to avoid duplication of the efforts of the 
        program.
            ``(H) How the State educational agency will assess and 
        evaluate, on a regular basis, eligible local educational agency 
        activities assisted under section 1202, with respect to whether 
        the activities have been effective in achieving the purposes of 
        section 1202.
            ``(I) Any other information that the Secretary may 
        reasonably require.
    ``(c) Approval of Applications.--
        ``(1) In general.--The Secretary shall approve an application 
    of a State educational agency under this section only if such 
    application meets the requirements of this section.
        ``(2) Peer review.--
            ``(A) In general.--The Secretary, in consultation with the 
        National Institute for Literacy, shall convene a panel to 
        evaluate applications under this section. At a minimum, the 
        panel shall include--
                ``(i) 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--
                ``(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;
            ``(C) a private nonprofit or for-profit eligible 
        professional development provider providing instruction based 
        on scientifically based reading research;
            ``(D) an adult education provider;
            ``(E) a volunteer organization that is involved in reading 
        programs; or
            ``(F) a school library or a public library that offers 
        reading or literacy programs for children or families.
        ``(4) Preexisting partnership.--If, before the date of 
    enactment of the No Child Left Behind Act of 2001, a State 
    educational agency established a consortium, partnership, or any 
    other similar body that was considered a reading and literacy 
    partnership for purposes of part C of title II of this Act (as such 
    part was in effect on the day before the date of enactment of No 
    Child Left Behind Act of 2001), that consortium, partnership, or 
    body may be considered a reading and literacy partnership for 
    purposes of this subsection consistent with the provisions of this 
    subpart.

``SEC. 1204. TARGETED ASSISTANCE GRANTS.

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

``SEC. 1205. EXTERNAL EVALUATION.

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

``SEC. 1206. NATIONAL ACTIVITIES.

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

``SEC. 1207. INFORMATION DISSEMINATION.

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

``SEC. 1208. DEFINITIONS.

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

                    ``(I) identifying a child's specific areas of 
                strengths and weaknesses so that the child has learned 
                to read by the end of grade 3;
                    ``(II) determining any difficulties that a child 
                may have in learning to read and the potential cause of 
                such difficulties; and
                    ``(III) helping to determine possible reading 
                intervention strategies and related special needs.

            ``(D) Classroom-based instructional reading assessment.--
        The term `classroom-based instructional reading assessment' 
        means an assessment that--
                ``(i) evaluates children's learning based on systematic 
            observations by teachers of children performing academic 
            tasks that are part of their daily classroom experience; 
            and
                ``(ii) is used to improve instruction in reading, 
            including classroom instruction.

                    ``Subpart 2--Early Reading First

``SEC. 1221. PURPOSES; DEFINITIONS.

    ``(a) Purposes.--The purposes of this subpart are as follows:
        ``(1) To support local efforts to enhance the early language, 
    literacy, and prereading development of preschool age children, 
    particularly those from low-income families, through strategies and 
    professional development that are based on scientifically based 
    reading research.
        ``(2) To provide preschool age children with cognitive learning 
    opportunities in high-quality language and literature-rich 
    environments, so that the children can attain the fundamental 
    knowledge and skills necessary for optimal reading development in 
    kindergarten and beyond.
        ``(3) To demonstrate language and literacy activities based on 
    scientifically based reading research that supports the age-
    appropriate development of--
            ``(A) recognition, leading to automatic recognition, of 
        letters of the alphabet;
            ``(B) knowledge of letter sounds, the blending of sounds, 
        and the use of increasingly complex vocabulary;
            ``(C) an understanding that written language is composed of 
        phonemes and letters each representing 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.

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

    ``(a) Program Authorized.--From amounts appropriated under section 
1002(b)(2), the Secretary shall award grants, on a competitive basis, 
for periods of not more than 6 years, to eligible applicants to enable 
the eligible applicants to carry out the authorized activities 
described in subsection (d).
    ``(b) Applications.--An eligible applicant that desires to receive 
a grant under this section shall submit an application to the 
Secretary, which shall include a description of--
        ``(1) the programs to be served by the proposed project, 
    including demographic and socioeconomic information on the 
    preschool age children enrolled in the programs;
        ``(2) how the proposed project will enhance the school 
    readiness of preschool age children in high-quality oral language 
    and literature-rich environments;
        ``(3) how the proposed project will prepare and provide ongoing 
    assistance to staff in the programs, through professional 
    development and other support, to provide high-quality language, 
    literacy, and prereading activities using scientifically based 
    reading research, for preschool age children;
        ``(4) how the proposed project will provide services and use 
    instructional materials that are based on scientifically based 
    reading research on early language acquisition, prereading 
    activities, and the development of spoken vocabulary skills;
        ``(5) how the proposed project will help staff in the programs 
    to meet more effectively the diverse needs of preschool age 
    children in the community, including such children with limited 
    English proficiency, disabilities, or other special needs;
        ``(6) how the proposed project will integrate such 
    instructional materials and literacy activities with existing 
    preschool programs and family literacy services;
        ``(7) how the proposed project will help children, particularly 
    children experiencing difficulty with spoken language, prereading, 
    and early reading skills, to make the transition from preschool to 
    formal classroom instruction in school;
        ``(8) if the eligible applicant has received a subgrant under 
    subpart 1, how the activities conducted under this subpart will be 
    coordinated with the eligible applicant's activities under subpart 
    1 at the kindergarten through grade 3 level;
        ``(9) how the proposed project will evaluate the success of the 
    activities supported under this subpart in enhancing the early 
    language, literacy, and prereading development of preschool age 
    children served by the project; and
        ``(10) such other information as the Secretary may require.
    ``(c) Approval of Local Applications.--The Secretary shall select 
applicants for funding under this subpart based on the quality of the 
applications and the recommendations of a peer review panel convened 
under section 1203(c)(2), that includes, at a minimum, 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:
        ``(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. 1223. FEDERAL ADMINISTRATION.

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

``SEC. 1224. INFORMATION DISSEMINATION.

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

``SEC. 1225. REPORTING REQUIREMENTS.

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

``SEC. 1226. EVALUATION.

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

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

``SEC. 1231. STATEMENT OF PURPOSE.

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

``SEC. 1232. PROGRAM AUTHORIZED.

    ``(a) Reservation for Migrant Programs, Outlying Areas, and Indian 
Tribes.--
        ``(1) In general.--For each fiscal year, the Secretary shall 
    reserve 5 percent of the amount appropriated under section 
    1002(b)(3) (or, if such appropriated amount exceeds $200,000,000, 6 
    percent of such amount) for programs, under such terms and 
    conditions as the Secretary shall establish, that are consistent 
    with the purpose of this subpart, and according to their relative 
    needs, for--
            ``(A) children of migratory workers;
            ``(B) the outlying areas; and
            ``(C) Indian tribes and tribal organizations.
        ``(2) Special rule.--After December 21, 2000, the Secretary 
    shall award a grant, on a competitive basis, of sufficient size and 
    for a period of sufficient duration to demonstrate the 
    effectiveness of a family literacy program in a prison that houses 
    women and their preschool age children and that has the capability 
    of developing a program of high quality.
        ``(3) Coordination of programs for american indians.--The 
    Secretary shall ensure that programs under paragraph (1)(C) are 
    coordinated with family literacy programs operated by the Bureau of 
    Indian Affairs in order to avoid duplication and to encourage the 
    dissemination of information on high-quality family literacy 
    programs serving American Indians.
    ``(b) Reservation for Federal Activities.--
        ``(1) Evaluation, technical assistance, program improvement, 
    and replication activities.--Subject to paragraph (2), from amounts 
    appropriated under section 1002(b)(3), the Secretary may reserve 
    not more than 3 percent of such amounts for purposes of--
            ``(A) carrying out the evaluation required by section 1239; 
        and
            ``(B) providing, through grants or contracts with eligible 
        organizations, technical assistance, program improvement, and 
        replication activities.
        ``(2) Research.--In any fiscal year, if the amount appropriated 
    under section 1002(b)(3) for such year--
            ``(A) is equal to or less than the amount appropriated for 
        the preceding fiscal year, the Secretary may reserve from such 
        amount only the amount necessary to continue multi-year 
        activities carried out pursuant to section 1241(b) that began 
        during or prior to the fiscal year preceding the fiscal year 
        for which the determination is made; or
            ``(B) exceeds the amount appropriated for the preceding 
        fiscal year, then the Secretary shall reserve from such excess 
        amount $2,000,000 or 50 percent, whichever is less, to carry 
        out section 1241(b).
    ``(c) Reservation for Grants.--
        ``(1) Grants authorized.--
            ``(A) In general.--For any fiscal year for which at least 
        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 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. 1233. STATE EDUCATIONAL AGENCY PROGRAMS.

    ``(a) State Educational Agency Level Activities.--Each State 
educational agency that receives a grant under section 1232(d)(1) may 
use not more than a total of 6 percent of the grant funds for the costs 
of--
        ``(1) administration, which amount shall not exceed half of the 
    total;
        ``(2) providing, through 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. 1234. USES OF FUNDS.

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

``SEC. 1235. PROGRAM ELEMENTS.

    ``Each program assisted under this subpart shall--
        ``(1) include the identification and recruitment of families 
    most in need of services provided under this subpart, as indicated 
    by a low level of income, a low level of adult literacy or English 
    language proficiency of the eligible parent or parents, and other 
    need-related indicators;
        ``(2) include screening and preparation of parents, including 
    teenage parents, and children to enable those parents and children 
    to participate fully in the activities and services provided under 
    this subpart, including testing, referral to necessary counselling, 
    other developmental and support services, and related services;
        ``(3) be designed to accommodate the participants' work 
    schedule and other responsibilities, including the provision of 
    support services, when those services are unavailable from other 
    sources, necessary for participation in the activities assisted 
    under this subpart, such as--
            ``(A) scheduling and locating of services to allow joint 
        participation by parents and children;
            ``(B) child care for the period that parents are involved 
        in the program provided under this subpart; and
            ``(C) transportation for the purpose of enabling parents 
        and their children to participate in programs authorized by 
        this subpart;
        ``(4) include high-quality, intensive instructional programs 
    that promote adult literacy and empower parents to support the 
    educational growth of their children, developmentally appropriate 
    early childhood educational services, and preparation of children 
    for success in regular school programs;
        ``(5) with respect to the qualifications of staff the cost of 
    whose salaries are paid, in whole or in part, with Federal funds 
    provided under this subpart, ensure that--
            ``(A) not later than December 21, 2004--
                ``(i) a majority of the individuals providing academic 
            instruction--

                    ``(I) shall have obtained an associate's, 
                bachelor's, or graduate degree in a field related to 
                early childhood education, elementary school or 
                secondary school education, or adult education; and
                    ``(II) if applicable, shall meet qualifications 
                established by the State for early childhood education, 
                elementary school or secondary school education, or 
                adult education provided as part of an Even Start 
                program or another family literacy program;

                ``(ii) the individual responsible for administration of 
            family literacy services under this subpart has received 
            training in the operation of a family literacy program; and
                ``(iii) paraprofessionals who provide support for 
            academic instruction have a secondary school diploma or its 
            recognized equivalent; and
            ``(B) all new personnel hired to provide academic 
        instruction--
                ``(i) have obtained an associate's, bachelor's, or 
            graduate degree in a field related to early childhood 
            education, elementary school or secondary school education, 
            or adult education; and
                ``(ii) if applicable, meet qualifications established 
            by the State for early childhood education, elementary 
            school or secondary school education, or adult education 
            provided as part of an Even Start program or another family 
            literacy program;
        ``(6) include special training of staff, including child-care 
    staff, to develop the skills necessary to work with parents and 
    young children in the full range of instructional services offered 
    through this subpart;
        ``(7) provide and monitor integrated instructional services to 
    participating parents and children through home-based programs;
        ``(8) operate on a year-round basis, including the provision of 
    some program services, including instructional and enrichment 
    services, during the summer months;
        ``(9) be coordinated with--
            ``(A) other programs assisted under this Act;
            ``(B) any relevant programs under the Adult Education and 
        Family Literacy Act, the Individuals with Disabilities 
        Education Act, and title I of the Workforce Investment Act of 
        1998; and
            ``(C) the Head Start program, volunteer literacy programs, 
        and other relevant programs;
        ``(10) use instructional programs based on scientifically based 
    reading research for children and adults, to the extent that 
    research is available;
        ``(11) encourage participating families to attend regularly and 
    to remain in the program a sufficient time to meet their program 
    goals;
        ``(12) include reading-readiness activities for preschool 
    children based on scientifically based reading research, to the 
    extent available, to ensure that children enter school ready to 
    learn to read;
        ``(13) if applicable, promote the continuity of family literacy 
    to ensure that individuals retain and improve their educational 
    outcomes;
        ``(14) ensure that the programs will serve those families most 
    in need of the activities and services provided by this subpart; 
    and
        ``(15) provide for an independent evaluation of the program, to 
    be used for program improvement.

``SEC. 1236. ELIGIBLE PARTICIPANTS.

    ``(a) In General.--Except as provided in subsection (b), eligible 
participants in an Even Start program are--
        ``(1) a parent or parents--
            ``(A) who are eligible for participation in adult education 
        and literacy activities under the Adult Education and Family 
        Literacy Act; or
            ``(B) who are within the State's compulsory school 
        attendance age range, so long as a local educational agency 
        provides (or ensures the availability of) the basic education 
        component required under this subpart, or who are attending 
        secondary school; and
        ``(2) the child or children, from birth through age 7, of any 
    individual described in paragraph (1).
    ``(b) Eligibility for Certain Other Participants.--
        ``(1) In general.--Family members of eligible participants 
    described in subsection (a) may participate in activities and 
    services provided under this subpart, when appropriate to serve the 
    purpose of this subpart.
        ``(2) Special rule.--Any family participating in a program 
    assisted under this subpart that becomes ineligible to participate 
    as a result of 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. 1237. APPLICATIONS.

    ``(a) Submission.--To be eligible to receive a subgrant under this 
subpart, an eligible entity shall submit an application to the State 
educational agency in such form and containing or accompanied by such 
information as the State educational agency shall require.
    ``(b) Required Documentation.--Each application shall include 
documentation, satisfactory to the State educational agency, that the 
eligible entity has the qualified personnel needed--
        ``(1) to develop, administer, and implement an Even Start 
    program under this subpart; and
        ``(2) to provide access to the special training necessary to 
    prepare staff for the program, which may be offered by an eligible 
    organization.
    ``(c) Plan.--
        ``(1) In general.--The application shall also include a plan of 
    operation and continuous improvement for the program, that 
    includes--
            ``(A) a description of the program objectives, strategies 
        to meet those objectives, and how those strategies and 
        objectives are consistent with the program indicators 
        established by the State;
            ``(B) a description of the activities and services that 
        will be provided under the program, including a description of 
        how the program will incorporate the program elements required 
        by section 1235;
            ``(C) a description of the population to be served and an 
        estimate of the number of participants to be served;
            ``(D) as appropriate, a description of the applicant's 
        collaborative efforts with institutions of higher education, 
        community-based organizations, the State educational agency, 
        private elementary schools, or other eligible organizations in 
        carrying out the program for which assistance is sought;
            ``(E) a statement of the methods that will be used--
                ``(i) to ensure that the programs will serve families 
            most in need of the activities and services provided by 
            this subpart;
                ``(ii) to provide services under this subpart to 
            individuals with special needs, such as individuals with 
            limited English proficiency and individuals with 
            disabilities; and
                ``(iii) to encourage participants to remain in the 
            program for a time sufficient to meet the program's 
            purpose;
            ``(F) a description of how the plan is integrated with 
        other programs under this Act or other Acts, as appropriate; 
        and
            ``(G) a description of how the plan provides for rigorous 
        and objective evaluation of progress toward the program 
        objectives described in subparagraph (A) and for continuing use 
        of evaluation data for program improvement.
        ``(2) Duration of the plan.--Each plan submitted under 
    paragraph (1) shall--
            ``(A) remain in effect for the duration of the eligible 
        entity's participation under this subpart; and
            ``(B) be periodically reviewed and revised by the eligible 
        entity as necessary.
    ``(d) Consolidated Application.--The plan described in subsection 
(c)(1) may be submitted as part of a consolidated application under 
section 9305.

``SEC. 1238. AWARD OF SUBGRANTS.

    ``(a) Selection Process.--
        ``(1) In general.--The State educational agency shall establish 
    a review panel in accordance with paragraph (3) that will approve 
    applications that--
            ``(A) are most likely to be successful in--
                ``(i) meeting the purpose of this subpart; and
                ``(ii) effectively implementing the program elements 
            required under section 1235;
            ``(B) demonstrate that the area to be served by the program 
        has a high percentage or a large number of children and 
        families who are in need of those services as indicated by high 
        levels of poverty, illiteracy, unemployment, limited English 
        proficiency, or other need-related indicators, such as a high 
        percentage of children to be served by the program who reside 
        in a school attendance area served by a local educational 
        agency eligible for participation in programs under part A, a 
        high number or percentage of parents who have been victims of 
        domestic violence, or a high number or percentage of parents 
        who are receiving assistance under a State program funded under 
        part A of title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.);
            ``(C) provide services for at least a 3-year age range, 
        which may begin at birth;
            ``(D) demonstrate the greatest possible cooperation and 
        coordination between a variety of relevant service providers in 
        all phases of the program;
            ``(E) include cost-effective budgets, given the scope of 
        the application;
            ``(F) demonstrate the applicant's ability to provide the 
        non-Federal share required by section 1234(b);
            ``(G) are representative of urban and rural regions of the 
        State; and
            ``(H) show the greatest promise for providing models that 
        may be adopted by other family literacy projects and other 
        local educational agencies.
        ``(2) Priority for subgrants.--The State educational agency 
    shall give priority for subgrants under this subsection to 
    applications that--
            ``(A) target services primarily to families described in 
        paragraph (1)(B); or
            ``(B) are located in areas designated as empowerment zones 
        or enterprise communities.
        ``(3) Review panel.--A review panel shall consist of at least 
    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
            ``(B) affording the eligible entity notice and an 
        opportunity for a hearing.
        ``(5) Grant renewal.--(A) An eligible entity that has 
    previously received a subgrant under this subpart may reapply under 
    this subpart for additional subgrants.
        ``(B) The Federal share of any subgrant renewed under 
    subparagraph (A) shall be limited in accordance with section 
    1234(b).

``SEC. 1239. EVALUATION.

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

``SEC. 1240. INDICATORS OF PROGRAM QUALITY.

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

``SEC. 1241. RESEARCH.

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

``SEC. 1242. CONSTRUCTION.

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

        ``Subpart 4--Improving Literacy Through School Libraries

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

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

               ``PART C--EDUCATION OF MIGRATORY CHILDREN

``SEC. 1301. PROGRAM PURPOSE.

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

``SEC. 1302. PROGRAM AUTHORIZED.

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

``SEC. 1303. STATE ALLOCATIONS.

    ``(a) State Allocations.--
        ``(1) Fiscal year 2002.--For fiscal year 2002, each State 
    (other than the Commonwealth of Puerto Rico) is entitled to receive 
    under this part an amount equal to--
            ``(A) the sum of the estimated number of migratory children 
        aged 3 through 21 who reside in the State full time and the 
        full-time equivalent of the estimated number of migratory 
        children aged 3 through 21 who reside in the State part time, 
        as determined in accordance with subsection (e); multiplied by
            ``(B) 40 percent of the average per-pupil expenditure in 
        the State, except that the amount determined under this 
        paragraph shall not be less than 32 percent, nor more than 48 
        percent, of the average per-pupil expenditure in the United 
        States.
        ``(2) Subsequent years.--
            ``(A) Base amount.--
                ``(i) In general.--Except as provided in subsection (b) 
            and clause (ii), each State (other than the Commonwealth of 
            Puerto Rico) is entitled to receive under this part, for 
            fiscal year 2003 and succeeding fiscal years, an amount 
            equal to--

                    ``(I) the amount that such State received under 
                this part for fiscal year 2002; plus
                    ``(II) the amount allocated to the State under 
                subparagraph (B).

                ``(ii) Nonparticipating states.--In the case of a State 
            (other than the Commonwealth of Puerto Rico) that did not 
            receive any funds for fiscal year 2002 under this part, the 
            State shall receive, for fiscal year 2003 and succeeding 
            fiscal years, an amount equal to--

                    ``(I) the amount that such State would have 
                received under this part for fiscal year 2002 if its 
                application under section 1304 for the year had been 
                approved; plus
                    ``(II) the amount allocated to the State under 
                subparagraph (B).

            ``(B) Allocation of additional amount.--For fiscal year 
        2003 and succeeding fiscal years, the amount (if any) by which 
        the funds appropriated to carry out this part for the year 
        exceed such funds for fiscal year 2002 shall be allocated to a 
        State (other than the Commonwealth of Puerto Rico) so that the 
        State receives an amount equal to--
                ``(i) the sum of--

                    ``(I) the number of identified eligible migratory 
                children, aged 3 through 21, residing in the State 
                during the previous year; and
                    ``(II) the number of identified eligible migratory 
                children, aged 3 through 21, who received services 
                under this part in summer or intersession programs 
                provided by the State during such year; multiplied by

                ``(ii) 40 percent of the average per-pupil expenditure 
            in the State, except that the amount determined under this 
            clause may not be less than 32 percent, or more than 48 
            percent, of the average per-pupil expenditure in the United 
            States.
    ``(b) Allocation to Puerto Rico.--
        ``(1) In general.--For each fiscal year, the grant which the 
    Commonwealth of Puerto Rico shall be eligible to receive under this 
    part shall be the amount determined by multiplying the number of 
    children who would be counted under subsection (a)(1)(A) if such 
    subsection applied to the Commonwealth of Puerto Rico by the 
    product of--
            ``(A) the percentage which the average per-pupil 
        expenditure in the Commonwealth of Puerto Rico is of the lowest 
        average per-pupil expenditure of any of the 50 States; and
            ``(B) 32 percent of the average per-pupil expenditure in 
        the United States.
        ``(2) Minimum percentage.--The percentage in paragraph (1)(A) 
    shall not be less than--
            ``(A) for fiscal year 2002, 77.5 percent;
            ``(B) for fiscal year 2003, 80.0 percent;
            ``(C) for fiscal year 2004, 82.5 percent; and
            ``(D) for fiscal year 2005 and succeeding fiscal years, 
        85.0 percent.
        ``(3) Limitation.--If the application of paragraph (2) for any 
    fiscal year would result in any of the 50 States or the District of 
    Columbia receiving less under this part than it received under this 
    part for the preceding fiscal year, then the percentage described 
    in paragraph (1)(A) that is used for the Commonwealth of Puerto 
    Rico for the fiscal year for which the determination is made shall 
    be the greater of the percentage in paragraph (1)(A) for such 
    fiscal year or the percentage used for the preceding fiscal year.
    ``(c) Ratable Reductions; Reallocations.--
        ``(1) In general.--(A) If, after the Secretary reserves funds 
    under section 1308(c), the amount appropriated to carry out this 
    part for any fiscal year is insufficient to pay in full the amounts 
    for which all States are eligible, the Secretary shall ratably 
    reduce each such amount.
        ``(B) If additional funds become available for making such 
    payments for any fiscal year, the Secretary shall allocate such 
    funds to States in amounts that the Secretary determines will best 
    carry out the purpose of this part.
        ``(2) Special rule.--(A) The Secretary shall further reduce the 
    amount of any grant to a State under this part for any fiscal year 
    if the Secretary determines, based on available information on the 
    numbers and needs of migratory children in the State and the 
    program proposed by the State to address such needs, that such 
    amount exceeds the amount required under section 1304.
        ``(B) The Secretary shall reallocate such excess funds to other 
    States whose grants under this part would otherwise be insufficient 
    to provide an appropriate level of services to migratory children, 
    in such amounts as the Secretary determines are appropriate.
    ``(d) Consortium Arrangements.--
        ``(1) In general.--In the case of a State that receives a grant 
    of $1,000,000 or less under this section, the Secretary shall 
    consult with the State educational agency to determine whether 
    consortium arrangements with another State or other appropriate 
    entity would result in delivery of services in a more effective and 
    efficient manner.
        ``(2) Proposals.--Any State, regardless of the amount of such 
    State's allocation, may submit a consortium arrangement to the 
    Secretary for approval.
        ``(3) Approval.--The Secretary shall approve a consortium 
    arrangement under paragraph (1) or (2) if the proposal demonstrates 
    that the arrangement will--
            ``(A) reduce administrative costs or program function costs 
        for State programs; and
            ``(B) make more funds available for direct services to add 
        substantially to the welfare or educational attainment of 
        children to be served under this part.
    ``(e) Determining Numbers of Eligible Children.--In order to 
determine the estimated number of migratory children residing in each 
State for purposes of this section, the Secretary shall--
        ``(1) use such information as the Secretary finds most 
    accurately reflects the actual number of migratory children;
        ``(2) develop and implement a procedure for more accurately 
    reflecting cost factors for different types of summer and 
    intersession program designs;
        ``(3) adjust the full-time equivalent number of migratory 
    children who reside in each State to take into account--
            ``(A) the special needs of those children participating in 
        special programs provided under this part that operate during 
        the summer and intersession periods; and
            ``(B) the additional costs of operating such programs; and
        ``(4) conduct an analysis of the options for adjusting the 
    formula so as to better direct services to the child whose 
    education has been interrupted.

``SEC. 1304. STATE APPLICATIONS; SERVICES.

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

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

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

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

    ``(a) Comprehensive Plan.--
        ``(1) In general.--Each State that receives assistance under 
    this part shall ensure that the State and its local operating 
    agencies identify and address the special educational needs of 
    migratory children in accordance with a comprehensive State plan 
    that--
            ``(A) is integrated with other programs under this Act or 
        other Acts, as appropriate;
            ``(B) may be submitted as a part of 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
                ``(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.

``SEC. 1307. BYPASS.

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

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

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

``SEC. 1309. DEFINITIONS.

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

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

``SEC. 1401. PURPOSE AND PROGRAM AUTHORIZATION.

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

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

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

                   ``Subpart 1--State Agency Programs

``SEC. 1411. ELIGIBILITY.

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

``SEC. 1412. ALLOCATION OF FUNDS.

    ``(a) Subgrants to State Agencies.--
        ``(1) In general.--Each State agency described in section 1411 
    (other than an agency in the Commonwealth of Puerto Rico) is 
    eligible to receive a subgrant under this subpart, for each fiscal 
    year, in an amount equal to the product of--
            ``(A) the number of neglected or delinquent children and 
        youth described in section 1411 who--
                ``(i) are enrolled for at least 15 hours per week in 
            education programs in adult correctional institutions; and
                ``(ii) are enrolled for at least 20 hours per week--

                    ``(I) in education programs in institutions for 
                neglected or delinquent children and youth; or
                    ``(II) in community day programs for neglected or 
                delinquent children and youth; and

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

``SEC. 1413. STATE REALLOCATION OF FUNDS.

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

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

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

``SEC. 1415. USE OF FUNDS.

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

``SEC. 1416. INSTITUTION-WIDE PROJECTS.

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

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

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

``SEC. 1418. TRANSITION SERVICES.

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

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

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

                   ``Subpart 2--Local Agency Programs

``SEC. 1421. PURPOSE.

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

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

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

``SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

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

``SEC. 1424. USES OF FUNDS.

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

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

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

``SEC. 1426. ACCOUNTABILITY.

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

                    ``Subpart 3--General Provisions

``SEC. 1431. PROGRAM EVALUATIONS.

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

``SEC. 1432. DEFINITIONS.

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

                ``PART E--NATIONAL ASSESSMENT OF TITLE I

``SEC. 1501. EVALUATIONS.

    ``(a) National Assessment of Title I.--
        ``(1) In general.--The Secretary shall conduct a national 
    assessment of the programs assisted under this title and the impact 
    of this title on States, local educational agencies, schools, and 
    students.
        ``(2) Issues to be examined.--In conducting the assessment 
    under this subsection, the Secretary shall examine, at a minimum, 
    the following:
            ``(A) The implementation of programs assisted under this 
        title and the impact of such implementation on increasing 
        student academic achievement (particularly in schools with high 
        concentrations of children living in poverty), relative to the 
        goal of all students reaching the proficient level of 
        achievement based on State academic assessments, challenging 
        State academic content standards, and challenging State student 
        academic achievement standards under section 1111.
            ``(B) The types of programs and services that have 
        demonstrated the greatest likelihood of helping students reach 
        the proficient and advanced levels of achievement based on 
        State student academic achievement standards and State academic 
        content standards.
            ``(C) The implementation of State academic standards, 
        assessments, and accountability systems developed under this 
        title, including--
                ``(i) the time and cost required for the development of 
            academic assessments for students in grades 3 through 8;
                ``(ii) how well such State assessments meet the 
            requirements for assessments described in this title; and
                ``(iii) the impact of such standards, assessments, and 
            accountability systems on educational programs and 
            instruction at the local level.
            ``(D) Each State's definition of adequate yearly progress, 
        including--
                ``(i) the impact of applying this definition to 
            schools, local educational agencies, and the State;
                ``(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) used State educational agency and local 
            educational agency funds and resources to help schools in 
            which 50 percent or more of the students are from families 
            with incomes below the poverty line meet the requirement 
            described in section 1119 of having all teachers highly 
            qualified not later than the end of the 2005-2006 school 
            year.
            ``(F) The implementation of schoolwide programs and 
        targeted assistance programs under this title and the impact of 
        such programs on improving student academic achievement, 
        including the extent to which schools meet the requirements of 
        such programs.
            ``(G) The extent to which varying models of comprehensive 
        school reform are funded and implemented under this title, and 
        the effect of the implementation of such models on improving 
        achievement of disadvantaged students.
            ``(H) The costs as compared to the benefits of the 
        activities assisted under this title.
            ``(I) The extent to which actions authorized under section 
        1116 are implemented by State educational agencies and local 
        educational agencies to improve the academic achievement of 
        students in low-performing schools, and the effectiveness of 
        the implementation of such actions, including the following:
                ``(i) The number of schools identified for school 
            improvement and how many years the schools remain in this 
            status.
                ``(ii) The types of support provided by the State 
            educational agencies and local educational agencies to 
            schools and local educational agencies respectively 
            identified as in need of improvement, and the impact of 
            such support on student achievement.
                ``(iii) The number of parents who take advantage of the 
            public school choice provisions of this title, the costs 
            (including transportation costs) associated with 
            implementing these provisions, the implementation of these 
            provisions, and the impact of these provisions (including 
            the impact of attending another school) on student 
            achievement.
                ``(iv) The number of parents who choose to take 
            advantage of the supplemental 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) Interim report.--Not later than 3 years after the 
        date of enactment of the No Child Left Behind Act of 2001, the 
        Secretary shall transmit to the President, the Committee on 
        Education and the Workforce of the House of Representatives, 
        and the Committee on Health, Education, Labor, and Pensions of 
        the Senate an interim report on the national assessment 
        conducted under this subsection.
            ``(B) Final report.--Not later than 5 years after the date 
        of enactment of the No Child Left Behind Act of 2001, the 
        Secretary shall transmit to the President, the Committee on 
        Education and the Workforce of the House of Representatives, 
        and the Committee on Health, Education, Labor, and Pensions of 
        the Senate a final report on the national assessment conducted 
        under this subsection.
    ``(b) Studies and Data Collection.--
        ``(1) In general.--In addition to other activities described in 
    this section, the Secretary may, directly or through awarding 
    grants to or entering into contracts with appropriate entities--
            ``(A) assess the implementation and effectiveness of 
        programs under this title;
            ``(B) collect the data necessary to comply with the 
        Government Performance and Results Act of 1993; and
            ``(C) provide guidance and technical assistance to State 
        educational agencies and local educational agencies in 
        developing and maintaining management information systems 
        through which such agencies may develop program performance 
        indicators to improve services and performance.
        ``(2) Minimum information.--In carrying out this subsection, 
    the Secretary shall collect, at a minimum, trend information on the 
    effect of each program authorized under this title, which shall 
    complement the data collected and reported under subsections (a) 
    and (c).
    ``(c) National Longitudinal Study.--
        ``(1) In general.--The Secretary shall conduct a longitudinal 
    study of schools receiving assistance under part A.
        ``(2) Issues to be examined.--In carrying out this subsection, 
    the Secretary shall ensure that the study referred to in paragraph 
    (1) provides Congress and educators with each of the following:
            ``(A) An accurate description and analysis of the short- 
        and long-term effect of the assistance made available under 
        this title on academic achievement.
            ``(B) Information that can be used to improve the 
        effectiveness of the assistance made available under this title 
        in enabling students to meet challenging academic achievement 
        standards.
            ``(C) An analysis of educational practices or model 
        programs that are effective in improving the achievement of 
        disadvantaged children.
            ``(D) An analysis of the costs as compared to the benefits 
        of the assistance made available under this title in improving 
        the achievement of disadvantaged children.
            ``(E) An analysis of the effects of the availability of 
        school choice options under section 1116 on the academic 
        achievement of disadvantaged students, on schools in school 
        improvement, and on schools from which students have 
        transferred under such options.
            ``(F) Such other information as the Secretary considers 
        appropriate.
        ``(3) Scope.--In conducting the study referred to in paragraph 
    (1), the Secretary shall ensure that the study--
            ``(A) bases its analysis on a nationally representative 
        sample of schools participating in programs under this title;
            ``(B) to the extent practicable, includes in its analysis 
        students who transfer to different schools during the course of 
        the study; and
            ``(C) analyzes varying models or strategies for delivering 
        school services, including--
                ``(i) schoolwide and targeted services; and
                ``(ii) comprehensive school reform models.
    ``(d) Independent Review Panel.--
        ``(1) In general.--The Secretary shall establish an independent 
    review panel (in this subsection referred to as the `Review Panel') 
    to advise the Secretary on methodological and other issues that 
    arise in carrying out subsections (a) and (c).
        ``(2) Appointment of members.--
            ``(A) In general.--Subject to subparagraph (B), the 
        Secretary shall appoint members of the Review Panel from among 
        qualified individuals who are--
                ``(i) specialists in statistics, evaluation, research, 
            and assessment;
                ``(ii) education practitioners, including teachers, 
            principals, and local and State superintendents;
                ``(iii) parents and members of local school boards or 
            other organizations involved with the implementation and 
            operation of programs under this title; and
                ``(iv) other individuals with technical expertise who 
            will contribute to the overall rigor and quality of the 
            program evaluation.
            ``(B) Limitations.--In appointing members of the Review 
        Panel, the Secretary shall ensure that--
                ``(i) in order to ensure diversity, the Review Panel 
            includes individuals appointed under subparagraph (A)(i) 
            who represent disciplines or programs outside the field of 
            education; and
                ``(ii) the total number of the individuals appointed 
            under subparagraph (A)(ii) or (A)(iv) does not exceed 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--
                ``(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. 1502. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

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

``SEC. 1503. ASSESSMENT EVALUATION.

    ``(a) In General.--The Secretary shall conduct an independent study 
of assessments used for State accountability purposes and for making 
decisions about the promotion and graduation of students. Such research 
shall be conducted over a period not to exceed 5 years and shall 
address the components described in subsection (d).
    ``(b) Contract Authorized.--The Secretary is authorized to award a 
contract, through a peer review process, to an organization or entity 
capable of conducting rigorous, independent research. The Assistant 
Secretary of Educational Research and Improvement shall appoint peer 
reviewers to evaluate the applications for this contract.
    ``(c) Study.--The study shall--
        ``(1) synthesize and analyze existing research that meets 
    standards of quality and scientific rigor; and
        ``(2) evaluate academic assessment and accountability systems 
    in State educational agencies, local educational agencies, and 
    schools; and
        ``(3) make recommendations to the Department and to the 
    Committee on Education and the Workforce of the United States House 
    of Representatives and the Committee on Health, Education, Labor, 
    and Pensions of the United States Senate, based on the findings of 
    the study.
    ``(d) Components of the Research Program.--The study described in 
subsection (a) shall examine--
        ``(1) the effect of the assessment and accountability systems 
    described in section (c) on students, teachers, parents, families, 
    schools, school districts, and States, including correlations 
    between such systems and--
            ``(A) student academic achievement, progress to the State-
        defined level of proficiency, and progress toward closing 
        achievement gaps, based on independent measures;
            ``(B) changes in course offerings, teaching practices, 
        course content, and instructional material;
            ``(C) changes in turnover rates among teachers, principals, 
        and pupil-services personnel;
            ``(D) changes in dropout, grade-retention, and graduation 
        rates for students; and
            ``(E) such other effects as may be appropriate;
        ``(2) the effect of the academic assessments on students with 
    disabilities;
        ``(3) the effect of the academic assessments on low, middle, 
    and high socioeconomic status students, limited and nonlimited 
    English proficient students, racial and ethnic minority students, 
    and nonracial or nonethnic minority students;
        ``(4) guidelines for assessing the validity, reliability, and 
    consistency of those systems using nationally recognized 
    professional and technical standards;
        ``(5) the relationship between accountability systems and the 
    inclusion or exclusion of students from the assessment system; and
        ``(6) such other factors as the Secretary finds appropriate.
    ``(e) Reporting.--Not later than 3 years after the contract 
described in 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. 1504. CLOSE UP FELLOWSHIP PROGRAM.

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

                 ``PART F--COMPREHENSIVE SCHOOL REFORM

``SEC. 1601. PURPOSE.

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

``SEC. 1602. PROGRAM AUTHORIZATION.

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

``SEC. 1603. STATE APPLICATIONS.

    ``(a) In General.--Each State educational agency that desires to 
receive a grant under this 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
        ``(5) how the State educational agency will provide technical 
    assistance to the local educational agency or consortia of local 
    educational agencies, and to participating schools, in evaluating, 
    developing, and implementing comprehensive school reform.

``SEC. 1604. STATE USE OF FUNDS.

    ``(a) In General.--Except as provided in subsection (e), a State 
educational agency that receives a grant under this part shall use the 
grant funds to award subgrants, on a competitive basis, to local 
educational agencies or consortia of local educational agencies in the 
State that receive funds under part A, to support comprehensive school 
reforms in schools that are eligible for funds under part A.
    ``(b) Subgrant Requirements.--A subgrant to a local educational 
agency or consortium shall be--
        ``(1) of sufficient size and scope to support the initial costs 
    of comprehensive school reforms selected or designed by each school 
    identified in the application of the local educational agency or 
    consortium;
        ``(2) in an amount not less than $50,000--
            ``(A) for each participating school; or
            ``(B) for each participating consortium of small schools 
        (which for purposes of this subparagraph means a consortium of 
        small schools serving a total of not more than 500 students); 
        and
        ``(3) renewable for 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 part, the amount 
of the assistance, a description of the comprehensive school reforms 
selected and used, and a copy of the State's annual evaluation of the 
implementation of comprehensive school reforms supported under this 
part and the student achievement results.

``SEC. 1605. LOCAL APPLICATIONS.

    ``(a) In General.--Each local educational agency or consortium of 
local educational agencies desiring a subgrant under this 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. 1606. LOCAL USE OF FUNDS.

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

``SEC. 1607. EVALUATION AND REPORTS.

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

``SEC. 1608. QUALITY INITIATIVES.

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

                 ``PART G--ADVANCED PLACEMENT PROGRAMS

``SEC. 1701. SHORT TITLE.

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

``SEC. 1702. PURPOSES.

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

``SEC. 1703. FUNDING DISTRIBUTION RULE.

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

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

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

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

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

``SEC. 1706. SUPPLEMENT, NOT SUPPLANT.

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

``SEC. 1707. DEFINITIONS.

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

                  ``PART H--SCHOOL DROPOUT PREVENTION

``SEC. 1801. SHORT TITLE.

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

``SEC. 1802. PURPOSE.

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

``SEC. 1803. AUTHORIZATION OF APPROPRIATIONS.

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

               ``Subpart 1--Coordinated National Strategy

``SEC. 1811. NATIONAL ACTIVITIES.

    ``(a) In General.--The Secretary is authorized--
        ``(1) to collect systematic data on the effectiveness of the 
    programs assisted under this part in reducing school dropout rates 
    and increasing school reentry and secondary school graduation 
    rates;
        ``(2) to establish a national clearinghouse of information on 
    effective school dropout prevention and reentry programs that shall 
    disseminate to State educational agencies, local educational 
    agencies, and schools--
            ``(A) the results of research on school dropout prevention 
        and reentry; and
            ``(B) information on effective programs, best practices, 
        and Federal resources to--
                ``(i) reduce annual school dropout rates;
                ``(ii) increase school reentry; and
                ``(iii) increase secondary school graduation rates;
        ``(3) to provide technical assistance to State educational 
    agencies, local educational agencies, and schools in designing and 
    implementing programs and securing resources to implement effective 
    school dropout prevention and reentry programs;
        ``(4) to establish and consult with an interagency working 
    group that shall--
            ``(A) address inter- and intra-agency program coordination 
        issues at the Federal level with respect to school dropout 
        prevention and reentry, and assess the targeting of existing 
        Federal services to students who are most at risk of dropping 
        out of school, and the cost-effectiveness of various programs 
        and approaches used to address school dropout prevention and 
        reentry;
            ``(B) describe the ways in which State educational agencies 
        and local educational agencies can implement effective school 
        dropout prevention and reentry programs using funds from a 
        variety of Federal programs, including the programs under this 
        part; and
            ``(C) examine Federal programs that may have a positive 
        impact on secondary school graduation or school reentry;
        ``(5) to carry out a national recognition program in accordance 
    with subsection (b) that recognizes schools that have made 
    extraordinary progress in lowering school dropout rates; and
        ``(6) to use funds made available for this subpart to carry out 
    the evaluation required under section 1830(c).
    ``(b) Recognition Program.--
        ``(1) Establishment.--The Secretary shall--
            ``(A) establish a national recognition program; and
            ``(B) develop uniform national guidelines for the 
        recognition program that shall be used to recognize eligible 
        schools from nominations submitted by State educational 
        agencies.
        ``(2) Recognition.--The Secretary shall recognize, under the 
    recognition program established under paragraph (1), eligible 
    schools.
        ``(3) Support.--The Secretary may make monetary awards to an 
    eligible school recognized under this subsection in amounts 
    determined appropriate by the Secretary that shall be used for 
    dissemination activities within the eligible school district or 
    nationally.
        ``(4) Definition of eligible school.--In this subsection, the 
    term `eligible school' means a public middle school or secondary 
    school, including a charter school, that has implemented 
    comprehensive reforms that have been effective in lowering school 
    dropout rates for all students--
            ``(A) in that secondary school or charter school; or
            ``(B) in the case of a middle school, in the secondary 
        school that the middle school feeds students into.
    ``(c) Capacity Building.--
        ``(1) In general.--The Secretary, through a contract with 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.--
            ``(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. 1821. DEFINITIONS.

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

``SEC. 1822. PROGRAM AUTHORIZED.

    ``(a) Grants to State Educational Agencies and Local Educational 
Agencies.--
        ``(1) Amount less than $75,000,000.--
            ``(A) In general.--If the amount appropriated under section 
        1803 for a fiscal year equals or is less than $75,000,000, then 
        the Secretary shall use such amount to award grants, on a 
        competitive basis, to--
                ``(i) State educational agencies to support 
            activities--

                    ``(I) in schools that--

                        ``(aa) serve students in grades 6 through 12; 
                    and
                        ``(bb) have annual school dropout rates that 
                    are above the State average annual school dropout 
                    rate; or

                    ``(II) in the middle schools that feed students 
                into the schools described in subclause (I); or

                ``(ii) local educational agencies that operate--

                    ``(I) schools that--

                        ``(aa) serve students in grades 6 through 12; 
                    and
                        ``(bb) have annual school dropout rates that 
                    are above the State average annual school dropout 
                    rate; or

                    ``(II) middle schools that feed students into the 
                schools described in subclause (I).

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

``SEC. 1823. APPLICATIONS.

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

``SEC. 1824. STATE RESERVATION.

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

``SEC. 1825. STRATEGIES AND CAPACITY BUILDING.

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

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

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

``SEC. 1827. COMMUNITY BASED ORGANIZATIONS.

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

``SEC. 1828. TECHNICAL ASSISTANCE.

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

``SEC. 1829. SCHOOL DROPOUT RATE CALCULATION.

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

``SEC. 1830. REPORTING AND ACCOUNTABILITY.

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

                      ``PART I--GENERAL PROVISIONS

``SEC. 1901. FEDERAL REGULATIONS.

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

``SEC. 1902. AGREEMENTS AND RECORDS.

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

``SEC. 1903. STATE ADMINISTRATION.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

``SEC. 2101. PURPOSE.

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

``SEC. 2102. DEFINITIONS.

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

``SEC. 2103. AUTHORIZATIONS OF APPROPRIATIONS.

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

                     ``Subpart 1--Grants to States

``SEC. 2111. ALLOTMENTS TO STATES.

    ``(a) In General.--The Secretary shall make grants to States with 
applications approved under section 2112 to pay for the Federal share 
of the cost of carrying out the activities specified in section 2113. 
Each grant shall consist of the allotment determined for a State under 
subsection (b).
    ``(b) Determination of Allotments.--
        ``(1) Reservation of funds.--
            ``(A) In general.--From the total amount appropriated under 
        section 2103(a) for a fiscal year, the Secretary shall 
        reserve--
                ``(i) 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
                ``(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.

``SEC. 2112. STATE APPLICATIONS.

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

``SEC. 2113. STATE USE OF FUNDS.

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

          ``Subpart 2--Subgrants to Local Educational Agencies

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

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

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

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

``SEC. 2123. LOCAL USE OF FUNDS.

    ``(a) In General.--A local educational agency that receives a 
subgrant under section 2121 shall use the funds made available through 
the subgrant to carry out one or more of the following activities, 
including carrying out the activities through a grant or contract with 
a for-profit or nonprofit entity:
        ``(1) Developing and implementing mechanisms to assist schools 
    in effectively recruiting and retaining highly qualified teachers, 
    including specialists in core academic subjects, principals, and 
    pupil services personnel, except that funds made available under 
    this paragraph may be used for pupil services personnel only--
            ``(A) if the local educational agency is making progress 
        toward meeting the annual measurable objectives described in 
        section 1119(a)(2); and
            ``(B) in a manner consistent with mechanisms to assist 
        schools in effectively recruiting and retaining highly 
        qualified teachers and principals.
        ``(2) Developing and implementing initiatives to assist in 
    recruiting highly qualified teachers (particularly initiatives that 
    have proven effective in retaining highly qualified teachers), and 
    hiring highly qualified teachers, who will be assigned teaching 
    positions within their fields, including--
            ``(A) providing scholarships, signing bonuses, or other 
        financial incentives, such as differential pay, for teachers to 
        teach--
                ``(i) in academic subjects in which there exists a 
            shortage of highly qualified teachers within a school or 
            within the local educational agency; and
                ``(ii) in schools in which there exists a shortage of 
            highly qualified teachers;
            ``(B) recruiting and hiring highly qualified teachers to 
        reduce class size, particularly in the early grades; and
            ``(C) establishing programs that--
                ``(i) train and hire regular and special education 
            teachers (which may include hiring special education 
            teachers to team-teach in classrooms that contain both 
            children with disabilities and nondisabled children);
                ``(ii) train and hire highly qualified teachers of 
            special needs children, as well as teaching specialists in 
            core academic subjects who will provide increased 
            individualized instruction to students;
                ``(iii) recruit qualified professionals from other 
            fields, including highly qualified paraprofessionals, and 
            provide such professionals with alternative routes to 
            teacher certification, including developing and 
            implementing hiring policies that ensure comprehensive 
            recruitment efforts as a way to expand the applicant pool, 
            such as through identifying teachers certified through 
            alternative routes, and using a system of intensive 
            screening designed to hire the most qualified applicants; 
            and
                ``(iv) provide increased opportunities for minorities, 
            individuals with disabilities, and other individuals 
            underrepresented in the teaching profession.
        ``(3) Providing professional development activities--
            ``(A) that improve the knowledge of teachers and principals 
        and, in appropriate cases, paraprofessionals, concerning--
                ``(i) one or more of the core academic subjects that 
            the teachers teach; and
                ``(ii) effective instructional strategies, methods, and 
            skills, and use of challenging State academic content 
            standards and student academic achievement standards, and 
            State assessments, to improve teaching practices and 
            student academic achievement; and
            ``(B) that improve the knowledge of teachers and principals 
        and, in appropriate cases, paraprofessionals, concerning 
        effective instructional practices and that--
                ``(i) involve collaborative groups of teachers and 
            administrators;
                ``(ii) provide training in how to teach and address the 
            needs of students with different learning styles, 
            particularly students with disabilities, students with 
            special learning needs (including students who are gifted 
            and talented), and students with limited English 
            proficiency;
                ``(iii) provide training in methods of--

                    ``(I) improving student behavior in the classroom; 
                and
                    ``(II) identifying early and appropriate 
                interventions to help students described in clause (ii) 
                learn;

                ``(iv) provide training to enable teachers and 
            principals to involve parents in their child's education, 
            especially parents of limited English proficient and 
            immigrant children; and
                ``(v) provide training on how to understand and use 
            data and assessments to improve classroom practice and 
            student learning.
        ``(4) Developing and implementing initiatives to promote 
    retention of highly qualified teachers and principals, particularly 
    within elementary schools and secondary schools with a high 
    percentage of low-achieving students, including programs that 
    provide--
            ``(A) teacher mentoring from exemplary teachers, 
        principals, or superintendents;
            ``(B) induction and support for teachers and principals 
        during their first 3 years of employment as teachers or 
        principals, respectively;
            ``(C) incentives, including financial incentives, to retain 
        teachers who have a record of success in helping low-achieving 
        students improve their academic achievement; or
            ``(D) incentives, including financial incentives, to 
        principals who have a record of improving the academic 
        achievement of all students, but particularly students from 
        economically disadvantaged families, students from racial and 
        ethnic minority groups, and students with disabilities.
        ``(5) Carrying out programs and activities that are designed to 
    improve the quality of the teacher force, such as--
            ``(A) innovative professional development programs (which 
        may be provided through partnerships including institutions of 
        higher education), including programs that train teachers and 
        principals to integrate technology into curricula and 
        instruction to improve teaching, learning, and technology 
        literacy, are consistent with the requirements of section 9101, 
        and are coordinated with activities carried out under part D;
            ``(B) development and use of proven, cost-effective 
        strategies for the implementation of professional development 
        activities, such as through the use of technology and distance 
        learning;
            ``(C) tenure reform;
            ``(D) merit pay programs; and
            ``(E) testing of elementary school and secondary school 
        teachers in the academic subjects that the teachers teach.
        ``(6) Carrying out professional development activities designed 
    to improve the quality of principals and superintendents, including 
    the development and support of academies to help talented aspiring 
    or current principals and superintendents become outstanding 
    managers and educational leaders.
        ``(7) Hiring highly qualified teachers, including teachers who 
    become highly qualified through State and local alternative routes 
    to certification, and special education teachers, in order to 
    reduce class size, particularly in the early grades.
        ``(8) Carrying out teacher advancement initiatives that promote 
    professional growth and emphasize multiple career paths (such as 
    paths to becoming a career teacher, mentor teacher, or exemplary 
    teacher) and pay differentiation.
        ``(10) Carrying out programs and activities related to 
    exemplary teachers.
    ``(b) Supplement, Not Supplant.--Funds received under this subpart 
shall be used to supplement, and not supplant, non-Federal funds that 
would otherwise be used for activities authorized under this subpart.

            ``Subpart 3--Subgrants to Eligible Partnerships

``SEC. 2131. DEFINITIONS.

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

``SEC. 2132. SUBGRANTS.

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

``SEC. 2133. APPLICATIONS.

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

``SEC. 2134. USE OF FUNDS.

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

                      ``Subpart 4--Accountability

``SEC. 2141. TECHNICAL ASSISTANCE AND ACCOUNTABILITY.

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

                    ``Subpart 5--National Activities

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

    ``(a) National Teacher Recruitment Campaign.--The Secretary is 
authorized to establish and carry out a national teacher recruitment 
campaign, which may include activities carried out through the National 
Teacher Recruitment Clearinghouse, to assist high-need local 
educational agencies in recruiting teachers (particularly those 
activities that are effective in retaining new teachers) and training 
teachers and to conduct a national public service campaign concerning 
the resources for, and the routes to, entering the field of teaching. 
In carrying out the campaign, the Secretary may promote and link the 
activities of the campaign to the information and referral activities 
of the National Teacher Recruitment Clearinghouse. The Secretary shall 
coordinate activities under this subsection with State and regional 
recruitment activities.
    ``(b) School Leadership.--
        ``(1) In general.--The Secretary is authorized to establish and 
    carry out a national principal recruitment program to assist high-
    need local educational agencies in recruiting and training 
    principals (including assistant principals) through such activities 
    as--
            ``(A) providing financial incentives to aspiring new 
        principals;
            ``(B) providing stipends to principals who mentor new 
        principals;
            ``(C) carrying out professional development programs in 
        instructional leadership and management; and
            ``(D) providing incentives that are appropriate for 
        teachers or individuals from other fields who want to become 
        principals and that are effective in retaining new principals.
        ``(2) Grants.--If the Secretary uses sums made available under 
    section 2103(b) to carry out paragraph (1), the Secretary shall 
    carry out such paragraph by making grants, on a competitive basis, 
    to--
            ``(A) high-need local educational agencies;
            ``(B) consortia of high-need local educational agencies; 
        and
            ``(C) partnerships of high-need local educational agencies, 
        nonprofit organizations, and institutions of higher education.
    ``(c) Advanced Certification or Advanced Credentialing.--
        ``(1) In general.--The Secretary is authorized to support 
    activities to encourage and support teachers seeking advanced 
    certification or advanced credentialing through high quality 
    professional teacher enhancement programs designed to improve 
    teaching and learning.
        ``(2) Implementation.--In carrying out paragraph (1), the 
    Secretary shall make grants to eligible entities to--
            ``(A) develop teacher standards that include measures tied 
        to increased student academic achievement; and
            ``(B) promote outreach, teacher recruitment, teacher 
        subsidy, or teacher support programs, related to teacher 
        certification or credentialing by the National Board for 
        Professional Teaching Standards, the National Council on 
        Teacher Quality, or other nationally recognized certification 
        or credentialing organizations.
        ``(3) Eligible entities.--In this subsection, the term 
    `eligible entity' includes--
            ``(A) a State educational agency;
            ``(B) a local educational agency;
            ``(C) the National Board for Professional Teaching 
        Standards, in partnership with a high-need local educational 
        agency or a State educational agency;
            ``(D) the National Council on Teacher Quality, in 
        partnership with a high-need local educational agency or a 
        State educational agency; or
            ``(E) another recognized entity, including another 
        recognized certification or credentialing organization, in 
        partnership with a high-need local educational agency or a 
        State educational agency.
    ``(d) Special Education Teacher Training.--The Secretary is 
authorized to award a grant to the University of Northern Colorado to 
enable such university to provide, to other institutions of higher 
education, assistance in training special education teachers.
    ``(e) Early Childhood Educator Professional Development.--
        ``(1) Purpose.--The purpose of this subsection is to enhance 
    the school readiness of young children, particularly disadvantaged 
    young children, and to prevent young children from encountering 
    difficulties once the children enter school, by improving the 
    knowledge and skills of early childhood educators who work in 
    communities that have high concentrations of children living in 
    poverty.
        ``(2) Program authorized.--
            ``(A) Grants to partnerships.--The Secretary is authorized 
        to carry out the purpose of this subsection by awarding grants, 
        on a competitive basis, to partnerships consisting of--
                ``(i)(I) one or more institutions of higher education 
            that provide professional development for early childhood 
            educators who work with children from low-income families 
            in high-need communities; or
                ``(II) another public or private entity that provides 
            such professional development;
                ``(ii) one or more public agencies (including local 
            educational agencies, State educational agencies, State 
            human services agencies, and State and local agencies 
            administering programs under the Child Care and Development 
            Block Grant Act of 1990 (42 U.S.C. 9858 et seq.), Head 
            Start agencies, or private organizations; and
                ``(iii) to the extent feasible, an entity with 
            demonstrated experience in providing training to educators 
            in early childhood education programs concerning 
            identifying and preventing behavior problems or working 
            with children identified as or suspected to be victims of 
            abuse.
            ``(B) Duration and number of grants.--
                ``(i) Duration.--The Secretary shall award grants under 
            this subsection for periods of not more than 4 years.
                ``(ii) Number.--No partnership may receive more than 
            one grant under this subsection.
        ``(3) Applications.--
            ``(A) Applications required.--Any partnership that desires 
        to receive a grant under this subsection shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may require.
            ``(B) Contents.--Each such application shall include--
                ``(i) a description of the high-need community to be 
            served by the project proposed to be carried out through 
            the grant, including such demographic and socioeconomic 
            information as the Secretary may request;
                ``(ii) information on the quality of the early 
            childhood educator professional development program 
            currently conducted (as of the date of the submission of 
            the application) by the institution of higher education or 
            another provider in the partnership;
                ``(iii) the results of a needs assessment that the 
            entities in the partnership have undertaken to determine 
            the most critical professional development needs of the 
            early childhood educators to be served by the partnership 
            and in the broader community, and a description of how the 
            proposed project will address those needs;
                ``(iv) a description of how the proposed project will 
            be carried out, including a description of--

                    ``(I) how individuals will be selected to 
                participate;
                    ``(II) the types of professional development 
                activities, based on scientifically based research, 
                that will be carried out;
                    ``(III) how research on effective professional 
                development and on adult learning will be used to 
                design and deliver project activities;
                    ``(IV) how the project will be coordinated with and 
                build on, and will not supplant or duplicate, early 
                childhood education professional development activities 
                in the high-need community;
                    ``(V) how the project will train early childhood 
                educators to provide developmentally appropriate 
                school-readiness services that are based on the best 
                available research on early childhood pedagogy and 
                child development and learning domains;
                    ``(VI) how the project will train early childhood 
                educators to meet the diverse educational needs of 
                children in the community, including children who have 
                limited English proficiency, children with 
                disabilities, or children with other special needs; and
                    ``(VII) how the project will train early childhood 
                educators in identifying and preventing behavioral 
                problems in children or working with children 
                identified as or suspected to be victims of abuse;

                ``(v) a description of--

                    ``(I) the specific objectives that the partnership 
                will seek to attain through the project, and the 
                methods that the partnership will use to measure 
                progress toward attainment of those objectives; and
                    ``(II) how the objectives and the measurement 
                methods align with the achievement indicators 
                established by the Secretary under paragraph (6)(A);

                ``(vi) a description of the partnership's plan for 
            continuing the activities carried out under the project 
            after Federal funding ceases;
                ``(vii) an assurance that, where applicable, the 
            project will provide appropriate professional development 
            to volunteers working directly with young children, as well 
            as to paid staff; and
                ``(viii) an assurance that, in developing the 
            application and in carrying out the project, the 
            partnership has consulted with, and will consult with, 
            relevant agencies, early childhood educator organizations, 
            and early childhood providers that are not members of the 
            partnership.
        ``(4) Selection of grant recipients.--
            ``(A) Criteria.--The Secretary shall select partnerships to 
        receive grants under this subsection on the basis of the degree 
        to which the communities proposed to be served require 
        assistance and the quality of the applications submitted under 
        paragraph (3).
            ``(B) Geographic distribution.--In selecting partnerships 
        to receive grants under this subsection, the Secretary shall 
        seek to ensure that communities in different regions of the 
        Nation, as well as both urban and rural communities, are 
        served.
        ``(5) Uses of funds.--
            ``(A) In general.--Each partnership receiving a grant under 
        this subsection shall use the grant funds to carry out 
        activities that will improve the knowledge and skills of early 
        childhood educators who are working in early childhood programs 
        that are located in high-need communities and serve 
        concentrations of children from low-income families.
            ``(B) Allowable activities.--Such activities may include--
                ``(i) professional development for early childhood 
            educators, particularly to familiarize those educators with 
            the application of recent research on child, language, and 
            literacy development and on early childhood pedagogy;
                ``(ii) professional development for early childhood 
            educators in working with parents, so that the educators 
            and parents can work together to provide and support 
            developmentally appropriate school-readiness services that 
            are based on scientifically based research on early 
            childhood pedagogy and child development and learning 
            domains;
                ``(iii) professional development for early childhood 
            educators to work with children who have limited English 
            proficiency, children with disabilities, and children with 
            other special needs;
                ``(iv) professional development to train early 
            childhood educators in identifying and preventing 
            behavioral problems in children or working with children 
            identified as or suspected to be victims of abuse;
                ``(v) activities that assist and support early 
            childhood educators during their first 3 years in the 
            field;
                ``(vi) development and implementation of early 
            childhood educator professional development programs that 
            make use of distance learning and other technologies;
                ``(vii) professional development activities related to 
            the selection and use of screening and diagnostic 
            assessments to improve teaching and learning; and
                ``(viii) data collection, evaluation, and reporting 
            needed to meet the requirements of paragraph (6) relating 
            to accountability.
        ``(6) Accountability.--
            ``(A) Achievement indicators.--On the date on which the 
        Secretary first issues a notice soliciting applications for 
        grants under this subsection, the Secretary shall announce 
        achievement indicators for this subsection, which shall be 
        designed--
                ``(i) to measure the quality and accessibility of the 
            professional development provided;
                ``(ii) to measure the impact of that professional 
            development on the early childhood education provided by 
            the individuals who receive the professional development; 
            and
                ``(iii) to provide such other measures of program 
            impact as the Secretary determines to be appropriate.
            ``(B) Annual reports; termination.--
                ``(i) Annual reports.--Each partnership receiving a 
            grant under this subsection shall report annually to the 
            Secretary on the partnership's progress toward attaining 
            the achievement indicators.
                ``(ii) Termination.--The Secretary may terminate a 
            grant under this subsection at any time if the Secretary 
            determines that the partnership receiving the grant is not 
            making satisfactory progress toward attaining the 
            achievement indicators.
        ``(7) Cost-sharing.--
            ``(A) In general.--Each partnership carrying out a project 
        through a grant awarded under this subsection shall provide, 
        from sources other than the program carried out under this 
        subsection, which may include Federal sources--
                ``(i) at least 50 percent of the total cost of the 
            project for the grant period; and
                ``(ii) at least 20 percent of the project cost for each 
            year.
            ``(B) Acceptable contributions.--A partnership may meet the 
        requirements of subparagraph (A) by providing contributions in 
        cash or in kind, fairly evaluated, including plant, equipment, 
        and services.
            ``(C) Waivers.--The Secretary may waive or modify the 
        requirements of subparagraph (A) for partnerships in cases of 
        demonstrated financial hardship.
        ``(8) Federal coordination.--The Secretary and the Secretary of 
    Health and Human Services shall coordinate activities carried out 
    through programs under this subsection with activities carried out 
    through other early childhood programs administered by the 
    Secretary or the Secretary of Health and Human Services.
        ``(9) Definitions.--In this subsection:
            ``(A) Early childhood educator.--The term `early childhood 
        educator' means a person providing, or employed by a provider 
        of, nonresidential child care services (including center-based, 
        family-based, and in-home child care services) that is legally 
        operating under State law, and that complies with applicable 
        State and local requirements for the provision of child care 
        services to children at any age from birth through the age at 
        which a child may start kindergarten in that State.
            ``(B) High-need community.--
                ``(i) In general.--The term `high-need community' 
            means--

                    ``(I) a political subdivision of a State, or a 
                portion of a political subdivision of a State, in which 
                at least 50 percent of the children are from low-income 
                families; or
                    ``(II) a political subdivision of a State that is 
                among the 10 percent of political subdivisions of the 
                State having the greatest numbers of such children.

                ``(ii) Determination.--In determining which communities 
            are described in clause (i), the Secretary shall use such 
            data as the Secretary determines are most accurate and 
            appropriate.
            ``(C) Low-income family.--The term `low-income family' 
        means a family with an income below the poverty line for the 
        most recent fiscal year for which satisfactory data are 
        available.
    ``(f) Teacher Mobility.--
        ``(1) Establishment.--The Secretary is authorized to establish 
    a panel to be known as the National Panel on Teacher Mobility 
    (referred to in this subsection as the `panel').
        ``(2) Membership.--The panel shall be composed of 12 members 
    appointed by the Secretary. The Secretary shall appoint the members 
    from among practitioners and experts with experience relating to 
    teacher mobility, such as teachers, members of teacher 
    certification or licensing bodies, faculty of institutions of 
    higher education that prepare teachers, and State policymakers with 
    such experience.
        ``(3) Period of appointment; vacancies.--Members shall be 
    appointed for the life of the panel. Any vacancy in the panel shall 
    not affect the powers of the panel, but shall be filled in the same 
    manner as the original appointment.
        ``(4) Duties.--
            ``(A) Study.--
                ``(i) In general.--The panel shall study strategies for 
            increasing mobility and employment opportunities for highly 
            qualified teachers, especially for States with teacher 
            shortages and States with school districts or schools that 
            are difficult to staff.
                ``(ii) Data and analysis.--As part of the study, the 
            panel shall evaluate the desirability and feasibility of 
            State initiatives that support teacher mobility by 
            collecting data and conducting effective analysis 
            concerning--

                    ``(I) teacher supply and demand;
                    ``(II) the development of recruitment and hiring 
                strategies that support teachers; and
                    ``(III) increasing reciprocity of certification and 
                licensing across States.

            ``(B) Report.--Not later than 1 year after the date on 
        which all members of the panel have been appointed, the panel 
        shall submit to the Secretary and to the appropriate committees 
        of Congress a report containing the results of the study.
        ``(5) Powers.--
            ``(A) Hearings.--The panel may hold such hearings, sit and 
        act at such times and places, take such testimony, and receive 
        such evidence as the panel considers advisable to carry out the 
        objectives of this subsection.
            ``(B) Information from federal agencies.--The panel may 
        secure directly from any Federal department or agency such 
        information as the panel considers necessary to carry out the 
        provisions of this subsection. Upon request of a majority of 
        the members of the panel, the head of such department or agency 
        shall furnish such information to the panel.
            ``(C) Postal services.--The panel may use the United States 
        mails in the same manner and under the same conditions as other 
        departments and agencies of the Federal Government.
        ``(6) Personnel.--
            ``(A) Travel expenses.--The members of the panel shall not 
        receive compensation for the performance of services for the 
        panel, but shall be allowed travel expenses, including per diem 
        in lieu of subsistence, at rates authorized for employees of 
        agencies under subchapter I of chapter 57 of title 5, United 
        States Code, while away from their homes or regular places of 
        business in the performance of services for the panel. 
        Notwithstanding section 1342 of title 31, United States Code, 
        the Secretary may accept the voluntary and uncompensated 
        services of members of the panel.
            ``(B) Detail of government employees.--Any Federal 
        Government employee may be detailed to the panel without 
        reimbursement, and such detail shall be without interruption or 
        loss of civil service status or privilege.
        ``(7) Permanent committee.--Section 14 of the Federal Advisory 
    Committee Act (5 U.S.C. App.) shall not apply to the panel.

             ``PART B--MATHEMATICS AND SCIENCE PARTNERSHIPS

``SEC. 2201. PURPOSE; DEFINITIONS.

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

    ``(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--
            ``(A) in the case of grants awarded pursuant to subsection 
        (a)(1), to the Secretary, at such time, in such manner, and 
        accompanied by such information as the Secretary may require; 
        or
            ``(B) in the case of subgrants awarded pursuant to 
        subsection (a)(2), to the State educational agency, at such 
        time, in such manner, and accompanied by such information as 
        the State educational agency may require.
        ``(2) Contents.--Each application submitted pursuant to 
    paragraph (1) shall include--
            ``(A) the results of a comprehensive assessment of the 
        teacher quality and professional development needs of any 
        schools, local educational agencies, and State educational 
        agencies that comprise the eligible partnership with respect to 
        the teaching and learning of mathematics and science;
            ``(B) a description of how the activities to be carried out 
        by the eligible partnership will be aligned with challenging 
        State academic content and student academic achievement 
        standards in mathematics and science and with other educational 
        reform activities that promote student academic achievement in 
        mathematics and science;
            ``(C) a description of how the activities to be carried out 
        by the eligible partnership will be based on a review of 
        scientifically based research, and an explanation of how the 
        activities are expected to improve student academic achievement 
        and strengthen the quality of mathematics and science 
        instruction;
            ``(D) a description of--
                ``(i) how the eligible partnership will carry out the 
            authorized activities described in subsection (c); and
                ``(ii) the eligible partnership's evaluation and 
            accountability plan described in subsection (e); and
            ``(E) a description of how the eligible partnership will 
        continue the activities funded under this part after the 
        original grant or subgrant period has expired.
    ``(c) Authorized Activities.--An eligible partnership shall use 
funds provided under this part for one or more of the following 
activities related to elementary schools or secondary schools:
        ``(1) Creating opportunities for enhanced and ongoing 
    professional development of mathematics and science teachers that 
    improves the subject matter knowledge of such teachers.
        ``(2) Promoting strong teaching skills for mathematics and 
    science teachers and teacher educators, including integrating 
    reliable scientifically based research teaching methods and 
    technology-based teaching methods into the curriculum.
        ``(3) Establishing and operating mathematics and science summer 
    workshops or institutes, including followup training, for 
    elementary school and secondary school mathematics and science 
    teachers that--
            ``(A) shall--
                ``(i) directly relate to the curriculum and academic 
            areas in which the teacher provides instruction, and focus 
            only secondarily on pedagogy;
                ``(ii) enhance the ability of the teacher to understand 
            and use the challenging State academic content standards 
            for mathematics and science and to select appropriate 
            curricula; and
                ``(iii) train teachers to use curricula that are--

                    ``(I) based on scientific research;
                    ``(II) aligned with challenging State academic 
                content standards; and
                    ``(III) object-centered, experiment-oriented, and 
                concept- and content-based; and

            ``(B) may include--
                ``(i) programs that provide teachers and prospective 
            teachers with opportunities to work under the guidance of 
            experienced teachers and college faculty;
                ``(ii) instruction in the use of data and assessments 
            to inform and instruct classroom practice; and
                ``(iii) professional development activities, including 
            supplemental and followup activities, such as curriculum 
            alignment, distance learning, and activities that train 
            teachers to utilize technology in the classroom.
        ``(4) Recruiting mathematics, engineering, and science majors 
    to teaching through the use of--
            ``(A) signing and performance incentives that are linked to 
        activities proven effective in retaining teachers, for 
        individuals with demonstrated professional experience in 
        mathematics, engineering, or science;
            ``(B) stipends provided to mathematics and science teachers 
        for certification through alternative routes;
            ``(C) scholarships for teachers to pursue advanced course 
        work in mathematics, engineering, or science; and
            ``(D) other programs that the State educational agency 
        determines to be effective in recruiting and retaining 
        individuals with strong mathematics, engineering, or science 
        backgrounds.
        ``(5) Developing or redesigning more rigorous mathematics and 
    science curricula that are aligned with challenging State and local 
    academic content standards and with the standards expected for 
    postsecondary study in mathematics and science.
        ``(6) Establishing distance learning programs for mathematics 
    and science teachers using curricula that are innovative, content-
    based, and based on scientifically based research that is current 
    as of the date of the program involved.
        ``(7) Designing programs to prepare a mathematics or science 
    teacher at a school to provide professional development to other 
    mathematics or science teachers at the school and to assist 
    beginning and other teachers at the school, including (if 
    applicable) a mechanism to integrate the teacher's experiences from 
    a summer workshop or institute into the provision of professional 
    development and assistance.
        ``(8) Establishing and operating programs to bring mathematics 
    and science teachers into contact with working scientists, 
    mathematicians, and engineers, to expand such teachers' subject 
    matter knowledge of and research in science and mathematics.
        ``(9) Designing programs to identify and develop exemplary 
    mathematics and science teachers in the kindergarten through grade 
    8 classrooms.
        ``(10) Training mathematics and science teachers and developing 
    programs to encourage young women and other underrepresented 
    individuals in mathematics and science careers (including 
    engineering and technology) to pursue postsecondary degrees in 
    majors leading to such careers.
    ``(d) Coordination and Consultation.--
        ``(1) Partnership grants.--An eligible partnership receiving a 
    grant under section 203 of the Higher Education Act of 1965 shall 
    coordinate the use of such funds with any related activities 
    carried out by such partnership with funds made available under 
    this part.
        ``(2) National science foundation.--In carrying out the 
    activities authorized by this part, the Secretary shall consult and 
    coordinate with the Director of the National Science Foundation, 
    particularly with respect to the appropriate roles for the 
    Department and the Foundation in the conduct of summer workshops, 
    institutes, or partnerships to improve mathematics and science 
    teaching in elementary schools and secondary schools.
    ``(e) Evaluation and Accountability Plan.--
        ``(1) In general.--Each eligible partnership receiving a grant 
    or subgrant under this part shall develop an evaluation and 
    accountability plan for activities assisted under this part that 
    includes rigorous objectives that measure the impact of activities 
    funded under this part.
        ``(2) Contents.--The plan developed pursuant to paragraph (1)--
            ``(A) shall include measurable objectives to increase the 
        number of mathematics and science teachers who participate in 
        content-based professional development activities;
            ``(B) shall include measurable objectives for improved 
        student academic achievement on State mathematics and science 
        assessments or, where applicable, an International Mathematics 
        and Science Study assessment; and
            ``(C) may include objectives and measures for--
                ``(i) increased participation by students in advanced 
            courses in mathematics and science;
                ``(ii) increased percentages of elementary school 
            teachers with academic majors or minors, or group majors or 
            minors, in mathematics, engineering, or the sciences; and
                ``(iii) increased percentages of secondary school 
            classes in mathematics and science taught by teachers with 
            academic majors in mathematics, engineering, and science.
    ``(f) Report.--Each eligible partnership receiving a grant or 
subgrant under this part shall report annually to the Secretary 
regarding the eligible partnership's progress in meeting the objectives 
described in the accountability plan of the partnership under 
subsection (e).

``SEC. 2203. AUTHORIZATION OF APPROPRIATIONS.

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

                ``PART C--INNOVATION FOR TEACHER QUALITY

                  ``Subpart 1--Transitions to Teaching

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

``SEC. 2301. DEFINITIONS.

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

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

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

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

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

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

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

``SEC. 2305. PARTICIPATION BY STATES.

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

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

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

``SEC. 2307. REPORTING REQUIREMENTS.

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

              ``CHAPTER B--TRANSITION TO TEACHING PROGRAM

``SEC. 2311. PURPOSES.

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

``SEC. 2312. DEFINITIONS.

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

``SEC. 2313. GRANT PROGRAM.

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

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

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

                    ``CHAPTER C--GENERAL PROVISIONS

``SEC. 2321. AUTHORIZATION OF APPROPRIATIONS.

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

                 ``Subpart 2--National Writing Project

``SEC. 2331. PURPOSES.

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

``SEC. 2332. NATIONAL WRITING PROJECT.

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

                      ``Subpart 3--Civic Education

``SEC. 2341. SHORT TITLE.

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

``SEC. 2342. PURPOSE.

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

``SEC. 2343. GENERAL AUTHORITY.

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

``SEC. 2344. WE THE PEOPLE PROGRAM.

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

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

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

``SEC. 2346. AUTHORIZATION OF APPROPRIATIONS.

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

         ``Subpart 4--Teaching of Traditional American History

``SEC. 2351. ESTABLISHMENT OF PROGRAM.

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

``SEC. 2352. AUTHORIZATION OF APPROPRIATIONS.

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

               ``Subpart 5--Teacher Liability Protection

``SEC. 2361. SHORT TITLE.

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

``SEC. 2362. PURPOSE.

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

``SEC. 2363. DEFINITIONS.

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

``SEC. 2364. APPLICABILITY.

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

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

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

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

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

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

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

``SEC. 2368. EFFECTIVE DATE.

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

            ``PART D--ENHANCING EDUCATION THROUGH TECHNOLOGY

``SEC. 2401. SHORT TITLE.

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

``SEC. 2402. PURPOSES AND GOALS.

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

``SEC. 2403. DEFINITIONS.

    ``In this part:
        ``(1) Eligible local entity.--The term `eligible local entity' 
    means--
            ``(A) a high-need local educational agency; or
            ``(B) an eligible local partnership.
        ``(2) Eligible local partnership.--The term `eligible local 
    partnership' means a partnership that--
            ``(A) shall include at least one high-need local 
        educational agency and at least one--
                ``(i) local educational agency that can demonstrate 
            that teachers in schools served by the agency are 
            effectively integrating technology and proven teaching 
            practices into instruction, based on a review of relevant 
            research, and that the integration results in improvement 
            in--

                    ``(I) classroom instruction in the core academic 
                subjects; and
                    ``(II) the preparation of students to meet 
                challenging State academic content and student academic 
                achievement standards;

                ``(ii) institution of higher education that is in full 
            compliance with the reporting requirements of section 
            207(f) of the Higher Education Act of 1965 and that has not 
            been identified by its State as low-performing under 
            section 208 of such Act;
                ``(iii) for-profit business or organization that 
            develops, designs, manufactures, or produces technology 
            products or services, or has substantial expertise in the 
            application of technology in instruction; or
                ``(iv) public or private nonprofit organization with 
            demonstrated experience in the application of educational 
            technology to instruction; and
            ``(B) may include other local educational agencies, 
        educational service agencies, libraries, or other educational 
        entities appropriate to provide local programs.
        ``(3) High-need local educational agency.--The term `high-need 
    local educational agency' means a local educational agency that--
            ``(A) is among the local educational agencies in a State 
        with the highest numbers or percentages of children from 
        families with incomes below the poverty line; and
            ``(B)(i) operates one or more schools identified under 
        section 1116; or
            ``(ii) has a substantial need for assistance in acquiring 
        and using technology.

``SEC. 2404. AUTHORIZATION OF APPROPRIATIONS.

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

             ``Subpart 1--State and Local Technology Grants

``SEC. 2411. ALLOTMENT AND REALLOTMENT.

    ``(a) Reservations and Allotment.--From the amount made available 
to carry out this subpart under section 2404(b)(1) for a fiscal year--
        ``(1) the Secretary shall reserve--
            ``(A) 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.
    ``(c) Reallotment of Unused Funds.--If any State educational agency 
does not apply for an allotment under this subpart for a fiscal year, 
or does not use its entire allotment under this subpart for that fiscal 
year, the Secretary shall reallot the amount of the State educational 
agency's allotment, or the unused portion of the allotment, to the 
remaining State educational agencies that use their entire allotments 
under this subpart in accordance with this section.
    ``(d) State Educational Agency Defined.--In this section, the term 
`State educational agency' does not include an agency of an outlying 
area or the Bureau of Indian Affairs.

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

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

``SEC. 2413. STATE APPLICATIONS.

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

``SEC. 2414. LOCAL APPLICATIONS.

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

``SEC. 2415. STATE ACTIVITIES.

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

``SEC. 2416. LOCAL ACTIVITIES.

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

              ``Subpart 2--National Technology Activities

``SEC. 2421. NATIONAL ACTIVITIES.

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

``SEC. 2422. NATIONAL EDUCATION TECHNOLOGY PLAN.

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

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

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

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

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

``SEC. 2441. INTERNET SAFETY.

    ``(a) In General.--No funds made available under this part to a 
local educational agency for an elementary school or secondary school 
that does not receive services at discount rates under section 
254(h)(5) of the Communications Act of 1934 (47 U.S.C. 254(h)(5)) may 
be used to purchase computers used to access the Internet, or to pay 
for direct costs associated with accessing the Internet, for such 
school unless the school, school board, local educational agency, or 
other authority with responsibility for administration of such school 
both--
        ``(1)(A) has in place a policy of Internet safety for minors 
    that includes the operation of a technology protection measure with 
    respect to any of its computers with Internet access that protects 
    against access through such computers to visual depictions that 
    are--
            ``(i) obscene;
            ``(ii) child pornography; or
            ``(iii) harmful to minors; and
        ``(B) is enforcing the operation of such technology protection 
    measure during any use of such computers by minors; and
        ``(2)(A) has in place a policy of Internet safety that includes 
    the operation of a technology protection measure with respect to 
    any of its computers with Internet access that protects against 
    access through such computers to visual depictions that are--
            ``(i) obscene; or
            ``(ii) child pornography; and
        ``(B) is enforcing the operation of such technology protection 
    measure during any use of such computers.
    ``(b) Timing and Applicability of Implementation.--
        ``(1) In general.--The local educational agency with 
    responsibility for a school covered by subsection (a) shall certify 
    the compliance of such school with the requirements of subsection 
    (a) as part of the application process for the next program funding 
    year under this Act following December 21, 2000, and for each 
    subsequent program funding year thereafter.
        ``(2) Process.--
            ``(A) Schools with internet safety policies and technology 
        protection measures in place.--A local educational agency with 
        responsibility for a school covered by subsection (a) that has 
        in place an Internet safety policy meeting the requirements of 
        subsection (a) shall certify its compliance with subsection (a) 
        during each annual program application cycle under this Act.
            ``(B) Schools without internet safety policies and 
        technology protection measures in place.--
                ``(i) Certification.--A local educational agency with 
            responsibility for a school covered by subsection (a) that 
            does not have in place an Internet safety policy meeting 
            the requirements of subsection (a)--

                    ``(I) for the first program year after December 21, 
                2000, in which the local educational agency is applying 
                for funds for such school under this Act, shall certify 
                that it is undertaking such actions, including any 
                necessary procurement procedures, to put in place an 
                Internet safety policy that meets such requirements; 
                and
                    ``(II) for the second program year after December 
                21, 2000, in which the local educational agency is 
                applying for funds for such school under this Act, 
                shall certify that such school is in compliance with 
                such requirements.

                ``(ii) Ineligibility.--Any school covered by subsection 
            (a) for which the local educational agency concerned is 
            unable to certify compliance with such requirements in such 
            second program year shall be ineligible for all funding 
            under this part for such second program year and all 
            subsequent program years until such time as such school 
            comes into compliance with such requirements.
            ``(C) Waivers.--Any school subject to a certification under 
        subparagraph (B)(i)(II) for which the local educational agency 
        concerned cannot make the certification otherwise required by 
        that subparagraph may seek a waiver of that subparagraph if 
        State or local procurement rules or regulations or competitive 
        bidding requirements prevent the making of the certification 
        otherwise required by that subparagraph. The local educational 
        agency concerned shall notify the Secretary of the 
        applicability of that subparagraph to the school. Such notice 
        shall certify that the school will be brought into compliance 
        with the requirements in subsection (a) before the start of the 
        third program year after December 21, 2000, in which the school 
        is applying for funds under this part.
    ``(c) Disabling During Certain Use.--An administrator, supervisor, 
or person authorized by the responsible authority under subsection (a) 
may disable the technology protection measure concerned to enable 
access for bona fide research or other lawful purposes.
    ``(d) Noncompliance.--
        ``(1) Use of general education provisions act remedies.--
    Whenever the Secretary has reason to believe that any recipient of 
    funds under this part is failing to comply substantially with the 
    requirements of this section, the Secretary may--
            ``(A) withhold further payments to the recipient under this 
        part;
            ``(B) issue a complaint to compel compliance of the 
        recipient through a cease and desist order; or
            ``(C) enter into a compliance agreement with a recipient to 
        bring it into compliance with such requirements,
    in same manner as the Secretary is authorized to take such actions 
    under sections 455, 456, and 457, respectively, of the General 
    Education Provisions Act.
        ``(2) Recovery of funds prohibited.--The actions authorized by 
    paragraph (1) are the exclusive remedies available with respect to 
    the failure of a school to comply substantially with a provision of 
    this section, and the Secretary shall not seek a recovery of funds 
    from the recipient for such failure.
        ``(3) Recommencement of payments.--Whenever the Secretary 
    determines (whether by certification or other appropriate evidence) 
    that a recipient of funds who is subject to the withholding of 
    payments under paragraph (1)(A) has cured the failure providing the 
    basis for the withholding of payments, the Secretary shall cease 
    the withholding of payments to the recipient under that paragraph.
    ``(e) Definitions.--In this subpart:
        ``(1) Computer.--The term `computer' includes any hardware, 
    software, or other technology attached or connected to, installed 
    in, or otherwise used in connection with a computer.
        ``(2) Access to internet.--A computer shall be considered to 
    have access to the Internet if such computer is equipped with a 
    modem or is connected to a computer network that has access to the 
    Internet.
        ``(3) Acquisition or operation.--An elementary school or 
    secondary school shall be considered to have received funds under 
    this part for the acquisition or operation of any computer if such 
    funds are used in any manner, directly or indirectly--
            ``(A) to purchase, lease, or otherwise acquire or obtain 
        the use of such computer; or
            ``(B) to obtain services, supplies, software, or other 
        actions or materials to support, or in connection with, the 
        operation of such computer.
        ``(4) Minor.--The term `minor' means an individual who has not 
    attained the age of 17.
        ``(5) Child pornography.--The term `child pornography' has the 
    meaning given that term in section 2256 of title 18, United States 
    Code.
        ``(6) Harmful to minors.--The term `harmful to minors' means 
    any picture, image, graphic image file, or other visual depiction 
    that--
            ``(A) taken as a whole and with respect to minors, appeals 
        to a prurient interest in nudity, sex, or excretion;
            ``(B) depicts, describes, or represents, in a patently 
        offensive way with respect to what is suitable for minors, an 
        actual or simulated sexual act or sexual contact, actual or 
        simulated normal or perverted sexual acts, or a lewd exhibition 
        of the genitals; and
            ``(C) taken as a whole, lacks serious literary, artistic, 
        political, or scientific value as to minors.
        ``(7) Obscene.--The term `obscene' has the meaning applicable 
    to that term under section 1460 of title 18, United States Code.
        ``(8) Sexual act and sexual contact.--The terms `sexual act' 
    and `sexual contact' have the meanings given those terms in section 
    2246 of title 18, United States Code.
    ``(f) Severability.--If any provision of this section is held 
invalid, the remainder of this section shall not be affected 
thereby.''.

SEC. 202. CONTINUATION OF AWARDS.

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

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

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

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

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

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

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

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

``SEC. 3101. SHORT TITLE.

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

``SEC. 3102. PURPOSES.

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

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

``SEC. 3111. FORMULA GRANTS TO STATES.

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

                    ``(I) the data available from the American 
                Community Survey available from the Department of 
                Commerce; or
                    ``(II) the number of children being assessed for 
                English proficiency in a State as required under 
                section 1111(b)(7).

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

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

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

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

``SEC. 3114. WITHIN-STATE ALLOCATIONS.

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

``SEC. 3115. SUBGRANTS TO ELIGIBLE ENTITIES.

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

    ``(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.
    ``(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.

    ``(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 after such children are no longer 
    receiving services under this part.
    ``(b) Use of Evaluation.--An evaluation provided by an eligible 
entity under subsection (a) shall be used by the entity and the State 
educational agency--
        ``(1) for improvement of programs and activities;
        ``(2) to determine the effectiveness of programs and activities 
    in assisting children who are limited English proficient to attain 
    English proficiency (as measured consistent with subsection (d)) 
    and meet challenging State academic content and student academic 
    achievement standards; and
        ``(3) in determining whether or not to continue funding for 
    specific programs or activities.
    ``(c) Evaluation Components.--An evaluation provided by an eligible 
entity under subsection (a) shall--
        ``(1) provide an evaluation of children enrolled in a program 
    or activity conducted by the entity using funds under subpart 1 
    (including the percentage of children) who--
            ``(A) are making progress in attaining English proficiency, 
        including the percentage of children who have achieved English 
        proficiency;
            ``(B) have transitioned into classrooms not tailored to 
        limited English proficient children, and have a sufficient 
        level of English proficiency to permit them to achieve in 
        English and transition into classrooms not tailored to limited 
        English proficient children;
            ``(C) are meeting the same challenging State academic 
        content and student academic achievement standards as all 
        children are expected to meet; and
            ``(D) are not receiving waivers for the reading or language 
        arts assessments under section 1111(b)(3)(C); and
        ``(2) include such other information as the State educational 
    agency may require.
    ``(d) Evaluation Measures.--A State shall approve evaluation 
measures for use under subsection (c) that are designed to assess--
        ``(1) the progress of children in attaining English 
    proficiency, including a child's level of comprehension, speaking, 
    listening, reading, and writing skills in English;
        ``(2) student attainment of challenging State student academic 
    achievement standards on assessments described in section 
    1111(b)(3); and
        ``(3) progress in meeting the annual measurable achievement 
    objectives described in section 3122.
    ``(e) Special Rule for Specially Qualified Agencies.--Each 
specially qualified agency receiving a grant under this part shall 
provide the evaluations described in subsection (a) to the Secretary 
subject to the same requirements as apply to eligible entities 
providing such evaluations to State educational agencies under such 
subsection.

``SEC. 3122. ACHIEVEMENT OBJECTIVES AND ACCOUNTABILITY.

    ``(a) Achievement Objectives.--
        ``(1) In general.--Each State educational agency or specially 
    qualified agency receiving a grant under subpart 1 shall develop 
    annual measurable achievement objectives for limited English 
    proficient children served under this part that relate to such 
    children's development and attainment of English proficiency while 
    meeting challenging State academic content and student academic 
    achievement standards as required by section 1111(b)(1).
        ``(2) Development of objectives.--Such annual measurable 
    achievement objectives shall be developed in a manner that--
            ``(A) reflects the amount of time an individual child has 
        been enrolled in a language instruction educational program; 
        and
            ``(B) uses consistent methods and measurements to reflect 
        the increases described in subparagraphs (A)(i), (A)(ii), and 
        (B) of paragraph (3).
        ``(3) Contents.--Such annual measurable achievement 
    objectives--
            ``(A) shall include--
                ``(i) at a minimum, annual increases in the number or 
            percentage of children making progress in learning English;
                ``(ii) at a minimum, annual increases in the number or 
            percentage of children attaining English proficiency by the 
            end of each school year, as determined by a valid and 
            reliable assessment of English proficiency consistent with 
            section 1111(b)(7); and
                ``(iii) making adequate yearly progress for limited 
            English proficient children as described in section 
            1111(b)(2)(B); and
            ``(B) at the discretion of the agency, may include the 
        number or percentage of children not receiving waivers for 
        reading or language arts assessments under section 
        1111(b)(3)(C), but this achievement objective shall not be 
        applied to an eligible entity that, in a given school year--
                ``(i) has experienced a large increase in limited 
            English proficient children or immigrant children and 
            youth;
                ``(ii) enrolls a statistically significant number of 
            immigrant children and youth from countries where such 
            children and youth had little or no access to formal 
            education; or
                ``(iii) has a statistically significant number of 
            immigrant children and youth who have fled from war or 
            natural disaster.
    ``(b) Accountability.--
        ``(1) For states.--Each State educational agency receiving a 
    grant under subpart 1 shall hold eligible entities receiving a 
    subgrant under such subpart accountable for meeting the annual 
    measurable achievement objectives under subsection (a), including 
    making adequate yearly progress for limited English proficient 
    children.
        ``(2) Improvement plan.--If a State educational agency 
    determines, based on the annual measurable achievement objectives 
    described in subsection (a), that an eligible entity has failed to 
    make progress toward meeting such objectives for 2 consecutive 
    years, the agency shall require the entity to develop an 
    improvement plan that will ensure that the entity meets such 
    objectives. The improvement plan shall specifically address the 
    factors that prevented the entity from achieving such objectives.
        ``(3) Technical assistance.--During the development of the 
    improvement plan described in paragraph (2), and throughout its 
    implementation, the State educational agency shall--
            ``(A) provide technical assistance to the eligible entity;
            ``(B) provide technical assistance, if applicable, to 
        schools served by such entity under subpart 1 that need 
        assistance to enable the schools to meet the annual measurable 
        achievement objectives described in subsection (a);
            ``(C) develop, in consultation with the entity, 
        professional development strategies and activities, based on 
        scientifically based research, that the agency will use to meet 
        such objectives;
            ``(D) require such entity to utilize such strategies and 
        activities; and
            ``(E) develop, in consultation with the entity, a plan to 
        incorporate strategies and methodologies, based on 
        scientifically based research, to improve the specific program 
        or method of instruction provided to limited English proficient 
        children.
        ``(4) Accountability.--If a State educational agency determines 
    that an eligible entity has failed to meet the annual measurable 
    achievement objectives described in subsection (a) for 4 
    consecutive years, the agency shall--
            ``(A) require such entity to modify the entity's 
        curriculum, program, and method of instruction; or
            ``(B)(i) make a determination whether the entity shall 
        continue to receive funds related to the entity's failure to 
        meet such objectives; and
            ``(ii) require such entity to replace educational personnel 
        relevant to the entity's failure to meet such objectives.
    ``(c) Special Rule for Specially Qualified Agencies.--The Secretary 
shall hold specially qualified agencies receiving a grant under this 
subpart accountable for meeting the annual measurable achievement 
objectives described in subsection (a) in the same manner as State 
educational agencies hold eligible entities accountable under 
subsection (b).

``SEC. 3123. REPORTING REQUIREMENTS.

    ``(a) States.--Based upon the evaluations provided to a State 
educational agency under section 3121, each such agency that receives a 
grant under this part shall prepare and submit every second year to the 
Secretary a report on programs and activities carried out by the State 
educational agency under this part and the effectiveness of such 
programs and activities in improving the education provided to children 
who are limited English proficient.
    ``(b) Secretary.--Every second year, the Secretary shall prepare 
and submit 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--
        ``(1) on programs and activities carried out to serve limited 
    English proficient children under this part, and the effectiveness 
    of such programs and activities in improving the academic 
    achievement and English proficiency of children who are limited 
    English proficient;
        ``(2) on the types of language instruction educational programs 
    used by local educational agencies or eligible entities receiving 
    funding under this part to teach limited English proficient 
    children;
        ``(3) containing a critical synthesis of data reported by 
    eligible entities to States under section 3121(a);
        ``(4) containing a description of technical assistance and 
    other assistance provided by State educational agencies under 
    section 3111(b)(2)(C);
        ``(5) containing an estimate of the number of certified or 
    licensed teachers working in language instruction educational 
    programs and educating limited English proficient children, and an 
    estimate of the number of such teachers that will be needed for the 
    succeeding 5 fiscal years;
        ``(6) containing the major findings of scientifically based 
    research carried out under this part;
        ``(7) containing the number of programs or activities, if any, 
    that were terminated because the entities carrying out the programs 
    or activities were not able to reach program goals;
        ``(8) containing the number of limited English proficient 
    children served by eligible entities receiving funding under this 
    part who were transitioned out of language instruction educational 
    programs funded under this part into classrooms where instruction 
    is not tailored for limited English proficient children; and
        ``(9) containing other information gathered from the 
    evaluations from specially qualified agencies and other reports 
    submitted to the Secretary under this title when applicable.

``SEC. 3124. COORDINATION WITH RELATED PROGRAMS.

    ``In order to maximize Federal efforts aimed at serving the 
educational needs of children of limited English proficiency, the 
Secretary shall coordinate and ensure close cooperation with other 
entities carrying out programs serving language-minority and limited 
English proficient children that are administered by the Department and 
other agencies.

``SEC. 3125. RULES OF CONSTRUCTION.

    ``Nothing in this part shall be construed--
        ``(1) to prohibit a local educational agency from serving 
    limited English proficient children simultaneously with children 
    with similar educational needs, in the same educational settings 
    where appropriate;
        ``(2) to require a State or a local educational agency to 
    establish, continue, or eliminate any particular type of 
    instructional program for limited English proficient children; or
        ``(3) to limit the preservation or use of Native American 
    languages.

``SEC. 3126. LEGAL AUTHORITY UNDER STATE LAW.

    ``Nothing in this part shall be construed to negate or supersede 
State law, or the legal authority under State law of any State agency, 
State entity, or State public official, over programs that are under 
the jurisdiction of the State agency, entity, or official.

``SEC. 3127. CIVIL RIGHTS.

    ``Nothing in this part shall be construed in a manner inconsistent 
with any Federal law guaranteeing a civil right.

``SEC. 3128. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.

    ``Notwithstanding any other provision of this part, programs 
authorized under this part that serve Native American (including Native 
American Pacific Islander) children and children in the Commonwealth of 
Puerto Rico may include programs of instruction, teacher training, 
curriculum development, evaluation, and assessment designed for Native 
American children learning and studying Native American languages and 
children of limited Spanish proficiency, except that an outcome of 
programs serving such children shall be increased English proficiency 
among such children.

``SEC. 3129. PROHIBITION.

    ``In carrying out this part, the Secretary shall neither mandate 
nor preclude the use of a particular curricular or pedagogical approach 
to educating limited English proficient children.

                    ``Subpart 3--National Activities

``SEC. 3131. NATIONAL PROFESSIONAL DEVELOPMENT PROJECT.

    ``The Secretary shall use funds made available under section 
3111(c)(1)(C) to award grants on a competitive basis, for a period of 
not more than 5 years, to institutions of higher education (in 
consortia with State educational agencies or local educational 
agencies) to provide for professional development activities that will 
improve classroom instruction for limited English proficient children 
and assist educational personnel working with such children to meet 
high professional standards, including standards for certification and 
licensure as teachers who work in language instruction educational 
programs or serve limited English proficient children. Grants awarded 
under this subsection may be used--
        ``(1) for preservice professional development programs that 
    will assist local schools and institutions of higher education to 
    upgrade the qualifications and skills of educational personnel who 
    are not certified or licensed, especially educational 
    paraprofessionals;
        ``(2) for the development of curricula appropriate to the needs 
    of the consortia participants involved; and
        ``(3) in conjunction with other Federal need-based student 
    financial assistance programs, for financial assistance, and costs 
    related to tuition, fees, and books for enrolling in courses 
    required to complete the degree involved, to meet certification or 
    licensing requirements for teachers who work in language 
    instruction educational programs or serve limited English 
    proficient children.

                        ``Subpart 4--Definitions

``SEC. 3141. ELIGIBLE ENTITY.

    ``In this part, the term `eligible entity' means--
        ``(1) one or more local educational agencies; or
        ``(2) one or more local educational agencies, in collaboration 
    with an institution of higher education, community-based 
    organization, or State educational agency.

     ``PART B--IMPROVING LANGUAGE INSTRUCTION EDUCATIONAL PROGRAMS

``SEC. 3201. SHORT TITLE.

    ``This part may be cited as the `Improving Language Instruction 
Educational Programs For Academic Achievement Act'.

``SEC. 3202. PURPOSE.

    ``The purpose of this part is to help ensure that limited English 
proficient children master English and meet the same rigorous standards 
for academic achievement as all children are expected to meet, 
including meeting challenging State academic content and student 
academic achievement standards by--
        ``(1) promoting systemic improvement and reform of, and 
    developing accountability systems for, educational programs serving 
    limited English proficient children;
        ``(2) developing language skills and multicultural 
    understanding;
        ``(3) developing the English proficiency of limited English 
    proficient children and, to the extent possible, the native 
    language skills of such children;
        ``(4) providing similar assistance to Native Americans with 
    certain modifications relative to the unique status of Native 
    American languages under Federal law;
        ``(5) developing data collection and dissemination, research, 
    materials, and technical assistance that are focused on school 
    improvement for limited English proficient children; and
        ``(6) developing programs that strengthen and improve the 
    professional training of educational personnel who work with 
    limited English proficient children.

``SEC. 3203. NATIVE AMERICAN 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 (including Alaska Native) children and youth, an Indian tribe, 
a tribally sanctioned educational authority, a Native Hawaiian or 
Native American Pacific Islander native language education 
organization, or an elementary school or secondary school that is 
operated or funded by the Bureau of Indian Affairs shall be considered 
to be a local educational agency.
    ``(b) Application.--Notwithstanding any other provision of this 
part, each tribe, authority, organization, or school described in 
subsection (a) shall submit any application for assistance under this 
part directly to the Secretary along with timely comments on the need 
for the program proposed in the application.

``SEC. 3204. RESIDENTS OF THE TERRITORIES AND FREELY ASSOCIATED STATES.

    ``For the purpose of carrying out programs under this part in the 
outlying areas, the term `local educational agency' includes public 
institutions or agencies whose mission is the preservation and 
maintenance of native languages.

            ``Subpart 1--Program Development and Enhancement

``SEC. 3211. FINANCIAL ASSISTANCE FOR LANGUAGE INSTRUCTION EDUCATIONAL 
              PROGRAMS.

    ``The purpose of this subpart is to assist local educational 
agencies, institutions of higher education, and community-based 
organizations, through the grants authorized under sections 3212 and 
3213--
        ``(1) to develop and enhance their capacity to provide high-
    quality instruction through language instruction educational 
    programs or special alternative instruction programs to limited 
    English proficient children; and
        ``(2) to help such children--
            ``(A) develop English proficiency and, to the extent 
        possible, proficiency in their native language; and
            ``(B) meet the same challenging State academic content and 
        student academic achievement standards as all children are 
        expected to meet under section 1111(b)(1).

``SEC. 3212. PROGRAM ENHANCEMENT ACTIVITIES.

    ``(a) Program Authorized.--
        ``(1) Authority.--
            ``(A) In general.--The Secretary is authorized to award 
        grants to eligible entities having applications approved under 
        section 3214 to enable such entities to provide innovative, 
        locally designed, high-quality instruction to limited English 
        proficient children, by expanding, developing, or strengthening 
        language instruction educational programs or special 
        alternative instruction programs.
            ``(B) Period.--Each grant awarded under this section shall 
        be awarded for a period of 3 years.
        ``(2) Authorized activities.--
            ``(A) Mandatory activities.--Grants awarded under this 
        section shall be used for--
                ``(i) developing, implementing, expanding, or enhancing 
            comprehensive preschool, elementary, or secondary education 
            programs for limited English proficient children, that 
            are--

                    ``(I) aligned with State and local academic content 
                and student academic achievement standards, and local 
                school reform efforts; and
                    ``(II) coordinated with related academic services 
                for children;

                ``(ii) providing high-quality professional development 
            to classroom teachers, administrators, and other school or 
            community-based organization personnel to improve the 
            instruction and assessment of limited English proficient 
            children; and
                ``(iii) annually assessing the English proficiency of 
            all limited English proficient children served by 
            activities carried out under this section.
            ``(B) Permissible activities.--Grants awarded under this 
        section may be used for--
                ``(i) implementing programs to upgrade the reading and 
            other academic skills of limited English proficient 
            children;
                ``(ii) developing accountability systems to monitor the 
            academic progress of limited English proficient and 
            formerly limited English proficient children;
                ``(iii) implementing family education programs and 
            parent outreach and training activities designed to assist 
            parents to become active participants in the education of 
            their children;
                ``(iv) improving the instruction programs for limited 
            English proficient children by identifying, acquiring, and 
            applying effective curricula, instruction materials 
            (including materials provided through technology), and 
            assessments that are all aligned with State and local 
            standards;
                ``(v) providing intensified instruction, including 
            tutorials and academic, or vocational and technical, 
            training, for limited English proficient children;
                ``(vi) adapting best practice models for meeting the 
            needs of limited English proficient children;
                ``(vii) assisting limited English proficient children 
            with disabilities;
                ``(viii) implementing applied learning activities such 
            as service learning to enhance and support comprehensive 
            elementary and secondary language instruction educational 
            programs;
                ``(ix) acquiring or developing education technology or 
            instruction materials for limited English proficient 
            children, including materials in languages other than 
            English;
                ``(x) participating in electronic networks for 
            materials, training, and communication, and incorporating 
            information derived from such participation in curricula 
            and programs; and
                ``(xi) carrying out such other activities related to 
            the purpose of this part as the Secretary may approve.
    ``(b) Priority.--In awarding grants under this section, the 
Secretary may give priority to an entity that--
        ``(1) serves a school district--
            ``(A) that has a total district enrollment that is less 
        than 10,000 students; or
            ``(B) with a large percentage or number of limited English 
        proficient children; and
        ``(2) has limited or no experience in serving limited English 
    proficient children.
    ``(c) Eligible Entity.--In this section, the term `eligible entity' 
means--
        ``(1) one or more local educational agencies;
        ``(2) one or more local educational agencies in collaboration 
    with an institution of higher education, community-based 
    organization, or State educational agency; or
        ``(3) a community-based organization or an institution of 
    higher education that has an application approved by the local 
    educational agency to participate in programs carried out under 
    this subpart by enhancing early childhood education or family 
    education programs or conducting instruction programs that 
    supplement the educational services provided by a local educational 
    agency.

``SEC. 3213. COMPREHENSIVE SCHOOL AND SYSTEMWIDE IMPROVEMENT 
              ACTIVITIES.

    ``(a) Program Authorized.--
        ``(1) Authority.--The Secretary is authorized to award grants 
    to eligible entities having applications approved under section 
    3214 to enable such entities to develop and implement language 
    instruction educational programs, and improve, reform, or upgrade 
    programs or operations that serve significant percentages or 
    numbers of limited English proficient children.
        ``(2) Mandatory activities.--Grants awarded under this section 
    shall be used for--
            ``(A) improving instruction programs for limited English 
        proficient children by acquiring and upgrading curricula and 
        related instruction materials;
            ``(B) aligning the activities carried out under this 
        section with State and local school reform efforts;
            ``(C) providing training, aligned with State and local 
        standards, to school personnel and participating community-
        based organization personnel to improve the instruction and 
        assessment of limited English proficient children;
            ``(D) developing and implementing plans, coordinated with 
        plans for programs carried out under title II of the Higher 
        Education Act of 1965 (where applicable), and title II of this 
        Act (where applicable), to recruit teachers trained to serve 
        limited English proficient children;
            ``(E) implementing culturally and linguistically 
        appropriate family education programs, or parent outreach and 
        training activities, that are designed to assist parents of 
        limited English proficient children to become active 
        participants in the education of their children;
            ``(F) coordinating the activities carried out under this 
        section with other programs, such as programs carried out under 
        this title;
            ``(G) providing services to meet the full range of the 
        educational needs of limited English proficient children;
            ``(H) annually assessing the English proficiency of all 
        limited English proficient children served by the activities 
        carried out under this section; and
            ``(I) developing or improving accountability systems to 
        monitor the academic progress of limited English proficient 
        children.
        ``(3) Permissible activities.--Grants awarded under this 
    section may be used for--
            ``(A) implementing programs to upgrade reading and other 
        academic skills of limited English proficient children;
            ``(B) developing and using educational technology to 
        improve learning, assessments, and accountability to meet the 
        needs of limited English proficient children;
            ``(C) implementing scientifically based research programs 
        to meet the needs of limited English proficient children;
            ``(D) providing tutorials and academic, or vocational and 
        technical, training for limited English proficient children;
            ``(E) developing and implementing State and local academic 
        content and student academic achievement standards for learning 
        English as a second language, as well as for learning other 
        languages;
            ``(F) developing and implementing programs for limited 
        English proficient children to meet the needs of changing 
        populations of such children;
            ``(G) implementing policies to ensure that limited English 
        proficient children have access to other education programs 
        (other than programs designed to address limited English 
        proficiency);
            ``(H) assisting limited English proficient children with 
        disabilities;
            ``(I) developing and implementing programs to help children 
        become proficient in English and other languages;
            ``(J) acquiring or developing education technology or 
        instruction materials for limited English proficient children, 
        including materials in languages other than English;
            ``(K) participating in electronic networks for materials, 
        training, and communication and incorporating information 
        derived from such participation in curricula and programs; and
            ``(L) carrying out such other activities related to the 
        purpose of this part as the Secretary may approve.
        ``(4) Special rule.--
            ``(A) Planning.--A recipient of a grant under this section, 
        before carrying out activities under this section, shall plan, 
        train personnel, develop curricula, and acquire or develop 
        materials, but shall not use funds made available under this 
        section for planning purposes for more than 45 days.
            ``(B) Commencement of activities.--The recipient shall 
        commence carrying out activities under this section not later 
        than the later of--
                ``(i) the beginning of the first school year that 
            begins after the grant is received; or
                ``(ii) 30 days after the date of receipt of the grant.
    ``(b) Availability of Appropriations.--
        ``(1) Reservation of funds for continued payments.--
            ``(A) Covered grant.--In this paragraph, the term `covered 
        grant' means a grant--
                ``(i) that was awarded under section 7112, 7113, 7114, 
            or 7115 (as such sections were in effect on the day before 
            the date of enactment of the No Child Left Behind Act of 
            2001); and
                ``(ii) for which the grant period has not ended.
            ``(B) Reservation.--For any fiscal year that is part of the 
        grant period of a covered grant, the Secretary shall reserve 
        funds for the payments described in subparagraph (C) from the 
        amount appropriated for the fiscal year under section 3001(a) 
        and made available for carrying out this section.
            ``(C) Payments.--The Secretary shall continue to make grant 
        payments to each entity that received a covered grant, in 
        accordance with the terms of that grant, for the duration of 
        the grant period of the grant, to carry out activities in 
        accordance with the appropriate section described in 
        subparagraph (A)(i).
        ``(2) Availability.--Of the amount appropriated for a fiscal 
    year under section 3001(a) that is made available to carry out this 
    section, and that remains after the Secretary reserves funds for 
    payments under paragraph (1)--
            ``(A) not less than one-third of the remainder shall be 
        used to award grants to eligible entities for activities 
        carried out within an entire school district; and
            ``(B) not less than two-thirds of the remainder shall be 
        used to award grants to eligible entities for activities 
        carried out within individual schools.
    ``(c) Priority.--In awarding grants under this section, the 
Secretary shall give priority to an applicant that--
        ``(1) experiences a significant increase in the number or 
    percentage of limited English proficient children enrolled in the 
    applicant's programs and has limited or no experience in serving 
    limited English proficient children;
        ``(2) is a local educational agency that serves a school 
    district that has a total district enrollment that is less than 
    10,000 students;
        ``(3) demonstrates that the applicant has a proven track record 
    of success in helping limited English proficient children learn 
    English and meet high academic standards; or
        ``(4) serves a school district with a large number or 
    percentage of limited English proficient children.
    ``(d) Eligible Entities.--In this section, the term `eligible 
entity' means--
        ``(1) one or more local educational agencies; or
        ``(2) one or more local educational agencies, in collaboration 
    with an institution of higher education, community-based 
    organization, or State educational agency.

``SEC. 3214. APPLICATIONS.

    ``(a) In General.--
        ``(1) Secretary.--To receive a grant under this subpart, an 
    eligible entity described in section 3212 or 3213 shall submit an 
    application to the Secretary at such time, in such form, and 
    containing such information as the Secretary may require.
        ``(2) State educational agency.--The eligible entity, with the 
    exception of schools funded by the Bureau of Indian Affairs, shall 
    submit a copy of the application submitted by the entity under this 
    section to the State educational agency.
    ``(b) State Review and Comments.--
        ``(1) Deadline.--The State educational agency, not later than 
    45 days after receipt of an application under this section, shall 
    review the application and submit the written comments of the 
    agency regarding the application to the Secretary.
        ``(2) Comments.--
            ``(A) Submission of comments.--Regarding applications 
        submitted under this subpart, the State educational agency 
        shall--
                ``(i) submit to the Secretary written comments 
            regarding all such applications; and
                ``(ii) submit to each eligible entity the comments that 
            pertain to such entity.
            ``(B) Subject.--For purposes of this subpart, such comments 
        shall address--
                ``(i) how the activities to be carried out under the 
            grant will further the academic achievement and English 
            proficiency of limited English proficient children served 
            under the grant; and
                ``(ii) how the grant application is consistent with the 
            State plan required under section 1111.
    ``(c) Eligible Entity Comments.--An eligible entity may submit to 
the Secretary comments that address the comments submitted by the State 
educational agency.
    ``(d) Comment Consideration.--In making grants under this subpart, 
the Secretary shall take into consideration comments made by State 
educational agencies.
    ``(e) Waiver.--Notwithstanding subsection (b), the Secretary is 
authorized to waive the review requirement specified in subsection (b) 
if a State educational agency can demonstrate that such review 
requirement may impede such agency's ability to fulfill the 
requirements of participation in the program authorized in section 
3224, particularly such agency's ability to carry out data collection 
efforts and such agency's ability to provide technical assistance to 
local educational agencies not receiving funds under this subpart.
    ``(f) Required Documentation.--Such application shall include 
documentation that--
        ``(1) the applicant has the qualified personnel required to 
    develop, administer, and implement the program proposed in the 
    application; and
        ``(2) the leadership personnel of each school participating in 
    the program have been involved in the development and planning of 
    the program in the school.
    ``(g) Contents.--
        ``(1) In general.--An application for a grant under this 
    subpart shall contain the following:
            ``(A) A description of the need for the proposed program, 
        including--
                ``(i) data on the number of limited English proficient 
            children in the school or school district to be served;
                ``(ii) information on the characteristics of the 
            children, including--

                    ``(I) the native languages of the children;
                    ``(II) the proficiency of the children in English 
                and their native language;
                    ``(III) achievement data (current as of the date of 
                submission of the application) for the limited English 
                proficient children in--

                        ``(aa) reading or language arts (in English and 
                    in the native language, if applicable); and
                        ``(bb) mathematics;

                    ``(IV) a comparison of that data for the children 
                with that data for the English proficient peers of the 
                children; and
                    ``(V) the previous schooling experiences of the 
                children;

                ``(iii) the professional development needs of the 
            instruction personnel who will provide services for the 
            limited English proficient children under the proposed 
            program; and
                ``(iv) how the services provided through the grant will 
            supplement the basic services provided to limited English 
            proficient children.
            ``(B) A description of the program to be implemented and 
        how such program's design--
                ``(i) relates to the linguistic and academic needs of 
            the limited English proficient children to be served;
                ``(ii) will ensure that the services provided through 
            the program will supplement the basic services the 
            applicant provides to limited English proficient children;
                ``(iii) will ensure that the program is coordinated 
            with other programs under this Act and other Acts;
                ``(iv) involves the parents of the limited English 
            proficient children to be served;
                ``(v) ensures accountability in achieving high academic 
            standards; and
                ``(vi) promotes coordination of services for the 
            limited English proficient children to be served and their 
            families.
            ``(C) A description, if appropriate, of the applicant's 
        collaborative activities with institutions of higher education, 
        community-based organizations, local educational agencies or 
        State educational agencies, private schools, nonprofit 
        organizations, or businesses in carrying out the proposed 
        program.
            ``(D) An assurance that the applicant will not reduce the 
        level of State and local funds that the applicant expends for 
        language instruction educational programs or special 
        alternative instruction programs if the applicant receives an 
        award under this subpart.
            ``(E) An assurance that the applicant will employ teachers 
        in the proposed program who, individually or in combination, 
        are proficient in--
                ``(i) English, with respect to written, as well as 
            oral, communication skills; and
                ``(ii) the native language of the majority of the 
            children who the teachers teach, if instruction in the 
            program is in the native language as well as English.
            ``(F) A budget for the grant funds.
        ``(2) Additional information.--Each application for a grant 
    under section 3213 shall--
            ``(A) describe--
                ``(i) current services (as of the date of submission of 
            the application) the applicant provides to limited English 
            proficient children;
                ``(ii) what services limited English proficient 
            children will receive under the grant that such children 
            will not otherwise receive;
                ``(iii) how funds received under this subpart will be 
            integrated with all other Federal, State, local, and 
            private resources that may be used to serve limited English 
            proficient children;
                ``(iv) specific achievement and school retention goals 
            for the children to be served by the proposed program and 
            how progress toward achieving such goals will be measured; 
            and
                ``(v) the current family education programs (as of the 
            date of submission of the application) of the eligible 
            entity, if applicable; and
            ``(B) provide assurances that--
                ``(i) the program funded with the grant will be 
            integrated with the overall educational program of the 
            children served through the proposed program; and
                ``(ii) the application has been developed in 
            consultation with parents and other representatives of the 
            children to be served in such program.
    ``(h) Approval of Applications.--An application for a grant under 
this subpart may be approved only if the Secretary determines that--
        ``(1) the program proposed in the application will use 
    qualified personnel, including personnel who are proficient in the 
    language or languages used for instruction;
        ``(2) in designing the program, the eligible entity has, after 
    consultation with appropriate private school officials--
            ``(A) taken into account the needs of children in nonprofit 
        private elementary schools and secondary schools; and
            ``(B) in a manner consistent with the number of such 
        children enrolled in such schools in the area to be served, 
        whose educational needs are of the type and whose language, and 
        grade levels are of a similar type to the needs, language, and 
        grade levels that the program is intended to address, provided 
        for the participation of such children on a basis comparable to 
        the basis on which public school children participate;
        ``(3)(A) student evaluation and assessment procedures in the 
    program are valid and reliable for limited English proficient 
    children; and
        ``(B) limited English proficient children with disabilities 
    will be identified and served through the program in accordance 
    with the requirements of the Individuals with Disabilities 
    Education Act;
        ``(4) Federal funds made available for the program will be used 
    to supplement the State and local funds that, in the absence of 
    such Federal funds, would be expended for special programs for 
    children of limited English proficient individuals, and in no case 
    to supplant such State and local funds, except that nothing in this 
    paragraph shall be construed to preclude a local educational agency 
    from using funds made available under this subpart--
            ``(A) for activities carried out under an order of a 
        Federal or State court respecting services to be provided to 
        such children; or
            ``(B) to carry out a plan approved by the Secretary as 
        adequate under title VI of the Civil Rights Act of 1964 with 
        respect to services to be provided to such children;
        ``(5)(A) the assistance provided through the grant will 
    contribute toward building the capacity of the eligible entity to 
    provide a program on a regular basis, similar to the proposed 
    program, that will be of sufficient size, scope, and quality to 
    promise significant improvement in the education of limited English 
    proficient children; and
        ``(B) the eligible entity will have the resources and 
    commitment to continue the program of sufficient size, scope, and 
    quality when assistance under this subpart is reduced or no longer 
    available; and
        ``(6) the eligible entity will use State and national 
    dissemination sources for program design and dissemination of 
    results and products.
    ``(i) Consideration.--In determining whether to approve an 
application under this subpart, the Secretary shall give consideration 
to--
        ``(1) the degree to which the program for which assistance is 
    sought involves the collaborative efforts of institutions of higher 
    education, community-based organizations, the appropriate local 
    educational agency and State educational agency, or businesses; and
        ``(2) whether the application provides for training for 
    personnel participating in, or preparing to participate in, a 
    program that will assist such personnel in meeting State and local 
    certification requirements.

``SEC. 3215. CAPACITY BUILDING.

    ``Each recipient of a grant under this subpart shall use the grant 
in ways that will build such recipient's capacity to continue to offer 
high-quality language instruction educational programs and special 
alternative instruction programs to limited English proficient children 
after Federal assistance is reduced or eliminated.

``SEC. 3216. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.

    ``Notwithstanding any other provision of this part, programs 
authorized under this subpart that serve Native American (including 
Native American Pacific Islander) children and children in the 
Commonwealth of Puerto Rico may include programs of instruction, 
teacher training, curriculum development, evaluation, and assessment 
designed for Native American children learning and studying Native 
American languages and children of limited Spanish proficiency, except 
that an outcome of programs serving such children shall be increased 
English proficiency among such children.

``SEC. 3217. EVALUATIONS.

    ``(a) Evaluation.--Each recipient of funds under this subpart for a 
program shall annually conduct an evaluation of the program and submit 
to the Secretary a report concerning the evaluation, in the form 
prescribed by the Secretary.
    ``(b) Use of Evaluation.--Such evaluation shall be used by the 
grant recipient--
        ``(1) for program improvement;
        ``(2) to further define the program's goals and objectives; and
        ``(3) to determine program effectiveness.
    ``(c) Evaluation Report Components.--In preparing the evaluation 
reports, the recipient shall--
        ``(1) use the data provided in the application submitted by the 
    recipient under section 3214 as baseline data against which to 
    report academic achievement and gains in English proficiency for 
    children in the program;
        ``(2) disaggregate the results of the evaluation by gender, 
    native languages spoken by children, socioeconomic status, and 
    whether the children have disabilities;
        ``(3) include data on the progress of the recipient in 
    achieving the objectives of the program, including data 
    demonstrating the extent to which children served by the program 
    are meeting the challenging State academic content and student 
    academic achievement standards, and including data comparing 
    limited English proficient children with English proficient 
    children with regard to school retention and academic achievement 
    concerning--
            ``(A) reading and language arts;
            ``(B) English proficiency;
            ``(C) mathematics; and
            ``(D) the native language of the children, if the program 
        develops native language proficiency;
        ``(4) include information on the extent that professional 
    development activities carried out through the program have 
    resulted in improved classroom practices and improved student 
    academic achievement;
        lude a description of how the activities carried out through 
    the program are coordinated and integrated with the other Federal, 
    State, or local programs serving limited English proficient 
    children; and
        ``(6) include such other information as the Secretary may 
    require.

``SEC. 3218. CONSTRUCTION.

    ``Nothing in this subpart shall be construed to prohibit a local 
educational agency from serving limited English proficient children 
simultaneously with children with similar educational needs, in the 
same educational settings where appropriate.

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

``SEC. 3221. AUTHORITY.

    ``(a) In General.--The Secretary is authorized to conduct data 
collection, dissemination, research, and ongoing program evaluation 
activities in accordance with the provisions of this subpart for the 
purpose of improving language instruction educational programs and 
special alternative instruction programs for limited English proficient 
children.
    ``(b) Competitive Awards.--Research and program evaluation 
activities carried out under this subpart shall be supported through 
competitive grants, contracts, and cooperative agreements awarded to 
institutions of higher education, nonprofit organizations, State 
educational agencies, and local educational agencies.
    ``(c) Administration.--The Secretary shall conduct data collection, 
dissemination, and ongoing program evaluation activities authorized by 
this subpart through the Office of English Language Acquisition, 
Language Enhancement, and Academic Achievement for Limited English 
Proficient Students.

``SEC. 3222. RESEARCH.

    ``(a) Administration.--The Secretary shall conduct research 
activities authorized by this subpart through the Office of Educational 
Research and Improvement in coordination and collaboration with the 
Office of English Language Acquisition, Language Enhancement, and 
Academic Achievement for Limited English Proficient Students.
    ``(b) Requirements.--Such research activities--
        ``(1) shall have a practical application to teachers, 
    counselors, paraprofessionals, school administrators, parents, and 
    others involved in improving the education of limited English 
    proficient children and their families;
        ``(2) may include research on effective instruction practices 
    for multilingual classes, and on effective instruction strategies 
    to be used by a teacher or other staff member who does not know the 
    native language of a limited English proficient child in the 
    teacher's or staff member's classroom;
        ``(3) may include establishing (through the National Center for 
    Education Statistics in consultation with experts in second 
    language acquisition and scientifically based research on teaching 
    limited English proficient children) a common definition of 
    `limited English proficient child' for purposes of national data 
    collection; and
        ``(4) shall be administered by individuals with expertise in 
    second language acquisition, scientifically based research on 
    teaching limited English proficient children, and the needs of 
    limited English proficient children and their families.
    ``(c) Field-Initiated Research.--
        ``(1) In general.--The Secretary shall reserve not less than 5 
    percent of the funds made available to carry out this section for 
    field-initiated research conducted by recipients of grants under 
    subpart 1 or this subpart who have received such grants within the 
    previous 5 years. Such research may provide for longitudinal 
    studies of limited English proficient children or teachers who 
    serve such children, monitoring the education of such children from 
    entry into language instruction educational programs through 
    secondary school completion.
        ``(2) Applications.--An applicant for assistance under this 
    subsection may submit an application for such assistance to the 
    Secretary at the same time as the applicant submits another 
    application under subpart 1 or this subpart. The Secretary shall 
    complete a review of such applications on a timely basis to allow 
    the activities carried out under research and program grants to be 
    coordinated when recipients are awarded two or more of such grants.
    ``(d) Consultation.--The Secretary shall consult with agencies, 
organizations, and individuals that are engaged in research and 
practice on the education of limited English proficient children, 
language instruction educational programs, or related research, to 
identify areas of study and activities to be funded under this section.
    ``(e) Data Collection.--The Secretary shall provide for the 
collection of data on limited English proficient children as part of 
the data systems operated by the Department.

``SEC. 3223. ACADEMIC EXCELLENCE AWARDS.

    ``(a) Authority.--The Secretary may make grants to State 
educational agencies to assist the agencies in recognizing local 
educational agencies and other public and nonprofit entities whose 
programs have--
        ``(1) demonstrated significant progress in assisting limited 
    English proficient children to learn English according to age 
    appropriate and developmentally appropriate standards; and
        ``(2) demonstrated significant progress in assisting limited 
    English proficient children to meet, according to age appropriate 
    and developmentally appropriate standards, the same challenging 
    State academic content and student academic achievement standards 
    as all children are expected to meet.
    ``(b) Applications.--A State educational agency desiring a grant 
under this section shall include an application for such grant in the 
application submitted by the agency under section 3224(e).

``SEC. 3224. STATE GRANT PROGRAM.

    ``(a) State Grant Program.--The Secretary is authorized to make an 
award to a State educational agency that demonstrates, to the 
satisfaction of the Secretary, that such agency, through such agency's 
programs and other Federal education programs, effectively provides for 
the education of limited English proficient children within the State.
    ``(b) Payments.--The amount paid to a State educational agency 
under subsection (a) shall not exceed 5 percent of the total amount 
awarded to local educational agencies and entities within the State 
under subpart 1 for the previous fiscal year, except that in no case 
shall the amount paid by the Secretary to any State educational agency 
under this subsection for any fiscal year be less than $100,000.
    ``(c) Use of Funds.--
        ``(1) In general.--A State educational agency shall use funds 
    awarded under this section--
            ``(A) to assist local educational agencies in the State 
        with activities that--
                ``(i) consist of program design, capacity building, 
            assessment of student academic achievement, program 
            evaluation, and development of data collection and 
            accountability systems for limited English proficient 
            children; and
                ``(ii) are aligned with State reform efforts; and
            ``(B) to collect data on the State's limited English 
        proficient populations and document the services available to 
        all such populations.
        ``(2) Training.--The State educational agency may also use 
    funds provided under this section for the training of State 
    educational agency personnel in educational issues affecting 
    limited English proficient children.
        ``(3) Special rule.--Recipients of funds under this section 
    shall not restrict the provision of services under this section to 
    federally funded programs.
    ``(d) State Consultation.--A State educational agency receiving 
funds under this section shall consult with recipients of grants under 
this subpart and other individuals or organizations involved in the 
development or operation of programs serving limited English proficient 
children to ensure that such funds are used in a manner consistent with 
the requirements of this subpart.
    ``(e) Applications.--A State educational agency desiring to receive 
funds under this section shall submit an application to the Secretary 
at such time, in such form, and containing such information and 
assurances as the Secretary may require.
    ``(f) Supplement, Not Supplant.--Federal funds made available under 
this section for any fiscal year shall be used by the State educational 
agency to supplement and, to the extent practical, to increase the 
State funds that, in the absence of such Federal funds, would be made 
available for the purposes described in this section, and in no case to 
supplant such State funds.
    ``(g) Report to the Secretary.--A State educational agency 
receiving an award under this section shall provide for the annual 
submission of a summary report to the Secretary describing such State's 
use of the funds made available through the award.

``SEC. 3225. INSTRUCTION MATERIALS DEVELOPMENT.

    ``(a) In General.--The Secretary may make grants for the 
development, publication, and dissemination of high-quality instruction 
materials--
        ``(1) in Native American languages (including Native Hawaiian 
    languages and the language of Native American Pacific Islanders), 
    and the language of natives of the outlying areas, for which 
    instruction materials are not readily available; and
        ``(2) in other low-incidence languages in the United States for 
    which instruction materials are not readily available.
    ``(b) Priority.--In making the grants, the Secretary shall give 
priority to applicants for the grants who propose--
        ``(1) to develop instruction materials in languages indigenous 
    to the United States or the outlying areas; and
        ``(2) to develop and evaluate materials, in collaboration with 
    entities carrying out activities assisted under subpart 1 and this 
    subpart, that are consistent with challenging State academic 
    content and student academic achievement standards.

                 ``Subpart 3--Professional Development

``SEC. 3231. PROFESSIONAL DEVELOPMENT GRANTS.

    ``(a) Purpose.--The purpose of this section is to provide 
assistance to prepare educators to improve educational services for 
limited English proficient children by--
        ``(1) supporting professional development programs and 
    activities to prepare teachers, pupil service personnel, 
    administrators, and other educational personnel working in language 
    instruction educational programs to provide effective services to 
    limited English proficient children;
        ``(2) incorporating curricula and resources concerning 
    appropriate and effective instruction and assessment methodologies 
    specific to limited English proficient children into preservice and 
    inservice professional development programs;
        ``(3) upgrading the qualifications and skills of non-certified 
    educational personnel, including paraprofessionals, to enable such 
    personnel to meet high professional standards for educating limited 
    English proficient children;
        ``(4) improving the quality of professional development 
    programs in schools or departments of education at institutions of 
    higher education, for educational personnel serving, or preparing 
    to serve, limited English proficient children; and
        ``(5) supporting the recruitment and training of prospective 
    educational personnel to serve limited English proficient children 
    by providing fellowships for undergraduate, graduate, doctoral, and 
    post-doctoral study related to the instruction of such children.
    ``(b) Authorization.--
        ``(1) In general.--The Secretary is authorized to award grants 
    under this section to--
            ``(A) State educational agencies;
            ``(B) local educational agencies;
            ``(C) institutions of higher education; or
            ``(D) consortia of one or more local educational agencies, 
        State educational agencies, institutions of higher education, 
        for-profit organizations, or nonprofit organizations.
        ``(2) Duration.--Each grant awarded under this section shall be 
    awarded for a period of not more than 4 years.
    ``(c) Authorized Activities.--Grants awarded under this section 
shall be used to conduct high-quality professional development programs 
and effective activities to improve the quality of instruction and 
services provided to limited English proficient children, including--
        ``(1) implementing preservice and inservice professional 
    development programs for teachers who serve limited English 
    proficient children, administrators, and other educational 
    personnel who are preparing to provide educational services for 
    limited English proficient children, including professional 
    development programs that assist limited English proficient 
    children to attain English proficiency;
        ``(2) implementing school-based collaborative efforts among 
    teachers to improve instruction in core academic subjects, 
    especially reading, for limited English proficient children;
        ``(3) developing and implementing programs to assist beginning 
    teachers who serve limited English proficient children with 
    transitioning to the teaching profession, including programs that 
    provide mentoring and team teaching with trained and experienced 
    teachers;
        ``(4) implementing programs that support effective teacher use 
    of education technologies to improve instruction and assessment;
        ``(5) developing curricular materials and assessments for 
    teachers that are appropriate to the needs of limited English 
    proficient children, and that are aligned with challenging State 
    academic content and student academic achievement standards, 
    including materials and assessments that ensure limited English 
    proficient children attain English proficiency;
        ``(6) integrating and coordinating activities with entities 
    carrying out other programs consistent with the purpose of this 
    section and supported under this Act, or other Acts as appropriate;
        ``(7) developing and implementing career ladder programs to 
    upgrade the qualifications and skills of non-certified educational 
    personnel working in, or preparing to work in, language instruction 
    educational programs to enable such personnel to meet high 
    professional standards, including standards for certification and 
    licensure as teachers;
        ``(8) developing and implementing activities to help recruit 
    and train secondary school students as teachers who serve limited 
    English proficient children;
        ``(9) providing fellowships and assistance for costs related to 
    enrollment in a course of study at an institution of higher 
    education that addresses the instruction of limited English 
    proficient children in such areas as teacher training, program 
    administration, research, evaluation, and curriculum development, 
    and for the support of dissertation research related to such study, 
    except that any person receiving such a fellowship or assistance 
    shall agree to--
            ``(A) work in an activity related to improving the 
        educational services for limited English proficient children 
        authorized under this subpart, including work as a teacher that 
        serves limited English proficient children, for a period of 
        time equivalent to the period of time during which such person 
        receives assistance under this paragraph; or
            ``(B) repay such assistance; and
        ``(10) carrying out such other activities as are consistent 
    with the purpose of this section.
    ``(d) Application.--
        ``(1) In general.--Each eligible entity desiring a grant under 
    this section shall submit an application to the Secretary at such 
    time, in such form, and containing such information as the 
    Secretary may require.
        ``(2) Contents.--Each application shall--
            ``(A) describe the programs and activities proposed to be 
        developed, implemented, and administered under the award;
            ``(B) describe how the applicant has consulted with, and 
        assessed the needs of, public and private schools serving 
        limited English proficient children to determine such schools' 
        need for, and the design of, the program for which funds are 
        sought; and
            ``(C) describe how the programs and activities to be 
        carried out under the award will be used to ensure that limited 
        English proficient children meet challenging State academic 
        content and student academic achievement standards and attain 
        English proficiency.
        ``(3) Special rule.--An eligible entity that proposes to 
    conduct a master's-level or doctoral-level program with funds 
    received under this section shall include in the entity's 
    application an assurance that such program will include a training 
    practicum in a local elementary school or secondary school program 
    serving limited English proficient children.
        ``(4) Outreach and technical assistance.--The Secretary shall 
    provide for outreach and technical assistance to institutions of 
    higher education eligible for assistance under title III of the 
    Higher Education Act of 1965, and institutions of higher education 
    that are operated or funded by the Bureau of Indian Affairs, to 
    facilitate the participation of such institutions in programs and 
    activities under this section.
        ``(5) Distribution rule.--In making awards under this section, 
    the Secretary shall ensure adequate representation of Hispanic-
    serving institutions that demonstrate competence and experience in 
    carrying out the programs and activities authorized under this 
    section and that are otherwise qualified.
    ``(e) Priorities in Awarding Grants.--
        ``(1) Grants to agencies.--In awarding grants to State 
    educational agencies and local educational agencies under this 
    section, the Secretary shall give priority to agencies that propose 
    programs and activities designed to implement professional 
    development programs for teachers and educational personnel who are 
    providing or preparing to provide educational services for limited 
    English proficient children, including services provided through 
    language instruction educational programs, that ensure such 
    children attain English proficiency and meet challenging State 
    academic content and student academic achievement standards.
        ``(2) Grants to institutions of higher education.--In awarding 
    grants to institutions of higher education under this section, the 
    Secretary shall give priority to institutions that propose programs 
    and activities to recruit and upgrade the qualifications and skills 
    of certified and non-certified educational personnel by offering 
    degree programs that prepare beginning teachers to serve limited 
    English proficient children.
    ``(f) Program Evaluations.--Each recipient of an award under this 
section for a program or activity shall annually conduct an independent 
evaluation of the program or activity and submit to the Secretary a 
report containing such evaluation. Such report shall include 
information on--
        ``(1) the program or activity conducted by the recipient to 
    provide high-quality professional development to participants in 
    such program or activity;
        ``(2) the number of participants served through the program or 
    activity, the number of participants who completed the requirements 
    of the program or activity, and the number of participants who took 
    positions in an instruction setting with limited English proficient 
    children;
        ``(3) the effectiveness of the program or activity in imparting 
    the professional skills necessary for participants to achieve the 
    objectives of the program or activity; and
        ``(4) the teaching effectiveness of graduates of the program or 
    activity or other participants who have completed the program or 
    activity.

           ``Subpart 4--Emergency Immigrant Education Program

``SEC. 3241. PURPOSE.

    ``The purpose of this subpart is to assist eligible local 
educational agencies that experience unexpectedly large increases in 
their student population due to immigration--
        ``(1) to provide high-quality instruction to immigrant children 
    and youth; and
        ``(2) to help such children and youth--
            ``(A) with their transition into American society; and
            ``(B) meet the same challenging State academic content and 
        student academic achievement standards as all children are 
        expected to meet.

``SEC. 3242. STATE ADMINISTRATIVE COSTS.

    ``For any fiscal year, a State educational agency may reserve not 
more than 1.5 percent (2 percent if the State educational agency 
distributes funds received under this subpart to local educational 
agencies on a competitive basis) of the amount allotted to such agency 
under section 3244 to pay the costs of performing such agency's 
administrative functions under this subpart.

``SEC. 3243. WITHHOLDING.

    ``Whenever the Secretary, after providing reasonable notice and 
opportunity for a hearing to any State educational agency, finds that 
there is a failure to comply with a requirement of any provision of 
this subpart, the Secretary shall notify that agency that further 
payments will not be made to the agency under this subpart or, in the 
discretion of the Secretary, that the State educational agency shall 
not make further payments under this subpart to specified local 
educational agencies whose actions cause or are involved in such 
failure until the Secretary is satisfied that there is no longer any 
such failure to comply. Until the Secretary is so satisfied, no further 
payments shall be made to the State educational agency under this 
subpart, or payments by the State educational agency under this subpart 
shall be limited to local educational agencies whose actions did not 
cause or were not involved in the failure, as the case may be.

``SEC. 3244. STATE ALLOTMENTS.

    ``(a) Payments.--The Secretary shall, in accordance with the 
provisions of this section, make payments to State educational agencies 
for each of the fiscal years 2002 through 2008 for the purpose set 
forth in section 3241.
    ``(b) Allotments.--
        ``(1) In general.--Except as provided in subsections (c) and 
    (d), of the amount appropriated for each fiscal year for this 
    subpart, each State participating in the program assisted under 
    this subpart shall receive an allotment equal to the proportion of 
    the number of immigrant children and youth who are enrolled in 
    public elementary schools or secondary schools under the 
    jurisdiction of each local educational agency described in 
    paragraph (2), and in nonpublic elementary schools or secondary 
    schools within the district served by each such local educational 
    agency within such State, relative to the total number of immigrant 
    children and youth so enrolled in all the States participating in 
    the program assisted under this subpart.
        ``(2) Eligible local educational agencies.--A local educational 
    agency referred to in paragraph (1) is a local educational agency 
    for which the sum of the number of immigrant children and youth who 
    are enrolled in public elementary schools or secondary schools 
    under the jurisdiction of such agency, and in nonpublic elementary 
    schools or secondary schools within the district served by such 
    agency, during the fiscal year for which the payments are to be 
    made under this subpart, is equal to at least--
            ``(A) 500; or
            ``(B) 3 percent of the total number of children enrolled in 
        such public or nonpublic schools during such fiscal year,
    whichever is less.
    ``(c) Determinations of Number of Children and Youth.--
        ``(1) In general.--Determinations by the Secretary under this 
    section for any period with respect to the number of immigrant 
    children and youth shall be made on the basis of data or estimates 
    provided to the Secretary by each State educational agency in 
    accordance with criteria established by the Secretary, unless the 
    Secretary determines, after notice and opportunity for a hearing to 
    the affected State educational agency, that such data or estimates 
    are clearly erroneous.
        ``(2) Special rule.--No such determination with respect to the 
    number of immigrant children and youth shall operate because of an 
    underestimate or overestimate to deprive any State educational 
    agency of the allotment under this section that such State would 
    otherwise have received had such determination been made on the 
    basis of accurate data.
    ``(d) Reallotment.--
        ``(1) In general.--Whenever the Secretary determines that any 
    amount of a payment made to a State under this subpart for a fiscal 
    year will not be used by such State for carrying out the purpose 
    for which the payment was made, the Secretary shall make such 
    amount available for carrying out such purpose to one or more other 
    States to the extent the Secretary determines that such other 
    States will be able to use such additional amount for carrying out 
    such purpose.
        ``(2) Fiscal year.--Any amount made available to a State from 
    any appropriation for a fiscal year in accordance with paragraph 
    (1) shall, for purposes of this subpart, be regarded as part of 
    such State's payment (as determined under subsection (b)) for such 
    year, but shall remain available until the end of the succeeding 
    fiscal year.
    ``(e) Reservation of Funds.--
        ``(1) In general.--Notwithstanding any other provision of this 
    subpart, if the amount appropriated to carry out this subpart 
    exceeds $50,000,000 for a fiscal year, a State educational agency 
    may reserve not more than 20 percent of such agency's payment under 
    this subpart for such year to award grants, on a competitive basis, 
    to local educational agencies within the State as follows:
            ``(A) Agencies with immigrant children and youth.--At least 
        \1/2\ of the funds reserved under this paragraph shall be made 
        available to eligible local educational agencies (as described 
        in subsection (b)(2)) within the State with the highest numbers 
        and percentages of immigrant children and youth.
            ``(B) Agencies with a sudden influx of children and 
        youth.--Funds reserved under this paragraph and not made 
        available under subparagraph (A) may be distributed to local 
        educational agencies within the State that are experiencing a 
        sudden influx of immigrant children and youth and that are 
        otherwise not eligible for assistance under this subpart.
        ``(2) Use of grant funds.--Each local educational agency 
    receiving a grant under paragraph (1) shall use such grant funds to 
    carry out the activities described in section 3247.
        ``(3) Information.--Local educational agencies receiving funds 
    under paragraph (1) with the highest number of immigrant children 
    and youth may make information available on serving immigrant 
    children and youth to local educational agencies in the State with 
    sparse numbers of such children and youth.

``SEC. 3245. STATE APPLICATIONS.

    ``(a) Submission.--No State educational agency shall receive any 
payment under this subpart for any fiscal year unless such agency 
submits an application to the Secretary at such time, in such manner, 
and containing or accompanied by such information, as the Secretary may 
reasonably require. Each such application shall--
        ``(1) provide that the educational programs, services, and 
    activities for which payments under this subpart are made will be 
    administered by or under the supervision of the agency;
        ``(2) provide assurances that payments under this subpart will 
    be used for purposes set forth in sections 3241 and 3247, including 
    a description of how local educational agencies receiving funds 
    under this subpart will use such funds to meet such purposes and 
    will coordinate with entities carrying out other programs and 
    activities assisted under this Act, and other Acts as appropriate;
        ``(3) provide an assurance that local educational agencies 
    receiving funds under this subpart will coordinate the use of such 
    funds with entities carrying out programs and activities assisted 
    under part A of title I;
        ``(4) provide assurances that such payments, with the exception 
    of payments reserved under section 3244(e), will be distributed 
    among local educational agencies within that State on the basis of 
    the number of immigrant children and youth counted with respect to 
    each such local educational agency under section 3244(b)(1);
        ``(5) provide assurances that the State educational agency will 
    not finally disapprove in whole or in part any application for 
    funds received under this subpart without first affording the local 
    educational agency submitting an application for such funds 
    reasonable notice and opportunity for a hearing;
        ``(6) provide for making such reports as the Secretary may 
    reasonably require to perform the Secretary's functions under this 
    subpart;
        ``(7) provide assurances--
            ``(A) that to the extent consistent with the number of 
        immigrant children and youth enrolled in the nonpublic 
        elementary schools or secondary schools within the district 
        served by a local educational agency, such agency, after 
        consultation with appropriate officials of such schools, shall 
        provide for the benefit of such children and youth secular, 
        neutral, and nonideological services, materials, and equipment 
        necessary for the education of such children and youth;
            ``(B) that the control of funds provided under this subpart 
        for any materials or equipment, or property repaired, 
        remodeled, or constructed with those funds shall be in a public 
        agency for the uses and purpose provided in this subpart, and a 
        public agency shall administer such funds and property; and
            ``(C) that the provision of services pursuant to this 
        paragraph shall be provided by employees of a public agency or 
        through contract by such public agency with a person, 
        association, agency, or corporation who or which, in the 
        provision of such services, is independent of such nonpublic 
        elementary school or secondary school and of any religious 
        organization, and such employment or contract shall be under 
        the control and supervision of such public agency, and the 
        funds provided under this paragraph shall not be commingled 
        with State or local funds;
        ``(8) provide that funds reserved under section 3244(e) be 
    awarded on a competitive basis based on merit and need in 
    accordance with such section; and
        ``(9) provide an assurance that the State educational agency 
    and local educational agencies in the State receiving funds under 
    this subpart will comply with the requirements of section 1120(b).
    ``(b) Application Review.--
        ``(1) In general.--The Secretary shall review all applications 
    submitted pursuant to this section by State educational agencies.
        ``(2) Approval.--The Secretary shall approve any application 
    submitted by a State educational agency that meets the requirements 
    of this section.
        ``(3) Disapproval.--The Secretary shall disapprove any 
    application submitted by a State educational agency that does not 
    meet the requirements of this section, but shall not finally 
    disapprove an application except after providing reasonable notice, 
    technical assistance, and an opportunity for a hearing to the State 
    educational agency.

``SEC. 3246. ADMINISTRATIVE PROVISIONS.

    ``(a) Notification of Amount.--The Secretary, not later than June 1 
of each year, shall notify each State educational agency that has an 
application approved under section 3245 of the amount of such agency's 
allotment under section 3244 for the succeeding year.
    ``(b) Services to Immigrant Children and Youth Enrolled in 
Nonpublic Schools.--If by reason of any provision of law a local 
educational agency is prohibited from providing educational services 
for immigrant children and youth enrolled in nonpublic elementary 
schools and secondary schools, as required by section 3245(a)(7), or if 
the Secretary determines that a local educational agency has 
substantially failed or is unwilling to provide for the participation 
on an equitable basis of such children and youth enrolled in such 
schools, the Secretary may waive such requirement and shall arrange for 
the provision of services, subject to the requirements of this subpart, 
to such children and youth. Such waivers shall be subject to 
consultation, withholding, notice, and judicial review requirements in 
accordance with the provisions of title I.

``SEC. 3247. USES OF FUNDS.

    ``(a) Use of Funds.--Funds awarded under this subpart shall be used 
to pay for enhanced instructional opportunities for immigrant children 
and youth, which may include--
        ``(1) family literacy, parent outreach, and training activities 
    designed to assist parents to become active participants in the 
    education of their children;
        ``(2) support of personnel, including teacher aides who have 
    been specifically trained, or are being trained, to provide 
    services to immigrant children and youth;
        ``(3) tutorials, mentoring, and academic or career counseling 
    for immigrant children and youth;
        ``(4) identification and acquisition of curricular materials, 
    educational software, and technologies;
        ``(5) the provision of basic instruction services that are 
    directly attributable to the presence in the school district of 
    immigrant children and youth, including 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; and
        ``(6) such other activities, related to the purpose of this 
    subpart, as the Secretary may authorize.
    ``(b) Consortia.--A local educational agency that receives a grant 
under this subpart may collaborate or form a consortium with one or 
more local educational agencies, institutions of higher education, and 
nonprofit organizations to carry out a program described in an 
application approved under this subpart.
    ``(c) Subgrants.--A local educational agency that receives a grant 
under this subpart may, with the approval of the Secretary, make a 
subgrant to, or enter into a contract with, an institution of higher 
education, a nonprofit organization, or a consortium of such 
institutions or organizations to carry out a program described in an 
application approved under this subpart, including a program to serve 
out-of-school youth.
    ``(d) Construction.--Nothing in this subpart shall be construed to 
prohibit a local educational agency from serving immigrant children and 
youth simultaneously with children and youth with similar educational 
needs, in the same educational settings where appropriate.

``SEC. 3248. REPORTS.

    ``(a) Biennial Report.--Each State educational agency receiving 
funds under this subpart shall submit, once every 2 years, a report to 
the Secretary concerning the expenditure of funds by local educational 
agencies under this subpart. Each local educational agency receiving 
funds under this subpart shall submit to the State educational agency 
such information as may be necessary for such report.
    ``(b) Report to Congress.--The Secretary shall submit, once every 2 
years, a report to the appropriate committees of Congress concerning 
programs assisted under this subpart.

                      ``Subpart 5--Administration

``SEC. 3251. RELEASE TIME.

    ``The Secretary shall allow entities carrying out professional 
development programs funded under this part to use funds provided under 
this part for professional release time to enable individuals to 
participate in programs assisted under this part.

``SEC. 3252. NOTIFICATION.

    ``A State educational agency, and when applicable, the State board 
for postsecondary education, shall be notified within 3 working days 
after the date an award under this part is made to an eligible entity 
within the State.

``SEC. 3253. COORDINATION AND REPORTING REQUIREMENTS.

    ``(a) Coordination With Related Programs.--In order to maximize 
Federal efforts aimed at serving the educational needs of children and 
youth of limited English proficiency, the Secretary shall coordinate 
and ensure close cooperation with other programs serving language-
minority and limited English proficient children that are administered 
by the Department and other agencies. The Secretary shall consult with 
the Secretary of Labor, the Secretary of Health and Human Services, the 
Secretary of Agriculture, the Attorney General, and the heads of other 
relevant agencies to identify and eliminate barriers to appropriate 
coordination of programs that affect language-minority and limited 
English proficient children and their families. The Secretary shall 
provide for continuing consultation and collaboration, between the 
Office of English Language Acquisition, Language Enhancement, and 
Academic Achievement for Limited English Proficient Students and 
relevant programs operated by the Department, including programs under 
this part and other programs under this Act, in planning, contracts, 
providing joint technical assistance, providing joint field monitoring 
activities and in other relevant activities to ensure effective program 
coordination to provide high-quality educational opportunities to all 
language-minority and limited English proficient children.
    ``(b) Data.--The Secretary shall, to the extent feasible, ensure 
that all data collected by the Department shall include the collection 
and reporting of data on limited English proficient children.
    ``(c) Publication of Proposals.--The Secretary shall publish and 
disseminate all requests for proposals for programs funded under this 
part.
    ``(d) Report.--The Director shall prepare and, not later than 
February 1 of every other year, shall submit to the Secretary, 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--
        ``(1) on programs and activities carried out to serve limited 
    English proficient children under this part, and the effectiveness 
    of such programs and activities in improving the academic 
    achievement and English proficiency of children who are limited 
    English proficient;
        ``(2) containing a critical synthesis of data reported by 
    States under section 3224, when applicable;
        ``(3) containing an estimate of the number of certified or 
    licensed teachers working in language instruction educational 
    programs and educating limited English proficient children, and an 
    estimate of the number of such teachers that will be needed for the 
    succeeding 5 fiscal years;
        ``(4) containing the major findings of scientifically based 
    research carried out under this part; and
        ``(5) containing other information gathered from the reports 
    submitted to the Secretary under this title when applicable.

                      ``PART C--GENERAL PROVISIONS

``SEC. 3301. DEFINITIONS.

    ``Except as otherwise provided, in this title:
        ``(1) Child.--The term `child' means any individual aged 3 
    through 21.
        ``(2) Community-based organization.--The term `community-based 
    organization' means a private nonprofit organization of 
    demonstrated effectiveness, Indian tribe, or tribally sanctioned 
    educational authority, that is representative of a community or 
    significant segments of a community and that provides educational 
    or related services to individuals in the community. Such term 
    includes a Native Hawaiian or Native American Pacific Islander 
    native language educational organization.
        ``(3) Community college.--The term `community college' means an 
    institution of higher education as defined in section 101 of the 
    Higher Education Act of 1965 that provides not less than a 2-year 
    program that is acceptable for full credit toward a bachelor's 
    degree, including institutions receiving assistance under the 
    Tribally Controlled College or University Assistance Act of 1978.
        ``(4) Director.--The term `Director' means the Director of the 
    Office of English Language Acquisition, Language Enhancement, and 
    Academic Achievement for Limited English Proficient Students 
    established under section 209 of the Department of Education 
    Organization Act.
        ``(5) Family education program.--The term `family education 
    program' means a language instruction educational program or 
    special alternative instruction program that--
            ``(A) is designed--
                ``(i) to help limited English proficient adults and 
            out-of-school youths achieve English proficiency; and
                ``(ii) to provide instruction on how parents and family 
            members can facilitate the educational achievement of their 
            children;
            ``(B) when feasible, uses instructional programs based on 
        models developed under the Even Start Family Literacy Programs, 
        which promote adult literacy and train parents to support the 
        educational growth of their children, the Parents as Teachers 
        Program, and the Home Instruction Program for Preschool 
        Youngsters; and
            ``(C) gives preference to participation by parents and 
        immediate family members of children attending school.
        ``(6) Immigrant children and youth.--The term `immigrant 
    children and youth' means individuals who--
            ``(A) are aged 3 through 21;
            ``(B) were not born in any State; and
            ``(C) have not been attending one or more schools in any 
        one or more States for more than 3 full academic years.
        ``(7) Indian tribe.--The term `Indian tribe' means any Indian 
    tribe, band, nation, or other organized group or community, 
    including any Native village or Regional Corporation or Village 
    Corporation as defined in or established pursuant to the Alaska 
    Native Claims Settlement Act, that is recognized as eligible for 
    the special programs and services provided by the United States to 
    Indians because of their status as Indians.
        ``(8) Language instruction educational program.--The term 
    `language instruction educational program' means an instruction 
    course--
            ``(A) in which a limited English proficient child is placed 
        for the purpose of developing and attaining English 
        proficiency, while meeting challenging State academic content 
        and student academic achievement standards, as required by 
        section 1111(b)(1); and
            ``(B) that may make instructional use of both English and a 
        child's native language to enable the child to develop and 
        attain English proficiency, and may include the participation 
        of English proficient children if such course is designed to 
        enable all participating children to become proficient in 
        English and a second language.
        ``(9) Native american and native american language.--The terms 
    `Native American' and `Native American language' shall have the 
    meanings given such terms in section 103 of the Native American 
    Languages Act.
        ``(10) Native hawaiian or native american pacific islander 
    native language educational organization.--The term `Native 
    Hawaiian or Native American Pacific Islander native language 
    educational organization' means a nonprofit organization with--
            ``(A) a majority of its governing board and employees 
        consisting of fluent speakers of the traditional Native 
        American languages used in the organization's educational 
        programs; and
            ``(B) not less than 5 years successful experience in 
        providing educational services in traditional Native American 
        languages.
        ``(11) Native language.--The term `native language', when used 
    with reference to an individual of limited English proficiency, 
    means--
            ``(A) the language normally used by such individual; or
            ``(B) in the case of a child or youth, the language 
        normally used by the parents of the child or youth.
        ``(12) Paraprofessional.--The term `paraprofessional' means an 
    individual who is employed in a preschool, elementary school, or 
    secondary school under the supervision of a certified or licensed 
    teacher, including individuals employed in language instruction 
    educational programs, special education, and migrant education.
        ``(13) Specially qualified agency.--The term `specially 
    qualified agency' means an eligible entity, as defined in section 
    3141, in a State whose State educational agency--
            ``(A) does not participate in a program under subpart 1 of 
        part A for a fiscal year; or
            ``(B) 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 such 
        subpart.
        ``(14) State.--The term `State' means each of the 50 States, 
    the District of Columbia, and the Commonwealth of Puerto Rico.
        ``(15) Tribally sanctioned educational authority.--The term 
    `tribally sanctioned educational authority' means--
            ``(A) any department or division of education operating 
        within the administrative structure of the duly constituted 
        governing body of an Indian tribe; and
            ``(B) any nonprofit institution or organization that is--
                ``(i) chartered by the governing body of an Indian 
            tribe to operate a school described in section 3112(a) or 
            otherwise to oversee the delivery of educational services 
            to members of the tribe; and
                ``(ii) approved by the Secretary for the purpose of 
            carrying out programs under subpart 1 of part A for 
            individuals served by a school described in section 
            3112(a).

``SEC. 3302. PARENTAL NOTIFICATION.

    ``(a) In General.--Each eligible entity using funds provided under 
this title to provide a language instruction educational program shall, 
not later than 30 days after the beginning of the school year, inform a 
parent or the parents of a limited English proficient child identified 
for participation in, or participating in, such program of--
        ``(1) the reasons for the identification of their child as 
    limited English proficient and in need of placement in a language 
    instruction educational program;
        ``(2) the child's level of English proficiency, how such level 
    was assessed, and the status of the child's academic achievement;
        ``(3) the method 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, instruction goals, and use of English 
    and a native language in instruction;
        ``(4) how the program in which their child is, or will be 
    participating will meet the educational strengths and needs of the 
    child;
        ``(5) how such program will specifically help their child learn 
    English, and meet age appropriate academic achievement standards 
    for grade promotion and graduation;
        ``(6) the specific exit requirements for such program, the 
    expected rate of transition from such program into classrooms that 
    are not tailored for limited English proficient children, and the 
    expected rate of graduation from secondary school for such program 
    if funds under this title are used for children in secondary 
    schools;
        ``(7) in the case of a child with a disability, how such 
    program meets the objectives of the individualized education 
    program of the child; and
        ``(8) information pertaining to parental rights that includes 
    written guidance--
            ``(A) detailing--
                ``(i) the right that parents have to have their child 
            immediately removed from such program upon their request; 
            and
                ``(ii) 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
            ``(B) assisting parents in selecting among various programs 
        and methods of instruction, if more than one program or method 
        is offered by the eligible entity.
    ``(b) Separate Notification.--In addition to providing the 
information required to be provided under subsection (a), each eligible 
entity that is using funds provided under this title 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.
    ``(c) Receipt of Information.--The information required to be 
provided under subsections (a) and (b) to a parent shall be provided in 
an understandable and uniform format and, to the extent practicable, in 
a language that the parent can understand.
    ``(d) Special Rule Applicable During School Year.--For a child who 
has not been identified for participation in a language instruction 
educational program prior to the beginning of the school year, the 
eligible entity shall carry out subsections (a) through (c) with 
respect to the parents of the child within 2 weeks of the child being 
placed in such a program.
    ``(e) Parental Participation.--
        ``(1) In General.--Each eligible entity using funds provided 
    under this title to provide a language instruction educational 
    program shall implement an effective means of outreach to parents 
    of limited English proficient children to inform such parents of 
    how they can--
            ``(A) be involved in the education of their children; and
            ``(B) be active participants in assisting their children--
                ``(i) to learn English;
                ``(ii) to achieve at high levels in core academic 
            subjects; and
                ``(iii) to meet the same challenging State academic 
            content and student academic achievement standards as all 
            children are expected to meet.
        ``(2) Receipt of recommendations.--The outreach described in 
    paragraph (1) shall include holding, and sending notice of 
    opportunities for, regular meetings for the purpose of formulating 
    and responding to recommendations from parents described in such 
    paragraph.
    ``(f) Basis for Admission or Exclusion.--A child shall not be 
admitted to, or excluded from, any federally assisted education program 
on the basis of a surname or language-minority status.

``SEC. 3303. NATIONAL CLEARINGHOUSE.

    ``The Secretary shall establish and support the operation of a 
National Clearinghouse for English Language Acquisition and Language 
Instruction Educational Programs, which shall collect, analyze, 
synthesize, and disseminate information about language instruction 
educational programs for limited English proficient children, and 
related programs. The National Clearinghouse shall--
        ``(1) be administered as an adjunct clearinghouse of the 
    Educational Resources Information Center Clearinghouses system 
    supported by the Office of Educational Research and Improvement;
        ``(2) coordinate activities with Federal data and information 
    clearinghouses and entities operating Federal dissemination 
    networks and systems;
        ``(3) develop a system for improving the operation and 
    effectiveness of federally funded language instruction educational 
    programs;
        ``(4) collect and disseminate information on--
            ``(A) educational research and processes related to the 
        education of limited English proficient children; and
            ``(B) accountability systems that monitor the academic 
        progress of limited English proficient children in language 
        instruction educational programs, including information on 
        academic content and English proficiency assessments for 
        language instruction educational programs; and
        ``(5) publish, on an annual basis, a list of grant recipients 
    under this title.

``SEC. 3304. REGULATIONS.

    ``In developing regulations under this title, the Secretary shall 
consult with State educational agencies and local educational agencies, 
organizations representing limited English proficient individuals, and 
organizations representing teachers and other personnel involved in the 
education of limited English proficient children.''.

                     TITLE IV--21ST CENTURY SCHOOLS

SEC. 401. 21ST CENTURY SCHOOLS.

    Title IV (20 U.S.C. 7101 et seq.) is amended to read as follows:

                    ``TITLE IV--21ST CENTURY SCHOOLS

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

``SEC. 4001. SHORT TITLE.

    ``This part may be cited as the `Safe and Drug-Free Schools and 
Communities Act'.

``SEC. 4002. PURPOSE.

    ``The purpose of this part is to support programs that prevent 
violence in and around schools; that prevent the illegal use of 
alcohol, tobacco, and drugs; that involve parents and communities; and 
that are coordinated with related Federal, State, school, and community 
efforts and resources to foster a safe and drug-free learning 
environment that supports student academic achievement, through the 
provision of Federal assistance to--
        ``(1) States for grants to local educational agencies and 
    consortia of such agencies to establish, operate, and improve local 
    programs of school drug and violence prevention and early 
    intervention;
        ``(2) States for grants to, and contracts with, community-based 
    organizations and public and private entities for programs of drug 
    and violence prevention and early intervention, including 
    community-wide drug and violence prevention planning and organizing 
    activities;
        ``(3) States for development, training, technical assistance, 
    and coordination activities; and
        ``(4) public and private entities to provide technical 
    assistance; conduct training, demonstrations, and evaluation; and 
    to provide supplementary services and community-wide drug and 
    violence prevention planning and organizing activities for the 
    prevention of drug use and violence among students and youth.

``SEC. 4003. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated--
        ``(1) $650,000,000 for fiscal year 2002, and such sums as may 
    be necessary for each of the 5 succeeding fiscal years, for State 
    grants under subpart 1; and
        ``(2) such sums for fiscal year 2002, and for each of the 5 
    succeeding fiscal years, for national programs under subpart 2.

                       ``Subpart 1--State Grants

``SEC. 4111. RESERVATIONS AND ALLOTMENTS.

    ``(a) Reservations.--
        ``(1) In general.--From the amount made available under section 
    4003(1) to carry out this subpart for each fiscal year, the 
    Secretary--
            ``(A) shall reserve 1 percent or $4,750,000 (whichever is 
        greater) of such amount for grants to Guam, American Samoa, the 
        United States Virgin Islands, and the Commonwealth of the 
        Northern Mariana Islands, to be allotted in accordance with the 
        Secretary's determination of their respective needs and to 
        carry out programs described in this subpart;
            ``(B) shall reserve 1 percent or $4,750,000 (whichever is 
        greater) of such amount for the Secretary of the Interior to 
        carry out programs described in this subpart for Indian youth; 
        and
            ``(C) shall reserve 0.2 percent of such amount for Native 
        Hawaiians to be used under section 4117 to carry out programs 
        described in this subpart.
        ``(2) Other reservations.--From the amount made available under 
    section 4003(2) to carry out subpart 2 for each fiscal year, the 
    Secretary--
            ``(A) may reserve not more than $2,000,000 for the national 
        impact evaluation required by section 4122(a);
            ``(B) notwithstanding section 3 of the No Child Left Behind 
        Act of 2001, shall reserve an amount necessary to make 
        continuation grants to grantees under the Safe Schools/Healthy 
        Students initiative (under the same terms and conditions as 
        provided for in the grants involved).
    ``(b) State Allotments.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    Secretary shall, for each fiscal year, allot among the States--
            ``(A) one-half of the remainder not reserved under 
        subsection (a) according to the ratio between the school-aged 
        population of each State and the school-aged population of all 
        the States; and
            ``(B) one-half of such remainder according to the ratio 
        between the amount each State received under section 1124A for 
        the preceding year and the sum of such amounts received by all 
        the States.
        ``(2) Minimum.--For any fiscal year, no State shall be allotted 
    under this subsection an amount that is less than the greater of--
            ``(A) one-half of 1 percent of the total amount allotted to 
        all the States under this subsection; or
            ``(B) the amount such State received for fiscal year 2001 
        under section 4111 as such section was in effect the day 
        preceding the date of enactment of the No Child Left Behind Act 
        of 2001.
        ``(3) Reallotment.--
            ``(A) Reallotment for failure to apply.--If any State does 
        not apply for an allotment under this subpart for a fiscal 
        year, the Secretary shall reallot the amount of the State's 
        allotment to the remaining States in accordance with this 
        section.
            ``(B) Reallotment of unused funds.--The Secretary may 
        reallot any amount of any allotment to a State if the Secretary 
        determines that the State will be unable to use such amount 
        within 2 years of such allotment. Such reallotments shall be 
        made on the same basis as allotments are made under paragraph 
        (1).
        ``(4) Definition.--In this section the term `State' means each 
    of the 50 States, the District of Columbia, and the Commonwealth of 
    Puerto Rico.
    ``(c) Limitation.--Amounts appropriated under section 4003(2) for a 
fiscal year may not be increased above the amounts appropriated under 
such section for the previous fiscal year unless the amounts 
appropriated under section 4003(1) for the fiscal year involved are at 
least 10 percent greater that the amounts appropriated under such 
section 4003(1) for the previous fiscal year.

``SEC. 4112. RESERVATION OF STATE FUNDS FOR SAFE AND DRUG-FREE SCHOOLS.

    ``(a) State Reservation for the Chief Executive Officer of a 
State.--
        ``(1) In general.--The chief executive officer of a State may 
    reserve not more than 20 percent of the total amount allocated to a 
    State under section 4111(b) for each fiscal year to award 
    competitive grants and contracts to local educational agencies, 
    community-based organizations (including community anti-drug 
    coalitions) other public entities and private organizations, and 
    consortia thereof. Such grants and contracts shall be used to carry 
    out the comprehensive State plan described in section 4113(a) 
    through programs or activities that complement and support 
    activities of local educational agencies described in section 
    4115(b). Such officer shall award grants based on--
            ``(A) the quality of the program or activity proposed; and
            ``(B) how the program or activity meets the principles of 
        effectiveness described in section 4115(a).
        ``(2) Priority.--In making such grants and contracts under this 
    section, a chief executive officer shall give priority to programs 
    and activities that prevent illegal drug use and violence for--
            ``(A) children and youth who are not normally served by 
        State educational agencies or local educational agencies; or
            ``(B) populations that need special services or additional 
        resources (such as youth in juvenile detention facilities, 
        runaway or homeless children and youth, pregnant and parenting 
        teenagers, and school dropouts).
        ``(3) Special consideration.--In awarding funds under paragraph 
    (1), a chief executive officer shall give special consideration to 
    grantees that pursue a comprehensive approach to drug and violence 
    prevention that includes providing and incorporating mental health 
    services related to drug and violence prevention in their program.
        ``(4) Peer review.--Grants or contracts awarded under this 
    section shall be subject to a peer review process.
        ``(5) Use of funds.--Grants and contracts under this section 
    shall be used to implement drug and violence prevention activities, 
    including--
            ``(A) activities that complement and support local 
        educational agency activities under section 4115, including 
        developing and implementing activities to prevent and reduce 
        violence associated with prejudice and intolerance;
            ``(B) dissemination of information about drug and violence 
        prevention; and
            ``(C) development and implementation of community-wide drug 
        and violence prevention planning and organizing.
        ``(6) Administrative costs.--The chief executive officer of a 
    State may use not more than 3 percent of the amount described in 
    paragraph (1) for the administrative costs incurred in carrying out 
    the duties of such officer under this section.
    ``(b) In State Distribution.--
        ``(1) In general.--A State educational agency shall distribute 
    not less than 93 percent of the amount made available to the State 
    under section 4111(b), less the amount reserved under subsection 
    (a) of this section, to its local educational agencies.
        ``(2) State administration costs.--
            ``(A) In general.--A State educational agency may use not 
        more than 3 percent of the amount made available to the State 
        under section 4111(b) for each fiscal year less the amount 
        reserved under subsection (a) of this section, for State 
        educational agency administrative costs, including the 
        implementation of the uniform management information and 
        reporting system as provided for under subsection (c)(3).
            ``(B) Additional amounts for the uniform management 
        information system.--In the case of fiscal year 2002, a State 
        educational agency may, in addition to amounts provided for in 
        subparagraph (A), use 1 percent of the amount made available to 
        the State educational agency under section 4111(b) for each 
        fiscal year less the amount reserved under subsection (a) of 
        this section, for implementation of the uniform management 
        information and reporting system as provided for under 
        subsection (c)(3).
    ``(c) State Activities.--
        ``(1) In general.--A State educational agency may use not more 
    than 5 percent of the amount made available to the State under 
    section 4111(b) for each fiscal year less the amount reserved under 
    subsection (a) of this section, for activities described in this 
    subsection.
        ``(2) Activities.--A State educational agency shall use the 
    amounts described in paragraph (1), either directly, or through 
    grants and contracts, to plan, develop, and implement capacity 
    building, technical assistance and training, evaluation, program 
    improvement services, and coordination activities for local 
    educational agencies, community-based organizations, and other 
    public and private entities. Such uses--
            ``(A) shall meet the principles of effectiveness described 
        in section 4115(a);
            ``(B) shall complement and support local uses of funds 
        under section 4115(b);
            ``(C) shall be in accordance with the purposes of this 
        part; and
            ``(D) may include, among others activities--
                ``(i) identification, development, evaluation, and 
            dissemination of drug and violence prevention strategies, 
            programs, activities, and other information;
                ``(ii) training, technical assistance, and 
            demonstration projects to address violence that is 
            associated with prejudice and intolerance; and
                ``(iii) financial assistance to enhance drug and 
            violence prevention resources available in areas that serve 
            large numbers of low-income children, are sparsely 
            populated, or have other special needs.
        ``(3) Uniform management information and reporting system.--
            ``(A) Information and statistics.--A State shall establish 
        a uniform management information and reporting system.
            ``(B) Uses of funds.--A State may use funds described in 
        subparagraphs (A) and (B) of subsection (b)(2), either directly 
        or through grants and contracts, to implement the uniform 
        management information and reporting system described in 
        subparagraph (A), for the collection of information on--
                ``(i) truancy rates;
                ``(ii) the frequency, seriousness, and incidence of 
            violence and drug-related offenses resulting in suspensions 
            and expulsions in elementary schools and secondary schools 
            in the State;
                ``(iii) the types of curricula, programs, and services 
            provided by the chief executive officer, the State 
            educational agency, local educational agencies, and other 
            recipients of funds under this subpart; and
                ``(iv) the incidence and prevalence, age of onset, 
            perception of health risk, and perception of social 
            disapproval of drug use and violence by youth in schools 
            and communities.
            ``(C) Compilation of statistics.--In compiling the 
        statistics required for the uniform management information and 
        reporting system, the offenses described in subparagraph 
        (B)(ii) shall be defined pursuant to the State's criminal code, 
        but shall not identify victims of crimes or persons accused of 
        crimes. The collected data shall include incident reports by 
        school officials, anonymous student surveys, and anonymous 
        teacher surveys.
            ``(D) Reporting.--The information described under 
        subparagraph (B) shall be reported to the public and the data 
        referenced in clauses (i) and (ii) of such subparagraph shall 
        be reported to the State on a school-by-school basis.
            ``(E) Limitation.--Nothing in this subsection shall be 
        construed to authorize the Secretary to require particular 
        policies, procedures, or practices with respect to crimes 
        committed on school property or school security.

``SEC. 4113. STATE APPLICATION.

    ``(a) In General.--In order to receive an allotment under section 
4111(b) for any fiscal year, a State shall submit to the Secretary, at 
such time as the Secretary may require, an application that--
        ``(1) contains a comprehensive plan for the use of funds by the 
    State educational agency and the chief executive officer of the 
    State to provide safe, orderly, and drug-free schools and 
    communities through programs and activities that complement and 
    support activities of local educational agencies under section 
    4115(b), that comply with the principles of effectiveness under 
    section 4115(a), and that otherwise are in accordance with the 
    purpose of this part;
        ``(2) describes how activities funded under this subpart will 
    foster a safe and drug-free learning environment that supports 
    academic achievement;
        ``(3) provides an assurance that the application was developed 
    in consultation and coordination with appropriate State officials 
    and others, including the chief executive officer, the chief State 
    school officer, the head of the State alcohol and drug abuse 
    agency, the heads of the State health and mental health agencies, 
    the head of the State criminal justice planning agency, the head of 
    the State child welfare agency, the head of the State board of 
    education, or their designees, and representatives of parents, 
    students, and community-based organizations;
        ``(4) describes how the State educational agency will 
    coordinate such agency's activities under this subpart with the 
    chief executive officer's drug and violence prevention programs 
    under this subpart and with the prevention efforts of other State 
    agencies and other programs, as appropriate, in accordance with the 
    provisions in section 9306;
        ``(5) provides an assurance that funds reserved under section 
    4112(a) will not duplicate the efforts of the State educational 
    agency and local educational agencies with regard to the provision 
    of school-based drug and violence prevention activities and that 
    those funds will be used to serve populations not normally served 
    by the State educational agencies and local educational agencies 
    and populations that need special services, such as school 
    dropouts, suspended and expelled students, youth in detention 
    centers, runaway or homeless children and youth, and pregnant and 
    parenting youth;
        ``(6) provides an assurance that the State will cooperate with, 
    and assist, the Secretary in conducting data collection as required 
    by section 4122;
        ``(7) provides an assurance that the local educational agencies 
    in the State will comply with the provisions of section 9501 
    pertaining to the participation of private school children and 
    teachers in the programs and activities under this subpart;
        ``(8) provides an assurance that funds under this subpart will 
    be used to increase the level of State, local, and other non-
    Federal funds that would, in the absence of funds under this 
    subpart, be made available for programs and activities authorized 
    under this subpart, and in no case supplant such State, local, and 
    other non-Federal funds;
        ``(9) contains the results of a needs assessment conducted by 
    the State for drug and violence prevention programs, which shall be 
    based on ongoing State evaluation activities, including data on--
            ``(A) the incidence and prevalence of illegal drug use and 
        violence among youth in schools and communities, including the 
        age of onset, the perception of health risks, and the 
        perception of social disapproval among such youth;
            ``(B) the prevalence of risk factors, including high or 
        increasing rates of reported cases of child abuse or domestic 
        violence;
            ``(C) the prevalence of protective factors, buffers, or 
        assets; and
            ``(D) other variables in the school and community 
        identified through scientifically based research;
        ``(10) provides a statement of the State's performance measures 
    for drug and violence prevention programs and activities to be 
    funded under this subpart that will be focused on student behavior 
    and attitudes, derived from the needs assessment described in 
    paragraph (9), and be developed in consultation between the State 
    and local officials, and that consist of--
            ``(A) performance indicators for drug and violence 
        prevention programs and activities; and
            ``(B) levels of performance for each performance indicator;
        ``(11) describes the procedures the State will use for 
    assessing and publicly reporting progress toward meeting the 
    performance measures described in paragraph (10);
        ``(12) provides an assurance that the State application will be 
    available for public review after submission of the application;
        ``(13) describes the special outreach activities that will be 
    carried out by the State educational agency and the chief executive 
    officer of the State to maximize the participation of community-
    based organizations of demonstrated effectiveness that provide 
    services such as mentoring programs in low-income communities;
        ``(14) describes how funds will be used by the State 
    educational agency and the chief executive officer of the State to 
    support, develop, and implement community-wide comprehensive drug 
    and violence prevention planning and organizing activities;
        ``(15) describes how input from parents will be sought 
    regarding the use of funds by the State educational agency and the 
    chief executive officer of the State;
        ``(16) describes how the State educational agency will review 
    applications from local educational agencies, including how the 
    agency will receive input from parents in such review;
        ``(17) describes how the State educational agency will monitor 
    the implementation of activities under this subpart, and provide 
    technical assistance for local educational agencies, community-
    based organizations, other public entities, and private 
    organizations;
        ``(18) describes how the chief executive officer of the State 
    will award funds under section 4112(a) and implement a plan for 
    monitoring the performance of, and providing technical assistance 
    to, recipients of such funds; and
        ``(19) includes any other information the Secretary may 
    require.
    ``(b) Interim Application.--
        ``(1) Authority.--Notwithstanding any other provision of this 
    section, a State may submit for fiscal year 2002 a 1-year interim 
    application and plan for the use of funds under this subpart that 
    is consistent with the requirements of this section and contains 
    such information as the Secretary may specify in regulations.
        ``(2) Purpose.--The purpose of such interim application and 
    plan shall be to afford the State the opportunity to fully develop 
    and review such State's application and comprehensive plan 
    otherwise required by this section.
        ``(3) Exception.--A State may not receive a grant under this 
    subpart for a fiscal year after fiscal year 2002 unless the 
    Secretary has approved such State's application and comprehensive 
    plan as described in subsection (a).
    ``(c) Approval Process.--
        ``(1) Deemed approval.--An application submitted by a State 
    pursuant to this section shall undergo peer review by the Secretary 
    and 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.
        ``(2) Disapproval.--The Secretary shall not finally disapprove 
    the application, except after giving the State educational agency 
    and the chief executive officer of the State notice and an 
    opportunity for a hearing.
        ``(3) Notification.--If the Secretary finds that the 
    application is not in compliance, in whole or in part, with this 
    subpart, the Secretary shall--
            ``(A) give the State educational agency and the chief 
        executive officer of the State notice and an opportunity for a 
        hearing; and
            ``(B) notify the State educational agency and the chief 
        executive officer of the State of the finding of noncompliance, 
        and in such notification, shall--
                ``(i) cite the specific provisions in the application 
            that are not in compliance; and
                ``(ii) request additional information, only as to the 
            noncompliant provisions, needed to make the application 
            compliant.
        ``(4) Response.--If the State educational agency and the chief 
    executive officer of the State respond to the Secretary's 
    notification described in paragraph (3)(B) during the 45-day period 
    beginning on the date on which the agency received the 
    notification, and resubmit the application with the requested 
    information described in paragraph (3)(B)(ii), the Secretary shall 
    approve or disapprove such application prior to the later of--
            ``(A) the expiration of the 45-day period beginning on the 
        date on which the application is resubmitted; or
            ``(B) the expiration of the 120-day period described in 
        paragraph (1).
        ``(5) Failure to respond.--If the State educational agency and 
    the chief executive officer of the State do not respond to the 
    Secretary's notification described in paragraph (3)(B) 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. 4114. LOCAL EDUCATIONAL AGENCY PROGRAM.

    ``(a) In General.--
        ``(1) Funds to local educational agencies.--A State shall 
    provide the amount made available to the State under this subpart, 
    less the amounts reserved under section 4112 to local educational 
    agencies for drug and violence prevention and education programs 
    and activities as follows:
            ``(A) 60 percent of such amount based on the relative 
        amount such agencies received under part A of title I for the 
        preceding fiscal year.
            ``(B) 40 percent of such amount based on the relative 
        enrollments in public and private nonprofit elementary schools 
        and secondary schools within the boundaries of such agencies.
        ``(2) Administrative costs.--Of the amount received under 
    paragraph (1), a local educational agency may use not more than 2 
    percent for the administrative costs of carrying out its 
    responsibilities under this subpart.
        ``(3) Return of funds to state; reallocation.--
            ``(A) Return.--Except as provided in subparagraph (B), upon 
        the expiration of the 1-year period beginning on the date on 
        which a local educational agency receives its allocation under 
        this subpart--
                ``(i) such agency shall return to the State educational 
            agency any funds from such allocation that remain 
            unobligated; and
                ``(ii) the State educational agency shall reallocate 
            any such amount to local educational agencies that have 
            submitted plans for using such amount for programs or 
            activities on a timely basis.
            ``(B) Carryover.--In any fiscal year, a local educational 
        agency, may retain for obligation in the succeeding fiscal 
        year--
                ``(i) an amount equal to not more than 25 percent of 
            the allocation it received under this subpart for such 
            fiscal year; or
                ``(ii) upon a demonstration of good cause by such 
            agency and approval by the State educational agency, an 
            amount that exceeds 25 percent of such allocation.
            ``(C) Reallocation.--If a local educational agency chooses 
        not to apply to receive the amount allocated to such agency 
        under this subsection, or if such agency's application under 
        subsection (d) is disapproved by the State educational agency, 
        the State educational agency shall reallocate such amount to 
        one or more of its other local educational agencies.
    ``(b) Eligibility.--To be eligible to receive a subgrant under this 
subpart, a local educational agency desiring a subgrant shall submit an 
application to the State educational agency in accordance with 
subsection (d). Such an application shall be amended, as necessary, to 
reflect changes in the activities and programs of the local educational 
agency.
    ``(c) Development.--
        ``(1) Consultation.--
            ``(A) In general.--A local educational agency shall develop 
        its application through timely and meaningful consultation with 
        State and local government representatives, representatives of 
        schools to be served (including private schools), teachers and 
        other staff, parents, students, community-based organizations, 
        and others with relevant and demonstrated expertise in drug and 
        violence prevention activities (such as medical, mental health, 
        and law enforcement professionals).
            ``(B) Continued consultation.--On an ongoing basis, the 
        local educational agency shall consult with such 
        representatives and organizations in order to seek advice 
        regarding how best to coordinate such agency's activities under 
        this subpart with other related strategies, programs, and 
        activities being conducted in the community.
        ``(2) Design and development.--To ensure timely and meaningful 
    consultation under paragraph (1), a local educational agency at the 
    initial stages of design and development of a program or activity 
    shall consult, in accordance with this subsection, with appropriate 
    entities and persons on issues regarding the design and development 
    of the program or activity, including efforts to meet the 
    principles of effectiveness described in section 4115(a).
    ``(d) Contents of Applications.--An application submitted by a 
local educational agency under this section shall contain--
        ``(1) an assurance that the activities or programs to be funded 
    comply with the principles of effectiveness described in section 
    4115(a) and foster a safe and drug-free learning environment that 
    supports academic achievement;
        ``(2) a detailed explanation of the local educational agency's 
    comprehensive plan for drug and violence prevention, including a 
    description of--
            ``(A) how the plan will be coordinated with programs under 
        this Act, and other Federal, State, and local programs for drug 
        and violence prevention, in accordance with section 9306;
            ``(B) the local educational agency's performance measures 
        for drug and violence prevention programs and activities, that 
        shall consist of--
                ``(i) performance indicators for drug and violence 
            prevention programs and activities; including--

                    ``(I) specific reductions in the prevalence of 
                identified risk factors; and
                    ``(II) specific increases in the prevalence of 
                protective factors, buffers, or assets if any have been 
                identified; and

                ``(ii) levels of performance for each performance 
            indicator;
            ``(C) how such agency will assess and publicly report 
        progress toward attaining its performance measures;
            ``(D) the drug and violence prevention activity or program 
        to be funded, including how the activity or program will meet 
        the principles of effectiveness described in section 4115(a), 
        and the means of evaluating such activity or program; and
            ``(E) how the services will be targeted to schools and 
        students with the greatest need;
        ``(3) a description for how the results of the evaluations of 
    the effectiveness of the program will be used to refine, improve, 
    and strengthen the program;
        ``(4) an assurance that funds under this subpart will be used 
    to increase the level of State, local, and other non-Federal funds 
    that would, in the absence of funds under this subpart, be made 
    available for programs and activities authorized under this 
    subpart, and in no case supplant such State, local, and other non-
    Federal funds;
        ``(5) a description of the mechanisms used to provide effective 
    notice to the community of an intention to submit an application 
    under this subpart;
        ``(6) an assurance that drug and violence prevention programs 
    supported under this subpart convey a clear and consistent message 
    that acts of violence and the illegal use of drugs are wrong and 
    harmful;
        ``(7) an assurance that the applicant has, or the schools to be 
    served have, a plan for keeping schools safe and drug-free that 
    includes--
            ``(A) appropriate and effective school discipline policies 
        that prohibit disorderly conduct, the illegal possession of 
        weapons, and the illegal use, possession, distribution, and 
        sale of tobacco, alcohol, and other drugs by students;
            ``(B) security procedures at school and while students are 
        on the way to and from school;
            ``(C) prevention activities that are designed to create and 
        maintain safe, disciplined, and drug-free environments;
            ``(D) a crisis management plan for responding to violent or 
        traumatic incidents on school grounds; and
            ``(E) a code of conduct policy for all students that 
        clearly states the responsibilities of students, teachers, and 
        administrators in maintaining a classroom environment that--
                ``(i) allows a teacher to communicate effectively with 
            all students in the class;
                ``(ii) allows all students in the class to learn;
                ``(iii) has consequences that are fair, and 
            developmentally appropriate;
                ``(iv) considers the student and the circumstances of 
            the situation; and
                ``(v) is enforced accordingly;
        ``(8) an assurance that the application and any waiver request 
    under section 4115(a)(3) will be available for public review after 
    submission of the application; and
        ``(9) such other assurances, goals, and objectives identified 
    through scientifically based research that the State may reasonably 
    require in accordance with the purpose of this part.
    ``(e) Review of Application.--
        ``(1) In general.--In reviewing local applications under this 
    section, a State educational agency shall use a peer review process 
    or other methods of assuring the quality of such applications.
        ``(2) Considerations.--In determining whether to approve the 
    application of a local educational agency under this section, a 
    State educational agency shall consider the quality of application 
    and the extent to which the application meets the principles of 
    effectiveness described in section 4115(a).
    ``(f) Approval Process.--
        ``(1) Deemed approval.--An application submitted by a local 
    educational agency pursuant to this section shall be deemed to be 
    approved by the State educational agency unless the State 
    educational agency makes a written determination, prior to the 
    expiration of the 120-day period beginning on the date on which the 
    State educational agency received the application, that the 
    application is not in compliance with this subpart.
        ``(2) Disapproval.--The State educational agency shall not 
    finally disapprove the application, except after giving the local 
    educational agency notice and opportunity for a hearing.
        ``(3) Notification.--If the State educational agency finds that 
    the application is not in compliance, in whole or in part, with 
    this subpart, the State educational agency shall--
            ``(A) give the local educational agency notice and an 
        opportunity for a hearing; and
            ``(B) notify the local educational agency of the finding of 
        noncompliance, and in such notification, shall--
                ``(i) cite the specific provisions in the application 
            that are not in compliance; and
                ``(ii) request additional information, only as to the 
            noncompliant provisions, needed to make the application 
            compliant.
        ``(4) Response.--If the local educational agency responds to 
    the State educational agency's notification described in paragraph 
    (3)(B) 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 paragraph (3)(B)(ii), 
    the State educational agency shall approve or disapprove such 
    application prior to the later of--
            ``(A) the expiration of the 45-day period beginning on the 
        date on which the application is resubmitted; or
            ``(B) the expiration of the 120-day period described in 
        paragraph (1).
        ``(5) Failure to respond.--If the local educational agency does 
    not respond to the State educational agency's notification 
    described in paragraph (3)(B) 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. 4115. AUTHORIZED ACTIVITIES.

    ``(a) Principles of Effectiveness.--
        ``(1) In general.--For a program or activity developed pursuant 
    to this subpart to meet the principles of effectiveness, such 
    program or activity shall--
            ``(A) be based on an assessment of objective data regarding 
        the incidence of violence and illegal drug use in the 
        elementary schools and secondary schools and communities to be 
        served, including an objective analysis of the current 
        conditions and consequences regarding violence and illegal drug 
        use, including delinquency and serious discipline problems, 
        among students who attend such schools (including private 
        school students who participate in the drug and violence 
        prevention program) that is based on ongoing local assessment 
        or evaluation activities;
            ``(B) be based on an established set of performance 
        measures aimed at ensuring that the elementary schools and 
        secondary schools and communities to be served by the program 
        have a safe, orderly, and drug-free learning environment;
            ``(C) be based on scientifically based research that 
        provides evidence that the program to be used will reduce 
        violence and illegal drug use;
            ``(D) be based on an analysis of the data reasonably 
        available at the time, of the prevalence of risk factors, 
        including high or increasing rates of reported cases of child 
        abuse and domestic violence; protective factors, buffers, 
        assets; or other variables in schools and communities in the 
        State identified through scientifically based research; and
            ``(E) include meaningful and ongoing consultation with and 
        input from parents in the development of the application and 
        administration of the program or activity.
        ``(2) Periodic evaluation.--
            ``(A) Requirement.--The program or activity shall undergo a 
        periodic evaluation to assess its progress toward reducing 
        violence and illegal drug use in schools to be served based on 
        performance measures described in section 4114(d)(2)(B).
            ``(B) Use of results.--The results shall be used to refine, 
        improve, and strengthen the program, and to refine the 
        performance measures, and shall also be made available to the 
        public upon request, with public notice of such availability 
        provided.
        ``(3) Waiver.--A local educational agency may apply to the 
    State for a waiver of the requirement of subsection (a)(1)(C) to 
    allow innovative activities or programs that demonstrate 
    substantial likelihood of success.
    ``(b) Local Educational Agency Activities.--
        ``(1) Program requirements.--A local educational agency shall 
    use funds made available under section 4114 to develop, implement, 
    and evaluate comprehensive programs and activities, which are 
    coordinated with other school and community-based services and 
    programs, that shall--
            ``(A) foster a safe and drug-free learning environment that 
        supports academic achievement;
            ``(B) be consistent with the principles of effectiveness 
        described in subsection (a)(1);
            ``(C) be designed to--
                ``(i) prevent or reduce violence; the use, possession 
            and distribution of illegal drugs; and delinquency; and
                ``(ii) create a well disciplined environment conducive 
            to learning, which includes consultation between teachers, 
            principals, and other school personnel to identify early 
            warning signs of drug use and violence and to provide 
            behavioral interventions as part of classroom management 
            efforts; and
            ``(D) include activities to--
                ``(i) promote the involvement of parents in the 
            activity or program;
                ``(ii) promote coordination with community groups and 
            coalitions, and government agencies; and
                ``(iii) distribute information about the local 
            educational agency's needs, goals, and programs under this 
            subpart.
        ``(2) Authorized activities.--Each local educational agency, or 
    consortium of such agencies, that receives a subgrant under this 
    subpart may use such funds to carry out activities that comply with 
    the principles of effectiveness described in subsection (a), such 
    as the following:
            ``(A) Age appropriate and developmentally based activities 
        that--
                ``(i) address the consequences of violence and the 
            illegal use of drugs, as appropriate;
                ``(ii) promote a sense of individual responsibility;
                ``(iii) teach students that most people do not 
            illegally use drugs;
                ``(iv) teach students to recognize social and peer 
            pressure to use drugs illegally and the skills for 
            resisting illegal drug use;
                ``(v) teach students about the dangers of emerging 
            drugs;
                ``(vi) engage students in the learning process; and
                ``(vii) incorporate activities in secondary schools 
            that reinforce prevention activities implemented in 
            elementary schools.
            ``(B) Activities that involve families, community sectors 
        (which may include appropriately trained seniors), and a 
        variety of drug and violence prevention providers in setting 
        clear expectations against violence and illegal use of drugs 
        and appropriate consequences for violence and illegal use of 
        drugs.
            ``(C) Dissemination of drug and violence prevention 
        information to schools and the community.
            ``(D) Professional development and training for, and 
        involvement of, school personnel, pupil services personnel, 
        parents, and interested community members in prevention, 
        education, early identification and intervention, mentoring, or 
        rehabilitation referral, as related to drug and violence 
        prevention.
            ``(E) Drug and violence prevention activities that may 
        include the following:
                ``(i) Community-wide planning and organizing activities 
            to reduce violence and illegal drug use, which may include 
            gang activity prevention.
                ``(ii) Acquiring and installing metal detectors, 
            electronic locks, surveillance cameras, or other related 
            equipment and technologies.
                ``(iii) Reporting criminal offenses committed on school 
            property.
                ``(iv) Developing and implementing comprehensive school 
            security plans or obtaining technical assistance concerning 
            such plans, which may include obtaining a security 
            assessment or assistance from the School Security and 
            Technology Resource Center at the Sandia National 
            Laboratory located in Albuquerque, New Mexico.
                ``(v) Supporting safe zones of passage activities that 
            ensure that students travel safely to and from school, 
            which may include bicycle and pedestrian safety programs.
                ``(vi) The hiring and mandatory training, based on 
            scientific research, of school security personnel 
            (including school resource officers) who interact with 
            students in support of youth drug and violence prevention 
            activities under this part that are implemented in the 
            school.
                ``(vii) Expanded and improved school-based mental 
            health services related to illegal drug use and violence, 
            including early identification of violence and illegal drug 
            use, assessment, and direct or group counseling services 
            provided to students, parents, families, and school 
            personnel by qualified school-based mental health service 
            providers.
                ``(viii) Conflict resolution programs, including peer 
            mediation programs that educate and train peer mediators 
            and a designated faculty supervisor, and youth anti-crime 
            and anti-drug councils and activities.
                ``(ix) Alternative education programs or services for 
            violent or drug abusing students that reduce the need for 
            suspension or expulsion or that serve students who have 
            been suspended or expelled from the regular educational 
            settings, including programs or services to assist students 
            to make continued progress toward meeting the State 
            academic achievement standards and to reenter the regular 
            education setting.
                ``(x) Counseling, mentoring, referral services, and 
            other student assistance practices and programs, including 
            assistance provided by qualified school-based mental health 
            services providers and the training of teachers by school-
            based mental health services providers in appropriate 
            identification and intervention techniques for students at 
            risk of violent behavior and illegal use of drugs.
                ``(xi) Programs that encourage students to seek advice 
            from, and to confide in, a trusted adult regarding concerns 
            about violence and illegal drug use.
                ``(xii) Drug and violence prevention activities 
            designed to reduce truancy.
                ``(xiii) Age-appropriate, developmentally-based 
            violence prevention and education programs that address 
            victimization associated with prejudice and intolerance, 
            and that include activities designed to help students 
            develop a sense of individual responsibility and respect 
            for the rights of others, and to resolve conflicts without 
            violence.
                ``(xiv) Consistent with the fourth amendment to the 
            Constitution of the United States, the testing of a student 
            for illegal drug use or the inspecting of a student's 
            locker for weapons or illegal drugs or drug paraphernalia, 
            including at the request of or with the consent of a parent 
            or legal guardian of the student, if the local educational 
            agency elects to so test or inspect.
                ``(xv) Emergency intervention services following 
            traumatic crisis events, such as a shooting, major 
            accident, or a drug-related incident that have disrupted 
            the learning environment.
                ``(xvi) Establishing or implementing a system for 
            transferring suspension and expulsion records, consistent 
            with section 444 of the General Education Provisions Act 
            (20 U.S.C. 1232g), by a local educational agency to any 
            public or private elementary school or secondary school.
                ``(xvii) Developing and implementing character 
            education programs, as a component of drug and violence 
            prevention programs, that take into account the views of 
            parents of the students for whom the program is intended 
            and such students, such as a program described in subpart 3 
            of part D of title V.
                ``(xviii) Establishing and maintaining a school safety 
            hotline.
                ``(xix) Community service, including community service 
            performed by expelled students, and service-learning 
            projects.
                ``(xx) Conducting a nationwide background check of each 
            local educational agency employee, regardless of when 
            hired, and prospective employees for the purpose of 
            determining whether the employee or prospective employee 
            has been convicted of a crime that bears upon the 
            employee's fitness--

                    ``(I) to be responsible for the safety or well-
                being of children;
                    ``(II) to serve in the particular capacity in which 
                the employee or prospective employee is or will be 
                employed; or
                    ``(III) to otherwise be employed by the local 
                educational agency.

                ``(xxi) Programs to train school personnel to identify 
            warning signs of youth suicide and to create an action plan 
            to help youth at risk of suicide.
                ``(xxii) Programs that respond to the needs of students 
            who are faced with domestic violence or child abuse.
            ``(F) The evaluation of any of the activities authorized 
        under this subsection and the collection of objective data used 
        to assess program needs, program implementation, or program 
        success in achieving program goals and objectives.
    ``(c) Limitation.--
        ``(1) In general.--Except as provided in paragraph (2), not 
    more than 40 percent of the funds available to a local educational 
    agency under this subpart may be used to carry out the activities 
    described in clauses (ii) through (vi) of subsection (b)(2)(E), of 
    which not more than 50 percent of such amount may be used to carry 
    out the activities described in clauses (ii) through (v) of such 
    subsection.
        ``(2) Exception.--A local educational agency may use funds 
    under this subpart for activities described in clauses (ii) through 
    (v) of subsection (b)(2)(E) only if funding for these activities is 
    not received from other Federal agencies.
    ``(d) Rule of Construction.--Nothing in this section shall be 
construed to prohibit the use of funds under this subpart by any local 
educational agency or school for the establishment or implementation of 
a school uniform policy if such policy is part of the overall 
comprehensive drug and violence prevention plan of the State involved 
and is supported by the State's needs assessment and other 
scientifically based research information.

``SEC. 4116. REPORTING.

    ``(a) State Report.--
        ``(1) In general.--By December 1, 2003, and every 2 years 
    thereafter, the chief executive officer of the State, in 
    cooperation with the State educational agency, shall submit to the 
    Secretary a report--
            ``(A) on the implementation and outcomes of State programs 
        under section 4112(a)(1) and section 4112(c) and local 
        educational agency programs under section 4115(b), as well as 
        an assessment of their effectiveness;
            ``(B) on the State's progress toward attaining its 
        performance measures for drug and violence prevention under 
        section 4113(a)(10); and
            ``(C) on the State's efforts to inform parents of, and 
        include parents in, violence and drug prevention efforts.
        ``(2) Special rule.--The report required by this subsection 
    shall be--
            ``(A) in the form specified by the Secretary;
            ``(B) based on the State's ongoing evaluation activities, 
        and shall include data on the incidence and prevalence, age of 
        onset, perception of health risk, and perception of social 
        disapproval of drug use and violence by youth in schools and 
        communities; and
            ``(C) made readily available to the public.
    ``(b) Local Educational Agency Report.--
        ``(1) In general.--Each local educational agency receiving 
    funds under this subpart shall submit to the State educational 
    agency such information that the State requires to complete the 
    State report required by subsection (a), including a description of 
    how parents were informed of, and participated in, violence and 
    drug prevention efforts.
        ``(2) Availability.--Information under paragraph (1) shall be 
    made readily available to the public.
        ``(3) Provision of documentation.--Not later than January 1 of 
    each year that a State is required to report under subsection (a), 
    the Secretary shall provide to the State educational agency all of 
    the necessary documentation required for compliance with this 
    section.

``SEC. 4117. PROGRAMS FOR NATIVE HAWAIIANS.

    ``(a) General Authority.--From the funds made available pursuant to 
section 4111(a)(1)(C) to carry out this section, the Secretary shall 
make grants to or enter into cooperative agreements or contracts with 
organizations primarily serving and representing Native Hawaiians for 
the benefit of Native Hawaiians to plan, conduct, and administer 
programs, or portions thereof, that are authorized by and consistent 
with the provisions of this subpart.
    ``(b) Definition of Native Hawaiian.--For the purposes of this 
section, the term `Native Hawaiian' means any individual any of whose 
ancestors were natives, prior to 1778, of the area which now comprises 
the State of Hawaii.

                     ``Subpart 2--National Programs

``SEC. 4121. FEDERAL ACTIVITIES.

    ``(a) Program Authorized.--From funds made available to carry out 
this subpart under section 4003(2), the Secretary, in consultation with 
the Secretary of Health and Human Services, the Director of the Office 
of National Drug Control Policy, and the Attorney General, shall carry 
out programs to prevent the illegal use of drugs and violence among, 
and promote safety and discipline for, students. The Secretary shall 
carry out such programs directly, or through grants, contracts, or 
cooperative agreements with public and private entities and 
individuals, or through agreements with other Federal agencies, and 
shall coordinate such programs with other appropriate Federal 
activities. Such programs may include--
        ``(1) the development and demonstration of innovative 
    strategies for the training of school personnel, parents, and 
    members of the community for drug and violence prevention 
    activities based on State and local needs;
        ``(2) the development, demonstration, scientifically based 
    evaluation, and dissemination of innovative and high quality drug 
    and violence prevention programs and activities, based on State and 
    local needs, which may include--
            ``(A) alternative education models, either established 
        within a school or separate and apart from an existing school, 
        that are designed to promote drug and violence prevention, 
        reduce disruptive behavior, reduce the need for repeat 
        suspensions and expulsions, enable students to meet challenging 
        State academic standards, and enable students to return to the 
        regular classroom as soon as possible;
            ``(B) community service and service-learning projects, 
        designed to rebuild safe and healthy neighborhoods and increase 
        students' sense of individual responsibility;
            ``(C) video-based projects developed by noncommercial 
        telecommunications entities that provide young people with 
        models for conflict resolution and responsible decisionmaking; 
        and
            ``(D) child abuse education and prevention programs for 
        elementary and secondary students;
        ``(3) the provision of information on drug abuse education and 
    prevention to the Secretary of Health and Human Services for 
    dissemination;
        ``(4) the provision of information on violence prevention and 
    education and school safety to the Department of Justice for 
    dissemination;
        ``(5) technical assistance to chief executive officers, State 
    agencies, local educational agencies, and other recipients of 
    funding under this part to build capacity to develop and implement 
    high-quality, effective drug and violence prevention programs 
    consistent with the principles of effectiveness in section 4115(a);
        ``(6) assistance to school systems that have particularly 
    severe drug and violence problems, including hiring drug prevention 
    and school safety coordinators, or assistance to support 
    appropriate response efforts to crisis situations;
        ``(7) the development of education and training programs, 
    curricula, instructional materials, and professional training and 
    development for preventing and reducing the incidence of crimes and 
    conflicts motivated by hate in localities most directly affected by 
    hate crimes;
        ``(8) activities in communities designated as empowerment zones 
    or enterprise communities that will connect schools to community-
    wide efforts to reduce drug and violence problems; and
        ``(9) other activities in accordance with the purpose of this 
    part, based on State and local needs.
    ``(b) Peer Review.--The Secretary shall use a peer review process 
in reviewing applications for funds under this section.

``SEC. 4122. IMPACT EVALUATION.

    ``(a) Biennial Evaluation.--The Secretary, in consultation with the 
Safe and Drug-Free Schools and Communities Advisory Committee described 
in section 4124, shall conduct an independent biennial evaluation of 
the impact of programs assisted under this subpart and of other recent 
and new initiatives to combat violence and illegal drug use in schools. 
The evaluation shall report on whether community and local educational 
agency