[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4518 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4518

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 23, 2000

  Mr. Dooley of California (for himself and Mr. Smith of Washington) 
 introduced the following bill; which was referred to the Committee on 
                      Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
    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 ``Public Education 
Reinvestment, Reinvention, and Responsibility Act (Three R's)''.
    (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. 102. Findings, policy, and purpose.
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.
Sec. 502. Payments relating to Federal acquisition of real property.
Sec. 503. Payments for eligible federally connected children.
Sec. 504. Maximum amount of basic support payments.
Sec. 505. Basic support payments for heavily impacted local educational 
                            agencies.
Sec. 506. Basic support payments for local educational agencies 
                            affected by removal of Federal property.
Sec. 507. Additional payments for local educational agencies with high 
                            concentrations of children with severe 
                            disabilities.
Sec. 508. Application for payments under sections 8002 and 8003.
Sec. 509. Payments for sudden and substantial increases in attendance 
                            of military dependents.
Sec. 510. Construction.
Sec. 511. Federal administration.
Sec. 512. Administrative hearings and judicial review.
Sec. 513. Definitions.
Sec. 514. Authorization of appropriations.
Sec. 515. Effective date.
      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.

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) concentrate Federal funding around a small number of 
        central education goals, including compensatory education for 
        disadvantaged children and youth, teacher quality and 
        professional development, programs for limited English 
        proficient students, public school choice programs, innovative 
        educational programs, 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, by migrant 
                        status, by students with disabilities as 
                        compared to nondisabled students and by 
                        economically disadvantaged students as compared 
                        to students who are not economically 
                        disadvantaged (except that 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 3 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 Public Education 
                        Reinvestment, Reinvention, and Responsibility 
                        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 90 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 90 percent of the schools served by 
the local educational agency shall meet the State's criteria for 
adequate yearly progress.
                    ``(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 90 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, 
                        2003; 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 Public Education Reinvestment, Reinvention, 
        and Responsibility 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 Public Education Reinvestment, Reinvention, and 
        Responsibility 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, 2003 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 Public Education 
                Reinvestment, Reinvention, and Responsibility 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 Public Education 
                Reinvestment, Reinvention, and Responsibility 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 disaggregate 
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 Public Education Reinvestment, 
Reinvention, and Responsibility Act.
            ``(4) Public review.--Each State educational agency will 
        make publicly available each local educational agency plan.''.
    (f) Parental Notification for English Language Instruction.--
Section 1112 (20 U.S.C. 6312) is amended by adding at the end the 
following:
    ``(g) Parental Notification and Consent for English Language 
Instruction.--
            ``(1) Notification.--If a local educational agency uses 
        funds under this part to provide English language instruction 
        to limited English proficient students, the local educational 
        agency shall inform a parent or the parents of a child 
        participating in an English language assistance educational 
        program assisted under this part of--
                    ``(A) the reasons for the identification of the 
                child as being in need of English language instruction;
                    ``(B) the child's level of English proficiency, how 
                such level was assessed, and the status of the child's 
                academic achievement;
                    ``(C) how the English language assistance 
                educational program will specifically help the child 
                learn English and meet age-appropriate standards for 
                grade promotion and graduation;
                    ``(D) the specific exit requirements of the English 
                language assistance educational program;
                    ``(E) the expected rate of graduation from the 
                English language assistance educational program into 
                mainstream classes; and
                    ``(F) the expected rate of graduation from 
                secondary school if funds under this part are used for 
                children in secondary schools.
            ``(2) Consent; parental rights.--
                    ``(A) In general.--A parent or the parents of a 
                child participating in an English language assistance 
                educational program under this part shall--
                            ``(i) have the option of selecting among 
                        methods of instruction, if more than one method 
                        is offered in the program; and
                            ``(ii) have the right to have their child 
                        immediately removed from the program upon their 
                        request.
                    ``(B) Receipt of information.--A parent or the 
                parents of a child identified for participation in an 
                English language assistance educational program under 
                this part shall receive, in a manner and form 
                understandable to the parent or parents, the 
                information required by this subsection. At a minimum, 
                the parent or parents shall receive--
                            ``(i) timely information about English 
                        language assistance educational programs for 
                        limited English proficient children assisted 
                        under this part; and
                            ``(ii) if a parent of a participating child 
                        so desires, notice of opportunities for regular 
                        meetings of parents of limited English 
                        proficient children participating in English 
                        language assistance educational programs under 
                        this part for the purpose of formulating and 
                        responding to recommendations from such 
                        parents.
            ``(3) Basis for admission or exclusion.--No student shall 
        be admitted to or excluded from any federally assisted 
        education program solely on the basis of a surname or language 
        minority status.''.

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 ``Public 
                        Education Reinvestment, Reinvention, and 
                        Responsibility 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 ``Public Education Reinvestment, 
                        Reinvention, and Responsibility 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 Public 
                Education Reinvestment, Reinvention, and Responsibility 
                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 Public Education 
        Reinvestment, Reinvention, and Responsibility 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 Public Education Reinvestment, Reinvention and 
        Responsibility 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 identified.--
                            ``(i) Schools in school improvement on or 
                        before date of enactment.--In the case of a 
                        school identified for school improvement on or 
                        before the date of enactment of the Public 
                        Education Reinvestment, Reinvention, and 
                        Responsibility 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 school improvement after the date of 
                        enactment of the Public Education Reinvestment, 
                        Reinvention, and Responsibility Act, a local 
                        educational agency shall not later than 12 
                        months after the date on which a local 
                        educational agency identifies the school for 
                        school improvement 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 school 
                improvement, 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 
                school improvement 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 school improvement, 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 Public Education Reinvestment, Reinvention, and 
                Responsibility 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 Public 
                Education Reinvestment, Reinvention, and Responsibility 
                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 Public Education Reinvestment, Reinvention, and 
                Responsibility 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 Public Education 
Reinvestment, Reinvention, and Responsibility 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 Public Education Reinvestment, 
Reinvention, and Responsibility 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 Public Education 
                        Reinvestment, Reinvention, and Responsibility 
                        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 a 
                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 Public Education Reinvestment, Reinvention, and Responsibility 
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, 2003. 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 one year or more after the effective date of 
this section, 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 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 all 
paraprofessionals hired before the date that is one year after the 
effective date of the Public Education Reinvestment, Reinvention, and 
Responsibility Act, and working in a program supported with funds under 
this part shall, not later than 3 years after such effective date, 
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; or
                    ``(G) to provide assistance with extra curricular 
                activities which are noninstructional.
            ``(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 may use such funds to support ongoing training and 
        professional development to assist teachers and 
        paraprofessionals in satisfying the requirements of this 
        section.
            ``(2) Limitation on use of funds for paraprofessionals.--
                    ``(A) In general.--Beginning on the date of 
                enactment of the Public Education Reinvestment, 
                Reinvention, and Responsibility Act, a local 
                educational agency may not use funds received under 
                this part to fund any paraprofessional hired after such 
                date unless--
                            ``(i) the hiring is to fill a vacancy 
                        created by the departure of another 
                        paraprofessional funded under this part; or
                            ``(ii) the local educational agency can 
                        demonstrate that a significant influx of 
                        population has substantially increased student 
                        enrollment, or demonstrate an increased need 
                        for translators or assistance with parent 
                        involvement activities.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                to a local educational agency that can demonstrate to 
                the State that all core classes taught in the schools 
                served by the local educational agency are taught by 
                fully qualified 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, 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 Public Education 
        Reinvestment, Reinvention, and Responsibility 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 
                        Public Education Reinvestment, Reinvention, and 
                        Responsibility 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 Public Education Reinvestment, Reinvention, and 
Responsibility 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 
                        Public Education Reinvestment, Reinvention, and 
                        Responsibility 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 Public Education Reinvestment, 
                        Reinvention, and Responsibility 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 Public Education Reinvestment, Reinvention, and 
                Responsibility 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 an amount equal 
        to 85 percent of 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 Public 
                Education Reinvestment, Reinvention, and Responsibility 
                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.

    ``This part may be cited as the `Rural Education Initiative Act of 
2000'.

``SEC. 1602. FINDINGS.

    ``Congress finds the following:
            ``(1) The National Center for Educational Statistics 
        reports that 46 percent of our Nation's public 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.
            ``(3) Small school districts often cannot use Federal grant 
        funds distributed by formula because the formula allocation 
        does not provide enough revenue to carry out the program the 
        grant is intended to fund.
            ``(4) Rural schools often cannot compete for Federal 
        funding distributed by competitive grants because the schools 
        lack the personnel needed to prepare grant applications and the 
        resources to hire specialists in the writing of Federal grant 
        proposals.
            ``(5) A critical problem for rural school districts 
        involves the hiring and retention of qualified administrators 
        and certified teachers (especially in reading, science, and 
        mathematics). As a result, 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.

              ``Subpart 1--Small and Rural School Program

``SEC. 1611. FORMULA GRANT PROGRAM AUTHORIZED.

    ``(a) Alternative Uses.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, an eligible local educational agency may use the 
        applicable funding, that the agency is eligible to receive from 
        the State educational agency for a fiscal year, to support 
        local or statewide education reform efforts intended to improve 
        the academic achievement of elementary school and secondary 
        school students and the quality of instruction provided for the 
        students.
            ``(2) Notification.--An eligible local educational agency 
        shall notify the State educational agency of the local 
        educational agency's intention to use the applicable funding in 
        accordance with paragraph (1) not later than a date that is 
        established by the State educational agency for the 
        notification.
    ``(b) Eligibility.--
            ``(1) In general.--A local educational agency shall be 
        eligible to use the applicable funding in accordance with 
        subsection (a) if--
                    ``(A)(i) the total number of students in average 
                daily attendance at all of the schools served by the 
                local educational agency is less than 600; and
                    ``(ii) all of the schools served by the local 
                educational agency are located in a community with a 
                Rural-Urban Continuum Code of 6, 7, 8, or 9, as 
                determined by the Secretary of Agriculture; or
            ``(B) the agency meets the criteria established in 
        subparagraph (A)(i) and the Secretary, in accordance with 
        paragraph (2), grants the local educational agency's request to 
        waive the criteria described in subparagraph (A)(ii).
            ``(2) Certification.--The Secretary shall determine whether 
        or not to waive the criteria described in paragraph (1)(A)(ii) 
        based on certification provided by the local educational 
        agency, or the State educational agency on behalf of the local 
        educational agency, that the local educational agency is 
        located in an area defined as rural by a governmental agency of 
        the State.
    ``(c) Applicable Funding.--In this section, the term `applicable 
funding' means funds provided under each of titles II, IV, VI, parts A 
and C of title VII, and part I of title X.
    ``(d) Disbursal.--Each State educational agency that receives 
applicable funding for a fiscal year shall disburse the applicable 
funding to local educational agencies for alternative uses under this 
section for the fiscal year at the same time that the State educational 
agency disburses the applicable funding to local educational agencies 
that do not intend to use the applicable funding for such alternative 
uses for the fiscal year.
    ``(e) Supplement Not Supplant.--Funds used under this section shall 
be used to supplement and not supplant any other Federal, State, or 
local education funds that would otherwise be available for the purpose 
of this subpart.
    ``(f) Special Rule.--References in Federal law to funds for the 
provisions of law set forth in subsection (c) may be considered to be 
references to funds for this section.

``SEC. 1612. PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to award grants to 
eligible local educational agencies to enable the local educational 
agencies to support local or statewide education reform efforts 
intended to improve the academic achievement of elementary school and 
secondary school students and the quality of instruction provided for 
the students.
    ``(b) Eligibility.--
            ``(1) In general.--A local educational agency shall be 
        eligible to receive a grant under this section if--
                    ``(A)(i) the total number of students in average 
                daily attendance at all of the schools served by the 
                local educational agency is less than 600; and
                    ``(ii) all of the schools served by the local 
                educational agency are located in a community with a 
                Rural-Urban Continuum Code of 6, 7, 8, or 9, as 
                determined by the Secretary of Agriculture; or
            ``(B) the agency meets the criteria established in 
        subparagraph (A)(i) and the Secretary, in accordance with 
        paragraph (2), grants the local educational agency's request to 
        waive the criteria described in subparagraph (A)(ii).
            ``(2) Certification.--The Secretary shall determine whether 
        or not to waive the criteria described in paragraph (1)(A)(ii) 
        based on certification provided by the local educational 
        agency, or the State educational agency on behalf of the local 
        educational agency, that the local educational agency is 
        located in an area defined as rural by a governmental agency of 
        the State.
    ``(c) Allocation.--
            ``(1) In general.--Except as provided in paragraph (3), the 
        Secretary shall award a grant to an eligible local educational 
        agency for a fiscal year in an amount equal to the initial 
        amount determined under paragraph (2) for the fiscal year minus 
        the total amount received under the provisions of law described 
        under section 1611(c) for the preceding fiscal year.
            ``(2) Determination of the initial amount.--The initial 
        amount referred to in paragraph (1) is equal to $100 multiplied 
        by the total number of students, over 50 students, in average 
        daily attendance in such eligible agency plus $20,000, except 
        that the initial amount may not exceed $60,000.
            ``(3) Ratable adjustment.--
                    ``(A) In general.--If the amount made available for 
                this subpart for any fiscal year is not sufficient to 
                pay in full the amounts that local educational agencies 
                are eligible to receive under paragraph (1) for such 
                year, the Secretary shall ratably reduce such amounts 
                for such year.
                    ``(B) Additional amounts.--If additional funds 
                become available for making payments under paragraph 
                (1) for such fiscal year, payments that were reduced 
                under subparagraph (A) shall be increased on the same 
                basis as such payments were reduced.
            ``(5) Census determination.--
                    ``(A) In general.--Each local educational agency 
                desiring a grant under this section shall conduct a 
                census not later than December 1 of each year to 
                determine the number of kindergarten through grade 12 
                students in average daily attendance at the schools 
                served by the local educational agency.
                    ``(B) Submission.--Each local educational agency 
                shall submit the number described in subparagraph (A) 
                to the Secretary not later than March 1 of each year.
    ``(d) Disbursal.--The Secretary shall disburse the funds awarded to 
a local educational agency under this section for a fiscal year not 
later than July 1 of that year.
    ``(e) Special Rule.--A local educational agency that is eligible to 
receive a grant under this subpart for a fiscal year shall be 
ineligible to receive funds for such fiscal year under subpart 2.
    ``(f) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement and not supplant any other Federal, 
State or local education funds.

``SEC. 1613. ACCOUNTABILITY.

    ``(a) Academic Achievement.--
            ``(1) In general.--Each local educational agency that uses 
        or receives funds under section 1611 or 1612 for a fiscal year 
        shall administer an assessment consistent with section 1111 of 
        title I.
            ``(2) Special rule.--Each local educational agency that 
        uses or receives funds under section 1611 or 1612 shall use the 
        same assessment described in paragraph (1) for each year of 
        participation in the program under such section.
    ``(b) State Educational Agency Determination Regarding Continuing 
Participation.--Each State educational agency that receives funding 
under the provisions of law described in section 1611(c) shall--
            ``(1) after the 2d year that a local educational agency 
        participates in a program under section 1611 or 1612 and on the 
        basis of the results of the assessments described in subsection 
        (a), determine whether the students served by the local 
        educational agency participating in the program performed in 
        accordance with section 1111 of title I; and
            ``(2) only permit those local educational agencies that so 
        participated and met the requirements of section 1111(b)(2) of 
        title I to continue to so participate.

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

``SEC. 1621. PROGRAM AUTHORIZED.

    ``(a) Reservations.--From amounts appropriated under section 1632 
for this subpart for a fiscal year, the Secretary shall reserve \1/2\ 
of 1 percent to make awards to elementary or secondary schools operated 
or supported by the Bureau of Indian Affairs to carry out the purpose 
of this subpart.
    ``(b) Grants to States.--
            ``(1) In general.--From amounts appropriated under section 
        1632 for this subpart that are not reserved under subsection 
        (a), the Secretary shall award grants for a fiscal year to 
        State educational agencies that have applications approved 
        under section 1623 to enable the State educational agencies to 
        award subgrants to eligible local educational agencies for 
        local authorized activities described in subsection (c)(2).
            ``(2) Allocation.--From amounts appropriated for this 
        subpart, the Secretary shall allocate to each State educational 
        agency for a fiscal year an amount that bears the same ratio to 
        the amount of funds appropriated under section 1632 for this 
        subpart that are not reserved under subsection (a) as the 
        number of students in average daily attendance served by 
        eligible local educational agencies in the State bears to the 
number of all such students served by eligible local educational 
agencies in all States for that fiscal year.
            ``(3) Direct awards to specially qualified agencies.--
                    ``(A) Nonparticipating state.--If a State 
                educational agency elects not to participate in the 
                program under this subpart or does not have an 
                application approved under section 1623 a specially 
                qualified agency in such State desiring a grant under 
                this subpart shall apply directly to the Secretary to 
                receive an award under this subpart.
                    ``(B) Direct awards to specially qualified 
                agencies.--The Secretary may award, on a competitive 
                basis, the amount the State educational agency is 
                eligible to receive under paragraph (2) directly to 
                specially qualified agencies in the State.
    ``(c) Local Awards.--
            ``(1) Eligibility.--A local educational agency shall be 
        eligible to receive funds under this subpart if--
                    ``(A) 20 percent or more of the children aged 5 to 
                17, inclusive, served by the local educational agency 
                are from families with incomes below the poverty line; 
                and
                    ``(B) all of the schools served by the agency are 
                located in a community with a Rural-Urban Continuum 
                Code of 6, 7, 8, or 9, as determined by the Secretary 
                of Agriculture.
            ``(2) Uses of funds.--Grant funds awarded to local 
        educational agencies or made available to schools under this 
        subpart shall be used for--
                    ``(A) educational technology, including software 
                and hardware;
                    ``(B) professional development;
                    ``(C) technical assistance;
                    ``(D) teacher recruitment and retention;
                    ``(E) parental involvement activities; or
                    ``(F) academic enrichment programs.

``SEC. 1622. STATE DISTRIBUTION OF FUNDS.

    ``(a) Award Basis.--A State educational agency shall award grants 
to eligible local educational agencies--
            ``(1) on a competitive basis; or
            ``(2) according to a formula based on the number of 
        students in average daily attendance served by the eligible 
        local educational agencies or schools (as appropriate) in the 
        State, as determined by the State.
    ``(b) Administrative Costs.--A State educational agency receiving a 
grant under this subpart may not use more than 5 percent of the amount 
of the grant for State administrative costs.

``SEC. 1623. APPLICATIONS.

    ``Each State educational agency and specially qualified agency 
desiring to receive a grant under this subpart shall submit an 
application to the Secretary at such time, in such manner, and 
accompanied by such information as the Secretary may require. Such 
application shall include specific measurable goals and objectives to 
be achieved which may include specific educational goals and objectives 
relating to increased student academic achievement, decreased student 
drop-out rates, or such other factors that the State educational agency 
or specially qualified agency may choose to measure.

``SEC. 1624. REPORTS.

    ``(a) State Reports.--Each State educational agency that receives a 
grant under this subpart 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 schools under this subpart;
            ``(2) how local educational agencies and schools used funds 
        provided under this subpart; and
            ``(3) the degree to which progress has been made toward 
        meeting the goals and objectives described in the application 
        submitted under section 1623.
    ``(b) Specially Qualified Agency Report.--Each specially qualified 
agency that receives a grant under this subpart shall provide an annual 
report to the Secretary. Such report shall describe--
            ``(1) how such agency uses funds provided under this 
        subpart; and
            ``(2) the degree to which progress has been made toward 
        meeting the goals and objectives described in the application 
        submitted under section 1621(b)(4)(A).
    ``(c) Report to Congress.--The Secretary shall prepare and submit 
to the Committee on Education and the Workforce for the House of 
Representatives and the Committee on Health, Education, Labor, and 
Pensions for the Senate an annual report. The report shall describe--
            ``(1) the methods the State educational agency used to 
        award grants to eligible local educational agencies and to 
        provide assistance to schools under this subpart;
            ``(2) how eligible local educational agencies and schools 
        used funds provided under this subpart; and
            ``(3) progress made in meeting specific measurable 
        educational goals and objectives.

``SEC. 1625. DEFINITIONS.

    ``For the purposes of this subpart--
            ``(1) 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.
            ``(2) The term `specially qualified agency' means an 
        eligible local educational agency, located in a State that does 
        not participate in a program under this subpart in a fiscal 
        year, that may apply directly to the Secretary for a grant in 
        such year in accordance with section 1621(b)(4).

                    ``Subpart 3--General Provisions

``SEC. 1631. DEFINITION.

    ``For the purposes of this part, the term `State' means each of the 
50 States, the District of Columbia, and the Commonwealth of Puerto 
Rico.

``SEC. 1632. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$125,000,000 for fiscal year 2000 and such sums as may be necessary for 
each of 4 succeeding fiscal years to be distributed equally between 
subparts 1 and 2.''.

                       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 
                Public Education Reinvestment, Reinvention, and 
                Responsibility 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 Public Education Reinvestment, 
Reinvention, and Responsibility 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 Public Education 
        Reinvestment, Reinvention, and Responsibility 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 the 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 from 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, 2003.
    ``(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, 2003.
    ``(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) Special Rule.--Notwithstanding any other provision of law, 
the provisions of subsection (c) shall not supersede State laws 
governing public charter schools.
    ``(f) 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, 2003, 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 
$1,600,000,000 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 Public 
        Education Reinvestment, Reinvention, and Rededication 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 as 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 85 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 Public Education Reinvestment, Reinvention, 
        and Responsibility 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 Public Education 
        Reinvestment, Reinvention, and Responsibility 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 Public 
        Education Reinvestment, Reinvention, and Responsibility 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 ``Public 
                Education Reinvestment, Reinvention, and Responsibility 
                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.
            ``(B) Thirty-four States and the District of Columbia have 
        established charter schools.
            ``(C) Magnet schools have been established throughout the 
        United States.
            ``(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.
    ``(d) 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 3 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
                            ``(iv) 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.

    Section 8001 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7701) is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by inserting after ``educational services to 
                federally connected children'' the following: ``in a 
                manner that promotes control by local educational 
                agencies with little or no Federal or State 
                involvement''; and
                    (B) by inserting after ``certain activities of the 
                Federal Government'' the following: ``, such as 
                activities to fulfill the responsibilities of the 
                Federal Government with respect to Indian tribes and 
                activities under section 514 of the Soldiers' and 
                Sailors' Civil Relief Act of 1940 (50 U.S.C. App. 
                574),'';
            (2) in paragraph (4), by adding ``or'' at the end;
            (3) by striking paragraph (5);
            (4) by redesignating paragraph (6) as paragraph (5); and
            (5) in paragraph (5) (as redesignated), by inserting before 
        the period at the end the following: ``and because of the 
        difficulty of raising local revenue through bond referendums 
        for capital projects due to the inability to tax Federal 
        property''.

SEC. 502. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.

    (a) Fiscal Year Requirement.--Section 8002(a) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7702(a)) is amended in the 
matter preceding paragraph (1) by striking ``1999'' and inserting 
``2005''.
    (b) Amount.--
            (1) Insufficient funds.--Section 8002(b)(1)(B) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7702(b)(1)(B)) is amended by striking ``shall ratably reduce 
        the payment to each eligible local educational agency'' and 
        inserting ``shall calculate the payment for each eligible local 
        educational agency in accordance with subsection (h)''.
            (2) Maximum amount.--Section 8002(b)(1)(C) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7702(b)(1)(C)) is amended by adding at the end before the 
        period the following: ``, or the maximum amount that such 
        agency is eligible to receive for such fiscal year under this 
        section, whichever is greater''.
    (c) Payments With Respect to Fiscal Years in Which Insufficient 
Funds Are Appropriated.--Section 8002(h) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7702(h)) is amended to read 
as follows:
    ``(h) Payments With Respect to Fiscal Years in Which Insufficient 
Funds Are Appropriated.--For any fiscal year for which the amount 
appropriated under section 8014(a) is insufficient to pay to each local 
educational agency the full amount determined under subsection (b), the 
Secretary shall make payments to each local educational agency under 
this section as follows:
            ``(1) Foundation payments for pre-1995 recipients.--
                    ``(A) In general.--The Secretary shall first make a 
                foundation payment to each local educational agency 
                that is eligible to receive a payment under this 
                section for the fiscal year involved and was eligible 
                to receive a payment under section 2 of the Act of 
                September 30, 1950 (Public Law 874, 81st Congress) (as 
                such section was in effect on the day preceding the 
                date of the enactment of the Improving America's 
                Schools Act of 1994) for any of the fiscal years 1989 
                through 1994.
                    ``(B) Amount.--The amount of a payment under 
                subparagraph (A) for a local educational agency shall 
                be equal to 37 percent of the payment amount the local 
                educational agency was eligible to receive under 
                section 2 of the Act of September 30, 1950, for fiscal 
                year 1994 (or if the local educational agency was not 
                eligible to receive a payment under such section 2 for 
                fiscal year 1994, the payment that local educational 
                agency was eligible to receive under such section 2 for 
                the most recent fiscal year preceding 1994).
                    ``(C) Insufficient appropriations.--If the amount 
                appropriated under section 8014(a) is insufficient to 
                pay the full amount determined under this paragraph for 
                all eligible local educational agencies for the fiscal 
                year, then the Secretary shall ratably reduce the 
                payment to each local educational agency under this 
                paragraph.
            ``(2) Payments for 1995 recipients.--
                    ``(A) In general.--From any amounts remaining after 
                making payments under paragraph (1) for the fiscal year 
                involved, the Secretary shall make a payment to each 
                eligible local educational agency that received a 
                payment under this section for fiscal year 1995.
                    ``(B) Amount.--The amount of a payment under 
                subparagraph (A) for a local educational agency shall 
                be determined as follows:
                            ``(i) Calculate the difference between the 
                        amount appropriated to carry out this section 
                        for fiscal year 1995 and the total amount of 
                        foundation payments made under paragraph (1) 
                        for the fiscal year.
                            ``(ii) Determine the percentage share for 
                        each local educational agency that received a 
                        payment under this section for fiscal year 1995 
                        by dividing the assessed value of the Federal 
                        property of the local educational agency for 
                        fiscal year 1995 determined in accordance with 
                        subsection (b)(3), by the total national 
                        assessed value of the Federal property of all 
                        such local educational agencies for fiscal year 
                        1995, as so determined.
                            ``(iii) Multiply the percentage share 
                        described in clause (ii) for the local 
                        educational agency by the amount determined 
                        under clause (i).
            ``(3) Subsection (i) recipients.--From any funds remaining 
        after making payments under paragraphs (1) and (2) for the 
        fiscal year involved, the Secretary shall make payments in 
        accordance with subsection (i).
            ``(4) Remaining funds.--From any funds remaining after 
        making payments under paragraphs (1), (2), and (3) for the 
        fiscal year involved--
                    ``(A) the Secretary shall make a payment to each 
                local educational agency that received a foundation 
                payment under paragraph (1) for the fiscal year 
                involved in an amount that bears the same relation to 
                25 percent of the remainder as the amount the local 
                educational agency received under paragraph (1) for the 
                fiscal year involved bears to the amount all local 
                educational agencies received under paragraph (1) for 
                the fiscal year involved; and
                    ``(B) the Secretary shall make a payment to each 
                local educational agency that is eligible to receive a 
                payment under this section for the fiscal year involved 
                in an amount that bears the same relation to 75 percent 
                of the remainder as a percentage share determined for 
                the local educational agency (in the same manner as 
                percentage shares are determined for local educational 
                agencies under paragraph (2)(B)(ii)) bears to the 
                percentage share determined (in the same manner) for 
                all local educational agencies eligible to receive a 
                payment under this section for the fiscal year 
                involved, except that for the purpose of calculating a 
                local educational agency's assessed value of the 
                Federal property, data from the most current fiscal 
                year shall be used.''.
    (d) Special Payments.--
            (1) In general.--Section 8002(i)(1) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7702(i)(1)) is 
        amended to read as follows:
            ``(1) In general.--For any fiscal year beginning with 
        fiscal year 2000 for which the amount appropriated to carry out 
        this section exceeds the amount so appropriated for fiscal year 
        1996 and for which subsection (b)(1)(B) applies, the Secretary 
        shall use the remainder described in subsection (h)(3) for the 
        fiscal year involved (not to exceed the amount equal to the 
        difference between (A) the amount appropriated to carry out 
        this section for fiscal year 1997 and (B) the amount 
        appropriated to carry out this section for fiscal year 1996) to 
        increase the payment that would otherwise be made under this 
        section to not more than 50 percent of the maximum amount 
        determined under subsection (b) for any local educational 
        agency described in paragraph (2).''.
            (2) Conforming amendment.--The heading of section 8002(i) 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7702(i)) is amended by striking ``Priority'' and 
        inserting ``Special''.
    (e) Additional Assistance for Certain Local Educational Agencies 
Impacted by Federal Property Acquisition.--Section 8002(j)(2) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7702(j)(2)) 
is amended--
            (1) by striking ``(A) A local educational agency'' and 
        inserting ``A local educational agency'';
            (2) by redesignating clauses (i) through (v) as 
        subparagraphs (A) through (E), respectively; and
            (3) in subparagraph (C) (as redesignated), by adding at the 
        end before the semicolon the following: ``and such agency does 
        not currently have a military installation located within its 
        geographic boundaries''.
    (f) Data; Preliminary and Final Payments.--Section 8002 of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7702) is 
amended by adding at the end the following:
    ``(l) Data; Preliminary and Final Payments.--
            ``(1) In general.--The Secretary shall--
                    ``(A) not later than 30 days following the 
                application deadline under section 8005(c) for a fiscal 
                year, require any local educational agency that applied 
                for a payment under subsection (b) for the fiscal year 
                to submit such data as may be necessary in order to 
                compute the payment;
                    ``(B) as soon as possible after the beginning of 
                any fiscal year, but no later than 60 days after the 
                enactment of an Act making appropriations to carry out 
                this title for the fiscal year, provide a preliminary 
                payment under subsection (b) for any local educational 
                agency that applied for a payment under subsection (b) 
                for the fiscal year and was eligible for such a payment 
                for the preceding fiscal year, in the amount of 60 
                percent of the payment for the previous year; and
                    ``(C) provide a final payment under subsection (b) 
                for any eligible local educational agency not later 
                than 12 months after the application deadline 
                established under section 8005(c), except that any 
local educational agency failing to submit all of the data required 
under subparagraph (A) shall be denied such payment for the fiscal year 
for which the application is made unless funds from a source other than 
the Act described in subparagraph (B) are made available to provide 
such payment.
            ``(2) Eligibility for payments in subsequent years.--The 
        denial of a payment under subsection (b) to a local educational 
        agency for a fiscal year pursuant to this subsection shall not 
        affect the eligibility of the local educational agency for a 
        final payment under subsection (b) for a subsequent fiscal 
        year.''.

SEC. 503. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.

    (a) Military Installation Housing Undergoing Renovation or 
Rebuilding.--
            (1) In general.--Section 8003(a)(4) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7703(a)) is 
        amended--
                    (A) in the heading, by striking ``undergoing 
                renovation'' and inserting ``undergoing renovation or 
                rebuilding'';
                    (B) by striking ``For purposes'' and inserting the 
                following:
                    ``(A) In general.--For purposes'';
                    (C) in subparagraph (A) (as designated by 
                subparagraph (B)), by inserting ``or rebuilding'' after 
                ``undergoing renovation''; and
                    (D) by adding at the end the following:
                    ``(B) Limitations.--(i)(I) Except as provided in 
                subclause (II), children described in paragraph 
                (1)(D)(i) may be deemed to be children described in 
                paragraph (1)(B) with respect to housing on Federal 
                property undergoing renovation or rebuilding in 
                accordance with subparagraph (A) for a period not to 
                exceed 2 fiscal years.
                    ``(II) If the Secretary determines, on the basis of 
                a certification provided to the Secretary by a 
                designated representative of the Secretary of Defense, 
                that the expected completion date of the renovation or 
                rebuilding of the housing has been delayed by not less 
                than 1 year, then--
                            ``(aa) in the case of a determination made 
                        by the Secretary in the first fiscal year 
                        described in subclause (I), the time period 
                        described such subclause shall be extended by 
                        the Secretary for an additional 2 years; and
                            ``(bb) in the case of a determination made 
                        by the Secretary in the second fiscal year 
                        described in subclause (I), the time period 
                        described such subclause shall be extended by 
                        the Secretary for an additional 1 year.
                    ``(ii) The number of children described in 
                paragraph (1)(D)(i) who are deemed to be children 
                described in paragraph (1)(B) with respect to housing 
                on Federal property undergoing renovation or rebuilding 
                in accordance with subparagraph (A) for any fiscal year 
                may not exceed the maximum number of children who are 
                expected to occupy that housing upon completion of the 
                renovation or rebuilding.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply with respect to payments to a local educational 
        agency for fiscal years beginning before, on, or after the date 
        of the enactment of this Act.
    (b) Military ``Build to Lease'' Program Housing.--Section 8003(a) 
of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
7703(a)) is amended by adding at the end the following:
            ``(5) Military `build to lease' program housing.--
                    ``(A) In general.--For purposes of computing the 
                amount of payment for a local educational agency for 
                children identified under paragraph (1), the Secretary 
                shall consider children residing in housing initially 
                acquired or constructed under the former section 
                2828(g) of title 10, United States Code (commonly known 
                as the `Build to Lease' program), as added by section 
                801 of the Military Construction Authorization Act, 
                1984, to be children described under paragraph (1)(B) 
                if the property described is within the fenced security 
                perimeter of the military facility upon which such 
                housing is situated.
                    ``(B) Additional requirements.--If the property 
                described in subparagraph (A) is not owned by the 
                Federal Government, is subject to taxation by a State 
                or political subdivision of a State, and thereby 
                generates revenues for a local educational agency that 
                is applying to receive a payment under this section, 
                then the Secretary--
                            ``(i) shall require the local educational 
                        agency to provide certification from an 
                        appropriate official of the Department of 
                        Defense that the property is being used to 
                        provide military housing; and
                            ``(ii) shall reduce the amount of the 
                        payment under this section by an amount equal 
                        to the amount of revenue from such taxation 
                        received in the second preceding fiscal year by 
                        such local educational agency, unless the 
                        amount of such revenue was taken into account 
                        by the State for such second preceding fiscal 
                        year and already resulted in a reduction in the 
                        amount of State aid paid to such local 
                        educational agency.''.

SEC. 504. MAXIMUM AMOUNT OF BASIC SUPPORT PAYMENTS.

    Section 8003(b)(1) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7703(b)(1)) is amended by adding at the end the 
following:
                    ``(D) Increase in local contribution rate due to 
                unusual geographic factors.--If the current 
                expenditures in those local educational agencies which 
                the Secretary has determined to be generally comparable 
                to the local educational agency for which a computation 
                is made under subparagraph (C) are not reasonably 
                comparable because of unusual geographical factors 
                which affect the current expenditures necessary to 
                maintain, in such agency, a level of education 
                equivalent to that maintained in such other agencies, 
                then the Secretary shall increase the local 
                contribution rate for such agency under subparagraph 
                (C)(iii) by such an amount which the Secretary 
                determines will compensate such agency for the increase 
                in current expenditures necessitated by such unusual 
                geographical factors. The amount of any such 
                supplementary payment may not exceed the per-pupil 
                share (computed with regard to all children in average 
                daily attendance), as determined by the Secretary, of 
                the increased current expenditures necessitated by such 
                unusual geographic factors.''.

SEC. 505. BASIC SUPPORT PAYMENTS FOR HEAVILY IMPACTED LOCAL EDUCATIONAL 
              AGENCIES.

    (a) In General.--Section 8003(b) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7703(b)) is amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively; and
            (2) by inserting after paragraph (1) the following:
            ``(2) Basic support payments for heavily impacted local 
        educational agencies.--
                    ``(A) In general.--(i) From the amount appropriated 
                under section 8014(b) for a fiscal year, the Secretary 
                is authorized to make basic support payments to 
                eligible heavily impacted local educational agencies 
                with children described in subsection (a).
                    ``(ii) A local educational agency that receives a 
                basic support payment under this paragraph for a fiscal 
                year shall not be eligible to receive a basic support 
                payment under paragraph (1) for that fiscal year.
                    ``(B) Eligibility for continuing heavily impacted 
                local educational agencies.--
                            ``(i) Fiscal year 2001.--A heavily impacted 
                        local educational agency is eligible to receive 
                        a basic support payment under subparagraph (A) 
                        for fiscal year 2001 with respect to a number 
                        of children determined under subsection (a)(1) 
                        only if the agency received an additional 
                        assistance payment under subsection (f) (as 
                        such subsection was in effect on the day before 
                        the date of the enactment of the Impact Aid 
                        Reauthorization Act of 2000) for fiscal year 
                        2000.
                            ``(ii) Fiscal year 2002 and subsequent 
                        fiscal years.--A heavily impacted local 
                        educational agency described in clause (i) is 
                        eligible to receive a basic support payment 
                        under subparagraph (A) for fiscal year 2002 and 
                        any subsequent fiscal year with respect to a 
                        number of children determined under subsection 
                        (a)(1) only if the agency--
                                    ``(I) received a basic support 
                                payment under subparagraph (A) for 
                                fiscal year 2001; and
                                    ``(II)(aa) is a local educational 
                                agency whose boundaries are the same as 
                                a Federal military installation;
                                    ``(bb) has an enrollment of 
                                federally connected children described 
                                in subsection (a)(1) which constitutes 
                                a percentage of the total student 
                                enrollment of such agency which is not 
                                less than 35 percent, has a per-pupil 
                                expenditure that is less than the 
                                average per-pupil expenditure of the 
                                State in which the agency is located or 
                                the average per-pupil expenditure of 
                                all States (whichever average per-pupil 
                                expenditure is greater), except that a 
                                local educational agency with a total 
                                student enrollment of less than 350 
                                students shall be deemed to have 
                                satisfied such per-pupil expenditure 
                                requirement, and has a tax rate for 
                                general fund purposes which is at least 
                                95 percent of the average tax rate for 
                                general fund purposes of comparable 
                                local educational agencies in the 
                                State; or
                                    ``(cc) has a total student 
                                enrollment of not less than 25,000 
                                students, of which not less than 50 
                                percent are federally connected 
                                children described in subsection (a)(1) 
                                and not less than 6,000 of such 
                                federally connected children are 
                                children described in subparagraphs (A) 
                                and (B) of subsection (a)(1).
                            ``(iii) Resumption of eligibility.--A 
                        heavily impacted local educational agency 
                        described in clause (i) or (ii) that becomes 
                        ineligible under either such clause for one or 
                        more fiscal years may resume eligibility for a 
                        basic support payment under this paragraph for 
                        a subsequent fiscal year only if the agency 
                        meets the requirements of item (aa), (bb), or 
                        (cc) of clause (ii)(II) for that subsequent 
                        fiscal year.
                    ``(C) Eligibility for new heavily impacted local 
                educational agencies.--
                            ``(i) In general.--A heavily impacted local 
                        educational agency that did not receive an 
                        additional assistance payment under subsection 
                        (f) (as such subsection was in effect on the 
                        day before the date of the enactment of the 
                        Impact Aid Reauthorization Act of 2000) for 
                        fiscal year 2000 is eligible to receive a basic 
                        support payment under subparagraph (A) for 
                        fiscal year 2002 and any subsequent fiscal year 
                        with respect to a number of children determined 
                        under subsection (a)(1) only if the agency--
                                    ``(I) has an enrollment of 
                                federally connected children described 
                                in subsection (a)(1) which constitutes 
                                a percentage of the total student 
                                enrollment of such agency which (aa) is 
                                not less than 50 percent if such agency 
                                receives a payment on behalf of 
                                children described in subparagraphs (F) 
                                and (G) of such subsection or (bb) is 
                                not less than 40 percent if such agency 
                                does not receive a payment on behalf of 
                                such children;
                                    ``(II)(aa) is a local educational 
                                agency whose boundaries are the same as 
                                a Federal military installation; or
                                    ``(bb) is a local educational 
                                agency that has a tax rate for general 
                                fund purposes which is at least 95 
                                percent of the average tax rate for 
                                general fund purposes of comparable 
                                local educational agencies in the 
                                State; and
                                    ``(III)(aa) for a local educational 
                                agency that has a total student 
                                enrollment of 350 or more students, the 
                                agency has a per-pupil expenditure that 
                                is less than the average per-pupil 
                                expenditure of the State in which the 
                                agency is located; or
                                    ``(bb) for a local educational 
                                agency that has a total student 
                                enrollment of less than 350 students, 
                                the agency has a per-pupil expenditure 
                                that is less than the average per-pupil 
                                expenditure of a comparable agency in 
                                the State in which the agency is 
                                located.
                            ``(ii) Resumption of eligibility.--A 
                        heavily impacted local educational agency 
                        described in clause (i) that becomes ineligible 
                        under such clause for one or more fiscal years 
                        may resume eligibility for a basic support 
                        payment under this paragraph for a subsequent 
                        fiscal year only if the agency meets the 
                        requirements of subclauses (I), (II), and (III) 
                        of clause (i) for that subsequent fiscal year.
                            ``(iii) Application.--With respect to the 
                        first fiscal year for which a heavily impacted 
                        local educational agency described in clause 
                        (i) applies for a basic support payment under 
                        subparagraph (A), or with respect to the first 
                        fiscal year for which a heavily impacted local 
                        educational agency applies for a basic support 
                        payment under subparagraph (A) after becoming 
                        ineligible under clause (i) for one or more 
                        preceding fiscal years, the agency shall apply 
                        for such payment at least 1 year prior to the 
                        start of that first fiscal year.
                    ``(D) Maximum amount for regular heavily impacted 
                local educational agencies.--(i) Except as provided in 
                subparagraph (E), the maximum amount that a heavily 
                impacted local educational agency is eligible to 
                receive under this paragraph for any fiscal year is the 
                sum of the total weighted student units, as computed 
                under subsection (a)(2) (subject to clause (ii)), 
                multiplied by the greater of--
                            ``(I) four-fifths of the average per-pupil 
                        expenditure of the State in which the local 
                        educational agency is located for the third 
                        fiscal year preceding the fiscal year for which 
                        the determination is made; or
                            ``(II) four-fifths of the average per-pupil 
                        expenditure of all of the States for the third 
                        fiscal year preceding the fiscal year for which 
                        the determination is made.
                    ``(ii)(I) For a local educational agency with 
                respect to which 35 percent or more of the total 
                student enrollment of the schools of the agency are 
                children described in subparagraph (D) or (E) (or a 
                combination thereof) of subsection (a)(1), the 
                Secretary shall calculate the weighted student units of 
                such children for purposes of subsection (a)(2) by 
                multiplying the number of such children by a factor of 
                0.55.
                    ``(II) For a local educational agency that has an 
                enrollment of 100 or fewer federally connected children 
                described in subsection (a)(1), the Secretary shall 
                calculate the total number of weighted student units 
                for purposes of subsection (a)(2) by multiplying the 
                number of such children by a factor of 1.75.
                    ``(III) For a local educational agency that has an 
                enrollment of more than 100 but not more than 750 
                children described in subsection (a)(1), the Secretary 
                shall calculate the total number of weighted student 
                units for purposes of subsection (a)(2) by multiplying 
                the number of such children by a factor of 1.25.
                    ``(E) Maximum amount for large heavily impacted 
                local educational agencies.--(i)(I) Subject to clause 
                (ii), the maximum amount that a heavily impacted local 
                educational agency described in subclause (II) is 
                eligible to receive under this paragraph for any fiscal 
                year shall be determined in accordance with the formula 
                described in paragraph (1)(C).
                    ``(II) A heavily impacted local educational agency 
                described in this subclause is a local educational 
                agency that has a total student enrollment of not less 
                than 25,000 students, of which not less than 50 percent 
                are federally connected children described in 
                subsection (a)(1) and not less than 6,000 of such 
                federally connected children are children described in 
                subparagraphs (A) and (B) of subsection (a)(1).
                    ``(ii) For purposes of calculating the maximum 
                amount described in clause (i), the factor used in 
                determining the weighted student units under subsection 
                (a)(2) with respect to children described in 
                subparagraphs (A) and (B) of subsection (a)(1) shall be 
                1.35.
                    ``(F) Data.--For purposes of providing assistance 
                under this paragraph, the Secretary shall use student, 
                revenue, expenditure, and tax data from the third 
                fiscal year preceding the fiscal year for which the 
                local educational agency is applying for assistance 
                under this paragraph.''.
    (b) Payments With Respect to Fiscal Years in Which Insufficient 
Funds Are Appropriated.--Paragraph (3) of section 8003(b) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703(b)), as 
redesignated, is amended--
            (1) in subparagraph (A), by striking ``paragraph (1)'' and 
        inserting ``paragraphs (1) and (2)'';
            (2) in subparagraph (B)--
                    (A) in the heading, by inserting after ``payments'' 
                the following: ``in lieu of payments under paragraph 
                (1)'';
                    (B) in the matter preceding subclause (I) of clause 
                (i), by inserting after ```threshold payment')'' the 
                following: ``in lieu of basic support payments under 
                paragraph (1)'';
                    (C) in clause (ii), by striking ``paragraph (1)'' 
                and inserting ``clause (i)''; and
                    (D) by adding at the end the following:
                    ``(iv) In the case of a local educational agency 
                that has a total student enrollment of fewer than 1,000 
                students and that has a per-pupil expenditure that is 
                less than the average per-pupil expenditure of the 
                State in which the agency is located, the total 
                percentage used to calculate threshold payments under 
                clause (i) shall not be less than 40 percent.'';
            (3) by redesignating subparagraph (C) as subparagraph (D);
            (4) by inserting after subparagraph (B) the following:
                    ``(C) Learning opportunity threshold payments in 
                lieu of payments under paragraph (2).--For fiscal years 
                described in subparagraph (A), the learning opportunity 
                threshold payment in lieu of basic support payments 
                under paragraph (2) shall be equal to the amount 
                obtained under subparagraph (D) or (E) of paragraph 
                (2), as the case may be.''; and
            (5) in subparagraph (D) (as redesignated), by striking 
        ``computation made under subparagraph (B)'' and inserting 
        ``computations made under subparagraphs (B) and (C)''.
    (c) Conforming Amendments.--(1) Section 8002(b)(1)(C) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 
7702(b)(1)(C)) is amended by striking ``section 8003(b)(1)(C)'' and 
inserting ``paragraph (1)(C) of section 8003(b) or subparagraph (D) or 
(E) of paragraph (2) of such section, as the case may be''.
    (2) Section 8003 of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7703) is amended--
            (A) in subsection (a)(1), by striking ``subsection (b), 
        (d), or (f)'' and inserting ``subsection (b) or (d)'';
            (B) in subsection (b)--
                    (i) in paragraph (1)(C), in the matter preceding 
                clause (i), by striking ``this subsection'' and 
                inserting ``this paragraph''; and
                    (ii) in paragraph (4) (as redesignated)--
                            (I) in subparagraph (A), by striking 
                        ``paragraphs (1)(B), (1)(C), and (2) of this 
                        subsection'' and inserting ``subparagraphs (B) 
                        and (C) of paragraph (1) or subparagraphs (B) 
                        through (D) of paragraph (2), as the case may 
                        be, paragraph (3) of this subsection''; and
                            (II) in subparagraph (B)--
                                    (aa) by inserting after ``paragraph 
                                (1)(C)'' the following: ``or 
                                subparagraph (D) or (E) of paragraph 
                                (2), as the case may be,''; and
                                    (bb) by striking ``paragraph 
                                (2)(B)'' and inserting ``subparagraph 
                                (B) or (C) of paragraph (3)'';
            (C) in subsection (c)(1), by striking ``paragraph (2) and 
        subsection (f)'' and inserting ``subsection (b)(2) and 
        paragraph (2)'';
            (D) by striking subsection (f); and
            (E) in subsection (i), by striking ``sections 8002 and 
        8003(b)'' and inserting ``section 8002 and subsection (b) of 
        this section''.

SEC. 506. BASIC SUPPORT PAYMENTS FOR LOCAL EDUCATIONAL AGENCIES 
              AFFECTED BY REMOVAL OF FEDERAL PROPERTY.

    Section 8003(b) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7703(b)), as amended by this Act, is further amended by 
adding at the end the following:
            ``(5) Local educational agencies affected by removal of 
        federal property.--
                    ``(A) In general.--In computing the amount of a 
                basic support payment under this subsection for a 
                fiscal year for a local educational agency described in 
                subparagraph (B), the Secretary shall meet the 
                additional requirements described in subparagraph (C).
                    ``(B) Local educational agency described.--A local 
                educational agency described in this subparagraph is a 
                local educational agency with respect to which Federal 
                property (i) located within the boundaries of the 
                agency, and (ii) on which one or more children reside 
                who are receiving a free public education at a school 
                of the agency, is transferred by the Federal Government 
                to another entity in any fiscal year beginning on or 
                after the date of the enactment of the Impact Aid 
                Reauthorization Act of 2000 so that the property is 
subject to taxation by the State or a political subdivision of the 
State.
                    ``(C) Additional requirements.--The additional 
                requirements described in this subparagraph are the 
                following:
                            ``(i) For each fiscal year beginning after 
                        the date on which the Federal property is 
                        transferred, a child described in subparagraph 
                        (B) who continues to reside on such property 
                        and who continues to receive a free public 
                        education at a school of the agency shall be 
                        deemed to be a child who resides on Federal 
                        property for purposes of computing under the 
                        applicable subparagraph of subsection (a)(1) 
                        the amount that the agency is eligible to 
                        receive under this subsection.
                            ``(ii)(I) For the third fiscal year 
                        beginning after the date on which the Federal 
                        property is transferred, and for each fiscal 
                        year thereafter, the Secretary shall, after 
                        computing the amount that the agency is 
                        otherwise eligible to receive under this 
                        subsection for the fiscal year involved, deduct 
                        from such amount an amount equal to the revenue 
                        received by the agency for the immediately 
                        preceding fiscal year as a result of the 
                        taxable status of the former Federal property.
                            ``(II) For purposes of determining the 
                        amount of revenue to be deducted in accordance 
                        with subclause (I), the local educational 
                        agency--
                                    ``(aa) shall provide for a review 
                                and certification of such amount by an 
                                appropriate local tax authority; and
                                    ``(bb) shall submit to the 
                                Secretary a report containing the 
                                amount certified under item (aa).''.

SEC. 507. ADDITIONAL PAYMENTS FOR LOCAL EDUCATIONAL AGENCIES WITH HIGH 
              CONCENTRATIONS OF CHILDREN WITH SEVERE DISABILITIES.

    (a) Repeal.--Subsection (g) of section 8003 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7703(g)) is repealed.
    (b) Conforming Amendments.--(1) Section 8003 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7703) is amended by 
redesignating subsections (h) and (i) as subsections (f) and (g), 
respectively.
    (2) Section 426 of the General Education Provisions Act (20 U.S.C. 
1228) is amended by striking ``subsections (d) and (g) of section 8003 
of such Act'' and inserting ``section 8003(d) of such Act''.

SEC. 508. APPLICATION FOR PAYMENTS UNDER SECTIONS 8002 AND 8003.

    Section 8005(d) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7705(d)) is amended--
            (1) in paragraph (2), by inserting after ``not more than 60 
        days after a deadline established under subsection (c)'' the 
        following: ``, or not more than 60 days after the date on which 
        the Secretary sends written notice to the local educational 
        agency pursuant to paragraph (3)(A), as the case may be,''; and
            (2) in paragraph (3) to read as follows:
            ``(3) Late applications.--
                    ``(A) Notice.--The Secretary shall, as soon as 
                practicable after the deadline established under 
                subsection (c), provide to each local educational 
                agency that applied for a payment under section 8002 or 
                8003 for the prior fiscal year, and with respect to 
                which the Secretary has not received an application for 
                a payment under either such section (as the case may 
                be) for the fiscal year in question, written notice of 
                the failure to comply with the deadline and instruction 
                to ensure that the application is filed not later than 
                60 days after the date on which the Secretary sends the 
                notice.
                    ``(B) Acceptance and approval of late 
                applications.--The Secretary shall not accept or 
                approve any application of a local educational agency 
                that is filed more than 60 days after the date on which 
                the Secretary sends written notice to the local 
                educational agency pursuant to subparagraph (A).''.

SEC. 509. PAYMENTS FOR SUDDEN AND SUBSTANTIAL INCREASES IN ATTENDANCE 
              OF MILITARY DEPENDENTS.

    Section 8006 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7706) is repealed.

SEC. 510. CONSTRUCTION.

    (a) In General.--Section 8007 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7707) is amended to read as follows:

``SEC. 8007. CONSTRUCTION.

    ``(a) Construction Payments Authorized.--
            ``(1) In general.--From 70 percent of the amount 
        appropriated for each fiscal year under section 8014(e), the 
        Secretary shall make payments in accordance with this 
        subsection to each local educational agency that receives a 
        basic support payment under section 8003(b) for that fiscal 
        year.
            ``(2) Additional requirements.--A local educational agency 
        that receives a basic support payment under section 8003(b)(1) 
        shall also meet at least one of the following requirements:
                    ``(A) The number of children determined under 
                section 8003(a)(1)(C) for the agency for the preceding 
                school year constituted at least 50 percent of the 
                total student enrollment in the schools of the agency 
                during the preceding school year.
                    ``(B) The number of children determined under 
                subparagraphs (B) and (D)(i) of section 8003(a)(1) for 
                the agency for the preceding school year constituted at 
                least 50 percent of the total student enrollment in the 
                schools of the agency during the preceding school year.
            ``(3) Amount of payments.--
                    ``(A) Local educational agencies impacted by 
                military dependent children.--The amount of a payment 
                to each local educational agency described in this 
                subsection that is impacted by military dependent 
                children for a fiscal year shall be equal to--
                            ``(i)(II) 35 percent of the amount 
                        appropriated under section 8014(e) for such 
                        fiscal year; divided by
                            ``(II) the total number of weighted student 
                        units of children described in subparagraphs 
                        (B) and (D)(i) of section 8003(a)(1) for all 
                        local educational agencies described in this 
                        subsection (as calculated under section 
                        8003(a)(2)), including the number of weighted 
                        student units of such children attending a 
                        school facility described in section 8008(a) if 
                        the Secretary does not provide assistance for 
                        the school facility under that section for the 
                        prior fiscal year; multiplied by
                            ``(ii) the total number of such weighted 
                        student units for the agency.
                    ``(B) Local educational agencies impacted by 
                children who reside on indian lands.--The amount of a 
                payment to each local educational agency described in 
                this subsection that is impacted by children who reside 
                on Indian lands for a fiscal year shall be equal to--
                            ``(i)(I) 35 percent of the amount 
                        appropriated under section 8014(e) for such 
                        fiscal year; divided by
                            ``(II) the total number of weighted student 
                        units of children described in section 
                        8003(a)(1)(C) for all local educational 
                        agencies described in this subsection (as 
                        calculated under section 8003(a)(2)); 
                        multiplied by
                            ``(ii) the total number of such weighted 
                        student units for the agency.
            ``(4) Use of funds.--Any local educational agency that 
        receives funds under this subsection shall use such funds for 
        construction, as defined in section 8013(3).
    ``(b) School Facility Modernization Grants Authorized.--
            ``(1) In general.--From 30 percent of the amount 
        appropriated for each fiscal year under section 8014(e), the 
        Secretary shall award grants in accordance with this subsection 
        to eligible local educational agencies to enable the local 
        educational agencies to carry out modernization of school 
        facilities.
            ``(2) Eligibility requirements.--A local educational agency 
        is eligible to receive funds under this subsection only if--
                    ``(A) such agency (or in the case of a local 
                educational agency that does not have the authority to 
                tax or issue bonds, such agency's fiscal agent) has no 
                capacity to issue bonds or is at such agency's limit in 
                bonded indebtedness for the purposes of generating 
                funds for capital expenditures; and
                    ``(B)(i) such agency received assistance under 
                section 8002(a) for the fiscal year and has an assessed 
                value of taxable property per student in the school 
                district that is less than the average of the assessed 
                value of taxable property per student in the State in 
                which the local educational agency is located; or
                    ``(ii) such agency received assistance under 
                subsection (a) for the fiscal year and has a school 
                facility emergency, as determined by the Secretary, 
                that poses a health or safety hazard to the students 
                and school personnel assigned to the school facility.
            ``(3) Award criteria.--In awarding grants under this 
        subsection the Secretary shall consider one or more of the 
        following factors:
                    ``(A) The extent to which the local educational 
                agency lacks the fiscal capacity to undertake the 
                modernization project without Federal assistance.
                    ``(B) The extent to which property in the local 
                educational agency is nontaxable due to the presence of 
                the Federal Government.
                    ``(C) The extent to which the local educational 
                agency serves high numbers or percentages of children 
                described in subparagraphs (A), (B), (C), and (D) of 
                section 8003(a)(1).
                    ``(D) The need for modernization to meet--
                            ``(i) the threat that the condition of the 
                        school facility poses to the safety and well-
                        being of students;
                            ``(ii) overcrowding conditions as evidenced 
                        by the use of trailers and portable buildings 
                        and the potential for future overcrowding 
                        because of increased enrollment; and
                            ``(iii) facility needs resulting from 
                        actions of the Federal Government.
                    ``(E) The age of the school facility to be 
                modernized.
            ``(4) Other award provisions.--
                    ``(A) Federal share.--The Federal funds provided 
                under this subsection to a local educational agency 
                described in subparagraph (C) shall not exceed 50 
                percent of the total cost of the project to be assisted 
                under this subsection. A local educational agency may 
                use in-kind contributions to meet the matching 
                requirement of the preceding sentence.
                    ``(B) Maximum grant.--A local educational agency 
                described in subparagraph (C) may not receive a grant 
                under this subsection in an amount that exceeds 
                $3,000,000 during any 5-year period.
                    ``(C) Local educational agency described.--A local 
                educational agency described in this subparagraph is a 
                local educational agency that has the authority to 
                issue bonds but is at such agency's limit in bonded 
                indebtedness for the purposes of generating funds for 
                capital expenditures.
            ``(5) Applications.--A local educational agency that 
        desires to receive a grant under this subsection shall submit 
        an application to the Secretary at such time, in such manner, 
        and accompanied by such information as the Secretary may 
        require. Each application shall contain--
                    ``(A) documentation certifying such agency's lack 
                of bonding capacity;
                    ``(B) a listing of the school facilities to be 
                modernized, including the number and percentage of 
                children determined under section 8003(a)(1) in average 
                daily attendance in each school facility;
                    ``(C) a description of the ownership of the 
                property on which the current school facility is 
                located or on which the planned school facility will be 
                located;
                    ``(D) a description of any school facility 
                deficiency that poses a health or safety hazard to the 
                occupants of the school facility and a description of 
                how that deficiency will be repaired;
                    ``(E) a description of the modernization to be 
                supported with funds provided under this subsection;
                    ``(F) a cost estimate of the proposed 
                modernization; and
                    ``(G) such other information and assurances as the 
                Secretary may reasonably require.
            ``(6) Emergency grants.--
                    ``(A) Applications.--Each local educational agency 
                described in paragraph (2)(B)(ii) that desires a grant 
                under this subsection shall include in the application 
                submitted under paragraph (5) a signed statement from 
                an appropriate local official certifying that a health 
                or safety deficiency exists.
                    ``(B) Priority.--If the Secretary receives more 
                than one application from local educational agencies 
                described in paragraph (2)(B)(ii) for grants under this 
                subsection for any fiscal year, the Secretary shall 
                give priority to local educational agencies based on 
                the severity of the emergency, as determined by the 
                Secretary, and when the application was received.
                    ``(C) Consideration for following year.--A local 
                educational agency described in paragraph (2)(B)(ii) 
                that applies for a grant under this subsection for any 
                fiscal year and does not receive the grant shall have 
                the application for the grant considered for the 
                following fiscal year, subject to the priority 
                described in subparagraph (B).''.
    (b) Definition.--Section 8013 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7713) is amended by adding at the end 
the following:
            ``(13) Modernization.--The term `modernization' means 
        repair, renovation, alteration, or construction, including--
                    ``(A) the concurrent installation of equipment; and
                    ``(B) the complete or partial replacement of an 
                existing school facility, but only if such replacement 
                is less expensive and more cost-effective than repair, 
                renovation, or alteration of the school facility.''.

SEC. 511. FEDERAL ADMINISTRATION.

    Section 8010(c) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7710(c)) is amended--
            (1) by striking paragraph (1);
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (1) and (2), respectively; and
            (3) in paragraph (2)(D) (as redesignated), by striking 
        ``section 5(d)(2) of the Act of September 30, 1950 (Public Law 
        874, 81st Congress) (as such section was in effect on the day 
        preceding the date of enactment of the Improving America's 
        Schools Act of 1994) or''.

SEC. 512. ADMINISTRATIVE HEARINGS AND JUDICIAL REVIEW.

    (a) Administrative Hearings.--
            (1) In general.--Section 8011(a) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7711) is amended by 
        adding at the end before the period the following: ``if the 
        local educational agency or State, as the case may be, submits 
        to the Secretary a request for the hearing not later than 60 
        days after the date of the action of the Secretary under this 
        title''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to an action of the Secretary under 
        title VIII of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 7701 et seq.) initiated on or after the date of 
        the enactment of this Act.
    (b) Judicial Review of Secretarial Action.--Section 8011(b)(1) of 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
7711(b)(1)) is amended by striking ``60 days'' and inserting ``30 
working days (as determined by the local educational agency or 
State)''.

SEC. 513. DEFINITIONS.

    Section 8013(5)(A)(iii) of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7713(5)(A)(iii)) is amended--
            (1) in subclause (I), by striking ``or'' at the end; and
            (2) by adding at the end the following:
                            ``(III) affordable housing assisted under 
                        the Native American Housing Assistance and 
                        Self-Determination Act of 1996; or''.

SEC. 514. AUTHORIZATION OF APPROPRIATIONS.

    (a) Payments for Federal Acquisition of Real Property.--Section 
8014(a) of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7714(a)) is amended by striking ``$16,750,000 for fiscal year 
1995'' and inserting ``$32,000,000 for fiscal year 2000''.
    (b) Basic Payments.--Section 8014(b) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7714(b)) is amended--
            (1) by striking ``subsections (b) and (f) of section 8003'' 
        and inserting ``section 8003(b)'';
            (2) by striking ``$775,000,000 for fiscal year 1995'' and 
        inserting ``$809,400,000 for fiscal year 2000''; and
            (3) by striking ``, of which 6 percent'' and all that 
        follows and inserting a period.
    (c) Payments for Children With Disabilities.--Section 8014(c) of 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7714(c)) 
is amended by striking ``$45,000,000 for fiscal year 1995'' and 
inserting ``$50,000,000 for fiscal year 2000''.
    (d) Payments for Increases in Military Children.--Subsection (d) of 
section 8014 of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7714) is repealed.
    (e) Construction.--Section 8014(e) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7714(e)) is amended by striking 
``$25,000,000 for fiscal year 1995'' and inserting ``$10,052,000 for 
fiscal year 2000''.
    (f) Facilities Maintenance.--Section 8014(f) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7714(f)) is amended by 
striking ``$2,000,000 for fiscal year 1995'' and inserting ``$5,000,000 
for fiscal year 2000''.
    (g) Additional Assistance for Certain Local Educational Agencies 
Impacted by Federal Property Acquisition.--Section 8014(g) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7714(g)) is 
amended--
            (1) in the heading, by striking ``Federal Property Local 
        Educational Agencies'' and inserting ``Local Educational 
        Agencies Impacted by Federal Property Acquisition''; and
            (2) by striking ``such sums as are necessary beginning in 
        fiscal year 1998 and for each succeeding fiscal year'' and 
        inserting ``$1,500,000 for fiscal year 2000 and such sums as 
        may be necessary for each of the four succeeding fiscal 
        years''.

SEC. 515. EFFECTIVE DATE.

    This title, and the amendments made by this title, shall take 
effect on October 1, 2000, or the date of the enactment of this Act, 
whichever occurs later.

      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. FINDINGS, POLICY, AND PURPOSE.

    ``(a) Findings.--Congress makes the following findings:
            ``(1)(A) Congress embraces the view that educators most 
        familiar with schools, including school superintendents, 
        principals, teachers, and school support personnel, have a 
        critical role in knowing what is needed and how best to meet 
        the educational needs of students.
            ``(B) Local educational agencies should therefore have 
        primary responsibility for deciding how to implement funds.
            ``(2)(A) Since the Elementary and Secondary Education Act 
        was first authorized in 1965, the Federal Government has 
        created numerous grant programs, each of which was created to 
        address 1 among the myriad challenges and problems facing 
        education.
            ``(B) Only a few of the Federal grant programs established 
        before the date of enactment of the Public Education 
        Reinvestment, Reinvention, and Responsibility Act can be tied 
        to significant quantitative results.
            ``(C) Because Federal education dollars are distributed 
        through a patchwork of programs, with each program having its 
        own set of requirements and restrictions, local educational 
        agencies and schools have found it difficult to leverage funds 
        for maximum impact.
            ``(D) In many cases, Federal education dollars distributed 
        through competitive grant programs are too diffused to provide 
        a true impact at the school level.
            ``(E) As a result of the Federal elementary and secondary 
        education policies in place before the date of enactment of the 
        Public Education Reinvestment, Reinvention, and Responsibility 
        Act, the focus of Federal, State, and local educational 
        agencies has been diverted from comprehensive student 
        achievement to administrative compliance.
            ``(3)(A) Every elementary school and secondary school 
        should provide a drug- and violence-free learning environment.
            ``(B) The widespread illegal use of alcohol and drugs among 
        the Nation's secondary school students, and increasingly among 
        elementary school students, constitutes a grave threat to 
students' physical and mental well-being, and significantly impedes the 
learning process.
            ``(C) Drug and violence prevention programs are essential 
        components of a comprehensive strategy to promote school 
        safety, youth development, and positive school outcomes, and 
        reduce the demand for and illegal use of alcohol, tobacco, and 
        drugs throughout the Nation.
            ``(D) Schools, local organizations, parents, students, and 
        communities throughout the Nation have a special responsibility 
        to work together to combat the continuing epidemic of violence 
        and illegal drug use, and should measure the success of 
        programs established to address this epidemic against clearly 
        defined goals and objectives.
            ``(E) Drug and violence prevention programs are most 
        effective when implemented within a research-based, drug and 
        violence prevention framework of proven effectiveness.
            ``(F) Substance abuse and violence are intricately related, 
        and must be dealt with in a holistic manner.
            ``(4)(A) Technology can produce far greater opportunities 
        for all students to meet high learning standards, promote 
        efficiency and effectiveness in education, and help immediately 
        and dramatically reform our Nation's educational system.
            ``(B) Because most Federal and State educational technology 
        programs have focused on acquiring educational technologies, 
        rather than emphasizing the utilization of those technologies 
        in the classroom and the training and infrastructure required 
        efficiently to support the technologies, the full potential of 
        educational technology has rarely been realized.
            ``(C) The effective use of technology in education has been 
        inhibited by the inability of many State educational agencies 
        and local educational agencies to invest in and support needed 
        technologies, and to obtain sufficient resources to seek expert 
        technical assistance in developing high-quality professional 
        development activities for teachers and keeping pace with the 
        rapid technological advances.
            ``(D) To remain competitive in the global economy, which is 
        increasingly reliant on a workforce that is comfortable with 
        technology and able to integrate rapid technological changes 
        into production processes, it is imperative that our Nation 
        maintain a work-ready labor force.
    ``(b) Policy.--Congress declares it to be the policy of the United 
States--
            ``(1) to facilitate significant innovation in elementary 
        school and secondary school education programs;
            ``(2) to enrich the learning environment of students;
            ``(3) to provide a safe learning environment for all 
        students;
            ``(3) to ensure that all students are technologically 
        literate; and
            ``(4) to assist State educational agencies and local 
        educational agencies in building the agencies' capacity to 
        establish, implement, and sustain innovative programs for 
        public elementary and secondary school students.
    ``(c) Purposes.--The purposes of this title are as follows:
            ``(1) To provide supplementary assistance for school 
        improvement to elementary schools, secondary schools, and local 
        educational agencies--
                    ``(A) that have been or are at risk of being 
                identified as being in need of improvement, as defined 
                in section 1116 (c) and (d), to carry out activities 
                (as described in such schools' or agencies' improvement 
                plans developed under such section) that are designed 
                to remedy the circumstances that caused such schools or 
                agencies to be identified as in need of improvement; or
                    ``(B) to improve core content curriculum and 
                instructional practices and materials in core subject 
                areas to ensure that all students are at the proficient 
                standard level within 10 years of the date of enactment 
                of the Public Education Reinvestment, Reinvention, and 
                Responsibility Act.
            ``(2) To provide assistance to local educational agencies 
        and schools for innovative programs and activities that will 
        transform schools into 21st century opportunities for students 
        by--
                    ``(A) creating a challenging learning environment 
                and facilitating academic enrichment through innovative 
                academic programs; or
                    ``(B) providing extra learning, time, and 
                opportunities for students.
            ``(3) To provide assistance to local educational agencies, 
        schools, and communities to strengthen existing programs or 
        develop and implement new programs based on proven researched-
        based strategies that create safe learning environments by--
                    ``(A) preventing violence and other high-risk 
                behavior from occurring in and around schools; and
                    ``(B) preventing the illegal use of alcohol, 
                tobacco, and drugs among students.
            ``(4) To create New Economy Technology Schools (NETs) by 
        providing assistance to local educational agencies and schools 
        for--
                    ``(A) the acquisition, development, 
                interconnection, implementation, improvement, and 
                maintenance of an effective educational technology 
                infrastructure;
                    ``(B) the acquisition and maintenance of technology 
                equipment and the provision of training in the use of 
                such equipment for teachers, school library and media 
                personnel, and administrators;
                    ``(C) the acquisition or development of technology-
                enhanced curricula and instructional materials that are 
                aligned with challenging State content and student 
                performance standards; and
                    ``(D) the acquisition or development and 
                implementation of high-quality professional development 
                for teachers in the use of technology and its 
                integration with challenging State content and student 
                performance standards.

``SEC. 6002. 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. 6003. 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 Public 
                Education Reinvestment, Reinvention, and Responsibility 
                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 Public 
Education Reinvestment, Reinvention, and Responsibility 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. 6004. 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. 6005. 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 consisted 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
                    ``(J) 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. 6006. 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 receiving 
a grant award under section 6004(3) shall use the grant funds pursuant 
to this subsection to establish and carry out programs that are 
designed to achieve, separately or cumulatively, each of the goals 
described in the category areas described in paragraphs (1) through 
(4).
            ``(1) School improvement.--Each local educational agency 
        shall use 30 percent of the grant funds--
                    ``(A) in the case of a school that has been 
                identified as being in need of improvement under 
                section 1116(c), for activities or strategies that are 
                described in section 1116(c) that focus on removing 
                such school from improvement status; or
                    ``(B) for programs that seek to raise the academic 
                achievement levels of all elementary school and 
                secondary school students based on challenging State 
                content and student performance standards and, to the 
                greatest extent possible,--
                            ``(i) incorporate the best practices 
                        developed from research-based methods and 
                        practices;
                            ``(ii) are aligned with challenging State 
                        content and performance standards and focused 
                        on reinforcing and boosting the core academic 
                        skills and knowledge of students who are 
                        struggling academically, as determined by State 
                        assessments under section 1111(b)(4) and local 
                        evaluations;
                            ``(iii) focus on accelerated learning 
                        rather than remediation, so that students will 
                        master the high level of skills and knowledge 
                        needed to meet the highest State standards or 
                        to perform at high levels on all State 
                        assessments;
                            ``(iv) offer teachers, principals, and 
                        administrators professional development and 
                        technical assistance that are aligned with the 
                        content of such programs; and
                            ``(v) address local needs, as determined by 
                        the local educational agency's evaluation of 
                        school and districtwide data.
            ``(2) 21st century opportunities.--Each local educational 
        agency shall use 25 percent of the grant funds for--
                    ``(A) programs that provide for extra learning, 
                time, and opportunities for students so that all 
                students may achieve high levels of learning and meet 
                the State proficient standard level within 10 years of 
                the date of enactment of the Public Education 
                Reinvestment, Reinvention, and Responsibility Act;
                    ``(B) programs to improve higher order thinking 
                skills of all students, especially disadvantaged 
                students;
                    ``(C) promising innovative education reform 
                projects that are consistent with challenging State 
                content and student performance standards; or
                    ``(D) programs that focus on ensuring that 
                disadvantaged students enter elementary school with the 
                basic skills needed to meet the highest State content 
                and student performance standards.
            ``(3) Safe learning environments.--Each local educational 
        agency shall use 15 percent of the grant funds for programs 
        that help ensure that all elementary school and secondary 
        school students learn in a safe and supportive environment by--
                    ``(A) reducing drugs, violence, and other high-risk 
                behavior in schools;
                    ``(B) providing safe, extended-day opportunities 
                for students;
                    ``(C) providing professional development activities 
                for teachers, principals, mental health professionals, 
                and guidance counselors in dealing with students 
                exhibiting distress (such as substance abuse, 
                disruptive behavior, and suicidal behavior);
                    ``(D) recruiting or retaining high-quality mental 
                health professionals;
                    ``(E) providing character education for students; 
                or
                    ``(F) meeting other objectives that are established 
                under State standards regarding safety or that address 
                local community concerns.
            ``(4) New economy technology schools.--
                    ``(A) In general.--Each local educational agency 
                shall use 30 percent of the grant funds to establish 
                technology programs that will transform schools into 
                New Economy Technology Schools (NETs) and, to the 
                greatest extent possible, will--
                            ``(i) increase student performance related 
                        to an authentic task;
                            ``(ii) integrate the use of technology into 
                        activities that are a core part of classroom 
                        curricula and are available to all students;
                            ``(iii) emphasize how to use technology to 
                        accomplish authentic tasks;
                            ``(iv) provide professional development and 
                        technical assistance to teachers so that 
                        teachers may integrate technology into daily 
                        teaching activities that are directly aligned 
                        with State content and student performance 
                        standards; and
                            ``(v) enable the local educational agency 
                        annually to increase the percentage of 
                        classrooms with access to technology, 
                        particularly in schools in which not less than 
                        50 percent of the school-age population comes 
                        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.
                    ``(B) Limitation.--Each local educational agency 
                shall use not more than 50 percent of the grant funds 
                described in subparagraph (A) to purchase, upgrade, or 
                retrofit computer hardware in schools in which not less 
                than 50 percent of the school-age population comes from 
                families at or below the poverty line, as defined in 
                subparagraph (A)(v).
    ``(c) Transfer of Funds.--Notwithstanding subsection (b)--
            ``(1) a local educational agency that meets adequate yearly 
        progress requirements for student performance, as established 
        by the State educational agency under section 1111, may 
        allocate, at the local educational agency's discretion, not 
        more than 30 percent of the grant funds received under section 
        6004(3) among the 4 funding categories described in subsection 
        (b);
            ``(2) a local educational agency that exceeds the adequate 
        yearly progress requirements described in paragraph (1) by a 
        significant amount, as determined by the State educational 
        agency, may allocate, at the local educational agency's 
        discretion, not more than 50 percent of the grant funds 
        received under section 6004(3) among the 4 funding categories 
        described in subsection (b); and
            ``(3) a local educational agency that is identified as in 
        need of improvement, as defined under section 1117, may apply 
        not more than 25 percent of the grant funds described in 
        subsection (b)(2), (3), or (4) to school improvement activities 
        described in subsection (b)(1).
    ``(d) 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. 6007. 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.
            ``(2) 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. 6008. 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. 6009. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$2,700,000,000 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 subsection (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 Public 
                        Education Reinvention, Reinvestment, and 
                        Responsibility 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 Public 
                        Education Reinvestment, Reinvention, and 
                        Responsibility 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 ``Public Education Reinvestment, 
        Reinvention, and Responsibility 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 ``Public Education Reinvestment, 
        Reinvention, and Responsibility 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 ``Public Education Reinvestment, 
        Reinvention, and Responsibility 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 ``Public Education 
        Reinvestment, Reinvention, and Responsibility 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 ``Public Education Reinvestment, 
                        Reinvention, and Responsibility Act''; and
                            (ii) in subparagraph (B), by striking 
                        ``Improving America's Schools Act'' and 
                        inserting ``Public Education Reinvestment, 
                        Reinvention, and Responsibility Act''; and
                    (B) in subsection (f), by striking ``Improving 
                America's Schools Act of 1994'' and inserting ``Public 
                Education Reinvestment, Reinvention, and Responsibility 
                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 ``Public Education 
                                Reinvestment, Reinvention, and 
                                Responsibility 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, X, XI, XII, and XIII (20 U.S.C. 7201 et seq., 8001 et 
seq., 8401 et seq., 8501 et seq., 8601 et seq.) and the Goals 2000: 
Educate America Act (20 U.S.C. 5801 et seq.) are repealed.
                                 <all>