[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 158 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 158

                          To improve schools.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 23, 2001

Mr. Bingaman (for himself and Mr. Lugar) introduced the following bill; 
     which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
                          To improve schools.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``School Improvement Accountability 
Act''.

                TITLE I--HELPING DISADVANTAGED CHILDREN

SEC. 101. RESERVATIONS FOR ACCOUNTABILITY.

    Section 1003 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6303) is amended to read as follows:

``SEC. 1003. RESERVATION FOR ACCOUNTABILITY AND SCHOOL IMPROVEMENT.

    ``(a) State Reservation.--
            ``(1) In general.--Each State educational agency shall 
        reserve 3 percent of the amount the agency receives under part 
        A for each of fiscal years 2002 and 2003, and 5 percent of that 
        amount for each of fiscal years 2004 through 2006, to carry out 
        paragraph (2) and to carry out its responsibilities under 
        sections 1116 and 1117, including carrying out its statewide 
        system of technical assistance and providing support for local 
        educational agencies.
            ``(2) Local educational agencies.--Of the amount reserved 
        under paragraph (1) for any fiscal year, the State educational 
        agency shall allocate at least 80 percent directly to local 
        educational agencies. In making allocations under this 
        paragraph, the State educational agency shall give first 
        priority to agencies, and agencies serving schools, identified 
        for corrective action or improvement under section 1116(c).
            ``(3) Use of funds.--Each local educational agency 
        receiving an allotment under paragraph (2) shall use the 
        allotment to--
                    ``(A) carry out corrective action, as defined in 
                section 1116(c)(5)(A), in those schools; or
                    ``(B) achieve substantial improvement in the 
                performance of those schools.
    ``(b) National Activities.--From the total amount appropriated for 
any fiscal year to carry out this title, the Secretary may reserve not 
more than 0.30 percent to conduct evaluations and studies and to 
collect data.

SEC. 102. IMPROVED ACCOUNTABILITY.

    (a) State Plans.--Section 1111(b) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6311(b)) is amended--
            (1) in the subsection heading, by striking ``and 
        Assessments'' and inserting ``, Assessments, and 
        Accountability'';
            (2) by amending paragraph (2) to read as follows:
            ``(2) Adequate yearly progress.--(A) Each State plan shall 
        specify what constitutes adequate yearly progress in student 
        achievement, under the State's accountability system described 
        in paragraph (4), for each school and each local educational 
        agency receiving funds under this part, and for the State.
            ``(B) The specification of adequate yearly progress in the 
        State plan for schools--
                    ``(i) shall be based primarily on the standards 
                described in paragraph (1) and the valid and reliable 
                assessments aligned to State standards described in 
                paragraph (3);
                    ``(ii) shall include specific numerical adequate 
                yearly progress requirements in each subject and grade 
                included in the State assessments at least for each of 
                the assessments required under paragraph (3) and shall 
                base the numerical goal required for each group of 
                students specified in clause (iv) upon a timeline that 
                ensures all students meet or exceed the proficient 
                level of performance on the assessments required by 
                this section within 10 years after the effective date 
                of the School Improvement Accountability Act;
                    ``(iii) shall include other academic indicators, 
                such as school completion or dropout rates, with the 
                data for all such academic indicators disaggregated as 
                required by clause (iv), but the inclusion of such 
                indicators shall not decrease the number of schools or 
                local educational agencies that would be subject to 
                identification for improvement or corrective action if 
                the indicators were not included;
                    ``(iv) shall compare separately data for the State 
                as a whole, for each local educational agency, and for 
                each school, regarding the performance and progress of 
                students, disaggregated by each major ethnic and racial 
                group, by English proficiency status, and by 
                economically disadvantaged students as compared with 
                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 
                would be insufficient to yield statistically reliable 
                information or the results would reveal individually 
                identifiable information about individual students); 
                and
                    ``(v) shall compare the proportion of students at 
                the basic, proficient, and advanced levels of 
                performance in a grade for a year with the proportion 
                of students at each of the 3 levels in the same grade 
                in the previous year.
            ``(C)(i) Adequate yearly progress for a local educational 
        agency shall be based upon both--
                    ``(I) the number or percentage of schools 
                identified for school improvement or corrective action; 
                and
                    ``(II) the progress of the local educational agency 
                in reducing the number or length of time schools are 
identified for school improvement or corrective action.
            ``(ii) The State plan shall provide that each local 
        educational agency shall ensure that, not later than the end of 
        the fourth academic year after the effective date of the School 
        Improvement Accountability Act, the percentage of schools 
        making adequate yearly progress among schools whose 
        concentrations of poor children are greater than the average 
        concentration of such children served by the local educational 
        agency shall not be less than the percentage of schools making 
        adequate yearly progress among schools whose concentrations of 
        poor children are less than the average concentration of such 
        children served by the local educational agency.
            ``(D)(i) Adequate yearly progress for a State shall be 
        based upon both--
                    ``(I) the number or percentage of local educational 
                agencies identified for improvement or corrective 
                action; and
                    ``(II) the progress of the State in reducing the 
                number or length of time local educational agencies are 
                identified for improvement or corrective action.
            ``(ii) The State plan shall provide that the State shall 
        ensure that, not later than the end of the fourth academic year 
        after the effective date of the School Improvement 
        Accountability Act, the percentage of local educational 
        agencies making adequate yearly progress among local 
        educational agencies whose concentrations of poor children are 
        greater than the State average of such concentrations shall not 
        be less than the percentage of local educational agencies 
        making adequate yearly progress among local educational 
        agencies whose concentrations of poor children are less than 
        the State average.'';
            (3) in paragraph (3)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``developed or adopted'' 
                        and inserting ``in place''; and
                            (ii) by inserting ``, not later than the 
                        school year 2000-2001,'' after ``will be 
                        used'';
                    (B) by redesignating subparagraphs (G), (H), and 
                (I) as subparagraphs (H), (I), and (J);
                    (C) in subparagraph (F)--
                            (i) in clause (ii), by striking ``and'' 
                        after the semicolon; and
                            (ii) by adding at the end the following:
                            ``(iv) the use of assessments written in 
                        Spanish for the assessment of Spanish-speaking 
                        students with limited English proficiency, if 
                        Spanish-language assessments are more likely 
                        than English language assessments to yield 
                        accurate and reliable information regarding 
                        what those students know and can do in content 
                        areas other than English; and
                            ``(v) notwithstanding clauses (iii) and 
                        (iv), the assessment (using tests written in 
                        English) of reading or language arts of any 
                        student who has attended school in the United 
                        States (not including Puerto Rico) for 3 or 
                        more consecutive years, for purposes of school 
                        accountability;'';
                    (D) by inserting after subparagraph (F) the 
                following:
                    ``(G) result in a report from each local 
                educational agency that indicates the number and 
                percentage of students excluded from each assessment at 
                each school, including, where statistically sound, data 
                disaggregated in accordance with subparagraph (J), 
                except that a local educational agency shall be 
                prohibited from providing such information if providing 
                the information would reveal the identity of any 
                individual student.''; and
                    (E) by amending subparagraph (I) (as so 
                redesignated) to read as follows:
                    ``(I) provide individual student interpretive and 
                descriptive reports, which shall include scores and 
                other information on the attainment of student 
                performance standards that reflect the quality of daily 
                instruction and learning such as measures of student 
                coursework over time, student attendance rates, student 
                dropout rates, and rates of student participation in 
                advanced level courses; and``;
            (4) by striking paragraph (7);
            (5) by redesignating paragraphs (4), (5), (6), and (8) as 
        paragraphs (8), (9), (10), and (11), respectively;
            (6) by inserting after paragraph (3) the following:
            ``(4) Accountability.--(A) Each State plan shall 
        demonstrate that the State has developed and is implementing a 
        statewide accountability system that is or will be effective in 
        substantially increasing the numbers and percentages of all 
        students, including the lowest performing students, 
        economically disadvantaged students, and students with limited 
        proficiency in English, who meet the State's proficient and 
        advanced levels of performance within 10 years after the date 
        of enactment of the School Improvement Accountability Act. The 
        State accountability system shall--
                    ``(i) be the same accountability system the State 
                uses for all schools or all local educational agencies 
                in the State, if the State has an accountability system 
                for all schools or all local educational agencies in 
                the State;
                    ``(ii) hold local educational agencies and schools 
                accountable for student achievement in at least reading 
                and mathematics and in any other subject that the State 
                may choose; and
                    ``(iii) identify schools and local educational 
                agencies for improvement or corrective action based 
                upon failure to make adequate yearly progress as 
defined in the State plan pursuant to paragraph (2).
            ``(B) The accountability system described in subparagraph 
        (A) and described in the State plan shall also include a 
        procedure for identifying for improvement a school or local 
        educational agency, intervening in that school or agency, and 
        (if that intervention is not effective) implementing a 
        corrective action not later than 3 years after first 
        identifying such agency or school, that--
                    ``(i) complies with sections 1116 and 1117, 
                including the provision of technical assistance, 
                professional development, and other capacity-building 
                as needed, 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 
                adequate yearly progress described in paragraph (2); 
                and
                    ``(ii) includes rigorous criteria for identifying 
                those agencies and schools based upon failure to make 
                adequate yearly progress in student achievement in 
                accordance with paragraph (2).
            ``(5) Public notice and comment.--Each State plan shall 
        contain assurances that--
                    ``(A) in developing the State plan provisions 
                relating to adequate yearly progress, the State 
                diligently sought public comment from a range of 
                institutions and individuals in the State with an 
                interest in improved student achievement; and
                    ``(B) the State will continue to make a substantial 
                effort to ensure that information regarding this part 
                is widely known and understood by citizens, parents, 
                teachers, and school administrators throughout the 
                State, and is provided in a widely read or distributed 
                medium.
            ``(6) Annual review.--The State plan shall provide an 
        assurance that the State will annually submit to the Secretary 
        information, as part of the State's consolidated plan under 
        section 14302, on the extent to which schools and local 
        educational agencies are making adequate yearly progress, 
        including the number and names of schools and local educational 
        agencies identified for improvement and corrective action under 
        section 1116, the steps taken to address the performance 
        problems of such schools and local educational agencies, and 
        the number and names of schools that are no longer so 
        identified, for purposes of determining State and local 
        compliance with section 1116.
            ``(7) Penalties.--(A) The State plan shall provide that, if 
        the State fails to meet the deadlines described in paragraphs 
        (1)(C) and (10) for demonstrating that the State has in place 
        high-quality State content and student performance standards 
        and aligned assessments, or if the State fails to establish a 
        system for measuring and monitoring adequate yearly progress, 
        for a fiscal year, including having the ability to disaggregate 
        student achievement data for the assessments as required under 
        this section at the State, local educational agency, and school 
        levels, then the State shall be ineligible to reserve a greater 
        amount of administrative funds under section 1003 for the 
        succeeding fiscal year than the State reserved for such 
        purposes for the fiscal year preceding the fiscal year in which 
        the failure occurred.
            ``(B)(i) The State plan shall provide that, except as 
        described in clause (ii), if the State fails to meet the 
        deadlines described in paragraphs (1)(C) and (10) for a fiscal 
        year, then the Secretary may withhold funds made available 
        under this part for administrative expenses for the succeeding 
        fiscal year in such amount as the Secretary determines 
        appropriate.
            ``(ii) The State plan shall provide that, if the State 
        fails to meet the deadlines described in paragraphs (1)(C) and 
        (10) for the succeeding fiscal year or a subsequent fiscal 
        year, the Secretary shall withhold not less than \1/5\ of the 
        funds made available under this part for administrative 
        expenses for the fiscal year.
            ``(C) The State plan shall provide that, if the State has 
        not developed challenging State assessments that are aligned to 
        challenging State content standards in at least mathematics and 
        reading or language arts by school year 2000-2001, the State 
        shall not be eligible for designation as an Ed-Flex Partnership 
        State under the Education Flexibility Partnership Act of 1999 
        until the State develops such assessments, and the State shall 
        be subject to such other penalties as are provided in this Act 
        for failure to develop the assessments.''; and
            (7) by adding at the end the following:
            ``(12) School reports.--The State plan shall provide that 
        individual school reports publicized and disseminated under 
        section 1116(a)(2) shall include information on the total 
        number of students excluded from each assessment at each 
        school, including, where statistically sound, data 
        disaggregated in accordance with paragraph (3)(J), and shall 
        include information on why such students were excluded from the 
        assessment. In issuing this report, a local educational agency 
        may not provide any information that would violate the privacy 
        or reveal the identity of any individual student.''.
    (b) Assurances.--Section 1112(c)(1) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6312(c)(1)) is amended--
            (1) in subparagraph (G), by striking ``; and'' and 
        inserting a semicolon;
            (2) in subparagraph (H), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(I) ensure, through incentives for voluntary 
                transfers, the provision of professional development, 
                and recruitment programs, that low-income students and 
                minority students are not taught at higher rates than 
                other students by unqualified, out-of-field, or 
                inexperienced teachers.''.
    (c) Assessment and Improvement.--Section 1116 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6317) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) State and Local Review.--
            ``(1) In general.--Each local educational agency receiving 
        funds under this part shall use the State assessments and other 
        academic indicators described in the State plan or in a State-
        approved local educational agency plan to review annually the 
        progress of each school served under this part by the agency to 
        determine whether the school is making the adequate yearly 
        progress specified in section 1111(b)(2) toward enabling all 
        students to meet the State's student performance standards 
        described in the State plan.
            ``(2) Publication and dissemination; results.--Each local 
        educational agency receiving funds under this part shall--
                    ``(A) publicize and disseminate in individual 
                school reports that include statistically sound results 
                disaggregated in the same manner as results are 
                disaggregated under section 1111(b)(3)(J), to teachers 
                and other staff, parents, students, and the community, 
                the results of the annual review under paragraph (1) 
                and (if not already included in the review), graduation 
                rates, attendance rates, retention rates, and rates of 
                participation in advanced level courses, for all 
                schools served under this part; and
                    ``(B) provide the results of the annual review to 
                schools served by the agency under this part so that 
                the schools can continually refine their programs of 
                instruction to help all students served under this part 
                in those schools to meet the State's student 
                performance standards.'';
            (2) in subsection (c)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--(A) A local educational agency shall 
        identify for school improvement any school served under this 
        part that--
                    ``(i) for 2 consecutive years failed to make 
                adequate yearly progress as defined in the State's plan 
                under section 1111, except that in the case of a school 
                participating in a targeted assistance program under 
                section 1115, a local educational agency may review the 
                progress of only those students in such school who are 
                served under this part; or
                    ``(ii) was identified for school improvement under 
                this section on the day preceding the date of enactment 
                of the School Improvement Accountability Act.
            ``(B) The 2-year period described in subparagraph (A)(i) 
        shall include any continuous period of time immediately 
        preceding the date of the enactment of such Act, during which a 
        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.'';
                    (B) by amending paragraph (2) to read as follows:
            ``(2) Requirements.--(A)(i) Each school identified under 
        paragraph (1)(A) shall promptly notify a parent of each student 
        enrolled in the school that the school was identified for 
        improvement by the local educational agency and provide with 
        the notification--
                    ``(I) the reasons for such identification; and
                    ``(II) information about opportunities for parents 
                to participate in the school improvement process.
            ``(ii) The notification under this subparagraph shall be in 
        a format and, to the extent practicable, in a language, that 
        the parents can understand.
            ``(B)(i) Before identifying a school for school improvement 
        under paragraph (1)(A), the local educational agency shall 
        inform the school that the agency proposes to identify the 
        school for school improvement and provide the school with an 
        opportunity to review the school-level data, including 
        assessment data, upon which the proposed determination 
        regarding identification is based.
            ``(ii) If the school believes that the proposed 
        identification is in error for statistical or other substantive 
        reasons, the school may provide supporting evidence to the 
        local educational agency during the review period, and the 
        agency shall consider such evidence before making a final 
        determination regarding identification.
            ``(iii) The review period under this subparagraph shall not 
        exceed 30 days. At the end of the period, the agency shall make 
        public a final determination regarding indentification of the 
        school.
            ``(C) Each school identified under paragraph (1)(A) shall, 
        within 3 months after being so identified, and in consultation 
        with parents, the local educational agency, and the school 
        support team or other outside experts, develop or revise a 
        school plan that--
                    ``(i) addresses the fundamental teaching and 
                learning needs in the school;
                    ``(ii) describes the specific achievement problems 
                to be solved;
                    ``(iii) includes the strategies, supported by valid 
                and reliable evidence of effectiveness, with specific 
                goals and objectives, that have the greatest likelihood 
                of improving the performance of participating students 
                in meeting the State's student performance standards;
                    ``(iv) explains how those strategies will work to 
                address the achievement problems identified under 
                clause (ii), including providing a summary of 
                evaluation-based evidence of student achievement after 
                implementation of those strategies in other schools;
                    ``(v) addresses the need for high-quality staff by 
                ensuring that all new teachers in the school in 
programs supported with funds provided under this part are fully 
qualified;
                    ``(vi) addresses the professional development needs 
                of the instructional staff of the school by describing 
                a plan for spending a minimum of 10 percent of the 
                funds received by the school under this part on 
                professional development that--
                            ``(I) does not supplant professional 
                        development services that the instructional 
                        staff would otherwise receive; and
                            ``(II) is designed to increase the content 
                        knowledge of teachers, build teachers' capacity 
                        to align classroom instruction with challenging 
                        content standards, and bring all students in 
                        the school to proficient or advanced levels of 
                        performance;
                    ``(vii) identifies specific goals and objectives 
                the school will undertake for making adequate yearly 
                progress, including specific numerical performance 
                goals and targets that are high enough to ensure that 
                all groups of students specified in section 
                1111(b)(2)(B)(iv) meet or exceed the proficient levels 
                of performance in each subject area within 10 years 
                after the date of enactment of the School Improvement 
                Accountability Act; and
                    ``(viii) specifies the responsibilities of the 
                school and the local educational agency, including how 
                the local educational agency will hold the school 
                accountable for, and assist the school in, meeting the 
                school's obligations to provide enriched and 
                accelerated curricula, effective instructional methods, 
                highly qualified professional development, and timely 
                and effective individual assistance, in partnership 
                with parents.
            ``(D)(i) The school shall submit the plan (including a 
        revised plan) to the local educational agency for approval.
            ``(ii) The local educational agency shall promptly subject 
        the plan to a peer review process, work with the school to 
        revise the plan as necessary, and approve the plan.
            ``(iii) The school shall implement the plan as soon as the 
        plan is approved.'';
                    (C) by amending paragraph (4) to read as follows:
            ``(4) Technical assistance.--(A) For each school identified 
        for school improvement under paragraph (1)(A), the local 
        educational agency shall provide technical assistance as the 
        school develops and implements the school's plan.
            ``(B) Such technical assistance--
                    ``(i) shall include information on effective 
                methods and instructional strategies that are supported 
                by valid and reliable evidence of effectiveness;
                    ``(ii) shall be designed to strengthen the core 
                academic program for the students served under this 
                part, address specific elements of student performance 
                problems, and address problems, if any, in implementing 
                the parental involvement requirements in section 1118, 
                implementing the professional development provisions in 
                section 1119, and carrying out the responsibilities of 
                the school and local educational agency under the plan; 
                and
                    ``(iii) may be provided directly by the local 
                educational agency, through mechanisms authorized under 
                section 1117, or (with the local educational agency's 
                approval) by an institution of higher education whose 
                teacher preparation program is not identified as low 
                performing by its State and that is in full compliance 
                with the requirements of section 207 of the Higher 
                Education Act of 1965, a private nonprofit 
                organization, an educational service agency, a 
                comprehensive regional assistance center under part A 
                of title XIII, or other entities with experience in 
                helping schools improve achievement.
            ``(C) Technical assistance provided under this section by 
        the local educational agency or an entity approved by such 
        agency shall be supported by valid and reliable evidence of 
        effectiveness.'';
                    (D) by amending paragraph (5) to read as follows:
            ``(5) 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) In this paragraph, the term `corrective 
                action' means action, consistent with State and local 
                law, that--
                            ``(i) substantially and directly responds 
                        to the consistent academic failure that caused 
                        the local educational agency to take such 
                        action and to any underlying staffing, 
                        curricular, or other problems in the school 
                        involved; and
                            ``(ii) is designed to substantially 
                        increase the likelihood that students will 
                        perform at the proficient and advanced 
                        performance levels.
                    ``(B) After providing technical assistance under 
                paragraph (4), the local educational agency--
                            ``(i) may take corrective action at any 
                        time with respect to a school that has been 
                        identified under paragraph (1)(A);
                            ``(ii) shall take corrective action with 
                        respect to any school that fails to make 
                        adequate yearly progress, as defined by the 
                        State, for 2 consecutive years following the 
                        school's identification under paragraph (1)(A), 
                        at the end of the second year; and
                            ``(iii) shall continue to provide technical 
                        assistance while instituting any corrective 
                        action under clause (i) or (ii).
                    ``(C) In the case of a school described in 
                subparagraph (B)(ii), the local educational agency--
                            ``(i) shall take corrective action that 
                        changes the school's administration or 
                        governance by--
                                    ``(I) instituting and fully 
                                implementing a new curriculum, 
                                including providing appropriate 
                                professional development for all 
                                relevant staff, that is supported by 
                                valid and reliable evidence of 
                                effectiveness and offers substantial 
                                promise of improving educational 
                                achievement for low-performing 
                                students;
                                    ``(II) restructuring the school, 
                                such as by creating schools within 
                                schools or other small learning 
                                environments, or making alternative 
                                governance arrangements (such as the 
                                creation of a public charter school);
                                    ``(III) redesigning the school by 
                                reconstituting all or part of the 
                                school staff;
                                    ``(IV) eliminating the use of 
                                noncredentialed teachers; or
                                    ``(V) closing the school;
                            ``(ii) shall provide professional 
                        development for all relevant staff, that is 
                        supported by valid and reliable evidence of 
                        effectiveness and that offers substantial 
                        promise of improving student educational 
                        achievement and is directly related to the 
                        content area in which each teacher is providing 
                        instruction and the State's content and 
                        performance standards in that content area; and
                            ``(iii) may defer, reduce, or withhold 
                        funds provided to carry out this title.
                    ``(D)(i) When a local educational agency has 
                identified a school for corrective action under 
                subparagraph (B)(ii), the agency shall provide all 
                students enrolled in the school with the option to 
                transfer to another public school that is within the 
                area served by the local educational agency that has 
                not been identified for school improvement and provide 
                such students with transportation (or the costs of 
                transportation) to such school, subject to the 
                following requirements:
                            ``(I) Such transfer must be consistent with 
                        State or local law.
                            ``(II) If the local educational agency 
                        cannot accommodate the request of every student 
                        from the identified school, the agency shall 
                        permit as many students as possible to 
                        transfer, with such students being selected at 
                        random on a nondiscriminatory and equitable 
                        basis.
                            ``(III) The local educational agency may 
                        use not more than 10 percent of the funds the 
                        local educational agency receives through the 
                        State reservation under section 1003(a)(2) to 
                        provide transportation to students whose 
                        parents choose to transfer the students to a 
                        different school under this subparagraph.
                    ``(ii) If all public schools served by the local 
                educational agency are identified for corrective 
                action, the agency shall, to the extent practicable, 
                establish a cooperative agreement with another local 
                educational agency in the area to enable students 
                served by the agency to transfer to a school served by 
                that other agency.
                    ``(E) A local educational agency may delay, for a 
                period not to exceed 1 year, implementation of 
                corrective action 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.
                    ``(F) The local educational agency shall publish 
                and disseminate to parents and the public in a format 
                and, to the extent practicable, in a language the 
                parents and the public can understand, through such 
                means as the Internet, the media, and public agencies, 
                information on any corrective action the agency takes 
                under this paragraph.
                    ``(G)(i) Before taking corrective action with 
                respect to any school under this paragraph, the local 
                educational agency shall inform the school that the 
                agency proposes to take corrective action and provide 
                the school with an opportunity to review the school-
                level data, including assessment data, upon which the 
                proposed determination regarding corrective action is 
                based.
                    ``(ii) If the school believes that the proposed 
                determination is in error for statistical or other 
                substantive reasons, the school may provide supporting 
                evidence to the local educational agency during the 
                review period, and the agency shall consider such 
                evidence before making a final determination regarding 
                corrective action.
                    ``(iii) The review period under this subparagraph 
                shall not exceed 45 days. At the end of the period, the 
                local educational agency shall make public a final 
                determination regarding corrective action for the 
                school.'';
                    (E) by amending paragraph (6) to read as follows:
            ``(6) State educational agency responsibilities.--If a 
        State educational agency determines that a local educational 
        agency failed to carry out its responsibilities under this 
        section, the State educational agency shall take such action as 
        the agency finds necessary, consistent with this section, to 
        improve the affected schools and to ensure that the local 
        educational agency carries out its responsibilities under this 
        section.''; and
                    (F) by amending paragraph (7) to read as follows:
            ``(7) Waivers.--The State educational agency shall review 
        any waivers that have previously been approved for a school 
        identified for improvement or corrective action, and shall 
        terminate any waiver approved by the State, under the 
        Educational Flexibility Partnership Act of 1999, if the State 
        determines, after notice and an opportunity for a hearing, that 
        the waiver is not helping such school make adequate yearly 
        progress toward meeting the goals, objectives, and performance 
        targets in the school's improvement plan.''; and
            (3) by amending subsection (d) 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 
        receiving funds under this part to determine whether schools 
        receiving assistance under this part are making adequate yearly 
        progress as defined in section 1111(b)(2) toward meeting the 
        State's student performance standards.
            ``(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 failed to make 
                adequate yearly progress as defined in the State's plan 
                under section 1111(b)(2); or
                    ``(B) was identified for improvement under this 
                section as this section was in effect on the day 
                preceding the date of enactment of the School 
                Improvement Accountability Act.
            ``(3) Transition.--The 2-year period described in paragraph 
        (2)(A) shall include any continuous period of time immediately 
        preceding the date of enactment of such 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 enactment.
            ``(4) Targeted assistance schools.--For purposes of 
        reviewing the progress of targeted assistance schools served by 
        a local educational agency, a State educational agency may 
        choose to review the progress of only the students in such 
        schools who are served 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 inform 
        the local educational agency that the State educational agency 
        proposes to identify the local educational agency for 
        improvement and provide the local educational agency with an 
        opportunity to review the local educational agency data, 
        including assessment data, upon which the proposed 
        determination regarding identification is based.
            ``(B) If the local educational agency believes that the 
        proposed identification is in error for statistical or other 
        substantive reasons, the agency may provide supporting evidence 
        to the State educational agency during the review period, and 
        the agency shall consider such evidence before making a final 
        determination regarding identification.
            ``(C) The review period under this paragraph shall not 
        exceed 30 days. At the end of the period, the State shall make 
        public a final determination regarding identification of the 
        local educational agency.
            ``(6) Notification to parents.--(A) The local educational 
        agency shall promptly notify a parent of each student enrolled 
        in a school served by a local educational agency identified for 
        improvement that the agency was identified for improvement and 
        provide with the notification--
                            (i) the reasons for the agency's 
                        identification; and
                            (ii) information about opportunities for 
                        parents to participate in upgrading the quality 
                        of the local educational agency.
            ``(B) The notification under this paragraph shall be in a 
        format and, to the extent practicable, in a language, that the 
        parents can understand.
            ``(7) Local educational agency revisions.--(A) Each local 
        educational agency identified under paragraph (2) shall, not 
        later than 3 months after being so identified, develop or 
        revise a local educational agency plan and annual academic 
        achievement goals, in consultation with parents, school staff, 
        and others.
            ``(B) Achievement goals.--The annual academic achievement 
        goals shall be sufficiently high to ensure that all students 
        within the jurisdiction involved, including the lowest 
        performing students, economically disadvantaged students, 
        students of different races and ethnicities, and students with 
        limited English proficiency will meet or exceed the proficient 
        level of performance on the assessments required by section 
        1111 within 10 years after the date of enactment of the School 
        Improvement Accountability Act.
            ``(C) The plan shall--
                    ``(i) address the fundamental teaching and learning 
                needs in the schools served by that agency, and the 
                specific academic problems of low-performing students, 
                including stating a determination of why the local 
                educational agency's prior plan, if any, failed to 
                bring about increased achievement;
                    ``(ii) incorporate strategies that are supported by 
                valid and reliable evidence of effectiveness and that 
                strengthen the core academic program in the local 
                educational agency;
                    ``(iii) identify specific annual academic 
                achievement goals and objectives that will--
                            ``(I) have the greatest likelihood of 
                        improving the performance of participating 
                        students in meeting the State's student 
                        performance standards; and
                            ``(II) include specific numerical 
                        performance goals and targets for each of the 
                        groups of students for which data are 
                        disaggregated pursuant to section 
                        1111(b)(2)(B)(iv);
                    ``(iv) address the professional development needs 
                of the instructional staff of the schools by describing 
                a plan for spending a minimum of 10 percent of the 
                funds received by the schools under this part on 
                professional development that--
                            ``(I) does not supplant professional 
                        development services that the instructional 
                        staff would otherwise receive; and
                            ``(II) is designed to increase the content 
                        knowledge of teachers, build teachers' capacity 
                        to align classroom instruction with challenging 
                        content standards, and bring all students in 
                        the schools to proficient or advanced levels of 
                        performance;
                    ``(v) identify measures the local educational 
                agency will undertake to make adequate yearly progress;
                    ``(vi) identify how, pursuant to paragraph (6), the 
                local educational agency will provide written 
                notification to parents in a format and, to the extent 
                practicable, in a language the parents can understand;
                    ``(vii) specify the responsibilities of the State 
                educational agency and the local educational agency 
                under the plan; and
                    ``(viii) include strategies to promote effective 
                parental involvement in the schools.
            ``(D) The local educational agency shall submit the plan 
        (including a revised plan) to the State educational agency for 
        approval. The State educational agency shall, within 60 days 
        after submission of the plan, subject the plan to a peer review 
        process, work with the local educational agency to revise the 
        plan as necessary, and approve the plan.
            ``(E) The local educational agency shall implement the plan 
        (including a revised plan) as soon as the plan is approved.
            ``(8) State educational agency responsibility.--(A) For 
        each local educational agency identified under paragraph (2), 
        the State educational agency (or an entity authorized by the 
        agency) shall provide technical or other assistance, if 
        requested, as authorized under section 1117, to better enable 
        the local educational agency--
                    ``(i) to develop and implement the local 
                educational agency plan as approved by the State 
                educational agency consistent with the requirements of 
                this section; and
                    ``(ii) to work with schools identified for 
                improvement.
            ``(B) Technical assistance provided under this section by 
        the State educational agency or an entity authorized by the 
        agency shall be supported by valid and reliable evidence of 
        effectiveness.
            ``(9) 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) In this paragraph, the term `corrective 
                action' means action, consistent with State law, that--
                            ``(i) substantially and directly responds 
                        to the consistent academic failure that caused 
                        the State educational agency to take such 
                        action and to any underlying staffing, 
                        curricular, or other problems in the schools 
                        involved; and
                            ``(ii) is designed to substantially 
                        increase the likelihood that students served 
                        under this part will perform at the proficient 
                        and advanced performance levels.
                    ``(B) After providing technical assistance under 
                paragraph (8) and subject to subparagraph (D), the 
                State educational agency--
                            ``(i) may take corrective action at any 
                        time with respect to a local educational agency 
that has been identified under paragraph (2);
                            ``(ii) shall take corrective action with 
                        respect to any local educational agency that 
                        fails to make adequate yearly progress, as 
                        defined by the State, for 3 consecutive years 
                        following the agency's identification under 
                        paragraph (2), at the end of the third year; 
                        and
                            ``(iii) shall continue to provide technical 
                        assistance while instituting any corrective 
                        action under clause (i) or (ii).
                    ``(C) In the case of a local educational agency 
                described in subparagraph (B)(ii), the State 
                educational agency shall take at least 1 of the 
                following corrective actions:
                            ``(i) Withholding funds from the local 
                        educational agency.
                            ``(ii) Reconstituting school district 
                        personnel.
                            ``(iii) Removing particular schools from 
                        the jurisdiction of the local educational 
                        agency and establishing alternative 
                        arrangements for public governance and 
                        supervision of the schools.
                            ``(iv) Appointing, through the State 
                        educational agency, a receiver or trustee to 
                        administer the affairs of the local educational 
                        agency in place of the superintendent and 
                        school board.
                            ``(v) Abolishing or restructuring the local 
                        educational agency.
                    ``(D) When a State educational agency has 
                identified a local educational agency for corrective 
                action under subparagraph (B)(ii), the State 
                educational agency shall provide all students enrolled 
                in a school served by the local educational agency with 
                a plan to transfer to a higher performing public school 
                served by another local educational agency and shall 
                provide such students with transportation (or the costs 
                of transportation) to such schools, subject to the 
                following requirements:
                            ``(i) The provision of the transfer shall 
                        be done in conjunction with at least 1 
                        additional action described in this paragraph.
                            ``(ii) If the State educational agency 
                        cannot accommodate the request of every student 
                        from the schools served by the agency, the 
                        agency shall permit as many students as 
                        possible to transfer, with such students being 
                        selected at random on a nondiscriminatory and 
                        equitable basis.
                            ``(iii) The State educational agency may 
                        use not more than 10 percent of the funds the 
                        agency receives through the State reservation 
                        under section 1003(a)(2) to provide 
                        transportation to students whose parents choose 
                        to transfer their child to a different school 
                        under this subparagraph.
                    ``(E) Prior to implementing any corrective action 
                under this paragraph, the State educational agency 
                shall provide due process and a hearing to the affected 
                local educational agency, if State law provides for 
                such process and hearing. The hearing shall take place 
                not later than 45 days following the decision to 
                implement the corrective action.
                    ``(F) The State educational agency shall publish 
                and disseminate to parents and the public in a format 
                and, to the extent practicable, in a language the 
                parents and the public can understand, through such 
                means as the Internet, the media, and public agencies, 
                information on any corrective action the agency takes 
                under this paragraph.
                    ``(G) A State educational agency may delay, for a 
                period not to exceed 1 year, implementation of 
                corrective action 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.
            ``(10) Waivers.--The State educational agency shall review 
        any waivers that have previously been approved for a local 
        educational agency identified for improvement or corrective 
        action, and shall terminate any waiver approved by the State, 
        under the Educational Flexibility Partnership Act of 1999, if 
        the State determines, after notice and an opportunity for a 
        hearing, that the waiver is not helping such agency make 
        adequate yearly progress toward meeting the goals, objectives, 
        and performance targets in the agency's improvement plan.''.
    (d) State Assistance for School Support and Improvement.--Section 
1117(a) of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6318(a)) is amended to read as follows:
    ``(a) System for Support.--
            ``(1) In general.--Each State educational agency shall 
        establish a statewide system of intensive and sustained support 
        and improvement for local educational agencies and schools 
        receiving funds under this part, in order to increase the 
        opportunity for all students served by those agencies and 
        schools to meet the State's content standards and student 
        performance standards.
            ``(2) Priorities.--In carrying out this section, a State 
        educational agency shall--
                    ``(A) provide support and assistance to local 
                educational agencies and schools identified for 
                corrective action under section 1116;
                    ``(B) provide support and assistance to other local 
                educational agencies and schools identified for 
                improvement under section 1116; and
                    ``(C) provide support and assistance to each school 
                receiving funds under this part in which the number of 
                students in poverty equals or exceeds 75 percent of the 
                total number of students enrolled in such school.
            ``(3) Approaches.--In order to achieve the objectives of 
        this subsection, each statewide system shall provide technical 
assistance and support through approaches such as--
                    ``(A) use of school support teams, composed of 
                individuals who are knowledgeable about research on and 
                practice of teaching and learning, particularly about 
                strategies for improving educational results for low-
                achieving students;
                    ``(B) the designation and use of `Distinguished 
                Educators', chosen from schools served under this part 
                that have been especially successful in improving 
                academic achievement;
                    ``(C) assisting local educational agencies or 
                schools to implement research-based comprehensive 
                school reform models; and
                    ``(D) use of a peer review process designed to 
                increase the capacity of local educational agencies and 
                schools to develop high-quality school improvement 
                plans.
            ``(4) Funds.--Each State educational agency--
                    ``(A) shall use funds reserved under section 
                1003(a)(1), but not used under section 1003(a)(2) and 
                funds appropriated under section 1002(f) to carry out 
                this section; and
                    ``(B) may use State administrative funds authorized 
                for such purpose.
            ``(5) Alternatives.--The State educational agency may 
        devise additional approaches to providing the assistance 
        described in subparagraphs (A) and (B) of paragraph (3), other 
        than the provision of assistance under the statewide system, 
        such as providing assistance through institutions of higher 
        education, educational service agencies, or other local 
        consortia. The State educational agency may seek approval from 
        the Secretary to use funds made available under section 1003 
        for such approaches as part of the State plan.''.
    (e) Conforming Amendments.--The Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6301 et seq.) is amended--
            (1) in section 1111(b)(1)(C) (20 U.S.C. 6311(b)(1)(C)), by 
        striking ``paragraph (6)'' and inserting ``paragraph (10)'';
            (2) in section 1112(c)(1)(D) (20 U.S.C. 6312(c)(1)(D)), by 
        striking ``section 1116(c)(4)'' and inserting ``section 
        1116(c)(5)'';
            (3) in section 1117(c)(2)(A) (20 U.S.C. 6318(c)(2)(A)), by 
        striking ``section 1111(b)(2)(A)(i)'' and inserting ``section 
        1111(b)(2)(A)'';
            (4) in section 1118(c)(4)(B) (20 U.S.C. 6319(c)(4)(B)), by 
        striking ``school performance profiles required under section 
        1116(a)(3)'' and inserting ``individual school reports required 
        under section 1116(a)(2)(A)'';
            (5) in section 1118(e)(1) (20 U.S.C. 6319(e)(1)), by 
        striking ``section 1111(b)(8)'' and inserting ``section 
        1111(b)(11)''; and
            (6) in section 1119(h)(3) (20 U.S.C. 6320(h)(3)), by 
        striking ``section 1116(d)(6)'' and inserting ``section 
        1116(d)(9)''.

SEC. 103. COMPREHENSIVE SCHOOL REFORM.

    Title I of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6301 et seq.) is amended--
            (1) by redesignating part F as part G; and
            (2) by inserting after part E the following:

                 ``PART F--COMPREHENSIVE SCHOOL REFORM

``SEC. 1551. PURPOSE.

    ``The purpose of this part is to provide financial incentives for 
schools to develop comprehensive school reforms based upon promising 
and effective practices and research-based programs that emphasize 
basic academics and parental involvement so that all children can meet 
challenging State content and student performance standards.

``SEC. 1552. PROGRAM AUTHORIZATION.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary may award grants to State 
        educational agencies, from allotments under paragraph (2), to 
        enable the State educational agencies to award subgrants to 
        local educational agencies to carry out the purpose described 
        in section 1551.
            ``(2) Allotments.--
                    ``(A) Reservations.--Of the amount appropriated 
                under section 1558 for a fiscal year, the Secretary may 
                reserve--
                            ``(i) not more than 1 percent to provide 
                        assistance to schools supported by the Bureau 
                        of Indian Affairs and in the United States 
                        Virgin Islands, Guam, American Samoa, and the 
                        Commonwealth of the Northern Mariana Islands 
                        according to their respective needs for 
                        assistance under this part; and
                            ``(ii) not more than 1 percent to conduct 
                        national evaluation activities described in 
                        section 1557.
                    ``(B) In general.--Of the amount appropriated under 
                section 1558 that remains after making the reservation 
                under subparagraph (A) for a fiscal year, the Secretary 
                shall allot to each State for the fiscal year an amount 
                that bears the same ratio to the remainder for that 
                fiscal year as the amount made available under section 
                1124 to the State for the preceding fiscal year bears 
                to the total amount made available under section 1124 
                to all States for the preceding fiscal year.
                    ``(C) Reallotment.--If a State does not apply for 
                funds under this part, the Secretary shall reallot such 
                funds to other States in proportion to the amount 
                allotted to such other States under subparagraph (B).

``SEC. 1553. STATE APPLICATIONS.

    ``(a) In General.--Each State educational agency that desires to 
receive a grant under this part shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may reasonably require.
    ``(b) Contents.--Each such application shall describe--
            ``(1) the process and selection criteria by which the State 
        educational agency, using expert review, will select local 
        educational agencies to receive subgrants under this part;
            ``(2) how the State educational agency will ensure that 
        only comprehensive school reforms that are based upon promising 
        and effective practices and research-based programs receive 
        funds under this part;
            ``(3) how the State educational agency will disseminate 
        information on comprehensive school reforms that are based upon 
        promising and effective practices and research-based programs;
            ``(4) how the State educational agency will evaluate the 
        implementation of such reforms and measure the extent to which 
        the reforms have resulted in increased student academic 
        performance; and
            ``(5) how the State educational agency will make available 
        technical assistance to a local educational agency in 
        evaluating, developing, and implementing comprehensive school 
        reform.

``SEC. 1554. STATE USE OF FUNDS.

    ``(a) In General.--Except as provided in subsection (e), a State 
educational agency that receives a grant under this part shall use the 
grant funds to award subgrants, on a competitive basis, to local 
educational agencies (including consortia of local educational 
agencies) in the State that receive funds under part A.
    ``(b) Subgrant Requirements.--A subgrant to a local educational 
agency shall be--
            ``(1) 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;
            ``(2) in an amount not less than $50,000 for each 
        participating school; and
            ``(3) renewable for 2 additional 1-year periods after the 
        initial 1-year grant is made, if the participating school is 
        making substantial progress in the implementation of reforms.
    ``(c) Priority.--A State educational agency, in awarding subgrants 
under this part, shall give priority to local educational agencies 
that--
            ``(1) plan to use the funds in schools identified for 
        improvement or corrective action under section 1116(c); and
            ``(2) demonstrate a commitment to assist schools with 
        budget allocation, professional development, and other 
        strategies necessary to ensure that comprehensive school 
        reforms are properly implemented and are sustained in the 
        future.
    ``(d) Grant Consideration.--In awarding subgrants under this part, 
the State educational agency shall take into consideration the 
equitable distribution of subgrants to different geographic regions 
within the State, including urban and rural areas, and to schools 
serving elementary school and secondary school students.
    ``(e) Administrative Costs.--A State educational agency that 
receives a grant under this part may reserve not more than 5 percent of 
the grant funds for administrative, evaluation, and technical 
assistance expenses.
    ``(f) Supplement.--Funds made available under this part shall be 
used to supplement, and not supplant, any other Federal, State, or 
local funds that would otherwise be available to carry out the 
activities assisted under this part.
    ``(g) Reporting.--Each State educational agency that receives a 
grant under this part shall provide to the Secretary such information 
as the Secretary may require, including the names of local educational 
agencies and schools receiving assistance under this part, the amount 
of the assistance, and a description of the comprehensive school reform 
model selected and used.

``SEC. 1555. LOCAL APPLICATIONS.

    ``(a) In General.--Each local educational agency desiring a 
subgrant under this part shall submit an application to the State 
educational agency at such time, in such manner, and containing such 
information as the State educational agency may reasonably require.
    ``(b) Contents.--Each such application shall--
            ``(1) identify the schools, that are eligible for 
        assistance under part A, that plan to implement a comprehensive 
        school reform program and include the projected costs of such 
        program;
            ``(2) describe the promising and effective practices and 
        research-based programs that such schools will implement;
            ``(3) describe how the local educational agency will 
        provide technical assistance and support for the effective 
        implementation of the promising and effective practices and 
        research-based school reforms selected by such schools; and
            ``(4) describe how the local educational agency will 
        evaluate the implementation of such reforms and measure the 
        results achieved in improving student academic performance.

``SEC. 1556. LOCAL USE OF FUNDS.

    ``(a) Use of Funds.--A local educational agency that receives a 
subgrant under this part shall provide the subgrant funds to schools, 
that are eligible for assistance under part A and served by the agency, 
to enable the schools to implement a comprehensive school reform 
program for--
            ``(1) employing innovative strategies for student learning, 
        teaching, and school management that are based upon promising 
        and effective practices and research-based programs and have 
        been replicated successfully in schools with diverse 
        characteristics;
            ``(2) integrating a comprehensive design for effective 
        school functioning, including instruction, assessment, 
        classroom management, professional development, parental 
        involvement, and school management, that aligns the school's 
        curriculum, technology, and professional development into a 
        comprehensive reform plan for schoolwide change designed to 
        enable all students to meet challenging State content and 
        student performance standards and addresses needs identified 
        through a school needs assessment;
            ``(3) providing high quality and continuous teacher and 
        staff professional development;
            ``(4) including measurable goals for student performance;
            ``(5) providing support to teachers, principals, 
        administrators, and other school personnel staff;
            ``(6) including meaningful community and parental 
        involvement initiatives that will strengthen school improvement 
        activities;
            ``(7) using high quality external technical support and 
        assistance from an entity that has experience and expertise in 
        schoolwide reform and improvement, which may include an 
        institution of higher education;
            ``(8) evaluating school reform implementation and student 
        performance; and
            ``(9) identifying other resources, including Federal, 
        State, local, and private resources, that will be used to 
        coordinate services supporting and sustaining the school reform 
        effort.
    ``(b) 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 Secretary, but may develop 
the school's own comprehensive school reform programs for schoolwide 
change as described in subsection (a).

``SEC. 1557. NATIONAL EVALUATION AND REPORTS.

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

``SEC. 1558. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$500,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of the 4 succeeding fiscal years.''.

                           TITLE II--TEACHERS

SEC. 201. STATE APPLICATIONS.

    (a) Contents of State Plan.--Section 2205(b)(2) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6645(b)(2)) is amended--
            (1) by amending subparagraph (N) to read as follows:
                    ``(N) set specific annual, quantifiable, and 
                measurable performance goals to increase the percentage 
                of teachers participating in sustained professional 
                development activities, reduce the beginning teacher 
                attrition rate, and reduce the percentage of teachers 
                who are not certified or licensed, and the percentage 
                who are out-of-field teachers;'';
            (2) by redesignating subparagraph (O) as subparagraph (P); 
        and
            (3) by inserting after subparagraph (N) the following:
                    ``(O) describe how the State will ensure that all 
                teachers in the State will be fully qualified not later 
                than December 1, 2005; and''.
    (b) State and Local Activities.--Part B of title II of the 
Elementary and Secondary Education Act (20 U.S.C. 6641 et seq.) is 
amended--
            (1) by redesignating section 2211 as section 2215;
            (2) by inserting after section 2210 the following:

``SEC. 2211. LOCAL CONTINUATION OF FUNDING.

    ``(a) Agencies.--If a local educational agency applies for funds 
from a State under this part for a fourth or subsequent fiscal year, 
the agency may not receive the funds for that fiscal year unless the 
State determines that the agency has demonstrated that, in carrying out 
activities under this part during the past fiscal year, the agency has 
annual numerical performance objectives consisting of--
            ``(1) improved student performance for all groups 
        identified in section 1111;
            ``(2) an increased percentage of teachers participating in 
        sustained professional development activities;
            ``(3) a reduction in the beginning teacher attrition rate 
        for the agency; and
            ``(4) a reduction in the percentage of teachers who are not 
        certified or licensed, and the percentage who are out-of-field 
        teachers, for the agency.
    ``(b) Schools.--If a local educational agency applies for funds 
under this part on behalf of a school for a fourth or subsequent fiscal 
year (including applying for funds as part of a partnership), the 
agency may not receive the funds for the school for that fiscal year 
unless the State determines that the school has demonstrated that, in 
carrying out activities under this part during the past fiscal year, 
the school has met the requirements of paragraphs (1) through (4) of 
subsection (a).

``SEC. 2212. INFORMATION AND NOTICE TO PARENTS.

    ``(a) Parents' Right To Know Information.--
            ``(1) In general.--A local educational agency that receives 
        funds under this title shall provide, on request, in an 
        understandable and uniform format, to any parent of a student 
        attending any school served by the agency, information 
        regarding the professional qualifications of each of the 
        student's classroom teachers.
            ``(2) Contents.--The agency shall provide, at a minimum, 
        information on--
                    ``(A) whether the teacher has met State 
                certification or licensing criteria for the academic 
                subjects and grade levels in which the teacher teaches 
                the student;
                    ``(B) whether the teacher is teaching with 
                emergency or other provisional credentials, due to 
which any State certification or licensing criteria have been waived; 
and
                    ``(C) the academic qualifications of the teacher in 
                the academic subjects and grade levels in which the 
                teacher teaches.
    ``(b) Notice.--In addition to providing the information described 
in subsection (a), if a school that receives funds under this title 
assigns a student to a teacher who is not a fully qualified teacher or 
assigns a student, for 2 or more consecutive weeks, to a substitute 
teacher who is not a fully qualified teacher, the school shall provide 
notice of the assignment to a parent of the student, not later than 15 
school days after the assignment.

``SEC. 2213. GENERAL ACCOUNTING OFFICE STUDY.

    ``Not later than September 30, 2005, 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 for fiscal years 
2001 through 2004.

``SEC. 2214. DEFINITION OF FULLY QUALIFIED.

    ``(a) In General.--In this part, the term `fully qualified', used 
with respect to a teacher, means a teacher who--
            ``(1)(A) has demonstrated the subject matter knowledge, 
        teaching knowledge, and teaching skill necessary to teach 
        effectively in the academic subject in which the teacher 
        teaches, according to the criteria described in subsections (b) 
        and (c); and
            ``(B) is not a teacher for whom State certification or 
        licensing requirements have been waived or who is teaching 
        under an emergency or other provisional credential; or
            ``(2) meets the standards set by the National Board for 
        Professional Teaching Standards.
    ``(b) Elementary School.--For purposes of making the demonstration 
described in subsection (a)(1), each teacher who teaches elementary 
school students (other than middle school students) shall, at a 
minimum--
            ``(1) have State certification (which may include 
        certification obtained through an alternative route) or a State 
        license to teach; and
            ``(2) hold a bachelor's degree and demonstrate the subject 
        matter knowledge, teaching knowledge, and teaching skill 
        required to teach effectively in reading, writing, mathematics, 
        social studies, science, and other elements of a liberal arts 
        education.
    ``(c) Middle School and Secondary School.--For purposes of making 
the demonstration described in subsection (a)(1), each teacher who 
teaches middle school students or secondary school students shall, at a 
minimum--
            ``(1) have State certification (which may include 
        certification obtained through an alternative route) or a State 
        license to teach; and
            ``(2) hold a bachelor's degree or higher degree and 
        demonstrate a high level of competence in all academic subjects 
        in which the teacher teaches through--
                    ``(A) achievement of a high level of performance on 
                rigorous academic subject area tests;
                    ``(B) completion of an academic major (or courses 
                totaling an equivalent number of credit hours) in each 
                of the academic subjects in which the teacher teaches; 
                or
                    ``(C) in the case of teachers hired before the date 
                of enactment of the School Improvement Accountability 
                Act, completion of appropriate coursework for mastery 
                of the academic subjects in which the teacher 
                teaches.''; and
            (3) by amending section 2215 (as so redesignated)--
                    (A) in subsection (a)(3), by adding after 
                ``agency'' the following: ``for which at least 40 
                percent of the students served by the agency are 
                eligible for free or reduced price lunches under the 
                Richard B. Russell National School Lunch Act''; and
                    (B) by inserting after subsection (a)(4) the 
                following:
            ``(5) Reporting requirements.--Each institution of higher 
        education receiving assistance under paragraph (1) shall fully 
        comply with all reporting requirements of title II of the 
        Higher Education Act of 1965.''.
    (c) Conforming Amendments.--The Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6301 et seq.) is amended--
            (1) in section 2203(2) (20 U.S.C. 6643(2)), by striking 
        ``section 2211'' and inserting ``section 2215''; and
            (2) in section 2205(c)(2) (20 U.S.C. 6645(c)(2)), by 
        striking ``section 2211'' and inserting ``section 2215''.

                    TITLE III--INNOVATIVE EDUCATION

SEC. 301. REQUIREMENTS FOR STATE PLANS.

    Part B of title VI of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7331 et seq.) is amended by adding at the end the 
following:

``SEC. 6203. REQUIREMENTS FOR STATE PLANS.

    ``(a) State Plans.--In addition to requirements relating to State 
applications under this part, the State educational agency for each 
State desiring a grant under this title shall submit a State plan that 
meets the requirements of this section to the Secretary at such time, 
in such manner, and accompanied by such information as the Secretary 
may require.
    ``(b) Consolidated Plan.--A State plan submitted under subsection 
(a) may be submitted as part of a consolidated plan under section 
14302, and as part of a State application described in section 6202.
    ``(c) Contents.--Each plan submitted under subsection (a) shall--
            ``(1) describe how the funds made available through the 
        grant will be used to increase student academic performance;
            ``(2) describe annual, quantifiable, and measurable 
        performance goals that will be used to measure the impact of 
        those funds on student performance;
            ``(3) describe the methods the State will use to measure 
        the annual impact of programs described in the plan and the 
        extent to which such goals are aligned with State standards;
            ``(4) certify that the State has in place the standards and 
        assessments required under section 1111;
            ``(5) certify that the State educational agency has a 
        system, as required under section 1111, for--
                    ``(A) holding each local educational agency and 
                school accountable for adequate yearly progress (as 
                described in section 1111(b)(2));
                    ``(B) identifying local educational agencies and 
                schools for improvement and corrective action (as 
                required in sections 1116 and 1117);
                    ``(C) assisting local educational agencies and 
                schools that are identified for improvement with the 
                development of improvement plans; and
                    ``(D) providing technical assistance, professional 
                development, and other capacity building as needed to 
                get such agencies and schools out of improvement 
                status;
            ``(6) certify that the State educational agency will use 
        the disaggregated results of student assessments required under 
        section 1111(b)(3), 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 
        each such agency and school is making adequate yearly progress 
        as required under section 1111(b)(2);
            ``(7) certify that the State educational agency will take 
        action against a local educational agency that is identified 
        for corrective action and receiving funds under this title;
            ``(8) describe what, if any, State and other non-Federal 
        resources will be provided to local educational agencies and 
        schools served under this title to carry out activities 
        consistent with this title; and
            ``(9) certify that the State educational agency has a 
        system to hold local educational agencies accountable for 
        meeting the annual performance goals required under paragraph 
        (2).
    ``(d) Approval.--The Secretary, using a peer review process, shall 
approve a State plan submitted under this section if the State plan 
meets the requirements of this section.
    ``(e) Duration of the Plan.--Each State plan shall remain in effect 
for the duration of the State's participation under this title.
    ``(f) 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.
    ``(g) Public Review.--Each State educational agency will make 
publicly available the plan approved under subsection (d).

``SEC. 6204. SANCTIONS.

    ``(a) Third Fiscal Year.--If a State receiving grant funds under 
this title fails to meet performance goals established under section 
6203(c)(2) 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 this title.
    ``(b) Fourth Fiscal Year.--If the State fails to meet such 
performance goals by the end of the fourth fiscal year for which the 
State receives grant funds under this title, the Secretary shall reduce 
the total amount the State receives under this title by 20 percent.
    ``(c) Technical Assistance.--The Secretary shall provide technical 
assistance, at the request of a State subjected to sanctions under 
subsection (a) or (b).
    ``(d) Local Sanctions.--
            ``(1) In general.--Each State receiving assistance under 
        this title shall develop a system to hold local educational 
        agencies accountable for meeting the adequate yearly progress 
        requirements established under part A of title I and the 
        performance goals established under this title.
            ``(2) Sanctions.--A system developed under paragraph (1) 
        shall include a mechanism for sanctioning local educational 
        agencies for failure to meet such performance goals and 
        adequate yearly progress levels.

``SEC. 6205. STATE REPORTS.

    ``Each State educational agency or Chief Executive Officer of a 
State 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 the public can understand, a report on--
            ``(1) the use of such funds;
            ``(2) the impact of programs conducted with such funds and 
        an assessment of such programs' effectiveness; and
            ``(3) the progress of the State toward attaining the 
        performance goals established under section 6203(c)(2), and the 
        extent to which the programs have increased student 
        achievement.

``SEC. 6206. STANDARDS; ASSESSMENTS ENHANCEMENT.

    ``Each State educational agency receiving a grant under this title 
may use such grant funds, consistent with section 6201(a)(1)(C), to--
            ``(1) establish high quality, internationally competitive 
        content and student performance standards and strategies that 
        all students will be expected to meet;
            ``(2) provide for the establishment of high quality, 
        rigorous assessments that include multiple measures and 
        demonstrate comprehensive knowledge; or
            ``(3) develop and implement value-added assessments.''.

SEC. 302. PERFORMANCE OBJECTIVES.

    Title VII of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7401 et seq.) is amended by inserting after section 7105 the 
following:

``SEC. 7106. PERFORMANCE OBJECTIVES.

    ``(a) In General.--Each State educational agency or local 
educational agency receiving a grant under this part shall develop 
annual numerical performance objectives that are age-appropriate and 
developmentally-appropriate with respect to helping limited English 
proficient students become proficient in English and improve overall 
academic performance based upon State and local content and performance 
standards. The objectives shall include incremental percentage 
increases for each fiscal year a State educational agency or local 
educational agency receives a grant under this title, including 
increases from the preceding fiscal year in the number of limited 
English proficient students demonstrating an increase in performance on 
annual assessments concerning reading, writing, speaking, and listening 
comprehension.
    ``(b) Accountability.--Each State educational agency or local 
educational agency receiving a grant under this title shall be held 
accountable for meeting the annual numerical performance objectives 
under this title and the adequate yearly progress levels for limited 
English proficient students under clauses (ii) and (iv) of section 
1111(b)(2)(B). Any State educational agency or local educational agency 
that fails to meet the annual performance objectives shall be subject 
to sanctions described in section 14515.
    ``(c) Parental Notification.--
            ``(1) In general.--Each State educational agency or local 
        educational agency shall notify a parent of a student who is 
        participating in a language instruction educational program 
        under this title, in a manner and form understandable to the 
        parent, including, if necessary and to the extent feasible, in 
        the native language of the parent, 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-
                appropriate 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 
                available programs meet 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 State and local content 
                and performance standards, 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.--Each parent described in 
        paragraph (1) shall also be informed that the parent has the 
        option of declining the enrollment of a student in a language 
        instruction educational program, and shall be given an 
        opportunity to decline such enrollment if the parent so 
        chooses.
            ``(3) 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.''.

SEC. 303. REPORT CARDS.

    Title XIV of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 8801 et seq.) is amended by adding at the end the following:

                         ``PART I--REPORT CARDS

``SEC. 14901. 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 (e), to enable 
the State, and local educational agencies and schools in 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 (j) 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 of Education, 
                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 (j) 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 (e) 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) 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 in subsections (e) and (g)(2) for 
        fiscal year 2002; and
            ``(2) not more than 5 percent of the grant funds to carry 
        out activities described in subsections (e) and (g)(2) for 
fiscal year 2003 and each of the 3 succeeding fiscal years.
    ``(d) 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 (c) 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 
served by local educational agencies within the State.
    ``(e) Annual State Report Card.--
            ``(1) Report cards required.--Not later than the beginning 
        of the 2002-2003 school year, a State that receives assistance 
        under this Act shall prepare and disseminate an annual report 
        card for parents, the general public, teachers, and the 
        Secretary, with respect to all elementary schools and secondary 
        schools within the State.
            ``(2) Required information.--Each State described in 
        paragraph (1), at a minimum, shall include in the annual State 
        report card information regarding--
                    ``(A) student performance on statewide assessments 
                for the year for which the annual State report card is 
                prepared 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 for which 
                        assessments are required under title I for the 
                        year for which the report card is prepared, 
                        with proportions in each of the same 3 levels 
                        in each subject area at the same grade levels 
                        in the preceding school year;
                            ``(ii) a statement on the most recent 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 each grade, the 
                number of students completing advanced placement 
                courses, annual school dropout rates as calculated by 
                procedures conforming with the National Center for 
                Education Statistics Common Core of Data, and 4-year 
                graduation rates; and
                    ``(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.
            ``(3) Student data.--Student data in each report card shall 
        contain disaggregated results for the following categories:
                    ``(A) Racial and ethnic groups.
                    ``(B) Gender groups.
                    ``(C) Economically disadvantaged students, as 
                compared with students who are not economically 
                disadvantaged.
                    ``(D) Students with limited English proficiency, as 
                compared with students who are proficient in English.
                    ``(E) Migrant status groups.
                    ``(F) Students with disabilities, as compared with 
                students who are not disabled.
            ``(4) Optional information.--A State may include in the 
        State annual report card any other information the State 
        determines appropriate to reflect school quality and school 
        achievement, including by grade level information on the 
        following:
                    ``(A) Average class size.
                    ``(B) School safety, such as the incidence of 
                school violence and drug and alcohol abuse.
                    ``(C) The incidence of student suspensions and 
                expulsions.
                    ``(D) Student access to technology, including the 
                number of computers for educational purposes, the 
                number of computers per classroom, and the number of 
                computers connected to the Internet.
                    ``(E) Parental involvement, as determined by such 
                measures as the extent of parental participation in 
                schools, parental involvement activities, and extended 
                learning time programs, such as after-school and summer 
                programs.
    ``(f) Local Educational Agency and School Report Cards.--
            ``(1) In general.--The State shall ensure that each local 
        educational agency, elementary school, and secondary school in 
        the State, collects appropriate data and publishes an annual 
        report card consistent with this subsection.
            ``(2) Required information.--Each local educational agency, 
        elementary school, and secondary school described in paragraph 
        (1), at a minimum, shall include in its annual report card--
                    ``(A) the information described in paragraphs (2) 
                and (3) of subsection (e) for each local educational 
                agency and school;
                    ``(B) in the case of a local educational agency--
                            ``(i) information regarding the number and 
                        percentage of schools served by the local 
                        educational agency that are identified for 
                        school improvement, including schools 
                        identified under section 1116;
                            ``(ii) information on the most recent 3-
                        year trend in the number and percentage of 
                        elementary schools and secondary schools served 
                        by the local educational agency that are 
                        identified for school improvement; and
                            ``(iii) information on how students in the 
                        schools served by the local educational agency 
                        performed on the statewide assessment compared 
                        with students in the State as a whole;
                    ``(C) in the case of an elementary school or a 
                secondary school--
                            ``(i) information regarding whether the 
                        school has been identified for school 
                        improvement;
                            ``(ii) information on how the school's 
                        students performed on the statewide assessment 
                        compared with students in schools served by the 
                        same local educational agency and with all 
                        students in the State; and
                            ``(iii) information about the enrollment of 
                        students compared with the rated capacity of 
                        the schools; and
                    ``(D) other appropriate information, regardless of 
                whether the information is included in the annual State 
                report.
    ``(g) Dissemination and Accessibility of Report Cards.--
            ``(1) Report card format.--Annual report cards under this 
        part shall be--
                    ``(A) concise; and
                    ``(B) presented in a format and manner that parents 
                can understand, including, to the extent practicable, 
                in a language the parents can understand.
            ``(2) State report cards.--State annual report cards under 
        subsection (e) 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.
            ``(3) Local report cards.--Local educational agency report 
        cards under subsection (f) shall be disseminated to all 
        elementary schools and secondary schools served by the local 
        educational agency and to 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.
            ``(4) School report cards.--Elementary school and secondary 
        school report cards under subsection (f) shall be disseminated 
        to 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.
    ``(h) Coordination of State Plan Content.--A State shall include in 
its plan under part A of title I or part B of title II, an assurance 
that the State has in effect a policy that meets the requirements of 
this section.
    ``(i) Privacy.--Information collected under this section shall be 
collected and disseminated in a manner that protects the privacy of 
individuals.
    ``(j) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this part $5,000,000 for fiscal year 2002 and 
such sums as may be necessary for each of the 4 succeeding fiscal 
years.

     ``PART J--ADDITIONAL PERFORMANCE AND ACCOUNTABILITY PROVISIONS

``SEC. 14911. REWARDING HIGH PERFORMANCE.

    ``(a) State Rewards.--
            ``(1) In general.--From amounts appropriated under 
        subsection (d), the Secretary shall make awards to States 
        that--
                    ``(A) for 3 consecutive years have--
                            ``(i) exceeded the State performance goals 
                        and objectives established for any title under 
                        this Act;
                            ``(ii) exceeded the adequate yearly 
                        progress levels established under section 
                        1111(b)(2);
                            ``(iii) significantly narrowed the gaps 
                        between minority and nonminority students, and 
                        between economically disadvantaged students and 
                        students who are not economically 
                        disadvantaged;
                            ``(iv) raised all students to the 
                        proficient standard level prior to 10 years 
                        after the date of enactment of the School 
                        Improvement Accountability Act; or
                            ``(v) significantly increased the 
                        percentage of core classes being taught by 
                        fully qualified teachers, in schools receiving 
                        funds under part A of title I; or
                    ``(B) by not later than fiscal year 2005, ensure 
                that all teachers teaching in the State 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 funds that are not distributed under subsection 
                (b) to establish demonstration sites with respect to 
                high-performing schools (based upon achievement, or 
                performance levels 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 funds that are not used pursuant 
                to subparagraph (A) or (C) and are not distributed 
                under subsection (b) for the purpose of improving the 
                level of performance of all elementary school and 
                secondary school students in the State, based upon 
                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 
                funds 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 goals and 
                        objectives established for any title under this 
                        Act;
                            ``(ii) exceeded the adequate yearly 
                        progress levels established under section 
                        1111(b)(2);
                            ``(iii) significantly narrowed the gaps 
                        between minority and nonminority students, and 
                        between economically disadvantaged students and 
                        students who are not economically 
                        disadvantaged;
                            ``(iv) raised all students enrolled in 
                        schools served by the local educational agency 
                        to the proficient standard level prior to 10 
                        years from the date of enactment of the School 
                        Improvement Accountability Act; or
                            ``(v) significantly increased the 
                        percentage of core classes being taught by 
                        fully qualified teachers, in schools receiving 
                        funds under part A of title I;
                    ``(B) not later than December 31, 2005, ensure that 
                all teachers teaching in the elementary schools and 
                secondary schools served by the local educational 
                agency are fully qualified; or
                    ``(C) have attained consistently high achievement 
                in another area that the State determines appropriate 
                to reward.
            ``(2) School-based performance awards.--A local educational 
        agency shall use funds made available under paragraph (1) for 
        activities described in subsection (c) 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 funds 
        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)(iv);
                    ``(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 determines 
        appropriate to reward.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $200,000,000 for fiscal year 
2002, and such sums as may be necessary for each of the 4 succeeding 
fiscal years.
    ``(e) Definition.--The term `low-performing student' means a 
student who is below a basic State standard level.''.

SEC. 304. ADDITIONAL ACCOUNTABILITY PROVISIONS.

    Part E of title XIV of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 8891 et seq.) is amended by adding at the end the 
following:

``SEC. 14515. ADDITIONAL ACCOUNTABILITY PROVISIONS.

    ``(a) In General.--Notwithstanding any other provision of this Act, 
a recipient of funds provided for a fiscal year under part A of title 
I, part A or C of title III, part A of title IV, part A of title V, or 
title VII, shall include--
            (1) in the plans or applications required under such part 
        or title--
                    (A) the methods the recipient will use to measure 
                the annual impact of each program funded in whole or in 
                part with funds provided under such part or title and, 
                if applicable, the extent to which each such program 
                will increase student academic achievement;
                    (B) the annual, quantifiable, and measurable 
                performance goals and objectives for each such program, 
                and the extent to which, if applicable, the program's 
                performance goals and objectives align with State 
                content standards and State student performance 
                standards established under section 1111(b)(1)(A); and
                    (C) if the recipient is a local educational agency, 
                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 plan 
                or application submitted and that such consultation 
                will continue on a regular basis; and
            ``(2) in the reports required under such part or title, a 
        report for the preceding fiscal year regarding how the plan or 
        application submitted for such fiscal year under such part or 
        title was implemented, the recipient's progress toward 
        attaining the performance goals and objectives identified in 
        the plan or application for such year, and, if applicable, the 
        extent to which programs funded in whole or in part with funds 
        provided under such part or title increased student 
        achievement.
    ``(b) Penalties.--If a recipient of funds under a part or title 
described in subsection (a) fails to meet the performance goals and 
objectives of the part or title for 3 consecutive fiscal years, the 
Secretary shall--
            ``(1) withhold not less than 50 percent of the funds made 
        available under the relevant program for administrative 
        expenses for the succeeding fiscal year, and for each 
        consecutive fiscal year until the recipient meets such 
        performance goals and objectives; and
            ``(2) in the case of--
                    ``(A) a competitive grant (as determined by the 
                Secretary), consider the recipient ineligible for 
                grants under the part or title until the recipient 
                meets such performance goals and objectives; and
                    ``(B) a formula grant (as determined by the 
                Secretary), withhold not less than 20 percent of the 
                total amount of funds provided under title VI for the 
                succeeding fiscal year and each consecutive fiscal year 
                until the recipient meets such goals and objectives.
    ``(c) Other Penalties.--A State that has not met the requirements 
of subsection (a)(1)(B) with respect to a fiscal year--
            ``(1) shall not be eligible for designation as an Ed-Flex 
        Partnership State under the Education Flexibility Partnership 
        Act of 1999 until the State meets the requirements of 
        subsection (a)(1)(B); and
            ``(2) shall be subject to such other penalties as are 
        provided in this Act for failure to meet the requirements of 
        subsection (a)(1)(B).
    ``(d) Special Rule for Secretary Awards.--
            ``(1) In general.--Notwithstanding any other provision of 
        this Act, a recipient of funds provided under a direct award 
        made by the Secretary, or a contract or cooperative agreement 
        entered into with the Secretary, for a program shall include 
        the following information in any application or plan required 
        for such program:
                    ``(A) How funds provided under the program will be 
                used and how such use will increase student academic 
                achievement.
                    ``(B) The goals and objectives to be met, including 
                goals for dissemination and use of the information or 
                materials produced, where applicable.
                    ``(C) If the grant requires dissemination of 
                information or materials, how the recipient will track 
                and report annually to the Secretary--
                            ``(i) the successful dissemination of 
                        information or materials produced;
                            ``(ii) where information or materials 
                        produced are being used; and
                            ``(iii) the impact of such use and, if 
                        applicable, the extent to which such use 
                        increased student academic achievement or 
                        contributed to the stated goal of the program.
            ``(2) Requirement.--If no application or plan is required 
        under a program described in paragraph (1), the Secretary shall 
        require the recipient of funds to submit a plan containing the 
        information required under paragraph (1).
            ``(3) Failure to achieve goals and objectives.--
                    ``(A) In general.--The Secretary shall evaluate the 
                information submitted under this subsection to 
                determine whether the recipient has met the goals and 
                objectives described in paragraph (1)(B), where 
                applicable, assess the magnitude of dissemination 
                described in paragraph (1)(C), and, where applicable, 
                assess the effectiveness of the activity funded in 
                raising student academic achievement in places where 
                information or materials produced with such funds are 
                used.
                    ``(B) Ineligibility.--The Secretary shall consider 
                the recipient ineligible for grants, contracts, or 
                cooperative agreements under the program described in 
                paragraph (1) if--
                            ``(i) the goals and objectives described in 
                        paragraph (1)(B) have not been met;
                            ``(ii) where applicable, the dissemination 
                        has not been of a magnitude to ensure goals and 
                        objectives are being addressed; and
                            ``(iii) where applicable, the information 
                        or materials produced have not made a 
                        significant impact on raising student 
                        achievement in places where such information or 
                        materials are used.''.
                                 <all>