[107th Congress Public Law 110]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ110.107]
[[Page 115 STAT. 1425]]
Public Law 107-110
107th Congress
An Act
To close the achievement gap with accountability, flexibility, and
choice, so that no child is left behind. <<NOTE: Jan. 8, 2002 - [H.R.
1]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: No Child Left
Behind Act of 2001. Education. Inter-governmental relations.>>
SECTION 1. SHORT TITLE. <<NOTE: 20 USC 6301 note.>>
This title may be cited as the ``No Child Left Behind Act of 2001''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Transition.
Sec. 5. Effective date.
Sec. 6. Table of contents of Elementary and Secondary Education Act of
1965.
TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED
Sec. 101. Improving the academic achievement of the disadvantaged.
TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS AND
PRINCIPALS
Sec. 201. Teacher and principal training and recruiting fund.
Sec. 202. Continuation of awards.
TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND
IMMIGRANT STUDENTS
Sec. 301. Language instruction for limited English proficient children
and immigrant children and youth.
TITLE IV--21ST CENTURY SCHOOLS
Sec. 401. 21st Century schools.
TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS
Sec. 501. Innovative programs and parental choice provisions.
Sec. 502. Continuation of awards.
TITLE VI--FLEXIBILITY AND ACCOUNTABILITY
Sec. 601. Flexibility and accountability.
Sec. 602. Amendment to the National Education Statistics Act of 1994.
TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION
Sec. 701. Indians, Native Hawaiians, and Alaska Natives.
Sec. 702. Conforming amendments.
Sec. 703. Savings provisions.
TITLE VIII--IMPACT AID PROGRAM
Sec. 801. Payments relating to Federal acquisition of real property.
[[Page 115 STAT. 1426]]
Sec. 802. Payments for eligible federally connected children.
Sec. 803. Construction.
Sec. 804. State consideration of payments in providing State aid.
Sec. 805. Authorization of appropriations.
TITLE IX--GENERAL PROVISIONS
Sec. 901. General provisions.
TITLE X--REPEALS, REDESIGNATIONS, AND AMENDMENTS TO OTHER STATUTES
Part A--Repeals
Sec. 1011. Repeals.
Sec. 1012. Conforming clerical and technical amendments.
Part B--Redesignations
Sec. 1021. Comprehensive Regional Assistance Centers.
Sec. 1022. National Diffusion Network.
Sec. 1023. Eisenhower Regional Mathematics and Science Education
Consortia.
Sec. 1024. Technology-based technical assistance.
Sec. 1025. Conforming amendments.
Part C--Homeless Education
Sec. 1031. Short title.
Sec. 1032. Education for homeless children and youths.
Sec. 1033. Conforming amendment.
Sec. 1034. Technical amendment.
Part D--Native American Education Improvement
Sec. 1041. Short title.
Sec. 1042. Amendments to the Education Amendments of 1978.
Sec. 1043. Tribally Controlled Schools Act of 1988.
Sec. 1044. Lease payments by the Ojibwa Indian School.
Sec. 1045. Enrollment and general assistance payments.
Part E--Higher Education Act of 1965
Sec. 1051. Preparing tomorrow's teachers to use technology.
Sec. 1052. Continuation of awards.
Part F--General Education Provisions Act
Sec. 1061. Student privacy, parental access to information, and
administration of certain physical examinations to minors.
Sec. 1062. Technical corrections.
Part G--Miscellaneous Other Statutes
Sec. 1071. Title 5 of the United States Code.
Sec. 1072. Department of Education Organization Act.
Sec. 1073. Education Flexibility Partnership Act of 1999.
Sec. 1074. Educational Research, Development, Dissemination, and
Improvement Act of 1994.
Sec. 1075. National Child Protection Act of 1993.
Sec. 1076. Technical and conforming amendments.
SEC. 3. REFERENCES.
Except as otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6301 et seq.).
SEC. 4. TRANSITION. <<NOTE: 20 USC 6301 note.>>
(a) Multi-Year Awards.--Except as otherwise provided in this Act,
the recipient of a multi-year award under the Elementary and Secondary
Education Act of 1965, as that Act was in effect prior to the date of
enactment of this Act, shall continue to receive funds in accordance
with the terms of that award, except that no additional funds may be
awarded after September 30, 2002.
[[Page 115 STAT. 1427]]
(b) Planning and Transition.--Notwithstanding any other provision of
law, a recipient of funds under the Elementary and Secondary Education
Act of 1965, as that Act was in effect prior to the date of enactment of
this Act, may use funds available to the recipient under that
predecessor authority to carry out necessary and reasonable planning and
transition activities in order to ensure an orderly implementation of
programs authorized by this Act, and the amendments made by this Act.
(c) Orderly Transition.--The Secretary shall take such steps as are
necessary to provide for the orderly transition to, and implementation
of, programs authorized by this Act, and by the amendments made by this
Act, from programs authorized by the Elementary and Secondary Education
Act of 1965, as that Act was in effect prior to the date of enactment of
this Act.
SEC. 5. EFFECTIVE DATE. <<NOTE: 20 USC 6301 note.>>
(a) In General.--Except as otherwise provided in this Act, this Act,
and the amendments made by this Act, shall be effective upon the date of
enactment of this Act.
(b) Noncompetitive Programs.--With respect to noncompetitive
programs under which any funds are allotted by the Secretary of
Education to recipients on the basis of a formula, this Act, and the
amendments made by this Act, shall take effect on July 1, 2002.
(c) Competitive Programs.--With respect to programs that are
conducted by the Secretary on a competitive basis, this Act, and the
amendments made by this Act, shall take effect with respect to
appropriations for use under those programs for fiscal year 2002.
(d) Impact Aid.--With respect to title VIII (Impact Aid), this Act,
and the amendments made by this Act, shall take effect with respect to
appropriations for use under that title for fiscal year 2002.
SEC. 6. TABLE OF CONTENTS OF ELEMENTARY AND SECONDARY EDUCATION ACT OF
1965.
The Act is amended--
(1) in the heading of section 1, <<NOTE: 20 USC 6301
note.>> by striking ``table of contents'' and inserting ``short
title''; and
(2) by adding after section 1 the following new section:
``SEC. 2. TABLE OF CONTENTS.
``The table of contents for this Act is as follows:
``Sec. 1. Short title.
``Sec. 2. Table of contents.
``TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED
``Sec. 1001. Statement of purpose.
``Sec. 1002. Authorization of appropriations.
``Sec. 1003. School improvement.
``Sec. 1004. State administration.
``Part A--Improving Basic Programs Operated by Local Educational
Agencies
``Subpart 1--Basic Program Requirements
``Sec. 1111. State plans.
``Sec. 1112. Local educational agency plans.
``Sec. 1113. Eligible school attendance areas.
``Sec. 1114. Schoolwide programs.
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``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.
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``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.
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``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.
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``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.
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``Sec. 3122. Achievement objectives and accountability.
``Sec. 3123. Reporting requirements.
``Sec. 3124. Coordination with related programs.
``Sec. 3125. Rules of construction.
``Sec. 3126. Legal authority under State law.
``Sec. 3127. Civil rights.
``Sec. 3128. Programs for Native Americans and Puerto Rico.
``Sec. 3129. Prohibition.
``Subpart 3--National Activities
``Sec. 3131. National professional development project.
``Subpart 4--Definitions
``Sec. 3141. Eligible entity.
``Part B--Improving Language Instruction Educational Programs
``Sec. 3201. Short title.
``Sec. 3202. Purpose.
``Sec. 3203. Native American children in school.
``Sec. 3204. Residents of the territories and freely associated states.
``Subpart 1--Program Development and Enhancement
``Sec. 3211. Financial assistance for language instruction educational
programs.
``Sec. 3212. Program enhancement activities.
``Sec. 3213. Comprehensive school and systemwide improvement activities.
``Sec. 3214. Applications.
``Sec. 3215. Capacity building.
``Sec. 3216. Programs for Native Americans and Puerto Rico.
``Sec. 3217. Evaluations.
``Sec. 3218. Construction.
``Subpart 2--Research, Evaluation, and Dissemination
``Sec. 3221. Authority.
``Sec. 3222. Research.
``Sec. 3223. Academic excellence awards.
``Sec. 3224. State grant program.
``Sec. 3225. Instruction materials development.
``Subpart 3--Professional Development
``Sec. 3231. Professional development grants.
``Subpart 4--Emergency Immigrant Education Program
``Sec. 3241. Purpose.
``Sec. 3242. State administrative costs.
``Sec. 3243. Withholding.
``Sec. 3244. State allotments.
``Sec. 3245. State applications.
``Sec. 3246. Administrative provisions.
``Sec. 3247. Uses of funds.
``Sec. 3248. Reports.
``Subpart 5--Administration
``Sec. 3251. Release time.
``Sec. 3252. Notification.
``Sec. 3253. Coordination and reporting requirements.
``Part C--General Provisions
``Sec. 3301. Definitions.
``Sec. 3302. Parental notification.
``Sec. 3303. National Clearinghouse.
``Sec. 3304. Regulations.
``TITLE IV--21ST CENTURY SCHOOLS
``Part A--Safe and Drug-Free Schools and Communities
``Sec. 4001. Short title.
``Sec. 4002. Purpose.
``Sec. 4003. Authorization of appropriations.
``Subpart 1--State Grants
``Sec. 4111. Reservations and allotments.
[[Page 115 STAT. 1433]]
``Sec. 4112. Reservation of State funds for safe and drug-free schools.
``Sec. 4113. State application.
``Sec. 4114. Local educational agency program.
``Sec. 4115. Authorized activities.
``Sec. 4116. Reporting.
``Sec. 4117. Programs for Native Hawaiians.
``Subpart 2--National Programs
``Sec. 4121. Federal activities.
``Sec. 4122. Impact evaluation.
``Sec. 4123. Hate crime prevention.
``Sec. 4124. Safe and Drug-Free Schools and Communities Advisory
Committee.
``Sec. 4125. National coordinator program.
``Sec. 4126. Community service grant program.
``Sec. 4127. School Security Technology and Resource Center.
``Sec. 4128. National Center for School and Youth Safety.
``Sec. 4129. Grants to reduce alcohol abuse.
``Sec. 4130. Mentoring programs.
``Subpart 3--Gun Possession
``Sec. 4141. Gun-free requirements.
``Subpart 4--General Provisions
``Sec. 4151. Definitions.
``Sec. 4152. Message and materials.
``Sec. 4153. Parental consent.
``Sec. 4154. Prohibited uses of funds.
``Sec. 4155. Transfer of school disciplinary records.
``Part B--21st Century Community Learning Centers
``Sec. 4201. Purpose; definitions.
``Sec. 4202. Allotments to States.
``Sec. 4203. State application.
``Sec. 4204. Local competitive grant program.
``Sec. 4205. Local activities.
``Sec. 4206. Authorization of appropriations.
``Part C--Environmental Tobacco Smoke
``Sec. 4301. Short title.
``Sec. 4302. Definitions.
``Sec. 4303. Nonsmoking policy for children's services.
``Sec. 4304. Preemption.
``TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS
``Part A--Innovative Programs
``Sec. 5101. Purposes, State and local responsibility.
``Subpart 1--State and Local Programs
``Sec. 5111. Allotment to States.
``Sec. 5112. Allocation to local educational agencies.
``Subpart 2--State Programs
``Sec. 5121. State uses of funds.
``Sec. 5122. State applications.
``Subpart 3--Local Innovative Education Programs
``Sec. 5131. Local uses of funds.
``Sec. 5132. Administrative authority.
``Sec. 5133. Local applications.
``Subpart 4--General Provisions
``Sec. 5141. Maintenance of effort.
``Sec. 5142. Participation of children enrolled in private schools.
``Sec. 5143. Federal administration.
``Sec. 5144. Supplement, not supplant.
``Sec. 5145. Definitions.
``Sec. 5146. Authorization of appropriations.
[[Page 115 STAT. 1434]]
``Part B--Public Charter Schools
``Subpart 1--Charter School Programs
``Sec. 5201. Purpose.
``Sec. 5202. Program authorized.
``Sec. 5203. Applications.
``Sec. 5204. Administration.
``Sec. 5205. National activities.
``Sec. 5206. Federal formula allocation during first year and for
successive enrollment expansions.
``Sec. 5207. Solicitation of input from charter school operators.
``Sec. 5208. Records transfer.
``Sec. 5209. Paperwork reduction.
``Sec. 5210. Definitions.
``Sec. 5211. Authorization of appropriations.
``Subpart 2--Credit Enhancement Initiatives To Assist Charter School
Facility Acquisition, Construction, and Renovation
``Sec. 5221. Purpose.
``Sec. 5222. Grants to eligible entities.
``Sec. 5223. Applications.
``Sec. 5224. Charter school objectives.
``Sec. 5225. Reserve account.
``Sec. 5226. Limitation on administrative costs.
``Sec. 5227. Audits and reports.
``Sec. 5228. No full faith and credit for grantee obligations.
``Sec. 5229. Recovery of funds.
``Sec. 5230. Definitions.
``Sec. 5231. Authorization of appropriations.
``Subpart 3--Voluntary Public School Choice Programs
``Sec. 5241. Grants.
``Sec. 5242. Uses of funds.
``Sec. 5243. Applications.
``Sec. 5244. Priorities.
``Sec. 5245. Requirements and voluntary participation.
``Sec. 5246. Evaluations.
``Sec. 5247. Definitions.
``Sec. 5248. Authorization of appropriations.
``Part C--Magnet Schools Assistance
``Sec. 5301. Findings and purpose.
``Sec. 5302. Definition.
``Sec. 5303. Program authorized.
``Sec. 5304. Eligibility.
``Sec. 5305. Applications and requirements.
``Sec. 5306. Priority.
``Sec. 5307. Use of funds.
``Sec. 5308. Prohibition.
``Sec. 5309. Limitations.
``Sec. 5310. Evaluations.
``Sec. 5311. Authorization of appropriations; reservation.
``Part D--Fund for the Improvement of Education
``Sec. 5401. Authorization of appropriations.
``Subpart 1--Fund for the Improvement of Education
``Sec. 5411. Programs authorized.
``Sec. 5412. Applications.
``Sec. 5413. Program requirements.
``Sec. 5414. Studies of national significance.
``Subpart 2--Elementary and Secondary School Counseling Programs
``Sec. 5421. Elementary and secondary school counseling programs.
``Subpart 3--Partnerships in Character Education
``Sec. 5431. Partnerships in Character Education program.
``Subpart 4--Smaller Learning Communities
``Sec. 5441. Smaller learning communities.
[[Page 115 STAT. 1435]]
``Subpart 5--Reading Is Fundamental--Inexpensive Book Distribution
Program
``Sec. 5451. Inexpensive book distribution program for reading
motivation.
``Subpart 6--Gifted and Talented Students
``Sec. 5461. Short title.
``Sec. 5462. Purpose.
``Sec. 5463. Rule of construction.
``Sec. 5464. Authorized programs.
``Sec. 5465. Program priorities.
``Sec. 5466. General provisions.
``Subpart 7--Star Schools Program
``Sec. 5471. Short title.
``Sec. 5472. Purposes.
``Sec. 5473. Grant program authorized.
``Sec. 5474. Applications.
``Sec. 5475. Other grant assistance.
``Sec. 5476. Administrative provisions.
``Sec. 5477. Definitions.
``Subpart 8--Ready to Teach
``Sec. 5481. Grants.
``Sec. 5482. Application required.
``Sec. 5483. Reports and evaluation.
``Sec. 5484. Digital educational programming grants.
``Sec. 5485. Administrative costs.
``Subpart 9--Foreign Language Assistance Program
``Sec. 5491. Short title.
``Sec. 5492. Program authorized.
``Sec. 5493. Applications.
``Sec. 5494. Elementary school foreign language incentive program.
``Subpart 10--Physical Education
``Sec. 5501. Short title.
``Sec. 5502. Purpose.
``Sec. 5503. Program authorized.
``Sec. 5504. Applications.
``Sec. 5505. Requirements.
``Sec. 5506. Administrative provisions.
``Sec. 5507. Supplement, not supplant.
``Subpart 11--Community Technology Centers
``Sec. 5511. Purpose and program authorization.
``Sec. 5512. Eligibility and application requirements.
``Sec. 5513. Uses of funds.
``Subpart 12--Educational, Cultural, Apprenticeship, and Exchange
Programs for Alaska Natives, Native Hawaiians, and Their Historical
Whaling and Trading Partners in Massachusetts
``Sec. 5521. Short title.
``Sec. 5522. Findings and purposes.
``Sec. 5523. Program authorization.
``Sec. 5524. Administrative provisions.
``Sec. 5525. Availability of funds.
``Sec. 5526. Definitions.
``Subpart 13--Excellence in Economic Education
``Sec. 5531. Short title.
``Sec. 5532. Purpose and goals.
``Sec. 5533. Grant program authorized.
``Sec. 5534. Applications.
``Sec. 5535. Requirements.
``Sec. 5536. Administrative provisions.
``Sec. 5537. Supplement, not supplant.
``Subpart 14--Grants to Improve the Mental Health of Children
``Sec. 5541. Grants for the integration of schools and mental health
systems.
[[Page 115 STAT. 1436]]
``Sec. 5542. Promotion of school readiness through early childhood
emotional and social development.
``Subpart 15--Arts in Education
``Sec. 5551. Assistance for arts education.
``Subpart 16--Parental Assistance and Local Family Information Centers
``Sec. 5561. Purposes.
``Sec. 5562. Grants authorized.
``Sec. 5563. Applications.
``Sec. 5564. Uses of funds.
``Sec. 5565. Administrative provisions.
``Sec. 5566. Local family information centers.
``Subpart 17--Combatting Domestic Violence
``Sec. 5571. Grants to combat the impact of experiencing or witnessing
domestic violence on elementary and secondary school
children.
``Subpart 18--Healthy, High-Performance Schools
``Sec. 5581. Grant program authorized.
``Sec. 5582. State uses of funds.
``Sec. 5583. Local uses of funds.
``Sec. 5584. Report to Congress.
``Sec. 5585. Limitations.
``Sec. 5586. Healthy, high-performance school building defined.
``Subpart 19--Grants for Capital Expenses of Providing Equitable
Services for Private School Students
``Sec. 5591. Grant program authorized.
``Sec. 5592. Uses of funds.
``Sec. 5593. Allotments to States.
``Sec. 5594. Subgrants to local educational agencies.
``Sec. 5595. Capital expenses defined.
``Sec. 5596. Termination.
``Subpart 20--Additional Assistance for Certain Local Educational
Agencies Impacted by Federal Property Acquisition
``Sec. 5601. Reservation.
``Sec. 5602. Eligibility.
``Sec. 5603. Maximum amount.
``Subpart 21--Women's Educational Equity Act
``Sec. 5611. Short title and findings.
``Sec. 5612. Statement of purpose.
``Sec. 5613. Programs authorized.
``Sec. 5614. Applications.
``Sec. 5615. Criteria and priorities.
``Sec. 5616. Report.
``Sec. 5617. Administration.
``Sec. 5618. Amount.
``TITLE VI--FLEXIBILITY AND ACCOUNTABILITY
``Part A--Improving Academic Achievement
``Subpart 1--Accountability
``Sec. 6111. Grants for State assessments and related activities.
``Sec. 6112. Grants for enhanced assessment instruments.
``Sec. 6113. Funding.
``Subpart 2--Funding Transferability for State and Local Educational
Agencies
``Sec. 6121. Short title.
``Sec. 6122. Purpose.
``Sec. 6123. Transferability of funds.
``Subpart 3--State and Local Flexibility Demonstration
``Sec. 6131. Short title.
``Sec. 6132. Purpose.
``Sec. 6133. General provision.
[[Page 115 STAT. 1437]]
``CHAPTER A--STATE FLEXIBILITY AUTHORITY
``Sec. 6141. State flexibility.
``Sec. 6142. Consolidation and use of funds.
``Sec. 6143. Performance review and penalties.
``Sec. 6144. Renewal of grant of flexibility authority.
``CHAPTER B--LOCAL FLEXIBILITY DEMONSTRATION
``Sec. 6151. Local flexibility demonstration agreements.
``Sec. 6152. Consolidation and use of funds.
``Sec. 6153. Limitations on administrative expenditures.
``Sec. 6154. Performance review and penalties.
``Sec. 6155. Renewal of local flexibility demonstration agreement.
``Sec. 6156. Reports.
``Subpart 4--State Accountability for Adequate Yearly Progress
``Sec. 6161. Accountability for adequate yearly progress.
``Sec. 6162. Peer review.
``Sec. 6163. Technical assistance.
``Sec. 6164. Report to Congress.
``Part B--Rural Education Initiative
``Sec. 6201. Short title.
``Sec. 6202. Purpose.
``Subpart 1--Small, Rural School Achievement Program
``Sec. 6211. Use of applicable funding.
``Sec. 6212. Grant program authorized.
``Sec. 6213. Accountability.
``Subpart 2--Rural and Low-Income School Program
``Sec. 6221. Program authorized.
``Sec. 6222. Uses of funds.
``Sec. 6223. Applications.
``Sec. 6224. Accountability.
``Subpart 3--General Provisions
``Sec. 6231. Annual average daily attendance determination.
``Sec. 6232. Supplement, not supplant.
``Sec. 6233. Rule of construction.
``Sec. 6234. orization of appropriations.
``Part C--General Provisions
``Sec. 6301. Prohibition against Federal mandates, direction, or
control.
``Sec. 6302. Rule of construction on equalized spending.
``TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION
``Part A--Indian Education
``Sec. 7101. Statement of policy.
``Sec. 7102. Purpose.
``Subpart 1--Formula Grants to Local Educational Agencies
``Sec. 7111. Purpose.
``Sec. 7112. Grants to local educational agencies and tribes.
``Sec. 7113. Amount of grants.
``Sec. 7114. Applications.
``Sec. 7115. Authorized services and activities.
``Sec. 7116. Integration of services authorized.
``Sec. 7117. Student eligibility forms.
``Sec. 7118. Payments.
``Sec. 7119. State educational agency review.
``Subpart 2--Special Programs and Projects To Improve Educational
Opportunities for Indian Children
``Sec. 7121. Improvement of educational opportunities for Indian
children.
``Sec. 7122. Professional development for teachers and education
professionals.
``Subpart 3--National Activities
``Sec. 7131. National research activities.
[[Page 115 STAT. 1438]]
``Sec. 7132. In-service training for teachers of Indian children.
``Sec. 7133. Fellowships for Indian students.
``Sec. 7134. Gifted and talented Indian students.
``Sec. 7135. Grants to tribes for education administrative planning and
development.
``Sec. 7136. Improvement of educational opportunities for adult Indians.
``Subpart 4--Federal Administration
``Sec. 7141. National Advisory Council on Indian Education.
``Sec. 7142. Peer review.
``Sec. 7143. Preference for Indian applicants.
``Sec. 7144. Minimum grant criteria.
``Subpart 5--Definitions; Authorizations of Appropriations
``Sec. 7151. Definitions.
``Sec. 7152. Authorizations of appropriations.
``Part B--Native Hawaiian Education
``Sec. 7201. Short title.
``Sec. 7202. Findings.
``Sec. 7203. Purposes.
``Sec. 7204. Native Hawaiian Education Council and island councils.
``Sec. 7205. Program authorized.
``Sec. 7206. Administrative provisions.
``Sec. 7207. Definitions.
``Part C--Aalaska Native Education
``Sec. 7301. Short title.
``Sec. 7302. Findings.
``Sec. 7303. Purposes.
``Sec. 7304. Program authorized.
``Sec. 7305. Administrative provisions.
``Sec. 7306. Definitions.
``TITLE VIII--IMPACT AID
``Sec. 8001. Purpose.
``Sec. 8002. Payments relating to Federal acquisition of real property.
``Sec. 8003. Payments for eligible federally connected children.
`Sec. 8004. Policies and procedures relating to children residing on
Indian lands.
``Sec. 8005. Application for payments under sections 8002 and 8003.
``Sec. 8007. Construction.
``Sec. 8008. Facilities.
``Sec. 8009. State consideration of payments in providing State aid.
``Sec. 8010. Federal administration.
``Sec. 8011. Administrative hearings and judicial review.
``Sec. 8012. Forgiveness of overpayments.
``Sec. 8013. Definitions.
``Sec. 8014. Authorization of appropriations.
``TITLE IX--GENERAL PROVISIONS
``Part A--Definitions
``Sec. 9101. Definitions.
``Sec. 9102. Applicability of title.
``Sec. 9103. Applicability to Bureau of Indian Affairs operated schools.
``Part B--Flexibility in the use of Administrative and Other Funds
``Sec. 9201. Consolidation of State administrative funds for elementary
and secondary education programs.
``Sec. 9202. Single local educational agency States.
``Sec. 9203. Consolidation of funds for local administration.
``Sec. 9204. Consolidated set-aside for Department of the Interior
funds.
``Part C--Coordination of Programs; Consolidated State and Local Plans
and Applications
``Sec. 9301. Purpose.
``Sec. 9302. Optional consolidated State plans or applications.
``Sec. 9303. Consolidated reporting.
``Sec. 9304. General applicability of State educational agency
assurances.
``Sec. 9305. Consolidated local plans or applications.
[[Page 115 STAT. 1439]]
``Sec. 9306. Other general assurances.
``Part D--Waivers
``Sec. 9401. Waivers of statutory and regulatory requirements.
``Part E--Uniform Provisions
``Subpart 1--Private Schools
``Sec. 9501. Participation by private school children and teachers.
``Sec. 9502. Standards for by-pass.
``Sec. 9503. Complaint process for participation of private school
children.
``Sec. 9504. By-pass determination process.
``Sec. 9505. Prohibition against funds for religious worship or
instruction.
``Sec. 9506. Private, religious, and home schools.
``Subpart 2--Other Provisions
``Sec. 9521. Maintenance of effort.
``Sec. 9522. Prohibition regarding State aid.
``Sec. 9523. Privacy of assessment results.
``Sec. 9524. School prayer.
``Sec. 9525. Equal access to public school facilities.
``Sec. 9526. General prohibitions.
``Sec. 9527. Prohibitions on Federal Government and use of Federal
funds.
``Sec. 9528. Armed Forces recruiter access to students and student
recruiting information.
``Sec. 9529. Prohibition on federally sponsored testing.
``Sec. 9530. Limitations on national testing or certification for
teachers.
``Sec. 9531. Prohibition on nationwide database.
``Sec. 9532. Unsafe school choice option.
``Sec. 9533. Prohibition on discrimination.
``Sec. 9534. Civil rights.
``Sec. 9535. Rulemaking.
``Sec. 9536. Severability.
``Part F--Evaluations
``Sec. 9601. Evaluations.''.
TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED
SEC. 101. IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED.
Title I of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6301 et seq.) is amended to read as follows:
``TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED
``SEC. 1001. STATEMENT OF PURPOSE. <<NOTE: 20 USC 6301.>>
``The purpose of this title is to ensure that all children have a
fair, equal, and significant opportunity to obtain a high-quality
education and reach, at a minimum, proficiency on challenging State
academic achievement standards and state academic assessments. This
purpose can be accomplished by--
``(1) ensuring that high-quality academic assessments,
accountability systems, teacher preparation and training,
curriculum, and instructional materials are aligned with
challenging State academic standards so that students, teachers,
[[Page 115 STAT. 1440]]
parents, and administrators can measure progress against common
expectations for student academic achievement;
``(2) meeting the educational needs of low-achieving
children in our Nation's highest-poverty schools, limited
English proficient children, migratory children, children with
disabilities, Indian children, neglected or delinquent children,
and young children in need of reading assistance;
``(3) closing the achievement gap between high- and low-
performing children, especially the achievement gaps between
minority and nonminority students, and between disadvantaged
children and their more advantaged peers;
``(4) holding schools, local educational agencies, and
States accountable for improving the academic achievement of all
students, and identifying and turning around low-performing
schools that have failed to provide a high-quality education to
their students, while providing alternatives to students in such
schools to enable the students to receive a high-quality
education;
``(5) distributing and targeting resources sufficiently to
make a difference to local educational agencies and schools
where needs are greatest;
``(6) improving and strengthening accountability, teaching,
and learning by using State assessment systems designed to
ensure that students are meeting challenging State academic
achievement and content standards and increasing achievement
overall, but especially for the disadvantaged;
``(7) providing greater decisionmaking authority and
flexibility to schools and teachers in exchange for greater
responsibility for student performance;
``(8) providing children an enriched and accelerated
educational program, including the use of schoolwide programs or
additional services that increase the amount and quality of
instructional time;
``(9) promoting schoolwide reform and ensuring the access of
children to effective, scientifically based instructional
strategies and challenging academic content;
``(10) significantly elevating the quality of instruction by
providing staff in participating schools with substantial
opportunities for professional development;
``(11) coordinating services under all parts of this title
with each other, with other educational services, and, to the
extent feasible, with other agencies providing services to
youth, children, and families; and
``(12) affording parents substantial and meaningful
opportunities to participate in the education of their children.
``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 6302.>>
``(a) Local Educational Agency Grants.--For the purpose of carrying
out part A, there are authorized to be appropriated--
``(1) $13,500,000,000 for fiscal year 2002;
``(2) $16,000,000,000 for fiscal year 2003;
``(3) $18,500,000,000 for fiscal year 2004;
``(4) $20,500,000,000 for fiscal year 2005;
``(5) $22,750,000,000 for fiscal year 2006; and
``(6) $25,000,000,000 for fiscal year 2007.
``(b) Reading First.--
[[Page 115 STAT. 1441]]
``(1) Reading first.--For the purpose of carrying out
subpart 1 of part B, there are authorized to be appropriated
$900,000,000 for fiscal year 2002 and such sums as may be
necessary for each of the 5 succeeding fiscal years.
``(2) Early reading first.--For the purpose of carrying out
subpart 2 of part B, there are authorized to be appropriated
$75,000,000 for fiscal year 2002 and such sums as may be
necessary for each of the 5 succeeding fiscal years.
``(3) Even start.--For the purpose of carrying out subpart 3
of part B, there are authorized to be appropriated $260,000,000
for fiscal year 2002 and such sums as may be necessary for each
of the 5 succeeding fiscal years.
``(4) Improving literacy through school libraries.--For the
purpose of carrying out subpart 4 of part B, there are
authorized to be appropriated $250,000,000 for fiscal year 2002
and such sums as may be necessary for each of the 5 succeeding
fiscal years.
``(c) Education of Migratory Children.--For the purpose of carrying
out part C, there are authorized to be appropriated $410,000,000 for
fiscal year 2002 and such sums as may be necessary for each of the 5
succeeding fiscal years.
``(d) Prevention and Intervention Programs for Youth Who Are
Neglected, Delinquent, or at Risk.--For the purpose of carrying out part
D, there are authorized to be appropriated $50,000,000 for fiscal year
2002 and such sums as may be necessary for each of the 5 succeeding
fiscal years.
``(e) Federal Activities.--
``(1) Sections 1501 and 1502.--For the purpose of carrying
out sections 1501 and 1502, there are authorized to be
appropriated such sums as may be necessary for fiscal year 2002
and each of the 5 succeeding fiscal years.
``(2) Section 1504.--
``(A) In general.--For the purpose of carrying out
section 1504, there are authorized to be appropriated
such sums as may be necessary for fiscal year 2002 and
for each of the 5 succeeding fiscal years.
``(B) Special rule.--Of the funds appropriated
pursuant to subparagraph (A), not more than 30 percent
may be used for teachers associated with students
participating in the programs described in subsections
(a)(1), (b)(1), and (c)(1).
``(f) Comprehensive School Reform.--For the purpose of carrying out
part F, there are authorized to be appropriated such sums as may be
necessary for fiscal year 2002 and each of the 5 succeeding fiscal
years.
``(g) Advanced Placement.--For the purposes of carrying out part G,
there are authorized to be appropriated such sums for fiscal year 2002
and each 5 succeeding fiscal year.
``(h) School Dropout Prevention.--For the purpose of carrying out
part H, there are authorized to be appropriated $125,000,000 for fiscal
year 2002 and such sums as may be necessary for each of the 5 succeeding
fiscal years, of which--
``(1) up to 10 percent shall be available to carry out
subpart 1 of part H for each fiscal year; and
``(2) the remainder shall be available to carry out subpart
2 of part H for each fiscal year.
[[Page 115 STAT. 1442]]
``(i) School Improvement.--For the purpose of carrying out section
1003(g), there are authorized to be appropriated $500,000,000 for fiscal
year 2002 and such sums as may be necessary for each of the 5 succeeding
fiscal years.
``SEC. 1003. <<NOTE: 20 USC 6303.>> SCHOOL IMPROVEMENT.
``(a) State Reservations.--Each State shall reserve 2 percent of the
amount the State receives under subpart 2 of part A for fiscal years
2002 and 2003, and 4 percent of the amount received under such subpart
for fiscal years 2004 through 2007, to carry out subsection (b) and to
carry out the State's responsibilities under sections 1116 and 1117,
including carrying out the State educational agency's statewide system
of technical assistance and support for local educational agencies.
``(b) Uses.--Of the amount reserved under subsection (a) for any
fiscal year, the State educational agency--
``(1) shall allocate not less than 95 percent of that amount
directly to local educational agencies for schools identified
for school improvement, corrective action, and restructuring,
for activities under section 1116(b); or
``(2) may, with the approval of the local educational
agency, directly provide for these activities or arrange for
their provision through other entities such as school support
teams or educational service agencies.
``(c) Priority.--The State educational agency, in allocating funds
to local educational agencies under this section, shall give priority to
local educational agencies that--
``(1) serve the lowest-achieving schools;
``(2) demonstrate the greatest need for such funds; and
``(3) demonstrate the strongest commitment to ensuring that
such funds are used to enable the lowest-achieving schools to
meet the progress goals in school improvement plans under
section 1116 (b)(3)(A)(v).
``(d) Unused Funds.--If, after consultation with local educational
agencies in the State, the State educational agency determines that the
amount of funds reserved to carry out subsection (b) is greater than the
amount needed to provide the assistance described in that subsection,
the State educational agency shall allocate the excess amount to local
educational agencies in accordance with--
``(1) the relative allocations the State educational agency
made to those agencies for that fiscal year under subpart 2 of
part A; or
``(2) section 1126(c).
``(e) Special Rule.--Notwithstanding any other provision of this
section, the amount of funds reserved by the State educational agency
under subsection (a) in any fiscal year shall not decrease the amount of
funds each local educational agency receives under subpart 2 below the
amount received by such local educational agency under such subpart for
the preceding fiscal year.
``(f) <<NOTE: Public information. Records.>> Reporting.--The State
educational agency shall make publicly available a list of those schools
that have received funds or services pursuant to subsection (b) and the
percentage of students from each school from families with incomes below
the poverty line.
``(g) Assistance for Local School Improvement.--
[[Page 115 STAT. 1443]]
``(1) Program authorized.--The Secretary shall award grants
to States to enable the States to provide subgrants to local
educational agencies for the purpose of providing assistance for
school improvement consistent with section 1116.
``(2) State allotments.--Such grants shall be allotted among
States, the Bureau of Indian Affairs, and the outlying areas, in
proportion to the funds received by the States, the Bureau of
Indian Affairs, and the outlying areas, respectively, for the
fiscal year under parts A, C, and D of this title. The Secretary
shall expeditiously allot a portion of such funds to States for
the purpose of assisting local educational agencies and schools
that were in school improvement status on the date preceding the
date of enactment of the No Child Left Behind Act of 2001.
``(3) Reallocations.--If a State does not receive funds
under this subsection, the Secretary shall reallocate such funds
to other States in the same proportion funds are allocated under
paragraph (2).
``(4) State applications.--Each State educational agency
that desires to receive funds under this subsection shall submit
an application to the Secretary at such time, and containing
such information, as the Secretary shall reasonably require,
except that such requirement shall be waived if a State
educational agency submitted such information as part of its
State plan under this part. Each State application shall
describe how the State educational agency will allocate such
funds in order to assist the State educational agency and local
educational agencies in complying with school improvement,
corrective action, and restructuring requirements of section
1116.
``(5) Local educational agency grants.--A grant to a local
educational agency under this subsection shall be--
``(A) of sufficient size and scope to support the
activities required under sections 1116 and 1117, but
not less than $50,000 and not more than $500,000 for
each participating school;
``(B) integrated with other funds awarded by the
State under this Act; and
``(C) renewable for two additional 1-year periods if
schools are meeting the goals in their school
improvement plans developed under section 1116.
``(6) Priority.--The State, in awarding such grants, shall
give priority to local educational agencies with the lowest-
achieving schools that demonstrate--
``(A) the greatest need for such funds; and
``(B) the strongest commitment to ensuring that such
funds are used to provide adequate resources to enable
the lowest-achieving schools to meet the goals under
school and local educational agency improvement,
corrective action, and restructuring plans under section
1116.
``(7) Allocation.--A State educational agency that receives
a grant under this subsection shall allocate at least 95 percent
of the grant funds directly to local educational agencies for
schools identified for school improvement, corrective action, or
restructuring to carry out activities under section 1116(b), or
may, with the approval of the local educational agency, directly
provide for these activities or arrange for their provision
[[Page 115 STAT. 1444]]
through other entities such as school support teams or
educational service agencies.
``(8) Administrative costs.--A State educational agency that
receives a grant award under this subsection may reserve not
more than 5 percent of such grant funds for administration,
evaluation, and technical assistance expenses.
``(9) Local awards.--Each local educational agency that
applies for assistance under this subsection shall describe how
it will provide the lowest-achieving schools the resources
necessary to meet goals under school and local educational
agency improvement, corrective action, and restructuring plans
under section 1116.
``SEC. 1004. STATE ADMINISTRATION. <<NOTE: 20 USC 6304.>>
``(a) In General.--Except as provided in subsection (b), to carry
out administrative duties assigned under parts A, C, and D of this
title, each State may reserve the greater of--
``(1) 1 percent of the amounts received under such parts; or
``(2) $400,000 ($50,000 in the case of each outlying area).
``(b) Exception.--If the sum of the amounts appropriated for parts
A, C, and D of this title is equal to or greater than $14,000,000,000,
then the reservation described in subsection (a)(1) shall not exceed 1
percent of the amount the State would receive, if $14,000,000,000 were
allocated among the States for parts A, C, and D of this title.
``PART A--IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL
AGENCIES
``Subpart 1--Basic Program Requirements
``SEC. 1111. STATE PLANS. <<NOTE: 20 USC 6311.>>
``(a) Plans Required.--
``(1) In general.--For any State desiring to receive a grant
under this part, the State educational agency shall submit to
the Secretary a plan, developed by the State educational agency,
in consultation with local educational agencies, teachers,
principals, pupil services personnel, administrators (including
administrators of programs described in other parts of this
title), other staff, and parents, that satisfies the
requirements of this section and that is coordinated with other
programs under this Act, the Individuals with Disabilities
Education Act, the Carl D. Perkins Vocational and Technical
Education Act of 1998, the Head Start Act, the Adult Education
and Family Literacy Act, and the McKinney-Vento Homeless
Assistance Act.
``(2) Consolidated plan.--A State plan submitted under
paragraph (1) may be submitted as part of a consolidated plan
under section 9302.
``(b) Academic Standards, Academic Assessments, and
Accountability.--
``(1) Challenging academic standards.--
``(A) In general.--Each State plan shall demonstrate
that the State has adopted challenging academic content
standards and challenging student academic achievement
[[Page 115 STAT. 1445]]
standards that will be used by the State, its local
educational agencies, and its schools to carry out this
part, except that a State shall not be required to
submit such standards to the Secretary.
``(B) Same standards.--The academic standards
required by subparagraph (A) shall be the same academic
standards that the State applies to all schools and
children in the State.
``(C) Subjects.--The State shall have such academic
standards for all public elementary school and secondary
school children, including children served under this
part, in subjects determined by the State, but including
at least mathematics, reading or language arts, and
(beginning in the 2005-2006 school year) science, which
shall include the same knowledge, skills, and levels of
achievement expected of all children.
``(D) Challenging academic standards.--Standards
under this paragraph shall include--
``(i) challenging academic content standards
in academic subjects that--
``(I) specify what children are
expected to know and be able to do;
``(II) contain coherent and rigorous
content; and
``(III) encourage the teaching of
advanced skills; and
``(ii) challenging student academic
achievement standards that--
``(I) are aligned with the State's
academic content standards;
``(II) describe two levels of high
achievement (proficient and advanced)
that determine how well children are
mastering the material in the State
academic content standards; and
``(III) describe a third level of
achievement (basic) to provide complete
information about the progress of the
lower-achieving children toward
mastering the proficient and advanced
levels of achievement.
``(E) Information.--For the subjects in which
students will be served under this part, but for which a
State is not required by subparagraphs (A), (B), and (C)
to develop, and has not otherwise developed, such
academic standards, the State plan shall describe a
strategy for ensuring that students are taught the same
knowledge and skills in such subjects and held to the
same expectations as are all children.
``(F) Existing standards.--Nothing in this part
shall prohibit a State from revising, consistent with
this section, any standard adopted under this part
before or after the date of enactment of the No Child
Left Behind Act of 2001.
``(2) Accountability.--
``(A) In general.--Each State plan shall demonstrate
that the State has developed and is implementing a
single, statewide State accountability system that will
be effective in ensuring that all local educational
agencies, public
[[Page 115 STAT. 1446]]
elementary schools, and public secondary schools make
adequate yearly progress as defined under this
paragraph. Each State accountability system shall--
``(i) be based on the academic standards and
academic assessments adopted under paragraphs (1)
and (3), and other academic indicators consistent
with subparagraph (C)(vi) and (vii), and shall
take into account the achievement of all public
elementary school and secondary school students;
``(ii) be the same accountability system the
State uses for all public elementary schools and
secondary schools or all local educational
agencies in the State, except that public
elementary schools, secondary schools, and local
educational agencies not participating under this
part are not subject to the requirements of
section 1116; and
``(iii) include sanctions and rewards, such as
bonuses and recognition, the State will use to
hold local educational agencies and public
elementary schools and secondary schools
accountable for student achievement and for
ensuring that they make adequate yearly progress
in accordance with the State's definition under
subparagraphs (B) and (C).
``(B) Adequate yearly progress.--Each State plan
shall demonstrate, based on academic assessments
described in paragraph (3), and in accordance with this
paragraph, what constitutes adequate yearly progress of
the State, and of all public elementary schools,
secondary schools, and local educational agencies in the
State, toward enabling all public elementary school and
secondary school students to meet the State's student
academic achievement standards, while working toward the
goal of narrowing the achievement gaps in the State,
local educational agencies, and schools.
``(C) Definition.--`Adequate yearly progress' shall
be defined by the State in a manner that--
``(i) applies the same high standards of
academic achievement to all public elementary
school and secondary school students in the State;
``(ii) is statistically valid and reliable;
``(iii) results in continuous and substantial
academic improvement for all students;
``(iv) measures the progress of public
elementary schools, secondary schools and local
educational agencies and the State based primarily
on the academic assessments described in paragraph
(3);
``(v) includes separate measurable annual
objectives for continuous and substantial
improvement for each of the following:
``(I) The achievement of all public
elementary school and secondary school
students.
``(II) The achievement of--
``(aa) economically
disadvantaged students;
``(bb) students from major
racial and ethnic groups;
``(cc) students with
disabilities; and
[[Page 115 STAT. 1447]]
``(dd) students with limited
English proficiency;
except that disaggregation of data under
subclause (II) shall not be required in
a case in which the number of students
in a category is insufficient to yield
statistically reliable information or
the results would reveal personally
identifiable information about an
individual student;
``(vi) in accordance with subparagraph (D),
includes graduation rates for public secondary
school students (defined as the percentage of
students who graduate from secondary school with a
regular diploma in the standard number of years)
and at least one other academic indicator, as
determined by the State for all public elementary
school students; and
``(vii) in accordance with subparagraph (D),
at the State's discretion, may also include other
academic indicators, as determined by the State
for all public school students, measured
separately for each group described in clause (v),
such as achievement on additional State or locally
administered assessments, decreases in grade-to-
grade retention rates, attendance rates, and
changes in the percentages of students completing
gifted and talented, advanced placement, and
college preparatory courses.
``(D) Requirements for other indicators.--In
carrying out subparagraph (C)(vi) and (vii), the State--
``(i) shall ensure that the indicators
described in those provisions are valid and
reliable, and are consistent with relevant,
nationally recognized professional and technical
standards, if any; and
``(ii) except as provided in subparagraph
(I)(i), may not use those indicators to reduce the
number of, or change, the schools that would
otherwise be subject to school improvement,
corrective action, or restructuring under section
1116 if those additional indicators were not used,
but may use them to identify additional schools
for school improvement or in need of corrective
action or restructuring.
``(E) Starting point.--Each State, using data for
the 2001-2002 school year, shall establish the starting
point for measuring, under subparagraphs (G) and (H),
the percentage of students meeting or exceeding the
State's proficient level of academic achievement on the
State assessments under paragraph (3) and pursuant to
the timeline described in subparagraph (F). The starting
point shall be, at a minimum, based on the higher of the
percentage of students at the proficient level who are
in--
``(i) the State's lowest achieving group of
students described in subparagraph (C)(v)(II); or
``(ii) the school at the 20th percentile in
the State, based on enrollment, among all schools
ranked by the percentage of students at the
proficient level.
``(F) Timeline.--Each State shall establish a
timeline for adequate yearly progress. The timeline
shall ensure that not later than 12 years after the end
of the 2001-2002 school year, all students in each group
described
[[Page 115 STAT. 1448]]
in subparagraph (C)(v) will meet or exceed the State's
proficient level of academic achievement on the State
assessments under paragraph (3).
``(G) Measurable objectives.--Each State shall
establish statewide annual measurable objectives,
pursuant to subparagraph (C)(v), for meeting the
requirements of this paragraph, and which--
``(i) shall be set separately for the
assessments of mathematics and reading or language
arts under subsection (a)(3);
``(ii) shall be the same for all schools and
local educational agencies in the State;
``(iii) shall identify a single minimum
percentage of students who are required to meet or
exceed the proficient level on the academic
assessments that applies separately to each group
of students described in subparagraph (C)(v);
``(iv) shall ensure that all students will
meet or exceed the State's proficient level of
academic achievement on the State assessments
within the State's timeline under subparagraph
(F); and
``(v) may be the same for more than 1 year,
subject to the requirements of subparagraph (H).
``(H) Intermediate goals for annual yearly
progress.--Each State shall establish intermediate goals
for meeting the requirements, including the measurable
objectives in subparagraph (G), of this paragraph and
that shall--
``(i) increase in equal increments over the
period covered by the State's timeline under
subparagraph (F);
``(ii) provide for the first increase to occur
in not more than 2 years; and
``(iii) provide for each following increase to
occur in not more than 3 years.
``(I) Annual improvement for schools.--Each year,
for a school to make adequate yearly progress under this
paragraph--
``(i) each group of students described in
subparagraph (C)(v) must meet or exceed the
objectives set by the State under subparagraph
(G), except that if any group described in
subparagraph (C)(v) does not meet those objectives
in any particular year, the school shall be
considered to have made adequate yearly progress
if the percentage of students in that group who
did not meet or exceed the proficient level of
academic achievement on the State assessments
under paragraph (3) for that year decreased by 10
percent of that percentage from the preceding
school year and that group made progress on one or
more of the academic indicators described in
subparagraph (C)(vi) or (vii); and
``(ii) not less than 95 percent of each group
of students described in subparagraph (C)(v) who
are enrolled in the school are required to take
the assessments, consistent with paragraph
(3)(C)(xi) and with
[[Page 115 STAT. 1449]]
accommodations, guidelines, and alternative
assessments provided in the same manner as those
provided under section 612(a)(17)(A) of the
Individuals with Disabilities Education Act and
paragraph (3), on which adequate yearly progress
is based (except that the 95 percent requirement
described in this clause shall not apply in a case
in which the number of students in a category is
insufficient to yield statistically reliable
information or the results would reveal personally
identifiable information about an individual
student).
``(J) Uniform averaging procedure.--For the purpose
of determining whether schools are making adequate
yearly progress, the State may establish a uniform
procedure for averaging data which includes one or more
of the following:
``(i) The State may average data from the
school year for which the determination is made
with data from one or two school years immediately
preceding that school year.
``(ii) Until the assessments described in
paragraph (3) are administered in such manner and
time to allow for the implementation of the
uniform procedure for averaging data described in
clause (i), the State may use the academic
assessments that were required under paragraph (3)
as that paragraph was in effect on the day
preceding the date of enactment of the No Child
Left Behind Act of 2001, provided that nothing in
this clause shall be construed to undermine or
delay the determination of adequate yearly
progress, the requirements of section 1116, or the
implementation of assessments under this section.
``(iii) The State may use data across grades
in a school.
``(K) Accountability for charter schools.--The
accountability provisions under this Act shall be
overseen for charter schools in accordance with State
charter school law.
``(3) Academic assessments.--
``(A) In general.--Each State plan shall demonstrate
that the State educational agency, in consultation with
local educational agencies, has implemented a set of
high-quality, yearly student academic assessments that
include, at a minimum, academic assessments in
mathematics, reading or language arts, and science that
will be used as the primary means of determining the
yearly performance of the State and of each local
educational agency and school in the State in enabling
all children to meet the State's challenging student
academic achievement standards, except that no State
shall be required to meet the requirements of this part
relating to science assessments until the beginning of
the 2007-2008 school year.
``(B) Use of assessments.--Each State educational
agency may incorporate the data from the assessments
under this paragraph into a State-developed longitudinal
data system that links student test scores, length of
enrollment, and graduation records over time.
``(C) Requirements.--Such assessments shall--
[[Page 115 STAT. 1450]]
``(i) be the same academic assessments used to
measure the achievement of all children;
``(ii) be aligned with the State's challenging
academic content and student academic achievement
standards, and provide coherent information about
student attainment of such standards;
``(iii) be used for purposes for which such
assessments are valid and reliable, and be
consistent with relevant, nationally recognized
professional and technical standards;
``(iv) be used only if the State educational
agency provides to the Secretary evidence from the
test publisher or other relevant sources that the
assessments used are of adequate technical quality
for each purpose required under this Act and are
consistent with the requirements of this section,
and such evidence is made public by the Secretary
upon request;
``(v)(I) except as otherwise provided for
grades 3 through 8 under clause vii, measure the
proficiency of students in, at a minimum,
mathematics and reading or language arts, and be
administered not less than once during--
``(aa) grades 3 through 5;
``(bb) grades 6 through 9; and
``(cc) grades 10 through 12;
``(II) beginning not later than school year
2007-2008, measure the proficiency of all students
in science and be administered not less than one
time during--
``(aa) grades 3 through 5;
``(bb) grades 6 through 9; and
``(cc) grades 10 through 12;
``(vi) involve multiple up-to-date measures of
student academic achievement, including measures
that assess higher-order thinking skills and
understanding;
``(vii) <<NOTE: Deadline.>> beginning not
later than school year 2005-2006, measure the
achievement of students against the challenging
State academic content and student academic
achievement standards in each of grades 3 through
8 in, at a minimum, mathematics, and reading or
language arts, except that the Secretary may
provide the State 1 additional year if the State
demonstrates that exceptional or uncontrollable
circumstances, such as a natural disaster or a
precipitous and unforeseen decline in the
financial resources of the State, prevented full
implementation of the academic assessments by that
deadline and that the State will complete
implementation within the additional 1-year
period;
``(viii) at the discretion of the State,
measure the proficiency of students in academic
subjects not described in clauses (v), (vi), (vii)
in which the State has adopted challenging
academic content and academic achievement
standards;
``(ix) provide for--
``(I) the participation in such
assessments of all students;
``(II) the reasonable adaptations
and accommodations for students with
disabilities (as defined
[[Page 115 STAT. 1451]]
under section 602(3) of the Individuals
with Disabilities Education Act)
necessary to measure the academic
achievement of such students relative to
State academic content and State student
academic achievement standards; and
``(III) the inclusion of limited
English proficient students, who shall
be assessed in a valid and reliable
manner and provided reasonable
accommodations on assessments
administered to such students under this
paragraph, including, to the extent
practicable, assessments in the language
and form most likely to yield accurate
data on what such students know and can
do in academic content areas, until such
students have achieved English language
proficiency as determined under
paragraph (7);
``(x) notwithstanding subclause (III), the
academic assessment (using tests written in
English) of reading or language arts of any
student who has attended school in the United
States (not including Puerto Rico) for three or
more consecutive school years, except that if the
local educational agency determines, on a case-by-
case individual basis, that academic assessments
in another language or form would likely yield
more accurate and reliable information on what
such student knows and can do, the local
educational agency may make a determination to
assess such student in the appropriate language
other than English for a period that does not
exceed two additional consecutive years, provided
that such student has not yet reached a level of
English language proficiency sufficient to yield
valid and reliable information on what such
student knows and can do on tests (written in
English) of reading or language arts;
``(xi) include students who have attended
schools in a local educational agency for a full
academic year but have not attended a single
school for a full academic year, except that the
performance of students who have attended more
than 1 school in the local educational agency in
any academic year shall be used only in
determining the progress of the local educational
agency;
``(xii) produce individual student
interpretive, descriptive, and diagnostic reports,
consistent with clause (iii) that allow parents,
teachers, and principals to understand and address
the specific academic needs of students, and
include information regarding achievement on
academic assessments aligned with State academic
achievement standards, and that are provided to
parents, teachers, and principals, as soon as is
practicably possible after the assessment is
given, in an understandable and uniform format,
and to the extent practicable, in a language that
parents can understand;
``(xiii) enable results to be disaggregated
within each State, local educational agency, and
school by gender, by each major racial and ethnic
group, by
[[Page 115 STAT. 1452]]
English proficiency status, by migrant status, by
students with disabilities as compared to
nondisabled students, and by economically
disadvantaged students as compared to students who
are not economically disadvantaged, except that,
in the case of a local educational agency or a
school, such disaggregation shall not be required
in a case in which the number of students in a
category is insufficient to yield statistically
reliable information or the results would reveal
personally identifiable information about an
individual student;
``(xiv) be consistent with widely accepted
professional testing standards, objectively
measure academic achievement, knowledge, and
skills, and be tests that do not evaluate or
assess personal or family beliefs and attitudes,
or publicly disclose personally identifiable
information; and
``(xv) enable itemized score analyses to be
produced and reported, consistent with clause
(iii), to local educational agencies and schools,
so that parents, teachers, principals, and
administrators can interpret and address the
specific academic needs of students as indicated
by the students' achievement on assessment items.
``(D) Deferral.--A State may defer the commencement,
or suspend the administration, but not cease the
development, of the assessments described in this
paragraph, that were not required prior to the date of
enactment of the No Child Left Behind Act of 2001, for 1
year for each year for which the amount appropriated for
grants under section 6113(a)(2) is less than--
``(i) $370,000,000 for fiscal year 2002;
``(ii) $380,000,000 for fiscal year 2003;
``(iii) $390,000,000 for fiscal year 2004; and
``(iv) $400,000,000 for fiscal years 2005
through 2007.
``(4) Special rule.--Academic assessment measures in
addition to those in paragraph (3) that do not meet the
requirements of such paragraph may be included in the assessment
under paragraph (3) as additional measures, but may not be used
in lieu of the academic assessments required under paragraph
(3). Such additional assessment measures may not be used to
reduce the number of or change, the schools that would otherwise
be subject to school improvement, corrective action, or
restructuring under section 1116 if such additional indicators
were not used, but may be used to identify additional schools
for school improvement or in need of corrective action or
restructuring except as provided in paragraph (2)(I)(i).
``(5) State authority.--If a State educational agency
provides evidence, which is satisfactory to the Secretary, that
neither the State educational agency nor any other State
government official, agency, or entity has sufficient authority,
under State law, to adopt curriculum content and student
academic achievement standards, and academic assessments aligned
with such academic standards, which will be applicable to all
students enrolled in the State's public elementary schools
[[Page 115 STAT. 1453]]
and secondary schools, then the State educational agency may
meet the requirements of this subsection by--
``(A) adopting academic standards and academic
assessments that meet the requirements of this
subsection, on a statewide basis, and limiting their
applicability to students served under this part; or
``(B) adopting and implementing policies that ensure
that each local educational agency in the State that
receives grants under this part will adopt curriculum
content and student academic achievement standards, and
academic assessments aligned with such standards,
which--
``(i) meet all of the criteria in this
subsection and any regulations regarding such
standards and assessments that the Secretary may
publish; and
``(ii) are applicable to all students served
by each such local educational agency.
``(6) Language assessments.--Each State plan shall identify
the languages other than English that are present in the
participating student population and indicate the languages for
which yearly student academic assessments are not available and
are needed. The State shall make every effort to develop such
assessments and may request assistance from the Secretary if
linguistically accessible academic assessment measures are
needed. Upon request, the Secretary shall assist with the
identification of appropriate academic assessment measures in
the needed languages, but shall not mandate a specific academic
assessment or mode of instruction.
``(7) Academic assessments of english language
proficiency. <<NOTE: Deadline.>> --Each State plan shall
demonstrate that local educational agencies in the State will,
beginning not later than school year 2002-2003, provide for an
annual assessment of English proficiency (measuring students'
oral language, reading, and writing skills in English) of all
students with limited English proficiency in the schools served
by the State educational agency, except that the Secretary may
provide the State 1 additional year if the State demonstrates
that exceptional or uncontrollable circumstances, such as a
natural disaster or a precipitous and unforeseen decline in the
financial resources of the State, prevented full implementation
of this paragraph by that deadline and that the State will
complete implementation within the additional 1-year period.
``(8) Requirement.--Each State plan shall describe--
``(A) how the State educational agency will assist
each local educational agency and school affected by the
State plan to develop the capacity to comply with each
of the requirements of sections 1112(c)(1)(D), 1114(b),
and 1115(c) that is applicable to such agency or school;
``(B) how the State educational agency will assist
each local educational agency and school affected by the
State plan to provide additional educational assistance
to individual students assessed as needing help to
achieve the State's challenging academic achievement
standards;
``(C) the specific steps the State educational
agency will take to ensure that both schoolwide programs
and targeted assistance schools provide instruction by
highly qualified instructional staff as required by
sections 1114(b)(1)(C) and 1115(c)(1)(E), including
steps that the
[[Page 115 STAT. 1454]]
State educational agency will take to ensure that poor
and minority children are not taught at higher rates
than other children by inexperienced, unqualified, or
out-of-field teachers, and the measures that the State
educational agency will use to evaluate and publicly
report the progress of the State educational agency with
respect to such steps;
``(D) an assurance that the State educational agency
will assist local educational agencies in developing or
identifying high-quality effective curricula aligned
with State academic achievement standards and how the
State educational agency will disseminate such curricula
to each local educational agency and school within the
State; and
``(E) such other factors the State educational
agency determines appropriate to provide students an
opportunity to achieve the knowledge and skills
described in the challenging academic content standards
adopted by the State.
``(9) Factors affecting student achievement.--Each State
plan shall include an assurance that the State educational
agency will coordinate and collaborate, to the extent feasible
and necessary as determined by the State educational agency,
with agencies providing services to children, youth, and
families, with respect to local educational agencies within the
State that are identified under section 1116 and that request
assistance with addressing major factors that have significantly
affected the academic achievement of students in the local
educational agency or schools served by such agency.
``(10) Use of academic assessment results to improve student
academic achievement.--Each State plan shall describe how the
State educational agency will ensure that the results of the
State assessments described in paragraph (3)--
``(A) will be promptly provided to local educational
agencies, schools, and teachers in a manner that is
clear and easy to understand, but not later than before
the beginning of the next school year; and
``(B) be used by those local educational agencies,
schools, and teachers to improve the educational
achievement of individual students.
``(c) Other Provisions To Support Teaching and Learning.--Each State
plan shall contain assurances that--
``(1) <<NOTE: Deadline.>> the State educational agency will
meet the requirements of subsection (h)(1) and, beginning with
the 2002-2003 school year, will produce the annual State report
cards described in such subsection, except that the Secretary
may provide the State educational agency 1 additional year if
the State educational agency demonstrates that exceptional or
uncontrollable circumstances, such as a natural disaster or a
precipitous and unforeseen decline in the financial resources of
the State, prevented full implementation of this paragraph by
that deadline and that the State will complete implementation
within the additional 1-year period;
``(2) <<NOTE: Deadline.>> the State will, beginning in
school year 2002-2003, participate in biennial State academic
assessments of 4th and 8th grade reading and mathematics under
the National Assessment of Educational Progress carried out
under section 411(b)(2) of the National Education Statistics Act
of 1994 if the Secretary pays the costs of administering such
assessments;
[[Page 115 STAT. 1455]]
``(3) the State educational agency, in consultation with the
Governor, will include, as a component of the State plan, a plan
to carry out the responsibilities of the State under sections
1116 and 1117, including carrying out the State educational
agency's statewide system of technical assistance and support
for local educational agencies;
``(4) the State educational agency will work with other
agencies, including educational service agencies or other local
consortia, and institutions to provide technical assistance to
local educational agencies and schools, including technical
assistance in providing professional development under section
1119, technical assistance under section 1117, and technical
assistance relating to parental involvement under section 1118;
``(5)(A) where educational service agencies exist, the State
educational agency will consider providing professional
development and technical assistance through such agencies; and
``(B) where educational service agencies do not exist, the
State educational agency will consider providing professional
development and technical assistance through other cooperative
agreements such as through a consortium of local educational
agencies;
``(6) <<NOTE: Notification.>> the State educational agency
will notify local educational agencies and the public of the
content and student academic achievement standards and academic
assessments developed under this section, and of the authority
to operate schoolwide programs, and will fulfill the State
educational agency's responsibilities regarding local
educational agency improvement and school improvement under
section 1116, including such corrective actions as are
necessary;
``(7) the State educational agency will provide the least
restrictive and burdensome regulations for local educational
agencies and individual schools participating in a program
assisted under this part;
``(8) the State educational agency will inform the Secretary
and the public of how Federal laws, if at all, hinder the
ability of States to hold local educational agencies and schools
accountable for student academic achievement;
``(9) the State educational agency will encourage schools to
consolidate funds from other Federal, State, and local sources
for schoolwide reform in schoolwide programs under section 1114;
``(10) the State educational agency will modify or eliminate
State fiscal and accounting barriers so that schools can easily
consolidate funds from other Federal, State, and local sources
for schoolwide programs under section 1114;
``(11) the State educational agency has involved the
committee of practitioners established under section 1903(b) in
developing the plan and monitoring its implementation;
``(12) the State educational agency will inform local
educational agencies in the State of the local educational
agency's authority to transfer funds under title VI, to obtain
waivers under part D of title IX, and, if the State is an Ed-
Flex Partnership State, to obtain waivers under the Education
Flexibility Partnership Act of 1999;
``(13) the State educational agency will coordinate
activities funded under this part with other Federal activities
as appropriate; and
[[Page 115 STAT. 1456]]
``(14) the State educational agency will encourage local
educational agencies and individual schools participating in a
program assisted under this part to offer family literacy
services (using funds under this part), if the agency or school
determines that a substantial number of students served under
this part by the agency or school have parents who do not have a
secondary school diploma or its recognized equivalent or who
have low levels of literacy.
``(d) Parental Involvement.--Each State plan shall describe how the
State educational agency will support the collection and dissemination
to local educational agencies and schools of effective parental
involvement practices. Such practices shall--
``(1) be based on the most current research that meets the
highest professional and technical standards, on effective
parental involvement that fosters achievement to high standards
for all children; and
``(2) be geared toward lowering barriers to greater
participation by parents in school planning, review, and
improvement experienced.
``(e) Peer Review and Secretarial Approval.--
``(1) Secretarial duties.--The Secretary shall--
``(A) <<NOTE: Establishment.>> establish a peer-
review process to assist in the review of State plans;
``(B) appoint individuals to the peer-review process
who are representative of parents, teachers, State
educational agencies, and local educational agencies,
and who are familiar with educational standards,
assessments, accountability, the needs of low-performing
schools, and other educational needs of students;
``(C) <<NOTE: Deadline.>> approve a State plan
within 120 days of its submission unless the Secretary
determines that the plan does not meet the requirements
of this section;
``(D) if the Secretary determines that the State
plan does not meet the requirements of subsection (a),
(b), or (c), immediately notify the State of such
determination and the reasons for such determination;
``(E) not decline to approve a State's plan before--
``(i) offering the State an opportunity to
revise its plan;
``(ii) providing technical assistance in order
to assist the State to meet the requirements of
subsections (a), (b), and (c); and
``(iii) providing a hearing; and
``(F) have the authority to disapprove a State plan
for not meeting the requirements of this part, but shall
not have the authority to require a State, as a
condition of approval of the State plan, to include in,
or delete from, such plan one or more specific elements
of the State's academic content standards or to use
specific academic assessment instruments or items.
``(2) State revisions.--A State plan shall be revised by the
State educational agency if it is necessary to satisfy the
requirements of this section.
``(f) Duration of the Plan.--
``(1) In general.--Each State plan shall--
``(A) remain in effect for the duration of the
State's participation under this part; and
[[Page 115 STAT. 1457]]
``(B) be periodically reviewed and revised as
necessary by the State educational agency to reflect
changes in the State's strategies and programs under
this part.
``(2) Additional information.--If significant changes are
made to a State's plan, such as the adoption of new State
academic content standards and State student achievement
standards, new academic assessments, or a new definition of
adequate yearly progress, such information shall be submitted to
the Secretary.
``(g) Penalties.--
``(1) Failure to meet deadlines enacted in 1994.--
``(A) In general.--If a State fails to meet the
deadlines established by the Improving America's Schools
Act of 1994 (or under any waiver granted by the
Secretary or under any compliance agreement with the
Secretary) for demonstrating that the State has in place
challenging academic content standards and student
achievement standards, and a system for measuring and
monitoring adequate yearly progress, the Secretary shall
withhold 25 percent of the funds that would otherwise be
available to the State for State administration and
activities under this part in each year until the
Secretary determines that the State meets those
requirements.
``(B) No extension.--Notwithstanding any other
provision of law, 90 days after the date of enactment of
the No Child Left Behind Act of 2001 the Secretary shall
not grant any additional waivers of, or enter into any
additional compliance agreements to extend, the
deadlines described in subparagraph (A) for any State.
``(2) Failure to meet requirements enacted in 2001.--If a
State fails to meet any of the requirements of this section,
other than the requirements described in paragraph (1), then the
Secretary may withhold funds for State administration under this
part until the Secretary determines that the State has fulfilled
those requirements.
``(h) Reports.--
``(1) Annual state report card.--
``(A) <<NOTE: Deadline.>> In general.--Not later
than the beginning of the 2002-2003 school year, unless
the State has received a 1-year extension pursuant to
subsection (c)(1), a State that receives assistance
under this part shall prepare and disseminate an annual
State report card.
``(B) Implementation.--The State report card shall
be--
``(i) concise; and
``(ii) presented in an understandable and
uniform format and, to the extent practicable,
provided in a language that the parents can
understand.
``(C) Required information.--The State shall include
in its annual State report card--
``(i) information, in the aggregate, on
student achievement at each proficiency level on
the State academic assessments described in
subsection (b)(3) (disaggregated by race,
ethnicity, gender, disability status, migrant
status, English proficiency, and status as
economically disadvantaged, except that such
disaggregation shall not be required in a case in
which
[[Page 115 STAT. 1458]]
the number of students in a category is
insufficient to yield statistically reliable
information or the results would reveal personally
identifiable information about an individual
student);
``(ii) information that provides a comparison
between the actual achievement levels of each
group of students described in subsection
(b)(2)(C)(v) and the State's annual measurable
objectives for each such group of students on each
of the academic assessments required under this
part;
``(iii) the percentage of students not tested
(disaggregated by the same categories and subject
to the same exception described in clause (i));
``(iv) the most recent 2-year trend in student
achievement in each subject area, and for each
grade level, for which assessments under this
section are required;
``(v) aggregate information on any other
indicators used by the State to determine the
adequate yearly progress of students in achieving
State academic achievement standards;
``(vi) graduation rates for secondary school
students consistent with subsection (b)(2)(C)(vi);
``(vii) information on the performance of
local educational agencies in the State regarding
making adequate yearly progress, including the
number and names of each school identified for
school improvement under section 1116; and
``(viii) the professional qualifications of
teachers in the State, the percentage of such
teachers teaching with emergency or provisional
credentials, and the percentage of classes in the
State not taught by highly qualified teachers, in
the aggregate and disaggregated by high-poverty
compared to low-poverty schools which, for the
purpose of this clause, means schools in the top
quartile of poverty and the bottom quartile of
poverty in the State.
``(D) Optional information.--The State may include
in its annual State report card such other information
as the State believes will best provide parents,
students, and other members of the public with
information regarding the progress of each of the
State's public elementary schools and public secondary
schools. Such information may include information
regarding--
``(i) school attendance rates;
``(ii) average class size in each grade;
``(iii) academic achievement and gains in
English proficiency of limited English proficient
students;
``(iv) the incidence of school violence, drug
abuse, alcohol abuse, student suspensions, and
student expulsions;
``(v) the extent and type of parental
involvement in the schools;
``(vi) the percentage of students completing
advanced placement courses, and the rate of
passing of advanced placement tests; and
[[Page 115 STAT. 1459]]
``(vii) a clear and concise description of the
State's accountability system, including a
description of the criteria by which the State
evaluates school performance, and the criteria
that the State has established, consistent with
subsection (b)(2), to determine the status of
schools regarding school improvement, corrective
action, and restructuring.
``(2) Annual local educational agency report cards.--
``(A) Report cards.--
``(i) <<NOTE: Deadline.>> In general.--Not
later than the beginning of the 2002-2003 school
year, a local educational agency that receives
assistance under this part shall prepare and
disseminate an annual local educational agency
report card, except that the State educational
agency may provide the local educational agency 1
additional year if the local educational agency
demonstrates that exceptional or uncontrollable
circumstances, such as a natural disaster or a
precipitous and unforeseen decline in the
financial resources of the local educational
agency, prevented full implementation of this
paragraph by that deadline and that the local
educational agency will complete implementation
within the additional 1-year period.
``(ii) Special rule.--If a State educational
agency has received an extension pursuant to
subsection (c)(1), then a local educational agency
within that State shall not be required to include
the information required under paragraph (1)(C) in
such report card during such extension.
``(B) Minimum requirements.--The State educational
agency shall ensure that each local educational agency
collects appropriate data and includes in the local
educational agency's annual report the information
described in paragraph (1)(C) as applied to the local
educational agency and each school served by the local
educational agency, and--
``(i) in the case of a local educational
agency--
``(I) the number and percentage of
schools identified for school
improvement under section 1116(c) and
how long the schools have been so
identified; and
``(II) information that shows how
students served by the local educational
agency achieved on the statewide
academic assessment compared to students
in the State as a whole; and
``(ii) in the case of a school--
``(I) whether the school has been
identified for school improvement; and
``(II) information that shows how
the school's students achievement on the
statewide academic assessments and other
indicators of adequate yearly progress
compared to students in the local
educational agency and the State as a
whole.
``(C) Other information.--A local educational agency
may include in its annual local educational agency
report card any other appropriate information, whether
or not
[[Page 115 STAT. 1460]]
such information is included in the annual State report
card.
``(D) Data.--A local educational agency or school
shall only include in its annual local educational
agency report card data that are sufficient to yield
statistically reliable information, as determined by the
State, and that do not reveal personally identifiable
information about an individual student.
``(E) <<NOTE: Deadline.>> Public dissemination.--
The local educational agency shall, not later than the
beginning of the 2002-2003 school year, unless the local
educational agency has received a 1-year extension
pursuant to subparagraph (A), publicly disseminate the
information described in this paragraph to all schools
in the school district served by the local educational
agency and to all parents of students attending those
schools in an understandable and uniform format and, to
the extent practicable, provided in a language that the
parents can understand, and make the information widely
available through public means, such as posting on the
Internet, distribution to the media, and distribution
through public agencies, except that if a local
educational agency issues a report card for all
students, the local educational agency may include the
information under this section as part of such report.
``(3) Preexisting report cards.--A State educational agency
or local educational agency that was providing public report
cards on the performance of students, schools, local educational
agencies, or the State prior to the enactment of the No Child
Left Behind Act of 2001 may use those report cards for the
purpose of this subsection, so long as any such report card is
modified, as may be needed, to contain the information required
by this subsection.
``(4) <<NOTE: Deadlines.>> Annual state report to the
secretary.--Each State educational agency receiving assistance
under this part shall report annually to the Secretary, and make
widely available within the State--
``(A) beginning with school year 2002-2003,
information on the State's progress in developing and
implementing the academic assessments described in
subsection (b)(3);
``(B) beginning not later than school year 2002-
2003, information on the achievement of students on the
academic assessments required by subsection (b)(3),
including the disaggregated results for the categories
of students identified in subsection (b)(2)(C)(v);
``(C) in any year before the State begins to provide
the information described in subparagraph (B),
information on the results of student academic
assessments (including disaggregated results) required
under this section;
``(D) beginning not later than school year 2002-
2003, unless the State has received an extension
pursuant to subsection (c)(1), information on the
acquisition of English proficiency by children with
limited English proficiency;
``(E) the number and names of each school identified
for school improvement under section 1116(c), the reason
why each school was so identified, and the measures
taken to address the achievement problems of such
schools;
[[Page 115 STAT. 1461]]
``(F) the number of students and schools that
participated in public school choice and supplemental
service programs and activities under this title; and
``(G) beginning not later than the 2002-2003 school
year, information on the quality of teachers and the
percentage of classes being taught by highly qualified
teachers in the State, local educational agency, and
school.
``(5) Report to congress.--The Secretary shall transmit
annually to the Committee on Education and the Workforce of the
House of Representatives and the Committee on Health, Education,
Labor, and Pensions of the Senate a report that provides
national and State-level data on the information collected under
paragraph (4).
``(6) Parents right-to-know.--
``(A) <<NOTE: Notification.>> Qualifications.--At
the beginning of each school year, a local educational
agency that receives funds under this part shall notify
the parents of each student attending any school
receiving funds under this part that the parents may
request, and the agency will provide the parents on
request (and in a timely manner), information regarding
the professional qualifications of the student's
classroom teachers, including, at a minimum, the
following:
``(i) Whether the teacher has met State
qualification and licensing criteria for the grade
levels and subject areas in which the teacher
provides instruction.
``(ii) Whether the teacher is teaching under
emergency or other provisional status through
which State qualification or licensing criteria
have been waived.
``(iii) The baccalaureate degree major of the
teacher and any other graduate certification or
degree held by the teacher, and the field of
discipline of the certification or degree.
``(iv) Whether the child is provided services
by paraprofessionals and, if so, their
qualifications.
``(B) Additional information.--In addition to the
information that parents may request under subparagraph
(A), a school that receives funds under this part shall
provide to each individual parent--
``(i) information on the level of achievement
of the parent's child in each of the State
academic assessments as required under this part;
and
``(ii) timely notice that the parent's child
has been assigned, or has been taught for four or
more consecutive weeks by, a teacher who is not
highly qualified.
``(C) Format.--The notice and information provided
to parents under this paragraph shall be in an
understandable and uniform format and, to the extent
practicable, provided in a language that the parents can
understand.
``(i) Privacy.--Information collected under this section shall be
collected and disseminated in a manner that protects the privacy of
individuals.
``(j) Technical Assistance.--The Secretary shall provide a State
educational agency, at the State educational agency's request, technical
assistance in meeting the requirements of this section, including the
provision of advice by experts in the development
[[Page 115 STAT. 1462]]
of high-quality academic assessments, the setting of State standards,
the development of measures of adequate yearly progress that are valid
and reliable, and other relevant areas.
``(k) Voluntary Partnerships.--A State may enter into a voluntary
partnership with another State to develop and implement the academic
assessments and standards required under this section.
``(l) Construction.--Nothing in this part shall be construed to
prescribe the use of the academic assessments described in this part for
student promotion or graduation purposes.
``(m) <<NOTE: Applicability.>> Special Rule With Respect to Bureau-
Funded Schools.--In determining the assessments to be used by each
operated or funded by BIA school receiving funds under this part, the
following shall apply:
``(1) Each such school that is accredited by the State in
which it is operating shall use the assessments the State has
developed and implemented to meet the requirements of this
section, or such other appropriate assessment as approved by the
Secretary of the Interior.
``(2) Each such school that is accredited by a regional
accrediting organization shall adopt an appropriate assessment,
in consultation with and with the approval of, the Secretary of
the Interior and consistent with assessments adopted by other
schools in the same State or region, that meets the requirements
of this section.
``(3) Each such school that is accredited by a tribal
accrediting agency or tribal division of education shall use an
assessment developed by such agency or division, except that the
Secretary of the Interior shall ensure that such assessment
meets the requirements of this section.
``SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS. <<NOTE: 20 USC 6312.>>
``(a) Plans Required.--
``(1) Subgrants.--A local educational agency may receive a
subgrant under this part for any fiscal year only if such agency
has on file with the State educational agency a plan, approved
by the State educational agency, that is coordinated with other
programs under this Act, the Individuals with Disabilities
Education Act, the Carl D. Perkins Vocational and Technical
Education Act of 1998, the McKinney-Vento Homeless Assistance
Act, and other Acts, as appropriate.
``(2) Consolidated application.--The plan may be submitted
as part of a consolidated application under section 9305.
``(b) Plan Provisions.--
``(1) In general.--In order to help low-achieving children
meet challenging achievement academic standards, each local
educational agency plan shall include--
``(A) a description of high-quality student academic
assessments, if any, that are in addition to the
academic assessments described in the State plan under
section 1111(b)(3), that the local educational agency
and schools served under this part will use--
``(i) to determine the success of children
served under this part in meeting the State
student academic achievement standards, and to
provide information to teachers, parents, and
students on the progress being made toward meeting
the State student academic
[[Page 115 STAT. 1463]]
achievement standards described in section
1111(b)(1)(D)(ii);
``(ii) to assist in diagnosis, teaching, and
learning in the classroom in ways that best enable
low-achieving children served under this part to
meet State student achievement academic standards
and do well in the local curriculum;
``(iii) to determine what revisions are needed
to projects under this part so that such children
meet the State student academic achievement
standards; and
``(iv) to identify effectively students who
may be at risk for reading failure or who are
having difficulty reading, through the use of
screening, diagnostic, and classroom-based
instructional reading assessments, as defined
under section 1208;
``(B) at the local educational agency's discretion,
a description of any other indicators that will be used
in addition to the academic indicators described in
section 1111 for the uses described in such section;
``(C) a description of how the local educational
agency will provide additional educational assistance to
individual students assessed as needing help in meeting
the State's challenging student academic achievement
standards;
``(D) a description of the strategy the local
educational agency will use to coordinate programs under
this part with programs under title II to provide
professional development for teachers and principals,
and, if appropriate, pupil services personnel,
administrators, parents and other staff, including local
educational agency level staff in accordance with
sections 1118 and 1119;
``(E) a description of how the local educational
agency will coordinate and integrate services provided
under this part with other educational services at the
local educational agency or individual school level,
such as--
``(i) Even Start, Head Start, Reading First,
Early Reading First, and other preschool programs,
including plans for the transition of participants
in such programs to local elementary school
programs; and
``(ii) services for children with limited
English proficiency, children with disabilities,
migratory children, neglected or delinquent youth,
Indian children served under part A of title VII,
homeless children, and immigrant children in order
to increase program effectiveness, eliminate
duplication, and reduce fragmentation of the
instructional program;
``(F) an assurance that the local educational agency
will participate, if selected, in the State National
Assessment of Educational Progress in 4th and 8th grade
reading and mathematics carried out under section
411(b)(2) of the National Education Statistics Act of
1994;
``(G) a description of the poverty criteria that
will be used to select school attendance areas under
section 1113;
``(H) a description of how teachers, in consultation
with parents, administrators, and pupil services
personnel, in targeted assistance schools under section
1115, will identify
[[Page 115 STAT. 1464]]
the eligible children most in need of services under
this part;
``(I) a general description of the nature of the
programs to be conducted by such agency's schools under
sections 1114 and 1115 and, where appropriate,
educational services outside such schools for children
living in local institutions for neglected or delinquent
children, and for neglected and delinquent children in
community day school programs;
``(J) a description of how the local educational
agency will ensure that migratory children and formerly
migratory children who are eligible to receive services
under this part are selected to receive such services on
the same basis as other children who are selected to
receive services under this part;
``(K) if appropriate, a description of how the local
educational agency will use funds under this part to
support preschool programs for children, particularly
children participating in Early Reading First, or in a
Head Start or Even Start program, which services may be
provided directly by the local educational agency or
through a subcontract with the local Head Start agency
designated by the Secretary of Health and Human Services
under section 641 of the Head Start Act, or an agency
operating an Even Start program, an Early Reading First
program, or another comparable public early childhood
development program;
``(L) a description of the actions the local
educational agency will take to assist its low-achieving
schools identified under section 1116 as in need of
improvement;
``(M) a description of the actions the local
educational agency will take to implement public school
choice and supplemental services, consistent with the
requirements of section 1116;
``(N) a description of how the local educational
agency will meet the requirements of section 1119;
``(O) a description of the services the local
educational agency will provide homeless children,
including services provided with funds reserved under
section 1113(c)(3)(A);
``(P) a description of the strategy the local
educational agency will use to implement effective
parental involvement under section 1118; and
``(Q) where appropriate, a description of how the
local educational agency will use funds under this part
to support after school (including before school and
summer school) and school-year extension programs.
``(2) Exception.--The academic assessments and indicators
described in subparagraphs (A) and (B) of paragraph (1) shall
not be used--
``(A) in lieu of the academic assessments required
under section 1111(b)(3) and other State academic
indicators under section 1111(b)(2); or
``(B) to reduce the number of, or change which,
schools would otherwise be subject to school
improvement, corrective action, or restructuring under
section 1116, if such additional assessments or
indicators described in such subparagraphs were not
used, but such assessments and indicators may be used to
identify additional schools for
[[Page 115 STAT. 1465]]
school improvement or in need of corrective action or
restructuring.
``(c) Assurances.--
``(1) In general.--Each local educational agency plan shall
provide assurances that the local educational agency will--
``(A) inform eligible schools and parents of
schoolwide program authority and the ability of such
schools to consolidate funds from Federal, State, and
local sources;
``(B) provide technical assistance and support to
schoolwide programs;
``(C) work in consultation with schools as the
schools develop the schools' plans pursuant to section
1114 and assist schools as the schools implement such
plans or undertake activities pursuant to section 1115
so that each school can make adequate yearly progress
toward meeting the State student academic achievement
standards;
``(D) fulfill such agency's school improvement
responsibilities under section 1116, including taking
actions under paragraphs (7) and (8) of section 1116(b);
``(E) provide services to eligible children
attending private elementary schools and secondary
schools in accordance with section 1120, and timely and
meaningful consultation with private school officials
regarding such services;
``(F) take into account the experience of model
programs for the educationally disadvantaged, and the
findings of relevant scientifically based research
indicating that services may be most effective if
focused on students in the earliest grades at schools
that receive funds under this part;
``(G) in the case of a local educational agency that
chooses to use funds under this part to provide early
childhood development services to low-income children
below the age of compulsory school attendance, ensure
that such services comply with the performance standards
established under section 641A(a) of the Head Start Act;
``(H) work in consultation with schools as the
schools develop and implement their plans or activities
under sections 1118 and 1119;
``(I) comply with the requirements of section 1119
regarding the qualifications of teachers and
paraprofessionals and professional development;
``(J) inform eligible schools of the local
educational agency's authority to obtain waivers on the
school's behalf under title IX and, if the State is an
Ed-Flex Partnership State, to obtain waivers under the
Education Flexibility Partnership Act of 1999;
``(K) coordinate and collaborate, to the extent
feasible and necessary as determined by the local
educational agency, with the State educational agency
and other agencies providing services to children,
youth, and families with respect to a school in school
improvement, corrective action, or restructuring under
section 1116 if such a school requests assistance from
the local educational agency in addressing major factors
that have significantly affected student achievement at
the school;
[[Page 115 STAT. 1466]]
``(L) ensure, through incentives for voluntary
transfers, the provision of professional development,
recruitment programs, or other effective strategies,
that low-income students and minority students are not
taught at higher rates than other students by
unqualified, out-of-field, or inexperienced teachers;
``(M) use the results of the student academic
assessments required under section 1111(b)(3), and other
measures or indicators available to the agency, to
review annually the progress of each school served by
the agency and receiving funds under this part to
determine whether all of the schools are making the
progress necessary to ensure that all students will meet
the State's proficient level of achievement on the State
academic assessments described in section 1111(b)(3)
within 12 years from the end of the 2001-2002 school
year;
``(N) ensure that the results from the academic
assessments required under section 1111(b)(3) will be
provided to parents and teachers as soon as is
practicably possible after the test is taken, in an
understandable and uniform format and, to the extent
practicable, provided in a language that the parents can
understand; and
``(O) assist each school served by the agency and
assisted under this part in developing or identifying
examples of high-quality, effective curricula consistent
with section 1111(b)(8)(D).
``(2) Special rule.--In carrying out subparagraph (G) of
paragraph (1), the Secretary--
``(A) <<NOTE: Procedures.>> shall consult with the
Secretary of Health and Human Services and shall
establish procedures (taking into consideration existing
State and local laws, and local teacher contracts) to
assist local educational agencies to comply with such
subparagraph; and
``(B) shall disseminate to local educational
agencies the Head Start performance standards as in
effect under section 641A(a) of the Head Start Act, and
such agencies affected by such subparagraph shall plan
for the implementation of such subparagraph (taking into
consideration existing State and local laws, and local
teacher contracts), including pursuing the availability
of other Federal, State, and local funding sources to
assist in compliance with such subparagraph.
``(3) Inapplicability.--Paragraph (1)(G) of this subsection
shall not apply to preschool programs using the Even Start model
or to Even Start programs that are expanded through the use of
funds under this part.
``(d) Plan Development and Duration.--
``(1) Consultation.--Each local educational agency plan
shall be developed in consultation with teachers, principals,
administrators (including administrators of programs described
in other parts of this title), and other appropriate school
personnel, and with parents of children in schools served under
this part.
``(2) Duration.--Each such plan shall be submitted for the
first year for which this part is in effect following the date
of enactment of the No Child Left Behind Act of 2001
[[Page 115 STAT. 1467]]
and shall remain in effect for the duration of the agency's
participation under this part.
``(3) Review.--Each local educational agency shall
periodically review and, as necessary, revise its plan.
``(e) State Approval.--
``(1) In general.--Each local educational agency plan shall
be filed according to a schedule established by the State
educational agency.
``(2) Approval.--The State educational agency shall approve
a local educational agency's plan only if the State educational
agency determines that the local educational agency's plan--
``(A) enables schools served under this part to
substantially help children served under this part meet
the academic standards expected of all children
described in section 1111(b)(1); and
``(B) meets the requirements of this section.
``(3) Review.--The State educational agency shall review the
local educational agency's plan to determine if such agencies
activities are in accordance with sections 1118 and 1119.
``(f) Program Responsibility.--The local educational agency plan
shall reflect the shared responsibility of schools, teachers, and the
local educational agency in making decisions regarding activities under
sections 1114 and 1115.
``(g) Parental Notification.--
``(1) In general.--
``(A) <<NOTE: Deadline.>> Notice.--Each local
educational agency using funds under this part to
provide a language instruction educational program as
determined in part C of title III shall, not later than
30 days after the beginning of the school year, inform a
parent or parents of a limited English proficient child
identified for participation or participating in, such a
program of--
``(i) the reasons for the identification of
their child as limited English proficient and in
need of placement in a language instruction
educational program;
``(ii) the child's level of English
proficiency, how such level was assessed, and the
status of the child's academic achievement;
``(iii) the methods of instruction used in the
program in which their child is, or will be
participating, and the methods of instruction used
in other available programs, including how such
programs differ in content, instructional goals,
and the use of English and a native language in
instruction;
``(iv) how the program in which their child
is, or will be participating, will meet the
educational strengths and needs of their child;
``(v) how such program will specifically help
their child learn English, and meet age-
appropriate academic achievement standards for
grade promotion and graduation;
``(vi) the specific exit requirements for the
program, including the expected rate of transition
from such program into classrooms that are not
tailored for limited English proficient children,
and the expected rate of graduation from secondary
school for such program
[[Page 115 STAT. 1468]]
if funds under this part are used for children in
secondary schools;
``(vii) in the case of a child with a
disability, how such program meets the objectives
of the individualized education program of the
child;
``(viii) information pertaining to parental
rights that includes written guidance--
``(I) detailing--
``(aa) the right that
parents have to have their child
immediately removed from such
program upon their request; and
``(bb) the options that
parents have to decline to
enroll their child in such
program or to choose another
program or method of
instruction, if available; and
``(II) assisting parents in
selecting among various programs and
methods of instruction, if more than one
program or method is offered by the
eligible entity.
``(B) <<NOTE: Deadline.>> Separate notification.--
In addition to providing the information required to be
provided under paragraph (1), each eligible entity that
is using funds provided under this part to provide a
language instruction educational program, and that has
failed to make progress on the annual measurable
achievement objectives described in section 3122 for any
fiscal year for which part A is in effect, shall
separately inform a parent or the parents of a child
identified for participation in such program, or
participating in such program, of such failure not later
than 30 days after such failure occurs.
``(2) Notice.--The notice and information provided in
paragraph (1) to a parent or parents of a child identified for
participation in a language instruction educational program for
limited English proficient children shall be in an
understandable and uniform format and, to the extent
practicable, provided in a language that the parents can
understand.
``(3) <<NOTE: Deadline.>> Special rule applicable during
the school year.--For those children who have not been
identified as limited English proficient prior to the beginning
of the school year the local educational agency shall notify
parents within the first 2 weeks of the child being placed in a
language instruction educational program consistent with
paragraphs (1) and (2).
``(4) Parental participation.--Each local educational agency
receiving funds under this part shall implement an effective
means of outreach to parents of limited English proficient
students to inform the parents regarding how the parents can be
involved in the education of their children, and be active
participants in assisting their children to attain English
proficiency, achieve at high levels in core academic subjects,
and meet challenging State academic achievement standards and
State academic content standards expected of all students,
including holding, and sending notice of opportunities for,
regular meetings for the purpose of formulating and responding
to recommendations from parents of students assisted under this
part.
``(5) Basis for admission or exclusion.--A student shall not
be admitted to, or excluded from, any federally assisted
[[Page 115 STAT. 1469]]
education program on the basis of a surname or language-minority
status.
``SEC. 1113. <<NOTE: 20 USC 6313.>> ELIGIBLE SCHOOL ATTENDANCE AREAS.
``(a) Determination.--
``(1) In general.--A local educational agency shall use
funds received under this part only in eligible school
attendance areas.
``(2) Eligible school attendance areas.--For the purposes of
this part--
``(A) the term `school attendance area' means, in
relation to a particular school, the geographical area
in which the children who are normally served by that
school reside; and
``(B) the term `eligible school attendance area'
means a school attendance area in which the percentage
of children from low-income families is at least as high
as the percentage of children from low-income families
served by the local educational agency as a whole.
``(3) Ranking order.--If funds allocated in accordance with
subsection (c) are insufficient to serve all eligible school
attendance areas, a local educational agency shall--
``(A) annually rank, without regard to grade spans,
such agency's eligible school attendance areas in which
the concentration of children from low-income families
exceeds 75 percent from highest to lowest according to
the percentage of children from low-income families; and
``(B) serve such eligible school attendance areas in
rank order.
``(4) Remaining funds.--If funds remain after serving all
eligible school attendance areas under paragraph (3), a local
educational agency shall--
``(A) annually rank such agency's remaining eligible
school attendance areas from highest to lowest either by
grade span or for the entire local educational agency
according to the percentage of children from low-income
families; and
``(B) serve such eligible school attendance areas in
rank order either within each grade-span grouping or
within the local educational agency as a whole.
``(5) Measures.--The local educational agency shall use the
same measure of poverty, which measure shall be the number of
children ages 5 through 17 in poverty counted in the most recent
census data approved by the Secretary, the number of children
eligible for free and reduced priced lunches under the Richard
B. Russell National School Lunch Act, the number of children in
families receiving assistance under the State program funded
under part A of title IV of the Social Security Act, or the
number of children eligible to receive medical assistance under
the Medicaid program, or a composite of such indicators, with
respect to all school attendance areas in the local educational
agency--
``(A) to identify eligible school attendance areas;
``(B) to determine the ranking of each area; and
``(C) to determine allocations under subsection (c).
[[Page 115 STAT. 1470]]
``(6) Exception.--This subsection shall not apply to a local
educational agency with a total enrollment of less than 1,000
children.
``(7) Waiver for desegregation plans.--The Secretary may
approve a local educational agency's written request for a
waiver of the requirements of subsections (a) and (c), and
permit such agency to treat as eligible, and serve, any school
that children attend with a State-ordered, court-ordered school
desegregation plan or a plan that continues to be implemented in
accordance with a State-ordered or court-ordered desegregation
plan, if--
``(A) the number of economically disadvantaged
children enrolled in the school is at least 25 percent
of the school's total enrollment; and
``(B) the Secretary determines on the basis of a
written request from such agency and in accordance with
such criteria as the Secretary establishes, that
approval of that request would further the purposes of
this part.
``(b) Local Educational Agency Discretion.--
``(1) In general.--Notwithstanding subsection (a)(2), a
local educational agency may--
``(A) designate as eligible any school attendance
area or school in which at least 35 percent of the
children are from low-income families;
``(B) use funds received under this part in a school
that is not in an eligible school attendance area, if
the percentage of children from low-income families
enrolled in the school is equal to or greater than the
percentage of such children in a participating school
attendance area of such agency;
``(C) designate and serve a school attendance area
or school that is not eligible under this section, but
that was eligible and that was served in the preceding
fiscal year, but only for 1 additional fiscal year; and
``(D) elect not to serve an eligible school
attendance area or eligible school that has a higher
percentage of children from low-income families if--
``(i) the school meets the comparability
requirements of section 1120A(c);
``(ii) the school is receiving supplemental
funds from other State or local sources that are
spent according to the requirements of section
1114 or 1115; and
``(iii) the funds expended from such other
sources equal or exceed the amount that would be
provided under this part.
``(2) Special rule.--Notwithstanding paragraph (1)(D), the
number of children attending private elementary schools and
secondary schools who are to receive services, and the
assistance such children are to receive under this part, shall
be determined without regard to whether the public school
attendance area in which such children reside is assisted under
subparagraph (A).
``(c) Allocations.--
``(1) In general.--A local educational agency shall allocate
funds received under this part to eligible school attendance
areas or eligible schools, identified under subsections (a) and
[[Page 115 STAT. 1471]]
(b), in rank order, on the basis of the total number of children
from low-income families in each area or school.
``(2) Special rule.--
``(A) In general.--Except as provided in
subparagraph (B), the per-pupil amount of funds
allocated to each school attendance area or school under
paragraph (1) shall be at least 125 percent of the per-
pupil amount of funds a local educational agency
received for that year under the poverty criteria
described by the local educational agency in the plan
submitted under section 1112, except that this paragraph
shall not apply to a local educational agency that only
serves schools in which the percentage of such children
is 35 percent or greater.
``(B) Exception.--A local educational agency may
reduce the amount of funds allocated under subparagraph
(A) for a school attendance area or school by the amount
of any supplemental State and local funds expended in
that school attendance area or school for programs that
meet the requirements of section 1114 or 1115.
``(3) Reservation.--A local educational agency shall reserve
such funds as are necessary under this part to provide services
comparable to those provided to children in schools funded under
this part to serve--
``(A) homeless children who do not attend
participating schools, including providing educationally
related support services to children in shelters and
other locations where children may live;
``(B) children in local institutions for neglected
children; and
``(C) if appropriate, children in local institutions
for delinquent children, and neglected or delinquent
children in community day school programs.
``(4) Financial incentives and rewards reservation.--A local
educational agency may reserve such funds as are necessary from
those funds received by the local educational agency under title
II, and not more than 5 percent of those funds received by the
local educational agency under subpart 2, to provide financial
incentives and rewards to teachers who serve in schools eligible
under this section and identified for school improvement,
corrective action, and restructuring under section 1116(b) for
the purpose of attracting and retaining qualified and effective
teachers.
``SEC. 1114. <<NOTE: 20 USC 6314.>> SCHOOLWIDE PROGRAMS.
``(a) Use of Funds for Schoolwide Programs.--
``(1) In general.--A local educational agency may
consolidate and use funds under this part, together with other
Federal, State, and local funds, in order to upgrade the entire
educational program of a school that serves an eligible school
attendance area in which not less than 40 percent of the
children are from low-income families, or not less than 40
percent of the children enrolled in the school are from such
families.
``(2) Identification of students not required.--
``(A) In general.--No school participating in a
schoolwide program shall be required--
``(i) to identify particular children under
this part as eligible to participate in a
schoolwide program; or
[[Page 115 STAT. 1472]]
``(ii) to provide services to such children
that are supplementary, as otherwise required by
section 1120A(b).
``(B) Supplemental funds.--A school participating in
a schoolwide program shall use funds available to carry
out this section only to supplement the amount of funds
that would, in the absence of funds under this part, be
made available from non-Federal sources for the school,
including funds needed to provide services that are
required by law for children with disabilities and
children with limited English proficiency.
``(3) Exemption from statutory and regulatory
requirements.--
``(A) Exemption.--Except as provided in subsection
(b), the Secretary may, through publication of a notice
in the Federal Register, exempt schoolwide programs
under this section from statutory or regulatory
provisions of any other noncompetitive formula grant
program administered by the Secretary (other than
formula or discretionary grant programs under the
Individuals with Disabilities Education Act, except as
provided in section 613(a)(2)(D) of such Act), or any
discretionary grant program administered by the
Secretary, to support schoolwide programs if the intent
and purposes of such other programs are met.
``(B) Requirements.--A school that chooses to use
funds from such other programs shall not be relieved of
the requirements relating to health, safety, civil
rights, student and parental participation and
involvement, services to private school children,
maintenance of effort, comparability of services, uses
of Federal funds to supplement, not supplant non-Federal
funds, or the distribution of funds to State educational
agencies or local educational agencies that apply to the
receipt of funds from such programs.
``(C) Records.--A school that consolidates and uses
funds from different Federal programs under this section
shall not be required to maintain separate fiscal
accounting records, by program, that identify the
specific activities supported by those particular funds
as long as the school maintains records that demonstrate
that the schoolwide program, considered as a whole,
addresses the intent and purposes of each of the Federal
programs that were consolidated to support the
schoolwide program.
``(4) Professional development.--Each school receiving funds
under this part for any fiscal year shall devote sufficient
resources to effectively carry out the activities described in
subsection (b)(1)(D) in accordance with section 1119 for such
fiscal year, except that a school may enter into a consortium
with another school to carry out such activities.
``(b) Components of a Schoolwide Program.--
``(1) In general.--A schoolwide program shall include the
following components:
``(A) A comprehensive needs assessment of the entire
school (including taking into account the needs of
migratory children as defined in section 1309(2)) that
is based on information which includes the achievement
of children in relation to the State academic content
standards and
[[Page 115 STAT. 1473]]
the State student academic achievement standards
described in section 1111(b)(1).
``(B) Schoolwide reform strategies that--
``(i) provide opportunities for all children
to meet the State's proficient and advanced levels
of student academic achievement described in
section 1111(b)(1)(D);
``(ii) use effective methods and instructional
strategies that are based on scientifically based
research that--
``(I) strengthen the core academic
program in the school;
``(II) increase the amount and
quality of learning time, such as
providing an extended school year and
before- and after-school and summer
programs and opportunities, and help
provide an enriched and accelerated
curriculum; and
``(III) include strategies for
meeting the educational needs of
historically underserved populations;
``(iii)(I) include strategies to address the
needs of all children in the school, but
particularly the needs of low-achieving children
and those at risk of not meeting the State student
academic achievement standards who are members of
the target population of any program that is
included in the schoolwide program, which may
include--
``(aa) counseling, pupil services,
and mentoring services;
``(bb) college and career awareness
and preparation, such as college and
career guidance, personal finance
education, and innovative teaching
methods, which may include applied
learning and team-teaching strategies;
and
``(cc) the integration of vocational
and technical education programs; and
``(II) address how the school will determine
if such needs have been met; and
``(iv) are consistent with, and are designed
to implement, the State and local improvement
plans, if any.
``(C) Instruction by highly qualified teachers.
``(D) In accordance with section 1119 and subsection
(a)(4), high-quality and ongoing professional
development for teachers, principals, and
paraprofessionals and, if appropriate, pupil services
personnel, parents, and other staff to enable all
children in the school to meet the State's student
academic achievement standards.
``(E) Strategies to attract high-quality highly
qualified teachers to high-need schools.
``(F) Strategies to increase parental involvement in
accordance with section 1118, such as family literary
services.
``(G) Plans for assisting preschool children in the
transition from early childhood programs, such as Head
Start, Even Start, Early Reading First, or a State-run
preschool program, to local elementary school programs.
[[Page 115 STAT. 1474]]
``(H) Measures to include teachers in the decisions
regarding the use of academic assessments described in
section 1111(b)(3) in order to provide information on,
and to improve, the achievement of individual students
and the overall instructional program.
``(I) Activities to ensure that students who
experience difficulty mastering the proficient or
advanced levels of academic achievement standards
required by section 1111(b)(1) shall be provided with
effective, timely additional assistance which shall
include measures to ensure that students' difficulties
are identified on a timely basis and to provide
sufficient information on which to base effective
assistance.
``(J) Coordination and integration of Federal,
State, and local services and programs, including
programs supported under this Act, violence prevention
programs, nutrition programs, housing programs, Head
Start, adult education, vocational and technical
education, and job training.
``(2) Plan.--
``(A) In general.--Any eligible school that desires
to operate a schoolwide program shall first develop (or
amend a plan for such a program that was in existence on
the day before the date of enactment of the No Child
Left Behind Act of 2001), in consultation with the local
educational agency and its school support team or other
technical assistance provider under section 1117, a
comprehensive plan for reforming the total instructional
program in the school that--
``(i) describes how the school will implement
the components described in paragraph (1);
``(ii) describes how the school will use
resources under this part and from other sources
to implement those components;
``(iii) <<NOTE: Records.>> includes a list of
State educational agency and local educational
agency programs and other Federal programs under
subsection (a)(3) that will be consolidated in the
schoolwide program; and
``(iv) describes how the school will provide
individual student academic assessment results in
a language the parents can understand, including
an interpretation of those results, to the parents
of a child who participates in the academic
assessments required by section 1111(b)(3).
``(B) Plan development.--The comprehensive plan
shall be--
``(i) developed during a one-year period,
unless--
``(I) the local educational agency,
after considering the recommendation of
the technical assistance providers under
section 1117, determines that less time
is needed to develop and implement the
schoolwide program; or
``(II) the school is operating a
schoolwide program on the day preceding
the date of enactment of the No Child
Left Behind Act of 2001, in which case
such school may continue to operate such
program, but shall develop amendments to
its existing plan during the first year
of assistance
[[Page 115 STAT. 1475]]
after that date to reflect the
provisions of this section;
``(ii) developed with the involvement of
parents and other members of the community to be
served and individuals who will carry out such
plan, including teachers, principals, and
administrators (including administrators of
programs described in other parts of this title),
and, if appropriate, pupil services personnel,
technical assistance providers, school staff, and,
if the plan relates to a secondary school,
students from such school;
``(iii) in effect for the duration of the
school's participation under this part and
reviewed and revised, as necessary, by the school;
``(iv) available to the local educational
agency, parents, and the public, and the
information contained in such plan shall be in an
understandable and uniform format and, to the
extent practicable, provided in a language that
the parents can understand; and
``(v) if appropriate, developed in
coordination with programs under Reading First,
Early Reading First, Even Start, Carl D. Perkins
Vocational and Technical Education Act of 1998,
and the Head Start Act.
``(c) Prekindergarten Program.--A school that is eligible for a
schoolwide program under this section may use funds made available under
this part to establish or enhance prekindergarten programs for children
below the age of 6, such as Even Start programs or Early Reading First
programs.
``SEC. 1115. TARGETED ASSISTANCE SCHOOLS. <<NOTE: 20 USC 6315.>>
``(a) In General.--In all schools selected to receive funds under
section 1113(c) that are ineligible for a schoolwide program under
section 1114, or that choose not to operate such a schoolwide program, a
local educational agency serving such school may use funds received
under this part only for programs that provide services to eligible
children under subsection (b) identified as having the greatest need for
special assistance.
``(b) Eligible Children.--
``(1) Eligible population.--
``(A) In general.--The eligible population for
services under this section is--
``(i) children not older than age 21 who are
entitled to a free public education through grade
12; and
``(ii) children who are not yet at a grade
level at which the local educational agency
provides a free public education.
``(B) Eligible children from eligible population.--
From the population described in subparagraph (A),
eligible children are children identified by the school
as failing, or most at risk of failing, to meet the
State's challenging student academic achievement
standards on the basis of multiple, educationally
related, objective criteria established by the local
educational agency and supplemented by the school,
except that children from preschool through grade 2
shall be selected solely on the basis of such criteria
as teacher judgment, interviews with parents, and
developmentally appropriate measures.
[[Page 115 STAT. 1476]]
``(2) Children included.--
``(A) In general.--Children who are economically
disadvantaged, children with disabilities, migrant
children or limited English proficient children, are
eligible for services under this part on the same basis
as other children selected to receive services under
this part.
``(B) Head start, even start, or early reading first
children.--A child who, at any time in the 2 years
preceding the year for which the determination is made,
participated in a Head Start, Even Start, or Early
Reading First program, or in preschool services under
this title, is eligible for services under this part.
``(C) Part c children.--A child who, at any time in
the 2 years preceding the year for which the
determination is made, received services under part C is
eligible for services under this part.
``(D) Neglected or delinquent children.--A child in
a local institution for neglected or delinquent children
and youth or attending a community day program for such
children is eligible for services under this part.
``(E) Homeless children.--A child who is homeless
and attending any school served by the local educational
agency is eligible for services under this part.
``(3) Special rule.--Funds received under this part may not
be used to provide services that are otherwise required by law
to be made available to children described in paragraph (2) but
may be used to coordinate or supplement such services.
``(c) Components of a Targeted Assistance School Program.--
``(1) In general.--To assist targeted assistance schools and
local educational agencies to meet their responsibility to
provide for all their students served under this part the
opportunity to meet the State's challenging student academic
achievement standards in subjects as determined by the State,
each targeted assistance program under this section shall--
``(A) use such program's resources under this part
to help participating children meet such State's
challenging student academic achievement standards
expected for all children;
``(B) ensure that planning for students served under
this part is incorporated into existing school planning;
``(C) use effective methods and instructional
strategies that are based on scientifically based
research that strengthens the core academic program of
the school and that--
``(i) give primary consideration to providing
extended learning time, such as an extended school
year, before- and after-school, and summer
programs and opportunities;
``(ii) help provide an accelerated, high-
quality curriculum, including applied learning;
and
``(iii) minimize removing children from the
regular classroom during regular school hours for
instruction provided under this part;
``(D) coordinate with and support the regular
education program, which may include services to assist
preschool children in the transition from early
childhood programs
[[Page 115 STAT. 1477]]
such as Head Start, Even Start, Early Reading First or
State-run preschool programs to elementary school
programs;
``(E) provide instruction by highly qualified
teachers;
``(F) in accordance with subsection (e)(3) and
section 1119, provide opportunities for professional
development with resources provided under this part,
and, to the extent practicable, from other sources, for
teachers, principals, and paraprofessionals, including,
if appropriate, pupil services personnel, parents, and
other staff, who work with participating children in
programs under this section or in the regular education
program;
``(G) provide strategies to increase parental
involvement in accordance with section 1118, such as
family literacy services; and
``(H) coordinate and integrate Federal, State, and
local services and programs, including programs
supported under this Act, violence prevention programs,
nutrition programs, housing programs, Head Start, adult
education, vocational and technical education, and job
training.
``(2) Requirements.--Each school conducting a program under
this section shall assist participating children selected in
accordance with subsection (b) to meet the State's proficient
and advanced levels of achievement by--
``(A) the coordinating of resources provided under
this part with other resources; and
``(B) reviewing, on an ongoing basis, the progress
of participating children and revising the targeted
assistance program, if necessary, to provide additional
assistance to enable such children to meet the State's
challenging student academic achievement standards, such
as an extended school year, before- and after-school,
and summer programs and opportunities, training for
teachers regarding how to identify students who need
additional assistance, and training for teachers
regarding how to implement student academic achievement
standards in the classroom.
``(d) Integration of Professional Development.--To promote the
integration of staff supported with funds under this part into the
regular school program and overall school planning and improvement
efforts, public school personnel who are paid with funds received under
this part may--
``(1) participate in general professional development and
school planning activities; and
``(2) assume limited duties that are assigned to similar
personnel who are not so paid, including duties beyond classroom
instruction or that do not benefit participating children, so
long as the amount of time spent on such duties is the same
proportion of total work time as prevails with respect to
similar personnel at the same school.
``(e) Special Rules.--
``(1) Simultaneous service.--Nothing in this section shall
be construed to prohibit a school from serving students under
this section simultaneously with students with similar
educational needs, in the same educational settings where
appropriate.
``(2) Comprehensive services.--If--
[[Page 115 STAT. 1478]]
``(A) health, nutrition, and other social services
are not otherwise available to eligible children in a
targeted assistance school and such school, if
appropriate, has engaged in a comprehensive needs
assessment and established a collaborative partnership
with local service providers; and
``(B) funds are not reasonably available from other
public or private sources to provide such services, then
a portion of the funds provided under this part may be
used as a last resort to provide such services,
including--
``(i) the provision of basic medical
equipment, such as eyeglasses and hearing aids;
``(ii) compensation of a coordinator; and
``(iii) professional development necessary to
assist teachers, pupil services personnel, other
staff, and parents in identifying and meeting the
comprehensive needs of eligible children.
``(3) Professional development.--Each school receiving funds
under this part for any fiscal year shall devote sufficient
resources to carry out effectively the professional development
activities described in subparagraph (F) of subsection (c)(1) in
accordance with section 1119 for such fiscal year, and a school
may enter into a consortium with another school to carry out
such activities.
``SEC. 1116. <<NOTE: 20 USC 6316.>> ACADEMIC ASSESSMENT AND LOCAL
EDUCATIONAL AGENCY AND SCHOOL IMPROVEMENT.
``(a) Local Review.--
``(1) In general.--Each local educational agency receiving
funds under this part shall--
``(A) use the State academic assessments and other
indicators described in the State plan to review
annually the progress of each school served under this
part to determine whether the school is making adequate
yearly progress as defined in section 1111(b)(2);
``(B) at the local educational agency's discretion,
use any academic assessments or any other academic
indicators described in the local educational agency's
plan under section 1112(b)(1)(A) and (B) to review
annually the progress of each school served under this
part to determine whether the school is making adequate
yearly progress as defined in section 1111(b)(2), except
that the local educational agency may not use such
indicators (other than as provided for in section
1111(b)(2)(I)) if the indicators reduce the number or
change the schools that would otherwise be subject to
school improvement, corrective action, or restructuring
under section 1116 if such additional indicators were
not used, but may identify additional schools for school
improvement or in need of corrective action or
restructuring;
``(C) publicize and disseminate the results of the
local annual review described in paragraph (1) to
parents, teachers, principals, schools, and the
community so that the teachers, principals, other staff,
and schools can continually refine, in an
instructionally useful manner, the program of
instruction to help all children served under this
[[Page 115 STAT. 1479]]
part meet the challenging State student academic
achievement standards established under section
1111(b)(1); and
``(D) review the effectiveness of the actions and
activities the schools are carrying out under this part
with respect to parental involvement, professional
development, and other activities assisted under this
part.
``(2) Available results.--The State educational agency shall
ensure that the results of State academic assessments
administered in that school year are available to the local
educational agency before the beginning of the next school year.
``(b) School Improvement.--
``(1) General requirements.--
``(A) Identification.--Subject to subparagraph (C),
a local educational agency shall identify for school
improvement any elementary school or secondary school
served under this part that fails, for 2 consecutive
years, to make adequate yearly progress as defined in
the State's plan under section 1111(b)(2).
``(B) Deadline.--The identification described in
subparagraph (A) shall take place before the beginning
of the school year following such failure to make
adequate yearly progress.
``(C) Application.--Subparagraph (A) shall not apply
to a school if almost every student in each group
specified in section 1111(b)(2)(C)(v) enrolled in such
school is meeting or exceeding the State's proficient
level of academic achievement.
``(D) Targeted assistance schools.--To determine if
an elementary school or a secondary school that is
conducting a targeted assistance program under section
1115 should be identified for school improvement,
corrective action, or restructuring under this section,
a local educational agency may choose to review the
progress of only the students in the school who are
served, or are eligible for services, under this part.
``(E) Public school choice.--
``(i) In general.--In the case of a school
identified for school improvement under this
paragraph, the local educational agency shall, not
later than the first day of the school year
following such identification, provide all
students enrolled in the school with the option to
transfer to another public school served by the
local educational agency, which may include a
public charter school, that has not been
identified for school improvement under this
paragraph, unless such an option is prohibited by
State law.
``(ii) Rule.--In providing students the option
to transfer to another public school, the local
educational agency shall give priority to the
lowest achieving children from low-income
families, as determined by the local educational
agency for purposes of allocating funds to schools
under section 1113(c)(1).
``(F) Transfer.--Students who use the option to
transfer under subparagraph (E) and paragraph (5)(A),
(7)(C)(i), or (8)(A)(i) or subsection (c)(10)(C)(vii)
shall be enrolled in classes and other activities in the
public school
[[Page 115 STAT. 1480]]
to which the students transfer in the same manner as all
other children at the public school.
``(2) Opportunity to review and present evidence; time
limit.--
``(A) Identification.--Before identifying an
elementary school or a secondary school for school
improvement under paragraphs (1) or (5)(A), for
corrective action under paragraph (7), or for
restructuring under paragraph (8), the local educational
agency shall provide the school with an opportunity to
review the school-level data, including academic
assessment data, on which the proposed identification is
based.
``(B) Evidence.--If the principal of a school
proposed for identification under paragraph (1), (5)(A),
(7), or (8) believes, or a majority of the parents of
the students enrolled in such school believe, that the
proposed identification is in error for statistical or
other substantive reasons, the principal may provide
supporting evidence to the local educational agency,
which shall consider that evidence before making a final
determination.
``(C) <<NOTE: Deadline. Public information.>> Final
determination.--Not later than 30 days after a local
educational agency provides the school with the
opportunity to review such school-level data, the local
educational agency shall make public a final
determination on the status of the school with respect
to the identification.
``(3) School plan.--
``(A) <<NOTE: Deadline.>> Revised plan.--After the
resolution of a review under paragraph (2), each school
identified under paragraph (1) for school improvement
shall, not later than 3 months after being so
identified, develop or revise a school plan, in
consultation with parents, school staff, the local
educational agency serving the school, and outside
experts, for approval by such local educational agency.
The school plan shall cover a 2-year period and--
``(i) incorporate strategies based on
scientifically based research that will strengthen
the core academic subjects in the school and
address the specific academic issues that caused
the school to be identified for school
improvement, and may include a strategy for the
implementation of a comprehensive school reform
model that includes each of the components
described in part F;
``(ii) adopt policies and practices concerning
the school's core academic subjects that have the
greatest likelihood of ensuring that all groups of
students specified in section 1111(b)(2)(C)(v) and
enrolled in the school will meet the State's
proficient level of achievement on the State
academic assessment described in section
1111(b)(3) not later than 12 years after the end
of the 2001-2002 school year;
``(iii) provide an assurance that the school
will spend not less than 10 percent of the funds
made available to the school under section 1113
for each fiscal year that the school is in school
improvement status, for the purpose of providing
to the school's teachers and principal high-
quality professional development that--
[[Page 115 STAT. 1481]]
``(I) directly addresses the
academic achievement problem that caused
the school to be identified for school
improvement;
``(II) meets the requirements for
professional development activities
under section 1119; and
``(III) is provided in a manner that
affords increased opportunity for
participating in that professional
development;
``(iv) specify how the funds described in
clause (iii) will be used to remove the school
from school improvement status;
``(v) <<NOTE: Deadline.>> establish specific
annual, measurable objectives for continuous and
substantial progress by each group of students
specified in section 1111(b)(2)(C)(v) and enrolled
in the school that will ensure that all such
groups of students will, in accordance with
adequate yearly progress as defined in section
1111(b)(2), meet the State's proficient level of
achievement on the State academic assessment
described in section 1111(b)(3) not later than 12
years after the end of the 2001-2002 school year;
``(vi) describe how the school will provide
written notice about the identification to parents
of each student enrolled in such school, in a
format and, to the extent practicable, in a
language that the parents can understand;
``(vii) specify the responsibilities of the
school, the local educational agency, and the
State educational agency serving the school under
the plan, including the technical assistance to be
provided by the local educational agency under
paragraph (4) and the local educational agency's
responsibilities under section 1120A;
``(viii) include strategies to promote
effective parental involvement in the school;
``(ix) incorporate, as appropriate, activities
before school, after school, during the summer,
and during any extension of the school year; and
``(x) incorporate a teacher mentoring program.
``(B) Conditional approval.--The local educational
agency may condition approval of a school plan under
this paragraph on--
``(i) inclusion of one or more of the
corrective actions specified in paragraph
(7)(C)(iv); or
``(ii) feedback on the school improvement plan
from parents and community leaders.
``(C) <<NOTE: Deadline.>> Plan implementation.--
Except as provided in subparagraph (D), a school shall
implement the school plan (including a revised plan)
expeditiously, but not later than the beginning of the
next full school year following the identification under
paragraph (1).
``(D) Plan approved during school year.--
Notwithstanding subparagraph (C), if a plan is not
approved prior to the beginning of a school year, such
plan shall be implemented immediately upon approval.
[[Page 115 STAT. 1482]]
``(E) Local educational agency approval.--The local
educational agency, within 45 days of receiving a school
plan, shall--
``(i) <<NOTE: Establishment.>> establish a
peer review process to assist with review of the
school plan; and
``(ii) promptly review the school plan, work
with the school as necessary, and approve the
school plan if the plan meets the requirements of
this paragraph.
``(4) Technical assistance.--
``(A) In general.--For each school identified for
school improvement under paragraph (1), the local
educational agency serving the school shall ensure the
provision of technical assistance as the school develops
and implements the school plan under paragraph (3)
throughout the plan's duration.
``(B) Specific assistance.--Such technical
assistance--
``(i) shall include assistance in analyzing
data from the assessments required under section
1111(b)(3), and other examples of student work, to
identify and address problems in instruction, and
problems if any, in implementing the parental
involvement requirements described in section
1118, the professional development requirements
described in section 1119, and the
responsibilities of the school and local
educational agency under the school plan, and to
identify and address solutions to such problems;
``(ii) shall include assistance in identifying
and implementing professional development,
instructional strategies, and methods of
instruction that are based on scientifically based
research and that have proven effective in
addressing the specific instructional issues that
caused the school to be identified for school
improvement;
``(iii) shall include assistance in analyzing
and revising the school's budget so that the
school's resources are more effectively allocated
to the activities most likely to increase student
academic achievement and to remove the school from
school improvement status; and
``(iv) may be provided--
``(I) by the local educational
agency, through mechanisms authorized
under section 1117; or
``(II) by the State educational
agency, an institution of higher
education (that is in full compliance
with all the reporting provisions of
title II of the Higher Education Act of
1965), a private not-for-profit
organization or for-profit organization,
an educational service agency, or
another entity with experience in
helping schools improve academic
achievement.
``(C) Scientifically based research.--Technical
assistance provided under this section by a local
educational agency or an entity approved by that agency
shall be based on scientifically based research.
``(5) Failure to make adequate yearly progress after
identification.--In the case of any school served under this
[[Page 115 STAT. 1483]]
part that fails to make adequate yearly progress, as set out in
the State's plan under section 1111(b)(2), by the end of the
first full school year after identification under paragraph (1),
the local educational agency serving such school--
``(A) shall continue to provide all students
enrolled in the school with the option to transfer to
another public school served by the local educational
agency in accordance with subparagraphs (E) and (F);
``(B) shall make supplemental educational services
available consistent with subsection (e)(1); and
``(C) shall continue to provide technical
assistance.
``(6) Notice to parents.--A local educational agency shall
promptly provide to a parent or parents (in an understandable
and uniform format and, to the extent practicable, in a language
the parents can understand) of each student enrolled in an
elementary school or a secondary school identified for school
improvement under paragraph (1), for corrective action under
paragraph (7), or for restructuring under paragraph (8)--
``(A) an explanation of what the identification
means, and how the school compares in terms of academic
achievement to other elementary schools or secondary
schools served by the local educational agency and the
State educational agency involved;
``(B) the reasons for the identification;
``(C) an explanation of what the school identified
for school improvement is doing to address the problem
of low achievement;
``(D) an explanation of what the local educational
agency or State educational agency is doing to help the
school address the achievement problem;
``(E) an explanation of how the parents can become
involved in addressing the academic issues that caused
the school to be identified for school improvement; and
``(F) an explanation of the parents' option to
transfer their child to another public school under
paragraphs (1)(E), (5)(A), (7)(C)(i), (8)(A)(i), and
subsection (c)(10)(C)(vii) (with transportation provided
by the agency when required by paragraph (9)) or to
obtain supplemental educational services for the child,
in accordance with subsection (e).
``(7) Corrective action.--
``(A) In general.--In this subsection, the term
`corrective action' means action, consistent with State
law, that--
``(i) substantially and directly responds to--
``(I) the consistent academic
failure of a school that caused the
local educational agency to take such
action; and
``(II) any underlying staffing,
curriculum, or other problems in the
school; and
``(ii) is designed to increase substantially
the likelihood that each group of students
described in 1111(b)(2)(C) enrolled in the school
identified for corrective action will meet or
exceed the State's proficient levels of
achievement on the State academic assessments
described in section 1111(b)(3).
[[Page 115 STAT. 1484]]
``(B) System.--In order to help students served
under this part meet challenging State student academic
achievement standards, each local educational agency
shall implement a system of corrective action in
accordance with subparagraphs (C) through (E).
``(C) Role of local educational agency.--In the case
of any school served by a local educational agency under
this part that fails to make adequate yearly progress,
as defined by the State under section 1111(b)(2), by the
end of the second full school year after the
identification under paragraph (1), the local
educational agency shall--
``(i) continue to provide all students
enrolled in the school with the option to transfer
to another public school served by the local
educational agency, in accordance with paragraph
(1)(E) and (F);
``(ii) continue to provide technical
assistance consistent with paragraph (4) while
instituting any corrective action under clause
(iv);
``(iii) continue to make supplemental
educational services available, in accordance with
subsection (e), to children who remain in the
school; and
``(iv) identify the school for corrective
action and take at least one of the following
corrective actions:
``(I) Replace the school staff who
are relevant to the failure to make
adequate yearly progress.
``(II) Institute and fully implement
a new curriculum, including providing
appropriate professional development for
all relevant staff, that is based on
scientifically based research and offers
substantial promise of improving
educational achievement for low-
achieving students and enabling the
school to make adequate yearly progress.
``(III) Significantly decrease
management authority at the school
level.
``(IV) Appoint an outside expert to
advise the school on its progress toward
making adequate yearly progress, based
on its school plan under paragraph (3).
``(V) Extend the school year or
school day for the school.
``(VI) Restructure the internal
organizational structure of the school.
``(D) Delay.--Notwithstanding any other provision of
this paragraph, the local educational agency may delay,
for a period not to exceed 1 year, implementation of the
requirements under paragraph (5), corrective action
under this paragraph, or restructuring under paragraph
(8) if the school makes adequate yearly progress for 1
year or if its failure to make adequate yearly progress
is due to exceptional or uncontrollable circumstances,
such as a natural disaster or a precipitous and
unforeseen decline in the financial resources of the
local educational agency or school. No such period shall
be taken into account in determining the number of
consecutive years of failure to make adequate yearly
progress.
[[Page 115 STAT. 1485]]
``(E) Publication and dissemination.--The local
educational agency shall publish and disseminate
information regarding any corrective action the local
educational agency takes under this paragraph at a
school--
``(i) to the public and to the parents of each
student enrolled in the school subject to
corrective action;
``(ii) in an understandable and uniform format
and, to the extent practicable, provided in a
language that the parents can understand; and
``(iii) through such means as the Internet,
the media, and public agencies.
``(8) Restructuring.--
``(A) Failure to make adequate yearly progress.--If,
after 1 full school year of corrective action under
paragraph (7), a school subject to such corrective
action continues to fail to make adequate yearly
progress, then the local educational agency shall--
``(i) continue to provide all students
enrolled in the school with the option to transfer
to another public school served by the local
educational agency, in accordance with paragraph
(1)(E) and (F);
``(ii) continue to make supplemental
educational services available, in accordance with
subsection (e), to children who remain in the
school; and
``(iii) prepare a plan and make necessary
arrangements to carry out subparagraph (B).
``(B) <<NOTE: Deadline.>> Alternative governance.--
Not later than the beginning of the school year
following the year in which the local educational agency
implements subparagraph (A), the local educational
agency shall implement one of the following alternative
governance arrangements for the school consistent with
State law:
``(i) Reopening the school as a public charter
school.
``(ii) Replacing all or most of the school
staff (which may include the principal) who are
relevant to the failure to make adequate yearly
progress.
``(iii) Entering into a contract with an
entity, such as a private management company, with
a demonstrated record of effectiveness, to operate
the public school.
``(iv) Turning the operation of the school
over to the State educational agency, if permitted
under State law and agreed to by the State.
``(v) Any other major restructuring of the
school's governance arrangement that makes
fundamental reforms, such as significant changes
in the school's staffing and governance, to
improve student academic achievement in the school
and that has substantial promise of enabling the
school to make adequate yearly progress as defined
in the State plan under section 1111(b)(2). In the
case of a rural local educational agency with a
total of less than 600 students in average daily
attendance at the schools that are served by the
agency and all of whose schools have a School
Locale Code of 7 or 8, as determined by the
Secretary, the Secretary shall, at such agency's
request, provide
[[Page 115 STAT. 1486]]
technical assistance to such agency for the
purpose of implementing this clause.
``(C) Prompt notice.--The local educational agency
shall--
``(i) provide prompt notice to teachers and
parents whenever subparagraph (A) or (B) applies;
and
``(ii) provide the teachers and parents with
an adequate opportunity to--
``(I) comment before taking any
action under those subparagraphs; and
``(II) participate in developing any
plan under subparagraph (A)(iii).
``(9) Transportation.--In any case described in paragraph
(1)(E) for schools described in paragraphs (1)(A), (5),
(7)(C)(i), and (8)(A), and subsection (c)(10)(C)(vii), the local
educational agency shall provide, or shall pay for the provision
of, transportation for the student to the public school the
student attends.
``(10) Funds for transportation and supplemental educational
services.--
``(A) In general.--Unless a lesser amount is needed
to comply with paragraph (9) and to satisfy all requests
for supplemental educational services under subsection
(e), a local educational agency shall spend an amount
equal to 20 percent of its allocation under subpart 2,
from which the agency shall spend--
``(i) an amount equal to 5 percent of its
allocation under subpart 2 to provide, or pay for,
transportation under paragraph (9);
``(ii) an amount equal to 5 percent of its
allocation under subpart 2 to provide supplemental
educational services under subsection (e); and
``(iii) an amount equal to the remaining 10
percent of its allocation under subpart 2 for
transportation under paragraph (9), supplemental
educational services under subsection (e), or
both, as the agency determines.
``(B) Total amount.--The total amount described in
subparagraph (A)(ii) is the maximum amount the local
educational agency shall be required to spend under this
part on supplemental educational services described in
subsection (e).
``(C) Insufficient funds.--If the amount of funds
described in subparagraph (A)(ii) or (iii) and available
to provide services under this subsection is
insufficient to provide supplemental educational
services to each child whose parents request the
services, the local educational agency shall give
priority to providing the services to the lowest-
achieving children.
``(D) Prohibition.--A local educational agency shall
not, as a result of the application of this paragraph,
reduce by more than 15 percent the total amount made
available under section 1113(c) to a school described in
paragraph (7)(C) or (8)(A) of subsection (b).
``(11) Cooperative agreement.--In any case described in
paragraph (1)(E), (5)(A), (7)(C)(i), or (8)(A)(i), or subsection
(c)(10)(C)(vii) if all public schools served by the local
educational agency to which a child may transfer are identified
for school improvement, corrective action or restructuring, the
agency
[[Page 115 STAT. 1487]]
shall, to the extent practicable, establish a cooperative
agreement with other local educational agencies in the area for
a transfer.
``(12) Duration.--If any school identified for school
improvement, corrective action, or restructuring makes adequate
yearly progress for two consecutive school years, the local
educational agency shall no longer subject the school to the
requirements of school improvement, corrective action, or
restructuring or identify the school for school improvement for
the succeeding school year.
``(13) Special rule.--A local educational agency shall
permit a child who transferred to another school under this
subsection to remain in that school until the child has
completed the highest grade in that school. The obligation of
the local educational agency to provide, or to provide for,
transportation for the child ends at the end of a school year if
the local educational agency determines that the school from
which the child transferred is no longer identified for school
improvement or subject to corrective action or restructuring.
``(14) State educational agency responsibilities.--The State
educational agency shall--
``(A) make technical assistance under section 1117
available to schools identified for school improvement,
corrective action, or restructuring under this
subsection consistent with section 1117(a)(2);
``(B) if the State educational agency determines
that a local educational agency failed to carry out its
responsibilities under this subsection, take such
corrective actions as the State educational agency
determines to be appropriate and in compliance with
State law;
``(C) ensure that academic assessment results under
this part are provided to schools before any
identification of a school may take place under this
subsection; and
``(D) for local educational agencies or schools
identified for improvement under this subsection, notify
the Secretary of major factors that were brought to the
attention of the State educational agency under section
1111(b)(9) that have significantly affected student
academic achievement.
``(c) State Review and Local Educational Agency Improvement.--
``(1) In general.--A State shall--
``(A) annually review the progress of each local
educational agency receiving funds under this part to
determine whether schools receiving assistance under
this part are making adequate yearly progress as defined
in section 1111(b)(2) toward meeting the State's student
academic achievement standards and to determine if each
local educational agency is carrying out its
responsibilities under this section and sections 1117,
1118, and 1119; and
``(B) publicize and disseminate to local educational
agencies, teachers and other staff, parents, students,
and the community the results of the State review,
including statistically sound disaggregated results, as
required by section 1111(b)(2).
``(2) Rewards.--In the case of a local educational agency
that, for 2 consecutive years, has exceeded adequate yearly
progress as defined in the State plan under section 1111(b)(2),
[[Page 115 STAT. 1488]]
the State may make rewards of the kinds described under section
1117 to the agency.
``(3) Identification of local educational agency for
improvement.--A State shall identify for improvement any local
educational agency that, for 2 consecutive years, including the
period immediately prior to the date of enactment of the No
Child Left Behind Act of 2001, failed to make adequate yearly
progress as defined in the State's plan under section
1111(b)(2).
``(4) Targeted assistance schools.--When reviewing targeted
assistance schools served by a local educational agency, a State
educational agency may choose to review the progress of only the
students in such schools who are served, or are eligible for
services, under this part.
``(5) Opportunity to review and present evidence.--
``(A) Review.--Before identifying a local
educational agency for improvement under paragraph (3)
or corrective action under paragraph (10), a State
educational agency shall provide the local educational
agency with an opportunity to review the data, including
academic assessment data, on which the proposed
identification is based.
``(B) <<NOTE: Deadline.>> Evidence.--If the local
educational agency believes that the proposed
identification is in error for statistical or other
substantive reasons, the agency may provide supporting
evidence to the State educational agency, which shall
consider the evidence before making a final
determination not later than 30 days after the State
educational agency provides the local educational agency
with the opportunity to review such data under
subparagraph (A).
``(6) Notification to parents.--The State educational agency
shall promptly provide to the parents (in a format and, to the
extent practicable, in a language the parents can understand) of
each student enrolled in a school served by a local educational
agency identified for improvement, the results of the review
under paragraph (1) and, if the agency is identified for
improvement, the reasons for that identification and how parents
can participate in upgrading the quality of the local
educational agency.
``(7) Local educational agency revisions.--
``(A) <<NOTE: Deadline.>> Plan.--Each local
educational agency identified under paragraph (3) shall,
not later than 3 months after being so identified,
develop or revise a local educational agency plan, in
consultation with parents, school staff, and others.
Such plan shall--
``(i) incorporate scientifically based
research strategies that strengthen the core
academic program in schools served by the local
educational agency;
``(ii) identify actions that have the greatest
likelihood of improving the achievement of
participating children in meeting the State's
student academic achievement standards;
``(iii) address the professional development
needs of the instructional staff serving the
agency by committing to spend not less than 10
percent of the funds received by the local
educational agency under subpart 2 for each fiscal
year in which the agency is identified
[[Page 115 STAT. 1489]]
for improvement for professional development
(including funds reserved for professional
development under subsection (b)(3)(A)(iii)), but
excluding funds reserved for professional
development under section 1119;
``(iv) include specific measurable achievement
goals and targets for each of the groups of
students identified in the disaggregated data
pursuant to section 1111(b)(2)(C)(v), consistent
with adequate yearly progress as defined under
section 1111(b)(2);
``(v) address the fundamental teaching and
learning needs in the schools of that agency, and
the specific academic problems of low-achieving
students, including a determination of why the
local educational agency's prior plan failed to
bring about increased student academic
achievement;
``(vi) incorporate, as appropriate, activities
before school, after school, during the summer,
and during an extension of the school year;
``(vii) specify the responsibilities of the
State educational agency and the local educational
agency under the plan, including specifying the
technical assistance to be provided by the State
educational agency under paragraph (9) and the
local educational agency's responsibilities under
section 1120A; and
``(viii) include strategies to promote
effective parental involvement in the school.
``(B) <<NOTE: Deadline.>> Implementation.--The
local educational agency shall implement the plan
(including a revised plan) expeditiously, but not later
than the beginning of the next school year after the
school year in which the agency was identified for
improvement.
``(9) State educational agency responsibility.--
``(A) Technical or other assistance.--For each local
educational agency identified under paragraph (3), the
State educational agency shall provide technical or
other assistance if requested, as authorized under
section 1117, to better enable the local educational
agency to--
``(i) develop and implement the local
educational agency's plan; and
``(ii) work with schools needing improvement.
``(B) Methods and strategies.--Technical assistance
provided under this section by the State educational
agency or an entity authorized by such agency shall be
supported by effective methods and instructional
strategies based on scientifically based research. Such
technical assistance shall address problems, if any, in
implementing the parental involvement activities
described in section 1118 and the professional
development activities described in section 1119.
``(10) Corrective action.--In order to help students served
under this part meet challenging State student academic
achievement standards, each State shall implement a system of
corrective action in accordance with the following:
``(A) Definition.--As used in this paragraph, the
term `corrective action' means action, consistent with
State law, that--
[[Page 115 STAT. 1490]]
``(i) substantially and directly responds to
the consistent academic failure that caused the
State to take such action and to any underlying
staffing, curricular, or other problems in the
agency; and
``(ii) is designed to meet the goal of having
all students served under this part achieve at the
proficient and advanced student academic
achievement levels.
``(B) General requirements.--After providing
technical assistance under paragraph (9) and subject to
subparagraph (E), the State--
``(i) may take corrective action at any time
with respect to a local educational agency that
has been identified under paragraph (3);
``(ii) shall take corrective action with
respect to any local educational agency that fails
to make adequate yearly progress, as defined by
the State, by the end of the second full school
year after the identification of the agency under
paragraph (3); and
``(iii) shall continue to provide technical
assistance while instituting any corrective action
under clause (i) or (ii).
``(C) Certain corrective actions required.--In the
case of a local educational agency identified for
corrective action, the State educational agency shall
take at least one of the following corrective actions:
``(i) Deferring programmatic funds or reducing
administrative funds.
``(ii) Instituting and fully implementing a
new curriculum that is based on State and local
academic content and achievement standards,
including providing appropriate professional
development based on scientifically based research
for all relevant staff, that offers substantial
promise of improving educational achievement for
low-achieving students.
``(iii) Replacing the local educational agency
personnel who are relevant to the failure to make
adequate yearly progress.
``(iv) Removing particular schools from the
jurisdiction of the local educational agency and
establishing alternative arrangements for public
governance and supervision of such schools.
``(v) Appointing, through the State
educational agency, a receiver or trustee to
administer the affairs of the local educational
agency in place of the superintendent and school
board.
``(vi) Abolishing or restructuring the local
educational agency.
``(vii) Authorizing students to transfer from
a school operated by the local educational agency
to a higher-performing public school operated by
another local educational agency in accordance
with subsections (b)(1)(E) and (F), and providing
to such students transportation (or the costs of
transportation) to such schools consistent with
subsection (b)(9), in conjunction with carrying
out not less than one additional action described
under this subparagraph.
[[Page 115 STAT. 1491]]
``(D) <<NOTE: Notice. Deadline.>> Hearing.--Prior
to implementing any corrective action under this
paragraph, the State educational agency shall provide
notice and a hearing to the affected local educational
agency, if State law provides for such notice and
hearing. The hearing shall take place not later than 45
days following the decision to implement corrective
action.
``(E) <<NOTE: Publication.>> Notice to parents.--
The State educational agency shall publish, and
disseminate to parents and the public, information on
any corrective action the State educational agency takes
under this paragraph through such means as the Internet,
the media, and public agencies.
``(F) Delay.--Notwithstanding subparagraph (B)(ii),
a State educational agency may delay, for a period not
to exceed 1 year, implementation of corrective action
under this paragraph if the local educational agency
makes adequate yearly progress for 1 year or its failure
to make adequate yearly progress is due to exceptional
or uncontrollable circumstances, such as a natural
disaster or a precipitous and unforeseen decline in the
financial resources of the local educational agency. No
such period shall be taken into account in determining
the number of consecutive years of failure to make
adequate yearly progress.
``(11) Special rule.--If a local educational agency makes
adequate yearly progress for two consecutive school years
beginning after the date of identification of the agency under
paragraph (3), the State educational agency need no longer
identify the local educational agency for improvement or subject
the local educational agency to corrective action for the
succeeding school year.
``(d) Construction.--Nothing in this section shall be construed to
alter or otherwise affect the rights, remedies, and procedures afforded
school or school district employees under Federal, State, or local laws
(including applicable regulations or court orders) or under the terms of
collective bargaining agreements, memoranda of understanding, or other
agreements between such employees and their employers.
``(e) Supplemental Educational Services.--
``(1) Supplemental educational services.--In the case of any
school described in paragraph (5), (7), or (8) of subsection
(b), the local educational agency serving such school shall,
subject to this subsection, arrange for the provision of
supplemental educational services to eligible children in the
school from a provider with a demonstrated record of
effectiveness, that is selected by the parents and approved for
that purpose by the State educational agency in accordance with
reasonable criteria, consistent with paragraph (5), that the
State educational agency shall adopt.
``(2) Local educational agency responsibilities.--Each local
educational agency subject to this subsection shall--
``(A) provide, at a minimum, annual notice to
parents (in an understandable and uniform format and, to
the extent practicable, in a language the parents can
understand) of--
``(i) the availability of services under this
subsection;
[[Page 115 STAT. 1492]]
``(ii) the identity of approved providers of
those services that are within the local
educational agency or whose services are
reasonably available in neighboring local
educational agencies; and
``(iii) a brief description of the services,
qualifications, and demonstrated effectiveness of
each such provider;
``(B) if requested, assist parents in choosing a
provider from the list of approved providers maintained
by the State;
``(C) apply fair and equitable procedures for
serving students if the number of spaces at approved
providers is not sufficient to serve all students; and
``(D) not disclose to the public the identity of any
student who is eligible for, or receiving, supplemental
educational services under this subsection without the
written permission of the parents of the student.
``(3) Agreement.--In the case of the selection of an
approved provider by a parent, the local educational agency
shall enter into an agreement with such provider. Such agreement
shall--
``(A) require the local educational agency to
develop, in consultation with parents (and the provider
chosen by the parents), a statement of specific
achievement goals for the student, how the student's
progress will be measured, and a timetable for improving
achievement that, in the case of a student with
disabilities, is consistent with the student's
individualized education program under section 614(d) of
the Individuals with Disabilities Education Act;
``(B) describe how the student's parents and the
student's teacher or teachers will be regularly informed
of the student's progress;
``(C) provide for the termination of such agreement
if the provider is unable to meet such goals and
timetables;
``(D) contain provisions with respect to the making
of payments to the provider by the local educational
agency; and
``(E) prohibit the provider from disclosing to the
public the identity of any student eligible for, or
receiving, supplemental educational services under this
subsection without the written permission of the parents
of such student.
``(4) State educational agency responsibilities.--A State
educational agency shall--
``(A) in consultation with local educational
agencies, parents, teachers, and other interested
members of the public, promote maximum participation by
providers to ensure, to the extent practicable, that
parents have as many choices as possible;
``(B) develop and apply objective criteria,
consistent with paragraph (5), to potential providers
that are based on a demonstrated record of effectiveness
in increasing the academic proficiency of students in
subjects relevant to meeting the State academic content
and student achievement standards adopted under section
1111(b)(1);
``(C) <<NOTE: Records.>> maintain an updated list
of approved providers across the State, by school
district, from which parents may select;
[[Page 115 STAT. 1493]]
``(D) <<NOTE: Reports. Public information.>>
develop, implement, and publicly report on standards and
techniques for monitoring the quality and effectiveness
of the services offered by approved providers under this
subsection, and for withdrawing approval from providers
that fail, for 2 consecutive years, to contribute to
increasing the academic proficiency of students served
under this subsection as described in subparagraph (B);
and
``(E) <<NOTE: Notice.>> provide annual notice to
potential providers of supplemental educational services
of the opportunity to provide services under this
subsection and of the applicable procedures for
obtaining approval from the State educational agency to
be an approved provider of those services.
``(5) Criteria for providers.--In order for a provider to be
included on the State list under paragraph (4)(C), a provider
shall agree to carry out the following:
``(A) Provide parents of children receiving
supplemental educational services under this subsection
and the appropriate local educational agency with
information on the progress of the children in
increasing achievement, in a format and, to the extent
practicable, a language that such parents can
understand.
``(B) Ensure that instruction provided and content
used by the provider are consistent with the instruction
provided and content used by the local educational
agency and State, and are aligned with State student
academic achievement standards.
``(C) Meet all applicable Federal, State, and local
health, safety, and civil rights laws.
``(D) Ensure that all instruction and content under
this subsection are secular, neutral, and
nonideological.
``(6) Amounts for supplemental educational services.--The
amount that a local educational agency shall make available for
supplemental educational services for each child receiving those
services under this subsection shall be the lesser of--
``(A) the amount of the agency's allocation under
subpart 2, divided by the number of children from
families below the poverty level counted under section
1124(c)(1)(A); or
``(B) the actual costs of the supplemental
educational services received by the child.
``(7) Funds provided by state educational agency.--Each
State educational agency may use funds that the agency reserves
under this part, and part A of title V, to assist local
educational agencies that do not have sufficient funds to
provide services under this subsection for all eligible students
requesting such services.
``(8) Duration.--The local educational agency shall continue
to provide supplemental educational services to a child
receiving such services under this subsection until the end of
the school year in which such services were first received.
``(9) Prohibition.--Nothing contained in this subsection
shall permit the making of any payment for religious worship or
instruction.
``(10) Waiver.--
[[Page 115 STAT. 1494]]
``(A) Requirement.--At the request of a local
educational agency, a State educational agency may
waive, in whole or in part, the requirement of this
subsection to provide supplemental educational services
if the State educational agency determines that--
``(i) none of the providers of those services
on the list approved by the State educational
agency under paragraph (4)(C) makes those services
available in the area served by the local
educational agency or within a reasonable distance
of that area; and
``(ii) the local educational agency provides
evidence that it is not able to provide those
services.
``(B) <<NOTE: Deadline.>> Notification.--The State
educational agency shall notify the local educational
agency, within 30 days of receiving the local
educational agency's request for a waiver under
subparagraph (A), whether the request is approved or
disapproved and, if disapproved, the reasons for the
disapproval, in writing.
``(11) Special rule.--If State law prohibits a State
educational agency from carrying out one or more of its
responsibilities under paragraph (4) with respect to those who
provide, or seek approval to provide, supplemental educational
services, each local educational agency in the State shall carry
out those responsibilities with respect to its students who are
eligible for those services.
``(12) Definitions.--In this subsection--
``(A) the term `eligible child' means a child from a
low-income family, as determined by the local
educational agency for purposes of allocating funds to
schools under section 1113(c)(1);
``(B) the term `provider' means a non-profit entity,
a for-profit entity, or a local educational agency
that--
``(i) has a demonstrated record of
effectiveness in increasing student academic
achievement;
``(ii) is capable of providing supplemental
educational services that are consistent with the
instructional program of the local educational
agency and the academic standards described under
section 1111; and
``(iii) is financially sound; and
``(C) the term `supplemental educational services'
means tutoring and other supplemental academic
enrichment services that are--
``(i) in addition to instruction provided
during the school day; and
``(ii) are of high quality, research-based,
and specifically designed to increase the academic
achievement of eligible children on the academic
assessments required under section 1111 and attain
proficiency in meeting the State's academic
achievement standards.
``(f) Schools and LEAs Previously Identified for Improvement or
Corrective Action.--
``(1) Schools.--
``(A) School improvement.--
``(i) Schools in school-improvement status
before date of enactment.--Any school that was in
the first year of school improvement status under
[[Page 115 STAT. 1495]]
this section on the day preceding the date of
enactment of the No Child Left Behind Act of 2001
(as this section was in effect on such day) shall
be treated by the local educational agency as a
school that is in the first year of school
improvement status under paragraph (1).
``(ii) Schools in school-improvement status
for 2 or more years before date of enactment.--Any
school that was in school improvement status under
this section for two or more consecutive school
years preceding the date of enactment of the No
Child Left Behind Act of 2001 (as this section was
in effect on such day) shall be treated by the
local educational agency as a school described in
subsection (b)(5).
``(B) Corrective action.--Any school that was in
corrective action status under this section on the day
preceding the date of enactment of the No Child Left
Behind Act of 2001 (as this section was in effect on
such day) shall be treated by the local educational
agency as a school described in paragraph (7).
``(2) LEAs.--
``(A) LEA improvement.--A State shall identify for
improvement under subsection (c)(3) any local
educational agency that was in improvement status under
this section as this section was in effect on the day
preceding the date of enactment of the No Child Left
Behind Act of 2001.
``(B) Corrective action.--A State shall identify for
corrective action under subsection (c)(10) any local
educational agency that was in corrective action status
under this section as this section was in effect on the
day preceding the date of enactment of the No Child Left
Behind Act of 2001.
``(C) <<NOTE: Deadline.>> Special rule.--For the
schools and other local educational agencies described
under paragraphs (1) and (2), as required, the State
shall ensure that public school choice in accordance
with subparagraphs (b)(1)(E) and (F) and supplemental
education services in accordance with subsection (e) are
provided not later than the first day of the 2002-2003
school year.
``(D) Transition.--With respect to a determination
that a local educational agency has for 2 consecutive
years failed to make adequate yearly progress as defined
in the State plan under section 1111(b)(2), such
determination shall include in such 2-year period any
continuous period of time immediately preceding the date
of enactment of the No Child Left Behind Act of 2001
during which the agency has failed to make such
progress.
``(g) Schools Funded by the Bureau of Indian Affairs.--
``(1) Adequate yearly progress for bureau funded schools.--
``(A) Development of definition.--
``(i) Definition.--The Secretary of the
Interior, in consultation with the Secretary if
the Secretary of Interior requests the
consultation, using the process set out in section
1138(b) of the Education Amendments of 1978, shall
define adequate yearly progress,
[[Page 115 STAT. 1496]]
consistent with section 1111(b), for the schools
funded by the Bureau of Indian Affairs on a
regional or tribal basis, as appropriate, taking
into account the unique circumstances and needs of
such schools and the students served by such
schools.
``(ii) Use of definition.--The Secretary of
the Interior, consistent with clause (i), may use
the definition of adequate yearly progress that
the State in which the school that is funded by
the Bureau is located uses consistent with section
1111(b), or in the case of schools that are
located in more than one State, the Secretary of
the Interior may use whichever State definition of
adequate yearly progress that best meets the
unique circumstances and needs of such school or
schools and the students the schools serve.
``(B) Waiver.--The tribal governing body or school
board of a school funded by the Bureau of Indian Affairs
may waive, in part or in whole, the definition of
adequate yearly progress established pursuant to
paragraph (A) where such definition is determined by
such body or school board to be
inappropriate. <<NOTE: Deadline.>> If such definition
is waived, the tribal governing body or school board
shall, within 60 days thereafter, submit to the
Secretary of Interior a proposal for an alternative
definition of adequate yearly progress, consistent with
section 1111(b), that takes into account the unique
circumstances and needs of such school or schools and
the students served. The Secretary of the Interior, in
consultation with the Secretary if the Secretary of
Interior requests the consultation, shall approve such
alternative definition unless the Secretary determines
that the definition does not meet the requirements of
section 1111(b), taking into account the unique
circumstances and needs of such school or schools and
the students served.
``(C) Technical assistance.--The Secretary of
Interior shall, in consultation with the Secretary if
the Secretary of Interior requests the consultation,
either directly or through a contract, provide technical
assistance, upon request, to a tribal governing body or
school board of a school funded by the Bureau of Indian
Affairs that seeks to develop an alternative definition
of adequate yearly progress.
``(2) Accountability for bia schools.--For the purposes of
this section, schools funded by the Bureau of Indian Affairs
shall be considered schools subject to subsection (b), as
specifically provided for in this subsection, except that such
schools shall not be subject to subsection (c), or the
requirements to provide public school choice and supplemental
educational services under subsections (b) and (e).
``(3) School improvement for bureau schools.--
``(A) Contract and grant schools.--For a school
funded by the Bureau of Indian Affairs which is operated
under a contract issued by the Secretary of the Interior
pursuant to the Indian Self-Determination Act (25 U.S.C.
450 et seq.) or under a grant issued by the Secretary of
the Interior pursuant to the Tribally Controlled Schools
Act of 1988 (25 U.S.C. 2501 et seq.), the school board
[[Page 115 STAT. 1497]]
of such school shall be responsible for meeting the
requirements of subsection (b) relating to development
and implementation of any school improvement plan as
described in subsections (b)(1) through (b)(3), and
subsection (b)(5), other than subsection (b)(1)(E). The
Bureau of Indian Affairs shall be responsible for
meeting the requirements of subsection (b)(4) relating
to technical assistance.
``(B) Bureau operated schools.--For schools operated
by the Bureau of Indian Affairs, the Bureau shall be
responsible for meeting the requirements of subsection
(b) relating to development and implementation of any
school improvement plan as described in subsections
(b)(1) through (b)(5), other than subsection (b)(1)(E).
``(4) Corrective action and restructuring for bureau-funded
schools.--
``(A) Contract and grant schools.--For a school
funded by the Bureau of Indian Affairs which is operated
under a contract issued by the Secretary of the Interior
pursuant to the Indian Self-Determination Act (25 U.S.C.
450 et seq.) or under a grant issued by the Secretary of
the Interior pursuant to the Tribally Controlled Schools
Act of 1988 (25 U.S.C. 2501 et seq.), the school board
of such school shall be responsible for meeting the
requirements of subsection (b) relating to corrective
action and restructuring as described in subsection
(b)(7) and (b)(8). Any action taken by such school board
under subsection (b)(7) or (b)(8) shall take into
account the unique circumstances and structure of the
Bureau of Indian Affairs-funded school system and the
laws governing that system.
``(B) Bureau operated schools.--For schools operated
by the Bureau of Indian Affairs, the Bureau shall be
responsible for meeting the requirements of subsection
(b) relating to corrective action and restructuring as
described in subsection (b)(7) and (b)(8). Any action
taken by the Bureau under subsection (b)(7) or (b)(8)
shall take into account the unique circumstances and
structure of the Bureau of Indian Affairs-funded school
system and the laws governing that system.
``(5) Annual report.--On an annual basis, the Secretary of
the Interior shall report to the Secretary of Education and to
the appropriate committees of Congress regarding any schools
funded by the Bureau of Indian Affairs which have been
identified for school improvement. Such report shall include--
``(A) the identity of each school;
``(B) a statement from each affected school board
regarding the factors that lead to such identification;
and
``(C) an analysis by the Secretary of the Interior,
in consultation with the Secretary if the Secretary of
Interior requests the consultation, as to whether
sufficient resources were available to enable such
school to achieve adequate yearly progress.
``(h) Other Agencies.--After receiving the notice described in
subsection (b)(14)(D), the Secretary may notify, to the extent
[[Page 115 STAT. 1498]]
feasible and necessary as determined by the Secretary, other relevant
Federal agencies regarding the major factors that were determined by the
State educational agency to have significantly affected student academic
achievement.
``SEC. 1117. <<NOTE: 20 USC 6317.>> SCHOOL SUPPORT AND RECOGNITION.
``(a) System for Support.--
``(1) In general.--Each State shall establish a statewide
system of intensive and sustained support and improvement for
local educational agencies and schools receiving funds under
this part, in order to increase the opportunity for all students
served by those agencies and schools to meet the State's
academic content standards and student academic achievement
standards.
``(2) Priorities.--In carrying out this subsection, a State
shall--
``(A) first, provide support and assistance to local
educational agencies with schools subject to corrective
action under section 1116 and assist those schools, in
accordance with section 1116(b)(11), for which a local
educational agency has failed to carry out its
responsibilities under paragraphs (7) and (8) of section
1116(b);
``(B) second, provide support and assistance to
other local educational agencies with schools identified
as in need of improvement under section 1116(b); and
``(C) third, provide support and assistance to other
local educational agencies and schools participating
under this part that need that support and assistance in
order to achieve the purpose of this part.
``(3) Regional centers.--Such a statewide system shall, to
the extent practicable, work with and receive support and
assistance from the comprehensive regional technical assistance
centers and the regional educational laboratories under section
941(h) of the Educational Research, Development, Dissemination,
and Improvement Act of 1994, or other providers of technical
assistance.
``(4) Statewide system.--
``(A) In order to achieve the purpose described in
paragraph (1), the statewide system shall include, at a
minimum, the following approaches:
``(i) Establishing school support teams in
accordance with subparagraph (C) for assignment
to, and working in, schools in the State that are
described in paragraph (2).
``(ii) Providing such support as the State
educational agency determines necessary and
available in order to ensure the effectiveness of
such teams.
``(iii) Designating and using distinguished
teachers and principals who are chosen from
schools served under this part that have been
especially successful in improving academic
achievement.
``(iv) Devising additional approaches to
providing the assistance described in paragraph
(1), such as providing assistance through
institutions of higher education and educational
service agencies or other local consortia, and
private providers of scientifically based
technical assistance.
[[Page 115 STAT. 1499]]
``(B) Priority.--The State educational agency shall
give priority to the approach described in clause (i) of
subparagraph (A).
``(5) School support teams.--
``(A) Composition.--Each school support team
established under this section shall be composed of
persons knowledgeable about scientifically based
research and practice on teaching and learning and about
successful schoolwide projects, school reform, and
improving educational opportunities for low-achieving
students, including--
``(i) highly qualified or distinguished
teachers and principals;
``(ii) pupil services personnel;
``(iii) parents;
``(iv) representatives of institutions of
higher education;
``(v) representatives of regional educational
laboratories or comprehensive regional technical
assistance centers;
``(vi) representatives of outside consultant
groups; or
``(vii) other individuals as the State
educational agency, in consultation with the local
educational agency, may determine appropriate.
``(B) Functions.--Each school support team assigned
to a school under this section shall--
``(i) review and analyze all facets of the
school's operation, including the design and
operation of the instructional program, and assist
the school in developing recommendations for
improving student performance in that school;
``(ii) collaborate with parents and school
staff and the local educational agency serving the
school in the design, implementation, and
monitoring of a plan that, if fully implemented,
can reasonably be expected to improve student
performance and help the school meet its goals for
improvement, including adequate yearly progress
under section 1111(b)(2)(B);
``(iii) evaluate, at least semiannually, the
effectiveness of school personnel assigned to the
school, including identifying outstanding teachers
and principals, and make findings and
recommendations to the school, the local
educational agency, and, where appropriate, the
State educational agency; and
``(iv) make additional recommendations as the
school implements the plan described in clause
(ii) to the local educational agency and the State
educational agency concerning additional
assistance that is needed by the school or the
school support team.
``(C) Continuation of assistance.--After one school
year, from the beginning of the activities, such school
support team, in consultation with the local educational
agency, may recommend that the school support team
continue to provide assistance to the school, or that
the local educational agency or the State educational
agency, as
[[Page 115 STAT. 1500]]
appropriate, take alternative actions with regard to the
school.
``(b) State Recognition.--
``(1) Academic achievement awards program.--
``(A) In general.--Each State receiving a grant
under this part--
``(i) shall establish a program for making
academic achievement awards to recognize schools
that meet the criteria described in subparagraph
(B); and
``(ii) as appropriate and as funds are
available under subsection (c)(2)(A), may
financially reward schools served under this part
that meet the criteria described in clause (ii).
``(B) Criteria.--The criteria referred to in
subparagraph (A) are that a school--
``(i) significantly closed the achievement gap
between the groups of students described in
section 1111(b)(2); or
``(ii) exceeded their adequate yearly
progress, consistent with section 1111(b)(2), for
2 or more consecutive years.
``(2) Distinguished schools.--Of those schools meeting the
criteria described in paragraph (2), each State shall designate
as distinguished schools those schools that have made the
greatest gains in closing the achievement gap as described in
subparagraph (B)(i) or exceeding adequate yearly progress as
described in subparagraph (B)(ii). Such distinguished schools
may serve as models for and provide support to other schools,
especially schools identified for improvement under section
1116, to assist such schools in meeting the State's academic
content standards and student academic achievement standards.
``(3) Awards to teachers.--A State program under paragraph
(1) may also recognize and provide financial awards to teachers
teaching in a school described in such paragraph that
consistently makes significant gains in academic achievement in
the areas in which the teacher provides instruction, or to
teachers or principals designated as distinguished under
subsection (a)(4)(A)(iii).
``(c) Funding.--
``(1) In general.--Each State--
``(A) shall use funds reserved under section 1003(a)
and may use funds made available under section 1003(g)
for the approaches described under subsection (a)(4)(A);
and
``(B) shall use State administrative funds
authorized under section 1004(a) to establish the
statewide system of support described under subsection
(a).
``(2) Reservations of funds by state.--
``(A) Awards program.--For the purpose of carrying
out subsection (b)(1), each State receiving a grant
under this part may reserve, from the amount (if any) by
which the funds received by the State under subpart 2
for a fiscal year exceed the amount received by the
State under that subpart for the preceding fiscal year,
not more than 5 percent of such excess amount.
[[Page 115 STAT. 1501]]
``(B) Teacher awards.--For the purpose of carrying
out subsection (b)(3), a State educational agency may
reserve such funds as necessary from funds made
available under section 2113.
``(3) Use within 3 years.--Notwithstanding any other
provision of law, the amount reserved under subparagraph (A) by
a State for each fiscal year shall remain available to the State
until expended for a period not exceeding 3 years receipt of
funds.
``(4) Special allocation rule for schools in high-poverty
areas.--
``(A) In general.--Each State shall distribute not
less than 75 percent of any amount reserved under
paragraph (2)(A) for each fiscal year to schools
described in subparagraph (B), or to teachers in those
schools consistent with subsection (b)(3).
``(B) School described.--A school described in
subparagraph (A) is a school whose student population is
in the highest quartile of schools statewide in terms of
the percentage of children from low income families.
``SEC. 1118. PARENTAL INVOLVEMENT. <<NOTE: 20 USC 6318.>>
``(a) Local Educational Agency Policy.--
``(1) In general.--A local educational agency may receive
funds under this part only if such agency implements programs,
activities, and procedures for the involvement of parents in
programs assisted under this part consistent with this section.
Such programs, activities, and procedures shall be planned and
implemented with meaningful consultation with parents of
participating children.
``(2) Written policy.--Each local educational agency that
receives funds under this part shall develop jointly with, agree
on with, and distribute to, parents of participating children a
written parent involvement policy. The policy shall be
incorporated into the local educational agency's plan developed
under section 1112, establish the agency's expectations for
parent involvement, and describe how the agency will--
``(A) involve parents in the joint development of
the plan under section 1112, and the process of school
review and improvement under section 1116;
``(B) provide the coordination, technical
assistance, and other support necessary to assist
participating schools in planning and implementing
effective parent involvement activities to improve
student academic achievement and school performance;
``(C) build the schools' and parents' capacity for
strong parental involvement as described in subsection
(e);
``(D) coordinate and integrate parental involvement
strategies under this part with parental involvement
strategies under other programs, such as the Head Start
program, Reading First program, Early Reading First
program, Even Start program, Parents as Teachers
program, and Home Instruction Program for Preschool
Youngsters, and State-run preschool programs;
``(E) conduct, with the involvement of parents, an
annual evaluation of the content and effectiveness of
the parental involvement policy in improving the
academic
[[Page 115 STAT. 1502]]
quality of the schools served under this part, including
identifying barriers to greater participation by parents
in activities authorized by this section (with
particular attention to parents who are economically
disadvantaged, are disabled, have limited English
proficiency, have limited literacy, or are of any racial
or ethnic minority background), and use the findings of
such evaluation to design strategies for more effective
parental involvement, and to revise, if necessary, the
parental involvement policies described in this section;
and
``(F) involve parents in the activities of the
schools served under this part.
``(3) Reservation.--
``(A) In general.--Each local educational agency
shall reserve not less than 1 percent of such agency's
allocation under subpart 2 of this part to carry out
this section, including promoting family literacy and
parenting skills, except that this paragraph shall not
apply if 1 percent of such agency's allocation under
subpart 2 of this part for the fiscal year for which the
determination is made is $5,000 or less.
``(B) Parental input.--Parents of children receiving
services under this part shall be involved in the
decisions regarding how funds reserved under
subparagraph (A) are allotted for parental involvement
activities.
``(C) Distribution of funds.--Not less than 95
percent of the funds reserved under subparagraph (A)
shall be distributed to schools served under this part.
``(b) School Parental Involvement Policy.--
``(1) In general.--Each school served under this part shall
jointly develop with, and distribute to, parents of
participating children a written parental involvement policy,
agreed on by such parents, that shall describe the means for
carrying out the requirements of subsections (c) through
(f). <<NOTE: Notification.>> Parents shall be notified of the
policy in an understandable and uniform format and, to the
extent practicable, provided in a language the parents can
understand. <<NOTE: Public information.>> Such policy shall be
made available to the local community and updated periodically
to meet the changing needs of parents and the school.
``(2) Special rule.--If the school has a parental
involvement policy that applies to all parents, such school may
amend that policy, if necessary, to meet the requirements of
this subsection.
``(3) Amendment.--If the local educational agency involved
has a school district-level parental involvement policy that
applies to all parents, such agency may amend that policy, if
necessary, to meet the requirements of this subsection.
``(4) Parental comments.--If the plan under section 1112 is
not satisfactory to the parents of participating children, the
local educational agency shall submit any parent comments with
such plan when such local educational agency submits the plan to
the State.
``(c) Policy Involvement.--Each school served under this part
shall--
``(1) convene an annual meeting, at a convenient time, to
which all parents of participating children shall be invited and
encouraged to attend, to inform parents of their school's
[[Page 115 STAT. 1503]]
participation under this part and to explain the requirements of
this part, and the right of the parents to be involved;
``(2) offer a flexible number of meetings, such as meetings
in the morning or evening, and may provide, with funds provided
under this part, transportation, child care, or home visits, as
such services relate to parental involvement;
``(3) involve parents, in an organized, ongoing, and timely
way, in the planning, review, and improvement of programs under
this part, including the planning, review, and improvement of
the school parental involvement policy and the joint development
of the schoolwide program plan under section 1114(b)(2), except
that if a school has in place a process for involving parents in
the joint planning and design of the school's programs, the
school may use that process, if such process includes an
adequate representation of parents of participating children;
``(4) provide parents of participating children--
``(A) timely information about programs under this
part;
``(B) a description and explanation of the
curriculum in use at the school, the forms of academic
assessment used to measure student progress, and the
proficiency levels students are expected to meet; and
``(C) if requested by parents, opportunities for
regular meetings to formulate suggestions and to
participate, as appropriate, in decisions relating to
the education of their children, and respond to any such
suggestions as soon as practicably possible; and
``(5) if the schoolwide program plan under section
1114(b)(2) is not satisfactory to the parents of participating
children, submit any parent comments on the plan when the school
makes the plan available to the local educational agency.
``(d) Shared Responsibilities for High Student Academic
Achievement.--As a component of the school-level parental involvement
policy developed under subsection (b), each school served under this
part shall jointly develop with parents for all children served under
this part a school-parent compact that outlines how parents, the entire
school staff, and students will share the responsibility for improved
student academic achievement and the means by which the school and
parents will build and develop a partnership to help children achieve
the State's high standards. Such compact shall--
``(1) describe the school's responsibility to provide high-
quality curriculum and instruction in a supportive and effective
learning environment that enables the children served under this
part to meet the State's student academic achievement standards,
and the ways in which each parent will be responsible for
supporting their children's learning, such as monitoring
attendance, homework completion, and television watching;
volunteering in their child's classroom; and participating, as
appropriate, in decisions relating to the education of their
children and positive use of extracurricular time; and
``(2) address the importance of communication between
teachers and parents on an ongoing basis through, at a minimum--
[[Page 115 STAT. 1504]]
``(A) parent-teacher conferences in elementary
schools, at least annually, during which the compact
shall be discussed as the compact relates to the
individual child's achievement;
``(B) frequent reports to parents on their
children's progress; and
``(C) reasonable access to staff, opportunities to
volunteer and participate in their child's class, and
observation of classroom activities.
``(e) Building Capacity for Involvement.--To ensure effective
involvement of parents and to support a partnership among the school
involved, parents, and the community to improve student academic
achievement, each school and local educational agency assisted under
this part--
``(1) shall provide assistance to parents of children served
by the school or local educational agency, as appropriate, in
understanding such topics as the State's academic content
standards and State student academic achievement standards,
State and local academic assessments, the requirements of this
part, and how to monitor a child's progress and work with
educators to improve the achievement of their children;
``(2) shall provide materials and training to help parents
to work with their children to improve their children's
achievement, such as literacy training and using technology, as
appropriate, to foster parental involvement;
``(3) shall educate teachers, pupil services personnel,
principals, and other staff, with the assistance of parents, in
the value and utility of contributions of parents, and in how to
reach out to, communicate with, and work with parents as equal
partners, implement and coordinate parent programs, and build
ties between parents and the school;
``(4) shall, to the extent feasible and appropriate,
coordinate and integrate parent involvement programs and
activities with Head Start, Reading First, Early Reading First,
Even Start, the Home Instruction Programs for Preschool
Youngsters, the Parents as Teachers Program, and public
preschool and other programs, and conduct other activities, such
as parent resource centers, that encourage and support parents
in more fully participating in the education of their children;
``(5) shall ensure that information related to school and
parent programs, meetings, and other activities is sent to the
parents of participating children in a format and, to the extent
practicable, in a language the parents can understand;
``(6) may involve parents in the development of training for
teachers, principals, and other educators to improve the
effectiveness of such training;
``(7) may provide necessary literacy training from funds
received under this part if the local educational agency has
exhausted all other reasonably available sources of funding for
such training;
``(8) may pay reasonable and necessary expenses associated
with local parental involvement activities, including
transportation and child care costs, to enable parents to
participate in school-related meetings and training sessions;
``(9) may train parents to enhance the involvement of other
parents;
[[Page 115 STAT. 1505]]
``(10) may arrange school meetings at a variety of times, or
conduct in-home conferences between teachers or other educators,
who work directly with participating children, with parents who
are unable to attend such conferences at school, in order to
maximize parental involvement and participation;
``(11) may adopt and implement model approaches to improving
parental involvement;
``(12) may establish a districtwide parent advisory council
to provide advice on all matters related to parental involvement
in programs supported under this section;
``(13) may develop appropriate roles for community-based
organizations and businesses in parent involvement activities;
and
``(14) shall provide such other reasonable support for
parental involvement activities under this section as parents
may request.
``(f) Accessibility.--In carrying out the parental involvement
requirements of this part, local educational agencies and schools, to
the extent practicable, shall provide full opportunities for the
participation of parents with limited English proficiency, parents with
disabilities, and parents of migratory children, including providing
information and school reports required under section 1111 in a format
and, to the extent practicable, in a language such parents understand.
``(g) Information From Parental Information and Resource Centers.--
In a State where a parental information and resource center is
established to provide training, information, and support to parents and
individuals who work with local parents, local educational agencies, and
schools receiving assistance under this part, each local educational
agency or school that receives assistance under this part and is located
in the State shall assist parents and parental organizations by
informing such parents and organizations of the existence and purpose of
such centers.
``(h) Review.--The State educational agency shall review the local
educational agency's parental involvement policies and practices to
determine if the policies and practices meet the requirements of this
section.
``SEC. 1119. <<NOTE: 20 USC 6319.>> QUALIFICATIONS FOR TEACHERS AND
PARAPROFESSIONALS.
``(a) Teacher Qualifications and Measurable Objectives.--
``(1) In general.--Beginning with the first day of the first
school year after the date of enactment of the No Child Left
Behind Act of 2001, each local educational agency receiving
assistance under this part shall ensure that all teachers hired
after such day and teaching in a program supported with funds
under this part are highly qualified.
``(2) State plan.--As part of the plan described in section
1111, each State educational agency receiving assistance under
this part shall develop a plan to ensure that all teachers
teaching in core academic subjects within the State are highly
qualified not later than the end of the 2005-2006 school year.
Such plan shall establish annual measurable objectives for each
local educational agency and school that, at a minimum--
``(A) <<NOTE: Deadline.>> shall include an annual
increase in the percentage of highly qualified teachers
at each local educational agency and school, to ensure
that all teachers teaching in core
[[Page 115 STAT. 1506]]
academic subjects in each public elementary school and
secondary school are highly qualified not later than the
end of the 2005-2006 school year;
``(B) shall include an annual increase in the
percentage of teachers who are receiving high-quality
professional development to enable such teachers to
become highly qualified and successful classroom
teachers; and
``(C) may include such other measures as the State
educational agency determines to be appropriate to
increase teacher qualifications.
``(3) <<NOTE: Deadline.>> Local plan.--As part of the plan
described in section 1112, each local educational agency
receiving assistance under this part shall develop a plan to
ensure that all teachers teaching within the school district
served by the local educational agency are highly qualified not
later than the end of the 2005-2006 school year.
``(b) <<NOTE: Deadlines.>> Reports.--
``(1) Annual state and local reports.--
``(A) Local reports.--Each State educational agency
described in subsection (a)(2) shall require each local
educational agency receiving funds under this part to
publicly report, each year, beginning with the 2002-2003
school year, the annual progress of the local
educational agency as a whole and of each of the schools
served by the agency, in meeting the measurable
objectives described in subsection (a)(2).
``(B) State reports.--Each State educational agency
receiving assistance under this part shall prepare and
submit each year, beginning with the 2002-2003 school
year, a report to the Secretary, describing the State
educational agency's progress in meeting the measurable
objectives described in subsection (a)(2).
``(C) Information from other reports.--A State
educational agency or local educational agency may
submit information from the reports described in section
1111(h) for the purposes of this subsection, if such
report is modified, as may be necessary, to contain the
information required by this subsection, and may submit
such information as a part of the reports required under
section 1111(h).
``(2) Annual reports by the secretary.--Each year, beginning
with the 2002-2003 school year, the Secretary shall publicly
report the annual progress of State educational agencies, local
educational agencies, and schools, in meeting the measurable
objectives described in subsection (a)(2).
``(c) New Paraprofessionals.--
``(1) In general.--Each local educational agency receiving
assistance under this part shall ensure that all
paraprofessionals hired after the date of enactment of the No
Child Left Behind Act of 2001 and working in a program supported
with funds under this part shall have--
``(A) completed at least 2 years of study at an
institution of higher education;
``(B) obtained an associate's (or higher) degree; or
``(C) met a rigorous standard of quality and can
demonstrate, through a formal State or local academic
assessment--
[[Page 115 STAT. 1507]]
``(i) knowledge of, and the ability to assist
in instructing, reading, writing, and mathematics;
or
``(ii) knowledge of, and the ability to assist
in instructing, reading readiness, writing
readiness, and mathematics readiness, as
appropriate.
``(2) Clarification.--The receipt of a secondary school
diploma (or its recognized equivalent) shall be necessary but
not sufficient to satisfy the requirements of paragraph (1)(C).
``(d) <<NOTE: Deadline.>> Existing Paraprofessionals.--Each local
educational agency receiving assistance under this part shall ensure
that all paraprofessionals hired before the date of enactment of the No
Child Left Behind Act of 2001, and working in a program supported with
funds under this part shall, not later than 4 years after the date of
enactment satisfy the requirements of subsection (c).
``(e) Exceptions for Translation and Parental Involvement
Activities.--Subsections (c) and (d) shall not apply to a
paraprofessional--
``(1) who is proficient in English and a language other than
English and who provides services primarily to enhance the
participation of children in programs under this part by acting
as a translator; or
``(2) whose duties consist solely of conducting parental
involvement activities consistent with section 1118.
``(f) General Requirement for All Paraprofessionals.--Each local
educational agency receiving assistance under this part shall ensure
that all paraprofessionals working in a program supported with funds
under this part, regardless of the paraprofessionals' hiring date, have
earned a secondary school diploma or its recognized equivalent.
``(g) Duties of Paraprofessionals.--
``(1) In general.--Each local educational agency receiving
assistance under this part shall ensure that a paraprofessional
working in a program supported with funds under this part is not
assigned a duty inconsistent with this subsection.
``(2) Responsibilities paraprofessionals may be assigned.--A
paraprofessional described in paragraph (1) may be assigned--
``(A) to provide one-on-one tutoring for eligible
students, if the tutoring is scheduled at a time when a
student would not otherwise receive instruction from a
teacher;
``(B) to assist with classroom management, such as
organizing instructional and other materials;
``(C) to provide assistance in a computer
laboratory;
``(D) to conduct parental involvement activities;
``(E) to provide support in a library or media
center;
``(F) to act as a translator; or
``(G) to provide instructional services to students
in accordance with paragraph (3).
``(3) Additional limitations.--A paraprofessional described
in paragraph (1)--
``(A) may not provide any instructional service to a
student unless the paraprofessional is working under the
direct supervision of a teacher consistent with section
1119; and
``(B) may assume limited duties that are assigned to
similar personnel who are not working in a program
supported with funds under this part, including duties
beyond
[[Page 115 STAT. 1508]]
classroom instruction or that do not benefit
participating children, so long as the amount of time
spent on such duties is the same proportion of total
work time as prevails with respect to similar personnel
at the same school.
``(h) Use of Funds.--A local educational agency receiving funds
under this part may use such funds to support ongoing training and
professional development to assist teachers and paraprofessionals in
satisfying the requirements of this section.
``(i) Verification of Compliance.--
``(1) In general.--In verifying compliance with this
section, each local educational agency, at a minimum, shall
require that the principal of each school operating a program
under section 1114 or 1115 attest annually in writing as to
whether such school is in compliance with the requirements of
this section.
``(2) Availability of information.--Copies of attestations
under paragraph (1)--
``(A) shall be maintained at each school operating a
program under section 1114 or 1115 and at the main
office of the local educational agency; and
``(B) shall be available to any member of the
general public on request.
``(j) Combinations of Funds.--Funds provided under this part that
are used for professional development purposes may be combined with
funds provided under title II of this Act, other Acts, and other
sources.
``(k) Special Rule.--Except as provided in subsection (l), no State
educational agency shall require a school or a local educational agency
to expend a specific amount of funds for professional development
activities under this part, except that this paragraph shall not apply
with respect to requirements under section 1116(c)(3).
``(l) <<NOTE: Deadline.>> Minimum Expenditures.--Each local
educational agency that receives funds under this part shall use not
less than 5 percent, or more than 10 percent, of such funds for each of
fiscal years 2002 and 2003, and not less than 5 percent of the funds for
each subsequent fiscal year, for professional development activities to
ensure that teachers who are not highly qualified become highly
qualified not later than the end of the 2005-2006 school year.
``SEC. 1120. <<NOTE: 20 USC 6320.>> PARTICIPATION OF CHILDREN ENROLLED
IN PRIVATE SCHOOLS.
``(a) General Requirement.--
``(1) In general.--To the extent consistent with the number
of eligible children identified under section 1115(b) in the
school district served by a local educational agency who are
enrolled in private elementary schools and secondary schools, a
local educational agency shall, after timely and meaningful
consultation with appropriate private school officials, provide
such children, on an equitable basis, special educational
services or other benefits under this part (such as dual
enrollment, educational radio and television, computer equipment
and materials, other technology, and mobile educational services
and equipment) that address their needs, and shall ensure that
teachers and families of the children participate, on an
equitable basis, in services and activities developed pursuant
to sections 1118 and 1119.
[[Page 115 STAT. 1509]]
``(2) Secular, neutral, nonideological.--Such educational
services or other benefits, including materials and equipment,
shall be secular, neutral, and nonideological.
``(3) Equity.--Educational services and other benefits for
such private school children shall be equitable in comparison to
services and other benefits for public school children
participating under this part, and shall be provided in a timely
manner.
``(4) Expenditures.--Expenditures for educational services
and other benefits to eligible private school children shall be
equal to the proportion of funds allocated to participating
school attendance areas based on the number of children from
low-income families who attend private schools, which the local
educational agency may determine each year or every 2 years.
``(5) Provision of services.--The local educational agency
may provide services under this section directly or through
contracts with public and private agencies, organizations, and
institutions.
``(b) Consultation.--
``(1) In general.--To ensure timely and meaningful
consultation, a local educational agency shall consult with
appropriate private school officials during the design and
development of such agency's programs under this part, on issues
such as--
``(A) how the children's needs will be identified;
``(B) what services will be offered;
``(C) how, where, and by whom the services will be
provided;
``(D) how the services will be academically assessed
and how the results of that assessment will be used to
improve those services;
``(E) the size and scope of the equitable services
to be provided to the eligible private school children,
and the proportion of funds that is allocated under
subsection (a)(4) for such services;
``(F) the method or sources of data that are used
under subsection (c) and section 1113(c)(1) to determine
the number of children from low-income families in
participating school attendance areas who attend private
schools;
``(G) how and when the agency will make decisions
about the delivery of services to such children,
including a thorough consideration and analysis of the
views of the private school officials on the provision
of services through a contract with potential third-
party providers; and
``(H) how, if the agency disagrees with the views of
the private school officials on the provision of
services through a contract, the local educational
agency will provide in writing to such private school
officials an analysis of the reasons why the local
educational agency has chosen not to use a contractor.
``(2) Timing.--Such consultation shall include meetings of
agency and private school officials and shall occur before the
local educational agency makes any decision that affects the
opportunities of eligible private school children to participate
in programs under this part. Such meetings shall continue
throughout implementation and assessment of services provided
under this section.
[[Page 115 STAT. 1510]]
``(3) Discussion.--Such consultation shall include a
discussion of service delivery mechanisms a local educational
agency can use to provide equitable services to eligible private
school children.
``(4) Documentation.--Each local educational agency shall
maintain in the agency's records and provide to the State
educational agency involved a written affirmation signed by
officials of each participating private school that the
consultation required by this section has occurred. If such
officials do not provide such affirmation within a reasonable
period of time, the local educational agency shall forward the
documentation that such consultation has taken place to the
State educational agency.
``(5) Compliance.--
``(A) In general.--A private school official shall
have the right to complain to the State educational
agency that the local educational agency did not engage
in consultation that was meaningful and timely, or did
not give due consideration to the views of the private
school official.
``(B) Procedure.--If the private school official
wishes to complain, the official shall provide the basis
of the noncompliance with this section by the local
educational agency to the State educational agency, and
the local educational agency shall forward the
appropriate documentation to the State educational
agency.
``(c) Allocation for Equitable Service to Private School Students.--
``(1) Calculation.--A local educational agency shall have
the final authority, consistent with this section, to calculate
the number of children, ages 5 through 17, who are from low-
income families and attend private schools by--
``(A) using the same measure of low income used to
count public school children;
``(B) using the results of a survey that, to the
extent possible, protects the identity of families of
private school students, and allowing such survey
results to be extrapolated if complete actual data are
unavailable;
``(C) applying the low-income percentage of each
participating public school attendance area, determined
pursuant to this section, to the number of private
school children who reside in that school attendance
area; or
``(D) using an equated measure of low income
correlated with the measure of low income used to count
public school children.
``(2) Complaint process.--Any dispute regarding low-income
data for private school students shall be subject to the
complaint process authorized in section 9505.
``(d) Public Control of Funds.--
``(1) In general.--The control of funds provided under this
part, and title to materials, equipment, and property purchased
with such funds, shall be in a public agency, and a public
agency shall administer such funds, materials, equipment, and
property.
``(2) Provision of services.--
``(A) Provider.--The provision of services under
this section shall be provided--
``(i) by employees of a public agency; or
[[Page 115 STAT. 1511]]
``(ii) through contract by such public agency
with an individual, association, agency, or
organization.
``(B) Requirement.--In the provision of such
services, such employee, individual, association,
agency, or organization shall be independent of such
private school and of any religious organization, and
such employment or contract shall be under the control
and supervision of such public agency.
``(e) Standards for a Bypass.--If a local educational agency is
prohibited by law from providing for the participation in programs on an
equitable basis of eligible children enrolled in private elementary
schools and secondary schools, or if the Secretary determines that a
local educational agency has substantially failed or is unwilling, to
provide for such participation, as required by this section, the
Secretary shall--
``(1) waive the requirements of this section for such local
educational agency;
``(2) arrange for the provision of services to such children
through arrangements that shall be subject to the requirements
of this section and sections 9503 and 9504; and
``(3) in making the determination under this subsection,
consider one or more factors, including the quality, size,
scope, and location of the program and the opportunity of
eligible children to participate.
``SEC. 1120A. FISCAL REQUIREMENTS. <<NOTE: 20 USC 6321.>>
``(a) Maintenance of Effort.--A local educational agency may receive
funds under this part for any fiscal year only if the State educational
agency involved finds that the local educational agency has maintained
the agency's fiscal effort in accordance with section 9521.
``(b) Federal Funds To Supplement, Not Supplant, Non-Federal
Funds.--
``(1) In general.--A State educational agency or local
educational agency shall use Federal funds received under this
part only to supplement the funds that would, in the absence of
such Federal funds, be made available from non-Federal sources
for the education of pupils participating in programs assisted
under this part, and not to supplant such funds.
``(2) Special rule.--No local educational agency shall be
required to provide services under this part through a
particular instructional method or in a particular instructional
setting in order to demonstrate such agency's compliance with
paragraph (1).
``(c) Comparability of Services.--
``(1) In general.--
``(A) Comparable services.--Except as provided in
paragraphs (4) and (5), a local educational agency may
receive funds under this part only if State and local
funds will be used in schools served under this part to
provide services that, taken as a whole, are at least
comparable to services in schools that are not receiving
funds under this part.
``(B) Substantially comparable services.--If the
local educational agency is serving all of such agency's
schools under this part, such agency may receive funds
under this part only if such agency will use State and
[[Page 115 STAT. 1512]]
local funds to provide services that, taken as a whole,
are substantially comparable in each school.
``(C) Basis.--A local educational agency may meet
the requirements of subparagraphs (A) and (B) on a
grade-span by grade-span basis or a school-by-school
basis.
``(2) Written assurance.--
``(A) Equivalence.--A local educational agency shall
be considered to have met the requirements of paragraph
(1) if such agency has filed with the State educational
agency a written assurance that such agency has
established and implemented--
``(i) a local educational agency-wide salary
schedule;
``(ii) a policy to ensure equivalence among
schools in teachers, administrators, and other
staff; and
``(iii) a policy to ensure equivalence among
schools in the provision of curriculum materials
and instructional supplies.
``(B) Determinations.--For the purpose of this
subsection, in the determination of expenditures per
pupil from State and local funds, or instructional
salaries per pupil from State and local funds, staff
salary differentials for years of employment shall not
be included in such determinations.
``(C) Exclusions.--A local educational agency need
not include unpredictable changes in student enrollment
or personnel assignments that occur after the beginning
of a school year in determining comparability of
services under this subsection.
``(3) Procedures and records.--Each local educational agency
assisted under this part shall--
``(A) develop procedures for compliance with this
subsection; and
``(B) maintain records that are updated biennially
documenting such agency's compliance with this
subsection.
``(4) Inapplicability.--This subsection shall not apply to a
local educational agency that does not have more than one
building for each grade span.
``(5) Compliance.--For the purpose of determining compliance
with paragraph (1), a local educational agency may exclude State
and local funds expended for--
``(A) language instruction educational programs; and
``(B) the excess costs of providing services to
children with disabilities as determined by the local
educational agency.
``(d) Exclusion of Funds.--For the purpose of complying with
subsections (b) and (c), a State educational agency or local educational
agency may exclude supplemental State or local funds expended in any
school attendance area or school for programs that meet the intent and
purposes of this part.
``SEC. 1120B. COORDINATION REQUIREMENTS. <<NOTE: 20 USC 6322.>>
``(a) In General.--Each local educational agency receiving
assistance under this part shall carry out the activities described in
subsection (b) with Head Start agencies and, if feasible, other entities
carrying out early childhood development programs such as the Early
Reading First program.
[[Page 115 STAT. 1513]]
``(b) Activities.--The activities referred to in subsection (a) are
activities that increase coordination between the local educational
agency and a Head Start agency and, if feasible, other entities carrying
out early childhood development programs, such as the Early Reading
First program, serving children who will attend the schools of the local
educational agency, including--
``(1) developing and implementing a systematic procedure for
receiving records regarding such children, transferred with
parental consent from a Head Start program or, where applicable,
another early childhood development program such as the Early
Reading First program;
``(2) establishing channels of communication between school
staff and their counterparts (including teachers, social
workers, and health staff) in such Head Start agencies or other
entities carrying out early childhood development programs such
as the Early Reading First program, as appropriate, to
facilitate coordination of programs;
``(3) conducting meetings involving parents, kindergarten or
elementary school teachers, and Head Start teachers or, if
appropriate, teachers from other early childhood development
programs such as the Early Reading First program, to discuss the
developmental and other needs of individual children;
``(4) organizing and participating in joint transition-
related training of school staff, Head Start program staff,
Early Reading First program staff, and, where appropriate, other
early childhood development program staff; and
``(5) linking the educational services provided by such
local educational agency with the services provided by local
Head Start agencies and entities carrying out Early Reading
First programs.
``(c) Coordination of Regulations.--The Secretary shall work with
the Secretary of Health and Human Services to coordinate regulations
promulgated under this part with regulations promulgated under the Head
Start Act.
``Subpart 2--Allocations
``SEC. 1121. <<NOTE: 20 USC 6331.>> GRANTS FOR THE OUTLYING AREAS AND
THE SECRETARY OF THE INTERIOR.
``(a) Reservation of Funds.--From the amount appropriated for
payments to States for any fiscal year under section 1002(a) and
1125A(f), the Secretary shall reserve a total of 1 percent to provide
assistance to--
``(1) the outlying areas in the amount determined in
accordance with subsection (b); and
``(2) the Secretary of the Interior in the amount necessary
to make payments pursuant to subsection (d).
``(b) Assistance to Outlying Areas.--
``(1) Funds reserved.--From the amount made available for
any fiscal year under subsection (a), the Secretary shall award
grants to local educational agencies in the outlying areas.
``(2) Competitive grants.--Until each appropriate outlying
area enters into an agreement for extension of United States
educational assistance under the Compact of Free Association
after the date of enactment of the No Child Left Behind Act of
2001, the Secretary shall carry out the competition described
[[Page 115 STAT. 1514]]
in paragraph (3), except that the amount reserved to carry out
such competition shall not exceed $5,000,000.
``(3) Limitation for competitive grants.--
``(A) Competitive grants.--The Secretary shall use
funds described in paragraph (2) to award grants to the
outlying areas and freely associated States to carry out
the purposes of this part.
``(B) Award basis.--The Secretary shall award grants
under subparagraph (A) on a competitive basis, taking
into consideration the recommendations of the Pacific
Region Educational Laboratory in Honolulu, Hawaii.
``(C) Uses.--Except as provided in subparagraph (D),
grant funds awarded under this paragraph may be used
only--
``(i) for programs described in this Act,
including teacher training, curriculum
development, instructional materials, or general
school improvement and reform; and
``(ii) to provide direct educational services
that assist all students with meeting challenging
State academic content standards.
``(D) Administrative costs.--The Secretary may
provide not more than 5 percent of the amount reserved
for grants under this paragraph to pay the
administrative costs of the Pacific Region Educational
Laboratory under subparagraph (B).
``(4) Special rule.--The provisions of Public Law 95-134,
permitting the consolidation of grants by the outlying areas,
shall not apply to funds provided to the freely associated
States under this section.
``(c) Definitions.--For the purpose of subsections (a) and (b)--
``(1) the term `freely associated states' means the Republic
of the Marshall Islands, the Federated States of Micronesia, and
the Republic of Palau; and
``(2) the term `outlying area' means the United States
Virgin Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands.
``(d) Allotment to the Secretary of the Interior.--
``(1) In general.--The amount allotted for payments to the
Secretary of the Interior under subsection (a)(2) for any fiscal
year shall be, as determined pursuant to criteria established by
the Secretary, the amount necessary to meet the special
educational needs of--
``(A) Indian children on reservations served by
elementary schools and secondary schools for Indian
children operated or supported by the Department of the
Interior; and
``(B) out-of-State Indian children in elementary
schools and secondary schools in local educational
agencies under special contracts with the Department of
the Interior.
``(2) Payments.--From the amount allotted for payments to
the Secretary of the Interior under subsection (a)(2), the
Secretary of the Interior shall make payments to local
educational agencies, on such terms as the Secretary determines
will best carry out the purposes of this part, with respect to
out-of-State Indian children described in paragraph (1). The
[[Page 115 STAT. 1515]]
amount of such payment may not exceed, for each such child, the
greater of--
``(A) 40 percent of the average per-pupil
expenditure in the State in which the agency is located;
or
``(B) 48 percent of such expenditure in the United
States.
``SEC. 1122. ALLOCATIONS TO STATES. <<NOTE: 20 USC 6332.>>
``(a) Allocation Formula.--Of the amount appropriated under section
1002(a) to carry out this part for each of fiscal years 2002-2007
(referred to in this subsection as the current fiscal year)--
``(1) an amount equal to the amount made available to carry
out section 1124 for fiscal year 2001 shall be allocated in
accordance with section 1124;
``(2) an amount equal to the amount made available to carry
out section 1124A for fiscal year 2001 shall be allocated in
accordance with section 1124A; and
``(3) an amount equal to 100 percent of the amount, if any,
by which the amount made available to carry out sections 1124,
1124A, and 1125 for the current fiscal year for which the
determination is made exceeds the amount available to carry out
sections 1124 and 1124A for fiscal year 2001 shall be allocated
in accordance with section 1125.
``(b) Adjustments Where Necessitated by Appropriations.--
``(1) In general.--If the sums available under this subpart
for any fiscal year are insufficient to pay the full amounts
that all local educational agencies in States are eligible to
receive under sections 1124, 1124A, and 1125 for such year, the
Secretary shall ratably reduce the allocations to such local
educational agencies, subject to subsections (c) and (d) of this
section.
``(2) Additional funds.--If additional funds become
available for making payments under sections 1124, 1124A, and
1125 for such fiscal year, allocations that were reduced under
paragraph (1) shall be increased on the same basis as they were
reduced.
``(c) Hold-Harmless Amounts.--
``(1) Amounts for sections 1124, 1124a, and 1125.--For each
fiscal year, the amount made available to each local educational
agency under each of sections 1124, 1124A, and 1125 shall be--
``(A) not less than 95 percent of the amount made
available for the preceding fiscal year if the number of
children counted for grants under section 1124 is not
less than 30 percent of the total number of children
aged 5 to 17 years, inclusive, in the local educational
agency;
``(B) not less than 90 percent of the amount made
available for the preceding fiscal year if the
percentage described in subparagraph (A) is between 15
percent and 30 percent; and
``(C) not less than 85 percent of the amount made
available for the preceding fiscal year if the
percentage described in subparagraph (A) is below 15
percent.
``(2) Payments.--If sufficient funds are appropriated, the
amounts described in paragraph (1) shall be paid to all local
educational agencies that received grants under section 1124A
for the preceding fiscal year, regardless of whether the local
[[Page 115 STAT. 1516]]
educational agency meets the minimum eligibility criteria for
that fiscal year described in section 1124A(a)(1)(A) except that
a local educational agency that does not meet such minimum
eligibility criteria for 4 consecutive years shall no longer be
eligible to receive a hold harmless amount referred to in
paragraph (1).
``(3) Applicability.--Notwithstanding any other provision of
law, the Secretary shall not take into consideration the hold-
harmless provisions of this subsection for any fiscal year for
purposes of calculating State or local allocations for the
fiscal year under any program administered by the Secretary
other than a program authorized under this part.
``(4) <<NOTE: Applicability.>> Population data.--For any
fiscal year for which the Secretary calculates grants on the
basis of population data for counties, the Secretary shall apply
the hold-harmless percentages in paragraphs (1) and (2) to
counties and, if the Secretary's allocation for a county is not
sufficient to meet the hold-harmless requirements of this
subsection for every local educational agency within that
county, the State educational agency shall reallocate funds
proportionately from all other local educational agencies in the
State that are receiving funds in excess of the hold-harmless
amounts specified in this subsection.
``(d) Ratable Reductions.--
``(1) In general.--If the sums made available under this
subpart for any fiscal year are insufficient to pay the full
amounts that local educational agencies in all States are
eligible to receive under subsection (c) for such year, the
Secretary shall ratably reduce such amounts for such year.
``(2) Additional funds.--If additional funds become
available for making payments under subsection (c) for such
fiscal year, amounts that were reduced under paragraph (1) shall
be increased on the same basis as such amounts were reduced.
``(e) Definition.--For the purpose of this section and sections
1124, 1124A, 1125, and 1125A, the term `State' means each of the 50
States, the District of Columbia, and the Commonwealth of Puerto Rico.
``SEC. 1124. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES. <<NOTE: 20 USC
6333.>>
``(a) Amount of Grants.--
``(1) Grants for local educational agencies and puerto
rico.--Except as provided in paragraph (4) and in section 1126,
the grant that a local educational agency is eligible to receive
under this section for a fiscal year is the amount determined by
multiplying--
``(A) the number of children counted under
subsection (c); and
``(B) 40 percent of the average per-pupil
expenditure in the State, except that the amount
determined under this subparagraph shall not be less
than 32 percent, or more than 48 percent, of the average
per-pupil expenditure in the United States.
``(2) Calculation of grants.--
``(A) Allocations to local educational agencies.--
The Secretary shall calculate grants under this section
on the basis of the number of children counted under
subsection (c) for local educational agencies, unless
the
[[Page 115 STAT. 1517]]
Secretary and the Secretary of Commerce determine that
some or all of those data are unreliable or that their
use would be otherwise inappropriate, in which case--
``(i) <<NOTE: Public information.>> the two
Secretaries shall publicly disclose the reasons
for their determination in detail; and
``(ii) <<NOTE: Applicability.>> paragraph (3)
shall apply.
``(B) Allocations to large and small local
educational agencies.--
``(i) For any fiscal year to which this
paragraph applies, the Secretary shall calculate
grants under this section for each local
educational agency.
``(ii) The amount of a grant under this
section for each large local educational agency
shall be the amount determined under clause (i).
``(iii) For small local educational agencies,
the State educational agency may either--
``(I) distribute grants under this
section in amounts determined by the
Secretary under clause (i); or
``(II) use an alternative method
approved by the Secretary to distribute
the portion of the State's total grants
under this section that is based on
those small agencies.
``(iv) An alternative method under clause
(iii)(II) shall be based on population data that
the State educational agency determines best
reflect the current distribution of children in
poor families among the State's small local
educational agencies that meet the eligibility
criteria of subsection (b).
``(v) <<NOTE: Deadline.>> If a small local
educational agency is dissatisfied with the
determination of its grant by the State
educational agency under clause (iii)(II), it may
appeal that determination to the Secretary, who
shall respond not later than 45 days after receipt
of such appeal.
``(vi) As used in this subparagraph--
``(I) the term `large local
educational agency' means a local
educational agency serving an area with
a total population of 20,000 or more;
and
``(II) the term `small local
educational agency' means a local
educational agency serving an area with
a total population of less than 20,000.
``(3) Allocations to counties.--
``(A) Calculation.--For any fiscal year to which
this paragraph applies, the Secretary shall calculate
grants under this section on the basis of the number of
children counted under subsection (c) for counties, and
State educational agencies shall suballocate county
amounts to local educational agencies, in accordance
with regulations issued by the Secretary.
``(B) Direct allocations.--In any State in which a
large number of local educational agencies overlap
county boundaries, or for which the State believes it
has data that would better target funds than allocating
them by county, the State educational agency may apply
to the Secretary for authority to make the allocations
under this subpart for a particular fiscal year directly
to local educational agencies without regard to
counties.
[[Page 115 STAT. 1518]]
``(C) Allocations to local educational agencies.--If
the Secretary approves the State educational agency's
application under subparagraph (B), the State
educational agency shall provide the Secretary an
assurance that such allocations shall be made--
``(i) using precisely the same factors for
determining a grant as are used under this
subpart; or
``(ii) using data that the State educational
agency submits to the Secretary for approval that
more accurately target poverty.
``(D) Appeal.--The State educational agency shall
provide the Secretary an assurance that it will
establish a procedure through which a local educational
agency that is dissatisfied with its determinations
under subparagraph (B) may appeal directly to the
Secretary for a final determination.
``(4) Puerto rico.--
``(A) In general.--For each fiscal year, the grant
that the Commonwealth of Puerto Rico shall be eligible
to receive under this section shall be the amount
determined by multiplying the number of children counted
under subsection (c) for the Commonwealth of Puerto Rico
by the product of--
``(i) subject to subparagraph (B), the
percentage that the average per-pupil expenditure
in the Commonwealth of Puerto Rico is of the
lowest average per-pupil expenditure of any of the
50 States; and
``(ii) 32 percent of the average per-pupil
expenditure in the United States.
``(B) Minimum percentage.--The percentage in
subparagraph (A)(i) shall not be less than--
``(i) for fiscal year 2002, 77.5 percent;
``(ii) for fiscal year 2003, 80.0 percent;
``(iii) for fiscal year 2004, 82.5 percent;
``(iv) for fiscal year 2005, 85.0 percent;
``(v) for fiscal year 2006, 92.5 percent; and
``(vi) for fiscal year 2007 and succeeding
fiscal years, 100.0 percent.
``(C) Limitation.--If the application of
subparagraph (B) would result in any of the 50 States or
the District of Columbia receiving less under this
subpart than it received under this subpart for the
preceding fiscal year, the percentage in subparagraph
(A) shall be the greater of--
``(i) the percentage in subparagraph (A)(i);
``(ii) the percentage specified in
subparagraph (B) for the preceding fiscal year; or
``(iii) the percentage used for the preceding
fiscal year.
``(b) Minimum Number of Children To Qualify.--A local educational
agency is eligible for a basic grant under this section for any fiscal
year only if the number of children counted under subsection (c) for
that agency is both--
``(1) 10 or more; and
``(2) more than 2 percent of the total school-age population
in the agency's jurisdiction.
``(c) Children To Be Counted.--
[[Page 115 STAT. 1519]]
``(1) Categories of children.--The number of children to be
counted for purposes of this section is the aggregate of--
``(A) the number of children aged 5 to 17,
inclusive, in the school district of the local
educational agency from families below the poverty level
as determined under paragraph (2);
``(B) the number of children (determined under
paragraph (4) for either the preceding year as described
in that paragraph, or for the second preceding year, as
the Secretary finds appropriate) aged 5 to 17,
inclusive, in the school district of such agency in
institutions for neglected and delinquent children
(other than such institutions operated by the United
States), but not counted pursuant to subpart 1 of part D
for the purposes of a grant to a State agency, or being
supported in foster homes with public funds; and
``(C) the number of children aged 5 to 17,
inclusive, in the school district of such agency from
families above the poverty level as determined under
paragraph (4).
``(2) Determination of number of children.--For the purposes
of this section, the Secretary shall determine the number of
children aged 5 to 17, inclusive, from families below the
poverty level on the basis of the most recent satisfactory data,
described in paragraph (3), available from the Department of
Commerce. The District of Columbia and the Commonwealth of
Puerto Rico shall be treated as individual local educational
agencies. If a local educational agency contains two or more
counties in their entirety, then each county will be treated as
if such county were a separate local educational agency for
purposes of calculating grants under this part. The total of
grants for such counties shall be allocated to such a local
educational agency, which local educational agency shall
distribute to schools in each county within such agency a share
of the local educational agency's total grant that is no less
than the county's share of the population counts used to
calculate the local educational agency's grant.
``(3) Population updates.--
``(A) In general.--In fiscal year 2002 and each
subsequent fiscal year, the Secretary shall use updated
data on the number of children, aged 5 to 17, inclusive,
from families below the poverty level for counties or
local educational agencies, published by the Department
of Commerce, unless the Secretary and the Secretary of
Commerce determine that the use of the updated
population data would be inappropriate or unreliable. If
appropriate and reliable data are not available
annually, the Secretary shall use data which are updated
every 2 years.
``(B) <<NOTE: Public information.>> Inappropriate
or unreliable data.--If the Secretary and the Secretary
of Commerce determine that some or all of the data
referred to in subparagraph (A) are inappropriate or
unreliable, the Secretary and the Secretary of Commerce
shall publicly disclose their reasons.
``(C) Criteria of poverty.--In determining the
families that are below the poverty level, the Secretary
shall use the criteria of poverty used by the Bureau of
the Census in compiling the most recent decennial
census,
[[Page 115 STAT. 1520]]
as the criteria have been updated by increases in the
Consumer Price Index for All Urban Consumers, published
by the Bureau of Labor Statistics.
``(4) Other children to be counted.--
``(A) For the purpose of this section, the Secretary
shall determine the number of children aged 5 to 17,
inclusive, from families above the poverty level on the
basis of the number of such children from families
receiving an annual income, in excess of the current
criteria of poverty, from payments under a State program
funded under part A of title IV of the Social Security
Act; and in making such determinations, the Secretary
shall use the criteria of poverty used by the Bureau of
the Census in compiling the most recent decennial census
for a family of four in such form as those criteria have
been updated by increases in the Consumer Price Index
for All Urban Consumers, published by the Bureau of
Labor Statistics.
``(B) The Secretary shall determine the number of
such children and the number of children aged 5 through
17 living in institutions for neglected or delinquent
children, or being supported in foster homes with public
funds, on the basis of the caseload data for the month
of October of the preceding fiscal year (using, in the
case of children described in the preceding sentence,
the criteria of poverty and the form of such criteria
required by such sentence which were determined for the
calendar year preceding such month of October) or, to
the extent that such data are not available to the
Secretary before January of the calendar year in which
the Secretary's determination is made, then on the basis
of the most recent reliable data available to the
Secretary at the time of such determination.
``(C) <<NOTE: Deadline.>> Except for the data on
children living in institutions for neglected or
delinquent children, the Secretary of Health and Human
Services shall collect and transmit the information
required by this subparagraph to the Secretary not later
than January 1 of each year.
``(D) For the purpose of this section, the Secretary
shall consider all children who are in correctional
institutions to be living in institutions for delinquent
children.
``(5) Estimate.--When requested by the Secretary, the
Secretary of Commerce shall make a special updated estimate of
the number of children of such ages who are from families below
the poverty level (as determined under paragraph (1)(A)) in each
school district, and the Secretary is authorized to pay (either
in advance or by way of reimbursement) the Secretary of Commerce
the cost of making this special estimate. The Secretary of
Commerce shall give consideration to any request of the chief
executive of a State for the collection of additional census
information.
``(d) State Minimum.--Notwithstanding section 1122, the aggregate
amount allotted for all local educational agencies within a State may
not be less than the lesser of--
``(1) 0.25 percent of the total amount allocated to States
under this section for fiscal year 2001, plus 0.35 percent of
the total amount allocated to States under this section in
excess of the amount allocated for fiscal year 2001; or
[[Page 115 STAT. 1521]]
``(2) the average of--
``(A) the amount calculated in paragraph (1), above;
and
``(B) the number of children in such State counted
under subsection (c) in the fiscal year multiplied by
150 percent of the national average per-pupil payment
made with funds available under this section for that
year.
``SEC. 1124A. <<NOTE: 20 USC 6334.>> CONCENTRATION GRANTS TO LOCAL
EDUCATIONAL AGENCIES.
``(a) Eligibility for and Amount of Grants.--
``(1) In general.--(A) Except as otherwise provided in this
paragraph, each local educational agency which is eligible for a
grant under section 1124 for any fiscal year is eligible for an
additional grant under this section for that fiscal year if the
number of children counted under section 1124(c) in the agency
exceeds either--
``(i) 6,500; or
``(ii) 15 percent of the total number of children
aged 5 through 17 in the agency.
``(B) Notwithstanding section 1122, no State shall receive
less than the lesser of--
``(i) 0.25 percent of the total amount allocated to
States under this section for fiscal year 2001, plus
0.35 percent of the total amount allocated to States
under this section in excess of the amount allocated for
fiscal year 2001; or
``(ii) the average of--
``(I) the amount calculated under clause (i);
and
``(II) the greater of--
``(aa) $340,000; or
``(bb) the number of children in
such State counted for purposes of this
section in that fiscal year multiplied
by 150 percent of the national average
per-pupil payment made with funds
available under this section for that
year.
``(2) Determination.--For each county or local educational
agency eligible to receive an additional grant under this
section for any fiscal year, the Secretary shall determine the
product of--
``(A) the number of children counted under section
1124(c) for that fiscal year; and
``(B) the amount in section 1124(a)(1)(B) for each
State except the Commonwealth of Puerto Rico, and the
amount in section 1124(a)(4) for the Commonwealth of
Puerto Rico.
``(3) Amount.--The amount of the additional grant for which
an eligible local educational agency or county is eligible under
this section for any fiscal year shall be an amount which bears
the same ratio to the amount available to carry out this section
for that fiscal year as the product determined under paragraph
(2) for such local educational agency for that fiscal year bears
to the sum of such products for all local educational agencies
in the United States for that fiscal year.
``(4) Local allocations.--(A) Grant amounts under this
section shall be determined in accordance with section
1124(a)(2), (3), and (4).
[[Page 115 STAT. 1522]]
``(B) For any fiscal year for which the Secretary allocates
funds under this section on the basis of counties, a State may
reserve not more than 2 percent of its allocation under this
section to make grants to local educational agencies that meet
the criteria of paragraph (1)(A)(i) or (ii) and are in
ineligible counties that do not meet these criteria.
``(b) Small States.--In any State for which on the date of enactment
of the No Child Left Behind Act of 2001 the number of children counted
under section 1124(c) is less than 0.25 percent of the number of those
children counted for all States, the State educational agency shall
allocate funds under this section among the local educational agencies
in the State either--
``(1) in accordance with paragraphs (2) and (4) of
subsection (a); or
``(2) based on their respective concentrations and numbers
of children counted under section 1124(c), except that only
those local educational agencies with concentrations or numbers
of children counted under section 1124(c) that exceed the
statewide average percentage of such children or the statewide
average number of such children shall receive any funds on the
basis of this paragraph.
``SEC. 1125. <<NOTE: 20 USC 6335.>> TARGETED GRANTS TO LOCAL
EDUCATIONAL AGENCIES.
``(a) Eligibility of Local Educational Agencies.--
``(1) In general.--A local educational agency in a State is
eligible to receive a targeted grant under this section for any
fiscal year if--
``(A) the number of children in the local
educational agency counted under section 1124(c), before
application of the weighted child count described in
subsection (c), is at least 10; and
``(B) if the number of children counted for grants
under section 1124(c), before application of the
weighted child count described in subsection (c), is at
least 5 percent of the total number of children aged 5
to 17 years, inclusive, in the school district of the
local educational agency.
``(2) Special rule.--For any fiscal year for which the
Secretary allocates funds under this section on the basis of
counties, funds made available as a result of applying this
subsection shall be reallocated by the State educational agency
to other eligible local educational agencies in the State in
proportion to the distribution of other funds under this
section.
``(b) Grants for Local Educational Agencies, the District of
Columbia, and the Commonwealth of Puerto Rico.--
``(1) In general.--The amount of the grant that a local
educational agency in a State (other than the Commonwealth of
Puerto Rico) is eligible to receive under this section for any
fiscal year shall be the product of--
``(A) the weighted child count determined under
subsection (c); and
``(B) the amount determined under section
1124(a)(1)(B).
``(2) Puerto rico.--For each fiscal year, the amount of the
grant the Commonwealth of Puerto Rico is eligible to receive
under this section shall be equal to the number of children
counted under subsection (c) for the Commonwealth of Puerto
[[Page 115 STAT. 1523]]
Rico, multiplied by the amount determined in section 1124(a)(4)
for the Commonwealth of Puerto Rico.
``(c) Weighted Child Count.--
``(1) Weights for allocations to counties.--
``(A) In general.--For each fiscal year for which
the Secretary uses county population data to calculate
grants, the weighted child count used to determine a
county's allocation under this section is the larger of
the two amounts determined under subparagraphs (B) and
(C).
``(B) By percentage of children.--The amount
referred to in subparagraph (A) is determined by
adding--
``(i) the number of children determined under
section 1124(c) for that county who constitute not
more than 15.00 percent, inclusive, of the
county's total population aged 5 to 17, inclusive,
multiplied by 1.0;
``(ii) the number of such children who
constitute more than 15.00 percent, but not more
than 19.00 percent, of such population, multiplied
by 1.75;
``(iii) the number of such children who
constitute more than 19.00 percent, but not more
than 24.20 percent, of such population, multiplied
by 2.5;
``(iv) the number of such children who
constitute more than 24.20 percent, but not more
than 29.20 percent, of such population, multiplied
by 3.25; and
``(v) the number of such children who
constitute more than 29.20 percent of such
population, multiplied by 4.0.
``(C) By number of children.--The amount referred to
in subparagraph (A) is determined by adding--
``(i) the number of children determined under
section 1124(c) who constitute not more than
2,311, inclusive, of the county's total population
aged 5 to 17, inclusive, multiplied by 1.0;
``(ii) the number of such children between
2,312 and 7,913, inclusive, in such population,
multiplied by 1.5;
``(iii) the number of such children between
7,914 and 23,917, inclusive, in such population,
multiplied by 2.0;
``(iv) the number of such children between
23,918 and 93,810, inclusive, in such population,
multiplied by 2.5; and
``(v) the number of such children in excess of
93,811 in such population, multiplied by 3.0.
``(D) Puerto rico.--Notwithstanding subparagraph
(A), the weighting factor for the Commonwealth of Puerto
Rico under this paragraph shall not be greater than the
total number of children counted under section 1124(c)
multiplied by 1.82.
``(2) Weights for allocations to local educational
agencies.--
``(A) In general.--For each fiscal year for which
the Secretary uses local educational agency data, the
weighted child count used to determine a local
educational agency's grant under this section is the
larger of the two amounts determined under subparagraphs
(B) and (C).
[[Page 115 STAT. 1524]]
``(B) By percentage of children.--The amount
referred to in subparagraph (A) is determined by
adding--
``(i) the number of children determined under
section 1124(c) for that local educational agency
who constitute not more than 15.58 percent,
inclusive, of the agency's total population aged 5
to 17, inclusive, multiplied by 1.0;
``(ii) the number of such children who
constitute more than 15.58 percent, but not more
than 22.11 percent, of such population, multiplied
by 1.75;
``(iii) the number of such children who
constitute more than 22.11 percent, but not more
than 30.16 percent, of such population, multiplied
by 2.5;
``(iv) the number of such children who
constitute more than 30.16 percent, but not more
than 38.24 percent, of such population, multiplied
by 3.25; and
``(v) the number of such children who
constitute more than 38.24 percent of such
population, multiplied by 4.0.
``(C) By number of children.--The amount referred to
in subparagraph (A) is determined by adding--
``(i) the number of children determined under
section 1124(c) who constitute not more than 691,
inclusive, of the agency's total population aged 5
to 17, inclusive, multiplied by 1.0;
``(ii) the number of such children between 692
and 2,262, inclusive, in such population,
multiplied by 1.5;
``(iii) the number of such children between
2,263 and 7,851, inclusive, in such population,
multiplied by 2.0;
``(iv) the number of such children between
7,852 and 35,514, inclusive, in such population,
multiplied by 2.5; and
``(v) the number of such children in excess of
35,514 in such population, multiplied by 3.0.
``(D) Puerto rico.--Notwithstanding subparagraph
(A), the weighting factor for the Commonwealth of Puerto
Rico under this paragraph shall not be greater than the
total number of children counted under section 1124(c)
multiplied by 1.82.
``(d) Calculation of Grant Amounts.--Grant amounts under this
section shall be calculated in the same manner as grant amounts are
calculated under section 1124(a)(2) and (3).
``(e) State Minimum.--Notwithstanding any other provision of this
section or section 1122, from the total amount available for any fiscal
year to carry out this section, each State shall be allotted at least
the lesser of--
``(1) 0.35 percent of the total amount available to carry
out this section; or
``(2) the average of--
``(A) 0.35 percent of the total amount available to
carry out this section; and
``(B) 150 percent of the national average grant
under this section per child described in section
1124(c), without application of a weighting factor,
multiplied by the State's total number of children
described in section 1124(c), without application of a
weighting factor.
[[Page 115 STAT. 1525]]
``SEC. <<NOTE: 20 USC 6336.>> 1125AA. ADEQUACY OF FUNDING OF TARGETED
GRANTS TO LOCAL EDUCATIONAL AGENCIES IN FISCAL YEARS AFTER
FISCAL YEAR 2001.
``(a) Findings.--Congress makes the following findings:
``(1) The current Basic Grant Formula for the distribution
of funds under this part often does not provide funds for the
economically disadvantaged students for which such funds are
targeted.
``(2) Any school district in which more than 2 percent of
the students live below the poverty level qualifies for funding
under the Basic Grant Formula. As a result, 9 out of every 10
school districts in the country receive some form of aid under
the Formula.
``(3) Fifty-eight percent of all schools receive at least
some funding under this part, including many suburban schools
with predominantly well-off students.
``(4) One out of every 5 schools with concentrations of poor
students between 50 and 75 percent receive no funding at all
under this part.
``(5) In passing the Improving America's Schools Act in
1994, Congress declared that grants under this part would more
sharply target high poverty schools by using the Targeted Grant
Formula, but annual appropriation Acts have prevented the use of
that Formula.
``(6) The advantage of the Targeted Grant Formula over other
funding formulas under this part is that the Targeted Grant
Formula provides increased grants per poor child as the
percentage of economically disadvantaged children in a school
district increases.
``(7) Studies have found that the poverty of a child's
family is much more likely to be associated with educational
disadvantage if the family lives in an area with large
concentrations of poor families.
``(8) States with large populations of high poverty students
would receive significantly more funding if more funds under
this part were allocated through the Targeted Grant Formula.
``(9) Congress has an obligation to allocate funds under
this part so that such funds will positively affect the largest
number of economically disadvantaged students.
``(b) Limitation on Allocation of Title I Funds Contingent on
Adequate Funding of Targeted Grants.--Pursuant to section 1122, the
total amount allocated in any fiscal year after fiscal year 2001 for
programs and activities under this part shall not exceed the amount
allocated in fiscal year 2001 for such programs and activities unless
the amount available for targeted grants to local educational agencies
under section 1125 in the applicable fiscal year meets the requirements
of section 1122(a).
``SEC. <<NOTE: 20 USC 6337.>> 1125A. EDUCATION FINANCE INCENTIVE GRANT
PROGRAM.
``(a) Grants.--From funds appropriated under subsection (f) the
Secretary is authorized to make grants to States, from allotments under
subsection (b), to carry out the programs and activities of this part.
``(b) Distribution Based Upon Fiscal Effort and Equity.--
``(1) In general.--
``(A) In general.--Except as provided in
subparagraph (B), funds appropriated pursuant to
subsection (f) shall
[[Page 115 STAT. 1526]]
be allotted to each State based upon the number of
children counted under section 1124(c) in such State
multiplied by the product of--
``(i) the amount in section 1124(a)(1)(B) for
all States other than the Commonwealth of Puerto
Rico, except that the amount determined under that
subparagraph shall not be less that 34 percent or
more than 46 percent of the average per pupil
expenditure in the United States, and the amount
in section 1124(a)(4) for the Commonwealth of
Puerto Rico, except that the amount in section
1124(a)(4)(A)(ii) shall be 34 percent of the
average per pupil expenditure in the United
States; multiplied by
``(ii) such State's effort factor described in
paragraph (2); multiplied by
``(iii) 1.30 minus such State's equity factor
described in paragraph (3).
``(B) State minimum.--Notwithstanding any other
provision of this section or section 1122, from the
total amount available for any fiscal year to carry out
this section, each State shall be allotted at least the
lesser of--
``(i) 0.35 percent of total appropriations; or
``(ii) the average of--
``(I) 0.35 percent of the total
amount available to carry out this
section; and
``(II) 150 percent of the national
average grant under this section per
child described in section 1124(c),
without application of a weighting
factor, multiplied by the State's total
number of children described in section
1124(c), without application of a
weighting factor.
``(2) Effort factor.--
``(A) In general.--Except as provided in
subparagraph (B), the effort factor for a State shall be
determined in accordance with the succeeding sentence,
except that such factor shall not be less than 0.95 nor
greater than 1.05. The effort factor determined under
this sentence shall be a fraction the numerator of which
is the product of the 3-year average per-pupil
expenditure in the State multiplied by the 3-year
average per capita income in the United States and the
denominator of which is the product of the 3-year
average per capita income in such State multiplied by
the 3-year average per-pupil expenditure in the United
States.
``(B) Commonwealth of puerto rico.--The effort
factor for the Commonwealth of Puerto Rico shall be
equal to the lowest effort factor calculated under
subparagraph (A) for any State.
``(3) Equity factor.--
``(A) Determination.--
``(i) In general.--Except as provided in
subparagraph (B), the Secretary shall determine
the equity factor under this section for each
State in accordance with clause (ii).
``(ii) Computation.--
[[Page 115 STAT. 1527]]
``(I) In general.--For each State,
the Secretary shall compute a weighted
coefficient of variation for the per-
pupil expenditures of local educational
agencies in accordance with subclauses
(II), (III), and (IV).
``(II) Variation.--In computing
coefficients of variation, the Secretary
shall weigh the variation between per-
pupil expenditures in each local
educational agency and the average per-
pupil expenditures in the State
according to the number of pupils served
by the local educational agency.
``(III) Number of pupils.--In
determining the number of pupils under
this paragraph served by each local
educational agency and in each State,
the Secretary shall multiply the number
of children counted under section
1124(c) by a factor of 1.4.
``(IV) Enrollment requirement.--In
computing coefficients of variation, the
Secretary shall include only those local
educational agencies with an enrollment
of more than 200 students.
``(B) Special rule.--The equity factor for a State
that meets the disparity standard described in section
222.162 of title 34, Code of Federal Regulations (as
such section was in effect on the day preceding the date
of enactment of the No Child Left Behind Act of 2001) or
a State with only one local educational agency shall be
not greater than 0.10.
``(c) Use of Funds; Eligibility of Local Educational Agencies.--All
funds awarded to each State under this section shall be allocated to
local educational agencies under the following provisions. Within local
educational agencies, funds allocated under this section shall be
distributed to schools on a basis consistent with section 1113, and may
only be used to carry out activities under this part. A local
educational agency in a State is eligible to receive a targeted grant
under this section for any fiscal year if--
``(A) the number of children in the local educational agency
counted under section 1124(c), before application of the
weighted child count described in paragraph (3), is at least 10;
and
``(B) if the number of children counted for grants under
section 1124(c), before application of the weighted child count
described in paragraph (3), is at least 5 percent of the total
number of children aged 5 to 17 years, inclusive, in the school
district of the local educational agency.
``For any fiscal year for which the Secretary allocates funds under
this section on the basis of counties, funds made available as a result
of applying this subsection shall be reallocated by the State
educational agency to other eligible local educational agencies in the
State in proportion to the distribution of other funds under this
section.
``(d) Allocation of Funds to Eligible Local Educational Agencies.--
Funds received by States under this section shall be allocated within
States to eligible local educational agencies on the basis of weighted
child counts calculated in accordance with paragraph (1), (2), or (3),
as appropriate for each State.
[[Page 115 STAT. 1528]]
``(1) States with an equity factor less than .10.--In States
with an equity factor less than .10, the weighted child counts
referred to in subsection (d) shall be calculated as follows:
``(A) Weights for allocations to counties.--
``(i) In general.--For each fiscal year for
which the Secretary uses county population data to
calculate grants, the weighted child count used to
determine a county's allocation under this section
is the larger of the two amounts determined under
clauses (ii) and (iii).
``(ii) By percentage of children.--The amount
referred to in clause ``(i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) for
that county who constitute not more than
15.00 percent, inclusive, of the
county's total population aged 5 to 17,
inclusive, multiplied by 1.0;
``(II) the number of such children
who constitute more than 15.00 percent,
but not more than 19.00 percent, of such
population, multiplied by 1.75;
``(III) the number of such children
who constitute more than 19.00 percent,
but not more than 24.20 percent, of such
population, multiplied by 2.5;
``(IV) the number of such children
who constitute more than 24.20 percent,
but not more than 29.20 percent, of such
population, multiplied by 3.25; and
``(V) the number of such children
who constitute more than 29.20 percent
of such population, multiplied by 4.0.
``(iii) By number of children.--The amount
referred to in clause (i) is determined by adding
``(I) the number of children
determined under section 1124(c) who
constitute not more than 2,311,
inclusive, of the county's total
population aged 5 to 17, inclusive,
multiplied by 1.0;
``(II) the number of such children
between 2,312 and 7,913, inclusive, in
such population, multiplied by 1.5;
``(III) the number of such children
between 7,914 and 23,917, inclusive, in
such population, multiplied by 2.0;
``(IV) the number of such children
between 23,918 and 93,810, inclusive, in
such population, multiplied by 2.5; and
``(V) the number of such children in
excess of 93,811 in such population,
multiplied by 3.0.
``(B) Weights for allocations to local educational
agencies.--
``(i) In general.--For each fiscal year for
which the Secretary uses local educational agency
data, the weighted child count used to determine a
local educational agency's grant under this
section is the larger
[[Page 115 STAT. 1529]]
of the two amounts determined under clauses (ii)
and (iii).
``(ii) By percentage of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) for
that local educational agency who
constitute not more than 15.58 percent,
inclusive, of the agency's total
population aged 5 to 17, inclusive,
multiplied by 1.0;
``(II) the number of such children
who constitute more than 15.58 percent,
but not more than 22.11 percent, of such
population, multiplied by 1.75;
``(III) the number of such children
who constitute more than 22.11 percent,
but not more than 30.16 percent, of such
population, multiplied by 2.5;
``(IV) the number of such children
who constitute more than 30.16 percent,
but not more than 38.24 percent, of such
population, multiplied by 3.25; and
``(V) the number of such children
who constitute more than 38.24 percent
of such population, multiplied by 4.0.
``(iii) By number of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) who
constitute not more than 691, inclusive,
of the agency's total population aged 5
to 17, inclusive, multiplied by 1.0;
``(II) the number of such children
between 692 and 2,262, inclusive, in
such population, multiplied by 1.5;
``(III) the number of such children
between 2,263 and 7,851, inclusive, in
such population, multiplied by 2.0;
``(IV) the number of such children
between 7,852 and 35,514, inclusive, in
such population, multiplied by 2.5; and
``(V) the number of such children in
excess of 35,514 in such population,
multiplied by 3.0.
``(2) States with an equity factor greater than or equal to
.10 and less than .20.--In States with an equity factor greater
than or equal to .10 and less than .20, the weighted child
counts referred to in subsection (d) shall be calculated as
follows:
``(A) Weights for allocations to counties.--
``(i) In general.--For each fiscal year for
which the Secretary uses county population data to
calculate grants, the weighted child count used to
determine a county's allocation under this section
is the larger of the two amounts determined under
clauses (ii) and (iii).
``(ii) By percentage of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) for
that county who constitute not
[[Page 115 STAT. 1530]]
more than 15.00 percent, inclusive, of
the county's total population aged 5 to
17, inclusive, multiplied by 1.0;
``(II) the number of such children
who constitute more than 15.00 percent,
but not more than 19.00 percent, of such
population, multiplied by 1.5;
``(III) the number of such children
who constitute more than 19.00 percent,
but not more than 24.20 percent, of such
population, multiplied by 3.0;
``(IV) the number of such children
who constitute more than 24.20 percent,
but not more than 29.20 percent, of such
population, multiplied by 4.5; and
``(V) the number of such children
who constitute more than 29.20 percent
of such population, multiplied by 6.0.
``(iii) By number of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) who
constitute not more than 2,311,
inclusive, of the county's total
population aged 5 to 17, inclusive,
multiplied by 1.0;
``(II) the number of such children
between 2,312 and 7,913, inclusive, in
such population, multiplied by 1.5;
``(III) the number of such children
between 7,914 and 23,917, inclusive, in
such population, multiplied by 2.25;
``(IV) the number of such children
between 23,918 and 93,810, inclusive, in
such population, multiplied by 3.375;
and
``(V) the number of such children in
excess of 93,811 in such population,
multiplied by 4.5.
``(B) Weights for allocations to local educational
agencies.--
``(i) In general.--For each fiscal year for
which the Secretary uses local educational agency
data, the weighted child count used to determine a
local educational agency's grant under this
section is the larger of the two amounts
determined under clauses (ii) and (iii).
``(ii) By percentage of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) for
that local educational agency who
constitute not more than 15.58 percent,
inclusive, of the agency's total
population aged 5 to 17, inclusive,
multiplied by 1.0;
``(II) the number of such children
who constitute more than 15.58 percent,
but not more than 22.11 percent, of such
population, multiplied by 1.5;
``(III) the number of such children
who constitute more than 22.11 percent,
but not more
[[Page 115 STAT. 1531]]
than 30.16 percent, of such population,
multiplied by 3.0;
``(IV) the number of such children
who constitute more than 30.16 percent,
but not more than 38.24 percent, of such
population, multiplied by 4.5; and
``(V) the number of such children
who constitute more than 38.24 percent
of such population, multiplied by 6.0.
``(iii) By number of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) who
constitute not more than 691, inclusive,
of the agency's total population aged 5
to 17, inclusive, multiplied by 1.0;
``(II) the number of such children
between 692 and 2,262, inclusive, in
such population, multiplied by 1.5;
``(III) the number of such children
between 2,263 and 7,851, inclusive, in
such population, multiplied by 2.25;
``(IV) the number of such children
between 7,852 and 35,514, inclusive, in
such population, multiplied by 3.375;
and
``(V) the number of such children in
excess of 35,514 in such population,
multiplied by 4.5.
``(3) States with an equity factor greater than or equal to
.20.--In States with an equity factor greater than or equal to
.20, the weighted child counts referred to in subsection (d)
shall be calculated as follows:
``(A) Weights for allocations to counties.--
``(i) In general.--For each fiscal year for
which the Secretary uses county population data to
calculate grants, the weighted child count used to
determine a county's allocation under this section
is the larger of the two amounts determined under
clauses (ii) and (iii).
``(ii) By percentage of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) for
that county who constitute not more than
15.00 percent, inclusive, of the
county's total population aged 5 to 17,
inclusive, multiplied by 1.0;
``(II) the number of such children
who constitute more than 15.00 percent,
but not more than 19.00 percent, of such
population, multiplied by 2.0;
``(III) the number of such children
who constitute more than 19.00 percent,
but not more than 24.20 percent, of such
population, multiplied by 4.0;
``(IV) the number of such children
who constitute more than 24.20 percent,
but not more than 29.20 percent, of such
population, multiplied by 6.0; and
[[Page 115 STAT. 1532]]
``(V) the number of such children
who constitute more than 29.20 percent
of such population, multiplied by 8.0.
``(iii) By number of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) who
constitute not more than 2,311,
inclusive, of the county's total
population aged 5 to 17, inclusive,
multiplied by 1.0;
``(II) the number of such children
between 2,312 and 7,913, inclusive, in
such population, multiplied by 2.0;
``(III) the number of such children
between 7,914 and 23,917, inclusive, in
such population, multiplied by 3.0;
``(IV) the number of such children
between 23,918 and 93,810, inclusive, in
such population, multiplied by 4.5; and
``(V) the number of such children in
excess of 93,811 in such population,
multiplied by 6.0.
``(B) Weights for allocations to local educational
agencies.--
``(i) In general.--For each fiscal year for
which the Secretary uses local educational agency
data, the weighted child count used to determine a
local educational agency's grant under this
section is the larger of the two amounts
determined under clauses (ii) and (iii).
``(ii) By percentage of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) for
that local educational agency who
constitute not more than 15.58 percent,
inclusive, of the agency's total
population aged 5 to 17, inclusive,
multiplied by 1.0;
``(II) the number of such children
who constitute more than 15.58 percent,
but not more than 22.11 percent, of such
population, multiplied by 2.0;
``(III) the number of such children
who constitute more than 22.11 percent,
but not more than 30.16 percent, of such
population, multiplied by 4.0;
``(IV) the number of such children
who constitute more than 30.16 percent,
but not more than 38.24 percent, of such
population, multiplied by 6.0; and
``(V) the number of such children
who constitute more than 38.24 percent
of such population, multiplied by 8.0.
``(iii) By number of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) who
constitute not more than 691, inclusive,
of the agency's total population aged 5
to 17, inclusive, multiplied by 1.0;
[[Page 115 STAT. 1533]]
``(II) the number of such children
between 692 and 2,262, inclusive, in
such population, multiplied by 2.0;
``(III) the number of such children
between 2,263 and 7,851, inclusive, in
such population, multiplied by 3.0;
``(IV) the number of such children
between 7,852 and 35,514, inclusive, in
such population, multiplied by 4.5; and
``(V) the number of such children in
excess of 35,514 in such population,
multiplied by 6.0.
``(e) Maintenance of Effort.--
``(1) In general.--Except as provided in paragraph (2), a
State is entitled to receive its full allotment of funds under
this section for any fiscal year if the Secretary finds that
either the combined fiscal effort per student or the aggregate
expenditures within the State with respect to the provision of
free public education for the fiscal year preceding the fiscal
year for which the determination is made was not less than 90
percent of such combined fiscal effort or aggregate expenditures
for the second fiscal year preceding the fiscal year for which
the determination is made.
``(2) Reduction of funds.--The Secretary shall reduce the
amount of funds awarded to any State under this section in any
fiscal year in the exact proportion to which the State fails to
meet the requirements of paragraph (1) by falling below 90
percent of both the fiscal effort per student and aggregate
expenditures (using the measure most favorable to the State),
and no such lesser amount shall be used for computing the effort
required under paragraph (1) for subsequent years.
``(3) Waivers.--The Secretary may waive, for 1 fiscal year
only, the requirements of this subsection if the Secretary
determines that such a waiver would be equitable due to
exceptional or uncontrollable circumstances such as a natural
disaster or a precipitous and unforeseen decline in the
financial resources of the State.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2002 and for each of the 5 succeeding fiscal years.
``(g) Adjustments Where Necessitated by Appropriations.--
``(1) In general.--If the sums available under this section
for any fiscal year are insufficient to pay the full amounts
that all local educational agencies in States are eligible to
receive under this section for such year, the Secretary shall
ratably reduce the allocations to such local educational
agencies, subject to paragraphs (2) and (3).
``(2) Additional funds.--If additional funds become
available for making payments under this section for such fiscal
year, allocations that were reduced under paragraph (1) shall be
increased on the same basis as they were reduced.
``(3) Hold-harmless amounts.--For each fiscal year, if
sufficient funds are available, the amount made available to
each local educational agency under this section shall be
``(A) not less than 95 percent of the amount made
available for the preceding fiscal year if the number of
children counted for grants under section 1124 is not
less
[[Page 115 STAT. 1534]]
than 30 percent of the total number of children aged 5
to 17 years, inclusive, in the local educational agency;
``(B) not less than 90 percent of the amount made
available for the preceding fiscal year if the
percentage described in subparagraph (A) is between 15
percent and 30 percent; and
``(C) not less than 85 percent of the amount made
available for the preceding fiscal year if the
percentage described in subparagraph (A) is below 15
percent.
``(4) Applicability.--Notwithstanding any other provision of
law, the Secretary shall not take into consideration the hold-
harmless provisions of this subsection for any fiscal year for
purposes of calculating State or local allocations for the
fiscal year under any program administered by the Secretary
other than a program authorized under this part.
``SEC. <<NOTE: 20 USC 6338.>> 1126. SPECIAL ALLOCATION PROCEDURES.
``(a) Allocations for Neglected Children.--
``(1) In general.--If a State educational agency determines
that a local educational agency in the State is unable or
unwilling to provide for the special educational needs of
children who are living in institutions for neglected children
as described in section 1124(c)(1)(B), the State educational
agency shall, if such agency assumes responsibility for the
special educational needs of such children, receive the portion
of such local educational agency's allocation under sections
1124, 1124A, 1125, and 1125A that is attributable to such
children.
``(2) Special rule.--If the State educational agency does
not assume such responsibility, any other State or local public
agency that does assume such responsibility shall receive that
portion of the local educational agency's allocation.
``(b) Allocations Among Local Educational Agencies.--The State
educational agency may allocate the amounts of grants under sections
1124, 1124A, 1125, and 1125A among the affected local educational
agencies--
``(1) if two or more local educational agencies serve, in
whole or in part, the same geographical area;
``(2) if a local educational agency provides free public
education for children who reside in the school district of
another local educational agency; or
``(3) to reflect the merger, creation, or change of
boundaries of one or more local educational agencies.
``(c) Reallocation.--If a State educational agency determines that
the amount of a grant a local educational agency would receive under
sections 1124, 1124A, 1125, and 1125A is more than such local
educational agency will use, the State educational agency shall make the
excess amount available to other local educational agencies in the State
that need additional funds in accordance with criteria established by
the State educational agency.
``SEC. <<NOTE: 20 USC 6339.>> 1127. CARRYOVER AND WAIVER.
``(a) Limitation on Carryover.--Notwithstanding section 421(b) of
the General Education Provisions Act or any other provision of law, not
more than 15 percent of the funds allocated to a local educational
agency for any fiscal year under this subpart (but not including funds
received through any reallocation under this subpart) may remain
available for obligation by such agency for one additional fiscal year.
[[Page 115 STAT. 1535]]
``(b) Waiver.--A State educational agency may, once every 3 years,
waive the percentage limitation in subsection (a) if--
``(1) the agency determines that the request of a local
educational agency is reasonable and necessary; or
``(2) supplemental appropriations for this subpart become
available.
``(c) Exclusion.--The percentage limitation under subsection (a)
shall not apply to any local educational agency that receives less than
$50,000 under this subpart for any fiscal year.
``PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS
``Subpart 1--Reading First
``SEC. <<NOTE: 20 USC 6361.>> 1201. PURPOSES.
``The purposes of this subpart are as follows:
``(1) To provide assistance to State educational agencies
and local educational agencies in establishing reading programs
for students in kindergarten through grade 3 that are based on
scientifically based reading research, to ensure that every
student can read at grade level or above not later than the end
of grade 3.
``(2) To provide assistance to State educational agencies
and local educational agencies in preparing teachers, including
special education teachers, through professional development and
other support, so the teachers can identify specific reading
barriers facing their students and so the teachers have the
tools to effectively help their students learn to read.
``(3) To provide assistance to State educational agencies
and local educational agencies in selecting or administering
screening, diagnostic, and classroom-based instructional reading
assessments.
``(4) To provide assistance to State educational agencies
and local educational agencies in selecting or developing
effective instructional materials (including classroom-based
materials to assist teachers in implementing the essential
components of reading instruction), programs, learning systems,
and strategies to implement methods that have been proven to
prevent or remediate reading failure within a State.
``(5) To strengthen coordination among schools, early
literacy programs, and family literacy programs to improve
reading achievement for all children.
``SEC. <<NOTE: 20 USC 6362.>> 1202. FORMULA GRANTS TO STATE EDUCATIONAL
AGENCIES.
``(a) In General.--
``(1) Authorization to make grants.--In the case of each
State educational agency that in accordance with section 1203
submits to the Secretary an application for a 6-year period, the
Secretary, from amounts appropriated under section 1002(b)(1)
and subject to the application's approval, shall make a grant to
the State educational agency for the uses specified in
subsections (c) and (d). For each fiscal year, the funds
provided under the grant shall equal the allotment determined
for the State educational agency under subsection (b).
[[Page 115 STAT. 1536]]
``(2) Duration of grants.--Subject to subsection (e)(3), a
grant under this section shall be awarded for a period of not
more than 6 years.
``(b) Determination of Amount of Allotments.--
``(1) Reservations from appropriations.--From the total
amount made available to carry out this subpart for a fiscal
year, the Secretary--
``(A) shall reserve one-half of 1 percent for
allotments for the United States Virgin Islands, Guam,
American Samoa, and the Commonwealth of the Northern
Mariana Islands, to be distributed among these outlying
areas on the basis of their relative need, as determined
by the Secretary in accordance with the purposes of this
subpart;
``(B) shall reserve one-half of 1 percent for the
Secretary of the Interior for programs under this
subpart in schools operated or funded by the Bureau of
Indian Affairs;
``(C) may reserve not more than 2\1/2\ percent or
$25,000,000, whichever is less, to carry out section
1205 (relating to external evaluation) and section 1206
(relating to national activities);
``(D) shall reserve $5,000,000 to carry out sections
1207 and 1224 (relating to information dissemination);
and
``(E) for any fiscal year, beginning with fiscal
year 2004, for which the amount appropriated to carry
out this subpart exceeds the amount appropriated for
fiscal year 2003, shall reserve, to carry out section
1204, the lesser of--
``(i) $90,000,000; or
``(ii) 10 percent of such excess amount.
``(2) State allotments.--In accordance with paragraph (3),
the Secretary shall allot among each of the States the total
amount made available to carry out this subpart for any fiscal
year and not reserved under paragraph (1).
``(3) Determination of state allotment amounts.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall allot the amount made available under
paragraph (2) for a fiscal year among the States in
proportion to the number of children, aged 5 to 17, who
reside within the State and are from families with
incomes below the poverty line for the most recent
fiscal year for which satisfactory data are available,
compared to the number of such individuals who reside in
all such States for that fiscal year.
``(B) Exceptions.--
``(i) Minimum grant amount.--Subject to clause
(ii), no State receiving an allotment under
subparagraph (A) may receive less than one-fourth
of 1 percent of the total amount allotted under
such subparagraph.
``(ii) Puerto rico.--The percentage of the
amount allotted under subparagraph (A) that is
allotted to the Commonwealth of Puerto Rico for a
fiscal year may not exceed the percentage that was
received by the Commonwealth of Puerto Rico of the
funds allocated to all States under subpart 2 of
part A for the preceding fiscal year.
``(4) Distribution of subgrants.--The Secretary may make a
grant to a State educational agency only if the State
[[Page 115 STAT. 1537]]
educational agency agrees to expend at least 80 percent of the
amount of the funds provided under the grant for the purpose of
making, in accordance with subsection (c), competitive subgrants
to eligible local educational agencies.
``(5) Reallotment.--If a State educational agency described
in paragraph (2) does not apply for an allotment under this
section for any fiscal year, or if the State educational
agency's application is not approved, the Secretary shall
reallot such amount to the remaining State educational agencies
in accordance with paragraph (3).
``(6) Definition of state.--For purposes of this subsection,
the term `State' means each of the 50 States, the District of
Columbia, and the Commonwealth of Puerto Rico.
``(c) Subgrants to Local Educational Agencies.--
``(1) Authorization to make subgrants.--In accordance with
paragraph (2), a State educational agency that receives a grant
under this section shall make competitive subgrants to eligible
local educational agencies.
``(2) Allocation.--
``(A) Minimum subgrant amount.--In making subgrants
under paragraph (1), a State educational agency shall
allocate to each eligible local educational agency that
receives such a subgrant, at a minimum, an amount that
bears the same relation to the funds made available
under subsection (b)(4) as the amount the eligible local
educational agency received under part A for the
preceding fiscal year bears to the amount all the local
educational agencies in the State received under part A
for the preceding fiscal year.
``(B) Priority.--In making subgrants under paragraph
(1), a State educational agency shall give priority to
eligible local educational agencies in which at least--
``(i) 15 percent of the children served by the
eligible local educational agency are from
families with incomes below the poverty line; or
``(ii) 6,500 children served by the eligible
local educational agency are from families with
incomes below the poverty line.
``(3) Notice.--A State educational agency receiving a grant
under this section shall provide notice to all eligible local
educational agencies in the State of the availability of
competitive subgrants under this subsection and of the
requirements for applying for the subgrants.
``(4) Local application.--To be eligible to receive a
subgrant under this subsection, an eligible local educational
agency shall submit an application to the State educational
agency at such time, in such manner, and containing such
information as the State educational agency may reasonably
require.
``(5) State requirement.--In distributing subgrant funds to
eligible local educational agencies under this subsection, a
State educational agency shall--
``(A) provide funds in sufficient size and scope to
enable the eligible local educational agencies to
improve reading instruction; and
[[Page 115 STAT. 1538]]
``(B) provide the funds in amounts related to the
number or percentage of students in kindergarten through
grade 3 who are reading below grade level.
``(6) Limitation to certain schools.--In distributing
subgrant funds under this subsection, an eligible local
educational agency shall provide funds only to schools that
both--
``(A) are among the schools served by that eligible
local educational agency with the highest percentages or
numbers of students in kindergarten through grade 3
reading below grade level, based on the most currently
available data; and
``(B)(i) are identified for school improvement under
section 1116(b); or
``(ii) have the highest percentages or numbers of
children counted under section 1124(c).
``(7) Local uses of funds.--
``(A) Required uses.--Subject to paragraph (8), an
eligible local educational agency that receives a
subgrant under this subsection shall use the funds
provided under the subgrant to carry out the following
activities:
``(i) Selecting and administering screening,
diagnostic, and classroom-based instructional
reading assessments.
``(ii) Selecting and implementing a learning
system or program of reading instruction based on
scientifically based reading research that--
``(I) includes the essential
components of reading instruction; and
``(II) provides such instruction to
the children in kindergarten through
grade 3 in the schools served by the
eligible local educational agency,
including children who--
``(aa) may have reading
difficulties;
``(bb) are at risk of being
referred to special education
based on these difficulties;
``(cc) have been evaluated
under section 614 of the
Individuals with Disabilities
Education Act but, in accordance
with section 614(b)(5) of that
Act, have not been identified as
being a child with a disability
(as defined in section 602 of
that Act);
``(dd) are being served
under such Act primarily due to
being identified as being a
child with a specific learning
disability (as defined in
section 602 of that Act) related
to reading;
``(ee) are deficient in the
essential components of reading
skills, as listed in
subparagraphs (A) through (E) of
section 1208(3); or
``(ff) are identified as
having limited English
proficiency.
``(iii) Procuring and implementing
instructional materials, including education
technology such as software and other digital
curricula, that are based on scientifically based
reading research.
``(iv) Providing professional development for
teachers of kindergarten through grade 3, and
special
[[Page 115 STAT. 1539]]
education teachers of kindergarten through grade
12, that--
``(I) will prepare these teachers in
all of the essential components of
reading instruction;
``(II) shall include--
``(aa) information on
instructional materials,
programs, strategies, and
approaches based on
scientifically based reading
research, including early
intervention, classroom reading
materials, and remedial programs
and approaches; and
``(bb) instruction in the
use of screening, diagnostic,
and classroom-based
instructional reading
assessments and other procedures
that effectively identify
students who may be at risk for
reading failure or who are
having difficulty reading;
``(III) shall be provided by
eligible professional development
providers; and
``(IV) will assist teachers in
becoming highly qualified in reading
instruction in accordance with the
requirements of section 1119.
``(v) Collecting and summarizing data--
``(I) to document the effectiveness
of activities carried out under this
subpart in individual schools and in the
local educational agency as a whole; and
``(II) to stimulate and accelerate
improvement by identifying the schools
that produce significant gains in
reading achievement.
``(vi) Reporting data for all students and
categories of students described in section
1111(b)(2)(C)(v)(II).
``(vii) Promoting reading and library programs
that provide access to engaging reading material,
including coordination with programs funded
through grants received under subpart 4, where
applicable.
``(B) Additional uses.--Subject to paragraph (8), an
eligible local educational agency that receives a
subgrant under this subsection may use the funds
provided under the subgrant to carry out the following
activities:
``(i) Humanities-based family literacy
programs (which may be referred to as `Prime Time
Family Reading Time') that bond families around
the acts of reading and using public libraries.
``(ii) Providing training in the essential
components of reading instruction to a parent or
other individual who volunteers to be a student's
reading tutor, to enable such parent or individual
to support instructional practices that are based
on scientifically based reading research and are
being used by the student's teacher.
``(iii) Assisting parents, through the use of
materials and reading programs, strategies, and
approaches (including family literacy services)
that are based on scientifically based reading
research, to encourage reading and support their
child's reading development.
[[Page 115 STAT. 1540]]
``(8) Local planning and administration.--An eligible local
educational agency that receives a subgrant under this
subsection may use not more than 3.5 percent of the funds
provided under the subgrant for planning and administration.
``(d) State Uses of Funds.--
``(1) In general.--A State educational agency that receives
a grant under this section may expend not more than a total of
20 percent of the grant funds to carry out the activities
described in paragraphs (3), (4), and (5).
``(2) Priority.--A State educational agency shall give
priority to carrying out the activities described in paragraphs
(3), (4), and (5) for schools described in subsection (c)(6).
``(3) Professional inservice and preservice development and
review.--A State educational agency may expend not more than 65
percent of the amount of the funds made available under
paragraph (1)--
``(A) to develop and implement a program of
professional development for teachers, including special
education teachers, of kindergarten through grade 3
that--
``(i) will prepare these teachers in all the
essential components of reading instruction;
``(ii) shall include--
``(I) information on instructional
materials, programs, strategies, and
approaches based on scientifically based
reading research, including early
intervention and reading remediation
materials, programs, and approaches; and
``(II) instruction in the use of
screening, diagnostic, and classroom-
based instructional reading assessments
and other scientifically based
procedures that effectively identify
students who may be at risk for reading
failure or who are having difficulty
reading; and
``(iii) shall be provided by eligible
professional development providers;
``(B) to strengthen and enhance preservice courses
for students preparing, at all public institutions of
higher education in the State, to teach kindergarten
through grade 3 by--
``(i) reviewing such courses to determine
whether the courses' content is consistent with
the findings of the most current scientifically
based reading research, including findings on the
essential components of reading instruction;
``(ii) following up such reviews with
recommendations to ensure that such institutions
offer courses that meet the highest standards; and
``(iii) <<NOTE: Reports. Public
information. Internet.>> preparing a report on the
results of such reviews, submitting the report to
the reading and literacy partnership for the State
established under section 1203(d), and making the
report available for public review by means of the
Internet; and
``(C) to make recommendations on how the State
licensure and certification standards in the area of
reading might be improved.
``(4) Technical assistance for local educational agencies
and schools.--A State educational agency may expend
[[Page 115 STAT. 1541]]
not more than 25 percent of the amount of the funds made
available under paragraph (1) for one or more of the following:
``(A) Assisting local educational agencies in
accomplishing the tasks required to design and implement
a program under this subpart, including--
``(i) selecting and implementing a program or
programs of reading instruction based on
scientifically based reading research;
``(ii) selecting screening, diagnostic, and
classroom-based instructional reading assessments;
and
``(iii) identifying eligible professional
development providers to help prepare reading
teachers to teach students using the programs and
assessments described in clauses (i) and (ii).
``(B) Providing expanded opportunities to students
in kindergarten through grade 3 who are served by
eligible local educational agencies for receiving
reading assistance from alternative providers that
includes--
``(i) screening, diagnostic, and classroom-
based instructional reading assessments; and
``(ii) as need is indicated by the assessments
under clause (i), instruction based on
scientifically based reading research that
includes the essential components of reading
instruction.
``(5) Planning, administration, and reporting.--
``(A) Expenditure of funds.--A State educational
agency may expend not more than 10 percent of the amount
of funds made available under paragraph (1) for the
activities described in this paragraph.
``(B) Planning and administration.--A State
educational agency that receives a grant under this
section may expend funds made available under
subparagraph (A) for planning and administration
relating to the State uses of funds authorized under
this subpart, including the following:
``(i) Administering the distribution of
competitive subgrants to eligible local
educational agencies under subsection (c) and
section 1204(d).
``(ii) Assessing and evaluating, on a regular
basis, eligible local educational agency
activities assisted under this subpart, with
respect to whether they have been effective in
increasing the number of children in grades 1, 2,
and 3 served under this subpart who can read at or
above grade level.
``(C) Annual reporting.--
``(i) In general.--A State educational agency
that receives a grant under this section shall
expend funds made available under subparagraph (A)
to provide the Secretary annually with a report on
the implementation of this subpart.
``(ii) Information included.--Each report
under this subparagraph shall include information
on the following:
``(I) Evidence that the State
educational agency is fulfilling its
obligations under this subpart.
[[Page 115 STAT. 1542]]
``(II) Specific identification of
those schools and local educational
agencies that report the largest gains
in reading achievement.
``(III) The progress the State
educational agency and local educational
agencies within the State are making in
reducing the number of students served
under this subpart in grades 1, 2, and 3
who are reading below grade level, as
demonstrated by such information as
teacher reports and school evaluations
of mastery of the essential components
of reading instruction.
``(IV) Evidence on whether the State
educational agency and local educational
agencies within the State have
significantly increased the number of
students reading at grade level or
above, significantly increased the
percentages of students described in
section 1111(b)(2)(C)(v)(II) who are
reading at grade level or above, and
successfully implemented this subpart.
``(iii) Privacy protection.--Data in the
report shall be reported in a manner that protects
the privacy of individuals.
``(iv) Contract.--To the extent practicable, a
State educational agency shall enter into a
contract with an entity that conducts
scientifically based reading research, under which
contract the entity will assist the State
educational agency in producing the reports
required to be submitted under this subparagraph.
``(e) Review.--
``(1) Progress report.--
``(A) <<NOTE: Deadline.>> Submission.--Not later
than 60 days after the termination of the third year of
the grant period, each State educational agency
receiving a grant under this section shall submit a
progress report to the Secretary.
``(B) Information included.--The progress report
shall include information on the progress the State
educational agency and local educational agencies within
the State are making in reducing the number of students
served under this subpart in grades 1, 2, and 3 who are
reading below grade level (as demonstrated by such
information as teacher reports and school evaluations of
mastery of the essential components of reading
instruction). The report shall also include evidence
from the State educational agency and local educational
agencies within the State that the State educational
agency and the local educational agencies have
significantly increased the number of students reading
at grade level or above, significantly increased the
percentages of students described in section
1111(b)(2)(C)(v)(II) who are reading at grade level or
above, and successfully implemented this subpart.
``(2) Peer review.--The progress report described in
paragraph (1) shall be reviewed by the peer review panel
convened under section 1203(c)(2).
``(3) Consequences of insufficient progress.--After
submission of the progress report described in paragraph (1), if
the Secretary determines that the State educational agency is
not making significant progress in meeting the purposes
[[Page 115 STAT. 1543]]
of this subpart, the Secretary may withhold from the State
educational agency, in whole or in part, further payments under
this section in accordance with section 455 of the General
Education Provisions Act or take such other action authorized by
law as the Secretary determines necessary, including providing
technical assistance upon request of the State educational
agency.
``(f) Funds not Used for State Level Activities.--Any portion of
funds described in subsection (d)(1) that a State educational agency
does not expend in accordance with subsection (d)(1) shall be expended
for the purpose of making subgrants in accordance with subsection (c).
``SEC. <<NOTE: 20 USC 6363.>> 1203. STATE FORMULA GRANT APPLICATIONS.
``(a) Applications.--
``(1) In general.--A State educational agency that desires
to receive a grant under section 1202 shall submit an
application to the Secretary at such time and in such form as
the Secretary may require. The application shall contain the
information described in subsection (b).
``(2) Special application provisions.--For those State
educational agencies that have received a grant under part C of
title II (as such part was in effect on the day before the date
of enactment of the No Child Left Behind Act of 2001), the
Secretary shall establish a modified set of requirements for an
application under this section that takes into account the
information already submitted and approved under that program
and minimizes the duplication of effort on the part of such
State educational agencies.
``(b) Contents.--An application under this section shall contain the
following:
``(1) An assurance that the Governor of the State, in
consultation with the State educational agency, has established
a reading and literacy partnership described in subsection (d),
and a description of how such partnership--
``(A) coordinated the development of the
application; and
``(B) will assist in the oversight and evaluation of
the State educational agency's activities under this
subpart.
``(2) A description, if applicable, of the State's strategy
to expand, continue, or modify activities authorized under part
C of title II (as such part was in effect on the day before the
date of enactment of the No Child Left Behind Act of 2001).
``(3) An assurance that the State educational agency, and
any local educational agencies receiving a subgrant from that
State educational agency under section 1202, will, if requested,
participate in the external evaluation under section 1205.
``(4) A State educational agency plan containing a
description of the following:
``(A) How the State educational agency will assist
local educational agencies in identifying screening,
diagnostic, and classroom-based instructional reading
assessments.
``(B) How the State educational agency will assist
local educational agencies in identifying instructional
materials, programs, strategies, and approaches, based
on scientifically based reading research, including
early intervention
[[Page 115 STAT. 1544]]
and reading remediation materials, programs, and
approaches.
``(C) How the State educational agency will ensure
that professional development activities related to
reading instruction and provided under section 1202
are--
``(i) coordinated with other Federal, State,
and local level funds, and used effectively to
improve instructional practices for reading; and
``(ii) based on scientifically based reading
research.
``(D) How the activities assisted under section 1202
will address the needs of teachers and other
instructional staff in implementing the essential
components of reading instruction.
``(E) How subgrants made by the State educational
agency under section 1202 will meet the requirements of
section 1202, including how the State educational agency
will ensure that eligible local educational agencies
receiving subgrants under section 1202 will use
practices based on scientifically based reading
research.
``(F) How the State educational agency will, to the
extent practicable, make grants to eligible local
educational agencies in both rural and urban areas.
``(G) How the State educational agency will build
on, and promote coordination among literacy programs in
the State (including federally funded programs such as
programs under the Adult Education and Family Literacy
Act, the Individuals with Disabilities Education Act,
and subpart 2), to increase the effectiveness of the
programs in improving reading for adults and children
and to avoid duplication of the efforts of the program.
``(H) How the State educational agency will assess
and evaluate, on a regular basis, eligible local
educational agency activities assisted under section
1202, with respect to whether the activities have been
effective in achieving the purposes of section 1202.
``(I) Any other information that the Secretary may
reasonably require.
``(c) Approval of Applications.--
``(1) In general.--The Secretary shall approve an
application of a State educational agency under this section
only if such application meets the requirements of this section.
``(2) Peer review.--
``(A) In general.--The Secretary, in consultation
with the National Institute for Literacy, shall convene
a panel to evaluate applications under this section. At
a minimum, the panel shall include--
``(i) three individuals selected by the
Secretary;
``(ii) three individuals selected by the
National Institute for Literacy;
``(iii) three individuals selected by the
National Research Council of the National Academy
of Sciences; and
``(iv) three individuals selected by the
National Institute of Child Health and Human
Development.
``(B) Experts.--The panel shall include--
[[Page 115 STAT. 1545]]
``(i) experts who are competent, by virtue of
their training, expertise, or experience, to
evaluate applications under this section;
``(ii) experts who provide professional
development to individuals who teach reading to
children and adults based on scientifically based
reading research;
``(iii) experts who provide professional
development to other instructional staff based on
scientifically based reading research; and
``(iv) an individual who has expertise in
screening, diagnostic, and classroom-based
instructional reading assessments.
``(C) Recommendations.--The panel shall recommend
grant applications from State educational agencies under
this section to the Secretary for funding or for
disapproval.
``(d) Reading and Literacy Partnerships.--
``(1) In general.--For a State educational agency to receive
a grant under section 1202, the Governor of the State, in
consultation with the State educational agency, shall establish
a reading and literacy partnership.
``(2) Required participants.--The reading and literacy
partnership shall include the following participants:
``(A) The Governor of the State.
``(B) The chief State school officer.
``(C) The chairman and the ranking member of each
committee of the State legislature that is responsible
for education policy.
``(D) A representative, selected jointly by the
Governor and the chief State school officer, of at least
one eligible local educational agency.
``(E) A representative, selected jointly by the
Governor and the chief State school officer, of a
community-based organization working with children to
improve their reading skills, particularly a community-
based organization using tutors and scientifically based
reading research.
``(F) State directors of appropriate Federal or
State programs with a strong reading component, selected
jointly by the Governor and the chief State school
officer.
``(G) A parent of a public or private school student
or a parent who educates the parent's child in the
parent's home, selected jointly by the Governor and the
chief State school officer.
``(H) A teacher, who may be a special education
teacher, who successfully teaches reading, and another
instructional staff member, selected jointly by the
Governor and the chief State school officer.
``(I) A family literacy service provider selected
jointly by the Governor and the chief State school
officer.
``(3) Optional participants.--The reading and literacy
partnership may include additional participants, who shall be
selected jointly by the Governor and the chief State school
officer, and who may include a representative of--
``(A) an institution of higher education operating a
program of teacher preparation in the State that is
based on scientifically based reading research;
``(B) a local educational agency;
[[Page 115 STAT. 1546]]
``(C) a private nonprofit or for-profit eligible
professional development provider providing instruction
based on scientifically based reading research;
``(D) an adult education provider;
``(E) a volunteer organization that is involved in
reading programs; or
``(F) a school library or a public library that
offers reading or literacy programs for children or
families.
``(4) Preexisting partnership.--If, before the date of
enactment of the No Child Left Behind Act of 2001, a State
educational agency established a consortium, partnership, or any
other similar body that was considered a reading and literacy
partnership for purposes of part C of title II of this Act (as
such part was in effect on the day before the date of enactment
of No Child Left Behind Act of 2001), that consortium,
partnership, or body may be considered a reading and literacy
partnership for purposes of this subsection consistent with the
provisions of this subpart.
``SEC. <<NOTE: 20 USC 6364.>> 1204. TARGETED ASSISTANCE GRANTS.
``(a) Eligibility Criteria for Awarding Targeted Assistance Grants
to States.--Beginning <<NOTE: Effective date.>> with fiscal year 2004,
from funds appropriated under section 1202(b)(1)(E), the Secretary shall
make grants, on a competitive basis, to those State educational agencies
that--
``(1) for each of 2 consecutive years, demonstrate that an
increasing percentage of third graders in each of the groups
described in section 1111(b)(2)(C)(v)(II) in the schools served
by the local educational agencies receiving funds under section
1202 are reaching the proficient level in reading; and
``(2) for each of the same such consecutive 2 years,
demonstrate that schools receiving funds under section 1202 are
improving the reading skills of students in grades 1, 2, and 3
based on screening, diagnostic, and classroom-based
instructional reading assessments.
``(b) Continuation of Performance Awards.--For any State educational
agency that receives a competitive grant under this section, the
Secretary shall make an award for each of the succeeding years that the
State educational agency demonstrates it is continuing to meet the
criteria described in subsection (a).
``(c) Distribution of Targeted Assistance Grants.--
``(1) In general.--The Secretary shall make a grant to each
State educational agency with an application approved under this
section in an amount that bears the same relation to the amount
made available to carry out this section for a fiscal year as
the number of children counted under section 1124(c) for the
State bears to the number of such children so counted for all
States with applications approved for that year.
``(2) Peer review.--The peer review panel convened under
section 1203(c)(2) shall review the applications submitted under
this subsection. The panel shall recommend such applications to
the Secretary for funding or for disapproval.
``(3) Application contents.--A State educational agency that
desires to receive a grant under this section shall submit an
application to the Secretary at such time, in such manner,
[[Page 115 STAT. 1547]]
and accompanied by such information as the Secretary may
require. Each such application shall include the following:
``(A) Evidence that the State educational agency has
carried out its obligations under section 1203.
``(B) Evidence that the State educational agency has
met the criteria described in subsection (a).
``(C) The amount of funds requested by the State
educational agency and a description of the criteria the
State educational agency intends to use in distributing
subgrants to eligible local educational agencies under
this section to continue or expand activities under
subsection (d)(5).
``(D) Evidence that the State educational agency has
increased significantly the percentage of students
reading at grade level or above.
``(E) Any additional evidence that demonstrates
success in the implementation of this section.
``(d) Subgrants to Eligible Local Educational Agencies.--
``(1) In general.--The Secretary may make a grant to a State
educational agency under this section only if the State
educational agency agrees to expend 100 percent of the amount of
the funds provided under the grant for the purpose of making
competitive subgrants in accordance with this subsection to
eligible local educational agencies.
``(2) Notice.--A State educational agency receiving a grant
under this section shall provide notice to all local educational
agencies in the State of the availability of competitive
subgrants under this subsection and of the requirements for
applying for the subgrants.
``(3) Application.--To be eligible to receive a subgrant
under this subsection, an eligible local educational agency
shall submit an application to the State educational agency at
such time, in such manner, and containing such information as
the State educational agency may reasonably require.
``(4) Distribution.--
``(A) In general.--A State educational agency shall
distribute subgrants under this section through a
competitive process based on relative need of eligible
local educational agencies and the evidence described in
this paragraph.
``(B) Evidence used in all years.--For all fiscal
years, a State educational agency shall distribute
subgrants under this section based on evidence that an
eligible local educational agency--
``(i) satisfies the requirements of section
1202(c)(4);
``(ii) will carry out its obligations under
this subpart;
``(iii) will work with other local educational
agencies in the State that have not received a
subgrant under this subsection to assist such
nonreceiving agencies in increasing the reading
achievement of students; and
``(iv) is meeting the criteria described in
subsection (a).
``(5) Local uses of funds.--An eligible local educational
agency that receives a subgrant under this subsection--
[[Page 115 STAT. 1548]]
``(A) shall use the funds provided under the
subgrant to carry out the activities described in
section 1202(c)(7)(A); and
``(B) may use such funds to carry out the activities
described in section 1202(c)(7)(B).
``SEC. <<NOTE: 20 USC 6365.>> 1205. EXTERNAL EVALUATION.
``(a) <<NOTE: Contracts.>> In General.--From funds reserved under
section 1202(b)(1)(C), the Secretary shall contract with an independent
organization outside of the Department for a 5-year, rigorous,
scientifically valid, quantitative evaluation of this subpart.
``(b) Process.--The evaluation under subsection (a) shall be
conducted by an organization that is capable of designing and carrying
out an independent evaluation that identifies the effects of specific
activities carried out by State educational agencies and local
educational agencies under this subpart on improving reading
instruction. Such evaluation shall take into account factors influencing
student performance that are not controlled by teachers or education
administrators.
``(c) Analysis.--The evaluation under subsection (a) shall include
the following:
``(1) An analysis of the relationship between each of the
essential components of reading instruction and overall reading
proficiency.
``(2) An analysis of whether assessment tools used by State
educational agencies and local educational agencies measure the
essential components of reading.
``(3) An analysis of how State reading standards correlate
with the essential components of reading instruction.
``(4) An analysis of whether the receipt of a targeted
assistance grant under section 1204 results in an increase in
the number of children who read proficiently.
``(5) A measurement of the extent to which specific
instructional materials improve reading proficiency.
``(6) A measurement of the extent to which specific
screening, diagnostic, and classroom-based instructional reading
assessments assist teachers in identifying specific reading
deficiencies.
``(7) A measurement of the extent to which professional
development programs implemented by State educational agencies
using funds received under this subpart improve reading
instruction.
``(8) A measurement of how well students preparing to enter
the teaching profession are prepared to teach the essential
components of reading instruction.
``(9) An analysis of changes in students' interest in
reading and time spent reading outside of school.
``(10) Any other analysis or measurement pertinent to this
subpart that is determined to be appropriate by the Secretary.
``(d) Program Improvement.--The findings of the evaluation conducted
under this section shall be provided to State educational agencies and
local educational agencies on a periodic basis for use in program
improvement.
``SEC. <<NOTE: 20 USC 6366.>> 1206. NATIONAL ACTIVITIES.
``From funds reserved under section 1202(b)(1)(C), the Secretary--
[[Page 115 STAT. 1549]]
``(1) may provide technical assistance in achieving the
purposes of this subpart to State educational agencies, local
educational agencies, and schools requesting such assistance;
``(2) shall, at a minimum, evaluate the impact of services
provided to children under this subpart with respect to their
referral to, and eligibility for, special education services
under the Individuals with Disabilities Education Act (based on
their difficulties learning to read); and
``(3) shall carry out the external evaluation as described
in section 1205.
``SEC. <<NOTE: 20 USC 6367.>> 1207. INFORMATION DISSEMINATION.
``(a) In General.--From funds reserved under section 1202(b)(1)(D),
the National Institute for Literacy, in collaboration with the Secretary
of Education, the Secretary of Health and Human Services, and the
Director of the National Institute for Child Health and Human
Development shall--
``(1) disseminate information on scientifically based
reading research pertaining to children, youth, and adults;
``(2) identify and disseminate information about schools,
local educational agencies, and State educational agencies that
have effectively developed and implemented classroom reading
programs that meet the requirements of this subpart, including
those State educational agencies, local educational agencies,
and schools that have been identified as effective through the
evaluation and peer review provisions of this subpart; and
``(3) support the continued identification and dissemination
of information on reading programs that contain the essential
components of reading instruction as supported by scientifically
based reading research, that can lead to improved reading
outcomes for children, youth, and adults.
``(b) Dissemination and Coordination.--At a minimum, the National
Institute for Literacy shall disseminate the information described in
subsection (a) to--
``(1) recipients of Federal financial assistance under this
title, title III, the Head Start Act, the Individuals with
Disabilities Education Act, and the Adult Education and Family
Literacy Act; and
``(2) each Bureau funded school (as defined in section 1141
of the Education Amendments of 1978).
``(c) Use of Existing Networks.--In carrying out this section, the
National Institute for Literacy shall, to the extent practicable, use
existing information and dissemination networks developed and maintained
through other public and private entities including through the
Department and the National Center for Family Literacy.
``(d) National Institute for Literacy.--For purposes of funds
reserved under section 1202(b)(1)(D) to carry out this section, the
National Institute for Literacy shall administer such funds in
accordance with section 242(b) of Public Law 105-220 (relating to the
establishment and administration of the National Institute for
Literacy).
``SEC. <<NOTE: 20 USC 6368.>> 1208. DEFINITIONS.
``In this subpart:
``(1) Eligible local educational agency.--The term `eligible
local educational agency' means a local educational agency
that--
[[Page 115 STAT. 1550]]
``(A) is among the local educational agencies in the
State with the highest numbers or percentages of
students in kindergarten through grade 3 reading below
grade level, based on the most currently available data;
and
``(B) has--
``(i) jurisdiction over a geographic area that
includes an area designated as an empowerment
zone, or an enterprise community, under part I of
subchapter U of chapter 1 of the Internal Revenue
Code of 1986;
``(ii) jurisdiction over a significant number
or percentage of schools that are identified for
school improvement under section 1116(b); or
``(iii) the highest numbers or percentages of
children who are counted under section 1124(c), in
comparison to other local educational agencies in
the State.
``(2) Eligible professional development provider.--The term
`eligible professional development provider' means a provider of
professional development in reading instruction to teachers,
including special education teachers, that is based on
scientifically based reading research.
``(3) Essential components of reading instruction.--The term
`essential components of reading instruction' means explicit and
systematic instruction in--
``(A) phonemic awareness;
``(B) phonics;
``(C) vocabulary development;
``(D) reading fluency, including oral reading
skills; and
``(E) reading comprehension strategies.
``(4) Instructional staff.--The term `instructional staff'--
``(A) means individuals who have responsibility for
teaching children to read; and
``(B) includes principals, teachers, supervisors of
instruction, librarians, library school media
specialists, teachers of academic subjects other than
reading, and other individuals who have responsibility
for assisting children to learn to read.
``(5) Reading.--The term `reading' means a complex system of
deriving meaning from print that requires all of the following:
``(A) The skills and knowledge to understand how
phonemes, or speech sounds, are connected to print.
``(B) The ability to decode unfamiliar words.
``(C) The ability to read fluently.
``(D) Sufficient background information and
vocabulary to foster reading comprehension.
``(E) The development of appropriate active
strategies to construct meaning from print.
``(F) The development and maintenance of a
motivation to read.
``(6) Scientifically based reading research.--The term
`scientifically based reading research' means research that--
``(A) applies rigorous, systematic, and objective
procedures to obtain valid knowledge relevant to reading
development, reading instruction, and reading
difficulties; and
``(B) includes research that--
[[Page 115 STAT. 1551]]
``(i) employs systematic, empirical methods
that draw on observation or experiment;
``(ii) involves rigorous data analyses that
are adequate to test the stated hypotheses and
justify the general conclusions drawn;
``(iii) relies on measurements or
observational methods that provide valid data
across evaluators and observers and across
multiple measurements and observations; and
``(iv) has been accepted by a peer-reviewed
journal or approved by a panel of independent
experts through a comparably rigorous, objective,
and scientific review.
``(7) Screening, diagnostic, and classroom-based
instructional reading assessments.--
``(A) In general.--The term `screening, diagnostic,
and classroom-based instructional reading assessments'
means--
``(i) screening reading assessments;
``(ii) diagnostic reading assessments; and
``(iii) classroom-based instructional reading
assessments.
``(B) Screening reading assessment.--The term
`screening reading assessment' means an assessment that
is--
``(i) valid, reliable, and based on
scientifically based reading research; and
``(ii) a brief procedure designed as a first
step in identifying children who may be at high
risk for delayed development or academic failure
and in need of further diagnosis of their need for
special services or additional reading
instruction.
``(C) Diagnostic reading assessment.--The term
`diagnostic reading assessment' means an assessment that
is--
``(i) valid, reliable, and based on
scientifically based reading research; and
``(ii) used for the purpose of--
``(I) identifying a child's specific
areas of strengths and weaknesses so
that the child has learned to read by
the end of grade 3;
``(II) determining any difficulties
that a child may have in learning to
read and the potential cause of such
difficulties; and
``(III) helping to determine
possible reading intervention strategies
and related special needs.
``(D) Classroom-based instructional reading
assessment.--The term `classroom-based instructional
reading assessment' means an assessment that--
``(i) evaluates children's learning based on
systematic observations by teachers of children
performing academic tasks that are part of their
daily classroom experience; and
``(ii) is used to improve instruction in
reading, including classroom instruction.
[[Page 115 STAT. 1552]]
``Subpart 2--Early Reading First
``SEC. <<NOTE: 20 USC 6371.>> 1221. PURPOSES; DEFINITIONS.
``(a) Purposes.--The purposes of this subpart are as follows:
``(1) To support local efforts to enhance the early
language, literacy, and prereading development of preschool age
children, particularly those from low-income families, through
strategies and professional development that are based on
scientifically based reading research.
``(2) To provide preschool age children with cognitive
learning opportunities in high-quality language and literature-
rich environments, so that the children can attain the
fundamental knowledge and skills necessary for optimal reading
development in kindergarten and beyond.
``(3) To demonstrate language and literacy activities based
on scientifically based reading research that supports the age-
appropriate development of--
``(A) recognition, leading to automatic recognition,
of letters of the alphabet;
``(B) knowledge of letter sounds, the blending of
sounds, and the use of increasingly complex vocabulary;
``(C) an understanding that written language is
composed of phonemes and letters each representing one
or more speech sounds that in combination make up
syllables, words, and sentences;
``(D) spoken language, including vocabulary and oral
comprehension abilities; and
``(E) knowledge of the purposes and conventions of
print.
``(4) To use screening assessments to effectively identify
preschool age children who may be at risk for reading failure.
``(5) To integrate such scientific reading research-based
instructional materials and literacy activities with existing
programs of preschools, child care agencies and programs, Head
Start centers, and family literacy services.
``(b) Definitions.--For purposes of this subpart:
``(1) Eligible applicant.--The term `eligible applicant'
means--
``(A) one or more local educational agencies that
are eligible to receive a subgrant under subpart 1;
``(B) one or more public or private organizations or
agencies, acting on behalf of one or more programs that
serve preschool age children (such as a program at a
Head Start center, a child care program, or a family
literacy program), which organizations or agencies shall
be located in a community served by a local educational
agency described in subparagraph (A); or
``(C) one or more local educational agencies
described in subparagraph (A) in collaboration with one
or more organizations or agencies described in
subparagraph (B).
``(2) Scientifically based reading research.--The term
`scientifically based reading research' has the same meaning
given to that term in section 1208.
``(3) Screening reading assessment.--The term `screening
reading assessment' has the same meaning given to that term in
section 1208.
[[Page 115 STAT. 1553]]
``SEC. <<NOTE: 20 USC 6372.>> 1222. LOCAL EARLY READING FIRST GRANTS.
``(a) Program Authorized.--From amounts appropriated under section
1002(b)(2), the Secretary shall award grants, on a competitive basis,
for periods of not more than 6 years, to eligible applicants to enable
the eligible applicants to carry out the authorized activities described
in subsection (d).
``(b) Applications.--An eligible applicant that desires to receive a
grant under this section shall submit an application to the Secretary,
which shall include a description of--
``(1) the programs to be served by the proposed project,
including demographic and socioeconomic information on the
preschool age children enrolled in the programs;
``(2) how the proposed project will enhance the school
readiness of preschool age children in high-quality oral
language and literature-rich environments;
``(3) how the proposed project will prepare and provide
ongoing assistance to staff in the programs, through
professional development and other support, to provide high-
quality language, literacy, and prereading activities using
scientifically based reading research, for preschool age
children;
``(4) how the proposed project will provide services and use
instructional materials that are based on scientifically based
reading research on early language acquisition, prereading
activities, and the development of spoken vocabulary skills;
``(5) how the proposed project will help staff in the
programs to meet more effectively the diverse needs of preschool
age children in the community, including such children with
limited English proficiency, disabilities, or other special
needs;
``(6) how the proposed project will integrate such
instructional materials and literacy activities with existing
preschool programs and family literacy services;
``(7) how the proposed project will help children,
particularly children experiencing difficulty with spoken
language, prereading, and early reading skills, to make the
transition from preschool to formal classroom instruction in
school;
``(8) if the eligible applicant has received a subgrant
under subpart 1, how the activities conducted under this subpart
will be coordinated with the eligible applicant's activities
under subpart 1 at the kindergarten through grade 3 level;
``(9) how the proposed project will evaluate the success of
the activities supported under this subpart in enhancing the
early language, literacy, and prereading development of
preschool age children served by the project; and
``(10) such other information as the Secretary may require.
``(c) Approval of Local Applications.--The Secretary shall select
applicants for funding under this subpart based on the quality of the
applications and the recommendations of a peer review panel convened
under section 1203(c)(2), that includes, at a minimum, three
individuals, selected from the entities described in clauses (ii),
(iii), and (iv) of section 1203(c)(2)(A), who are experts in early
reading development and early childhood development.
``(d) Authorized Activities.--An eligible applicant that receives a
grant under this subpart shall use the funds provided under the grant to
carry out the following activities:
[[Page 115 STAT. 1554]]
``(1) Providing preschool age children with high-quality
oral language and literature-rich environments in which to
acquire language and prereading skills.
``(2) Providing professional development that is based on
scientifically based reading research knowledge of early
language and reading development for the staff of the eligible
applicant and that will assist in developing the preschool age
children's--
``(A) recognition, leading to automatic recognition,
of letters of the alphabet, knowledge of letters,
sounds, blending of letter sounds, and increasingly
complex vocabulary;
``(B) understanding that written language is
composed of phonemes and letters each representing one
or more speech sounds that in combination make up
syllables, words, and sentences;
``(C) spoken language, including vocabulary and oral
comprehension abilities; and
``(D) knowledge of the purposes and conventions of
print.
``(3) Identifying and providing activities and instructional
materials that are based on scientifically based reading
research for use in developing the skills and abilities
described in paragraph (2).
``(4) Acquiring, providing training for, and implementing
screening reading assessments or other appropriate measures that
are based on scientifically based reading research to determine
whether preschool age children are developing the skills
described in this subsection.
``(5) Integrating such instructional materials, activities,
tools, and measures into the programs offered by the eligible
applicant.
``(e) Award Amounts.--The Secretary may establish a maximum award
amount, or ranges of award amounts, for grants under this subpart.
``SEC. <<NOTE: 20 USC 6373.>> 1223. FEDERAL ADMINISTRATION.
``The Secretary shall consult with the Secretary of Health and Human
Services to coordinate the activities under this subpart with preschool
age programs administered by the Department of Health and Human
Services.
``SEC. 1224. <<NOTE: 20 USC 6374.>> INFORMATION DISSEMINATION.
``From the funds the National Institute for Literacy receives under
section 1202(b)(1)(D), the National Institute for Literacy, in
consultation with the Secretary, shall disseminate information regarding
projects assisted under this subpart that have proven effective.
``SEC. <<NOTE: 20 USC 6375.>> 1225. REPORTING REQUIREMENTS.
``Each eligible applicant receiving a grant under this subpart shall
report annually to the Secretary regarding the eligible applicant's
progress in addressing the purposes of this subpart. Such report shall
include, at a minimum, a description of--
``(1) the research-based instruction, materials, and
activities being used in the programs funded under the grant;
``(2) the types of programs funded under the grant and the
ages of children served by such programs;
[[Page 115 STAT. 1555]]
``(3) the qualifications of the program staff who provide
early literacy instruction under such programs and the type of
ongoing professional development provided to such staff; and
``(4) the results of the evaluation described in section
1222(b)(9).
``SEC. <<NOTE: 20 USC 6376.>> 1226. EVALUATION.
``(a) <<NOTE: Effective date. Termination date.>> In General.--From
the total amount made available under section 1002(b)(2) for the period
beginning October 1, 2002, and ending September 30, 2006, the Secretary
shall reserve not more than $3,000,000 to conduct an independent
evaluation of the effectiveness of this subpart.
``(b) <<NOTE: Deadlines.>> Reports.--
``(1) Interim report.--Not later than October 1, 2004, the
Secretary shall submit an interim report to the Committee on
Education and the Workforce of the House of Representatives and
the Committee on Health, Education, Labor, and Pensions of the
Senate.
``(2) Final report.--Not later than September 30, 2006, the
Secretary shall submit a final report to the committees
described in paragraph (1).
``(c) Contents.--The reports submitted under subsection (b) shall
include information on the following:
``(1) How the grant recipients under this subpart are
improving the prereading skills of preschool children.
``(2) The effectiveness of the professional development
program assisted under this subpart.
``(3) How early childhood teachers are being prepared with
scientifically based reading research on early reading
development.
``(4) What activities and instructional practices are most
effective.
``(5) How prereading instructional materials and literacy
activities based on scientifically based reading research are
being integrated into preschools, child care agencies and
programs, programs carried out under the Head Start Act, and
family literacy programs.
``(6) Any recommendations on strengthening or modifying this
subpart.
``Subpart 3--William F. Goodling Even Start Family Literacy Programs
``SEC. <<NOTE: 20 USC 6381.>> 1231. STATEMENT OF PURPOSE.
``It is the purpose of this subpart to help break the cycle of
poverty and illiteracy by--
``(1) improving the educational opportunities of the
Nation's low-income families by integrating early childhood
education, adult literacy or adult basic education, and
parenting education into a unified family literacy program, to
be referred to as `Even Start'; and
``(2) establishing a program that shall--
``(A) be implemented through cooperative projects
that build on high-quality existing community resources
to create a new range of services;
[[Page 115 STAT. 1556]]
``(B) promote the academic achievement of children
and adults;
``(C) assist children and adults from low-income
families to achieve to challenging State content
standards and challenging State student achievement
standards; and
``(D) use instructional programs based on
scientifically based reading research and addressing the
prevention of reading difficulties for children and
adults, to the extent such research is available.
``SEC. <<NOTE: 20 USC 6381a.>> 1232. PROGRAM AUTHORIZED.
``(a) Reservation for Migrant Programs, Outlying Areas, and Indian
Tribes.--
``(1) In general.--For each fiscal year, the Secretary shall
reserve 5 percent of the amount appropriated under section
1002(b)(3) (or, if such appropriated amount exceeds
$200,000,000, 6 percent of such amount) for programs, under such
terms and conditions as the Secretary shall establish, that are
consistent with the purpose of this subpart, and according to
their relative needs, for--
``(A) children of migratory workers;
``(B) the outlying areas; and
``(C) Indian tribes and tribal organizations.
``(2) Special rule.--After December 21, 2000, the Secretary
shall award a grant, on a competitive basis, of sufficient size
and for a period of sufficient duration to demonstrate the
effectiveness of a family literacy program in a prison that
houses women and their preschool age children and that has the
capability of developing a program of high quality.
``(3) Coordination of programs for american indians.--The
Secretary shall ensure that programs under paragraph (1)(C) are
coordinated with family literacy programs operated by the Bureau
of Indian Affairs in order to avoid duplication and to encourage
the dissemination of information on high-quality family literacy
programs serving American Indians.
``(b) Reservation for Federal Activities.--
``(1) Evaluation, technical assistance, program improvement,
and replication activities.--Subject to paragraph (2), from
amounts appropriated under section 1002(b)(3), the Secretary may
reserve not more than 3 percent of such amounts for purposes
of--
``(A) carrying out the evaluation required by
section 1239; and
``(B) providing, through grants or contracts with
eligible organizations, technical assistance, program
improvement, and replication activities.
``(2) Research.--In any fiscal year, if the amount
appropriated under section 1002(b)(3) for such year--
``(A) is equal to or less than the amount
appropriated for the preceding fiscal year, the
Secretary may reserve from such amount only the amount
necessary to continue multi-year activities carried out
pursuant to section 1241(b) that began during or prior
to the fiscal year preceding the fiscal year for which
the determination is made; or
``(B) exceeds the amount appropriated for the
preceding fiscal year, then the Secretary shall reserve
from such
[[Page 115 STAT. 1557]]
excess amount $2,000,000 or 50 percent, whichever is
less, to carry out section 1241(b).
``(c) Reservation for Grants.--
``(1) Grants authorized.--
``(A) In general.--For any fiscal year for which at
least one State educational agency applies and submits
an application that meets the requirements and goals of
this subsection and for which the amount appropriated
under section 1002(b)(3) exceeds the amount appropriated
under that section for the preceding fiscal year, the
Secretary shall reserve, from the amount of the excess
remaining after the application of subsection (b)(2),
the amount of the remainder or $1,000,000, whichever is
less, to award grants, on a competitive basis, to State
educational agencies to enable them to plan and
implement statewide family literacy initiatives to
coordinate and, where appropriate, integrate existing
Federal, State, and local literacy resources consistent
with the purposes of this subpart.
``(B) Coordination and integration.--The
coordination and integration described in subparagraph
(A) shall include coordination and integration of funds
available under the Adult Education and Family Literacy
Act, the Head Start Act, this subpart, part A of this
title, and part A of title IV of the Social Security
Act.
``(C) Restriction.--No State educational agency may
receive more than one grant under this subsection.
``(2) Consortia.--
``(A) Establishment.--To receive a grant under this
subsection, a State educational agency shall establish a
consortium of State-level programs under the following
provisions of laws:
``(i) This title (other than part D).
``(ii) The Head Start Act.
``(iii) The Adult Education and Family
Literacy Act.
``(iv) All other State-funded preschool
programs and programs providing literacy services
to adults.
``(B) Plan.--To receive a grant under this
subsection, the consortium established by a State
educational agency shall create a plan to use a portion
of the State educational agency's resources, derived
from the programs referred to in subparagraph (A), to
strengthen and expand family literacy services in the
State.
``(C) Coordination with subpart 1.--The consortium
shall coordinate its activities under this paragraph
with the activities of the reading and literacy
partnership for the State educational agency established
under section 1203(d), if the State educational agency
receives a grant under section 1202.
``(3) Reading instruction.--Statewide family literacy
initiatives implemented under this subsection shall base reading
instruction on scientifically based reading research.
``(4) Technical assistance.--The Secretary shall provide,
directly or through a grant or contract with an organization
with experience in the development and operation of successful
[[Page 115 STAT. 1558]]
family literacy services, technical assistance to State
educational agencies receiving a grant under this subsection.
``(5) Matching requirement.--The Secretary shall not make a
grant to a State educational agency under this subsection unless
the State educational agency agrees that, with respect to the
costs to be incurred by the eligible consortium in carrying out
the activities for which the grant was awarded, the State
educational agency will make available non-Federal contributions
in an amount equal to not less than the Federal funds provided
under the grant.
``(d) State Educational Agency Allocation.--
``(1) In general.--From amounts appropriated under section
1002(b)(3) and not reserved under subsection (a), (b), or (c),
the Secretary shall make grants to State educational agencies
from allocations under paragraph (2).
``(2) Allocations.--Except as provided in paragraph (3),
from the total amount available under paragraph (1) for
allocation to State educational agencies in any fiscal year,
each State educational agency shall be eligible to receive a
grant under paragraph (1) in an amount that bears the same ratio
to the total amount as the amount allocated under part A to that
State educational agency bears to the total amount allocated
under that part to all State educational agencies.
``(3) Minimum.--No State educational agency shall receive a
grant under paragraph (1) in any fiscal year in an amount that
is less than $250,000, or one-half of 1 percent of the amount
appropriated under section 1002(b)(3) and not reserved under
subsections (a), (b), and (c) for such year, whichever is
greater.
``(e) Definitions.--For the purpose of this subpart--
``(1) the term `eligible entity' means a partnership
composed of--
``(A) a local educational agency; and
``(B) a nonprofit community-based organization, a
public agency other than a local educational agency, an
institution of higher education, or a public or private
nonprofit organization other than a local educational
agency, of demonstrated quality;
``(2) the term `eligible organization' means any public or
private nonprofit organization with a record of providing
effective services to family literacy providers, such as the
National Center for Family Literacy, Parents as Teachers, Inc.,
the Home Instruction Program for Preschool Youngsters, and the
Home and School Institute, Inc.;
``(3) the terms `Indian tribe' and `tribal organization'
have the meanings given those terms in section 4 of the Indian
Self-Determination and Education Assistance Act;
``(4) the term `scientifically based reading research' has
the meaning given that term in section 1208; and
``(5) the term `State' means each of the 50 States, the
District of Columbia, and the Commonwealth of Puerto Rico.
``SEC. <<NOTE: 20 USC 6381b.>> 1233. STATE EDUCATIONAL AGENCY PROGRAMS.
``(a) State Educational Agency Level Activities.--Each State
educational agency that receives a grant under section 1232(d)(1) may
use not more than a total of 6 percent of the grant funds for the costs
of--
[[Page 115 STAT. 1559]]
``(1) administration, which amount shall not exceed half of
the total;
``(2) providing, through one or more subgrants or contracts,
technical assistance for program improvement and replication, to
eligible entities that receive subgrants under subsection (b);
and
``(3) carrying out sections 1240 and 1234(c).
``(b) Subgrants for Local Programs.--
``(1) In general.--Each State educational agency shall use
the grant funds received under section 1232(d)(1) and not
reserved under subsection (a) to award subgrants to eligible
entities to carry out Even Start programs.
``(2) Minimum subgrant amounts.--
``(A) In general.--Except as provided in
subparagraphs (B) and (C), no State educational agency
shall award a subgrant under paragraph (1) in an amount
less than $75,000.
``(B) Subgrantees in ninth and succeeding years.--No
State educational agency shall award a subgrant under
paragraph (1) in an amount less than $52,500 to an
eligible entity for a fiscal year to carry out an Even
Start program that is receiving assistance under this
subpart or its predecessor authority for the ninth (or
any subsequent) fiscal year.
``(C) Exception for single subgrant.--A State
educational agency may award one subgrant in each fiscal
year of sufficient size, scope, and quality to be
effective in an amount less than $75,000 if, after
awarding subgrants under paragraph (1) for that fiscal
year in accordance with subparagraphs (A) and (B), less
than $75,000 is available to the State educational
agency to award those subgrants.
``SEC. <<NOTE: 20 USC 6381c.>> 1234. USES OF FUNDS.
``(a) In General.--In carrying out an Even Start program under this
subpart, a recipient of funds under this subpart shall use those funds
to pay the Federal share of the cost of providing intensive family
literacy services that involve parents and children, from birth through
age 7, in a cooperative effort to help parents become full partners in
the education of their children and to assist children in reaching their
full potential as learners.
``(b) Federal Share Limitation.--
``(1) In general.--
``(A) Federal share.--Except as provided in
paragraph (2), the Federal share under this subpart may
not exceed--
``(i) 90 percent of the total cost of the
program in the first year that the program
receives assistance under this subpart or its
predecessor authority;
``(ii) 80 percent in the second year;
``(iii) 70 percent in the third year;
``(iv) 60 percent in the fourth year;
``(v) 50 percent in the fifth, sixth, seventh,
and eighth such years; and
``(vi) 35 percent in any subsequent year.
``(B) Remaining cost.--The remaining cost of a
program assisted under this subpart may be provided in
cash or in kind, fairly evaluated, and may be obtained
from any source, including other Federal funds under
this Act.
[[Page 115 STAT. 1560]]
``(2) Waiver.--The State educational agency may waive, in
whole or in part, the Federal share described in paragraph (1)
for an eligible entity if the entity--
``(A) demonstrates that it otherwise would not be
able to participate in the program assisted under this
subpart; and
``(B) negotiates an agreement with the State
educational agency with respect to the amount of the
remaining cost to which the waiver will be applicable.
``(3) Prohibition.--Federal funds provided under this
subpart may not be used for the indirect costs of a program
assisted under this subpart, except that the Secretary may waive
this paragraph if an eligible recipient of funds reserved under
section 1232(a)(1)(C) demonstrates to the Secretary's
satisfaction that the recipient otherwise would not be able to
participate in the program assisted under this subpart.
``(c) Use of Funds for Family Literacy Services.--
``(1) In general.--A State educational agency may use a
portion of funds reserved under section 1233(a), to assist
eligible entities receiving a subgrant under section 1233(b) in
improving the quality of family literacy services provided under
Even Start programs under this subpart, except that in no case
may a State educational agency's use of funds for this purpose
for a fiscal year result in a decrease from the level of
activities and services provided to program participants in the
preceding year.
``(2) Priority.--In carrying out paragraph (1), a State
educational agency shall give priority to programs that were of
low quality, as evaluated based on the indicators of program
quality developed by the State educational agency under section
1240.
``(3) Technical assistance to help local programs raise
additional funds.--In carrying out paragraph (1), a State
educational agency may use the funds referred to in that
paragraph to provide technical assistance to help local programs
of demonstrated effectiveness to access and leverage additional
funds for the purpose of expanding services and reducing waiting
lists, including requesting and applying for non-Federal
resources.
``(4) Technical assistance and training.--Assistance under
paragraph (1) shall be in the form of technical assistance and
training, provided by a State educational agency through a
grant, contract, or cooperative agreement with an entity that
has experience in offering high-quality training and technical
assistance to family literacy providers.
``SEC. <<NOTE: 20 USC 6381d.>> 1235. PROGRAM ELEMENTS.
``Each program assisted under this subpart shall--
``(1) include the identification and recruitment of families
most in need of services provided under this subpart, as
indicated by a low level of income, a low level of adult
literacy or English language proficiency of the eligible parent
or parents, and other need-related indicators;
``(2) include screening and preparation of parents,
including teenage parents, and children to enable those parents
and
[[Page 115 STAT. 1561]]
children to participate fully in the activities and services
provided under this subpart, including testing, referral to
necessary counselling, other developmental and support services,
and related services;
``(3) be designed to accommodate the participants' work
schedule and other responsibilities, including the provision of
support services, when those services are unavailable from other
sources, necessary for participation in the activities assisted
under this subpart, such as--
``(A) scheduling and locating of services to allow
joint participation by parents and children;
``(B) child care for the period that parents are
involved in the program provided under this subpart; and
``(C) transportation for the purpose of enabling
parents and their children to participate in programs
authorized by this subpart;
``(4) include high-quality, intensive instructional programs
that promote adult literacy and empower parents to support the
educational growth of their children, developmentally
appropriate early childhood educational services, and
preparation of children for success in regular school programs;
``(5) with respect to the qualifications of staff the cost
of whose salaries are paid, in whole or in part, with Federal
funds provided under this subpart, ensure that--
``(A) <<NOTE: Deadline.>> not later than December
21, 2004--
``(i) a majority of the individuals providing
academic instruction--
``(I) shall have obtained an
associate's, bachelor's, or graduate
degree in a field related to early
childhood education, elementary school
or secondary school education, or adult
education; and
``(II) if applicable, shall meet
qualifications established by the State
for early childhood education,
elementary school or secondary school
education, or adult education provided
as part of an Even Start program or
another family literacy program;
``(ii) the individual responsible for
administration of family literacy services under
this subpart has received training in the
operation of a family literacy program; and
``(iii) paraprofessionals who provide support
for academic instruction have a secondary school
diploma or its recognized equivalent; and
``(B) all new personnel hired to provide academic
instruction--
``(i) have obtained an associate's,
bachelor's, or graduate degree in a field related
to early childhood education, elementary school or
secondary school education, or adult education;
and
``(ii) if applicable, meet qualifications
established by the State for early childhood
education, elementary school or secondary school
education, or adult education provided as part of
an Even Start program or another family literacy
program;
[[Page 115 STAT. 1562]]
``(6) include special training of staff, including child-
care staff, to develop the skills necessary to work with parents
and young children in the full range of instructional services
offered through this subpart;
``(7) provide and monitor integrated instructional services
to participating parents and children through home-based
programs;
``(8) operate on a year-round basis, including the provision
of some program services, including instructional and enrichment
services, during the summer months;
``(9) be coordinated with--
``(A) other programs assisted under this Act;
``(B) any relevant programs under the Adult
Education and Family Literacy Act, the Individuals with
Disabilities Education Act, and title I of the Workforce
Investment Act of 1998; and
``(C) the Head Start program, volunteer literacy
programs, and other relevant programs;
``(10) use instructional programs based on scientifically
based reading research for children and adults, to the extent
that research is available;
``(11) encourage participating families to attend regularly
and to remain in the program a sufficient time to meet their
program goals;
``(12) include reading-readiness activities for preschool
children based on scientifically based reading research, to the
extent available, to ensure that children enter school ready to
learn to read;
``(13) if applicable, promote the continuity of family
literacy to ensure that individuals retain and improve their
educational outcomes;
``(14) ensure that the programs will serve those families
most in need of the activities and services provided by this
subpart; and
``(15) provide for an independent evaluation of the program,
to be used for program improvement.
``SEC. <<NOTE: 20 USC 6381e.>> 1236. ELIGIBLE PARTICIPANTS.
``(a) In General.--Except as provided in subsection (b), eligible
participants in an Even Start program are--
``(1) a parent or parents--
``(A) who are eligible for participation in adult
education and literacy activities under the Adult
Education and Family Literacy Act; or
``(B) who are within the State's compulsory school
attendance age range, so long as a local educational
agency provides (or ensures the availability of) the
basic education component required under this subpart,
or who are attending secondary school; and
``(2) the child or children, from birth through age 7, of
any individual described in paragraph (1).
``(b) Eligibility for Certain Other Participants.--
``(1) In general.--Family members of eligible participants
described in subsection (a) may participate in activities and
services provided under this subpart, when appropriate to serve
the purpose of this subpart.
[[Page 115 STAT. 1563]]
``(2) Special rule.--Any family participating in a program
assisted under this subpart that becomes ineligible to
participate as a result of one or more members of the family
becoming ineligible to participate may continue to participate
in the program until all members of the family become ineligible
to participate, which--
``(A) in the case of a family in which ineligibility
was due to the child or children of the family attaining
the age of 8, shall be in 2 years or when the parent or
parents become ineligible due to educational
advancement, whichever occurs first; and
``(B) in the case of a family in which ineligibility
was due to the educational advancement of the parent or
parents of the family, shall be when all children in the
family attain the age of 8.
``(3) Children 8 years of age or older.--If an Even Start
program assisted under this subpart collaborates with a program
under part A, and funds received under the part A program
contribute to paying the cost of providing programs under this
subpart to children 8 years of age or older, the Even Start
program may, notwithstanding subsection (a)(2), permit the
participation of children 8 years of age or older if the focus
of the program continues to remain on families with young
children.
``SEC. <<NOTE: 20 USC 6381f.>> 1237. APPLICATIONS.
``(a) Submission.--To be eligible to receive a subgrant under this
subpart, an eligible entity shall submit an application to the State
educational agency in such form and containing or accompanied by such
information as the State educational agency shall require.
``(b) Required Documentation.--Each application shall include
documentation, satisfactory to the State educational agency, that the
eligible entity has the qualified personnel needed--
``(1) to develop, administer, and implement an Even Start
program under this subpart; and
``(2) to provide access to the special training necessary to
prepare staff for the program, which may be offered by an
eligible organization.
``(c) Plan.--
``(1) In general.--The application shall also include a plan
of operation and continuous improvement for the program, that
includes--
``(A) a description of the program objectives,
strategies to meet those objectives, and how those
strategies and objectives are consistent with the
program indicators established by the State;
``(B) a description of the activities and services
that will be provided under the program, including a
description of how the program will incorporate the
program elements required by section 1235;
``(C) a description of the population to be served
and an estimate of the number of participants to be
served;
``(D) as appropriate, a description of the
applicant's collaborative efforts with institutions of
higher education, community-based organizations, the
State educational agency, private elementary schools, or
other eligible
[[Page 115 STAT. 1564]]
organizations in carrying out the program for which
assistance is sought;
``(E) a statement of the methods that will be used--
``(i) to ensure that the programs will serve
families most in need of the activities and
services provided by this subpart;
``(ii) to provide services under this subpart
to individuals with special needs, such as
individuals with limited English proficiency and
individuals with disabilities; and
``(iii) to encourage participants to remain in
the program for a time sufficient to meet the
program's purpose;
``(F) a description of how the plan is integrated
with other programs under this Act or other Acts, as
appropriate; and
``(G) a description of how the plan provides for
rigorous and objective evaluation of progress toward the
program objectives described in subparagraph (A) and for
continuing use of evaluation data for program
improvement.
``(2) Duration of the plan.--Each plan submitted under
paragraph (1) shall--
``(A) remain in effect for the duration of the
eligible entity's participation under this subpart; and
``(B) be periodically reviewed and revised by the
eligible entity as necessary.
``(d) Consolidated Application.--The plan described in subsection
(c)(1) may be submitted as part of a consolidated application under
section 9305.
``SEC. <<NOTE: 20 USC 6381g.>> 1238. AWARD OF SUBGRANTS.
``(a) Selection Process.--
``(1) In general.--The State educational agency shall
establish a review panel in accordance with paragraph (3) that
will approve applications that--
``(A) are most likely to be successful in--
``(i) meeting the purpose of this subpart; and
``(ii) effectively implementing the program
elements required under section 1235;
``(B) demonstrate that the area to be served by the
program has a high percentage or a large number of
children and families who are in need of those services
as indicated by high levels of poverty, illiteracy,
unemployment, limited English proficiency, or other
need-related indicators, such as a high percentage of
children to be served by the program who reside in a
school attendance area served by a local educational
agency eligible for participation in programs under part
A, a high number or percentage of parents who have been
victims of domestic violence, or a high numb