HR 4564 IH

To amend the Elementary and Secondary Education Act of 1965, to reauthorize and make improvements to that Act, and for other purposes.

May 25, 2000

Mr. HOEFFEL (for himself and Mr. MALONEY of Connecticut) introduced the following bill; which was referred to the Committee on Education and the Workforce

To amend the Elementary and Secondary Education Act of 1965, to reauthorize and make improvements to that Act, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `Education Reinvestment Act'.

(b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2 References.

Sec. 3. Declaration of priorities.

TITLE I--STUDENT PERFORMANCE

Sec. 101. Heading.

Sec. 103. Authorization of appropriations.

Sec. 104. Reservation for school improvement.

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

Sec. 105. State plans.

Sec. 106. Local educational agency plans.

Sec. 107. Schoolwide programs.

Sec. 108. School choice.

Sec. 109. Assessment and local educational agency and school improvement.

Sec. 110. State assistance for school support and improvement.

Sec. 111. Parental involvement changes.

Sec. 112. Qualifications for teachers and paraprofessionals.

Sec. 113. Professional development.

Sec. 114. Fiscal requirements.

Sec. 115. Coordination requirements.

Sec. 116. Grants for the outlying areas and the Secretary of the Interior.

Sec. 117. Amounts for grants.

Sec. 118. Basic grants to local educational agencies.

Sec. 119. Concentration grants.

Sec. 120. Targeted grants.

Sec. 121. Special allocation procedures.

Part B--Even Start Family Literacy Programs

Sec. 131. Program authorized.

Sec. 132. Applications.

Sec. 133. Research.

Part C--Education of Migratory Children

Sec. 141. Comprehensive needs assessment and service-delivery plan; authorized activities.

Part D--Prevention and Intervention Programs for Children and Youth Who Are Neglected, Delinquent, or at Risk of Dropping Out

Sec. 151. State plan and State agency applications.

Sec. 152. Use of funds.

Part E--Federal Evaluations, Demonstrations, and Transition Projects

Sec. 161. Evaluations.

Sec. 162. Demonstrations of innovative practices.

Part F--Rural Education Development Initiative

Sec. 171. Rural education development initiative.

Part G--General Provisions

Sec. 181. Federal regulations.

Sec. 182. State administration.

TITLE II--TEACHER AND PRINCIPAL QUALITY, PROFESSIONAL DEVELOPMENT, AND CLASS SIZE

Sec. 201. Teacher and principal quality, professional development, and class size.

TITLE III--LANGUAGE MINORITY STUDENTS AND INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

Sec. 301. Language minority students.

Sec. 302. Emergency immigrant education program.

Sec. 303. Indian, Native Hawaiian, and Alaska Native education.

TITLE IV--PUBLIC SCHOOL CHOICE

Sec. 401. Public school choice.

Sec. 402. Development of public school choice programs; report cards.

TITLE V--IMPACT AID

Sec. 501. Impact aid.

TITLE VI--HIGH PERFORMANCE AND QUALITY EDUCATION INITIATIVES

Sec. 601. High performance and quality education initiatives.

TITLE VII--ACCOUNTABILITY

Sec. 701. Accountability.

TITLE VIII--GENERAL PROVISIONS AND REPEALS

Sec. 801. Repeals, transfers, and redesignations regarding titles VIII and XIV.

Sec. 802. Other repeals.

TITLE IX--TECHNOLOGY FOR EDUCATION

Sec. 901. Technology for education.

TITLE X--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

Sec. 1001. Safe and drug-free schools and communities.

TITLE XI--PROGRAMS OF NATIONAL SIGNIFICANCE

Sec. 1101. Programs of national significance.

SEC. 2. 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. 3. DECLARATION OF PRIORITIES.

Congress declares that our national educational priorities are to--

(1) introduce real accountability by making public elementary school and secondary school education funding performance-based rather than a guaranteed source of revenue for States and local educational agencies;

(2) require State educational agencies and local educational agencies to establish high student performance objectives, and to provide the State educational agencies and local educational agencies with flexibility in using Federal resources to ensure that the performance objectives are met;

(3) provide Federal support to vital national priorities, including compensatory education for disadvantaged children and youth, teacher quality and professional development, programs for limited

English proficient students, student safety, and the incorporation of educational technology;

(4) concentrate Federal education funding on impoverished areas where elementary schools and secondary schools are most likely to be in distress;

(5) sanction State educational agencies and local educational agencies that consistently fail to meet established benchmarks; and

(6) reward State educational agencies, local educational agencies, and elementary schools and secondary schools that demonstrate high performance.

TITLE I--STUDENT PERFORMANCE

SEC. 101. HEADING.

The heading for title I (20 U.S.C. 6301 et seq.) is amended to read as follows:

`TITLE I--STUDENT PERFORMANCE

`SEC. 102. FINDINGS, POLICY, AND PURPOSE.

Section 1001 (20 U.S.C. 6301) is amended to read as follows:

`SEC. 1001. FINDINGS, POLICY AND PURPOSE.

`(a) FINDINGS- Congress makes the following findings:

`(1) Despite more than 3 decades of Federal assistance, a sizable achievement gap remains between low-income and middle-class students.

`(2) The 1994 reauthorization of the Elementary and Secondary Education Act of 1965 was an important step in focusing our Nation's priorities on closing the achievement gap between poor and affluent students in the United States. The Federal Government must continue to build on these improvements made in 1994 by holding States and local educational agencies accountable for student achievement.

`(3) States can help close this achievement gap by developing challenging curriculum content and student performance standards so that all elementary school and secondary school students perform at an advanced level. States should implement vigorous and comprehensive student performance assessments, such as the National Assessment of Educational Progress (NAEP) so as to measure fully the progress of our Nation's students.

`(4) In order to ensure that no child is left behind in the new economy, the Federal Government must better target Federal resources on those children who are most at-risk for falling behind academically.

`(5)(A) Title I funds have been targeted on high-poverty areas, but not to the degree they should be as demonstrated by the following:

`(B) Although 95 percent of schools with poverty levels of 75 percent to 100 percent receive title I funding, 20 percent of schools with poverty levels of 50 to 74 percent do not receive any title I funding.

`(C) Only 64 percent of schools with poverty levels in the 35 percent to 49 percent range receive title I funding.

`(6) Title I funding should be significantly increased and more effectively targeted to ensure that all low-income students have an opportunity to excel academically.

`(7) The Federal Government should provide greater decisionmaking authority and flexibility to schools and teachers in exchange for greater responsibility for student performance. Federal, State, and local efforts should be focused on raising the academic achievement of all students. Our Nation's children deserve nothing less than holding accountable those responsible for shaping our childrens' future and our country's future.

`(b) POLICY- Congress declares that it is the policy of the United States to ensure that all students receive a high-quality education by holding States, local educational agencies, and elementary schools and secondary schools accountable for increased student academic performance results, and by facilitating improved classroom instruction.

`(c) PURPOSES- The purposes of this title are as follows:

`(1) To eliminate the existing 2-tiered educational system, which set lower academic expectations for impoverished students than for affluent students.

`(2) To require all States to have challenging content and student performance standards and assessment measures in place.

`(3) To require all States to ensure adequate yearly progress for all students by establishing annual, numerical performance objectives.

`(4) To ensure that all title I students receive educational instruction from a fully qualified teacher.

`(5) To support State and local educational agencies in identifying, assisting, and correcting low-performing schools.

`(6) To increase Federal funding for part A programs for disadvantaged students in return for increased academic performance of all students.

`(7) To target Federal funding to local educational agencies serving the highest percentages of low-income students.'.

SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

Section 1002 (20 U.S.C. 6302) is amended to read as follows:

`SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

`(a) LOCAL EDUCATIONAL AGENCY GRANTS- For the purpose of carrying out part A, other than section 1120(e), there are authorized to be appropriated $12,000,000,000 for fiscal year 2001 and such sums as may be necessary for each of the 4 succeeding fiscal years.

`(b) EVEN START- For the purpose of carrying out part B, there are authorized to be appropriated such sums as may be necessary for fiscal year 2001 and each of the 4 succeeding fiscal years.

`(c) EDUCATION OF MIGRATORY CHILDREN- For the purpose of carrying out part C, there are authorized

to be appropriated such sums as may be necessary for fiscal year 2001 and each of the 4 succeeding fiscal years.

`(d) PREVENTION AND INTERVENTION PROGRAMS FOR YOUTH WHO ARE NEGLECTED, DELINQUENT, OR AT RISK OF DROPPING OUT- For the purpose of carrying out part D, there are authorized to be appropriated such sums as may be necessary for fiscal year 2001 and each of the 4 succeeding fiscal years.

`(e) CAPITAL EXPENSES- For the purpose of carrying out section 1120(e), there are authorized to be appropriated $12,000,000 for fiscal year 2001 and $5,000,000 for fiscal year 2002.

`(f) FEDERAL ACTIVITIES- 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 2001 and each of the 4 succeeding fiscal years.'.

SEC. 104. RESERVATION FOR SCHOOL IMPROVEMENT.

Section 1003 (20 U.S.C. 6303) is amended to read as follows:

`SEC. 1003. RESERVATION FOR SCHOOL IMPROVEMENT.

`(a) STATE RESERVATIONS-

`(1) IN GENERAL- Each State educational agency shall reserve 2.5 percent of the amount the State educational agency receives under part A for fiscal years 2001 and 2002, and 3.5 percent of that amount for fiscal years 2003 through 2005, to carry out paragraph (2) and to carry out the State educational agency's responsibilities under sections 1116 and 1117, including the State educational agency's statewide system of technical assistance and support for local educational agencies.

`(2) USES- Of the amount reserved under paragraph (1) for any fiscal year, the State educational agency shall make available at least 80 percent of such amount directly to local educational agencies.

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

SEC. 105. STATE PLANS.

Section 1111 (20 U.S.C. 6311) is amended to read as follows:

`SEC. 1111. STATE PLANS.

`(a) PLANS REQUIRED-

`(1) IN GENERAL- Any State educational agency desiring a grant under this part shall submit to the Secretary a plan, developed in consultation with local educational agencies, teachers, pupil services personnel, administrators (including administrators of programs described in other parts of this title), local school boards, 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, and the Head Start Act.

`(2) CONSOLIDATED PLAN- A State plan submitted under paragraph (1) may be submitted as part of a consolidated plan under section 8302.

`(b) STANDARDS, ASSESSMENTS, AND ACCOUNTABILITY-

`(1) CHALLENGING STANDARDS-

`(A) IN GENERAL- Each State plan shall demonstrate that the State has adopted challenging content standards and challenging student performance standards that will be used by the State, and the local educational agencies, and elementary schools and secondary schools, within the State to carry out this part.

`(B) UNIFORMITY- The standards required by subparagraph (A) shall be the same standards that the State applies to all elementary schools and secondary schools within the State and all children attending such schools.

`(C) SUBJECTS- The State shall have such standards for elementary school and secondary school children served under this part in subjects determined by the State, but including at least mathematics, science, and English language arts, and which shall include the same knowledge, skills, and levels of performance expected of all children.

`(D) STANDARDS- Standards under this paragraph shall include--

`(i) challenging 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 performance standards that--

`(I) are aligned with the State's content standards;

`(II) describe 2 levels of high performance, proficient and advanced levels of performance, that determine how well children are mastering the material in the State content standards; and

`(III) describe a third level of performance, a basic level of performance, to provide complete information about the progress of the lower performing children toward achieving to the proficient and advanced levels of performance.

`(E) ADDITIONAL SUBJECTS- For the subjects in which students will be served under this part, but for which a State is not required under subparagraphs (A), (B), and (C) to develop, and has not otherwise developed, challenging content and student performance standards, the State plan shall describe a strategy for ensuring that such students are taught the same knowledge and skills and held to the same expectations as are all children.

`(F) SPECIAL RULE- In the case of a State that allows local educational agencies to adopt more rigorous standards than those set by the State, local educational agencies shall be allowed to implement such standards.

`(2) ADEQUATE YEARLY PROGRESS-

`(A) IN GENERAL- Each State plan shall demonstrate, based on assessments described under paragraph (4), what constitutes adequate yearly progress of--

`(i) any school served under this part toward enabling all children to meet the State's challenging student performance standards;

`(ii) any local educational agency that receives funds under this part toward enabling all children in schools served by the local educational agency and receiving assistance under this part to meet the State's challenging student performance standards; and

`(iii) the State in enabling all children in schools receiving assistance under this part to meet the State's challenging student performance standards.

`(B) DEFINITION- Adequate yearly progress shall be defined by the State in a manner that--

`(i) applies the same high standards of academic performance to all students in the State;

`(ii) takes into account the progress of all students in the State and in each local educational agency and school served under section 1114 or 1115;

`(iii) uses the State challenging content and challenging student performance standards and assessments described in paragraphs (1) and (4);

`(iv) compares separately, within each State, local educational agency, and school, the performance and progress of students, by each major ethnic and racial group, by gender, by English proficiency status, and by economically disadvantaged students as compared to students who are not economically disadvantaged (except that such disaggregation shall not be required in a case in which the number of students in a category is insufficient to yield statistically reliable information or the results would reveal individually identifiable information about an individual student);

`(v) compares the proportions of students at the basic, proficient, and advanced levels of performance with the proportions of students at each of the 4 performance levels in the same grade in the previous school year;

`(vi) endeavors to include other academic measures such as promotion, attendance, drop-out rates, completion of college preparatory courses, college admission tests taken, and secondary school completion, except that failure to meet another academic measure, other than student performance on State assessments aligned with State standards, shall not provide the sole basis for designating a district or school as in need of improvement;

`(vii) includes annual numerical objectives for improving the performance of all groups described in clause (iv) and narrowing gaps in performance between these groups in, at least, the areas of mathematics and English language arts; and

`(viii) includes a timeline for ensuring that each group of students described in clause (iv) meets or exceeds the State's proficient level of performance on each State assessment used for the purposes of this section and section 1116 not later than 10 years after the date of enactment of the Education Reinvestment Act.

`(C) ACCOUNTABILITY- Each State plan shall demonstrate that the State has developed and is implementing a statewide accountability system that has been or will be effective in ensuring that all local educational agencies, elementary schools, and secondary schools are making adequate yearly progress as defined in section 1111(b)(2)(B). Each State accountability system shall--

`(i) be based on the standards and assessments adopted under paragraphs (1) and (4) and take into account the performance of all students required by law to be included in such assessments;

`(ii) be the same accountability system the State uses for all schools or all local educational agencies, if the State has an accountability system for all schools or all local educational agencies;

`(iii) provide for the identification of schools or local educational agencies receiving funds under this part that for 2 consecutive years have exceeded such schools' or agencies' adequate yearly progress goals so that information about the practices and strategies of such schools or agencies can be disseminated to other schools in the local educational agency and in the State and such schools can be considered for rewards provided under title VII of this Act;

`(iv) provide for the identification of schools and local educational agencies in need of improvement, as required by section 1116, and for the provision of technical assistance, professional development, and other capacity-building as needed, including those measures specified in sections 1116(d)(9) and 1117, to ensure that schools and local educational agencies so identified have the resources, skills, and knowledge needed to carry out their obligations under sections 1114 and 1115 and to meet the requirements for annual improvement described in paragraph (2); and

`(v) provide for the identification of schools and local educational agencies for corrective action or actions as required by

section 1116, and for the implementation of corrective actions against school and school districts when such actions are required under such section.

`(D) ANNUAL IMPROVEMENT FOR STATES- For a State to make adequate yearly progress under subparagraph (A)(iii), not less than 80 percent of the local educational agencies within the State shall meet the State's criteria for adequate yearly progress.

`(E) ANNUAL IMPROVEMENT FOR LOCAL EDUCATIONAL AGENCIES- For a local educational agency to make adequate yearly progress under subparagraph (A)(ii), not less than 80 percent of the schools served by the local educational agency shall meet the State's criteria for adequate yearly progress, except that this subparagraph shall not apply to a local educational agency that serves 5 or fewer schools.

`(F) ANNUAL IMPROVEMENT FOR SCHOOLS- For an elementary school or a secondary school to make adequate yearly progress under subparagraph (A)(i), not less than 80 percent of each group of students described in subparagraph (B)(iv) who are enrolled in such school shall take the assessments described in paragraph (4)(D) and in section 612(a)(17)(A) of the Individuals with Disabilities Education Act.

`(G) PUBLIC NOTICE AND COMMENT-

`(i) IN GENERAL- Each State shall submit information in the State plan demonstrating that in developing such plan--

`(I) the State diligently sought public comment from a range of institutions and individuals in the State with an interest in improved student achievement; and

`(II) the State made and will continue to make a substantial effort to ensure that information regarding content standards, performance standards, assessments, and the State accountability system is widely known and understood by the public, parents, teachers, and school administrators throughout the State.

`(ii) EFFORTS- The efforts described in clause (i), at a minimum, shall include annual publication of such information and explanatory text to the public through such means as the Internet, the media, and public agencies. Non-English language shall be used to communicate with parents where appropriate.

`(H) REVIEW- The Secretary shall review information from each State on the adequate yearly progress of schools and local educational agencies within the State required under subparagraphs (A) and (B) for the purpose of determining State and local compliance with section 1116.

`(3) STATE AUTHORITY- If a State educational agency provides evidence that 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 performance standards, and assessments aligned with such standards, that will be applicable to all students enrolled in the State's public schools, then the State educational agency may meet the requirements of this subsection by--

`(A) adopting curriculum content and student performance standards and assessments that meet the requirements of this subsection, on a statewide basis, and limiting the applicability of such standards and assessments to students served under this part; or

`(B) adopting and implementing policies that ensure that each local educational agency within a State receiving a grant under this part will adopt curriculum content and student performance standards and assessments--

`(i) that are aligned with the standards described in subparagraph (A); and

`(ii) that meet the criteria in this subsection and any regulations regarding such standards and assessments that the Secretary may publish and that are applicable to all students served by each such local educational agency.

`(4) ASSESSMENTS- Each State plan shall demonstrate that the State has implemented a set of high quality, yearly student assessments that include, at a minimum, assessments in mathematics, science, and English language arts, that will be used, starting not later than the 2000-2001 school year as the primary means of determining the yearly performance of each local educational agency and school served by the State under this title in enabling all children to meet the State's challenging content and student performance standards. Such assessments shall--

`(A) be the same assessments used to measure the performance of all children, if the State measures the performance of all children;

`(B) be aligned with the State's challenging content and student performance standards, and provide coherent information about student attainment of such standards;

`(C) be used only for purposes for which such assessments are valid and reliable, and be consistent with relevant, nationally recognized professional and technical standards for such assessments;

`(D) measure the performance of students against the challenging State content and student performance standards, and be administered not less than once during--

`(i) grades 3 through 5;

`(ii) grades 6 through 9; and

`(iii) grades 10 through 12;

`(E) include multiple, up-to-date measures of student performance, including measures that assess higher order thinking skills and understanding;

`(F) provide for--

`(i) the participation in such assessments of all students;

`(ii) the reasonable adaptations and accommodations for students with disabilities as defined in 602(3) of the Individuals with Disabilities Education Act necessary to measure the achievement of such students relative to State content and student performance standards;

`(iii) in the case of a student with limited English proficiency, the assessment of such student in the student's native language if such a native language assessment is more likely than an English language assessment to yield accurate and reliable information on what that student knows and is able to do; and

`(iv) notwithstanding clause (iii), the assessment (using tests written in English) of English language arts of any student who has attended school in the United States (not including the Commonwealth of Puerto Rico) for 3 or more consecutive school years, except if the local educational agency determines, on a case-by-case individual basis, that assessments in another language and form would likely yield more accurate and reliable information on what such students know and can do, the local educational agency may assess such students in the appropriate language other than English for 1 additional consecutive year beyond the third consecutive year; and

`(G) 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;

`(H) provide individual student reports to be submitted to parents, including assessment scores or other information on the attainment of student performance standards; and

`(I) enable results to be disaggregated within each State, local educational agency, and school by gender, by each major racial and ethnic group, by English proficiency status, and by economically disadvantaged students as compared to students who are not economically disadvantaged.

`(5) RIGOROUS CRITERIA- States are encouraged to use rigorous criteria assessment measures.

`(6) FIRST GRADE LITERACY ASSESSMENT- In addition to those assessments described in paragraph (4), each State receiving funds under this part shall describe in its State plan what reasonable steps it is taking to assist and encourage local educational agencies--

`(A) to measure literacy skills of first graders in schools receiving funds under this part by providing assessments of first graders that are--

`(i) developmentally appropriate;

`(ii) aligned with State content and student performance standards; and

`(iii) scientifically research-based; and

`(B) to assist and encourage local educational agencies receiving funds under this part in identifying and taking developmentally appropriate and effective interventions in any school served under this part in which a substantial number of first graders have not demonstrated grade-level literacy proficiency by the end of the school year.

`(7) LANGUAGE ASSESSMENTS- Each State plan shall identify the languages other than English and Spanish that are present in the participating student populations in the State, and indicate the languages for which yearly student assessments are not available and are needed. The State may request assistance from the Secretary if linguistically accessible assessment measures are needed. Upon request, the Secretary shall assist with the identification of appropriate assessment measures in the needed languages, but shall not mandate a specific assessment or mode of instruction.

`(8) ASSESSMENT DEVELOPMENT- A State shall develop and implement the State assessments, including, at a minimum, mathematics and English language arts, by the 2000-2001 school year.

`(9) 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 1114(b), 1115(c), and 1116 that are applicable to such agency or school;

`(B) how the State educational agency will--

`(i) hold each local educational agency affected by the State plan accountable for improved student performance, including a procedure for--

`(I) identifying local educational agencies and schools in need of improvement; and

`(II) assisting local educational agencies and schools identified under subclause (I) to address achievement problems, including thorough descriptions of the amounts and types of professional development to be provided instructional staff, the amount of any financial assistance to be provided by

the State under section 1003, and the amount of any funds to be provided by other sources and the activities to be provided by those sources; and

`(ii) implementing corrective action if assistance is not effective;

`(C) how the State educational agency is providing low-performing students additional academic instruction, such as before- and after-school programs and summer academic programs;

`(D) such other factors the State considers appropriate to provide students an opportunity to achieve the knowledge and skills described in the State's challenging content standards;

`(E) the specific steps the State educational agency will take or the specific strategies the State educational agency will use to ensure that--

`(i) all teachers in both schoolwide programs and targeted assistance programs are fully qualified not later than December 31, 2005; and

`(ii) low-income students and minority students are not taught at higher rates than other students by unexperienced, uncertified, or out-of-field teachers; and

`(F) the measures the State educational agency will use to evaluate and publicly report the State's progress in improving the quality of instruction in the schools served by the State educational agency and local educational agencies receiving funding under this Act.

`(c) OTHER PROVISIONS TO SUPPORT TEACHING AND LEARNING- Each State plan shall contain assurances that--

`(1) 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 elementary schools and secondary schools to carry out the State educational agency's responsibilities under this part, including technical assistance in providing professional development under section 1119(A) and technical assistance under section 1117; and

`(2)(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;

`(3) the State educational agency will use the disaggregated results of the student assessments required under subsection (b)(4), and other measures or indicators available to the State, to review annually the progress of each local educational agency and school served under this part to determine whether each such agency and school is making the annual progress necessary to ensure that all students will meet the proficient level of performance on the assessments described in subsection (b)(4) within 10 years of the date of enactment of the Education Reinvestment Act;

`(4) the State educational agency will provide the least restrictive and burdensome regulations for local educational agencies and individual elementary schools and secondary schools participating in a program assisted under this part;

`(5) the State educational agency will regularly inform the Secretary and the public in the State of how Federal laws, if any, hinder the ability of States to hold local educational agencies and schools accountable for student academic performance;

`(6) the State educational agency will encourage elementary schools and secondary schools to consolidate funds from other Federal, State, and local sources for schoolwide reform in schoolwide programs under section 1114;

`(7) the State educational agency will modify or eliminate State fiscal and accounting barriers so that elementary schools and secondary schools can easily consolidate funds from other Federal, State, and local sources for schoolwide programs under section 1114;

`(8) the State educational agency has involved the committee of practitioners established under section 1703(b) (as redesignated by section 161(2)) in developing and monitoring the implementation of the State plan; and

`(9) the State educational agency will inform local educational agencies of the local educational agency's authority to obtain waivers under title VIII and, if the State is an Ed-Flex Partnership State, waivers under the Education Flexibility Partnership Act of 1999.

`(d) PEER REVIEW AND SECRETARIAL APPROVAL- The Secretary shall--

`(1) establish a peer review process to assist in the review of State plans;

`(2) only approve a State plan meeting each of the requirements of this section;

`(3) if the Secretary determines that the State plan does not meet each of the requirements of subsection (a), (b), or (c), immediately notify the State of such determination and the reasons for such determination;

`(4) not disapprove a State plan before--

`(A) notifying the State educational agency in writing of the specific deficiencies of the State plan;

`(B) offering the State an opportunity to revise the State plan;

`(C) providing technical assistance in order to assist the State to meet the requirements under subsections (a), (b), and (c); and

`(D) providing a hearing;

`(5) have the authority to disapprove a State plan for not meeting the requirements of this section, 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 1 or more specific elements of the challenging State content standards or to use specific assessment instruments or items; and

`(6) require a State to submit a revised State plan that meets the requirements of this section to the Secretary for approval not later than 1 year after the date of enactment of the Education Reinvestment Act.

`(e) DURATION OF THE PLAN-

`(1) IN GENERAL- Each State plan shall--

`(A) remain in effect for the duration of the State's participation under this part; and

`(B) be periodically reviewed and revised by the State, as necessary, to reflect changes in the State's strategies and programs under this part.

`(2) ADDITIONAL INFORMATION- If the State makes significant changes in its State plan, such as the adoption of new challenging State content standards and State student performance standards, new assessments, or a new definition of adequate yearly progress, the State shall submit such information to the Secretary.

`(f) LIMITATION ON CONDITIONS- Nothing in this part shall be construed to authorize an officer or employee of the Federal Government to mandate, direct, or control a State's, local educational agency's, or elementary school's or secondary school's specific challenging content or student performance standards, assessments, curricula, or program of instruction, as a condition of eligibility to receive funds under this part.

`(g) PENALTIES-

`(1) IN GENERAL- If a State fails to meet the statutory deadlines for demonstrating that the State has in place challenging content standards and student performance standards, assessments, a system for measuring and monitoring adequate yearly progress, and a statewide system for holding schools and local educational agencies accountable for making adequate yearly progress with each group of students specified in subsection (b)(2)(B)(iv), the State shall be ineligible to receive any administrative funds under section 1703(c) that exceed the amount received by the State for such purposes in the previous year.

`(2) ADDITIONAL FUNDS- Based on the extent to which challenging content standards and student performance standards, assessments, systems for measuring and monitoring adequate yearly progress, and a statewide system for holding schools and local educational agencies accountable for making adequate yearly progress with each group of students specified in subsection (b)(2)(B)(iv), are not in place, the Secretary shall withhold additional administrative funds in such amount as the Secretary determines appropriate, except that for each additional year that the State fails to comply with such requirements, the Secretary shall withhold not less than 1/5 of the amount the State receives for administrative expenses under section 1703(c).

`(3) WAIVER-

`(A) IN GENERAL- Except as provided in subparagraph (B), notwithstanding part D of title VIII, the Education Flexibility Partnership Act of 1999, or any other provision of law, a waiver of this section shall not be granted, except that a State may request a 1-time, 1-year waiver to meet the requirements of this section.

`(B) EXCEPTION- A waiver granted pursuant to subparagraph (A) shall not apply to the requirements described under subsection (h).

`(h) SPECIAL RULE ON SCIENCE STANDARDS AND ASSESSMENTS- Notwithstanding subsection (b) and part D of title IV, no State shall be required to meet the requirements under this title relating to science standards or assessments until the beginning of the 2005-2006 school year.'.

SEC. 106. LOCAL EDUCATIONAL AGENCY PLANS.

(a) SUBGRANTS- Section 1112(a)(1) (20 U.S.C. 6312(a)(1)) is amended by striking `' and all that follows and inserting `the Individuals with Disabilities Education Act, the Carl D. Perkins Vocational and Technical Education Act of 1998, the Head Start Act, and other Acts, as appropriate.'.

(b) PLAN PROVISIONS- Section 1112(b) (20 U.S.C. 6312(b)) is amended--

(1) by striking `Each' and inserting `In order to help low-achieving children achieve high standards, each';

(2) in paragraph (1)--

(A) by striking `part' each place it appears and inserting `title'; and

(B) in subparagraph (B), by inserting `low-achieving' before `children';

(3) in paragraph (4)--

(A) in subparagraph (A)--

(i) by striking `program,' and inserting `programs and'; and

(ii) by striking `, and school-to-work transition programs'; and

(B) in subparagraph (B), by striking `under part C' and all that follows through `dropping out' and inserting `under part C, neglected or delinquent youth,';

(4) in paragraph (7), by striking `eligible';

(5) in paragraph (9), by striking the period and inserting a semicolon; and

(6) by adding at the end the following new paragraphs:

`(10) a description of the actions the local educational agency will take to assist the low-performing schools served by the local educational agency, including schools identified under section 1116 as in need of improvement; and

`(11) a description of how the local educational agency will promote the use of alternative instructional methods, and extended learning time, such as an extended school year, before- and after-school programs, and summer programs.'.

(c) ASSURANCES- Section 1112(c) (20 U.S.C. 6312(c)) is amended to read as follows:

`(c) ASSURANCES-

`(1) IN GENERAL- Each local educational agency plan shall provide assurances that the local educational agency will--

`(A) specify the steps the local educational agency will take to ensure that all teachers in both schoolwide programs and targeted assistance are fully qualified not later than December 31, 2005 and the strategies the local educational agency will use to ensure that low-income students and minority students are not taught at higher rates than other children by inexperienced, uncertified, or out-of-field teachers, and the measures the agency will use to evaluate and publicly report progress in improving the quality of instruction in schools served by the local educational agency and receiving funding under this Act;

`(B) reserve not less than 10 percent of the funds the agency receives under this part for high quality professional development, as defined in section 1119, for professional instruction staff;

`(C) provide eligible schools and parents with information regarding schoolwide project authority and the ability of such schools to consolidate funds from Federal, State, and local sources;

`(D) provide technical assistance and support to schoolwide programs;

`(E) work in consultation with schools as the schools develop a school plan pursuant to section 1114(b)(2), and assist schools in implementing such plans or undertaking activities pursuant to section 1115(c), so that each school can make adequate yearly progress toward meeting the challenging State student performance standards;

`(F) use the disaggregated results of the student assessments required under section 1111(b)(4), 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 title to determine whether or not all schools are making the annual progress necessary to ensure that all students will meet the proficient level of performance on the assessments described in section 1111(b)(4) within 10 years of the date of enactment of the Education Reinvestment Act;

`(G) set and hold schools served by the local educational agency accountable for meeting annual numerical goals for improving the performance of all groups of students based on the performance standards set by the State under section 1111(b)(1)(D)(ii);

`(H) fulfill the local educational agency's school improvement responsibilities under section 1116, including taking corrective actions under section 1116(c)(9);

`(I) provide the State educational agency with--

`(i) an annual, up-to-date, and accurate list of all schools served by the local educational agency that are eligible for school improvement and corrective action;

`(ii) the reasons why each school described in clause (i) was identified for school improvement or corrective action; and

`(iii) the specific plans for improving student performance in each of the schools described in clause (i), including the specific numerical achievement goals for the succeeding 2 school years, for each group of students specified in section 1111(b)(2)(B)(iv) enrolled in each such school;

`(J) provide services to eligible children attending private elementary schools and secondary schools in accordance with section 1120, and provide timely and meaningful consultation with private school officials regarding such services;

`(K) take into account the experience of model programs for the educationally disadvantaged and the findings of relevant scientifically based research when developing technical assistance plans for, and delivering technical assistance to, schools served by the local educational agency that are receiving funds under this part and are in school improvement or corrective action;

`(L) 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;

`(M) comply with the requirements of section 1119 regarding the qualifications of teachers and paraprofessionals;

`(N) inform eligible schools served by the local educational agency of the agency's authority to obtain waivers on such school's behalf under title VIII, and if the State is an Ed-Flex Partnership State, under the Education Flexibility Partnership Act of 1999; and

`(O) coordinate and collaborate, to the extent feasible and necessary as determined by the local educational agency, with other agencies providing services to children, youth, and their families.

`(2) MODEL PROGRAMS; SCIENTIFICALLY BASED RESEARCH- In carrying out paragraph (1)(K)--

`(A) the Secretary shall consult with the Secretary of Health and Human Services on the implementation of such subparagraph, 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;

`(B) the Secretary shall disseminate to local educational agencies the Head Start performance standards under section 641A(a) of the Head Start Act upon such standard's publication; and

`(C) local educational 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- The provisions of this subsection shall not apply to preschool programs using the Even Start model or to Even Start programs.'.

(d) PLAN DEVELOPMENT AND DURATION- Section 1112(d) (20 U.S.C. 6312(d)) is amended to read as follows:

`(d) PLAN DEVELOPMENT AND DURATION-

`(1) CONSULTATION- Each local educational agency plan shall be developed in consultation with teachers, principals, local school boards, administrators (including administrators of programs described in other parts of this title), other appropriate school personnel, and parents of children in elementary schools and secondary schools served under this part.

`(2) DURATION- Each plan described in paragraph (1) shall remain in effect for the duration of the local educational agency's participation under this part.

`(3) REVIEW- Each local educational agency shall periodically review, and as necessary, revise its plan.'.

(e) STATE APPROVAL- Section 1112(e) (20 U.S.C. 6312(e)) is amended to read as follows:

`(e) PEER REVIEW AND 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 establish a peer review process to assist in the review of local educational agency plans. The State educational agency shall approve a local educational agency plan only if the State educational agency determines that the local educational agency plan--

`(A) will enable elementary schools and secondary schools served by the local educational agency and under this part to help all groups of students specified in section 1111(b)(1) meet or exceed the proficient level of performance on the assessments required under section 1111(b)(4) within 10 years of the date of enactment of the Education Reinvestment Act; and

`(B) meets each of the requirements of this section.

`(3) STATE REVIEW- Each State educational agency shall at least annually review each local agency plan approved under this subsection against the results of the disaggregated assessments required under section 1111(b)(4) for each local educational agency to ensure that the progress of all students in schools served by each local educational agency under this part is adequate to ensure that all students in the State will meet or exceed the proficient standard level of performance on assessments within 10 years of the date of enactment of the Education Reinvestment Act.

`(4) PUBLIC REVIEW- Each State educational agency will make publicly available each local educational agency plan.'.

SEC. 107. SCHOOLWIDE PROGRAMS.

(a) USE OF FUNDS FOR SCHOOLWIDE PROGRAMS- Section 1114(a) (20 U.S.C. 6314(a)) is amended--

(1) in paragraph (1), by striking `school described in subparagraph (A)' and all that follows through `such families.' the second place it appears and inserting `school that serves an eligible school attendance area in which--

`(A) not less than 40 percent of the children are from low-income families; or

`(B) not less than 40 percent of the children enrolled in the school are from such families.'; and

(2) in paragraph (2)--

(A) in subparagraph (A), by striking `subsections (c)(1) and (e) of'; and

(B) in subparagraph (B), by striking `subsections (c)(1) and (e) of'.

(b) COMPONENTS OF A SCHOOLWIDE PROGRAM- Section 1114(b) (20 U.S.C. 6314(b)) is amended--

(1) in paragraph (1)--

(A) in subparagraph (A), by striking `section 1111(b)(1)' and inserting `section 1111(b)';

(B) in subparagraph (B)--

(i) in clause (i), by striking `section 1111(b)(1)(D)' and inserting `1111(b)';

(ii) in clause (iii)(II), by inserting `and' after the semicolon;

(iii) in clause (iv)(II), by striking `; and' and inserting a period; and

(iv) by striking clause (vii); and

(C) in subparagraph (G), by striking `section 1112(b)(1)' and inserting `section 1112'; and

(2) in paragraph (2)--

(A) in subparagraph (A)--

(i) by striking `Improving America's Schools Act of 1994' and inserting `Education Reinvestment Act';

(ii) by striking `subsections (c)(1) and (e) of'; and

(iii) in clause (iv), by striking `section 1111(b)(3)' and inserting `section 1111(b)(4)';

(B) in subparagraph (B), by striking `paragraphs (1) and (3) of section 1111(b)' and inserting `paragraphs (1) and (4) of section 1111(b)'; and

(C) in subparagraph (C)(i)--

(i) in subclause (I), by striking `subsections (c) and (e) of'; and

(ii) in subclause (II), by striking `Improving America's Schools Act of 1994' and inserting `Education Reinvestment Act'.

SEC. 108. SCHOOL CHOICE.

Section 1115A (20 U.S.C. 6316) is amended to read as follows:

`SEC. 1115A. SCHOOL CHOICE.

`(a) CHOICE PROGRAMS- A local educational agency may use funds under this part, in combination with State, local, and private funds, to develop and implement public school choice programs, for children eligible for assistance under this part, that permit parents to select the public school that their child will attend and are consistent with State and local law, policy, and practice related to public school choice and local pupil transfer.

`(b) CHOICE PLAN- A local educational agency that chooses to implement a public school choice program under this section shall first develop a plan that--

`(1) contains an assurance that all eligible students across grade levels served under this part will have equal access to the program;

`(2) contains an assurance that the program does not include elementary schools or secondary schools that follow a racially discriminatory policy;

`(3) describes how elementary schools or secondary schools will use resources under this part, and from other sources, to implement the plan;

`(4) contains an assurance that the plan will be developed with the involvement of parents and others in the community to be served, and individuals who will carry out the plan, including administrators, teachers, principals, and other staff;

`(5) contains an assurance that parents of eligible students served by the local educational agency will be given prompt notice of the existence of the public school choice program, the program's availability to such parents, and a clear explanation of how the program will operate;

`(6) contains an assurance that the public school choice program--

`(A) shall include charter schools and any other public elementary school and secondary school; and

`(B) shall not include as a `receiving school' an elementary school or a secondary school that--

`(i) is or has been identified as a school in, or eligible for, school improvement or corrective action;

`(ii) has been in school improvement or corrective action within the last 2 consecutive academic years; or

`(iii) is at risk of being eligible for school improvement within the next school year;

`(7) contains an assurance that transportation services or the costs of transportation to and from the public school choice program--

`(A) may be provided by the local educational agency with funds under this part and from other sources; and

`(B) shall not be provided from funds made available under this part to the local educational agency that exceed 10 percent of such funds; and

`(8) contains an assurance that such local educational agency will comply with the other requirements of this part.'.

SEC. 109. ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND SCHOOL IMPROVEMENT.

(a) LOCAL REVIEW- Section 1116(a) (20 U.S.C. 6317(a)) is amended--

(1) in paragraph (2), by striking `1111(b)(2)(A)(i)' and inserting `1111(b)(2)(B)';

(2) in paragraph (3)--

(A) by striking `individual school performance profiles' and inserting `school report cards';

(B) by striking `1111(b)(3)(I)' and inserting `1111(b)(4)(I)'; and

(C) by striking `and' after the semicolon;

(3) in paragraph (4), by striking the period and inserting `; and'; and

(4) by adding at the end the following:

`(5) review the effectiveness of the actions and activities the schools are carrying out under this part with respect to parental involvement assisted under this Act.'.

(b) SCHOOL IMPROVEMENT- Section 1116(c) (20 U.S.C. 6317(c)) is amended to read as follows:

`(c) SCHOOL IMPROVEMENT-

`(1) IN GENERAL- A local educational agency shall identify for school improvement any elementary school or secondary school served under this part that--

`(A) for 2 consecutive years failed to make adequate yearly progress as defined in the State's plan under section 1111(b)(2); or

`(B) was in, or was eligible for, school improvement status under this section on the day preceding the date of the enactment of the Education Reinvestment Act.

`(2) TRANSITION- The 2-year period described in paragraph (1)(A) shall include any continuous period of time immediately preceding the date of the enactment of the Education Reinvestment Act during which an elementary school or a secondary school did not make adequate yearly progress as defined in the State's plan, as such plan was in effect on the day preceding the date of enactment of the Education Reinvestment Act.

`(3) 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 as in

need of improvement under this subsection, a local educational agency may choose to review the progress of only those students in such school who are served, or are eligible for services, under this part.

`(4) OPPORTUNITY TO REVIEW AND PRESENT EVIDENCE- (A) Before identifying an elementary school or a secondary school for school improvement under paragraph (1), the local educational agency shall provide the school with an opportunity to review the school level data, including assessment data, on which the proposed identification is based.

`(B) If the principal of a school proposed for identification as in need of school improvement believes 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 the agency shall consider before making a final determination.

`(5) TIME LIMITS- Not later than 30 days after a local educational agency makes its initial determination that a school served by the agency and receiving assistance under this part is eligible for school improvement, the local educational agency shall make public a final determination on the status of the school.

`(6) NOTIFICATION TO PARENTS- A local educational agency shall, in an easily understandable format, and in the 3 languages, other than English, spoken by the greatest number of individuals in the area served by the local educational agency, provide in writing to parents of each student in an elementary school or a secondary school identified for school improvement--

`(A) an explanation of what the school improvement identification means, and how the school identified for improvement compares in terms of academic performance to other elementary schools or secondary schools served by the local educational agency and the State educational agency;

`(B) the reasons for such identification;

`(C) the data on which such identification was based;

`(D) an explanation of what the school identified for improvement is doing to address the problem of low achievement;

`(E) an explanation of what the local educational agency or State educational agency is doing to help the school address its achievement problems, including the amounts and types of professional development being provided to the instructional staff in such school, the amount of any financial assistance being provided by the State educational agency under section 1003, and the activities that are being provided with such financial assistance;

`(F) an explanation of how parents described in this paragraph can become involved in addressing the academic issues that caused the school to be identified as in need of improvement; and

`(G) an explanation of the right of parents, pursuant to paragraph (7), to transfer their child to a higher performing public school, including a public charter school or magnet school, that is not in school improvement, and how such transfer shall operate.

`(7) PUBLIC SCHOOL CHOICE OPTION-

`(A) SCHOOLS IN CORRECTIVE ACTION-

`(i) SCHOOLS IN CORRECTIVE ACTION ON OR BEFORE DATE OF ENACTMENT- In the case of a school identified for corrective action on or before the date of enactment of the Education Reinvestment Act, a local educational agency shall not later than 18 months after such date of enactment provide all students enrolled in the school an option to transfer (consistent with State and local law, policy, and practices related to public school choice and local pupil transfer) to any other higher performing public school, including a public charter or magnet school, that--

`(I) has not been identified for school improvement or corrective action;

`(II) is not at risk of being identified for school improvement or corrective action within the succeeding academic year; and

`(III) has not been in corrective action at any time during the 2 preceding academic years.

`(ii) SCHOOLS IDENTIFIED AFTER DATE OF ENACTMENT- In the case of a school identified for corrective action after the date of enactment of the Education Reinvestment Act, a local educational agency shall not later than 12 months after the date on which a local educational agency identifies the school for corrective action provide all students enrolled in the school with the transfer option described in clause (i).

`(B) COOPERATIVE AGREEMENT- If all public schools served by the local educational agency to which a child may transfer under clause (i) are identified for corrective action, the local educational agency shall, to the extent practicable, establish a cooperative agreement with other local educational agencies that serve geographic areas in proximity to the geographic area served by the local educational agency, to enable a child to transfer (consistent with State and local law, policy, and practices related to public school choice and local pupil transfer) to a school served by such other local educational agencies that meets the requirements described in subparagraph (A)(i).

`(C) TRANSPORTATION- A local educational agency that serves a school that has been identified for corrective action shall provide transportation services or the costs of such

services for children of parents who choose to transfer their children pursuant to this paragraph to a different school. Not more than 10 percent of the funds allocated to a local educational agency under this part may be used to provide such transportation services or costs of such services.

`(D) CONTINUATION OPTION- Once a school is no longer identified for or in corrective action, the local educational agency shall continue to provide public school choice as an option to students in such schools for a period of not less than 2 years.

`(8) SCHOOL PLAN- (A) Each school identified under paragraph (1) for school improvement shall, after being so identified, develop or revise a school plan, in consultation with parents, school staff, the local educational agency serving the school, the local school board, and other outside experts, for approval by such local educational agency. The school plan shall--

`(i) incorporate scientifically based research strategies that strengthen the core academic programs in the school and address the specific academic issues that caused the school to be identified for school improvement;

`(ii) adopt policies and practices in the school's core academic program that have the greatest likelihood of ensuring that all groups of students specified in section 1111(b)(2)(B)(iv) enrolled in the school will meet or exceed the State's proficient level of performance on the assessment required in section 1111(b)(4) within 10 years of the date of enactment of the Education Reinvestment Act;

`(iii) assure that the school will reserve not less than 10 percent of the funds made available to it under this part for each fiscal year that the school is in school improvement for the purpose of providing the school's teachers and principal high quality professional development that--

`(I) directly addresses the academic achievement problem that caused the school to be identified for school improvement; and

`(II) meets the requirements for professional development activities under section 1119;

`(iv) specify how the funds described in clause (iii) will be used to remove the school from school improvement status;

`(v) establish specific annual, numerical progress goals for each group of students specified in section 1111(b)(2)(B)(iv) enrolled in the school that will ensure that all such groups of students meet or exceed the State's proficient standard level of performance within 10 years of the date of enactment of the Education Reinvestment Act;

`(vi) identify how the school will provide written notification to parents of each child enrolled in such school, in a format and, to the extent practicable, in a language such parents can understand; and

`(vii) specify the responsibilities of the school, the local educational agency, and the State educational agency serving such school under the plan.

`(B) The local educational agency described in subparagraph (A)(vi) may condition approval of a school plan on inclusion of 1 or more of the corrective actions specified in paragraph (10)(C).

`(C) A school shall implement the school plan or revised plan expeditiously, but not later than the beginning of the school year following the school year in which the school was identified for improvement.

`(D) The local educational agency described in subparagraph (A)(vi) shall establish a peer review process to assist with review of a school improvement plan prepared by the school served by the local educational agency, promptly review the school plan, work with the school as necessary, and approve the school plan if the school plan meets the requirements of this paragraph.

`(9) TECHNICAL ASSISTANCE- (A) For each school identified for school improvement under paragraph (1), the local educational agency serving the school shall provide technical assistance as the school develops and implements its school plan.

`(B) Such technical assistance--

`(i) shall include assistance in analyzing data from the assessments required under section 1111(b)(4), and other samples of student work, to identify and address instructional problems and solutions;

`(ii) shall include assistance in identifying and implementing scientifically based instructional strategies and methods 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 such that the school resources are more effectively focused on those activities most likely to increase student achievement and to remove the school from school improvement status;

`(iv) may be provided directly by the local educational agency, through mechanisms authorized under section 1117, or with the local educational agency's approval, by the State educational agency, an institution of higher education 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, the recipient of a Federal contract or cooperative agreement as described under section 7005, or other entity with experience in helping schools improve achievement.

`(C) Technical assistance provided under this section by a local educational agency or an entity authorized by such agency shall be based upon scientifically based research.

`(10) CORRECTIVE ACTION- In order to help students served under this part meet challenging State standards, each local educational agency shall implement a system of corrective action in accordance with the following:

`(A) After providing technical assistance under paragraph (9) and subject to subparagraph (F), the local educational agency--

`(i) may take corrective action at any time with respect to a school served by the local educational agency that has been identified under paragraph (1);

`(ii) shall take corrective action with respect to any school served by the local educational agency that fails to make adequate yearly progress, as defined by the State under section 1111(b)(2)(B), after the end of the second year following the school year in which the school was identified under paragraph (1); and

`(iii) shall continue to provide technical assistance while instituting any corrective action under clause (i) or (ii).

`(B) As used in this paragraph, the term `corrective action' means action, consistent with State and local 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, curricula, or other problem in the school; and

`(ii) is designed to increase substantially the likelihood that students enrolled in the school subject to corrective action will perform at the proficient and advanced performance levels.

`(C) In the case of a school described in subparagraph (A)(ii), the local educational agency shall take not less than 1 of the following corrective actions:

`(i) Withhold funds from the school.

`(ii) Make alternative governance arrangements, including reopening the school as a public charter school.

`(iii) Reconstitute the relevant school staff.

`(iv)(I) Authorize students to transfer to other higher performing public schools served by the local educational agency, including public charter and magnet schools.

`(II) Provide such students transportation services, or the costs of transportation, to such schools (except that such funds used to provide transportation services or costs of transportation shall not exceed 10 percent of the amount authorized under section 1122(a)(2)).

`(III) Take not less than 1 additional action described under this subparagraph.

`(v) Institute and fully implement a new curriculum, including appropriate professional development for all relevant staff, that is based upon scientifically based research and offers substantial promise of improving educational achievement for low-performing students.

`(D) A local educational agency may delay, for a period not to exceed 1 year, implementation of corrective action only if the failure to make adequate yearly progress was justified 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.

`(E) The local educational agency shall publish and disseminate to the public and to the parents of each student enrolled in a school subject to corrective action, in a format and, to the extent practicable, in a language that the parents can understand, information regarding any corrective action the local educational agency takes under this paragraph through such means as the Internet, the media, and public agencies.

`(F)(i) Before taking corrective action with respect to any school under this paragraph, a local educational agency shall provide the school an opportunity to review the school level data, including assessment data, on which the proposed determination is made.

`(ii) If the school believes that the proposed determination is in error for statistical or other substantive reasons, the school principal may provide supporting evidence to the local educational agency, which shall consider such evidence before making a final determination.

`(G) TIME LIMITS- Not later than 30 days after the local educational agency makes its initial determination that a school served by the local educational agency and receiving assistance under this part is eligible for corrective action, the local educational agency shall make a final and public determination on the status of the school.

`(11) STATE EDUCATIONAL AGENCY RESPONSIBILITIES- If a State educational agency determines that a local educational agency failed to carry out its responsibilities under this section, or determines that, after 1 year of implementation of the corrective action, such action has not resulted in sufficient progress in increased student performance, the State educational agency shall take such action as the agency finds necessary, including designating a course of corrective action described in paragraph (10)(C), consistent with this section, to improve the

affected schools and to ensure that the local educational agency carries out the local educational agency's responsibilities under this section.

`(12) SPECIAL RULES- Schools that, for at least 2 of the 3 years following identification under paragraph (1), make adequate yearly progress toward meeting the State's proficient and advanced levels of performance shall no longer be identified for school improvement.'.

(c) STATE REVIEW AND LOCAL EDUCATIONAL AGENCY IMPROVEMENT- Section 1116(d) (20 U.S.C. 6317(d)) is amended to read as follows:

`(d) STATE REVIEW AND LOCAL EDUCATIONAL AGENCY IMPROVEMENT-

`(1) IN GENERAL- A State educational agency shall annually review the progress of each local educational agency within the State receiving funds under this part to determine whether schools served by such agencies and receiving assistance under this part are making adequate yearly progress, as defined in section 1111(b)(2), toward meeting the State's student performance standards and to determine whether each local educational agency is carrying out its responsibilities under sections 1116 and 1117.

`(2) IDENTIFICATION OF LOCAL EDUCATIONAL AGENCY FOR IMPROVEMENT- A State educational agency shall identify for improvement any local educational agency that--

`(A) for 2 consecutive years fails to make adequate yearly progress as defined in the State's plan under section 1111(b)(2); or

`(B) had been identified for, or was eligible for, improvement under this section as this section was in effect on the day preceding the date of enactment of the Education Reinvestment Act.

`(3) TRANSITION- The 2-year period described in paragraph (2)(A) shall include any continuous period of time immediately preceding the date of the enactment of the Education Reinvestment Act during which a local educational agency did not make adequate yearly progress as defined in the State's plan, as such plan was in effect on the day preceding the date of the enactment of the Education Reinvestment Act.

`(4) TARGETED ASSISTANCE SCHOOLS- For purposes of targeted assistance schools within a local educational agency, a State educational agency may choose to review the progress of only the students in such schools who are served under this part.

`(5) OPPORTUNITY TO REVIEW AND PRESENT EVIDENCE- (A) Before identifying a local educational agency for improvement under paragraph (2), a State educational agency shall provide the local educational agency with an opportunity to review the local educational agency data, including assessment data, on which the proposed identification is based.

`(B) If the local educational agency believes that the proposed identification is in error for statistical or other substantive reasons, the local educational agency may provide supporting evidence to the State educational agency, which the State educational agency shall consider before making a final determination.

`(6) TIME LIMITS- Not later than 45 days after the State educational agency makes its initial determination that a local educational agency within the State and receiving assistance under this part is eligible for improvement, the State educational agency shall make public a final determination on the status of the local educational agency.

`(7) NOTIFICATION TO PARENTS- The State educational agency shall promptly notify parents of each student enrolled in a school served by a local educational agency identified for improvement, in a format, and to the extent practicable, in a language the parents can understand, of the reasons for such agency's identification and how parents can participate in upgrading the quality of the local educational agency.

`(8) LOCAL EDUCATIONAL AGENCY REVISIONS-

`(A) IN GENERAL- Each local educational agency identified under paragraph (2) shall, after being so identified, develop or revise a local educational agency plan, in consultation with the local school board, parents, teachers, school staff, and others, for approval by the State educational agency. Such plan shall--

`(i) incorporate scientifically based research strategies that strengthen the core academic program in the local educational agency;

`(ii) identify specific annual numerical academic achievement objectives in at least the areas of mathematics and English language arts that the local educational agency will meet, with such objectives being calculated in a manner such that their achievement will ensure that each group of students enrolled in each school served by the local educational agency will meet or exceed the proficient standard level of performance in assessments required under section 1111(b)(4) within 10 years of the date of enactment of the Education Reinvestment Act; and

`(iii) assure that the local educational agency will--

`(I) reserve not less than 10 percent of the funds made available to the local educational agency under this part for each fiscal year that the agency is in improvement for the purpose of providing high quality professional development to teachers and principals at schools served by the agency and receiving funds under this part that directly address the academic achievement problem that caused the local educational agency to

be identified for improvement and shall be in keeping with the definition of professional development provided in section 1119; and

`(II) the improvement plan shall specify how these funds will be used to remove the local educational agency from improvement status;

`(iv) identify how the local educational agency will provide written notification to parents described in paragraph (7) in a format, and to the extent practicable in a language, that the parents can understand, pursuant to paragraph (7);

`(v) specify the responsibilities of the State educational agency and the local educational agency under the plan; and

`(vi) include a review of the local educational agency budget to ensure that resources are focused on those activities that are most likely to improve student achievement and to remove the agency from improvement status.

`(B) PEER REVIEW- The State educational agency shall establish a peer review process to assist with the review of the local educational agency improvement plan, promptly review the plan, work with the local educational agency as necessary, and approve the plan if the plan meets the requirements of this paragraph.

`(C) DEADLINE FOR IMPLEMENTATION- The local educational agency shall implement the local educational agency plan or revised plan expeditiously, but not later than the beginning of the school year following the school year in which the agency was identified for improvement.

`(D) RESOURCES REALLOCATION- If the local educational agency budget fails to allocate resources, consistent with, subparagraph (A)(iv), the State educational agency may direct the local educational agency to reallocate resources to more effective activities.

`(9) STATE EDUCATIONAL AGENCY RESPONSIBILITY- For each local educational agency identified under paragraph (2), the State educational agency shall provide technical or other assistance, if requested, as authorized under section 1117, to better enable the local educational agency--

`(A) to develop and implement the local educational agency plan or revised plan as approved by the State educational agency consistent with the requirements of this section; and

`(B) to work with schools served by the local educational agency that are identified for improvement.

`(10) TECHNICAL ASSISTANCE- Technical assistance provided by the State educational agency--

`(A) shall include assistance in analyzing data from the assessments required under section 1111(b)(4) to identify and address instructional problems and solutions;

`(B) shall include assistance in identifying and implementing scientifically based instructional strategies and methods that have proven effective in addressing the specific instructional issues that caused the local educational agency to be identified for improvement;

`(C) shall include assistance in analyzing and revising the local educational agency's budget such that the agency's resources are more effectively focused on those activities most likely to increase student achievement and to remove the agency from improvement status; and

`(D) may be provided by--

`(i) the State educational agency; or

`(ii) with the local educational agency's approval, by an institution of higher education (in full compliance with all the reporting provisions of title II of the Higher Education Act of 1965), a private not-for-profit or for-profit organization, an educational service agency, the recipient of a Federal contract or cooperative agreement as described under section 7005, or any other entity with experience in helping schools improve achievement.

`(11) RESOURCES REALLOCATION- The State educational agency may, as a condition of providing the local educational agency with technical assistance and financial support in developing and carrying out an improvement plan, require that the local educational agency reallocate resources away from ineffective or inefficient activities to activities that, through scientific research, have proven to have the greatest impact on increasing student achievement and closing the achievement gap between groups of students.

`(12) CORRECTIVE ACTION- In order to help students served under this part meet challenging State standards, each State educational agency shall implement a system of corrective action in accordance with the following:

`(A) After providing technical assistance under paragraph (10), and subject to subparagraph (D), the State educational agency--

`(i) shall take corrective action with respect to any local educational agency that fails to make adequate yearly progress, as defined by the State, after the end of the second year following its identification under paragraph (2); and

`(ii) shall continue to provide technical assistance while instituting any corrective action under clause (i) or (ii).

`(B) As used in this paragraph, the term `corrective action' means action, consistent with State law, that--

`(i) substantially and directly responds to--

`(I) the consistent academic failure of schools served by a local educational agency that caused the State educational agency to take such action with respect to the local educational agency; and

`(II) any underlying staffing, curricular, or other problem in the schools served by the local educational agency; and

`(ii) is designed to meet the goal of having all students served under this part perform at the proficient and advanced performance levels.

`(C) In the case of a local educational agency described in subparagraph (A)(ii), the State educational agency shall take not less than 1 of the following corrective actions:

`(i) Withhold funds from the local educational agency.

`(ii) Reconstitute the relevant local educational agency personnel.

`(iii) Remove particular schools from the area served by the local educational agency, and establish alternative arrangements for public governance and supervision of such schools.

`(iv) Appoint, through the State educational agency, a receiver or trustee to administer the affairs of the local educational agency in place of the local educational agency's superintendent and school board.

`(v) Abolish or restructure the local educational agency.

`(vi)(I) Authorize students to transfer from a school operated by the local educational agency to a higher performing public school, including a public charter or magnet school, operated by another local educational agency.

`(II) Provide students described in subclause (I) transportation services, or the costs of transportation, not to exceed 10 percent of the funds allocated to a local educational agency under this part, to such higher performing schools or public charter schools.

`(III) Take not less than 1 additional action described under this subparagraph.

`(D) Prior to implementing any corrective action, the State educational agency shall provide notice and an opportunity for a hearing to the affected local educational agency, if State law provides for such notice and opportunity.

`(E) Not later than 45 days after the State educational agency makes its initial determination that a local educational agency in the State and receiving assistance under this part is eligible for improvement, the State educational agency shall make public a final determination on the status of the local educational agency.

`(F) The State educational agency shall publish and disseminate to parents described in paragraph (7) and the public information regarding any corrective action the State educational agency takes under this paragraph through such means as the Internet, the media, and public agencies.

`(G) The State educational agency may delay, for a period not to exceed 1 year, implementation of corrective action if the local educational agency's failure to make adequate yearly progress was justified 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 schools served by the local educational agency.'.

SEC. 110. STATE ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.

Section 1117 (20 U.S.C. 6318) is amended to read as follows:

`SEC. 1117. STATE ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.

`(a) SYSTEM FOR SUPPORT- Using funds allocated under section 1003(a)(1), each State educational agency shall establish a statewide system of intensive and sustained support and improvement for local educational agencies, elementary schools, and secondary schools receiving funds under this part, in order to ensure that all groups of students specified in section 1111 and attending such schools meet or exceed the proficient standard level performance on the assessments required by section 1111(b)(4) within 10 years of the date of enactment of the Education Reinvestment Act.

`(b) PRIORITIES- In carrying out this section, a State educational agency shall--

`(1) first, provide support and assistance to local educational agencies and schools identified as in need of improvement under section 1116;

`(2) second, provide support and assistance to local educational agencies subject to corrective action under section 1116, and assist elementary schools and secondary schools, in accordance with section 1116(c)(11), for which a local educational agency has failed to carry out its responsibilities under section 1116(c) (9) and (10); and

`(3) third, provide support and assistance to local educational agencies and schools that are at risk of being identified as being in need of improvement within the next academic year, participating under this part.

`(c) APPROACHES- In order to achieve the purpose described in subsection (a), each statewide system shall provide technical assistance and support through approaches such as--

`(1) school support teams, composed of individuals who are knowledgeable about scientifically based research, teaching and learning practices, and particularly about strategies for improving educational results for low-achieving children; and

`(2) designating and using Distinguished Educators, who are chosen from schools served under this part that have been especially successful in improving academic achievement.

`(d) FUNDS- Each State educational agency--

`(1) shall use funds reserved under section 1003(a)(1), but not used under section 1003(a)(2), to carry out this section; and

`(2) may use State administrative funds authorized under section 1703(c) to carry out this section.

`(e) ALTERNATIVES- The State educational agency may--

`(1) devise additional approaches to providing the technical assistance and support described in subsection (c), such as providing assistance through institutions of higher education, educational service agencies, or other local consortia; and

`(2) seek approval from the Secretary to use funds under section 1003(a)(2) for such approaches as part of the State plan.'.

SEC. 111. PARENTAL INVOLVEMENT CHANGES.

(a) LOCAL EDUCATIONAL AGENCY POLICY- Section 1118(a) (20 U.S.C. 6319(a)) is amended--

(1) in paragraph (1), by striking `programs, activities, and procedures' and inserting `activities and procedures';

(2) in paragraph (2), by striking subparagraphs (E) and (F) and inserting the following:

`(E) conduct, with the involvement of parents, an annual evaluation of the content and effectiveness of the parental involvement policy in improving the academic quality of the schools served under this part;

`(F) involve parents in the activities of the schools served under this part; and

`(G) promote consumer friendly environments within the local educational agency and schools served under this part.';

(3) in paragraph (3), by adding at the end the following new subparagraph:

`(C) Not less than 90 percent of the funds reserved under subparagraph (A) shall be distributed to schools served under this part.'.

(b) NOTICE- Section 1118(b)(1) (20 U.S.C. 6319(b)(1)) is amended by inserting after the first sentence `Parents shall be notified of the policy in a format, and to the extent practicable in a language, that the parents can understand.'.

(c) PARENTAL INVOLVEMENT- Section 1118(c)(4) (20 U.S.C. 6319(c)(4)) is amended--

(1) in subparagraph (B), by striking `school performance profiles required under section 1116(a)(3)' and inserting `school reports described under section 4401';

(2) by redesignating subparagraphs (D) and (E) as subparagraphs (F) and (G), respectively;

(3) by inserting after subparagraph (C) the following:

`(D) notice of the school's designation as a school in need of improvement under section 1116(b), if applicable, and a clear explanation of what such designation means;

`(E) notice of corrective action taken against the school under section 1116(c)(9) and 1116(d)(12), if applicable, and a clear explanation of what such action means;'; and

(4) in subparagraph (G) (as redesignated by paragraph (2)), by striking `subparagraph (D)' and inserting `subparagraph (F)'.

(d) BUILDING CAPACITY FOR INVOLVEMENT- Section 1118(e) (20 U.S.C 6319(e)) is amended--

(1) in paragraph (1), by striking `National Educational Goals,';

(2) by redesignating paragraphs (14) and (15) as paragraphs (16) and (17), respectively;

(3) by inserting after paragraph (13) the following:

`(14) may establish a district wide parent advisory council to advise on all matters related to parental involvement in programs supported under this part;'; and

(4) by redesignating paragraph (5) as paragraph (15) and transferring such paragraph to follow paragraph 14 (as redesignated by paragraph (3));

(5) by inserting after paragraph (4) the following:

`(5) shall expand the use of electronic communications among teachers, students, and parents, such as through the use of websites and e-mail communications;';

(6) in paragraph (8), by inserting `, to the extent practicable, in a language and format the parent can understand' before the semicolon; and

(7) in paragraph (15) (as redesignated by paragraph (4)), by striking `shall' and inserting `may'.

(e) ACCESSIBILITY- Section 1118(f) (20 U.S.C. 6319(f)) is amended by striking `, including' and all that follows through the period and inserting `and of parents of migratory children, including providing information and school reports required under section 1111 and described in section 4401 in a language and form such parents understand.'.

SEC. 112. QUALIFICATIONS FOR TEACHERS AND PARAPROFESSIONALS.

Title I of the Act (20 U.S.C. 6301 et seq.) is amended--

(1) by redesignating section 1119 (20 U.S.C. 6320) as section 1119A; and

(2) by inserting after section 1118 the following:

`SEC. 1119. QUALIFICATIONS FOR TEACHERS AND PARAPROFESSIONALS.

`(a) IN GENERAL-

`(1) PLAN- Each State educational agency receiving assistance under this part shall develop and submit to the Secretary a plan to ensure that all teachers teaching within the State are fully qualified, as defined in section 2001(1), not later than December 31, 2005. Such plan shall include an assurance that the State educational agency will require each local educational agency and school receiving funds under this part publicly to report the

annual progress with respect to the local educational agency's and school's performance in increasing the percentage of classes in core academic areas taught by fully qualified teachers.

`(2) SPECIAL RULE- Notwithstanding any other provision of law, the provisions of this section governing teacher qualifications shall not supersede State laws governing public charter schools.

`(b) NEW PARAPROFESSIONALS- Each local educational agency receiving assistance under this part shall ensure that each paraprofessional hired after December 31, 2004, and working in a program assisted under this part--

`(1) has completed at least the number of courses at an institution of higher education in the area of elementary education, or in the related subject area in which the paraprofessional is working, for a minor degree at such institution;

`(2) has obtained an associate's (or higher) degree; or

`(3) has met a rigorous standard of quality that demonstrates, through formal State or local certification (as established in subsection (h)),--

`(A) knowledge of, and the ability to provide tutorial assistance in, reading, writing, and mathematics; or

`(B) knowledge of, and the ability to provide tutorial assistance in, reading readiness, writing readiness, and mathematics readiness, as appropriate.

`(c) EXISTING PARAPROFESSIONALS- Each local educational agency receiving assistance under this part shall ensure that each paraprofessional working in a program assisted under this part shall, within 6 years after the date of enactment of the Education Reinvestment Act, satisfy the requirements of subsection (b).

`(d) EXCEPTIONS FOR TRANSLATION AND PARENTAL INVOLVEMENT ACTIVITIES- Subsections (b) and (c) 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 or other school readiness activities that are noninstructional.

`(e) GENERAL REQUIREMENT FOR ALL PARAPROFESSIONALS- Each local educational agency receiving assistance under this part shall ensure that each paraprofessional working in a program assisted under this part, regardless of the paraprofessional's hiring date, possesses a secondary school diploma or its recognized equivalent.

`(f) DUTIES OF PARAPROFESSIONALS-

`(1) IN GENERAL- Each local educational agency receiving assistance under this part shall ensure that a paraprofessional working in a program assisted under this part is not assigned a duty inconsistent with this subsection.

`(2) AUTHORIZED RESPONSIBILITIES- A paraprofessional described in paragraph (1) may be assigned--

`(A) to provide 1-on-1 tutoring for eligible students under this part, if the tutoring is scheduled at a time when the 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 or school readiness activities that are noninstructional;

`(E) to provide support in a library or media center;

`(F) to act as a translator;

`(G) to provide assistance with extra curricular activities which are noninstructional; or

`(H) assist with instructional services to students.

`(3) LIMITATIONS- A paraprofessional described in paragraph (1)--

`(A) shall not perform the duties of a certified teacher or a substitute; and

`(B) shall not perform any duty assigned under paragraph (2) unless under the direct supervision of a fully qualified teacher or other appropriate professional.

`(g) USES OF FUNDS-

`(1) PROFESSIONAL DEVELOPMENT- Notwithstanding subsection (h)(2), a local educational agency receiving funds under this part shall use such funds to support ongoing training and professional development to assist teachers and paraprofessionals in satisfying the requirements of this section.

`(2) TRAINING- Such training and professional development for paraprofessionals shall--

`(1) include training that is related directly to skills and knowledge required to meet responsibilities that a paraprofessional may be assigned;

`(2) provide paraprofessionals the opportunity to undertake a minimum of 15 hours of ongoing job related training per year; and

`(3) integrate training provided paraprofessionals with professional development activities for teachers.

`(h) STATE CERTIFICATION- Each State educational agency receiving assistance under this part shall--

`(1) ensure that the State educational agency has in place State criteria for the certification of paraprofessionals by December 31, 2002; and

`(2) ensure that paraprofessionals hired before December 31, 2003, are in high-quality professional development activities that ensure that the paraprofessional has the ability to provide tutorial assistance in--

`(A) reading, writing, and mathematics: or

`(B) reading readiness, writing readiness, and mathematics readiness, as appropriate.

`(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 elementary school and secondary school operating a program under section 1114 or 1115 annually attest in writing as to whether each such school is in compliance with the requirements of this section.

`(2) AVAILABILITY OF INFORMATION- Copies of the annual certification described in paragraph (1)--

`(A) shall be maintained at each elementary school and secondary 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 upon request.'.

SEC. 113. PROFESSIONAL DEVELOPMENT.

Section 1119A (as redesignated by section 112(a)) is amended--

(1) by amending subsection (a) to read as follows:

`(a) PURPOSE- The purpose of this section is to assist each local educational agency receiving assistance under this part in increasing the academic achievement of eligible children (as identified under section 1115(b)(1)(B)) (in this section referred to as eligible children) through improved teacher quality.';

(2) in subsection (b)--

(A) by amending paragraph (1) to read as follows:

`(1) REQUIRED ACTIVITIES- Each local educational agency receiving assistance under this part shall provide professional development activities under this section that shall--

`(A) give teachers, principals, paraprofessionals, and administrators the knowledge and skills to provide eligible children with the opportunity to meet challenging State or local content standards and student performance standards;

`(B) support the recruiting, hiring, and training of fully qualified teachers, including teachers fully qualified through State and local alternative routes;

`(C) advance teacher understanding of effective instructional strategies, based on scientifically based research, for improving eligible children achievement, at a minimum, in mathematics, science, and English language arts;

`(D) be directly related to the curricula and content areas in which the teacher provides instruction;

`(E) be designed to enhance the ability of a teacher to understand and use the State's standards for the subject area in which the teacher provides instruction;

`(F) be tied to scientifically based research that demonstrates the effectiveness of such professional development activities or programs in increasing eligible children achievement or substantially increasing the knowledge and teaching skills of teachers;

`(G) be of sufficient intensity and duration (not to include 1-day or short-term workshops and conferences) to have a positive and lasting impact on the teacher's performance in the classroom, except that this subparagraph shall not apply to an activity if such activity is one component of a long-term comprehensive professional development plan established by the teacher and the teacher's supervisor based upon an assessment of their needs, their eligible children's needs, and the needs of the local educational agency;

`(H) be developed with extensive participation of teachers, principals, parents, administrators of schools, and local school boards of schools to be served under this part;

`(I) to the extent appropriate, provide training for teachers in the use of technology so that technology and its applications are effectively used in the classroom to improve teaching and learning in the curricula and academic content areas in which the teachers provide instruction;

`(J) as a whole, be regularly evaluated for such activities' impact on increased teacher effectiveness and improved student achievement, with the findings of such evaluations used to improve the quality of professional development; and

`(K) include strategies for identifying and eliminating gender and racial bias in instructional materials, methods, and practices.';

(B) in paragraph (2)--

(i) in subparagraph (A), by inserting `and data to inform and instruct classroom practice' before the semicolon;

(ii) by striking subparagraphs (D) and (G);

(iii) by redesignating subparagraphs (E), (F), (H), and (I), as subparagraphs (D), (E), (F) and (G), respectively; and

(iv) by inserting after subparagraph (G) (as redesignated by clause (iii)) the following new subparagraph:

`(H) instruction in the ways that teachers, principals, and guidance counselors can work with parents and students from groups, such as females and minorities, that are underrepresented in careers in mathematics, science, engineering, and technology, to encourage and maintain the interest of such students in those careers.';

(3) by striking subsections (f) through (i); and

(4) by adding after subsection (e) the following:

`(f) CONSOLIDATION OF FUNDS- Funds provided under this part that are used for professional development purposes may be consolidated with funds provided under title II of this Act and other sources.

`(g) DEFINITION- The term `fully qualified' has the same meaning given such term in section 2001(1).

`(h) SPECIAL RULE-

`(1) IN GENERAL- No State educational agency shall require a local educational agency or elementary school or secondary school to expend a specific amount of funds for professional development activities under this part.

`(2) EXCEPTION- Paragraph (1) shall not apply with respect to requirements under section 1116(d)(9).'.

SEC. 114. FISCAL REQUIREMENTS.

Section 1120A(a) (20 U.S.C. 6322(a)) is amended by striking `section 14501' and inserting `section 8501'.

SEC. 115. COORDINATION REQUIREMENTS.

Section 1120B (20 U.S.C. 6323) is amended--

(1) in subsection (a), by striking `to the extent feasible' and all that follows through the period and inserting `in coordination with local Head Start agencies, and if feasible, other early childhood development programs.';

(2) in subsection (b)--

(A) in paragraph (3) by striking `and' after the semicolon;

(B) in paragraph (4) by striking the period and inserting `; and'; and

(C) by adding at the end, the following:

`(5) linking the educational services provided in such local educational agency with the services provided in local Head Start agencies.'.

SEC. 116. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF THE INTERIOR.

Section 1121 (20 U.S.C. 6331) is amended to read as follows:

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

`(a) RESERVATION OF FUNDS- From the amount appropriated for payments to States for any fiscal year under section 1002(a), 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) GRANTS AUTHORIZED- From the amount made available for a fiscal year under subsection (a), the Secretary shall award grants to the outlying areas and freely associated States to carry out the purposes of this part.

`(2) COMPETITIVE GRANTS- For each of fiscal years 2000 and 2001, the Secretary shall ensure that grants are awarded under this subsection on a competitive basis in accordance with paragraph (3).

`(3) REQUIREMENTS AND LIMITATION FOR COMPETITIVE GRANTS-

`(A) RECOMMENDATIONS- The Secretary shall award grants under this subsection on the basis of the recommendations of the Pacific Region Educational Laboratory in Honolulu, Hawaii.

`(B) TERMINATION OF ELIGIBILITY- Notwithstanding any other provision of law, the freely associated States shall not be eligible to receive funds under this part after September 30, 2001.

`(C) ADMINISTRATIVE COSTS- The Secretary may provide that not more than 5 percent of the amount reserved for grants under this subsection will be used to pay the administrative costs of the Pacific Region Educational Laboratory for services provided under subparagraph (A).

`(4) SPECIAL RULE- The provisions of Public Law 95-134 (91 Stat. 1159) that permit the consolidation of grants by the outlying areas shall not apply to funds provided to the freely associated States under this subsection.

`(5) FUNDING- The amount reserved by the Secretary to award grants under this subsection shall not exceed the amount reserved under this section (as this section existed on the day prior to the date of enactment of the Education Reinvestment Act) for the freely associated States for fiscal year 1999.

`(6) DEFINITIONS- In this subsection and subsection (a):

`(A) FREELY ASSOCIATED STATES- The term `freely associated States' means the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.

`(B) OUTLYING AREA- The term `outlying area' means the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

`(c) 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 and secondary schools for Indian children operated or supported by the Department of the Interior; and

`(B) out-of-State Indian children in elementary 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, upon such terms as the Secretary determines will best carry out the purposes of this part, with respect to out-of-State Indian children described in paragraph (1). The amount of such payment may not exceed, for each such child, the greater of--

`(A) 40 percent of the average per pupil expenditure in the State in which the agency is located; or

`(B) 48 percent of such expenditure in the United States.'.

SEC. 117. AMOUNTS FOR GRANTS.

Section 1122 (20 U.S.C. 6332) is amended to read as follows:

`SEC. 1122. AMOUNTS FOR BASIC GRANTS, CONCENTRATION GRANTS, AND TARGETED GRANTS.

`(a) ALLOCATION FORMULA-

`(1) ALLOCATION TO STATES- Of the amount appropriated to carry out this part for each of fiscal years 2001 through 2005 (each such year, as appropriate, shall be referred to in this subsection as the `current fiscal year'), the amount to be allocated to States for a fiscal year based on population data for local educational agencies in such States, shall be equal to the sum of--

`(A) an amount equal to the sum of--

`(i) the amount made available to carry out section 1124 (as such section existed on the day prior to the date of enactment of the Education Reinvestment Act) for fiscal year 1999; and

`(ii) 21.25 percent of the amount, if any, by which the amount appropriated under section 1002(a) for the current fiscal year exceeds the amount appropriated under such section (as such section existed on the day prior to the date of enactment of the Education Reinvestment Act) for fiscal year 1999, to be allocated in accordance with section 1124;

`(B) an amount equal to the sum of--

`(i) the amount made available to carry out section 1124A (as such section existed on the day prior to the date of enactment of the Education Reinvestment Act) for fiscal year 1999; and

`(ii) 3.75 percent of the amount, if any, by which the amount appropriated under section 1002(a) for the current fiscal year exceeds the amount appropriated under such section (as such section existed on the day prior to the date of enactment of the Education Reinvestment Act) for fiscal year 1999, to be allocated in accordance with section 1124A; and

`(C) an amount equal to 75 percent of the amount, if any, by which the amount appropriated under section 1002(a) for the current fiscal year exceeds the amount appropriated under such section (as such section existed on the day prior to the date of enactment of the Education Reinvestment Act) for fiscal year 1999, to be allocated in accordance with section 1125.

`(2) ALLOCATION TO LOCAL EDUCATIONAL AGENCIES- Of the total amounts allocated to a State under this part for each of fiscal years 2001 and 2002, 96.5 percent shall be allocated by the State educational agency to local educational agencies, and for each of fiscal years 2003 through 2005, 95.5 percent shall be allocated to local educational agencies, of which--

`(A) 75 percent shall be allocated in accordance with section 1125;

`(B) 21.25 percent shall be allocated in accordance with section 1124; and

`(C) 3.75 percent shall be allocated in accordance with section 1124A.

`(b) ADJUSTMENTS WHERE NECESSITATED BY APPROPRIATIONS-

`(1) IN GENERAL- If the sums available under this part for any fiscal year are insufficient to pay the full amounts that all States and local educational agencies are eligible to receive under sections 1124, 1124A, and 1125 for such fiscal year, the Secretary shall ratably reduce the allocations to such States and local educational agencies, subject to subsections (c) and (d).

`(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) GRANTS TO STATES- The total amount allocated to each State under this part in each fiscal year shall not be less than the amount allocated to each State in the preceding fiscal year.

`(2) GRANTS TO LOCAL EDUCATIONAL AGENCIES- The total amount allocated to each local educational agency under this part in each fiscal year shall not be less than the amount allocated to each local educational agency in the preceding fiscal year.

`(d) RATABLE REDUCTIONS-

`(1) IN GENERAL- If the sums made available under this part for any fiscal year are insufficient to pay the full amounts that 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, and 1125, the term `State' means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.'.

SEC. 118. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES.

Section 1124 (20 U.S.C. 6333) is amended to read as follows:

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

`(a) AMOUNT OF GRANTS-

`(1) GRANTS FOR LOCAL EDUCATIONAL AGENCIES AND PUERTO RICO- Except as provided in paragraph (3) and in section 1126, the amount of a grant that a local educational agency is eligible to receive under this section for a fiscal year shall be 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 involved, 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 the amount of grants under this section on the basis of the number of children counted under subsection (c) for local educational agencies. For purposes of this subparagraph, the Secretary and the Secretary of Commerce shall publicly disclose the reasoning for their determinations under subsection (c) in detail.

`(B) ALLOCATIONS TO LARGE AND SMALL LOCAL EDUCATIONAL AGENCIES-

`(i) APPLICATION OF PROVISION- The Secretary shall determine the amount of grant awards under this section for each large or small local educational agency.

`(ii) LARGE AGENCIES- The amount of a grant awarded under this section for each large local educational agency shall be the amount determined by the Secretary under clause (i).

`(iii) SMALL AGENCIES- With respect to the amount of a grant awarded under this section to a small local educational agency, the State educational agency may--

`(I) provide such grant in an amount 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 the number of small local educational agencies.

`(iv) ALTERNATIVE METHOD- An alternative method approved under clause (iii)(II) shall be based on population data that the State educational agency determines best reflects 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) APPEALS- A small local educational agency that is dissatisfied with the determination of its grant amount by the State educational agency under clause (iii)(II), may appeal that determination to the Secretary, who shall respond not later than 45 days after receipt of such appeal.

`(vi) DEFINITION- In this subparagraph:

`(I) LARGE LOCAL EDUCATIONAL AGENCY- The term `large local educational agency' means a local educational agency serving an area with a total population of 20,000 or more.

`(II) SMALL LOCAL EDUCATIONAL AGENCY- The term `small local educational agency' means a local educational agency serving an area with a total population of less than 20,000.

`(3) PUERTO RICO-

`(A) IN GENERAL- For each fiscal year, the amount of the grant that the Commonwealth of Puerto Rico shall be eligible to receive under this section shall be determined by multiplying the number of children counted under subsection (c) for the Commonwealth of Puerto Rico by the product of--

`(i) the percentage which the average per pupil expenditure in the Commonwealth of Puerto Rico is of the lowest average per pupil expenditure of any of the 50 States; and

`(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 2000, 75.0 percent;

`(ii) for fiscal year 2001, 77.5 percent;

`(iii) for fiscal year 2002, 80.0 percent;

`(iv) for fiscal year 2003, 82.5 percent; and

`(v) for fiscal year 2004, and succeeding fiscal years, 85.0 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 part than the State or District received under this part for the preceding fiscal year, the percentage shall be the greater of the percentage described in subparagraph (A)(i) or the percentage used for the preceding fiscal year.

`(4) DEFINITION- In this subsection, the term `State' does not include Guam, American Samoa, the Virgin Islands, and the Northern Mariana Islands.

`(b) MINIMUM NUMBER OF CHILDREN TO QUALIFY- A local educational agency shall be eligible for a basic grant under this section for any fiscal year only if--

`(1) there are 10 or more children counted under subsection (c) with respect to that agency; and

`(2) such children make up more than 2 percent of the total school-age population in the agency's jurisdiction.

`(c) CHILDREN TO BE COUNTED-

`(1) CATEGORIES OF CHILDREN- The number of children to be counted for purposes of this section is the aggregate of--

`(A) the number of children ages 5 to 17, inclusive, in the school district of the local educational agency involved from families below the poverty level as determined under paragraph (2); and

`(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) ages 5 to 17, inclusive, in the school district of the local educational agency involved 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.

`(2) DETERMINATION OF NUMBER OF CHILDREN-

`(A) NUMBER OF CHILDREN BELOW THE POVERTY LEVEL- For purposes of this subsection, the Secretary shall determine the number of children ages 5 to 17, inclusive, from families below the poverty level on the basis of the most recent satisfactory data, described in paragraph (3), that is available from the Department of Commerce.

`(B) SPECIAL RULES-

`(i) DISTRICT OF COLUMBIA AND PUERTO RICO- The District of Columbia and the Commonwealth of Puerto Rico shall be treated as individual local educational agencies for purposes of this paragraph.

`(ii) MULTIPLE COUNTIES- If a local educational agency contains 2 or more counties in their entirety, then each county will be treated as if such county were a separate local educational agency for purposes of calculating grants under this part. The total of grants for such counties shall be allocated to such local educational agency and the local educational agency shall distribute to schools in each county within such agency a share of the local educational agency's total grant in an amount that is not 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 2001, and every 2 years thereafter, the Secretary shall use updated data on the number of children, ages 5 to 17, inclusive, from families below the poverty level for local educational agencies or counties, as 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.

`(B) CRITERIA OF POVERTY- In determining the families which are below the poverty level, the Secretary shall utilize the criteria of poverty used by the Bureau of the Census in compiling the most recent decennial census, 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.

`(C) 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 Secretaries shall publicly disclose the reasons for such determination.

`(4) OTHER CHILDREN TO BE COUNTED-

`(A) IN GENERAL- For the purposes of this section, the Secretary shall--

`(i) determine the number of children ages 5 to 17, inclusive, from families above the poverty line on the basis of the number of such children from families receiving an annual income in excess of the annual income current criteria of poverty for payments under a State program funded under part A of title IV of the Social Security Act; and

`(ii) in making a determination under clause (i), utilize the criteria of poverty used by the Bureau of the Census in compiling the most recent decennial census for a family of 4 in such form as those criteria have been updated by increases in the Consumer Price Index for all urban consumers, published by the Bureau of Labor Statistics.

`(B) CASELOAD DATA- The Secretary shall determine the number of children described in subparagraph (A) and the number of children ages 5 to 17, inclusive, 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 year preceding the fiscal year for which the determination is being made (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. 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.

`(C) COLLECTION AND TRANSMISSION OF DATA- 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.

`(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 in each school district, and the Secretary may 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 total amount of grants awarded under this section; or

`(2) the average of--

`(A) one-quarter of 1 percent of the total amount available for such fiscal year under this section; 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. 119. CONCENTRATION GRANTS.

Section 1124A (20 U.S.C. 6334) is amended to read as follows:

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

`(a) ELIGIBILITY FOR AND AMOUNT OF GRANTS-

`(1) ELIGIBILITY-

`(A) IN GENERAL- Except as otherwise provided in this paragraph, each local educational agency in a State other than Guam, American Samoa, the Virgin Islands, and the Commonwealth of the Northern Mariana Islands, that is eligible for a grant under section 1124 for any fiscal year shall be eligible for an additional grant under this section for that fiscal year if the number of children counted under section 1124(c) with respect to the agency exceeds--

`(i) 6,500; or

`(ii) 15 percent of the total number of children ages 5 through 17, inclusive, in the agency.

`(B) MINIMUM AMOUNT- Notwithstanding section 1122, no State described in subparagraph (A) shall receive an amount under this section that is less than the lesser of--

`(i) 0.25 percent of the total amount of grants awarded under this section; or

`(ii) the average of--

`(I) one-quarter of 1 percent of the amounts made available to carry out this section for such fiscal year; 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) SPECIAL RULE- For each 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 quotient resulting from the division of the amount determined for those agencies under section 1124(a)(1) for the fiscal year for which the determination is being made divided by the total number of children counted under section 1124(c) for that agency for that fiscal year.

`(3) AMOUNT- The amount of an additional grant for which an eligible local educational agency is eligible under this section for any fiscal year shall be an amount that 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 product for all local educational agencies in the United States for that fiscal year.

`(4) LOCAL ALLOCATIONS- Grant amounts under this section shall be determined in accordance with section 1124(a)(2) and (3).

`(b) STATES RECEIVING MINIMUM GRANTS- With respect to a State that receives a grant for the minimum amount under subsection (a)(1)(B), the State educational agency shall allocate such amount among the local educational agencies in each 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. 120. TARGETED GRANTS.

Section 1125 (20 U.S.C 6335) is amended to read as follows:

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

`(a) ELIGIBILITY OF LOCAL EDUCATIONAL AGENCIES- A local educational agency in a State shall be eligible to receive a targeted grant under this section for any fiscal year if the number of children in the local educational agency counted under subsection 1124(c), before the application of the weighting factor described in subsection (c), is at least 10, and if the number of children counted for grants under section 1124 is at least 5 percent of the total population age 5 to 17 years, inclusive, in the local educational agency.

`(b) GRANTS FOR LOCAL EDUCATIONAL AGENCIES, THE DISTRICT OF COLUMBIA, AND PUERTO RICO-

`(1) IN GENERAL- The amount of a grant that a local educational agency in a State or that the District of Columbia is eligible to receive under this section for any fiscal year shall be equal to 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 for which 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 Puerto Rico, multiplied by the amount determined under section 1124(a)(4).

`(c) WEIGHTED CHILD COUNT-

`(1) IN GENERAL- For each fiscal year, the weighted child count used to determine a local educational agency's grant under this section shall be equal to the sum of--

`(A) the number of children determined under section 1124(c) for that local educational agency constituting up to 14.265 percent, inclusive, of the agency's total population ages 5 to 17, inclusive, multiplied by 1.0;

`(B) the number of such children constituting more than 14.265 percent, but not more than 21.553 percent, of such population, multiplied by 1.75;

`(C) the number of such children constituting more than 21.553 percent, but not more than 29.223 percent, of such population, multiplied by 2.5;

`(D) the number of such children constituting more than 29.223 percent, but not more than 36.538 percent, of such population, multiplied by 3.25; and

`(E) the number of such children constituting more than 36.538 percent of such population, multiplied by 4.0.

`(2) PUERTO RICO- Notwithstanding subparagraph (A), the weighted child count for Puerto Rico under this paragraph shall not be greater than the total number of children counted under section 1124(c) multiplied by 1.72.

`(d) CALCULATION OF GRANT AMOUNTS- Grants under this section shall be calculated in accordance with section 1124(a)(2) and (3).

`(e) STATE MINIMUM- Notwithstanding any other provision of this section or section 1122, from the total amount made available for any fiscal year to carry out this section, each State shall be allotted at least the lesser of--

`(1) 0.25 percent of the total amount of grants awarded under this section; or

`(2) the average of--

`(A) one-quarter of 1 percent of the total amount available for such fiscal year to carry out this section; and

`(B) 150 percent of the national average grant under this section per child described in section 1124(c), without application of a weighting factor, multiplied by the State's total number of children described in section 1124(c), without application of a weighting factor.'.

SEC. 121. SPECIAL ALLOCATION PROCEDURES.

Section 1126 (20 U.S.C. 6337) is amended to read as follows:

`SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

`(a) ALLOCATIONS FOR NEGLECTED CHILDREN-

`(1) IN GENERAL- If a State educational agency determines that a local educational agency in the State is unable or unwilling to provide for the special educational needs of children who are living in institutions for neglected children as described in subparagraph (B) of section 1124(c)(1), 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, and 1125 that is attributable to such children.

`(2) SPECIAL RULE- If the State educational agency does not assume the responsibility described in paragraph (1), 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, and 1125 among the affected local educational agencies--

`(1) if 2 or more local educational agencies serve, in whole or in part, the same geographical area;

`(2) if a local educational agency provides free public education for children who reside in the school district of another local educational agency; or

`(3) to reflect the merger, creation, or change of boundaries of 1 or more local educational agencies.

`(c) REALLOCATION- If a State educational agency determines that the amount of a grant that a local educational agency would receive under sections 1124, 1124A, and 1125 is more than such local 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.'.

PART B--EVEN START FAMILY LITERACY PROGRAMS

SEC. 131. PROGRAM AUTHORIZED.

Section 1202(c) (20 U.S.C. 6362(c)) is amended--

(1) in paragraph (1), by striking `section 2260(b)(3)' and inserting `section 7005(c)';

(2) by striking paragraph (2)(C); and

(3) in paragraph (3)--

(A) by striking `is defined' and inserting `was defined'; and

(B) by inserting `as such section was in effect on the day preceding the date of enactment of the Education Reinvestment Act' after `2252'.

SEC. 132. APPLICATIONS.

Section 1207(c)(1)(F) (20 U.S.C. 6367(c)(1)(F)) is amended by striking `the Goals 2000' and all that follows through the period and inserting `or other Acts, as appropriate, consistent with section 8305.'.

SEC. 133. RESEARCH.

Section 1211(b) (20 U.S.C. 6396b(b)) is amended to read as follows:

`(b) DISSEMINATION- The Secretary shall disseminate, or designate another entity to disseminate, the results of the research described in subsection (a) to States and recipients of subgrants under this part.'.

PART C--EDUCATION OF MIGRATORY CHILDREN

SEC. 141. COMPREHENSIVE NEEDS ASSESSMENT AND SERVICE-DELIVERY PLAN; AUTHORIZED ACTIVITIES.

Section 1306(a)(1) (20 U.S.C. 6369(a)(1)) is amended--

(1) in subparagraph (A), by striking `the Goals 2000' and all that follows through the period and inserting `or other Acts, as appropriate, consistent with section 8305;';

(2) in subparagraph (B), by striking `section 14302' and inserting `section 8302'; and

(3) in subparagraph (F), by striking `bilingual education' and all that follows and inserting `language instruction programs under title III; and'.

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

SEC. 151. STATE PLAN AND STATE AGENCY APPLICATIONS.

Section 1414 (20 U.S.C. 6434) is amended--

(1) in subsection (a)(1), by striking `the Goals 2000' and all that follows through the period and inserting `or other Acts, as appropriate, consistent with section 8305.'; and

(2) in subsection (c)--

(A) in paragraph (6), by striking `section 14701' and inserting `section 8701'; and

(B) in paragraph (7), by striking `section 14501' and inserting `section 8501'.

SEC. 152. USE OF FUNDS.

Section 1415(a)(2)(D) (20 U.S.C. 6435(a)(2)(D)) is amended by striking `section 14701' and inserting `section 8701'.

PART E--FEDERAL EVALUATIONS, DEMONSTRATIONS, AND TRANSITION PROJECTS

SEC. 161. EVALUATIONS.

Section 1501 (20 U.S.C. 6491) is amended--

(1) in subsection (a)(4)--

(A) by striking `January 1, 1996' and inserting `January 1, 2002'; and

(B) by striking `January 1, 1999' and inserting `January 1, 2005';

(2) in subsection (b)(1), by striking `December 31, 1997' and inserting `December 31, 2003'; and

(3) in subsection (e)(2), by striking `December 31, 1996' and inserting `December 31, 2002'.

SEC. 162. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

Section 1502 (20 U.S.C. 6492) is amended to read as follows:

`SEC. 1502. COMPREHENSIVE SCHOOL REFORM.

`(a) FINDINGS AND PURPOSE-

`(1) FINDINGS- Congress finds the following:

`(A) A number of schools across the country have shown impressive gains in student performance through the use of comprehensive models for schoolwide change that incorporate virtually all aspects of school operations.

`(B) No single comprehensive school reform model may be suitable for every school, however, schools should be encouraged to examine successful, externally developed comprehensive school reform approaches as they undertake comprehensive school reform.

`(C) Comprehensive school reform is an important means by which children are assisted in meeting challenging State student performance standards.

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

`(b) PROGRAM AUTHORIZED-

`(1) IN GENERAL- The Secretary is authorized to provide grants to State educational agencies to provide subgrants to local educational agencies to carry out the purpose described in subsection (a)(2).

`(2) ALLOCATION-

`(A) RESERVATION- Of the amount appropriated under this section, the Secretary may reserve--

`(i) not more than 1 percent for schools supported by the Bureau of Indian Affairs and in the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands; and

`(ii) not more than 1 percent to conduct national evaluation activities described under subsection (e).

`(B) IN GENERAL- Of the amount of funds remaining after the reservation under subparagraph (A), the Secretary shall allocate to each State for a fiscal year, an amount that bears the same ratio to the amount appropriated for that fiscal year as the amount made available under section 1124 to the State for the preceding fiscal year bears to the total amount allocated under section 1124 to all States for that year.

`(C) REALLOCATION- If a State does not apply for funds under this section, the Secretary shall reallocate such funds to other States that do apply in proportion to the amount allocated to such States under subparagraph (B).

`(c) STATE AWARDS-

`(1) STATE APPLICATION-

`(A) IN GENERAL- Each State educational agency that desires to receive a grant under this section shall submit an application to the Secretary at such time, in such manner and containing such other information as the Secretary may reasonably require.

`(B) CONTENTS- Each State application shall also describe--

`(i) the process and selection criteria by which the State educational agency, using expert review, will select local educational agencies to receive subgrants under this section;

`(ii) how the agency will ensure that only comprehensive school reforms that are based on scientifically based research receive funds under this section;

`(iii) how the agency will disseminate materials regarding information on comprehensive school reforms that are based on scientifically based research;

`(iv) how the agency will evaluate the implementation of such reforms and measure the extent to which the reforms resulted in increased student academic performance; and

`(v) how the agency will provide, upon request, technical assistance to the local educational agency in evaluating, developing, and implementing comprehensive school reform.

`(2) USES OF FUNDS-

`(A) IN GENERAL- Except as provided in subparagraph (E), a State educational agency that receives an award under this section shall use such funds to provide competitive grants to local educational agencies receiving funds under part A.

`(B) GRANT REQUIREMENTS- A grant to a local educational agency shall be--

`(i) of sufficient size and scope to support the initial costs for the particular comprehensive school reform plan selected or designed by each school identified in the application of the local educational agency;

`(ii) in an amount not less than $50,000 to each participating school; and

`(iii) renewable for two additional 1-year periods after the initial 1-year grant is made if schools are making substantial progress in the implementation of their reforms.

`(C) PRIORITY- The State, in awarding grants under this paragraph, shall give priority to local educational agencies that--

`(i) plan to use the funds in schools identified as being in need of improvement or corrective action under section 1116(c); and

`(ii) demonstrate a commitment to assist schools with budget allocation, professional development, and other strategies necessary to ensure the comprehensive school reforms are properly implemented and are sustained in the future.

`(D) GRANT CONSIDERATION- In making subgrant awards under this part, the State educational agency shall take into account the equitable distribution of awards to different geographic regions within the State, including urban and rural areas, and to schools serving elementary and secondary students.

`(E) ADMINISTRATIVE COSTS- A State educational agency that receives a grant award under this section may reserve not more than 5 percent of such award for administrative, evaluation, and technical assistance expenses.

`(F) SUPPLEMENT- Funds made available under this section shall be used to supplement, not supplant, any other Federal, State, or local funds that would otherwise be available to carry out this section.

`(3) REPORTING- Each State educational agency that receives an award under this section shall provide to the Secretary such information as the Secretary may require, including the names of local educational agencies and schools selected to receive subgrant awards under this section, the amount of such award, and a description of the comprehensive school reform model selected and in use.

`(d) LOCAL AWARDS-

`(1) IN GENERAL- Each local educational agency that applies for a subgrant under this section shall--

`(A) identify which schools eligible for funds under part A plan to implement a comprehensive school reform program, including the projected costs of such a program;

`(B) describe the scientifically based comprehensive school reforms that such schools will implement;

`(C) describe how the agency will provide technical assistance and support for the effective implementation of the scientifically based school reforms selected by such schools; and

`(D) describe how the agency will evaluate the implementation of such reforms and measure the results achieved in improving student academic performance.

`(2) COMPONENTS OF THE PROGRAM- A local educational agency that receives a subgrant award under this section shall provide such funds to schools that implement a comprehensive school reform program that--

`(A) employs innovative strategies and proven methods for student learning, teaching, and school management that are based on scientifically based research and effective practices and have been replicated successfully in schools with diverse characteristics;

`(B) integrates a comprehensive design for effective school functioning, including instruction, assessment, classroom management, professional development, parental involvement, and school management, that aligns the school's curriculum, technology, professional development into a comprehensive reform plan for schoolwide change designed to enable all students to meet challenging State content and challenging student performance standards and addresses needs identified through a school needs assessment;

`(C) provides high-quality and continuous teacher and staff professional development;

`(D) includes measurable goals for student performance and benchmarks for meeting such goals;

`(E) is supported by teachers, principals, administrators, and other professional staff;

`(F) provides for the meaningful involvement of parents and the local community in planning and implementing school improvement activities;

`(G) uses high quality external technical support and assistance from an entity, which may be an institution of higher education, with experience and expertise in schoolwide reform and improvement;

`(H) includes a plan for the evaluation of the implementation of school reforms and the student results achieved; and

`(I) identifies how other resources, including Federal, State, local, and private resources, available to the school will be used to coordinate services to support and sustain the school reform effort.

`(3) SPECIAL RULE- A school that receives funds to develop a comprehensive school reform program shall not be limited to using the approaches identified or developed by the Department of Education, but may develop its own comprehensive school reform programs for schoolwide change that comply with paragraph (2).

`(e) EVALUATION AND REPORT-

`(1) IN GENERAL- The Secretary shall develop a plan for a national evaluation of the programs developed pursuant to this section.

`(2) EVALUATION- This national evaluation shall evaluate the implementation and results achieved by schools after 3 years of implementing comprehensive school reforms, and assess the effectiveness of comprehensive school reforms in schools with diverse characteristics.

`(3) REPORTS- Prior to the completion of a national evaluation, the Secretary shall submit an interim report outlining first year implementation activities to the Committees on Education and the Workforce and Appropriations of the House of Representatives and the Committees on Health, Education, Labor, and Pensions and Appropriations of the Senate.

`(f) DEFINITION- The term `scientifically based research'--

`(1) means the application of rigorous, systematic, and objective procedures in the development of comprehensive school reform models; and

`(2) shall include research that--

`(A) employs systematic, empirical methods that draw on observation or experiment;

`(B) involves rigorous data analyses that are adequate to test the stated hypotheses and justify the general conclusions drawn;

`(C) relies on measurements or observational methods that provide valid data across evaluators and observers and across multiple measurements and observations; and

`(D) has been accepted by a peer-reviewed journal or approved by a panel of independent experts through a comparably rigorous, objective, and scientific review.

`(g) AUTHORIZATION OF APPROPRIATIONS- Funds appropriated for any fiscal year under section 1002(f) shall be used for carrying out the activities under this section.'.

PART F--RURAL EDUCATION DEVELOPMENT INITIATIVE

SEC. 171. RURAL EDUCATION DEVELOPMENT INITIATIVE.

Title I (20 U.S.C. 6301 et seq.) is amended--

(1) by redesignating part F (20 U.S.C. 6511 et seq.) as part G;

(2) by redesignating sections 1601 through 1604 (20 U.S.C. 6511, 6514) as sections 1701 through 1704, respectively, and by redesignating accordingly the references to such sections in part G (as so redesignated); and

(3) by inserting after part E (20 U.S.C. 6491 et seq.) the following:

`PART F--RURAL EDUCATION DEVELOPMENT INITIATIVE

`SEC. 1601. FINDINGS.

`Congress makes the following findings:

`(1) The National Center for Educational Statistics reports that 46 percent of our Nation's public elementary schools and secondary schools serve rural areas.

`(2) While there are rural education initiatives identified at the State and local level, no Federal education policy focuses on the specific and unique needs of rural school districts and schools, especially those that serve poor students.

`(3) A critical problem for rural school districts involves the hiring and retention of qualified administrators and certified teachers, especially in science and mathematics. Consequently, teachers in rural schools are almost twice as likely to provide instruction in 3 or more subject areas than teachers in urban schools. Rural schools also face other tough challenges, such as shrinking local tax bases, high transportation costs, aging buildings, limited course offerings, and limited resources.

`(4) Data from the National Assessment of Educational Progress (NAEP) consistently shows large gaps between the achievement of students in high poverty schools and those in other schools. High-poverty schools will face special challenges in preparing their students to reach high standards of performance on State and national assessments.

`SEC. 1602. DEFINITIONS.

`In this part:

`(1) ELIGIBLE LOCAL EDUCATIONAL AGENCY- The term `eligible local educational agency' means a local educational agency that serves--

`(A) a school-age population, not less than 15 percent of which consists of students from families with incomes below the poverty line; and

`(B)(i) a rural locality; or

`(ii) a school-age population of not more than 800 students.

`(2) METROPOLITAN AREA- The term `metropolitan area' means an area defined as such by the Secretary of Commerce.

`(3) POVERTY LINE- The term `poverty line' means the poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2))) applicable to a family of the size involved.

`(4) RURAL LOCALITY- The term `rural locality' means a locality that is not within a metropolitan area.

`(5) STATE- The term `State' means each of the several States of the United States, the District of Columbia, and the Commonwealth of Puerto Rico.

`(6) SCHOOL AGE POPULATION- The term `school age population' means the number of students aged 5 through 17.

`SEC. 1603. PROGRAM AUTHORIZED.

`(a) GRANTS AUTHORIZED- The Secretary shall award grants, from allotments under subsection (b)(2), to each State having an application approved under section 1604 to enable the State educational agency to award grants to eligible local educational agencies to carry out local authorized activities described in section 1605(b).

`(b) RESERVATION AND ALLOTMENTS-

`(1) RESERVATION- From amounts appropriated under section 1608 for each fiscal year, the Secretary shall reserve 1/2 of 1 percent of such amount for payments to the Secretary of the Interior for activities approved by the Secretary, consistent with this subpart, in elementary schools and secondary schools operated or supported by the Bureau of Indian Affairs, on the basis of their respective needs for assistance under this part.

`(2) ALLOTMENTS-

`(A) IN GENERAL- From the amounts appropriated under section 1608 for each fiscal year that remain after making the reservation under paragraph (1), the Secretary shall allot to each State having an application approved under section 1604 an amount that bears the same relationship to the remainder as the school age population served by eligible local educational agencies in the State bears to the school age population served by eligible local educational agencies in all States.

`(B) DATA- In determining the school age population under subparagraph (A), the Secretary shall use the most recent data available from the Bureau of the Census.

`(c) DIRECT AWARDS TO ELIGIBLE LOCAL EDUCATIONAL AGENCIES-

`(1) NONPARTICIPATING STATE- If a State educational agency for a fiscal year elects not to participate in a program under this section, or does not have an application approved under section 1604, an eligible local educational agency in such State desiring a grant under this part for the fiscal year shall apply directly to the Secretary to receive a grant under this subsection.

`(2) DIRECT AWARDS- The Secretary may award, on a competitive basis, the amount the State educational agency is eligible to receive under subsection (b)(2) directly to eligible local educational agencies in the State desiring a grant under paragraph (1).

`(3) ADMINISTRATIVE FUNDS- An eligible local educational agency that receives a direct grant under this subsection may use not more than 1 percent of the grant funds for the administrative costs of carrying out this part in the first year the agency receives a grant under this subsection and 0.5 percent for such costs in the second and each succeeding such year.

`(d) RELATION TO OTHER FEDERAL FUNDING- Funds received under this part by a State educational agency or an eligible local educational agency shall not be taken into consideration in determining the eligibility for, or amount of, any other Federal funding awarded to such agencies.

`SEC. 1604. APPLICATIONS.

`(a) IN GENERAL- Each State educational agency desiring a grant under section 1603 and eligible local educational agency desiring a grant under section 1603(c) shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may require.

`(b) CONTENTS- Each application submitted under subsection (a) shall--

`(1) specify annual, measurable performance goals and objectives, at a minimum, with respect to--

`(A) increased student academic achievement;

`(B) decreased gaps in achievement between minority and non-minority students, and between economically disadvantaged and non-economically disadvantaged students; and

`(C) other factors that the State educational agency or eligible local educational agency may choose to measure;

`(2) describe how the State educational agency or eligible local educational agency will hold local educational agencies and elementary schools or secondary schools receiving funds under this part accountable for meeting the annual, measurable goals and objectives;

`(3) describe how the State educational agency or eligible local educational agency will provide technical assistance for a local educational agency, an elementary school, or a secondary school that does not meet the annual, measurable goals and objectives; and

`(4) describe how the State educational agency or eligible local educational agency will take action against a local educational agency, an elementary school, or a secondary school, if the local educational agency or school fails, over 2 consecutive years, to meet the annual, measurable goals and objectives.

`SEC. 1605. WITHIN-STATE ALLOCATIONS.

`(a) ALLOCATIONS- A State educational agency shall award grants under this part to eligible local educational agencies within the State according to a formula developed by the State educational agency and approved by the Secretary.

`(b) USES OF FUNDS- Grant funds awarded to eligible local educational agencies or made available to elementary schools and secondary schools under this section shall be used for--

`(1) educational technology, including software and hardware;

`(2) professional development;

`(3) technical assistance;

`(4) recruitment and retention of fully qualified teachers, as defined in title II, and highly qualified principals;

`(5) parental involvement activities; or

`(6) academic enrichment or other education programs.

`(c) RESERVATION OF ADMINISTRATIVE FUNDS-

`(1) FIRST YEAR- For the first year that a State educational agency receives a grant under this part, the agency--

`(A) shall use not less than 99 percent of the grant funds to award grants to eligible local educational agencies in the State; and

`(B) may use not more than 1 percent for State activities and the administrative costs of carrying out this part.

`(2) SUCCEEDING YEARS- For the second and each succeeding year that a State educational agency receives a grant under this part, the agency--

`(A) shall use not less than 99.5 percent of the grant funds to award grants to eligible local educational agencies in the State; and

`(B) may use not more than 0.5 percent of the grant funds for State activities and the administrative costs of carrying out this part.

`SEC. 1606. ACCOUNTABILITY.

The Secretary, at the end of the third year that a State educational agency or an eligible local educational agency receiving a direct award under section 1603(c) participates in the program under this part, shall permit only those State educational agencies and eligible local educational agencies that meet their annual, measurable goals and objectives for 2 consecutive years to receive grant funds for the fourth or fifth fiscal years of the program under this part.

`SEC. 1607. REPORTS.

`(a) STATE REPORTS- Each State educational agency that receives a grant under this part shall provide an annual report to the Secretary. The report shall describe--

`(1) the method the State educational agency used to award grants to eligible local educational agencies and to provide assistance to elementary schools and secondary schools under this part;

`(2) how eligible local educational agencies and elementary schools and secondary schools within the State used the grant funds provided under this part; and

`(3) the degree to which progress has been made toward meeting the annual, measurable goals and objectives described in the State application.

`(b) REPORTS FROM ELIGIBLE LOCAL EDUCATIONAL AGENCIES- Each eligible local educational agency receiving a grant under section 1603(c) shall provide an annual report to the Secretary. Such report shall describe--

`(1) how such agency used the grant funds provided under this part;

`(2) the degree to which progress has been made toward meeting the annual, measurable goals and objectives described in the eligible local educational agency's application; and

`(3) how the local educational agency coordinated funds received under this part with other Federal, State, and local funds.

`(c) REPORT TO CONGRESS- The Secretary shall prepare and submit to Congress an annual report setting forth the information provided to the Secretary pursuant to subsections (a) and (b).

`(d) STUDY- The Comptroller General of the United States shall conduct a study regarding the impact of assistance provided under this part on student achievement, and shall submit such study to Congress.

`SEC. 1608. AUTHORIZATION OF APPROPRIATIONS.

`There are authorized to be appropriated to carry out this part $200,000,000 for fiscal year 2001 and such sums as may be necessary for each of the 4 succeeding fiscal years.'.

PART G--GENERAL PROVISIONS

SEC. 181. FEDERAL REGULATIONS.

Section 1701(b)(4) (20 U.S.C. 6511(b)(4)) (as redesignated by section 161(2)) is amended by striking `July 1, 1995' and inserting `May 1, 2000'.

SEC. 182. STATE ADMINISTRATION.

Section 1703 (20 U.S.C. 6513) (as redesignated by section 161(2)) is amended by striking subsection (c).

TITLE II--TEACHER AND PRINCIPAL QUALITY, PROFESSIONAL DEVELOPMENT, AND CLASS SIZE

SEC. 201. TEACHER AND PRINCIPAL QUALITY, PROFESSIONAL DEVELOPMENT, AND CLASS SIZE.

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

`TITLE II--TEACHER AND PRINCIPAL QUALITY, PROFESSIONAL DEVELOPMENT, AND CLASS SIZE

`SEC. 2001. PURPOSE.

`The purpose of this title is to provide grants to State educational agencies and local educational agencies in order to assist their efforts to increase student academic achievement through such strategies as improving teacher and principal quality, increasing professional development, and decreasing class size.

`SEC. 2002. DEFINITIONS.

`In this title:

`(1) FULLY QUALIFIED- The term `fully qualified' means--

`(A) in the case of an elementary school teacher (other than a teacher teaching in a public charter school), a teacher who, at a minimum--

`(i) has obtained State certification (which may include certification obtained through alternative means), or a State license, to teach in the State in which the teacher teaches;

`(ii) holds a bachelor's degree from an institution of higher education; and

`(iii) demonstrates subject matter knowledge, teaching knowledge, and the teaching skills required to teach effectively reading, writing, mathematics, science, social studies, and other elements of a liberal arts education; and

`(B) in the case of a secondary school teacher (other than a teacher teaching in a public charter school), a teacher who, at a minimum--

`(i) has obtained State certification (which may include certification obtained through alternative means), or a State license, to teach in the State in which the teacher teaches;

`(ii) holds a bachelor's degree from an institution of higher education; and

`(iii) demonstrates a high level of competence in all subject areas in which the teacher teaches through--

`(I) completion of an academic major (or courses totaling an equivalent number of credit hours) in each of the subject areas in which the teacher provides instruction;

`(II) achievement of a high level of performance in other professional employment experience in subject areas relevant to the subject areas in which the teacher provides instruction; or

`(III) achievement of a high level of performance on rigorous academic subject area tests administered by the State in which the teacher teaches.

`(2) INSTITUTION OF HIGHER EDUCATION- The term `institution of higher education' means an institution of higher education, as defined in section 101 of the Higher Education Act of 1965, that--

`(A) has not been identified as low performing under section 208 of the Higher Education Act of 1965; and

`(B) is in full compliance with the public reporting requirements described in section 207 of the Higher Education Act of 1965.

`(3) OUTLYING AREA- The term `outlying area' means the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

`(4) POVERTY LINE- The term `poverty line' means the poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Community Services Block Grant Act) applicable to a family of the size involved, for the most recent year.

`(5) SCHOOL-AGE POPULATION- The term `school-age population' means the population aged 5 through 17, as determined on the basis of the most recent satisfactory data.

`(6) STATE- The term `State' means each of the several States in the United States, the District of Columbia, and the Commonwealth of Puerto Rico.

`PART A--TEACHER AND PRINCIPAL QUALITY AND PROFESSIONAL DEVELOPMENT

`SEC. 2011. PROGRAM AUTHORIZED.

`(a) GRANTS AUTHORIZED- The Secretary shall award a grant, from allotments made under subsection (b), to each State having a State plan approved under section 2013, to enable the State to raise the quality of, and provide professional development opportunities for, public elementary school and secondary school teachers, principals, and administrators.

`(b) RESERVATIONS AND ALLOTMENTS-

`(1) RESERVATIONS- From the amount appropriated under section 2023 to carry out this part for each fiscal year, the Secretary shall reserve--

`(A) 1/2 of 1 percent of such amount for payments to the Bureau of Indian Affairs for activities, approved by the Secretary, consistent with this part;

`(B) 1/2 of 1 percent of such amount for payments to outlying areas, to be allotted in accordance with their respective needs as determined by the Secretary, for activities, approved by the Secretary, consistent with this part; and

`(C) such sums as may be necessary to continue to support any multiyear partnership program award made under parts A, C, and D (as such parts were in effect on the day preceding the date of enactment of the Education Reinvestment Act) until the termination of the multiyear award.

`(2) STATE ALLOTMENTS- From the amount appropriated under section 2023 for a fiscal year and remaining after the Secretary makes reservations under paragraph (1), the Secretary shall allot to each State having a State plan approved under section 2013 the sum of--

`(A) an amount that bears the same relationship to 50 percent of the remainder as the school-age population from families with incomes below the poverty line in the State bears to the school-age population from families with incomes below the poverty line in all States; and

`(B) an amount that bears the same relationship to 50 percent of the remainder as the school-age population in the State bears to the school-age population in all States.

`(c) STATE MINIMUM- For any fiscal year, no State shall be allotted under this section an amount that is less than 1/2 of 1 percent of the total amount allotted to all States under subsection (b)(2).

`(d) HOLD-HARMLESS AMOUNTS- For fiscal year 2001, notwithstanding subsection (b)(2), the amount allotted to each State under this section shall be not less than 100 percent of the total amount the State was allotted under part B (as such part was in effect on the day preceding the date of enactment of the Education Reinvestment Act) for the preceding fiscal year.

`(e) RATABLE REDUCTIONS- If the sums made available under subsection (b)(2) for any fiscal year are insufficient to pay the full amounts that all States are eligible to receive under subsection (d) for such year, the Secretary shall ratably reduce such amounts for such year.

`SEC. 2012. WITHIN STATE ALLOCATION.

`(a) IN GENERAL- Each State educational agency for a State receiving a grant under section 2011(a) shall--

`(1) set aside 10 percent of the grant funds to award educator partnership grants under section 2021;

`(2) set aside not more than 5 percent of the grant funds to carry out activities described the State plan submitted under section 2013; and

`(3) using the remaining 85 percent of the grant funds, make subgrants by allocating to each local educational agency in the State the sum of--

`(A) an amount that bears the same relationship to 60 percent of the remainder as the school-age population from families with incomes below the poverty line in the area served by the local educational agency bears to the school-age population from families with incomes below the poverty line in the area served by all local educational agencies in the State; and

`(B) an amount that bears the same relationship to 40 percent of the remainder as the school-age population in the area served by the local educational agency bears to the school-age population in the area served by all local educational agencies in the State.

`(b) HOLD-HARMLESS AMOUNTS-

`(1) FISCAL YEAR 2001- For fiscal year 2001, notwithstanding subsection (a), the amount allocated to each local educational agency under this section shall be not less than 100 percent of the total amount the local educational agency was allocated under this title (as in effect on the day preceding the date of enactment of the Education Reinvestment Act) for fiscal year 2000.

`(2) FISCAL YEAR 2002- For fiscal year 2002, notwithstanding subsection (a), the amount allocated to each local educational agency under this section shall be not less than 85 percent of the amount allocated to the local educational agency under this section for fiscal year 2001.

`(3) FISCAL YEARS 2003-2005- For each of fiscal years 2003 through 2005, notwithstanding subsection (a), the amount allocated to each local educational agency under this section shall be not less than 70 percent of the amount allocated to the local educational agency under this section for the previous fiscal year.

`(c) RATABLE REDUCTIONS- If the sums made available under subsection (a)(3) for any fiscal year are insufficient to pay the full amounts that all local educational agencies are eligible to receive under subsection (b) for such year, the State educational agency shall ratably reduce such amounts for such year.

`SEC. 2013. STATE PLANS.

`(a) PLAN REQUIRED-

`(1) COMPREHENSIVE STATE PLAN- The entity or agency responsible for teacher certification or licensing under the laws of the State desiring a grant under this part shall submit a State plan to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may require. If the State educational agency is not the entity or agency designated under the laws of the State as responsible for teacher certification or licensing in the State, then the plan shall be developed in consultation with the State educational agency. The entity or agency shall provide annual evidence of such consultation to the Secretary.

`(2) CONSOLIDATED PLAN- A State plan submitted under paragraph (1) may be submitted as part of a consolidated plan under section 8302.

`(b) CONTENTS- Each plan submitted under subsection (a) shall--

`(1) describe how the State is taking reasonable steps to--

`(A) reform teacher certification, recertification, or licensure requirements to ensure that--

`(i) teachers have the necessary teaching skills and academic content knowledge in the academic subjects in which the teachers are assigned to teach;

`(ii) such requirements are aligned with the challenging State content standards;

`(iii) teachers have the knowledge and skills necessary to help students meet the challenging State student performance standards;

`(iv) such requirements take into account the need, as determined by the State, for greater access to, and participation in, the teaching profession by individuals from historically underrepresented groups; and

`(v) teachers have the necessary technological skills to integrate more effectively technology in the teaching of content required by State and local standards in all academic subjects in which the teachers provide instruction;

`(B) develop and implement rigorous testing procedures for teachers, as required in section 2002(1)(A), to ensure that new teachers have teaching skills and academic content knowledge necessary to teach effectively the content called for by State and local standards in all academic subjects in which the teachers provide instruction;

`(C) establish, expand, or improve alternative routes to State certification of teachers, especially in the areas of mathematics and science, for highly qualified individuals with a baccalaureate degree, including mid-career professionals form other occupations, paraprofessionals, former military personnel, and recent college or university graduates who have records of academic distinction and who demonstrate the potential to become highly effective teachers;

`(D) reduce emergency teacher certification;

`(E) develop and implement effective programs, and provide financial assistance, to assist local educational agencies, elementary schools, and secondary schools in effectively recruiting and retaining fully qualified teachers and principals, particularly in schools that have the lowest proportion of fully qualified teachers or the highest proportion of low-performing students;

`(F) provide professional development programs that meet the requirements described in section 2019;

`(G) provide programs that are designed to assist new teachers during their first 3 years of teaching, such as mentoring programs that--

`(i) provide mentoring to new teachers from veteran teachers with expertise in the same subject matter as the new teachers are teaching;

`(ii) provide mentors time for activities such as coaching, observing, and assisting teachers who are being mentored; and

`(iii) use standards or assessments that are consistent with the State's student performance standards and the requirements for professional development activities described in section 2019 in order to guide the new teachers;

`(H) provide technical assistance to local educational agencies in developing and implementing activities described in section 2018; and

`(I) ensure that programs in core academic subjects, particularly in mathematics and science, will take into account the need for greater access to, and participation in, such core academic subjects by students from historically underrepresented groups, including females, minorities, individuals with limited English proficiency, the economically disadvantaged, and individuals with disabilities, by incorporating pedagogical strategies and techniques that meet such students' educational needs;

`(2) describe the activities for which assistance is sought under the grant, and how such activities will improve students' academic achievement and close academic achievement gaps of low-income, minority, and limited English proficient students;

`(3) describe how the State will establish annual numerical performance objectives under section 2014 for improving the qualifications of teachers and the professional development of teachers, principals, and administrators;

`(4) contain an assurance that the State consulted with local educational agencies, education-related community groups, nonprofit organizations, parents, teachers, school administrators, local school boards, institutions of higher education in the State, and content specialists in establishing the performance objectives described in section 2014;

`(5) describe how the State will hold local educational agencies, elementary schools, and secondary schools accountable for meeting the performance objectives described in section 2014 and for reporting annually on the local educational agencies' and schools' progress in meeting the performance objectives;

`(6) describe how the State will ensure that a local educational agency receiving a subgrant under section 2012 will comply with the requirements of this part;

`(7) provide an assurance that the State will require each local educational agency, elementary school, or secondary school receiving funds under this part to report publicly the local educational agency's or school's annual progress with respect to the performance objectives described in section 2014; and

`(8) describe how the State will coordinate professional development activities authorized under this part with professional development activities provided under other Federal, State, and local programs, including programs authorized under titles I and III and, where appropriate, the Individuals with Disabilities Education Act and the Carl D. Perkins Vocational and Technical Education Act of 1998.

`(c) SECRETARY APPROVAL- The Secretary shall, using a peer review process, approve a State plan if the plan meets the requirements of this section.

`(d) DURATION OF THE PLAN-

`(1) IN GENERAL- Each State plan shall--

`(A) remain in effect for the duration of the State's participation under this part; and

`(B) be periodically reviewed and revised by the State, as necessary, to reflect changes to the State's strategies and programs carried out under this part.

`(2) ADDITIONAL INFORMATION- If a State receiving a grant under this part makes significant changes to the State plan, such as the adoption of new performance objectives, the State shall submit information regarding the significant changes to the Secretary.

`SEC. 2014. PERFORMANCE OBJECTIVES.

`(a) IN GENERAL- Each State receiving a grant under this part shall establish annual numerical performance objectives with respect to progress in improving the qualifications of teachers and the professional development of teachers, principals, and administrators. For each annual numerical performance objective established, the State shall specify an incremental percentage increase for the objective to be attained for each of the fiscal years for which the State receives a grant under this part, relative to the preceding fiscal year.

`(b) REQUIRED OBJECTIVES- At a minimum, the annual numerical performance objectives described in subsection (a) shall include an incremental increase in the percentage of--

`(1) classes in core academic subjects that are being taught by fully qualified teachers;

`(2) new teachers and principals receiving professional development support, including mentoring for teachers, during the teachers' first 3 years of teaching;

`(3) teachers, principals, and administrators participating in high quality professional development programs that are consistent with section 2019; and

`(4) fully qualified teachers teaching in the State, to ensure that all teachers teaching in such State are fully qualified by December 31, 2005.

`(c) REQUIREMENT FOR FULLY QUALIFIED TEACHERS- Each State receiving a grant under this part shall ensure that all public elementary school and secondary school teachers in the State are fully qualified not later than December 31, 2005.

`(d) ACCOUNTABILITY-

`(1) IN GENERAL- Each State receiving a grant under this part shall be held accountable for--

`(A) meeting the State's annual numerical performance objectives; and

`(B) meeting the reporting requirements described in section 4401.

`(2) SANCTIONS- Any State that fails to meet the requirement described in paragraph (1)(A) shall be subject to sanctions under section 7001.

`(e) COORDINATION- Each State that receives a grant under this part and a grant under section 202 of the Higher Education Act of 1965 shall coordinate the activities the State carries out under such section 202 with the activities the State carries out under this section.

`SEC. 2015. OPTIONAL ACTIVITIES.

`Each State receiving a grant under section 2011(a) may use the grant funds--

`(1) to develop and implement a system to measure the effectiveness of specific professional development programs and strategies;

`(2) to increase the portability of teacher pensions and reciprocity of teaching certification or licensure among States, except that no reciprocity agreement developed under this section may lead to the weakening of any State teacher certification or licensing requirement;

`(3) to develop or assist local educational agencies in the development and utilization of proven, innovative strategies to deliver intensive professional development programs that are cost effective and easily accessible, such as programs offered through the use of technology and distance learning;

`(4) to provide assistance to local educational agencies for the development and implementation of innovative professional development programs that train teachers to use technology to improve teaching and learning and that are consistent with the requirements of section 2019;

`(5) to provide professional development to enable teachers to ensure that female students, minority students, limited English proficient students, students with disabilities, and economically disadvantaged students have the full opportunity to achieve challenging State content and performance standards in the core academic subjects;

`(6) to increase the number of women, minorities, and individuals with disabilities who teach in the State and who are fully qualified and provide instruction in core academic subjects in which such individuals are underrepresented; and

`(7) to increase the number of highly qualified women, minorities, and individuals from other underrepresented groups who are involved in the administration of elementary schools and secondary schools within the State.

`SEC. 2016. STATE ADMINISTRATIVE EXPENSES.

`Each State receiving a grant under section 2011(a) may use not more than 5 percent of the amount set aside in section 2012(a)(2) for the cost of--

`(1) planning and administering the activities described in section 2013(b); and

`(2) making subgrants to local educational agencies under section 2012.

`SEC. 2017. LOCAL PLANS.

`(a) IN GENERAL- Each local educational agency desiring a grant from the State under section 2012(a)(3) shall submit a local plan to the State educational agency--

`(1) at such time, in such manner, and accompanied by such information as the State educational agency may require; and

`(2) that describes how the local educational agency will coordinate the activities for which assistance is sought under this part with other programs carried out under this Act, or other Acts, as appropriate.

`(b) LOCAL PLAN CONTENTS- The local plan described in subsection (a) shall, at a minimum--

`(1) describe how the local educational agency will use the grant funds to meet the State performance objectives for teacher qualifications and professional development described in section 2014;

`(2) describe how the local educational agency will hold elementary schools and secondary schools accountable for meeting the requirements described in this part;

`(3) contain an assurance that the local educational agency will target funds to elementary schools and secondary schools served by the local educational agency that--

`(A) have the lowest proportion of fully qualified teachers; and

`(B) are identified for school improvement under section 1116;

`(4) describe how the local educational agency will coordinate professional development activities authorized under section 2018(a) with professional development activities provided through other Federal, State, and local programs, including those authorized under titles I and III and, where applicable, the Individuals with Disabilities Education Act and the Carl D. Perkins Vocational and Technical Education Act of 1998; and

`(5) describe how the local educational agency has collaborated with teachers, principals, parents, and administrators in the preparation of the local plan.

`SEC. 2018. LOCAL ACTIVITIES.

`(a) IN GENERAL- Each local educational agency receiving a grant under section 2012(a)(3) shall use the grant funds to--

`(1) support professional development activities, consistent with section 2019, for--

`(A) teachers, in at least the areas of reading, mathematics, and science; and

`(B) teachers, principals, and administrators in order to provide such individuals with the knowledge and skills to provide all students, including female students, minority students, limited English proficient students, students with disabilities, and economically disadvantaged students, with the opportunity to meet challenging State content and student performance standards;

`(2) provide professional development to teachers, principals, and administrators to enhance the use of technology within elementary schools and secondary schools in order to deliver more effective curricula instruction;

`(3) recruit and retain fully qualified teachers and highly qualified principals, particularly for elementary schools and secondary schools located in areas with high percentages of low-performing students and students from families below the poverty line;

`(4) recruit and retain fully qualified teachers and high quality principals to serve in the elementary schools and secondary schools with the highest proportion of low-performing students, such as through--

`(A) mentoring programs for newly hired teachers, including programs provided by master teachers, and for newly hired principals; and

`(B) programs that provide other incentives, including financial incentives, to retain--

`(i) teachers who have a record of success in helping low-performing students improve those students' academic success; and

`(ii) principals who have a record of improving the performance of all students, or significantly narrowing the gaps between minority students and nonminority students, and economically disadvantaged students and noneconomically disadvantaged students, within the elementary schools or secondary schools served by the principals; and

`(5) provide professional development that incorporates effective strategies, techniques, methods, and practices for meeting the educational needs of diverse groups of students, including female students, minority students, students with disabilities, limited English proficient students, and economically disadvantaged students.

`(b) OPTIONAL ACTIVITIES- Each local educational agency receiving a grant under section 2012(a)(3) may use the subgrant funds--

`(1) to provide a signing bonus or other financial incentive, such as differential pay for--

`(A) a teacher to teach in an academic subject for which there exists a shortage of fully qualified teachers within the elementary school or secondary school in which the teacher teaches or within the elementary schools and secondary schools served by the local educational agency; or

`(B) a highly qualified principal in a school in which there is a large percentage of children--

`(i) from low-income families; or

`(ii) with high percentages of low-performance scores on State assessments;

`(2) to establish programs that--

`(A) recruit professionals into teaching from other fields and provide such professionals with alternative routes to teacher certification, especially in the areas of mathematics, science, and English language arts; and

`(B) provide increased teaching and administration opportunities for fully qualified females, minorities, individuals with disabilities, and other individuals underrepresented in the teaching or school administration professions;

`(3) to establish programs and activities that are designed to improve the quality of the teacher and principal force, such as innovative professional development programs (which may be provided through partnerships, including partnerships with institutions of higher education), and including programs that--

`(A) train teachers and principals to utilize technology to improve teaching and learning; and

`(B) are consistent with the requirements of section 2019;

`(4) to provide collaboratively designed performance pay systems for teachers and principals that encourage teachers and principals to work together to raise student performance;

`(5) to establish professional development programs that provide instruction in how to teach children with different learning styles, particularly children with disabilities and children with special learning needs (including children who are gifted and talented);

`(6) to establish professional development programs that provide instruction in how best to discipline children in the classroom, and to identify early and appropriate interventions to help children described in paragraph (5) learn;

`(7) to provide professional development programs that provide instruction in how to teach character education in a manner that--

`(A) reflects the values of parents, teachers, and local communities; and

`(B) incorporates elements of good character, including honesty, citizenship, courage, justice, respect, personal responsibility, and trustworthiness;

`(8) to provide scholarships or other incentives to assist teachers in attaining national board certification;

`(9) to support activities designed to provide effective professional development for teachers of limited English proficient students; and

`(10) to establish other activities designed--

`(A) to improve professional development for teachers, principals, and administrators that are consistent with section 2019; and

`(B) to recruit and retain fully qualified teachers and highly qualified principals.

`(c) ADMINISTRATIVE EXPENSES- Each local educational agency receiving a grant under section 2012(a)(3) may use not more than 1.5 percent of the grant funds for any fiscal year for the cost of administering activities under this part.

`SEC. 2019. PROFESSIONAL DEVELOPMENT FOR TEACHERS.

`(a) LIMITATION RELATING TO CURRICULUM AND CONTENT AREAS-

`(1) IN GENERAL- Except as provided in paragraph (2), a local educational agency may not use grant funds allocated under section 2012(a)(3) to support a professional development activity for a teacher that is not--

`(A) directly related to the curriculum for which and content areas in which the teacher provides instruction; or

`(B) designed to enhance the ability of the teacher to understand and use the State's challenging content standards for the academic subject in which the teacher provides instruction.

`(2) EXCEPTION- Paragraph (1) shall not apply to professional development activities that provide instruction in methods of disciplining children.

`(b) PROFESSIONAL DEVELOPMENT ACTIVITY- A professional development activity carried out under this part shall--

`(1) be measured, in terms of progress described in section 2014(a), using the specific performance indicators established by the State in accordance with section 2014;

`(2) be tied to challenging State or local content standards and student performance standards;

`(3) be tied to scientifically based research demonstrating the effectiveness of such activities in increasing student achievement or substantially increasing the knowledge and teaching skills of teachers;

`(4) be of sufficient intensity and duration (such as not to include 1-day or short-term workshops and conferences) to have a positive and lasting impact on teachers' performance in the classroom, except that this paragraph shall not apply to an activity that is 1 component described in a long-term comprehensive professional development plan established by a teacher and the teacher's supervisor, and based upon an assessment of the needs of the teacher, the teacher's students, and the local educational agency;

`(5) be developed with extensive participation of teachers, principals, parents, administrators, and local school boards of elementary schools and secondary schools to be served under this part, and institutions of higher education in the State, and, with respect to any professional development program described in paragraph (6) or (7) of section 2018(b), shall, if applicable, be developed with extensive coordination with, and participation of, professionals with expertise in such type of professional development;

`(6) to the extent appropriate, provide training for teachers regarding using technology and applying technology effectively in the classroom to improve teaching and learning concerning the curriculum and academic content areas, in which those teachers provide instruction; and

`(7) be directly related to the content areas in which the teachers provide instruction and the State content standards.

`(c) ACCOUNTABILITY-

`(1) IN GENERAL- A State shall notify a local educational agency that the agency may be subject to the action described in paragraph (3) if, after any fiscal year, the State determines that the programs or activities funded by the agency under this part fail to meet the requirements of subsections (a) and (b).

`(2) TECHNICAL ASSISTANCE- A local educational agency that has received notification pursuant to paragraph (1) may request technical assistance from the State and an opportunity for such local educational agency to comply with the requirements of subsections (a) and (b).

`(3) STATE EDUCATIONAL AGENCY ACTION- If a State educational agency determines that a local educational agency failed to carry out the local educational agency's responsibilities under this section, the State educational agency shall take such action as the agency determines to be necessary, consistent with this section, to provide, or direct the local educational agency to provide, high-quality professional development for teachers, principals, and administrators.

`SEC. 2020. PARENTS' RIGHT TO KNOW.

`Each local educational agency receiving a grant under section 2012(a)(3) shall meet the reporting requirements with respect to teacher qualifications described in section 4401(h).

`SEC. 2021. STATE REPORTS AND GAO STUDY.

`(a) STATE REPORTS- Each State educational agency receiving a grant under this part shall annually provide a report to the Secretary describing--

`(1) the progress the State is making in increasing the percentages of fully qualified teachers in the State to ensure that all teachers are fully qualified not later than December 31, 2005, including information regarding--

`(A) the percentage increase over the previous fiscal year in the number of fully qualified teachers teaching in elementary schools and secondary schools served by local educational agencies receiving funds under title I; and

`(B) the percentage increase over the previous fiscal year in the number of core classes being taught by fully qualified teachers in elementary schools and secondary schools being served under title I;

`(2) the activities undertaken by the State educational agency and local educational agencies in the State to attract and retain fully qualified teachers, especially in geographic areas and content subject areas in which a shortage of such teachers exist; and

`(3) the approximate percentage of Federal, State, local, and nongovernmental resources being expended to carry out activities described in paragraph (2).

`(b) GAO STUDY- Not later than September 30, 2004, the Comptroller General of the United States shall prepare and submit to the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate a study setting forth information regarding the progress of States' compliance in increasing the percentage of fully qualified teachers, as defined in section 2002(1), for fiscal years 2000 through 2003.

`SEC. 2021. EDUCATOR PARTNERSHIP GRANTS.

`(a) SUBGRANTS-

`(1) IN GENERAL- A State receiving a grant under section 2011(a) shall award subgrants, on a competitive basis, from amounts made available under section 2012(a)(1), to local educational agencies, elementary schools, or secondary schools that have formed educator partnerships, for the design and implementation of programs that will enhance

professional development opportunities for teachers, principals, and administrators, and will increase the number of fully qualified teachers.

`(2) ALLOCATIONS- A State awarding subgrants under this subsection shall allocate the subgrant funds on a competitive basis and in a manner that results in an equitable distribution of the subgrant funds by geographic areas within the State.

`(3) ADMINISTRATIVE EXPENSES- Each educator partnership receiving a subgrant under this subsection may use not more than 5 percent of the subgrant funds for any fiscal year for the cost of planning and administering programs under this section.

`(b) EDUCATOR PARTNERSHIPS- An educator partnership described in subsection (a) includes a cooperative arrangement between--

`(1) a public elementary school or secondary school (including a charter school), or a local educational agency; and

`(2) 1 or more of the following:

`(A) An institution of higher education.

`(B) An educational service agency.

`(C) A public or private not-for-profit education organization.

`(D) A for-profit education organization.

`(E) An entity from outside the traditional education arena, including a corporation or consulting firm.

`(c) USE OF FUNDS- An educator partnership receiving a subgrant under this section shall use the subgrant funds for--

`(1) developing and enhancing of professional development activities for teachers in core academic subjects to ensure that the teachers have content knowledge in the academic subjects in which the teachers provide instruction;

`(2) developing and providing assistance to local educational agencies and elementary schools and secondary schools for sustained, high-quality professional development activities for teachers, principals, and administrators, that--

`(A) ensure that teachers, principals, and administrators are able to use State content standards, performance standards, and assessments to improve instructional practices and student achievement; and

`(B) may include intensive programs designed to prepare a teacher who participates in such a program to provide professional development instruction to other teachers within the participating teacher's school;

`(3) increasing the number of fully qualified teachers available to provide high-quality education to limited English proficient students by--

`(A) working with institutions of higher education that offer degree programs, to attract more people into such programs, and to prepare better new, English language teachers to provide effective language instruction to limited English proficient students; and

`(B) supporting development and implementation of professional development programs for language instruction teachers to improve the language proficiency of limited English proficient students;

`(4) developing and implementing professional development activities for principals and administrators to enable the principals and administrators to be effective school leaders and to improve student achievement on challenging State content and student performance standards, including professional development relating to--

`(A) leadership skills;

`(B) recruitment, assignment, retention, and evaluation of teachers and other staff;

`(C) effective instructional practices, including the use of technology; and

`(D) parental and community involvement; and

`(5) providing activities that enhance professional development opportunities for teachers, principals, and administrators or will increase the number of fully qualified teachers.

`(d) APPLICATION REQUIRED- Each educator partnership desiring a subgrant under this section shall submit an application to the appropriate State educational agency at such time, in such manner, and accompanied by such information as the State educational agency may reasonably require.

`(e) COORDINATION- Each educator partnership that receives a subgrant under this section and a grant under section 203 of the Higher Education Act of 1965 shall coordinate the activities carried out under such section 203 with any related activities carried out under this section.

`SEC. 2023. AUTHORIZATION OF APPROPRIATIONS.

`There are authorized to be appropriated to carry out this part $1,700,000,000 for fiscal year 2001 and such sums as may be necessary for each of the 4 succeeding fiscal years.

`PART B--CLASS SIZE REDUCTION

`SEC. 2031. FINDINGS.

`Congress makes the following findings:

`(1) Rigorous research has shown that students attending small classes in the early grades make more rapid educational gains than students in larger classes, and that those gains persist through at least the eighth grade.

`(2) The benefits of smaller classes are greatest for lower-achieving, minority, poor, and inner-city children, as demonstrated by a study that found that urban fourth graders in smaller-than-average classes were 3/4 of a school year ahead of their counterparts in larger-than-average classes.

`(3) Teachers in small classes can provide students with more individualized attention, spend more time on instruction and less time on other tasks, and cover more material effectively, and are better able to work with parents to further their children's education, than teachers in large classes.

`(4) Smaller classes allow teachers to identify and work with students who have learning disabilities sooner than is possible with larger classes, potentially reducing those students' needs for special education services in the later grades.

`(5) The National Research Council report, `Preventing Reading Difficulties in Young Children', recommends reducing class sizes, accompanied by providing high-quality professional development for teachers, as a strategy for improving student achievement in reading.

`(6) Efforts to improve educational outcomes by reducing class sizes in the early grades are likely to be successful only if well-qualified teachers are hired to fill additional classroom positions, and if teachers receive intensive, ongoing professional development.

`(7) Several States and school districts have begun serious efforts to reduce class sizes in the early elementary school grades, but those efforts may be impeded by financial limitations or difficulties in hiring highly qualified teachers.

`(8) The Federal Government can assist in those efforts by providing funding for class size reductions in grades 1 through 3, and by helping to ensure that both new and current teachers who are moving into smaller classrooms are well prepared.

`SEC. 2032. PURPOSE.

`The purpose of this part is to help States and local educational agencies recruit, train, and hire 100,000 additional teachers in order to--

`(1) reduce nationally class size in grades 1 through 3 to an average of 18 students per regular classroom; and

`(2) improve teaching in the early elementary school grades so that all students can learn to read independently and well by the end of the third grade.

`SEC. 2033. ALLOTMENTS TO STATES.

`(a) RESERVATIONS FOR THE OUTLYING AREAS AND THE BUREAU OF INDIAN AFFAIRS- From the amount appropriated under section 2042 for any fiscal year, the Secretary shall reserve a total of not more than 1 percent to make payments to--

`(1) outlying areas, on the basis of their respective needs, for activities, approved by the Secretary, consistent with this part; and

`(2) the Secretary of the Interior for activities approved by the Secretary of Education, consistent with this part, in schools operated or supported by the Bureau of Indian Affairs, on the basis of their respective needs.

`(b) ALLOTMENTS TO STATES-

`(1) IN GENERAL- From the amount appropriated under section 2042 for a fiscal year and remaining after the Secretary makes reservations under subsection (a), the Secretary shall make grants by allotting to each State having a State application approved under section 2034(c) an amount that bears the same relationship to the remainder as the greater of the amounts that the State received in the preceding fiscal year under sections 1122 and 2202(b) (as such sections were in effect on the day preceding the date of enactment of the Education Reinvestment Act) bears to the total of the greater amounts that all States received under such sections for the preceding fiscal year.

`(2) RATABLE REDUCTION- If the sums made available under paragraph (1) for any fiscal year are insufficient to pay the full amounts that all States are eligible to receive under paragraph (1) for such year, the Secretary shall ratably reduce such amounts for such year.

`(3) REALLOTMENT- If any State chooses not to participate in the program carried out under this part, or fails to submit an approvable application under this part, the Secretary shall reallot the amount that such State would have received under paragraphs (1) and (2) to States having applications approved under section 2034(c), in accordance with paragraphs (1) and (2).

`SEC. 2034. APPLICATIONS.

`(a) APPLICATIONS REQUIRED- The State educational agency for each State desiring a grant under this part shall submit an application to the Secretary at such time, in such form, and containing such information as the Secretary may require.

`(b) CONTENTS- The application shall include--

`(1) a description of the State's goals for using funds under this part to reduce average class sizes in regular classrooms in grades 1 through 3, including a description of class sizes in those classrooms, for each local educational agency in the State (as of the date of submission of the application);

`(2) a description of how the State educational agency will allocate program funds made available through the grant within the State;

`(3) a description of how the State will use other funds, including other Federal funds, to reduce class sizes and to improve teacher quality and reading achievement within the State; and

`(4) an assurance that the State educational agency will submit to the Secretary such reports and information as the Secretary may reasonably require.

`(c) APPROVAL OF APPLICATIONS- The Secretary shall approve a State application submitted under this section if the application meets the requirements of this section and holds reasonable promise of achieving the purpose of this part.

`SEC. 2035. WITHIN-STATE ALLOCATIONS.

`(a) ALLOCATIONS TO LOCAL EDUCATIONAL AGENCIES- Each State receiving a grant under this part for any fiscal year may reserve not more than 1 percent of the grant funds for the cost of administering this part and, using the remaining funds, shall make subgrants by allocating to each local educational agency in the State the sum of--

`(1) an amount that bears the same relationship to 80 percent of the remainder as the school-age population from families with incomes below the poverty line in the area served by the local educational agency bears to the school-age population from families with incomes below the poverty line in

the area served by all local educational agencies in the State; and

`(2) an amount that bears the same relationship to 20 percent of the remainder as the enrollment of the school-age population in public and private nonprofit elementary schools and secondary schools in the area served by the local educational agency bears to the enrollment of the school-age population in public and private nonprofit elementary schools and secondary schools in the area served by all local educational agencies in the State.

`(b) REALLOCATION- If any local educational agency chooses not to participate in the program carried out under this part, or fails to submit an approvable application under this part, the State educational agency shall reallocate the amount such local educational agency would have received under subsection (a) to local educational agencies having applications approved under section 2036(b), in accordance with subsection (a).

`SEC. 2036. LOCAL APPLICATIONS.

`(a) IN GENERAL- Each local educational agency desiring a subgrant under section 2035(a) shall submit an application to the appropriate State educational agency at such time, in such form, and containing such information as the State educational agency may require, including a description of the local educational agency's program to reduce class sizes by hiring additional highly qualified teachers.

`(b) APPROVAL OF APPLICATIONS- The State educational agency shall approve a local agency application submitted under subsection (a) if the application meets the requirements of subsection (a) and holds reasonable promise of achieving the purpose of this part.

`SEC. 2037. USES OF FUNDS.

`(a) ADMINISTRATIVE EXPENSES- Each local educational agency receiving a subgrant under section 2035(a) may use not more than 3 percent of the subgrant funds for any fiscal year for the cost of administering this part.

`(b) RECRUITMENT, TEACHER TESTING, AND PROFESSIONAL DEVELOPMENT-

`(1) IN GENERAL- Each local educational agency receiving subgrant funds under this section shall use such subgrant funds to carry out effective approaches to reducing class size with fully qualified teachers who are certified within the State (including teachers certified through State or local alternative routes) and who demonstrate competency in the areas in which the teachers provide instruction, to improve educational achievement for both regular and special needs children, with particular consideration given to reducing class size in the early elementary grades.

`(2) LOCAL ACTIVITIES-

`(A) IN GENERAL- Each local educational agency receiving subgrant funds under this section may use such subgrant funds for--

`(i) recruiting (including through the use of signing bonuses, and other financial incentives), hiring, and training fully qualified regular and special education teachers (which may include hiring special education teachers to team-teach with regular teachers in classrooms that contain both children with disabilities and non-disabled children) and teachers of special-needs children, who are certified within the State, including teachers who are certified through State or local alternative routes, have a bachelor's degree, and demonstrate the general knowledge, teaching skills, and subject matter knowledge required to teach in the content areas in which the teachers provide instruction;

`(ii) testing new teachers for academic content knowledge and satisfaction of State certification requirements consistent with title II of the Higher Education Act of 1965; and

`(iii) providing professional development (which may include such activities as promoting retention and mentoring) to teachers, including special education teachers and teachers of special-needs children, in order to meet the goal of ensuring that all instructional staff have the subject matter knowledge, teaching knowledge, and teaching skills necessary to teach effectively in the content area or areas in which they provide instruction, consistent with title II of the Higher Education Act of 1965.

`(B) LIMITATIONS-

`(i) IN GENERAL- Except as provided in clause (ii), a local educational agency may use not more than a total of 25 percent of the award received under this section for activities described in subparagraph (A)(ii) and (iii).

`(ii) ED-FLEX-

`(I) WAIVER- A local educational agency located in a State designated as an Ed-Flex Partnership State under section 4(a)(1)(B) of the Education Flexibility Partnership Act of 1999, and in which 10 percent or more of teachers in elementary schools, as defined by section 8101(14), have not met applicable State and local certification requirements (including certification through State or local alternative routes), or if such requirements have been waived, may apply to the State educational agency for a waiver that would permit the agency to use more than 25 percent of the funds it receives under this section for activities described in subparagraph (A)(iii) for the purpose of helping teachers to become certified.

`(II) APPROVAL- If the State educational agency approves the local educational agency's application for a waiver under subclause (I), the local

educational agency may use the funds subject to the waiver for activities described in subparagraph (A)(iii) that are needed to ensure that at least 90 percent of the teachers in elementary schools within the State are certified.

`(C) ADDITIONAL USES-

`(i) IN GENERAL- A local educational agency that has already reduced class size in the early grades to 18 or less children (or has already reduced class size to a State or local class size reduction goal that was in effect on the day before the enactment of the Department of Education Appropriations Act, 2000, if that State or local educational agency goal is 20 or fewer children) may use funds received under this section--

`(I) to make further class size reductions in grades kindergarten through 3;

`(II) to reduce class size in other grades; or

`(III) to carry out activities to improve teacher quality, including professional development.

`(ii) PROFESSIONAL DEVELOPMENT- If a local educational agency has already reduced class size in the early grades to 18 or fewer children and intends to use funds provided under this Part to carry out professional development activities, including activities to improve teacher quality, then the State shall make the award under section 2035 to the local educational agency.

`(c) SPECIAL RULE- Notwithstanding subsection (b), if the award to a local educational agency under section 2035 is less than the starting salary for a new fully qualified teacher teaching in a school served by that agency, and such teacher is certified within the State (which may include certification through State or local alternative routes), has a bachelor's degree, and demonstrates the general knowledge, teaching skills, and subject matter knowledge required to teach in the content areas the teacher is assigned to provide instruction, then the agency may use grant funds under this part to--

`(1) help pay the salary of a full- or part-time teacher hired to reduce class size, which may be in combination with other Federal, State, or local funds; or

`(2) pay for activities described in subsection (b), which may be related to teaching in smaller classes.

`SEC. 2038. PRIVATE SCHOOLS.

`If a local educational agency uses funds made available under this Part for professional development activities, the local educational agency shall ensure the equitable participation of private nonprofit elementary schools and secondary schools in such activities.

`SEC. 2039. TEACHER SALARIES AND BENEFITS.

`A local educational agency may use grant funds provided under this part--

`(1) except as provided in paragraph (2), to increase the salaries of, or provide benefits (other than participation in professional development and enrichment programs) to, teachers only if such teachers were hired under this part; and

`(2) to pay the salaries of teachers hired under section 307 of the Department of Education Appropriations Act of 1999 who, not later than the beginning of the 2001-2002 school year, are fully qualified, as defined in section 2002(1).

`SEC. 2040. STATE REPORT REQUIREMENTS.

`(a) REPORT ON ACTIVITIES- A State educational agency receiving funds under this part shall submit a report to the Secretary providing information about the activities in the State assisted under this part.

`(b) REPORT TO PARENTS- Each State educational agency and local educational agency receiving funds under this part shall publicly issue a report to parents of children who attend schools assisted under this part describing--

`(1) the agency's progress in reducing class size;

`(2) the agency's progress in increasing the percentage of classes in core academic areas that are taught by fully qualified teachers who are certified within the State and demonstrate competency in the content areas in which the teachers provide instruction; and

`(3) the impact, if any, that hiring additional highly qualified teachers and reducing class size has had on increasing student academic achievement in schools served by the agency.

`(c) PROFESSIONAL QUALIFICATIONS REPORT- Upon the request of a parent of a child attending a school receiving assistance under this part, such school shall provide the parent with information regarding the professional qualifications of their child's teacher.

`SEC. 2041. SUPPLEMENT NOT SUPPLANT.

`Each local educational agency receiving grant funds under this part shall use such funds only to supplement, and not to supplant, State and local funds that, in the absence of such funds, would otherwise be spent for activities under this part.

`SEC. 2042. AUTHORIZATION OF APPROPRIATIONS.

`For the purpose of carrying out this part, there are authorized to be appropriated $1,400,000,000 for fiscal year 2001, and such sums as may be necessary for each of the 4 succeeding fiscal years.'.

TITLE III--LANGUAGE MINORITY STUDENTS AND INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

SEC. 301. LANGUAGE MINORITY STUDENTS.

Title III (20 U.S.C. 6801 et seq.) is amended--

(1) by amending the heading for title III to read as follows:

`TITLE III--LANGUAGE MINORITY STUDENTS AND INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION';

(2) by repealing section 3101 (20 U.S.C. 6801) and part A (20 U.S.C. 6811 et seq.); and

(3) by inserting after the heading for title III (as amended by paragraph (1)) the following:

`Subtitle A--Language Minority Students

`SEC. 3101. FINDINGS, POLICY, AND PURPOSE.

`(a) FINDINGS- Congress makes the following findings:

`(1)(A) Educating limited English proficient students is an urgent goal for many local educational agencies, but that goal is not being achieved.

`(B) Each year, 640,000 limited English proficient students are not served by any sort of program targeted to the students' unique needs.

`(C) In 1998, only 15 percent of local educational agencies that applied for funding under enhancement grants and comprehensive school grants received such funding.

`(2)(A) The school dropout rate for Hispanic students, the largest group of limited English proficient students, is approximately 25 percent, and is approximately 46 percent for Hispanic students born outside of the United States.

`(B) A United States Department of Education report regarding school dropout rates states that language difficulty `may be a barrier to participation in United States schools'.

`(C) Reading ability is a key predictor of graduation and academic success.

`(3) Through fiscal year 1999, bilingual education capacity and demonstration grants--

`(A) have spread funding too broadly to make an impact on language instruction educational programs implemented by State educational agencies and local educational agencies; and

`(B) have lacked concrete performance measures.

`(4)(A) Since 1979, the number of limited English proficient children in schools in the United States has doubled, and demographic trends indicate the population of limited English proficient children will continue to increase.

`(B) Language-minority Americans speak virtually all world languages plus many that are indigenous to the United States.

`(C) The rich linguistic diversity language-minority students bring to America's classrooms enhances the learning environment for all students and should be valued for the significant, positive impact such diversity has on the entire school environment.

`(D) Parent and community participation in educational language programs for limited English proficient students contributes to program effectiveness.

`(E) The Federal Government, as reflected in title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) and section 204(f) of the Equal Education Opportunities Act of 1974 (20 U.S.C. 1703), has a special and continuing obligation to ensure that States and local educational agencies take appropriate action to provide equal educational opportunities to limited English proficient children and youth.

`(F) The Federal Government also, as exemplified by programs authorized under this title, has a special and continuing obligation to assist States and local educational agencies to develop the capacity to provide programs of instruction that offer limited English proficient children and youth equal educational opportunities.

`(5) Limited English proficient children and youth face a number of challenges in receiving an education that will enable them to participate fully in American society, including--

`(A) disproportionate attendance in high-poverty schools, as demonstrated by the fact that, in 1994, 75 percent of limited English proficient students attended schools in which at least half of all students were eligible for free or reduced-price meals;

`(B) the limited ability of parents of such children and youth to participate fully in the education of their children because of the parents' own limited English proficiency;

`(C) a shortage of teachers and other staff who are professionally trained and qualified to serve such children and youth; and

`(D) lack of appropriate performance and assessment standards that distinguish between language and academic achievement so that there is equal accountability on the part of State educational agencies and local educational

agencies for the achievement of limited English proficient students in academic content while acquiring English language skills.

`(b) POLICY- Congress declares it to be the policy of the United States that in order to ensure equal educational opportunity for all children and youth, and to promote educational excellence, the Federal Government should--

`(1) assist State educational agencies, local educational agencies, and community-based organizations to build their capacity to establish, implement, and sustain programs of instruction and English language development for children and youth of limited English proficiency;

`(2) hold State educational agencies and local educational agencies accountable for increases in English proficiency and core content knowledge among limited English proficient students; and

`(3) promote parental and community participation in limited English proficiency programs.

`(c) PURPOSE- The purpose of this subtitle is to assist all limited English proficient students so that those students can meet or exceed the State proficient standard level for academic performance in core subject areas expected of all elementary school and secondary school students, and succeed in our Nation's society, by--

`(1) streamlining existing language instruction programs into a performance-based grant for State and local educational agencies to help limited English proficient students become proficient in English;

`(2) increasing significantly the amount of Federal assistance to local educational agencies serving such students while requiring that State educational agencies and local educational agencies demonstrate annual improvements in the English proficiency of such students from the preceding fiscal year; and

`(3) providing State educational agencies and local educational agencies with the flexibility to implement instructional programs based on scientific research that the agencies believe to be the most effective for teaching English.

`SEC. 3102. DEFINITIONS.

`Except as otherwise provided, for purposes of this subtitle:

`(1) LIMITED ENGLISH PROFICIENT STUDENT- The term `limited English proficient student' means an individual aged 5 through 17 enrolled in an elementary school or secondary school--

`(A) who--

`(i) was not born in the United States or whose native language is a language other than English; or

`(ii) is a Native American or Alaska Native, or who is a native resident of the outlying areas and comes from an environment where a language other than English has had a significant impact on such individual's level of English language proficiency; or

`(iii) is migratory and whose native language is other than English, and who comes from an environment where a language other than English is dominant; and

`(B) who has sufficient difficulty speaking, reading, writing, or understanding the English language, and whose difficulties may deny such individual the opportunity to learn successfully in classrooms where the language of instruction is English or to participate fully in our society.

`(2) LANGUAGE INSTRUCTION EDUCATIONAL PROGRAM- The term `language instruction educational program' means an instructional course in which a limited English proficient student is placed for the purpose of becoming proficient in the English language.

`(3) SPECIALLY QUALIFIED AGENCY- The term `specially qualified agency' means a local educational agency in a State that does not participate in a program under this subtitle for a fiscal year.

`(4) STATE- The term `State' means each of the several States of the United States, the District of Columbia, and the Commonwealth of Puerto Rico.

`SEC. 3103. PROGRAM AUTHORIZED.

`(a) GRANTS AUTHORIZED- The Secretary shall award grants, from allotments under subsection (b), to each State having a State plan approved under section 3105(c), to enable the State to help limited English proficient students become proficient in English.

`(b) RESERVATIONS AND ALLOTMENTS-

`(1) RESERVATIONS- From the amount appropriated under section 3110 to carry out this subtitle for each fiscal year, the Secretary shall reserve--

`(A) 1/2 of 1 percent of such amount for payments to the Secretary of the Interior for activities approved by the Secretary, consistent with this subtitle, in schools operated or supported by the Bureau of Indian Affairs, on the basis of their respective needs for assistance under this subtitle; and

`(B) 1/2 of 1 percent of such amount for payments to outlying areas, to be allotted in accordance with their respective needs as determined by the Secretary, for activities, approved by the Secretary, consistent with this subtitle.

`(2) STATE ALLOTMENTS- From the amount appropriated under section 3110 for any of the fiscal years 2001 through 2005 that remains after making reservations under paragraph (1), the Secretary shall allot to each State having a State plan approved under section 3105(c) an amount that bears the same relationship to the remainder as the number of limited English proficient students in the State bears to the number of limited English proficient students in all States.

`(3) DATA- For the purpose of determining the number of limited English proficient students in a State and in all States for each fiscal year, the Secretary shall use data that will yield the most accurate, up-to-date, numbers of such students, including--

`(A) data available from the Bureau of the Census; or

`(B) data submitted to the Secretary by the States to determine the number of limited English proficient students in a State and in all States.

`(4) HOLD-HARMLESS AMOUNTS- For fiscal year 2001, and for each of the 4 succeeding fiscal years, notwithstanding paragraph (2), the total amount allotted to each State under this subsection shall be not less than 100 percent of the total amount the State was allotted under parts A and B of title VII (as such title was in effect on the day preceding the date of enactment of the Education Reinvestment Act).

`(c) DIRECT AWARDS TO SPECIALLY QUALIFIED AGENCIES-

`(1) NONPARTICIPATING STATE- If a State educational agency for a fiscal year elects not to participate in a program under this subtitle, or does not have an application approved under section 3105(c), a specially qualified agency in such State desiring a grant under this subtitle for the fiscal year shall apply directly to the Secretary to receive a grant under this subsection.

`(2) DIRECT AWARDS- The Secretary may award, on a competitive basis, the amount the State educational agency is eligible to receive under subsection (b)(2) directly to specially qualified agencies in the State desiring a grant under paragraph (1) and having an application approved under section 3105(c).

`(3) ADMINISTRATIVE FUNDS- A specially qualified agency that receives a direct grant under this subsection may use not more than 1 percent of the grant funds for the administrative costs of carrying out this subtitle in the first year the agency receives a grant under this subsection and 0.5 percent for such costs in the second and each succeeding such year.

`SEC. 3104. WITHIN-STATE ALLOCATIONS.

`(a) GRANT AWARDS- Each State educational agency receiving a grant under section 3103(a) shall use 95 percent of the grant funds to award subgrants, from allotments under subsection (b), to local educational agencies in the State to carry out the activities described in section 3107.

`(b) ALLOTMENT FORMULA- Each State educational agency receiving a grant under this subtitle shall award a grant to each local educational agency in the State having a plan approved under section 3106 in an amount that bears the same relationship to the amount of funds appropriated under section 3110 as the school-age population of limited English proficient students in schools served by the local educational agency bears to the school-age population of limited English proficient students in schools served by all local educational agencies in the State.

`(c) RESERVATIONS-

`(1) STATE ACTIVITIES- Each State educational agency receiving a grant under this subtitle may reserve not more than 5 percent of the grant funds to carry out activities described in the State plan submitted under section 3105.

`(2) ADMINISTRATIVE EXPENSES- From the amount reserved under paragraph (1), a State educational agency may use not more than 2 percent for the planning costs and administrative costs of carrying out the activities described in the State plan and providing grants to local educational agencies.

`SEC. 3105. STATE AND SPECIALLY QUALIFIED AGENCY PLAN.

`(a) PLAN REQUIRED- Each State educational agency and specially qualified agency desiring a grant under this subtitle shall submit a plan to the Secretary at such time, in such manner and accompanied by such information as the Secretary may require.

`(b) CONTENTS- Each State plan submitted under subsection (a) shall--

`(1) describe how the State or specially qualified agency will--

`(A) establish standards and benchmarks for English language development that are aligned with the State content and student performance standards described in section 1111;

`(B) develop high-quality, annual assessments to measure English language proficiency, including proficiency in the 4 recognized domains of speaking, listening, reading, and writing; and

`(C) develop annual performance objectives, based on the English language development standards described in subparagraph (A), to raise the level of English proficiency of each limited English proficient student;

`(2) contain an assurance that the State educational agency or specially qualified agency consulted with local educational agencies, education-related community groups and nonprofit organizations, parents, teachers, school administrators, and English language instruction specialists, in the setting of the performance objectives;

`(3) describe how--

`(A) in the case of a State educational agency, the State educational agency will hold local educational agencies and elementary schools and secondary schools accountable for--

`(i) meeting the English proficiency performance objectives described in section 3109; and

`(ii) making adequate yearly progress with limited English proficient students in the subject areas of core content knowledge as described in section 1111; and

`(B) in the case of a specially qualified agency, the agency will hold elementary schools and secondary schools accountable for meeting the English proficiency performance objectives described in section 3109, and making adequate yearly progress, including annual numerical goals for improving the performance of limited English proficient students on performance standards described in section 1111(b)(1)(D)(ii);

`(4) describe the activities for which assistance is sought, and how the activities will increase the

speed and effectiveness with which students learn English;

`(5) in the case of a State educational agency, describe how local educational agencies in the State will be given the flexibility to teach English--

`(A) using language instruction curriculum that is scientifically research based; and

`(B) in the manner the local educational agencies determine to be the most effective; and

`(6) describe how--

`(A) in the case of a State educational agency, the State educational agency will provide technical assistance to local educational agencies and elementary schools and secondary schools for the purposes of identifying and implementing English language instruction educational programs and curricula that are scientifically research based; and

`(B) in the case of a specially qualified agency, the specially qualified agency will provide technical assistance to elementary schools and secondary schools served by the specially qualified agency for the purposes of identifying and implementing English language instruction educational programs and curricula that are scientifically research based.

`(c) APPROVAL- The Secretary, using a peer review process, shall approve a State plan or a specially qualified agency plan if the plan meets the requirements of this section, and holds reasonable promise of achieving the purpose described in section 3101(c).

`(d) DURATION OF THE PLAN-

`(1) IN GENERAL- Each State plan or specially qualified agency plan shall--

`(A) remain in effect for the duration of the State's or specially qualified agency's participation under this subtitle; and

`(B) be periodically reviewed and revised by the State or specially qualified agency, as necessary, to reflect changes in the State's or specially qualified agency's strategies and programs under this subtitle.

`(2) ADDITIONAL INFORMATION- If the State educational agency or specially qualified agency makes significant changes in its plan, such as the adoption of new performance objectives or assessment measures, the State educational agency or specially qualified agency shall submit such information to the Secretary.

`(e) CONSOLIDATED PLAN- A State plan submitted under subsection (a) may be submitted as part of a consolidated plan under section 8302.

`(f) SECRETARY ASSISTANCE- Pursuant to section 7004(a)(3), the Secretary shall provide assistance, if required, in the development of English language development standards and English language proficiency assessments.

`SEC. 3106. LOCAL PLANS.

`(a) PLAN REQUIRED- Each local educational agency desiring a grant from the State educational agency under section 3104(a) shall submit a plan to the State educational agency at such time, in such manner, and accompanied by such information as the State educational agency may require.

`(b) CONTENTS- Each local educational agency plan submitted under subsection (a) shall--

`(1) describe how the local educational agency shall use the grant funds to meet the English proficiency performance objective described in section 3109;

`(2) describe how the local educational agency will hold elementary schools and secondary schools accountable for meeting the performance objectives;

`(3) contain an assurance that the local educational agency consulted with elementary schools and secondary schools, education-related community groups and nonprofit organizations, institutions of higher education, parents, language instruction teachers, school administrators, and English language instruction specialists, in developing the local educational agency plan; and

`(4) contain an assurance that the local educational agency will use the disaggregated results of the student assessments required under section 1111(b)(4), and other measures or indicators available to the agency, to review annually the progress of each school served by the agency under this part and under title I to determine whether the schools are making the annual progress necessary to ensure that limited English proficient students attending the schools will meet the proficient State content and student performance standard within 10 years of enactment of the Education Reinvestment Act.

`SEC. 3107. USES OF FUNDS.

`(a) ADMINISTRATIVE EXPENSES- Each local educational agency receiving a grant under section 3104 may use not more than 1 percent of the grant funds for any fiscal year for the cost of administering this subtitle.

`(b) ACTIVITIES- Each local educational agency receiving grant funds under section 3104 shall use the grant funds that are not used under subsection (a)--

`(1) to increase limited English proficient students' proficiency in English by providing high-quality English language instruction programs, such as bilingual education programs and transitional education or English immersion education programs, that are--

`(A) tied to scientifically based research demonstrating the effectiveness of the programs in increasing English proficiency; and

`(B) approved by the State educational agency;

`(2) to provide high-quality professional development activities for teachers of limited English proficient students that are--

`(A) designed to enhance the ability of such teachers to understand and use curricula, assessment measures, and instructional strategies for limited English proficient students;

`(B) tied to scientifically based research demonstrating the effectiveness of such programs in increasing students' English proficiency or substantially increasing the knowledge and teaching skills of such teachers; and

`(C) of sufficient intensity and duration (such as not to include 1-day or short-term workshops and conferences) to have a positive and lasting impact on the teacher's performance in the classroom, except that this paragraph shall not apply to an activity that is 1 component of a long-term, comprehensive professional development plan established by a teacher and the teacher's supervisor based upon an assessment of the teacher's and supervisor's needs, the student's needs, and the needs of the local educational agency;

`(3) to identify, acquire, and upgrade curricula, instructional materials, educational software, and assessment procedures; and

`(4) to provide parent and community participation programs to improve English language instruction programs for limited English proficient students.

`SEC. 3108. PROGRAM REQUIREMENTS.

`(a) PROHIBITION- In carrying out this subtitle the Secretary shall neither mandate nor preclude a particular curricular or pedagogical approach to educating limited English proficient students.

`(b) TEACHER ENGLISH FLUENCY- Each local educational agency receiving grant funds under section 3104 shall certify to the State educational agency that all teachers in any language instruction program for limited English proficient students funded under this subtitle are fluent in English.

`SEC. 3109. PERFORMANCE OBJECTIVES.

`(a) IN GENERAL- Each State educational agency or specifically qualified agency receiving a grant under this subtitle shall develop annual numerical performance objectives with respect to helping limited English proficient students become proficient in English. The objectives shall include incremental percentage increases for each fiscal year a State receives a grant under this subtitle, including increases in the number of limited English proficient students demonstrating an increase in performance on annual assessments in reading, writing, speaking, and listening comprehension, from the preceding fiscal year.

`(b) ACCOUNTABILITY- Each State educational agency or specially qualified agency receiving a grant under this subtitle shall be held accountable for meeting the annual numerical performance objectives under this subtitle and the adequate yearly progress levels for limited English proficient students under section 1111(b)(2)(B) (iv) and (vii). Any State educational agency or specially qualified agency that fails to meet the annual performance objectives shall be subject to sanctions under section 7001.

`SEC. 3110. AUTHORIZATION OF APPROPRIATIONS.

`There are authorized to be appropriated to carry out this subtitle $1,000,000,000 for fiscal year 2001, and such sums as may be necessary for each of the 4 succeeding fiscal years.

`SEC. 3111. REGULATIONS AND NOTIFICATION.

`(a) REGULATION RULE- In developing regulations under this subtitle, the Secretary shall consult with State educational agencies, local educational agencies, organizations representing limited English proficient individuals, and organizations representing teachers and other personnel involved in the education of limited English proficient students.

`(b) PARENTAL NOTIFICATION-

`(1) IN GENERAL- Each local educational agency shall notify parents of a student participating in a language instruction educational program under this subtitle of--

`(A) the student's level of English proficiency, how such level was assessed, the status of the student's academic achievement, and the implications of the student's educational strengths and needs for age- and grade-appropriate academic attainment, promotion, and graduation;

`(B) what programs are available to meet the student's educational strengths and needs, and how such programs differ in content and instructional goals from other language instruction educational programs and, in the case of a student with a disability, how such program meets the objectives of the individualized education program of such a student; and

`(C) the instructional goals of the language instruction educational program, and how the program will specifically help the limited English proficient student learn English and meet age-appropriate standards for grade promotion and graduation, including--

`(i) the characteristics, benefits, and past academic results of the language instruction educational program and of instructional alternatives; and

`(ii) the reasons the student was identified as being in need of a language instruction educational program.

`(2) OPTION TO DECLINE-

`(A) IN GENERAL- Each parent described in paragraph (1) shall also be informed that the parent has the option of declining the enrollment of their children or youth in a language instruction educational program, and shall be given an opportunity to decline such enrollment if the parent so chooses.

`(B) OBLIGATIONS- A local educational agency shall not be relieved of any of the agency's obligations under title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) if a parent chooses not to enroll their child in a language instruction educational program.

`(3) RECEIPT OF INFORMATION- A parent described in paragraph (1) shall receive, in a manner and form understandable to the parent including, if necessary and to the extent feasible, in the native language of the parent, the information required by this subsection. At a minimum, the parent shall receive--

`(A) timely information about projects funded under this subtitle; and

`(B) if the parent of a participating child so desires, notice of opportunities for regular meetings for the purpose of formulating and responding to recommendations from parents of children assisted under this subtitle.

`(4) SPECIAL RULE- A student shall not be admitted to, or excluded from, any Federally assisted language instruction educational program solely on the basis of a surname or language-minority status.

`(5) LIMITATIONS ON CONDITIONS- Nothing in this subtitle shall be construed to authorize an officer or employee of the Federal Government to mandate, direct, or control a State's, local educational agency's, elementary school's, or secondary school's specific challenging English language development standards or assessments, curricula, or program of instruction, as a condition of eligibility to receive grant funds under this subtitle.'.

SEC. 302. EMERGENCY IMMIGRANT EDUCATION PROGRAM.

(a) REPEALS, TRANSFERS, AND REDESIGNATIONS- Title III (20 U.S.C. 6801 et seq.) is further amended--

(1) by repealing part B (20 U.S.C. 6891 et seq.), part C (20 U.S.C. 6921 et seq.), part D (20 U.S.C. 6951 et seq.), and part E (20 U.S.C. 6971 et seq.);

(2) by transferring part C of title VII (20 U.S.C. 7541 et seq.) to title III and inserting such part after subtitle A (as inserted by section 301(3));

(3) by redesignating the heading for part C of title VII (as transferred by paragraph (2)) as the heading for subtitle B, and redesignating accordingly the references to such part as the references to such subtitle; and

(4) by redesignating section 7301 through 7309 (20 U.S.C. 7541, 7549) (as transferred by paragraph (2)) as sections 3201 through 3209, respectively, and redesignating accordingly the references to such sections.

(b) AMENDMENTS- Subtitle B of title III (as so transferred and redesignated) is amended--

(1) in section 3205(a)(2) (as redesignated by subsection (a)(4)), by striking `the Goals 2000: Educate America Act,'; and

(2) in section 3209 (as redesignated by subsection (a)(4)), by striking `$100,000,000' and all that follows through `necessary for' and inserting `such sums as may be necessary for fiscal year 2001 and'.

SEC. 303. INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION.

(a) REPEALS, TRANSFERS, AND REDESIGNATIONS- Title III (20 U.S.C 6801 et seq.) is further amended--

(1) by transferring title IX (20 U.S.C. 7801 et seq.) to title III and inserting such title after subtitle B (as inserted by section 302(a)(2));

(2) by redesignating the heading for title IX (as transferred by paragraph (1)) as the heading for subtitle C, and redesignating accordingly the references to such title as the references to such subtitle;

(3) by redesignating sections 9101 and 9102 (20 U.S.C. 7801, 7802) (as transferred by paragraph (1)) as sections 3301 and 3302, respectively, and redesignating accordingly the references to such sections;

(4) by redesignating sections 9111 through 9118 (20 U.S.C. 7811, 7818) (as transferred by paragraph (1)) as sections 3311 through 3318, respectively, and redesignating accordingly the references to such sections;

(5) by redesignating sections 9121 through 9125 (20 U.S.C. 7831, 7835) (as transferred by paragraph (1)) as sections 3321 through 3325, and redesignating accordingly the references to such section;

(6) by redesignating sections 9131 and 9141 (20 U.S.C. 7851, 7861) (as transferred by paragraph (1)) as sections 3331 and 3341, respectively, and redesignating accordingly the references to such sections;

(7) by redesignating sections 9151 through 9154 (20 U.S.C. 7871, 7874) (as transferred by paragraph (1)) as sections 3351 through 3354, respectively, and redesignating accordingly the references to such sections;

(8) by redesignating sections 9161 and 9162 (20 U.S.C. 7881, 7882) (as transferred by paragraph (1)) as sections 3361 and 3362, respectively, and redesignating accordingly the references to such sections;

(9) by redesignating sections 9201 through 9212 (20 U.S.C. 7901, 7912) (as transferred by paragraph (1)) as sections 3401 through 3412, respectively, and redesignating accordingly the references to such sections; and

(10) by redesignating sections 9301 through 9308 (20 U.S.C. 7931, 7938) (as transferred by paragraph (1)) as sections 3501 through 3508, and redesignating accordingly the references to such sections.

(b) AMENDMENTS- Subtitle C of title III (as so transferred and redesignated) is amended--

(1) by amending section 3314(b)(2)(A) (as redesignated by subsection (a)(4)) to read as follows:

`(2)(A) is consistent with, and promotes the goals in, the State and local improvement plans under sections 1111 and 1112';

(2) by amending section 3325(e) (as redesignated by subsection (a)(5)) to read as follows:

`(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as may be necessary to carry out this subpart for fiscal year 2001 and each of the 4 succeeding years.';

(3) in section 3361(4)(E) (as redesignated by subsection (a)(8)), by striking `the Act entitled the `Improving America's Schools Act of 1994' and inserting `the Education Reinvestment Act';

(4) by amending section 3362 (as redesignated by subsection (a)(8)) to read as follows:

`SEC. 3262. AUTHORIZATION OF APPROPRIATIONS.

`For the purpose of carrying out subparts 1 through 5 of this part, there are authorized to be appropriated to the Department of Education such sums as may be necessary for fiscal year 2001 and each of the 4 succeeding years.';

(5) in section 3404 (as redesignated by subsection (a)(9))--

(A) in subsection (i), by striking `Improving America's Schools Act of 1994' and inserting `Education Reinvestment Act'; and

(B) in subsection (j), by striking `$500,000 for fiscal year 1995, and such sums as may be necessary' and inserting `such sums as may be necessary for fiscal year 2001, and';

(6) in section 3405(c) (as redesignated by subsection (a)(9)), by striking `$6,000,000 for fiscal year 1995, and such sums as may be necessary' and inserting `such sums as may be necessary for fiscal year 2001, and';

(7) in section 3406(e) (as redesignated by subsection (a)(9)), by striking `$2,000,000 for fiscal year 1995, and such sums as may be necessary' and inserting `such sums as may be necessary for fiscal year 2001, and';

(8) in section 3407(e) (as redesignated by subsection (a)(9)), by striking `$1,500,000 for fiscal year 1995, and such sums as may be necessary' and inserting `such sums as may be necessary for fiscal year 2001, and';

(9) in section 3408(c) (as redesignated by subsection (a)(9)), by striking `$2,000,000 for fiscal year 1995, and such sums as may be necessary' and inserting `such sums as may be necessary for fiscal year 2001, and';

(10) in section 3409(d) (as redesignated by subsection (a)(9)), by striking `$2,000,000 for fiscal year 1995, and such sums as may be necessary' and inserting `such sums as may be necessary for fiscal year 2001, and';

(11) in section 3410(d) (as redesignated by subsection (a)(9)), by striking `$1,000,000 for fiscal year 1995, and such sums as may be necessary' and inserting `such sums as may be necessary for fiscal year 2001, and';

(12) in section 3504(c) (as redesignated by subsection (a)(10)), by striking `$5,000,000 for fiscal year 1995, and such sums as may be necessary' and inserting `such sums as may be necessary for fiscal year 2001, and';

(13) in section 3505(e) (as redesignated by subsection (a)(10)), by striking `$2,000,000 for fiscal year 1995, and such sums as may be necessary' and inserting `such sums as may be necessary for fiscal year 2001, and'; and

(14) in section 3506(d) (as redesignated by subsection (a)(10)), by striking `$1,000,000 for fiscal year 1995, and such sums as may be necessary' and inserting `such sums as may be necessary for fiscal year 2001, and'.

TITLE IV--PUBLIC SCHOOL CHOICE

SEC. 401. PUBLIC SCHOOL CHOICE.

(a) MAGNET SCHOOLS AMENDMENTS- Section 5113(a) (20 U.S.C. 7213(a)) is amended--

(1) by striking `$120,000,000' and inserting `$130,000,000'; and

(2) by striking `1995' and inserting `2001'.

(b) CHARTER SCHOOLS AMENDMENTS-

(1) PARALLEL ACCOUNTABILITY- Section 10302 (20 U.S.C. 8062) is amended by adding at the end the following:

`(g) PARALLEL ACCOUNTABILITY- Each State educational agency receiving a grant under this part shall hold charter schools assisted under this part accountable for adequate yearly progress for improving student performance under title I and as established in the school's charter, including the use of the same standards and assessments as established under title I.'.

(2) AUTHORIZATION OF APPROPRIATIONS- Section 10311 (20 U.S.C. 8067) is amended-

(A) by striking `$100,000,000' and inserting `$200,000,000'; and

(B) by striking `1999' and inserting `2001'.

(c) REPEALS, TRANSFERS AND REDESIGNATIONS- The Act (20 U.S.C. 6301 et seq.) is amended--

(1) by amending the heading for title IV (20 U.S.C. 7101 et seq.) to read as follows:

`TITLE IV--PUBLIC SCHOOL CHOICE';

(2) by amending section 4001 to read as follows:

`SEC. 4001. FINDINGS, POLICY, AND PURPOSE.

`(a) FINDINGS- Congress makes the following findings:

`(1)(A) Charter schools and magnet schools are an integral part of the educational system in the United States.

`(1)(B) Thirty-four States and the District of Columbia have established charter schools.

`(1)(C) Magnet schools have been established throughout the United States.

`(1)(D) A Department of Education evaluation of charter schools shows that 59 percent of charter schools reported that lack of start-up funds posed a difficult or very difficult challenge for the school.

`(2) State educational agencies and local educational agencies should hold all schools accountable for the improved performance of all students, including students attending charter schools and magnet schools, under State standards and student assessment measures.

`(3) School report cards constitute the key informational component used by parents for effective public school choice.

`(b) POLICY- Congress declares it to be the policy of the United States--

`(1) to support and stimulate improved public school performance through increased public elementary school and secondary school competition and increased Federal financial assistance; and

`(2) to provide parents with more choices among public school options.

`(c) PURPOSES- The purposes of this title are as follows:

`(1) To consolidate public school choice programs into 1 title.

`(2) To increase Federal assistance for magnet schools and charter schools.

`(3) To help parents make better and more informed choices by--

`(A) providing continued support and financial assistance for magnet schools;

`(B) providing continued support and expansion of charter schools and charter school districts; and

`(C) providing financial assistance to States and local educational agencies for the development of local educational agency and school report cards.';

(3) by repealing sections 4002 through 4004 (20 U.S.C. 7102, 7104), and part A (20 U.S.C. 7111 et seq.), of title IV;

(4) by transferring part A of title V (20 U.S.C. 7201 et seq.) (as amended by subsection (a)) to title IV and inserting such part A after section 4001;

(5) by redesignating sections 5101 through 5113 (20 U.S.C. 7201, 7213) (as transferred by paragraph (4)) as sections 4101 through 4113, respectively, and by redesignating accordingly the references to such sections in part A of title IV (as so transferred);

(6) by transferring part C of title X (20 U.S.C. 8061 et seq.) (as amended by subsection (b)) to title IV and inserting such part C after part A of title IV (as transferred by paragraph (4));

(7) by redesignating part C of title IV (as transferred by paragraph (6)) as part B of title IV; and

(8) by redesignating sections 10301 through 10311 (20 U.S.C. 8061, 8067) (as transferred by paragraph (6)) as sections 4201 through 4211, respectively, and by redesignating accordingly the references to such sections in such part B of title IV (as so transferred and redesignated).

SEC. 402. DEVELOPMENT OF PUBLIC SCHOOL CHOICE PROGRAMS; REPORT CARDS.

Title IV (20 U.S.C. 7101 et seq.) is further amended by adding at the end the following:

`PART C--DEVELOPMENT OF PUBLIC SCHOOL CHOICE PROGRAMS

`SEC. 4301. GRANTS AUTHORIZED.

`(a) IN GENERAL- From amounts made available to carry out this part for a fiscal year under section 4305, and not reserved under subsection (b), the Secretary is authorized to award grants, on a competitive basis, to local educational agencies to enable the local educational agencies to develop local public school choice programs.

`(b) RESERVATION FOR EVALUATION, TECHNICAL ASSISTANCE, AND DISSEMINATION- From the amount appropriated under section 4305 for any fiscal year, the Secretary may reserve not more than 5 percent to carry out evaluations under subsection (c), to provide technical assistance, and to disseminate information.

`(c) EVALUATIONS- The Secretary may use funds reserved under subsection (b) to carry out 1 or more evaluations of programs assisted under this part, which shall, at a minimum, address--

`(1) how, and the extent to which, the programs supported with funds under this part promote educational equity and excellence; and

`(2) the extent to which public schools of choice supported with funds under this part are--

`(A) held accountable to the public;

`(B) effective in improving public education; and

`(C) open and accessible to all students.

`(b) DURATION- Grants under this part may be awarded for a period not to exceed 3 years.

`SEC. 4302. DEFINITION OF HIGH-POVERTY LOCAL EDUCATIONAL AGENCY.

`In this part, the term `high-poverty local educational agency' means a local educational agency in which the percentage of children, ages 5 to 17, from families with incomes below the poverty line (as defined by the Office of Management and Budget and revised annually in accordance with section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2))) applicable to a family of the size involved for the most recent fiscal year for which satisfactory data are available is 20 percent or greater.

`SEC. 4303. USES OF FUNDS.

`(a) IN GENERAL-

`(1) PUBLIC SCHOOL CHOICE- Funds under this part may be used to demonstrate, develop, implement, evaluate, and disseminate information on innovative approaches to promote public school choice, including the design and development of new public school choice options, the development of new strategies for overcoming barriers to effective public

school choice, and the design and development of public school choice systems that promote high standards for all students and the continuous improvement of all public schools.

`(2) INNOVATIVE APPROACHES- Such approaches at the school, local educational agency, and State levels may include--

`(A) inter-district approaches to public school choice, including approaches that increase equal access to high-quality educational programs and diversity in schools;

`(B) public elementary and secondary programs that involve partnerships with institutions of higher education and that are located on the campuses of those institutions;

`(C) programs that allow students in public secondary schools to enroll in postsecondary courses and to receive both secondary and postsecondary academic credit;

`(D) worksite satellite schools, in which State or local educational agencies form partnerships with public or private employers, to create public schools at parents' places of employment; and

`(E) approaches to school desegregation that provide students and parents choice through strategies other than magnet schools.

`(b) LIMITATIONS- Funds under this part--

`(1) shall supplement, and not supplant, non-Federal funds expended for existing public school choice programs; and

`(2) may be used for providing transportation services or costs, except that not more than 10 percent of the funds received under this part shall be used by the local educational agency to provide such services or costs.

`SEC. 4304. GRANT APPLICATION; PRIORITIES.

`(a) APPLICATION REQUIRED- A State or local educational agency desiring to receive a grant under this part shall submit an application to the Secretary.

`(b) APPLICATION CONTENTS- Each application shall include--

`(1) a description of the program for which funds are sought and the goals for such program;

`(2) a description of how the program funded under this part will be coordinated with, and will complement and enhance, programs under other related Federal and non-Federal projects;

`(3) if the program includes partners, the name of each partner and a description of the partner's responsibilities;

`(4) a description of the policies and procedures the applicant will use to ensure--

`(A) its accountability for results, including its goals and performance indicators; and

`(B) that the program is open and accessible to, and will promote high academic standards for, all students; and

`(5) such other information as the Secretary may require.

`(c) PRIORITIES-

`(1) HIGH-POVERTY AGENCIES- The Secretary shall give a priority to applications for projects that would serve high-poverty local educational agencies.

`(2) PARTNERSHIPS- The Secretary may give a priority to applications demonstrating that the applicant will carry out the applicant's project in partnership with 1 or more public and private agencies, organizations, and institutions, including institutions of higher education and public and private employers.

`SEC. 4305. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to carry out this part $100,000,000 for fiscal year 2001 and such sums as may be necessary for each of the 4 succeeding fiscal years.

`PART D--REPORT CARDS

`SEC. 4401. REPORT CARDS.

`(a) GRANTS AUTHORIZED- The Secretary shall award a grant, from allotments under subsection (b), to each State having a State report card meeting the requirements described in subsection (g), to enable the State annually to publish report cards for each elementary school and secondary school that receives funding under this Act and is served by the State.

`(b) RESERVATIONS AND ALLOTMENTS-

`(1) RESERVATIONS- From the amount appropriated under subsection (e) to carry out this part for each fiscal year, the Secretary shall reserve--

`(A) 1/2 of 1 percent of such amount for payments to the Secretary of the Interior for activities approved by the Secretary, consistent with this part, in schools operated or supported by the Bureau of Indian Affairs, on the basis of their respective needs for assistance under this part; and

`(B) 1/2 of 1 percent of such amount for payments to outlying areas, to be allotted in accordance with their respective needs for assistance under this part, as determined by the Secretary, for activities, approved by the Secretary, consistent with this part.

`(2) STATE ALLOTMENTS- From the amount appropriated under subsection (e) for a fiscal year and remaining after the Secretary makes reservations under paragraph (1), the Secretary shall allot to each State having a State report card meeting the requirements described in subsection (g) an amount that bears the same relationship to the remainder as the number of public school students enrolled in elementary schools and secondary schools in the State bears to the number of such students so enrolled in all States.

`(c) WITHIN-STATE ALLOCATIONS- Each State educational agency receiving a grant under subsection (a) shall allocate the grant funds that remain after making the reservation described in subsection (d) to each local educational agency in the State in an amount that bears the same relationship to the remainder as the number of public school students enrolled in elementary schools and secondary schools served by the local educational agency

bears to the number of such students so enrolled in all local educational agencies within the State.

`(d) STATE RESERVATION OF FUNDS- Each State educational agency receiving a grant under subsection (a) may reserve--

`(1) not more than 10 percent of the grant funds to carry out activities described under subsections (f) and (g), and (i)(1) for fiscal year 2001; and

`(2) not more than 5 percent of the grant funds to carry out activities described under subsections (f) and (g), and (i)(1) for fiscal year 2002 and each of the 3 succeeding fiscal years.

`(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this part $5,000,000 for fiscal year 2001 and such sums as may be necessary for each of the 4 succeeding fiscal years.

`(f) ANNUAL STATE REPORT-

`(1) REPORTS REQUIRED-

`(A) IN GENERAL- Except as provided in paragraph (3), not later than the beginning of the 2001-2002 school year, a State that receives assistance under this Act shall prepare and disseminate an annual report on all elementary schools and secondary schools within the State that receive funds under part A of title I or part A of title II.

`(B) STATE REPORT CARDS ON EDUCATION- In the case of a State that publishes State report cards on education, the State shall include in such report cards the information described in subsection (g).

`(C) REPORT CARDS ON ALL PUBLIC SCHOOLS- In the case of a State that publishes a report card on all public elementary schools and secondary schools in the State, the State shall include, at a minimum, the information described in subsection (g) for all schools that receive funds under part A of title I or part A of title II.

`(2) IMPLEMENTATION; REQUIREMENTS-

`(A) IMPLEMENTATION- The State shall ensure implementation at all levels of the report cards described in paragraph (1).

`(B) REQUIREMENTS- Annual report cards under this part shall be--

`(i) concise; and

`(ii) presented in a format and manner that parents can understand including, to the extent practicable, in a language the parents can understand.

`(3) PUBLICATION THROUGH OTHER MEANS- In the event that the State provides no such report card, the State shall, not later than the beginning of the 2001-2002 school year, publicly report the information described in subsection (g) for all schools that receive funds under part A of title I or part A of title II through other public means.

`(g) CONTENT OF ANNUAL STATE REPORTS-

`(1) REQUIRED INFORMATION- Each State described in subsection (f)(1)(A), at a minimum, shall include in the annual State report information on each local educational agency and school that receives funds under part A of title I or part A of title II within the State, including information regarding--

`(A) student performance on statewide assessments for the year for which the annual State report is made, and the preceding year, in at least English language arts and mathematics, including--

`(i) a comparison of the proportions of students who performed at the basic, proficient, and advanced levels in each subject area, for each grade level at which assessments are required under title I, with proportions in each of the same 4 levels at the same grade levels in the previous school year;

`(ii) a statement on the 3-year trend in the percentage of students performing at the basic, proficient, and advanced levels in each subject area, for each grade level for which assessments are required under title I; and

`(iii) a statement of the percentage of students not tested and a listing of categories of the reasons why such students were not tested;

`(B) student retention rates in grades, the number of students completing advanced placement courses, and 4-year graduation rates;

`(C) the professional qualifications of teachers in the aggregate, including the percentage of teachers teaching with emergency or provisional credentials, the percentage of class sections not taught by fully qualified teachers, and the percentage of teachers who are fully qualified; and

`(D) the professional qualifications of paraprofessionals in the aggregate, the number of paraprofessionals in the aggregate, and the ratio of paraprofessionals to teachers in the classroom.

`(2) STUDENT DATA- Student data in each report shall contain disaggregated results for the following categories:

`(A) Racial and ethnic groups.

`(B) Gender.

`(C) Economically disadvantaged students, as compared to students who are not economically disadvantaged.

`(D) Students with limited English proficiency, as compared to students who are proficient in English.

`(3) OPTIONAL INFORMATION- A State may include in the State annual report any other information the State determines appropriate to reflect school quality and school achievement, including by grade level information on average class size and information on school safety, such as the incidence of school violence and drug and alcohol abuse, and the incidence of student suspensions and expulsions.

`(4) WAIVER- The Secretary may grant a waiver to a State seeking a waiver of the requirements of this subsection if the State demonstrates to the Secretary that--

`(A) the content of existing State report cards meets the goals of this part; and

`(B) the State is taking identifiable steps to meet the requirements of this subsection.

`(h) LOCAL EDUCATIONAL AGENCY AND SCHOOL REPORT CARDS-

`(1) REPORT REQUIRED-

`(A) IN GENERAL- The State shall ensure that each local educational agency, elementary school, or secondary school receiving funds under part A of title I or part A of title II in the State, collects appropriate data and publishes an annual report card consistent with this subsection.

`(B) REQUIRED INFORMATION- Each local educational agency, elementary school, and secondary school described in subparagraph (A), at a minimum, shall include in its annual report card--

`(i) the information described in subsections (g)(1) and (2) for each local educational agency and school;

`(ii) in the case of a local educational agency--

`(I) information regarding the number and percentage of schools identified for school improvement, including schools identified under section 1116 of this Act, served by the local educational agency;

`(II) information on the 3-year trend in the number and percentage of elementary schools and secondary schools identified for school improvement; and

`(III) information that shows how students in the schools served by the local educational agency perform on the statewide assessment compared to students in the State as a whole;

`(iii) in the case of an elementary school or a secondary school--

`(I) information regarding whether the school has been identified for school improvement; and

`(II) information that shows how the school's students performed on the statewide assessment compared to students in schools served by the same local educational agency and to all students in the State; and

`(iii) other appropriate information, whether or not the information is included in the annual State report.

`(2) SPECIAL RULE- A local educational agency that issues report cards for all public elementary schools and secondary schools served by the agency shall include, at a minimum, the information described in subsection (g) for all schools that receive funds under part A of title I or part A of title II.

`(i) DISSEMINATION AND ACCESSIBILITY OF REPORTS AND REPORT CARDS-

`(1) STATE REPORTS- State annual reports under subsection (g) shall be disseminated to all elementary schools, secondary schools, and local educational agencies in the State, and made broadly available to the public through means such as posting on the Internet and distribution to the media, and through public agencies.

`(2) LOCAL REPORT CARDS- Local educational agency report cards under subsection (h) shall be disseminated to all elementary schools and secondary schools served by the local educational agency and to all parents of students attending such schools, and made broadly available to the public through means such as posting on the Internet and distribution to the media, and through public agencies.

`(3) SCHOOL REPORT CARDS- Elementary school and secondary school report cards under subsection (h) shall be disseminated to all parents of students attending that school, and made broadly available to the public, through means such as posting on the Internet and distribution to the media, and through public agencies.

`(j) PARENTS RIGHT-TO-KNOW-

`(1) QUALIFICATIONS- A local educational agency that receives funds part A of title I or part A of title II shall provide, upon request, in an understandable and uniform format, to any parent of a student attending any school receiving funds under part A of title I or part A of title II, information regarding the professional qualifications of the student's classroom teachers, including, at a minimum--

`(A) whether the teacher has met State certification or licensing criteria for the grade levels and subject areas in which the teacher provides instruction;

`(B) whether the teacher is teaching under emergency or other provisional status through which State certification or licensing criteria are waived;

`(C) the baccalaureate degree major of the teacher, any other graduate certification or degree held by the teacher, and the field of discipline of each such certification or degree; and

`(D) whether the student is provided services by paraprofessionals, and the qualifications of any such paraprofessional.

`(2) ADDITIONAL INFORMATION- In addition to the information that parents may request under paragraph (1), and the information provided in report cards under this part, a school that receives funds under part A of title I or part A of title II shall provide, to the extent practicable, to each individual parent or guardian--

`(A) information on the level of performance of the individual student, for whom they are the parent or guardian, in each of the State assessments as required under part A of title I; and

`(B) timely notice that the student, for whom they are the parent or guardian, was assigned or taught for 2 or more consecutive weeks by a substitute teacher or by a teacher not fully qualified.

`(k) COORDINATION OF STATE PLAN CONTENT- A State shall include in its plan under part A of title I or part A of title II, an assurance that the State has in effect a policy that meets the requirements of this section.

`(l) PRIVACY- Information collected under this section shall be collected and disseminated in a manner that protects the privacy of individuals.

`(m) DEFINITION- The term `State' means each of the several States of the United States, the District of Columbia, and the Commonwealth of Puerto Rico.

TITLE V--IMPACT AID

SEC. 501. IMPACT AID.

(a) Section 8014 (20 U.S.C. 7714) is amended--

(1) in subsection (a)--

(A) by striking `$16,750,000 for fiscal year 1995 and'; and

(B) by inserting `fiscal year 2001 and' after `necessary for';

(2) in subsection (b)--

(A) by striking `$775,000,000 for fiscal year 1995 and'; and

(B) by inserting `fiscal year 2001 and' after `necessary for';

(3) in subsection (c)--

(A) by striking `$45,000,000 for fiscal year 1995 and'; and

(B) by inserting `fiscal year 2001 and' after `necessary for';

(4) in subsection (d)--

(A) by striking `$2,000,000 for fiscal year 1995 and'; and

(B) by inserting `fiscal year 2001 and' after `necessary for';

(5) in subsection (e)--

(A) by striking `$25,000,000 for fiscal year 1995 and'; and

(B) by inserting `fiscal year 2001 and' after `necessary for';

(6) in subsection (f)--

(A) by striking `$2,000,000 for fiscal year 1995 and'; and

(B) by inserting `fiscal year 2001 and' after `necessary for'; and

(7) in subsection (g), by striking `1998' and inserting `2001'.

(b) REPEALS, TRANSFERS, AND REDESIGNATIONS- The Act (20 U.S.C. 6301 et seq.) is amended--

(1) by repealing title V (20 U.S.C. 7201 et seq.);

(2) by redesignating title VIII (20 U.S.C. 7701 et seq.) (as amended by subsection (a)) as title V, and transferring the title to follow title IV (as amended by section 402);

(3) by redesignating references to title VIII as references to title V (as redesignated and transferred by paragraph (2)); and

(4) by redesignating sections 8001 through 8014 (20 U.S.C. 7701, 7714) (as transferred by paragraph (2)) as sections 5001 through 5014, respectively, and redesignating accordingly the references to such sections.

TITLE VI--HIGH PERFORMANCE AND QUALITY EDUCATION INITIATIVES

SEC. 601. HIGH PERFORMANCE AND QUALITY EDUCATION INITIATIVES.

Title VI (20 U.S.C. 7301 et seq.) is amended to read as follows:

`TITLE VI--HIGH PERFORMANCE AND QUALITY EDUCATION INITIATIVES

`SEC. 6001. DEFINITIONS OF STATE.

`In this title:

`(1) AUTHENTIC TASK- The term `authentic task' means a real world task that--

`(A) is challenging, meaningful, multidisciplinary, and interactive;

`(B) involves reasoning, problem solving, and composition; and

`(C) is not a discrete component skill that has no obvious connection with students' activities outside of school.

`(2) STATE- The term `State' means each of the several States, the District of Columbia, and the Commonwealth of Puerto Rico.

`SEC. 6002. PROGRAMS AUTHORIZED.

`(a) GRANTS AUTHORIZED- From the amount appropriated under section 6009 for a fiscal year, the Secretary shall award a grant to each State educational agency having a State plan approved under section 6005(a)(4) to enable the State educational agency to award grants to local educational agencies in the State.

`(b) RESERVATIONS AND ALLOTMENTS-

`(1) RESERVATIONS- From the amount appropriated under section 6009 for a fiscal year, the Secretary shall reserve--

`(A) not more than 1/2 of 1 percent of such amount for payments to the Bureau of Indian Affairs for activities, approved by the Secretary, consistent with this title;

`(B) not more than 1/2 of 1 percent of such amounts for payments to outlying areas, to be allotted in accordance with their respective needs for assistance under this title as determined by the Secretary, for activities, approved by the Secretary, consistent with this title; and

`(C) such sums as may be necessary to continue to support any multiyear award made under titles III, IV, V (part B), or X (as such titles were in effect on the day preceding the

date of enactment of the Education Reinvestment Act) until the completion of the multiyear award.

`(2) STATE ALLOTMENTS-

`(A) IN GENERAL- From the amount appropriated under section 6009 for a fiscal year and remaining after the Secretary makes reservations under paragraph (1), the Secretary shall allot to each State having a State plan approved under section 6005(a)(4) the sum of--

`(i) an amount that bears the same relationship to 50 percent of the remainder as the amount the State received under part A of title I bears to the amount all States received under such part; and

`(ii) an amount that bears the same relationship to 50 percent of the remainder as the school-age population in the State bears to the school-age population in all States.

`(B) DATA- For the purposes of determining the school-age population in a State and in all States, the Secretary shall use the latest available Bureau of the Census data.

`(c) STATE MINIMUM- For any fiscal year, no State shall be allotted under this section an amount that is less than 0.4 percent of the total amount allotted to all States under subsection (b)(2).

`(d) HOLD-HARMLESS AMOUNTS- For fiscal year 2001, notwithstanding subsection (e), the amount allotted to each State under this section shall be not less than 100 percent of the total amount the State was allotted in formula grants under titles III, IV, and VI (as such titles were in effect on the day preceding the date of enactment of the Education Reinvestment Act) for the preceding fiscal year.

`(e) RATABLE REDUCTIONS- If the sums made available under subsection (b)(2)(A) for any fiscal year are insufficient to pay the full amounts that all State educational agencies are eligible to receive under that subsection for such year, the Secretary shall ratably reduce such amounts for such year.

`SEC. 6003. WITHIN STATE ALLOCATION.

`(a) SHORT TITLE- Each State educational agency for a State receiving a grant award under section 6003(b)(2) shall--

`(1) set aside not more than 1 percent of the grant funds for the cost of administering the activities under this title;

`(2) set aside not more than 4 percent of the grant funds to--

`(A) provide for the establishment of high-quality, internationally competitive content and student performance standards and strategies that all students will be expected to meet;

`(B) provide for the establishment of high-quality, rigorous assessments that include multiple measures and demonstrate comprehensive knowledge;

`(C) encourage and enable all State educational agencies and local educational agencies to develop, implement, and strengthen comprehensive education improvement plans that address student achievement, teacher quality, parent involvement, and reliable measurement and evaluation methods; and

`(D) encourage and enable all States to develop and implement value-added assessments, including model value-added assessments identified by the Secretary under section 7004(a)(6); and

`(3) using the remaining 95 percent of the grant funds, make grants by allocating to each local educational agency in the State having a local educational agency plan approved under section 6005(b)(3) the sum of--

`(A) an amount that bears the same relationship to 50 percent of such remainder as the amount the local educational agency received under part A of title I bears to the amount all local educational agencies in the State received under such part; and

`(B) an amount that bears the same relationship to 50 percent of such remainder as the school-age population in the area served by the local educational agency bears to the school-age population in the area served by all local educational agencies in the State.

`(b) MATCHING REQUIREMENT-

`(1) IN GENERAL- Each eligible local educational agency receiving a grant under subsection (a) shall contribute resources with respect to the local authorized activities to be assisted under this title in case or in-kind from non-Federal sources in an amount equal to 25 percent of the Federal funds awarded under the grant.

`(2) WAIVER- A local educational agency may apply to the State educational agency may grant a waiver of the requirements of paragraph (1) to a local educational agency that--

`(A) applies for such a waiver; and

`(B) demonstrates extreme circumstances for being unable to meet such requirements.

`SEC. 6004. PLANS.

`(a) STATE PLANS-

`(1) IN GENERAL- The State educational agency for each State desiring a grant under this title shall submit a State plan to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may require.

`(2) CONSOLIDATED PLAN- A State plan submitted under paragraph (1) may be submitted as part of a consolidated plan under section 8302.

`(3) CONTENTS- Each plan submitted under paragraph (1) shall--

`(A) describe how the State educational agency will assist each local educational agency and school served under this title to comply with the requirements described in section 6006 that are applicable to the local educational agency or school;

`(B) certify that the State has in place the standards and assessments required under section 1111;

`(C) certify that the State educational agency has a system, as required under section 1111, for--

`(i) holding each local educational agency and school accountable for adequate yearly progress (as defined in section 1111(b)(2)(B));

`(ii) identifying local educational agencies and schools that are in need of improvement and corrective action (as required in sections 1116 and 1117);

`(iii) assisting local educational agencies and schools that are identified for improvement with the development of improvement plans; and

`(iv) providing technical assistance, professional development, and other capacity building as needed to get such agencies and schools out of improvement status;

`(D) certify that the State educational agency shall use the disaggregated results of student assessments required under section 1111(b)(4), and other measures or indicators available, to review annually the progress of each local educational agency and school served under this title to determine whether or not each such agency and school is making adequate yearly progress as required under section 1111;

`(E) certify that the State educational agency will take action against a local educational agency that is in corrective action and receiving funds under this title as described in section 6006(d)(1);

`(F) describe what, if any, State and other resources will be provided to local educational agencies and schools served under this title to carry out activities consistent with this title; and

`(G) certify that the State educational agency has a system to hold local educational agencies accountable for meeting the annual performance objectives required under subsection (b)(2)(C).

`(4) APPROVAL- The Secretary, using a peer review process, shall approve a State plan if the State plan meets the requirements of this subsection.

`(5) DURATION OF THE PLAN- Each State plan shall remain in effect for the duration of the State's participation under this title.

`(6) REQUIREMENT- A State shall not be eligible to receive funds under this title unless the State has established the standards and assessments required under section 1111.

`(b) LOCAL PLANS-

`(1) IN GENERAL- Each local educational agency shall annually submit a local educational agency plan to the State educational agency at such time, in such manner, and accompanied by such information as the State educational agency may require.

`(2) CONTENTS- Each local educational agency shall--

`(A) describe the programs for which funds allocated under section 6004(3) will be used and the reasons for the selection of such programs;

`(B) describe the methods the local educational agency will use to measure the annual impact of programs described under subparagraph (A) and the extent to which such programs will increase student academic performance;

`(C) describe the annual, quantifiable, and measurable performance goals and objectives for each program described under subparagraph (A) and the extent to which such goals and objectives are aligned with State content and student performance standards;

`(D) describe how the local educational agency will hold schools accountable for meeting the intended performance objectives for each program described under subparagraph (C);

`(E) provide an assurance that the local educational agency has met the local plan requirements described in section 1112 for--

`(i) holding schools accountable for adequate yearly progress, including meeting annual numerical goals for improving the performance of all groups of students based on the student performance standards set by the State under section 1111(b)(1)(D)(ii);

`(ii) identifying schools for school improvement or corrective action;

`(iii) fulfilling the local educational agency's school improvement responsibilities described in section 1116, including taking corrective actions under section 1116(c)(10); and

`(iv) providing technical assistance, professional development, or other capacity building to schools served by the agency;

`(F) certify that the local educational agency will take action against a school that is in corrective action and receiving funds under this title as described under section 6006(d)(2);

`(G) describe what State and local resources will be contributed to carrying out programs described under subparagraph (A);

`(H) provide assurances that the local educational agency consulted, at a minimum, with parents, school board members, teachers, administrators, business partners, education organizations, and community groups to develop the local educational plan and select the programs to be assisted under this title; and

`(I) provide assurances that the local educational agency will continue such consultation

on a regular basis and will provide the State with annual evidence of such consultation.

`(3) APPROVAL- The State, using a peer review process, shall approve a local educational agency plan if the plan meets the requirements of this subsection.

`(4) DURATION OF THE PLAN- Each local educational agency plan shall remain in effect for the duration of the local educational agency's participation under this title.

`(5) PUBLIC REVIEW- Each State educational agency will make publicly available each local educational agency plan approved under paragraph (3).

`SEC. 6005. LOCAL USES OF FUNDS AND ACCOUNTABILITY.

`(a) ADMINISTRATIVE EXPENSES- Each local educational agency receiving a grant award under section 6004(3) may use not more than 1 percent of the grant funds for any fiscal year for the cost of administering this title.

`(b) REQUIRED ACTIVITIES- Each local educational agency that receives a grant award under this title shall use grant funds remaining after the reservation under paragraph (a) in accordance with its local plan submitted under section 6004(b).

`(c) LIMITATIONS FOR SCHOOLS AND LOCAL EDUCATIONAL AGENCIES IN CORRECTIVE ACTION-

`(1) LOCAL EDUCATIONAL AGENCIES IN CORRECTIVE ACTION- If a local educational agency is identified for corrective action under section 1116(d), the State educational agency shall--

`(A) notwithstanding any other provision of law, specify how the local educational agency shall spend the grant funds in order to focus the local educational agency on activities that will be the most effective in raising student performance levels; and

`(B) implement corrective action in accordance with the provisions for corrective action described in section 1116(d).

`(2) SCHOOLS IN CORRECTIVE ACTION- If a school is identified for corrective action under section 1116(c), the local educational agency shall--

`(A) specify how the school shall spend grant funds received under this section in order to focus on activities that will be the most effective in raising student performance levels; and

`(B) implement corrective action in accordance with the provisions for corrective action described in section 1116(c)(10).

`(3) DURATION- Limitations imposed on schools and local educational agencies in corrective action under paragraphs (1) and (2) shall remain in effect until such time as the school or local educational agency has made sufficient improvement, as determined by the State educational agency, and is no longer in corrective action.

`SEC. 6006. STATE AND LOCAL RESPONSIBILITIES.

`(a) DATA REVIEW-

`(1) STATE AND LOCAL REVIEW- A State educational agency shall jointly review with a local educational agency described in section 6006(d)(1) the local educational agency's data gathered from student assessments and other measures required under section 1111(b)(4), in order to determine how the local educational agency shall spend the grant funds pursuant to section 6006(d)(1)(A) in order to substantially increase student performance levels.

`(1) SCHOOL AND LOCAL REVIEW- A local educational agency shall jointly review with a school described in section 6006(d)(2) the school's data gathered from student assessments and other measures required under section 1111(b)(4), in order to determine how the school shall spend grant funds pursuant to section 6006(d)(2) in order to substantially increase student performance levels.

`(b) TECHNICAL ASSISTANCE-

`(1) STATE ASSISTANCE-

`(A) A State educational agency shall provide, upon request by a local educational agency receiving grant funds under this title, technical assistance to the local educational agency and schools served by the local educational agency, including assistance in analyzing student performance and the impact of programs assisted under this title and identifying the best instructional strategies and methods for carrying out such programs.

`(B) State assistance may be provided by--

`(i) the State educational agency; or

`(ii) with the local educational agency's approval, by an institution of higher education, a private not-for-profit or for-profit organization, an educational service agency, the recipient of a Federal contract or cooperative agreement as described in section 7005, a nontraditional entity such as a corporation or consulting firm, or any other entity with experience in the program area for which the assistance is being sought.

`(2) LOCAL ASSISTANCE-

`(A) A local educational agency shall provide, upon request by an elementary school or secondary school served by the agency, technical assistance to such school, including assistance in analyzing student performance and the impact of programs assisted under this title, and identifying the best instructional strategies and methods for carrying out such programs.

`(B) Local assistance may be provided by--

`(i) the State educational agency or local educational agency; or

`(ii) with the school's approval, by an institution of higher education, a private not-for-profit or for-profit organization, an educational service agency, the recipient of a Federal contract or cooperative agreement as described in section 7005, a nontraditional entity such as a corporation or consulting firm, or any other entity with

experience in the program area for which the assistance is being sought.

`SEC. 6007. LOCAL REPORTS.

`Each local educational agency receiving funds under this title shall annually publish and disseminate to the public in a format and, to the extent practicable, in a language that parents can understand, a report on--

`(1) information describing the use of funds in the 4 category areas described in section 6006(b);

`(2) the impact of such programs and an assessment of such programs' effectiveness; and

`(3) the local educational agency's progress toward attaining the goals and objectives described under section 6005(b), and the extent to which programs assisted under this title have increased student achievement.

`SEC. 6008. AUTHORIZATION OF APPROPRIATIONS.

`There are authorized to be appropriated to carry out this title $1,000,000,000 for fiscal year 2001, and such sums as may be necessary for each of the 4 succeeding fiscal years.'.

TITLE VII--ACCOUNTABILITY

SEC. 701. ACCOUNTABILITY.

Title VII of the Act (20 U.S.C. 7401 et seq.) is amended to read as follows:

`TITLE VII--ACCOUNTABILITY

`SEC. 7001. SANCTIONS.

`(a) THIRD FISCAL YEAR- If performance objectives established under a covered provision have not been met by a State receiving grant funds under such provision by the end of the third fiscal year for which the State receives such grant funds, the Secretary shall reduce by 50 percent the amount the State is entitled to receive for administrative expenses under such provision.

`(b) FOURTH FISCAL YEAR- If the State fails to meet the performance objectives established under a covered provision by the end of the fourth fiscal year for which the State receives grant funds under the covered provision, the Secretary shall reduce the total amount the State receives under title VI by 30 percent.

`(c) DURATION- If the Secretary determines, under subsection (a) or (b), that a State failed to meet the performance objectives established under a covered provision for a fiscal year, the Secretary shall reduce grant funds in accordance with subsection (a) or (b) for the State for each subsequent fiscal year until the State demonstrates that the State met the performance objectives for the fiscal year preceding the demonstration.

`(d) TECHNICAL ASSISTANCE- The Secretary shall provide technical assistance, if sought, to a State subjected to sanctions under subsection (a) or (b).

`(e) LOCAL SANCTIONS-

`(1) IN GENERAL- Each State receiving assistance under title I, II, III, or VI shall develop a system to hold local educational agencies accountable for meeting--

`(A) the performance objectives established under part A of title II, part A of title III, and title VI; and

`(B) the adequate yearly progress requirements established under part A of title I, and required under part A of title III and title VI.

`(2) SANCTIONS- A system developed under paragraph (c) shall include a mechanism for sanctioning local educational agencies for low performance with regard to failure to meet such performance objectives and adequate yearly progress levels.

`(f) DEFINITIONS- In this section:

`(1) COVERED PROVISION- The term `covered provision' means part A of title I, part A of title II, part A of title III, and section 6005(b)(2)(C).

`(2) PERFORMANCE OBJECTIVES- The term `performance objectives' means in the case of--

`(A) part A of title I, the adequate yearly progress levels established under subsections (b)(2)(A)(iii) and (b)(2)(B) of section 1111;

`(B) part A of title II, the set of performance objectives established in section 2014;

`(C) part A of title III, the set of performance objectives established in section 3109; and

`(D) title VI, the set of performance objectives set by each local educational agency in section 6005(b)(2)(C).

`SEC. 7002. REWARDING HIGH PERFORMANCE.

`(a) STATE REWARDS-

`(1) IN GENERAL- From amounts appropriated under subsection (d), and from amounts made available as a result of reductions under section 7001, the Secretary shall make awards to States that--

`(A) for 3 consecutive years have--

`(i) exceeded the States' performance objectives established for any title under this Act;

`(ii) exceeded their adequate yearly progress levels established in section 1111(b);

`(iii) significantly narrowed the gaps between minority and non-minority students, and between economically disadvantaged and non-economically disadvantaged students;

`(iv) raised all students to the proficient standard level prior to 10 years from the date of enactment of the Education Reinvestment Act; or

`(v) significantly increased the percentage of core classes being taught by fully qualified teachers teaching in schools receiving funds under part A of title I; or

`(B) by not later than fiscal year 2003, ensure that all teachers teaching in the States' public elementary schools and secondary schools are fully qualified.

`(2) STATE USE OF FUNDS-

`(A) DEMONSTRATION SITES- Each State receiving an award under paragraph (1) shall use a portion of the award that is not distributed under subsection (b) to establish demonstration sites with respect to high-performing schools (based on achievement or performance

levels) objectives and adequate yearly progress in order to help low-performing schools.

`(B) IMPROVEMENT OF PERFORMANCE- Each State receiving an award under paragraph (1) shall use the portion of the award that is not used pursuant to subparagraph (A) or (C) and is not distributed under subsection (b) for the purpose of improving the level of performance of all elementary and secondary school students in the State, based on State content and performance standards.

`(C) RESERVATION FOR ADMINISTRATIVE EXPENSES- Each State receiving an award under paragraph (1) may set aside not more than 1/2 of 1 percent of the award for the planning and administrative costs of carrying out this section, including the costs of distributing awards to local educational agencies.

`(b) LOCAL EDUCATIONAL AGENCY AWARDS-

`(1) IN GENERAL- Each State receiving an award under subsection (a)(1) shall distribute 80 percent of the award funds to local educational agencies in the State that--

`(A) for 3 consecutive years have--

`(i) exceeded the State-established local educational agency performance objectives established for any title under this Act;

`(ii) exceeded the adequate yearly progress level established under section 1111(b)(2);

`(iii) significantly narrowed the gaps between minority and nonminority students, and between economically disadvantaged and noneconomically disadvantaged students;

`(iv) raised all students enrolled in schools within the local educational agency to the proficient standard level prior to 10 years from the date of enactment of the Education Reinvestment Act; or

`(v) significantly increased the percentage of core classes being taught by fully qualified teachers teaching in schools receiving funds under part A of title I; or

`(B) not later than December 31, 2003, ensured that all teachers teaching in the elementary schools and secondary schools served by the local educational agencies are fully qualified; or

`(C) have attained consistently high achievement in another area that the State deems appropriate to reward.

`(2) SCHOOL-BASED PERFORMANCE AWARDS- A local educational agency may use funds made available under paragraph (1) for activities such as school-based performance awards.

`(3) RESERVATION FOR ADMINISTRATIVE EXPENSES- Each local educational agency receiving an award under paragraph (1) may set aside not more than 1/2 of 1 percent of the award for the planning and administrative costs of carrying out this section, including the costs of distributing awards to eligible elementary schools and secondary schools, teachers, and principals.

`(c) SCHOOL REWARDS- Each local educational agency receiving an award under subsection (b) shall consult with teachers and principals to develop a reward system, and shall use the award funds--

`(1) to reward individual schools that demonstrate high performance with respect to--

`(A) increasing the academic achievement of all students;

`(B) narrowing the academic achievement gap described in section 1111(b)(2)(B)(vii);

`(C) improving teacher quality;

`(D) increasing high-quality professional development for teachers, principals, and administrators; or

`(E) improving the English proficiency of limited English proficient students;

`(2) to reward collaborative teams of teachers, or teams of teachers and principals, that--

`(A) significantly increase the annual performance of low-performing students; or

`(B) significantly improve in a fiscal year the English proficiency of limited English proficient students;

`(3) to reward principals who successfully raise the performance of a substantial number of low-performing students to high academic levels;

`(4) to develop or implement school district-wide programs or policies to increase the level of student performance on State assessments that are aligned with State content standards; and

`(5) to reward schools for consistently high achievement in another area that the local educational agency deems appropriate to reward.

`(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this section $200,000,000 for fiscal year 2001, and such sums as may be necessary for each of the 4 succeeding fiscal years.

`(e) DEFINITION- The term `low-performing student' means students who are below the basic State standard level.

`SEC. 7003. SUPPLEMENT NOT SUPPLANT.

`A State educational agency and local educational agency shall use funds under this title to supplement, and, not supplant, Federal, State, and local funds that, in the absence of funds under this title, would otherwise be spent for activities of the type described in section 7002.

`SEC. 7004. SECRETARY'S ACTIVITIES.

`(a) IN GENERAL- Notwithstanding any other provision of this Act, from amounts appropriated under subsection (b) and not reserved under subsection (c), the Secretary may--

`(1) support activities of the National Board for Professional Teaching Standards;

`(2) study and disseminate information regarding model programs assisted under this Act;

`(3) provide training and technical assistance to States, local educational agencies, elementary schools and secondary schools, Indian tribes, and

other recipients of grant funds under this Act that are carrying out activities assisted under this Act, including entering into contracts or cooperative agreements with public or private nonprofit entities or consortia of such entities, in order to provide comprehensive training and technical assistance related to the administration and implementation of activities assisted under this Act;

`(4) support activities that will promote systemic education reform at the State and local levels;

`(5) award grants or contracts to public or private nonprofit entities to enable the entities--

`(A) to develop and disseminate exemplary reading, mathematics, science, and technology educational practices, and instructional materials to States, local educational agencies, and elementary schools and secondary schools; and

`(B) to provide technical assistance for the implementation of teaching methods and assessment tools for use by elementary schools and secondary school students, teachers, and administrators;

`(6) disseminate information on models of value-added assessments;

`(7) award a grant or contract to a public or private nonprofit entity or consortium of such entities for the development and dissemination of exemplary programs and curricula for accelerated and advanced learning for all students, including gifted and talented students;

`(8) award a grant or contract with Reading Is Fundamental, Inc. and other public or private nonprofit entities to support and promote programs which include the distribution of inexpensive books to students and literacy activities that motivate children to read; and

`(9) provide assistance to States--

`(A) by assisting in the development of English language development standards and high-quality assessments, if requested by a State participating in activities under subtitle A of title III; and

`(B) by developing native language tests for limited English proficient students that a State may administer to such students to assess student achievement in at least reading, science, and mathematics, consistent with section 1111.

`(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this section $150,000,000 for fiscal year 2001, and such sums as may be necessary for each of the 4 succeeding fiscal years.

`(c) RESERVATION- From the amounts appropriated under subsection (b) the Secretary shall reserve $10,000,000 for the purposes of carrying out activities under section 1202(c).'.

TITLE VIII--GENERAL PROVISIONS AND REPEALS

SEC. 801. REPEALS, TRANSFERS, AND REDESIGNATIONS REGARDING TITLES VIII AND XIV.

(a) IN GENERAL- The Act (20 U.S.C. 6301 et seq.) is amended--

(1) by inserting after title VII the following:

`TITLE VIII--GENERAL PROVISIONS';

(2) by repealing sections 14514 and 14603 (20 U.S.C. 8904, 8923);

(3)(A) by transferring title XIV (20 U.S.C. 8801 et seq.) to title VIII and inserting such title after the title heading for title VIII; and

(B) by striking the title heading for title XIV;

(4)(A) by redesignating part H of title VIII (as redesignated by paragraph (3)) as part I of title VIII; and

(B) by redesignating the references to part H of title VIII as references to part I of title VIII;

(5) by inserting after part G of title VIII the following:

`PART H--SUPPLEMENT, NOT SUPPLANT

`SEC. 8801. SUPPLEMENT, NOT SUPPLANT.

`A State educational agency or local educational agency shall use funds received under the Act to supplement, and not supplant, State and local funds that, in the absence of funds under this Act, would otherwise be spent for activities under this Act.';

(6) by redesignating the references to title XIV as references to title VIII;

(7)(A) by redesignating sections 14101 through 14103 (20 U.S.C. 8801, 8803) (as transferred by paragraph (3)) as sections 8101 through 8103, respectively; and

(B) by redesignating the references to such sections 14101 through 14103 as references to sections 8101 through 8103, respectively;

(8)(A) by redesignating sections 14201 through 14206 (20 U.S.C. 8821, 8826) (as transferred by paragraph (3)) as sections 8201 through 8206, respectively; and

(B) by redesignating the references to such sections 14201 through 14206 as references to sections 8201 through 8206, respectively;

(9)(A) by redesignating sections 14301 through 14307 (20 U.S.C. 8851, 8857) (as transferred by paragraph (3)) as sections 8301 through 8307, respectively; and

(B) by redesignating the references to such sections 14301 through 14307 as references to sections 8301 through 8307, respectively;

(10)(A) by redesignating section 14401 (20 U.S.C. 8881) (as transferred by paragraph (3)) as section 8401; and

(B) by redesignating the references to such section 14401 as references to section 8401;

(11)(A) by redesignating sections 14501 through 14513 (20 U.S.C. 8891, 8903) (as transferred by paragraph (3)) as sections 8501 through 8513, respectively; and

(B) by redesignating the references to such sections 14501 through 14513 as references to sections 8501 through 8513, respectively;

(12)(A) by redesignating sections 14601 and 14602 (20 U.S.C. 8921, 8922) (as transferred by

paragraph (3)) as sections 8601 and 8602, respectively; and

(B) by redesignating the references to such sections 14601 and 14602 as references to sections 8601 and 8602, respectively;

(13)(A) by redesignating section 14701 (20 U.S.C. 8941) (as transferred by paragraph (3)) as section 8701; and

(B) by redesignating the references to such section 14701 as references to section 8701; and

(14)(A) by redesignating sections 14801 and 14802 (20 U.S.C. 8961, 8962) (as transferred by paragraph (3)) as sections 8901 and 8902, respectively; and

(B) by redesignating the references to such sections 14801 and 14802 as references to sections 8901 and 8902, respectively.

(b) AMENDMENTS- Title VIII (as so transferred and redesignated) is amended--

(1) in section 8101(10) (as redesignated by subsection (a)(7))--

(A) by striking subparagraphs (C) through (F); and

(B) by adding after subparagraph (B) the following:

`(C) part A of title II;

`(D) part A of title III; and

`(E) title IV.';

(2) in section 8102 (as redesignated by subsection (a)(7)), by striking `VIII' and inserting `V';

(3) in section 8201 (as redesignated by subsection (a)(8))--

(A) in subsection (a)(2), by striking `, and administrative funds under section 308(c) of the Goals 2000: Educate America Act'; and

(B) by striking subsection (f);

(4) in section 8203(b) (as redesignated by subsection (a)(8)), by striking `Improving America's Schools Act of 1994' and inserting `Education Reinvestment Act';

(5) in section 8204 (as redesignated by subsection (a)(8))--

(A) by striking subsection (b); and

(B) in subsection (a)--

(i) in paragraph (2)--

(I) in the matter preceding subparagraph (A), by striking `1995' and inserting `2001';

(II) in subparagraph (B), by inserting `professional development,' after `curriculum development,'; and

(ii) in paragraph (4)--

(I) by striking `and section 410(b) of the Improving America's Schools Act of 1994'; and

(II) by striking `paragraph (2)' and inserting `subsection (a)(2)';

(III) by striking the following:

`(4) RESULTS- ' and inserting the following:

`(b) RESULTS- ';

(IV) by striking the following:

`(A) develop' and inserting the following:

`(1) develop'; and

(V) by striking the following:

`(B) within' and inserting the following:

`(2) within';

(6) in section 8205(a)(1) (as redesignated by subsection (a)(8)), by striking `part A of title IX' and inserting `part B of title III';

(7) in section 8206 (as redesignated by subsection (a)(8))--

(A) by striking `(a) UNNEEDED PROGRAM FUNDS- '; and

(B) by striking subsection (b);

(8) in section 8302(a)(2) (as redesignated by subsection (a)(9))--

(A) by striking subparagraph (C); and

(B) by redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively;

(9) in section 8304(b) (as redesignated by subsection (a)(9)), by striking `Improving America's Schools Act of 1994' and inserting `Education Reinvestment Act';

(10) in section 8401 (as redesignated by subsection (a)(10))--

(A) in subsection (a), by striking `Except as provided in subsection (c),' and inserting `Notwithstanding any other provision regarding waivers in this Act and except as provided in subsection (c),'; and

(B) in subsection (c)(8), by striking `part C of title X' and inserting `part B of title IV';

(11) in section 8502 (as redesignated by subsection (a)(11)), by striking `VIII' and inserting `V';

(12) in section 8503(b)(1) (as redesignated by subsection (a)(11))--

(A) by striking subparagraphs (B) through (E);

(B) by redesignating subparagraph (A) as subparagraph (B);

(C) by inserting before subparagraph (B) the following:

`(A) part A of title I;'; and

(D) by adding at the end the following:

`(C) title II;

`(D) title III;

`(E) title VI.'; and

(13) in section 8506(d) (as redesignated by subsection (a)(11)), by striking `Improving America's Schools Act of 1994' and inserting `Education Reinvestment Act';

(14) in section 8513 (as redesignated by subsection (a)(11)), by striking `Improving America's Schools Act of 1994' each place it appears and inserting `Education Reinvestment Act';

(15) in section 8601 (as redesignated by subsection (a)(12))--

(A) in subsection (b)(3)--

(i) in subparagraph (A), by striking `Improving America's Schools Act of

1994' and inserting `Education Reinvestment Act'; and

(ii) in subparagraph (B), by striking `Improving America's Schools Act' and inserting `Education Reinvestment Act'; and

(B) in subsection (f), by striking `Improving America's Schools Act of 1994' and inserting `Education Reinvestment Act'; and

(16) in section 8701(b) (as redesignated by subsection (a)(13))--

(A) in paragraph (1)--

(i) in subparagraph (B)--

(I) in clause (i), by striking `Improving America's Schools Act of 1994' and inserting `Education Reinvestment Act';

(II) in clause (ii), by striking `such as the initiatives under the Goals 2000: Educate America Act, and' and inserting `under'; and

(III) in clause (v), by striking `, the Advisory Council on Education Statistics, and the National Education Goals Panel' and inserting `and the Advisory Council on Education Statistics'; and

(ii) in subparagraph (C)(ii), by striking `the School-to-Work Opportunities Act of 1994, and the Goals 2000: Educate America Act' and inserting `and the School-to-Work Opportunities Act of 1994'; and

(B) in paragraph (3), by striking `1998' and inserting `2004'.

SEC. 802. OTHER REPEALS.

Titles V and XIII (20 U.S.C. 7201 et seq., and 8601 et seq.) and the Goals 2000: Educate America Act (20 U.S.C. 5801 et seq.) are repealed.

TITLE IX--TECHNOLOGY FOR EDUCATION

SEC. 901. TECHNOLOGY FOR EDUCATION.

Title X (20 U.S.C. 8001 et seq.) is amended to read as follows:

`SEC. 10101. SHORT TITLE.

`This title may be cited as the `Technology for Education Act of 2000'.

`PART A--TECHNOLOGY FOR EDUCATION OF ALL STUDENTS

`SEC. 10111. FINDINGS.

`The Congress finds that--

`(1) technology can produce far greater opportunities for all students to learn to high standards, promote efficiency and effectiveness in education, and help propel our Nation's school systems into very immediate and dramatic reform, without which our Nation will not meet the National Education Goals by the target year 2000;

`(2) the use of technology as a tool in the teaching and learning process is essential to the development and maintenance of a technologically literate citizenry and an internationally competitive workforce;

`(3) the acquisition and use of technology in education throughout the United States has been inhibited by--

`(A) the absence of Federal leadership;

`(B) the inability of many State and local educational agencies to invest in and support needed technologies;

`(C) the limited exposure of students and teachers to the power of technology as a cost-effective tool to improve student learning and achievement;

`(D) the lack of appropriate electrical and telephone connections in the classroom; and

`(E) the limited availability of appropriate technology-enhanced curriculum, instruction, professional development, and administrative support resources and services in the educational marketplace;

`(4) policies at the Federal, State, and local levels concerning technology in education must address disparities in the availability of technology to different groups of students, give priority to serving students in greatest need, and recognize that educational telecommunications and technology can address educational equalization concerns and school restructuring needs by providing universal access to high-quality teaching and programs, particularly in urban and rural areas;

`(5) the increasing use of new technologies and telecommunications systems in business has increased the gap between schooling and work force preparation, and underscores the need for technology policies at the Federal, State, tribal, and local levels that address preparation for school-to-work transitions;

`(6) technology can enhance the ongoing professional development of teachers and administrators by providing constant access to updated research in teaching and learning by means of telecommunications, and, through exposure to technology advancements, keep teachers and administrators excited and knowledgeable about unfolding opportunities for the classroom;

`(7) planned and creative uses of technology, combined with teachers adequately trained in the use of technology, can reshape our Nation's traditional method of providing education and empower teachers to create an environment in which students are challenged through rigorous, rich classroom instruction provided at a pace suited to each student's learning style, and in which students have increased opportunities to develop higher order thinking and technical skills;

`(8) schools need new ways of financing the acquisition and maintenance of educational technology;

`(9) the needs for educational technology differ from State to State;

`(10) technology can provide students, parents, teachers, other education professionals, communities, and industry with increased opportunities for partnerships and with increased access to information, instruction, and educational services in schools and other settings, including homes, libraries, preschool and child-care facilities, adult and family education programs, and postsecondary institutions;

`(11) the Department, consistent with the overall national technology policy established by the President, must assume a vital leadership and coordinating role in developing the national vision and strategy to infuse advanced technology throughout all educational programs;

`(12) Federal support can ease the burden at the State and local levels by enabling the acquisition of advanced technology and initiating the development of teacher training and support as well as new educational products;

`(13) leadership at the Federal level should consider guidelines to ensure that educational technology is accessible to all users with maximum interoperability nationwide;

`(14) the rapidly changing nature of technology requires coordination and flexibility in Federal leadership; and

`(15) technology has the potential to assist and support the improvement of teaching and learning in schools and other settings.

`SEC. 10112. STATEMENT OF PURPOSE.

`The purpose of this part is to support a comprehensive system for the acquisition and use by elementary and secondary schools in the United States of technology and technology-enhanced curricula, instruction, and administrative support resources and services to improve the delivery of educational services. Such system shall include--

`(1) national leadership with respect to the need for, and the provision of, appropriate technology-enhanced curriculum, instruction, and administrative programs to improve learning in the United States, and to promote equal access for all students to educational opportunities in order to achieve the National Education Goals by the year 2000;

`(2) funding mechanisms which will support the development, interconnection, implementation, improvement, and maintenance of an effective educational technology infrastructure, including activities undertaken by State and local educational agencies to promote and provide equipment, training for teachers and school library and media personnel, and technical support;

`(3) support for technical assistance, professional development, information and resource dissemination, in order to help States, local educational agencies, teachers, school library and media personnel, and administrators successfully integrate technology into kindergarten through 12th grade classrooms and library media centers;

`(4) support for the development of educational and instructional programming in core subject areas, which shall address the National Education Goals;

`(5) strengthening and building upon, but not duplicating, existing telecommunications infrastructures dedicated to educational purposes;

`(6) development and evaluation of new and emerging educational technologies, telecommunications networks, and state-of-the-art educational technology products that promote the use of advanced technologies in the classroom and school library media center;

`(7) assessment data regarding state-of-the-art uses of technologies in United States education upon which commercial and noncommercial telecommunications entities, and governments can rely for decisionmaking about the need for, and provision of, appropriate technologies for education in the United States;

`(8) ensuring that uses of educational technology are consistent with the overall national technology policy established by the President, and ensuring that Federal technology-related policies and programs will facilitate the use of technology in education;

`(9) ensuring that activities supported under this part will form the basis for sound State and local decisions about investing in, sustaining, and expanding uses of technology in education;

`(10) establishing working guidelines to ensure maximum interoperability nationwide and ease of access for the emerging technologies so that no school system will be excluded from the technological revolution;

`(11) ensuring that, as technological advances are made, the educational uses of these advances are considered and their applications are developed; and

`(12) encouragement of collaborative relationships among the State agency for higher education, the State library administrative agency, the State telecommunications agency, and the State educational agency, in the area of technology support to strengthen the system of education.

`SEC. 10113. DEFINITIONS.

`For purposes of this title--

`(1) the term `adult education' has the same meaning given such term by section 203 of the Adult Education and Family Literacy Act;

`(2) the term `all students' means students from a broad range of backgrounds and circumstances, including disadvantaged students, students with diverse racial, ethnic, and cultural backgrounds, students with disabilities, students with limited English proficiency, students who have dropped out of school, and academically talented students;

`(3) the term `information infrastructure' means a network of communication systems designed to exchange information among all citizens and residents of the United States;

`(4) the term `instructional programming' means the full range of audio and video data, text, graphics, or additional state-of-the-art communications, including multimedia based resources distributed through interactive, command and control, or

passive methods for the purpose of education and instruction;

`(5) the terms `interoperable' and `interoperability' mean the ability to exchange easily data with, and connect to, other hardware and software in order to provide the greatest accessibility for all students and other users;

`(6) the term `Office' means the Office of Educational Technology;

`(7) the term `public telecommunications entity' has the same meaning given to such term by section 397(12) of the Communications Act of 1934;

`(8) the term `regional educational laboratory' means a regional educational laboratory supported under section 941(h) of the Educational, Research, Development, Dissemination, and Improvement Act of 1994;

`(9) the term `State educational agency' includes the Bureau of Indian Affairs for purposes of serving schools funded by the Bureau of Indian Affairs in accordance with this part;

`(10) the term `State library administrative agency' has the same meaning given to such term in section 3 of the Library Services and Construction Act; and

`(11) the term `technology' means state-of-the-art technology products and services, such as closed circuit television systems, educational television and radio programs and services, cable television, satellite, copper and fiber optic transmission, computer hardware and software, video and audio laser and CD-ROM discs, and video and audio tapes.

`SEC. 10114. AUTHORIZATION OF APPROPRIATIONS; FUNDING RULE.

`(a) AUTHORIZATION OF APPROPRIATIONS-

`(1) SUBPARTS 1, 2, AND 3- There are authorized to be appropriated $200,000,000 for fiscal year 2001 and such sums as may be necessary for each of the four succeeding fiscal years to carry out subparts 1, 2, and 3, of which--

`(A)(i) $3,000,000 shall be available to carry out subpart 1 (National Programs for Technology in Education) for any such year for which the amount appropriated under this subsection is less than $75,000,000; and

`(ii) $5,000,000 shall be available to carry out subpart 1 for any such year for which the amount appropriated under this subsection is equal to or greater than $75,000,000;

`(B) $10,000,000 shall be available to carry out subpart 3 (Regional Technical Support and Professional Development) for each such year; and

`(C) the remainder shall be available to carry out subpart 2 (State and Local Programs for School Technology Resources) for each such year.

`(2) SUBPART 4- For the purpose of carrying out subpart 4, there are authorized to be appropriated $50,000,000 for fiscal year 2001 and such sums as may be necessary for each of the four succeeding fiscal years.

`(b) FUNDING RULE-

`(1) APPROPRIATIONS OF LESS THAN $75,000,000- For any fiscal year for which the amount appropriated under subsection (a)(1) is less than $75,000,000, from the remainder of funds made available under subsection (a)(1)(C) the Secretary shall award grants for the National Challenge Grants in accordance with section 10136.

`(2) APPROPRIATIONS EQUAL TO OR GREATER THAN $75,000,000- For any fiscal year for which the amount appropriated under subsection (a)(1) is equal to or greater than $75,000,000, from the remainder of funds made available under subsection (a)(1)(C) the Secretary shall award grants to State educational agencies from allotments under section 10131, except that the Secretary may reserve, from such remainder, such funds as the Secretary determines necessary to meet outstanding obligations for such fiscal year to continue the National Challenge Grants for Technology awarded under section 10136.

`SEC. 10115. LIMITATION ON COSTS.

`Not more than 5 percent of the funds under this part that are made available to a recipient of funds under this part for any fiscal year may be used by such recipient for administrative costs or technical assistance.

`Subpart 1--National Programs for Technology in Education

`SEC. 10121. NATIONAL LONG-RANGE TECHNOLOGY PLAN.

`(a) IN GENERAL- The Secretary shall develop and publish not later than 12 months after the date of the enactment of the Education Reinvestment Act, and update when the Secretary determines appropriate, a national long-range plan that supports the overall national technology policy and carries out the purposes of this part.

`(b) PLAN REQUIREMENTS- The Secretary shall--

`(1) develop the national long-range plan in consultation with other Federal departments or agencies, State and local education practitioners and policymakers, experts in technology and the applications of technology to education, representatives of distance learning consortia, representatives of telecommunications partnerships receiving assistance under the Star Schools Act, and providers of technology services and products;

`(2) transmit such plan to the President and to the appropriate committees of the Congress; and

`(3) publish such plan in a form that is readily accessible to the public.

`(c) CONTENTS OF THE PLAN- The national long-range plan shall describe the Secretary's activities to promote the purposes of this title, including--

`(1) how the Secretary will encourage the effective use of technology to provide all students the opportunity to achieve State content standards and State student performance standards, especially through programs administered by the Department;

`(2) joint activities in support of the overall national technology policy with other Federal departments or agencies, such as the Office of Science and Technology Policy, the National Endowment for the

Humanities, the National Endowment for the Arts, the National Institute for Literacy, the National Aeronautics and Space Administration, the National Science Foundation, the Bureau of Indian Affairs, and the Departments of Commerce, Energy, Health and Human Services, and Labor--

`(A) to promote the use of technology in education, training, and lifelong learning, including plans for the educational uses of a national information infrastructure; and

`(B) to ensure that the policies and programs of such departments or agencies facilitate the use of technology for educational purposes, to the extent feasible;

`(3) how the Secretary will work with educators, State and local educational agencies, and appropriate representatives of the private sector to facilitate the effective use of technology in education;

`(4) how the Secretary will promote--

`(A) higher achievement of all students through the integration of technology into the curriculum;

`(B) increased access to the benefits of technology for teaching and learning for schools with a high number or percentage of children from low-income families;

`(C) the use of technology to assist in the implementation of State systemic reform strategies;

`(D) the application of technological advances to use in education;

`(E) increased access to high quality adult and family education services through the use of technology for instruction and professional development; and

`(F) increased opportunities for the professional development of teachers in the use of new technologies;

`(5) how the Secretary will determine, in consultation with appropriate individuals, organizations, industries, and agencies, the feasibility and desirability of establishing guidelines to facilitate an easy exchange of data and effective use of technology in education;

`(6) how the Secretary will promote the exchange of information among States, local educational agencies, schools, consortia, and other entities concerning the effective use of technology in education;

`(7) how the Secretary will utilize the outcomes of the evaluation undertaken pursuant to section 10123 to promote the purposes of this part; and

`(8) the Secretary's long-range measurable goals and objectives relating to the purposes of this part.

`SEC. 10122. FEDERAL LEADERSHIP.

`(a) PROGRAM AUTHORIZED- In order to provide Federal leadership in promoting the use of technology in education, the Secretary, in consultation with the National Science Foundation, the Department of Commerce, the United States National Commission on Libraries and Information Sciences, and other appropriate Federal agencies, may carry out activities designed to achieve the purposes of this part directly or by awarding grants or contracts competitively and pursuant to a peer review process to, or entering into contracts with, State educational agencies, local educational agencies, institutions of higher education, or other public and private nonprofit or for-profit agencies and organizations.

`(b) ASSISTANCE-

`(1) IN GENERAL- The Secretary shall provide assistance to the States to enable such States to plan effectively for the use of technology in all schools throughout the State in accordance with the purpose and requirements of section 317 of the Goals 2000: Educate America Act.

`(2) OTHER FEDERAL AGENCIES- For the purpose of carrying out coordinated or joint activities consistent with the purposes of this part, the Secretary may accept funds from, and transfer funds to, other Federal agencies.

`(c) USES OF FUNDS- The Secretary shall use funds made available to carry out this section for activities designed to carry out the purpose of this part, such as--

`(1) providing assistance to technical assistance providers to enable such providers to improve substantially the services such providers offer to educators regarding the uses of technology for education, including professional development;

`(2) providing development grants to technical assistance providers, to enable such providers to improve substantially the services such providers offer to educators on the educational uses of technology, including professional development;

`(3) consulting with representatives of industry, elementary and secondary education, higher education, adult and family education, and appropriate experts in technology and educational applications of

technology in carrying out activities under this subpart;

`(4) research on, and the development of, guidelines to facilitate maximum interoperability, efficiency and easy exchange of data for effective use of technology in education;

`(5) research on, and the development of, applications for education of the most advanced and newly emerging technologies which research shall be coordinated, when appropriate, with the Office of Educational Research and Improvement, and other Federal agencies;

`(6) the development, demonstration, and evaluation of the educational aspects of high performance computing and communications technologies and of the national information infrastructure, in providing professional development for teachers, school librarians, and other educators; enriching academic curricula for elementary and secondary schools; facilitating communications among schools, local educational agencies, libraries, parents, and local communities and in other such areas as the Secretary deems appropriate;

`(7) the development, demonstration, and evaluation of applications of existing technology in preschool education, elementary and secondary education, training and lifelong learning, and professional development of educational personnel;

`(8) the development and evaluation of software and other products, including multimedia television programming, that incorporate advances in technology and help achieve the National Education Goals, State content standards and State student performance standards;

`(9) the development, demonstration, and evaluation of model strategies for preparing teachers and other personnel to use technology effectively to improve teaching and learning;

`(10) the development of model programs that demonstrate the educational effectiveness of technology in urban and rural areas and economically distressed communities;

`(11) research on, and the evaluation of, the effectiveness and benefits of technology in education;

`(12) a biennial assessment of, and report to the public regarding, the uses of technology in elementary and secondary education throughout the United States upon which private businesses and Federal, State, tribal, and local governments may rely for decisionmaking about the need for, and provision of, appropriate technologies in schools, which assessment and report shall use, to the extent possible, existing information and resources;

`(13) conferences on, and dissemination of information regarding, the uses of technology in education;

`(14) the development of model strategies to promote gender equity concerning access to, and the use of, technology in the classroom;

`(15) encouraging collaboration between the Department and other Federal agencies in the development, implementation, evaluation and funding of applications of technology for education, as appropriate; and

`(16) such other activities as the Secretary determines will meet the purposes of this subpart.

`(d) NON-FEDERAL SHARE-

`(1) IN GENERAL- Subject to paragraphs (2) and (3), the Secretary may require any recipient of a grant or contract under this section to share in the cost of the activities assisted under such grant or contract, which non-Federal share shall be announced through a notice in the Federal Register and may be in the form of cash or in-kind contributions, fairly valued.

`(2) INCREASE- The Secretary may increase the non-Federal share that is required of a recipient of a grant or contract under this section after the first year such recipient receives funds under such grant or contract.

`(3) MAXIMUM- The non-Federal share required under this section shall not exceed 50 percent of the cost of the activities assisted pursuant to a grant or contract under this section.

`SEC. 10123. STUDY, EVALUATION AND REPORT OF FUNDING ALTERNATIVES.

`The Secretary, through the Office of Educational Technology, shall conduct a study to evaluate, and report to the Congress on, the feasibility of several alternative models for providing sustained and adequate funding for schools throughout the United States so that such schools are able to acquire and maintain technology-enhanced curriculum, instruction, and administrative support resources and services. Such report shall be submitted to the Congress not later than one year after the date of enactment of the Education Reinvestment Act.

`Subpart 2--State and Local Programs for School Technology Resources

`SEC. 10131. ALLOTMENT AND REALLOTMENT.

`(a) ALLOTMENT-

`(1) IN GENERAL- Except as provided in paragraph (2), each State educational agency shall be eligible to receive a grant under this subpart for a fiscal year in an amount which bears the same relationship to the amount made available under section 10114(a)(1)(C) for such year as the amount such State received under part A of title I for such year bears to the amount received for such year under such part by all States.

`(2) MINIMUM- No State educational agency shall be eligible to receive a grant under paragraph (1) in any fiscal year in an amount which is less than one-half of one percent of the amount made available under section 10115(a)(1)(C) for such year.

`(b) REALLOTMENT OF UNUSED FUNDS-

`(1) IN GENERAL- The amount of any State educational agency's allotment under subsection (a) for any fiscal year which the Secretary determines will not be required for such fiscal year to carry out this subpart shall be available for reallotment from time to time, on such dates during such year as the Secretary may determine, to other State educational agencies in proportion to the original allotments to such State educational agencies under subsection (a)

for such year, but with such proportionate amount for any of such other State educational agencies being reduced to the extent such amount exceeds the sum the Secretary estimates such State needs and will be able to use for such year.

`(2) OTHER REALLOTMENTS- The total of reductions under paragraph (1) shall be similarly reallotted among the State educational agencies whose proportionate amounts were not so reduced. Any amounts reallotted to a State educational agency under this subsection during a year shall be deemed a subpart of such agencies allotment under subsection (a) for such year.

`SEC. 10132. SCHOOL TECHNOLOGY RESOURCE GRANTS.

`(a) GRANTS TO STATES-

`(1) IN GENERAL- From amounts made available under section 10131, the Secretary, through the Office of Educational Technology, shall award grants to State educational agencies having applications approved under section 10133.

`(2) USE OF GRANTS- (A) Each State educational agency receiving a grant under paragraph (1) shall use such grant funds to award grants, on a competitive basis, to local educational agencies to enable such local educational agencies to carry out the activities described in section 10134.

`(B) In awarding grants under subparagraph (A), each State educational agency shall ensure that each such grant is of sufficient duration, and of sufficient size, scope, and quality, to carry out the purposes of this part effectively.

`(b) TECHNICAL ASSISTANCE- Each State educational agency receiving a grant under paragraph (1) shall--

`(1) identify the local educational agencies served by the State educational agency that--

`(A) have the highest number or percentage of children in poverty; and

`(B) demonstrate to such State educational agency the greatest need for technical assistance in developing the application under section 10133; and

`(2) offer such technical assistance to such local educational agencies.

`SEC. 10133. STATE APPLICATION.

`To receive funds under this subpart, each State educational agency shall submit a statewide educational technology plan which may include plans submitted under the Goals 2000: Educate America Act or other statewide technology plans which meet the requirements of this section. Such application shall be submitted to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may reasonably require. Each such application shall contain a systemic statewide plan that--

`(1) outlines long-term strategies for financing technology education in the State and describes how business, industry, and other public and private agencies, including libraries, library literacy programs, and institutions of higher education, can participate in the implementation, ongoing planning, and support of the plan; and

`(2) meets such other criteria as the Secretary may establish in order to enable such agency to provide assistance to local educational agencies that have the highest numbers or percentages of children in poverty and demonstrate the greatest need for technology, in order to enable such local educational agencies, for the benefit of school sites served by such local educational agencies, to carry out activities such as--

`(A) purchasing quality technology resources;

`(B) installing various linkages necessary to acquire connectivity;

`(C) integrating technology into the curriculum in order to improve student learning and achievement;

`(D) providing teachers and library media personnel with training or access to training;

`(E) providing administrative and technical support and services that improve student learning through enriched technology-enhanced resources, including library media resources;

`(F) promoting in individual schools the sharing, distribution, and application of educational technologies with demonstrated effectiveness;

`(G) assisting schools in promoting parent involvement;

`(H) assisting the community in providing literacy-related services;

`(I) establishing partnerships with private or public educational providers or other entities to serve the needs of children in poverty; and

`(J) providing assurances that financial assistance provided under this part shall supplement, not supplant, State and local funds.

`SEC. 10134. LOCAL USES OF FUNDS.

`Each local educational agency, to the extent possible, shall use the funds made available under section 10132(a)(2) for--

`(1) developing, adapting, or expanding existing and new applications of technology to support the school reform effort;

`(2) funding projects of sufficient size and scope to improve student learning and, as appropriate, support professional development, and provide administrative support;

`(3) acquiring connectivity linkages, resources, and services, including the acquisition of hardware and software, for use by teachers, students and school library media personnel in the classroom or in school library media centers, in order to improve student learning by supporting the instructional program offered by such agency to ensure that students in schools will have meaningful access on a regular basis to such linkages, resources and services;

`(4) providing ongoing professional development in the integration of quality educational technologies into school curriculum and long-term planning for implementing educational technologies;

`(5) acquiring connectivity with wide area networks for purposes of accessing information and

educational programming sources, particularly with institutions of higher education and public libraries; and

`(6) providing educational services for adults and families.

`SEC. 10135. LOCAL APPLICATIONS.

`Each local educational agency desiring assistance from a State educational agency under section 10132(a)(2) shall submit an application, consistent with the objectives of the systemic statewide plan, to the State educational agency at such time, in such manner and accompanied by such information as the State educational agency may reasonably require. Such application, at a minimum, shall--

`(1) include a strategic, long-range (three- to five-year), plan that includes--

`(A) a description of the type of technologies to be acquired, including specific provisions for interoperability among components of such technologies and, to the extent practicable, with existing technologies;

`(B) an explanation of how the acquired technologies will be integrated into the curriculum to help the local educational agency enhance teaching, training, and student achievement;

`(C) an explanation of how programs will be developed in collaboration with existing adult literacy services providers to maximize the use of such technologies;

`(D)(i) a description of how the local educational agency will ensure ongoing, sustained professional development for teachers, administrators, and school library media personnel served by the local educational agency to further the use of technology in the classroom or library media center; and

`(ii) a list of the source or sources of ongoing training and technical assistance available to schools, teachers and administrators served by the local educational agency, such as State technology offices, intermediate educational support units, regional educational laboratories or institutions of higher education;

`(E) a description of the supporting resources, such as services, software and print resources, which will be acquired to ensure successful and effective use of technologies acquired under this section;

`(F) the projected timetable for implementing such plan in schools;

`(G) the projected cost of technologies to be acquired and related expenses needed to implement such plan; and

`(H) a description of how the local educational agency will coordinate the technology provided pursuant to this subpart with other grant funds available for technology from State and local sources;

`(2) describe how the local educational agency will involve parents, public libraries, business leaders and community leaders in the development of such plan;

`(3) describe how the acquired instructionally based technologies will help the local educational agency--

`(A) promote equity in education in order to support State content standards and State student performance standards that may be developed; and

`(B) provide access for teachers, parents and students to the best teaching practices and curriculum resources through technology; and

`(4) describe a process for the ongoing evaluation of how technologies acquired under this section--

`(A) will be integrated into the school curriculum; and

`(B) will affect student achievement and progress toward meeting the National Education Goals and any challenging State content standards and State student performance standards that may be developed.

`(d) FORMATION OF CONSORTIA- A local educational agency for any fiscal year may apply for financial assistance as part of a consortium with other local educational agencies, institutions of higher education, intermediate educational units, libraries, or other educational entities appropriate to provide local programs. The State educational agency may assist in the formation of consortia among local educational agencies, providers of educational services for adults and families, institutions of higher education, intermediate educational units, libraries, or other appropriate educational entities to provide services for the teachers and students in a local educational agency at the request of such local educational agency.

`(e) COORDINATION OF APPLICATION REQUIREMENTS- If a local educational agency submitting an application for assistance under this section has developed a comprehensive education improvement plan, in conjunction with requirements under this Act or the Goals 2000: Educate America Act, the State educational agency may approve such plan, or a component of such plan, notwithstanding the requirements of subsection (e) if the State educational agency determines that such approval would further the purposes of this subpart.

`SEC. 10136. NATIONAL CHALLENGE GRANTS FOR TECHNOLOGY IN EDUCATION.

`(a) GRANTS AUTHORIZED-

`(1) IN GENERAL- From amounts made available under section 10115(b)(1) for any fiscal year the Secretary is authorized to award grants, on a competitive basis, to consortia having applications approved under subsection (d), which consortia shall include at least one local educational agency with a high percentage or number of children living below the poverty line and may include other local educational agencies, State educational agencies, institutions of higher education, businesses, academic content experts, software designers, museums, libraries, or other appropriate entities.

`(2) DURATION- Grants under this section shall be awarded for a period of 5 years.

`(b) USE OF GRANTS- Grants awarded under subsection (a) shall be used for activities similar to the activities described in section 10134.

`(c) PRIORITY- In awarding grants under this section, the Secretary shall give priority to consortia which demonstrate in the application submitted under subsection (d) that--

`(1) the project for which assistance is sought is designed to serve areas with a high number or percentage of disadvantaged students or the greatest need for educational technology;

`(2) the project will directly benefit students by, for example, integrating the acquired technologies into curriculum to help the local educational agency enhance teaching, training, and student achievement;

`(3) the project will ensure ongoing, sustained professional development for teachers, administrators, and school library media personnel served by the local educational agency to further the use of technology in the classroom or library media center;

`(4) the project will ensure successful, effective, and sustainable use of technologies acquired under this subsection; and

`(5) members of the consortia or other appropriate entities will contribute substantial financial and other resources to achieve the goals of the project.

`(d) APPLICATION- Each local educational agency desiring a grant under this section shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may reasonably require.

`SEC. 10137. FEDERAL ADMINISTRATION.

`(a) EVALUATION PROCEDURES- The Secretary shall develop procedures for State and local evaluations of the programs under this subpart.

`(b) EVALUATION SUMMARY- The Secretary shall submit to the Congress four years after the enactment of the Education Reinvestment Act a summary of the State evaluations of programs under this subpart in accordance with the provisions of section 14701.

`Subpart 3--Regional Technical Support and Professional Development

`SEC. 10141. REGIONAL TECHNICAL SUPPORT AND PROFESSIONAL DEVELOPMENT.

`(a) GRANTS AUTHORIZED-

`(1) AUTHORITY- The Secretary, through the Office of Educational Technology, shall make grants in accordance with the provisions of this section, to regional entities such as the Eisenhower Mathematics and Science Regional Consortia under part C of title XIII, the regional education laboratories, the comprehensive regional assistance centers, or such other regional entities as may be designated or established by the Secretary. In awarding grants under this section, the Secretary shall give priority to such consortia and shall ensure that each geographic region of the United States shall be served by such a consortium.

`(2) REQUIREMENTS- Each consortium receiving a grant under this section shall--

`(A) be composed of State educational agencies, institutions of higher education, nonprofit organizations, or a combination thereof;

`(B) in cooperation with State and local educational agencies, develop a regional program that addresses professional development, technical assistance, and information resource dissemination, with special emphasis on meeting the documented needs of educators and learners in the region; and

`(C) foster regional cooperation and resource and coursework sharing.

`(b) FUNCTIONS-

`(1) TECHNICAL ASSISTANCE- Each consortium receiving a grant under this section shall, to the extent practicable--

`(A) collaborate with State educational agencies and local educational agencies requesting collaboration, particularly in the development of strategies for assisting those schools with the highest numbers or percentages of disadvantaged students with little or no access to technology in the classroom;

`(B) provide information, in coordination with information available from the Secretary, to State educational agencies, local educational agencies, schools and adult education programs, on the types and features of various educational technology equipment and software available, evaluate and make recommendations on equipment and software that support the National Education Goals and are suited for a school's particular needs, and compile and share information regarding creative and effective applications of technology in the classroom and school library media centers in order to support the purposes of this part;

`(C) collaborate with such State educational agencies, local educational agencies, or schools requesting to participate in the tailoring of software programs and other supporting materials to meet challenging State content standards or challenging State student performance standards that may be developed; and

`(D) provide technical assistance to facilitate use of the electronic dissemination networks by State and local educational agencies and schools throughout the region.

`(2) PROFESSIONAL DEVELOPMENT- Each consortium receiving a grant under this section shall, to the extent practicable--

`(A) develop and implement, in collaboration with State educational agencies and institutions of higher education, technology-specific, ongoing professional development, such as--

`(i) intensive school year and summer workshops that use teachers, school librarians, and school library personnel to train other teachers, school librarians, and other school library media personnel; and

`(ii) distance professional development, including--

`(I) interactive training tele-courses using researchers, educators, and telecommunications personnel who have experience in developing, implementing, or operating educational and instructional technology as a learning tool;

`(II) onsite courses teaching teachers to use educational and instructional technology and to develop their own instructional materials for effectively incorporating technology and programming in their own classrooms;

`(III) methods for successful integration of instructional technology into the curriculum in order to improve student learning and achievement;

`(IV) video conferences and seminars which offer professional development through peer interaction with experts as well as other teachers using technologies in their classrooms; and

`(V) mobile education technology and training resources;

`(B) develop training resources that--

`(i) are relevant to the needs of the region and schools within the region;

`(ii) are relevant to the needs of adult literacy staff and volunteers, including onsite courses on how to--

`(I) use instructional technology; and

`(II) develop instructional materials for adult learning; and

`(iii) are aligned with the needs of teachers and administrators in the region;

`(C) establish a repository of professional development and technical assistance resources;

`(D) identify and link technical assistance providers to State and local educational agencies, as needed;

`(E) ensure that training, professional development, and technical assistance meet the needs of educators, parents, and students served by the region;

`(F) assist colleges and universities within the region to develop and implement preservice training programs for students enrolled in teacher education programs; and

`(G) assist local educational agencies and schools in working with community members and parents to develop support from communities and parents for educational technology programs and projects.

`(3) INFORMATION AND RESOURCE DISSEMINATION- Each consortium receiving a grant under this section shall, to the extent practicable--

`(A) assist State and local educational agencies in the identification and procurement of financial, technological and human resources needed to implement technology plans;

`(B) provide outreach and, at the request of a State or local educational agency, work with such agency to assist in the development and validation of instructionally based technology education resources; and

`(C) coordinate activities and establish partnerships with organizations and institutions of higher education that represent the interests of the region as such interests pertain to the application of technology in teaching, learning, instructional management, dissemination, collection and distribution of educational statistics, and the transfer of student information.

`(4) COORDINATION- Each consortium receiving a grant under this section shall work collaboratively, and coordinate the services the consortium provides, with appropriate regional and other entities assisted in whole or in part by the Department.

`Subpart 4--Product Development

`SEC. 10151. EDUCATIONAL TECHNOLOGY PRODUCT DEVELOPMENT.

`(a) PURPOSE- It is the purpose of this subpart to--

`(1) support development of curriculum-based learning resources using state-of-the-art technologies and techniques designed to improve student learning; and

`(2) support development of long-term comprehensive instructional programming and associated support resources that ensure maximum access by all educational institutions.

`(b) FEDERAL ASSISTANCE AUTHORIZED-

`(1) IN GENERAL- The Secretary shall provide assistance, on a competitive basis, to eligible consortia to enable such entities to develop, produce, and distribute state-of-the-art technology-enhanced instructional resources and programming for use in the classroom or to support professional development for teachers.

`(2) GRANTS AND LOANS AUTHORIZED- In carrying out the purposes of this section, the Secretary is authorized to pay the Federal share of the cost of the development, production, and distribution of state-of-the-art technology enhanced instructional resources and programming--

`(A) by awarding grants to, or entering into contracts or cooperative agreements with, eligible consortia; or

`(B) by awarding loans to eligible consortia which--

`(i) shall be secured in such manner and be repaid within such period, not exceeding 20 years, as may be determined by the Secretary;

`(ii) shall bear interest at a rate determined by the Secretary which shall be not more than the total of one-quarter of 1 percent per annum added to the rate of interest paid by the Secretary on funds obtained from the Secretary of the Treasury; and

`(iii) may be forgiven by the Secretary, in an amount not to exceed 25 percent of the total loan, under such terms and conditions as the Secretary may consider appropriate.

`(3) MATCHING REQUIREMENT- The Secretary may require any recipient of a grant or contract under this subpart to share in the cost of the activities assisted under such grant or contract, which non-Federal share shall be announced through a notice in the Federal Register and may be in the form of cash or in-kind contributions, fairly valued.

`(4) ELIGIBLE CONSORTIUM- For the purpose of this subsection, the term `eligible consortium' means a consortium--

`(A) that shall include--

`(i) a State or local educational agency; and

`(ii) a business, industry, or telecommunications entity; and

`(B) that may include--

`(i) a public or private nonprofit organization; or

`(ii) a postsecondary institution.

`(5) PRIORITIES- In awarding assistance under this section, the Secretary shall give priority to applications describing programs or systems that--

`(A) promote the acquisition of higher-order thinking skills and promise to raise the achievement levels of all students, particularly disadvantaged students who are not realizing their potential;

`(B) are aligned with challenging State content standards and State and local curriculum frameworks;

`(C) may be adapted and applied nationally at a reasonable cost over a broad technology platform;

`(D) convert technology resources developed with support from the Department of Defense and other Federal agencies for effective use in the classroom;

`(E) show promise of reducing the costs of providing high-quality instruction;

`(F) show promise of expanding access to high-quality instruction in content areas which would otherwise not be available to students in rural and urban communities or who are served by other educational agencies with limited financial resources;

`(G) are developed in consultation with classroom teachers;

`(H) are developed through consultation and collaboration with appropriate education entities in designing the product to ensure relevance to the voluntary national content standards, the voluntary national student performance standards and State curriculum frameworks; and

`(I) are developed so that the product can be adapted for use by adults in need of literacy services, including English as a second language and preparation for a secondary school diploma or its recognized equivalent.

`(6) REQUIREMENTS FOR FEDERAL ASSISTANCE- Each eligible consortium desiring Federal assistance under this section shall submit an application to the Secretary at such time and in such manner as the Secretary may prescribe. Each application shall include--

`(A) a description of how the product will improve the achievement levels of students;

`(B) a description of how the activities assisted under this section will promote professional development of teachers and administrators in the uses and applications of the product, including the development of training materials;

`(C) a description of design, development, field testing, evaluation, and distribution of products, where appropriate;

`(D) an assurance that the product shall effectively serve a significant number or percentage of economically disadvantaged students;

`(E) plans for dissemination of products to a wide audience of learners;

`(F) a description of how the product can be adapted for use by students with disabilities including provisions for closed captioning or descriptive video, where appropriate;

`(G) a description of how ownership and rights to the use and marketing of any product developed by the consortium, including intellectual property rights, will be allocated among consortium participants; and

`(H) a description of the contributions, including services and funds, to be made by each member of the consortium, and how any revenues derived from the sale of any product developed by the consortium shall be distributed.

`(c) CONSUMER REPORT- The Secretary shall provide for the independent evaluation of products developed under this section and shall disseminate information about products developed pursuant to provisions of this section to State and local educational agencies, and other organizations or individuals that the Secretary determines to be appropriate, through print and electronic media that are accessible to the education community at large.

`(d) PROCEEDS- The Secretary shall not prohibit an eligible consortium or any of the members of such consortium from receiving financial benefits from the distribution of any products resulting from the assistance received under this section. Notwithstanding any other provision of law, any profits or royalties received by a State educational agency, local educational agency, or other nonprofit member of an eligible consortium receiving assistance under this section shall be used to support further development of curriculum-based learning resources, services, and programming or to provide access to such products for a wider audience.

`PART B--STAR SCHOOLS PROGRAM

`SEC. 10201. SHORT TITLE.

`This part may be cited as the `Star Schools Act'.

`SEC. 10202. FINDINGS.

`The Congress finds that--

`(1) the Star Schools program has helped to encourage the use of distance learning strategies to serve multi-State regions primarily by means of satellite and broadcast television;

`(2) in general, distance learning programs have been used effectively to provide students in small, rural, and isolated schools with courses and instruction, such as science and foreign language instruction, that the local educational agency is not otherwise able to provide; and

`(3) distance learning programs may also be used to--

`(A) provide students of all ages in all types of schools and educational settings with greater access to high-quality instruction in the full range of core academic subjects that will enable such students to meet challenging, internationally competitive, educational standards;

`(B) expand professional development opportunities for teachers;

`(C) contribute to achievement of the National Education Goals; and

`(D) expand learning opportunities for everyone.

`SEC. 10203. PURPOSE.

`It is the purpose of this part to encourage improved instruction in mathematics, science, and foreign languages as well as other subjects, such as literacy skills and vocational education, and to serve underserved populations, including the disadvantaged, illiterate, limited-English proficient, and individuals with disabilities, through a star schools program under which grants are made to eligible telecommunication partnerships to enable such partnerships to--

`(1) develop, construct, acquire, maintain and operate telecommunications audio and visual facilities and equipment;

`(2) develop and acquire educational and instructional programming; and

`(3) obtain technical assistance for the use of such facilities and instructional programming.

`SEC. 10204. GRANTS AUTHORIZED.

`(a) AUTHORITY- The Secretary, through the Office of Educational Technology, is authorized to make grants, in accordance with the provisions of this part, to eligible entities to pay the Federal share of the cost of--

`(1) the development, construction, acquisition, maintenance and operation of telecommunications facilities and equipment;

`(2) the development and acquisition of live, interactive instructional programming;

`(3) the development and acquisition of preservice and inservice teacher training programs based on established research regarding teacher-to-teacher mentoring, effective skill transfer, and ongoing, in-class instruction;

`(4) the establishment of teleconferencing facilities and resources for making interactive training available to teachers;

`(5) obtaining technical assistance; and

`(6) the coordination of the design and connectivity of telecommunications networks to reach the greatest number of schools.

`(b) DURATION-

`(1) IN GENERAL- The Secretary shall award grants pursuant to subsection (a) for a period of 5 years.

`(2) RENEWAL- Grants awarded pursuant to subsection (a) may be renewed for one additional three-year period.

`(c) AUTHORIZATION OF APPROPRIATIONS-

`(1) IN GENERAL- There are authorized to be appropriated $35,000,000 for fiscal year 2001, and such sums as may be necessary for each of the four succeeding fiscal years, to carry out this part.

`(2) AVAILABILITY- Funds appropriated pursuant to the authority of subsection (a) shall remain available until expended.

`(d) LIMITATIONS-

`(1) IN GENERAL- A grant under this section shall not exceed--

`(A) five years in duration; and

`(B) $10,000,000 in any one fiscal year.

`(2) INSTRUCTIONAL PROGRAMMING- Not less than 25 percent of the funds available to the Secretary in any fiscal year under this part shall be used for the cost of instructional programming.

`(3) SPECIAL RULE- Not less than 50 percent of the funds available in any fiscal year under this part shall be used for the cost of facilities, equipment, teacher training or retraining, technical assistance, or programming, for local educational agencies which are eligible to receive asssistance under part A of title I.

`(e) FEDERAL SHARE-

`(1) IN GENERAL- The Federal share of the cost of projects funded under this section shall not exceed--

`(A) 75 percent for the first and second years for which an eligible telecommunications partnership receives a grant under this part;

`(B) 60 percent for the third and fourth such years; and

`(C) 50 percent for the fifth such year.

`(2) REDUCTION OR WAIVER- The Secretary may reduce or waive the requirement of the non-Federal share under paragraph (1) upon a showing of financial hardship.

`(f) AUTHORITY TO ACCEPT FUNDS FROM OTHER AGENCIES- The Secretary is authorized to accept funds from other Federal departments or agencies to carry out the purposes of this section, including funds for the purchase of equipment.

`(g) COORDINATION- The Department, the National Science Foundation, the Department of Agriculture, the Department of Commerce, and any other Federal department or agency operating a telecommunications network for educational purposes, shall coordinate the activities assisted under this part with the activities of such department or agency relating to a telecommunications network for educational purposes.

`(h) CLOSED CAPTIONING AND DESCRIPTIVE VIDEO- Each entity receiving funds under this part is encouraged to provide--

`(1) closed captioning of the verbal content of such program, where appropriate, to be broadcast by way of line 21 of the vertical blanking interval, or by way of comparable successor technologies; and

`(2) descriptive video of the visual content of such program, as appropriate.

`SEC. 10205. ELIGIBLE ENTITIES.

`(a) ELIGIBLE ENTITIES-

`(1) REQUIRED PARTICIPATION- The Secretary may make a grant under section 10204 to any eligible entity, if at least one local educational agency is participating in the proposed project.

`(2) ELIGIBLE ENTITY- For the purpose of this part, the term `eligible entity' may include--

`(A) a public agency or corporation established for the purpose of developing and operating telecommunications networks to enhance educational opportunities provided by educational institutions, teacher training centers, and other entities, except that any such agency or corporation shall represent the interests of elementary and secondary schools that are eligible to participate in the program under part A of title I; or

`(B) a partnership that will provide telecommunications services and which includes 3 or more of the following entities, at least 1 of which shall be an agency described in clause (i) or (ii):

`(i) a local educational agency that serves a significant number of elementary and secondary schools that are eligible for assistance under part A of title I, or elementary and secondary schools operated or funded for Indian children by the Department of the Interior eligible under section 1121(b)(2);

`(ii) a State educational agency;

`(iii) adult and family education programs;

`(iv) an institution of higher education or a State higher education agency;

`(v) a teacher training center or academy that--

`(I) provides teacher pre-service and in-service training; and

`(II) receives Federal financial assistance or has been approved by a State agency;

`(vi) (I) a public or private entity with experience and expertise in the planning and operation of a telecommunications network, including entities involved in telecommunications through satellite, cable, telephone, or computer; or

`(II) a public broadcasting entity with such experience; or

`(vii) a public or private elementary or secondary school.

`(b) SPECIAL RULE- An eligible entity receiving assistance under this part shall be organized on a statewide or multistate basis.

`SEC. 10206. APPLICATIONS.

`(a) APPLICATIONS REQUIRED- Each eligible entity which desires to receive a grant under section 10204 shall submit an application to the Secretary, at such time, in such manner, and containing or accompanied by such information as the Secretary may reasonably require.

`(b) STAR SCHOOL AWARD APPLICATIONS- Each application submitted pursuant to subsection (a) shall--

`(1) describe how the proposed project will assist in achieving the National Education Goals, how such project will assist all students to have an opportunity to learn to challenging State standards, how such project will assist State and local educational reform efforts, and how such project will contribute to creating a high quality system of lifelong learning;

`(2) describe the telecommunications facilities and equipment and technical assistance for which assistance is sought, which may include--

`(A) the design, development, construction, acquisition, maintenance and operation of State or multistate educational telecommunications networks and technology resource centers;

`(B) microwave, fiber optics, cable, and satellite transmission equipment or any combination thereof;

`(C) reception facilities;

`(D) satellite time;

`(E) production facilities;

`(F) other telecommunications equipment capable of serving a wide geographic area;

`(G) the provision of training services to instructors who will be using the facilities and

equipment for which assistance is sought, including training in using such facilities and equipment and training in integrating programs into the classroom curriculum; and

`(H) the development of educational and related programming for use on a telecommunications network;

`(3) in the case of an application for assistance for instructional programming, describe the types of programming which will be developed to enhance instruction and training and provide assurances that such programming will be designed in consultation with professionals (including classroom teachers) who are experts in the applicable subject matter and grade level;

`(4) describe how the eligible entity has engaged in sufficient survey and analysis of the area to be served to ensure that the services offered by the eligible entity will increase the availability of courses of instruction in English, mathematics, science, foreign languages, arts, history, geography, or other disciplines;

`(5) describe the professional development policies for teachers and other school personnel to be implemented to ensure the effective use of the telecommunications facilities and equipment for which assistance is sought;

`(6) describe the manner in which historically underserved students (such as students from low-income families, limited English proficient students, students with disabilities, or students who have low literacy skills) and their families, will participate in the benefits of the telecommunications facilities, equipment, technical assistance, and programming assisted under this part;

`(7) describe how existing telecommunications equipment, facilities, and services, where available, will be used;

`(8) provide assurances that the financial interest of the United States in the telecommunications facilities and equipment will be protected for the useful life of such facilities and equipment;

`(9) provide assurances that a significant portion of any facilities and equipment, technical assistance, and programming for which assistance is sought for elementary and secondary schools will be made available to schools or local educational agencies that have a high number or percentage of children eligible to be counted under part A of title I;

`(10) provide assurances that the applicant will use the funds provided under this part to supplement and not supplant funds otherwise available for the purposes of this part;

`(11) if any member of the consortia receives assistance under subpart 3 of part A, describe how funds received under this part will be coordinated with funds received for educational technology in the classroom under such section;

`(12) describe the activities or services for which assistance is sought, such as--

`(A) providing facilities, equipment, training services, and technical assistance;

`(B) making programs accessible to students with disabilities through mechanisms such as closed captioning and descriptive video services;

`(C) linking networks around issues of national importance (such as elections) or to provide information about employment opportunities, job training, or student and other social service programs;

`(D) sharing curriculum resources between networks and development of program guides which demonstrate cooperative, cross-network listing of programs for specific curriculum areas;

`(E) providing teacher and student support services including classroom and training support materials which permit student and teacher involvement in the live interactive distance learning telecasts;

`(F) incorporating community resources such as libraries and museums into instructional programs;

`(G) providing professional development for teachers, including, as appropriate, training to early childhood development and Head Start teachers and staff and vocational education teachers and staff, and adult and family educators;

`(H) providing programs for adults to maximize the use of telecommunications facilities and equipment;

`(I) providing teacher training on proposed or established voluntary national content standards in mathematics and science and other disciplines as such standards are developed; and

`(J) providing parent education programs during and after the regular school day which reinforce a student's course of study and actively involve parents in the learning process;

`(13) describe how the proposed project as a whole will be financed and how arrangements for future financing will be developed before the project expires;

`(14) provide an assurance that a significant portion of any facilities, equipment, technical assistance, and programming for which assistance is sought for elementary and secondary schools will be made available to schools in local educational agencies that have a high percentage of children counted for the purpose of part A of title I;

`(15) provide an assurance that the applicant will provide such information and cooperate in any evaluation that the Secretary may conduct under this part; and

`(16) include such additional assurances as the Secretary may reasonably require.

`(c) PRIORITIES- The Secretary, in approving applications for grants authorized under section 10204, shall give priority to applications describing projects that--

`(1) propose high-quality plans to assist in achieving one or more of the National Education Goals, will provide instruction consistent with State

content standards, or will otherwise provide significant and specific assistance to States and local educational agencies undertaking systemic education reform;

`(2) will provide services to programs serving adults, especially parents, with low levels of literacy;

`(3) will serve schools with significant numbers of children counted for the purposes of part A of title I;

`(4) ensure that the eligible entity will--

`(A) serve the broadest range of institutions, programs providing instruction outside of the school setting, programs serving adults, especially parents, with low levels of literacy, institutions of higher education, teacher training centers, research institutes, and private industry;

`(B) have substantial academic and teaching capabilities, including the capability of training, retraining, and inservice upgrading of teaching skills and the capability to provide professional development;

`(C) provide a comprehensive range of courses for educators to teach instructional strategies for students with different skill levels;

`(D) provide training to participating educators in ways to integrate telecommunications courses into existing school curriculum;

`(E) provide instruction for students, teachers, and parents;

`(F) serve a multistate area; and

`(G) give priority to the provision of equipment and linkages to isolated areas; and

`(5) involve a telecommunications entity (such as a satellite, cable, telephone, computer, or public or private television stations) participating in the eligible entity and donating equipment or in-kind services for telecommunications linkages.

`(d) GEOGRAPHIC DISTRIBUTION- In approving applications for grants authorized under section 10204, the Secretary shall, to the extent feasible, ensure an equitable geographic distribution of services provided under this part.

`SEC. 10207. LEADERSHIP AND EVALUATION ACTIVITIES.

`(a) RESERVATION- From the amount appropriated pursuant to the authority of section 10204(c)(1) in each fiscal year, the Secretary may reserve not more than 5 percent of such amount for national leadership, evaluation, and peer review activities.

`(b) METHOD OF FUNDING- The Secretary may fund the activities described in subsection (a) directly or through grants, contracts, and cooperative agreements.

`(c) USES OF FUNDS-

`(1) LEADERSHIP- Funds reserved for leadership activities under subsection (a) may be used for--

`(A) disseminating information, including lists and descriptions of services available from grant recipients under this part; and

`(B) other activities designed to enhance the quality of distance learning activities nationwide.

`(2) EVALUATION- Funds reserved for evaluation activities under subsection (a) may be used to conduct independent evaluations of the activities assisted under this part and of distance learning in general, including--

`(A) analyses of distance learning efforts, including such efforts that are assisted under this part and such efforts that are not assisted under this part; and

`(B) comparisons of the effects, including student outcomes, of different technologies in distance learning efforts.

`(3) PEER REVIEW- Funds reserved for peer review activities under subsection (a) may be used for peer review of--

`(A) applications for grants under this part; and

`(B) activities assisted under this part.

`SEC. 10208. DEFINITIONS.

`As used in this part--

`(1) the term `educational institution' means an institution of higher education, a local educational agency, or a State educational agency;

`(2) the term `instructional programming' means courses of instruction and training courses for elementary and secondary students, teachers, and others, and materials for use in such instruction and training that have been prepared in audio and visual form on tape, disc, film, or live, and presented by means of telecommunications devices; and

`(3) the term `public broadcasting entity' has the same meaning given such term in section 397 of the Communications Act of 1934.

`SEC. 10209. ADMINISTRATIVE PROVISIONS.

`(a) CONTINUING ELIGIBILITY-

`(1) IN GENERAL- In order to be eligible to receive a grant under section 10204 for a second 3-year grant period an eligible entity shall demonstrate in the application submitted pursuant to section 10206 that such partnership shall--

`(A) continue to provide services in the subject areas and geographic areas assisted with funds received under this part for the previous 5-year grant period; and

`(B) use all grant funds received under this part for the second 3-year grant period to provide expanded services by--

`(i) increasing the number of students, schools or school districts served by the courses of instruction assisted under this part in the previous fiscal year;

`(ii) providing new courses of instruction; and

`(iii) serving new populations of underserved individuals, such as children or adults who are disadvantaged, have limited-English proficiency, are individuals with disabilities, are illiterate, or lack secondary school diplomas or their recognized equivalent.

`(2) SPECIAL RULE- Grant funds received pursuant to paragraph (1) shall be used to supplement and not supplant services provided by the grant recipient under this part in the previous fiscal year.

`(b) FEDERAL ACTIVITIES- The Secretary may assist grant recipients under section 10204 in acquiring satellite time, where appropriate, as economically as possible.

`SEC. 10210. OTHER ASSISTANCE.

`(a) SPECIAL STATEWIDE NETWORK-

`(1) IN GENERAL- The Secretary, through the Office of Educational Technology, may provide assistance to a statewide telecommunications network under this subsection if such network--

`(A) provides 2-way full motion interactive video and audio communications;

`(B) links together public colleges and universities and secondary schools throughout the State; and

`(C) meets any other requirements determined appropriate by the Secretary.

`(2) STATE CONTRIBUTION- A statewide telecommunications network assisted under paragraph (1) shall contribute, either directly or through private contributions, non-Federal funds equal to not less than 50 percent of the cost of such network.

`(b) SPECIAL LOCAL NETWORK-

`(1) IN GENERAL- The Secretary may provide assistance, on a competitive basis, to a local educational agency or consortium thereof to enable such agency or consortium to establish a high technology demonstration program.

`(2) PROGRAM REQUIREMENTS- A high technology demonstration program assisted under paragraph (1) shall--

`(A) include 2-way full motion interactive video, audio and text communications;

`(B) link together elementary and secondary schools, colleges, and universities;

`(C) provide parent participation and family programs;

`(D) include a staff development program; and

`(E) have a significant contribution and participation from business and industry.

`(3) SPECIAL RULE- Each high technology demonstration program assisted under paragraph (1) shall be of sufficient size and scope to have an effect on meeting the National Education Goals.

`(4) MATCHING REQUIREMENT- A local educational agency or consortium receiving a grant under paragraph (1) shall provide, either directly or through private contributions, non-Federal matching funds equal to not less than 50 percent of the amount of the grant.

`(c) TELECOMMUNICATIONS PROGRAMS FOR CONTINUING EDUCATION-

`(1) AUTHORITY- The Secretary is authorized to award grants, on a competitive basis, to eligible entities to enable such partnerships to develop and operate one or more programs which provide on-line access to educational resources in support of continuing education and curriculum requirements relevant to achieving a secondary school diploma or its recognized equivalent. The program authorized by this section shall be designed to advance adult literacy, secondary school completion and the acquisition of specified competency by the end of the 12th grade, as envisioned by the Goals 2000: Educate America Act.

`(2) APPLICATION- Each eligible entity desiring a grant under this section shall submit an application to the Secretary. Each such application shall--

`(A) demonstrate that the applicant will use publicly funded or free public telecommunications infrastructure to deliver video, voice and data in an integrated service to support and assist in the acquisition of a secondary school diploma or its recognized equivalent;

`(B) assure that the content of the materials to be delivered is consistent with the accreditation requirements of the State for which such materials are used;

`(C) incorporate, to the extent feasible, materials developed in the Federal departments and agencies and under appropriate federally funded projects and programs;

`(D) assure that the applicant has the technological and substantive experience to carry out the program; and

`(E) contain such additional assurances as the Secretary may reasonably require.

`PART C--READY-TO-LEARN TELEVISION

`SEC. 10301. READY-TO-LEARN.

`(a) IN GENERAL- The Secretary is authorized to award grants to or enter into contracts or cooperative agreements with eligible entities described in section 10302(b) to develop, produce, and distribute educational and instructional video programming for preschool and elementary school children and their parents in order to facilitate the achievement of the National Education Goals.

`(b) AVAILABILITY- In making such grants, contracts, or cooperative agreements, the Secretary shall ensure that recipients make programming widely available with support materials as appropriate to young children, their parents, child care workers, and Head Start providers to increase the effective use of such programming.

`SEC. 10302. EDUCATIONAL PROGRAMMING.

`(a) AWARDS- The Secretary shall award grants, contracts, or cooperative agreements to eligible entities to--

`(1) facilitate the development directly or through contracts with producers of children and family educational television programming, educational programming for preschool and elementary school children, and accompanying support materials and services that promote the effective use of such programming; and

`(2) enable such entities to contract with entities (such as public telecommunications entities and those funded under the Star Schools Act) so that programs developed under this section are disseminated and distributed to the widest possible audience appropriate to be served by the programming by the most appropriate distribution technologies.

`(b) ELIGIBLE ENTITIES- To be eligible to receive a grant, contract, or cooperative agreement under subsection (a), an entity shall be--

`(1) a nonprofit entity (including a public telecommunications entity) able to demonstrate a capacity for the development and distribution of educational and instructional television programming of high quality for preschool and elementary school children; and

`(2) able to demonstrate a capacity to contract with the producers of children's television programming for the purpose of developing educational television programming of high quality for preschool and elementary school children.

`(c) CULTURAL EXPERIENCES- Programming developed under this section shall reflect the recognition of diverse cultural experiences and the needs and experiences of both boys and girls in engaging and preparing young children for schooling.

`SEC. 10303. DUTIES OF SECRETARY.

`The Secretary is authorized--

`(1) to establish and administer a Special Projects of National Significance program to award grants, contracts, or cooperative agreements to public and nonprofit private entities, or local public television stations or such public television stations that are part of a consortium with one or more State educational agencies, local educational agencies, local schools, institutions of higher education, or community-based organizations of demonstrated effectiveness, for the purpose of--

`(A) addressing the learning needs of young children in limited English proficient households, and developing appropriate educational and instructional television programming to foster the school readiness of such children;

`(B) developing programming and support materials to increase family literacy skills among parents to assist parents in teaching their children and utilizing educational television programming to promote school readiness; and

`(C) identifying, supporting, and enhancing the effective use and outreach of innovative programs that promote school readiness;