[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 303 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 303

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 13, 2001

 Mr. Lieberman (for himself, Mr. Bayh, Ms. Landrieu, Mrs. Lincoln, Mr. 
 Kohl, Mr. Graham, Mr. Breaux, Mr. Kerry, Mrs. Feinstein, Mr. Carper, 
  and Mr. Nelson of Florida) introduced the following bill; which was 
 read twice and referred to the Committee on Health, Education, Labor, 
                              and Pensions

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Public Education 
Reinvestment, Reinvention, and Responsibility Act'' or the ``Three R's 
Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. Declaration of priorities.
                      TITLE I--STUDENT PERFORMANCE

Sec. 101. Heading.
Sec. 102. Findings, policy, and purpose.
Sec. 103. Authorization of appropriations.
Sec. 104. Reservation for school improvement.
  Subtitle A--Improving Basic Programs Operated by Local Educational 
                                Agencies

Sec. 111. State plans.
Sec. 112. Local educational agency plans.
Sec. 113. Schoolwide programs.
Sec. 114. School choice.
Sec. 115. Assessment and local educational agency and school 
                            improvement.
Sec. 116. State assistance for school support and improvement.
Sec. 117. Parental involvement.
Sec. 118. Qualifications for teachers and paraprofessionals.
Sec. 119. Professional development.
Sec. 120. Fiscal requirements.
Sec. 121. Coordination requirements.
Sec. 122. Limitations on funds.
Sec. 123. Grants for the outlying areas and the Secretary of the 
                            Interior.
Sec. 124. Amounts for grants.
Sec. 125. Basic grants to local educational agencies.
Sec. 126. Concentration grants.
Sec. 127. Targeted grants.
Sec. 128. Education finance incentive program.
Sec. 129. Special allocation procedures.
            Subtitle B--Even Start Family Literacy Programs

Sec. 131. Program authorized.
Sec. 132. Applications.
Sec. 133. Research.
              Subtitle C--Education of Migratory Children

Sec. 141. Comprehensive needs assessment and service-delivery plan; 
                            authorized activities.
Subtitle D--Prevention and Intervention Programs for Children and Youth 
       who are Neglected, Delinquent, or at Risk of Dropping Out

Sec. 151. State plan and State agency applications.
Sec. 152. Use of funds.
    Subtitle E--Federal Evaluations, Demonstrations, and Transition 
                                Projects

Sec. 161. Evaluations.
Sec. 162. Demonstrations of innovative practices.
           Subtitle F--Rural Education Development Initiative

Sec. 171. Rural education development initiative.
                     Subtitle G--General Provisions

Sec. 181. State administration.
Sec. 182. Definitions.
TITLE II--TEACHER AND PRINCIPAL QUALITY, PROFESSIONAL DEVELOPMENT, AND 
                               CLASS SIZE

Sec. 201. Teacher and principal quality, professional development, and 
                            class size.
TITLE III--LANGUAGE MINORITY STUDENTS AND INDIAN, NATIVE HAWAIIAN, AND 
                        ALASKA NATIVE EDUCATION

Sec. 301. Language minority students.
Sec. 302. Emergency immigrant education program.
Sec. 303. Indian, Native Hawaiian, and Alaska Native education.
                     TITLE IV--PUBLIC SCHOOL CHOICE

Sec. 401. Public school choice.
Sec. 402. Development of public school choice programs; report cards.
                          TITLE V--IMPACT AID

Sec. 501. Payments relating to Federal acquisition of real property.
Sec. 502. Repeal of special rule relating to the computation of 
                            payments for eligible federally connected 
                            children.
Sec. 503. Extension of authorization of appropriations.
Sec. 504. Repeals, transfers, and redesignations.
      TITLE VI--HIGH PERFORMANCE AND QUALITY EDUCATION INITIATIVES

Sec. 601. High performance and quality education initiatives.
                       TITLE VII--ACCOUNTABILITY

Sec. 701. Accountability.
               TITLE VIII--GENERAL PROVISIONS AND REPEALS

Sec. 801. Repeals, transfers, and redesignations regarding title XIV.
Sec. 802. Other repeals.

SEC. 2. REFERENCES.

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

SEC. 3. DECLARATION OF PRIORITIES.

    Congress declares that the national educational priorities are to--
            (1) introduce real accountability by making public 
        elementary school and secondary school education funding 
        performance-based rather than a guaranteed source of revenue 
        for States and local educational agencies;
            (2) require State educational agencies and local 
        educational agencies to establish high student performance 
        objectives, and provide the State educational agencies and 
        local educational agencies with flexibility in using Federal 
        resources to ensure that the performance objectives are met;
            (3) concentrate Federal funding on a small number of 
        central education goals, including providing compensatory 
        education for disadvantaged children and youth, improving 
        teacher quality and providing professional development, 
        providing programs for limited English proficient students, 
        public school choice programs, and innovative educational 
        programs, and promoting student safety and the incorporation of 
        educational technology into education;
            (4) concentrate Federal education funding on impoverished 
        areas where elementary schools and secondary schools are most 
        likely to be in distress;
            (5) sanction State educational agencies and local 
        educational agencies that consistently fail to meet established 
        benchmarks; and
            (6) reward State educational agencies, local educational 
        agencies, and elementary schools and secondary schools that 
        demonstrate high performance.

                      TITLE I--STUDENT PERFORMANCE

SEC. 101. HEADING.

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

                   ``TITLE I--STUDENT PERFORMANCE''.

SEC. 102. FINDINGS, POLICY, AND PURPOSE.

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

``SEC. 1001. FINDINGS, POLICY AND PURPOSE.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) Despite more than 3 decades of Federal assistance, a 
        sizable achievement gap remains between economically 
        disadvantaged and affluent students.
            ``(2) The 1994 reauthorization of the Elementary and 
        Secondary Education Act of 1965 was an important step in 
        focusing the Nation's priorities on closing the achievement gap 
        between economically disadvantaged and affluent students in the 
        United States. The Federal Government must continue to build on 
        the improvements made in 1994 by holding States and local 
        educational agencies accountable for student achievement.
            ``(3) States can help close the achievement gap by 
        developing challenging curriculum content and student 
        performance standards so that all elementary school and 
        secondary school students perform at an advanced level. States 
        should implement rigorous and comprehensive student performance 
        assessments, such as the National Assessment of Educational 
        Progress, so as to measure fully the progress of the Nation's 
        students.
            ``(4) In order to ensure that no child is left behind in 
        the new economy, the Federal Government must better target 
        Federal resources on those children who are most at risk for 
        falling behind academically.
            ``(5) Funds made available under this title (referred to in 
        this section as `title I funds') have been targeted on high-
        poverty areas, but not to the degree the funds should be 
        targeted on those areas, as demonstrated by the following:
                    ``(A) Although 95 percent of schools with poverty 
                levels of 75 percent to 100 percent receive title I 
                funds, 20 percent of schools with poverty levels of 50 
                to 74 percent do not receive any title I funds.
                    ``(B) Only 64 percent of schools with poverty 
                levels of 35 percent to 49 percent receive title I 
                funds.
            ``(6) Title I funding should be significantly increased and 
        more effectively targeted to ensure that all economically 
        disadvantaged students have an opportunity to excel 
        academically.
            ``(7) The Federal Government should provide greater 
        decisionmaking authority and flexibility to schools and 
        teachers in exchange for requiring the schools and teachers to 
        assume greater responsibility for student performance. Federal, 
        State, and local efforts should be focused on raising the 
        academic achievement of all students. The Nation's children 
        deserve nothing less than a policy that holds accountable those 
        responsible for shaping the children's future and the Nation's 
        future.
    ``(b) Policy.--It is the policy of the United States to ensure that 
all students receive a high-quality education by holding States, local 
educational agencies, and elementary schools and secondary schools 
accountable for increased student academic performance results, and by 
facilitating improved classroom instruction.
    ``(c) Purposes.--The purposes of this title are as follows:
            ``(1) To eliminate the existing 2-tiered educational 
        system, which sets lower academic expectations for economically 
        disadvantaged students than for affluent students.
            ``(2) To require all States to have challenging content and 
        student performance standards and assessment measures in place.
            ``(3) To require all States to ensure adequate yearly 
        progress for all students by establishing annual, numerical 
        performance objectives.
            ``(4) To ensure that all students receiving services under 
        this title receive educational instruction from a fully 
        qualified teacher.
            ``(5) To support State educational agencies and local 
        educational agencies in identifying, assisting, and correcting 
        low-performing schools.
            ``(6) To increase Federal funding for programs carried out 
        under part A for economically disadvantaged students in return 
        for increased academic performance of all students.
            ``(7) To target Federal funding to local educational 
        agencies serving the highest percentages of economically 
        disadvantaged students.''.

SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

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

``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Local Educational Agency Grants.--For the purpose of carrying 
out part A, other than section 1120(e), there are authorized to be 
appropriated $13,000,000,000 for fiscal year 2002 and such sums as may 
be necessary for each of the 4 succeeding fiscal years.
    ``(b) Even Start.--For the purpose of carrying out part B, there 
are authorized to be appropriated such sums as may be necessary for 
fiscal year 2002 and each of the 4 succeeding fiscal years.
    ``(c) Education of Migratory Children.--For the purpose of carrying 
out part C, there are authorized to be appropriated such sums as may be 
necessary for fiscal year 2002 and each of the 4 succeeding fiscal 
years.
    ``(d) Prevention and Intervention Programs for Youth Who Are 
Neglected, Delinquent, or At Risk of Dropping Out.--For the purpose of 
carrying out part D, there are authorized to be appropriated such sums 
as may be necessary for fiscal year 2002 and each of the 4 succeeding 
fiscal years.
    ``(e) Capital Expenses.--For the purpose of carrying out section 
1120(e), there is authorized to be appropriated $5,000,000 for fiscal 
year 2002.
    ``(f) Federal Activities.--For the purpose of carrying out sections 
1501 and 1502, there are authorized to be appropriated such sums as may 
be necessary for fiscal year 2002 and each of the 4 succeeding fiscal 
years.''.

SEC. 104. RESERVATION FOR SCHOOL IMPROVEMENT.

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

``SEC. 1003. RESERVATION FOR SCHOOL IMPROVEMENT.

    ``(a) State Reservations.--Each State educational agency shall 
reserve 2.5 percent of the amount the State educational agency receives 
under part A for fiscal years 2002 and 2003, and 3.5 percent of that 
amount for fiscal years 2004 through 2006, to carry out subsection (b) 
and to carry out the State educational agency's responsibilities under 
sections 1116 and 1117, including carrying out the State educational 
agency's statewide system of technical assistance and support for local 
educational agencies.
    ``(b) Uses.--Of the amount reserved under subsection (a) for any 
fiscal year, the State educational agency shall make available at least 
80 percent of such amount directly to local educational agencies for 
school improvement and corrective action.''.

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

SEC. 111. STATE PLANS.

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

``SEC. 1111. STATE PLANS.

    ``(a) Plans Required.--
            ``(1) In general.--Any State educational agency desiring a 
        grant under this part shall submit to the Secretary a plan 
        that--
                    ``(A) is developed in consultation with local 
                educational agencies, teachers, pupil services 
                personnel, administrators (including administrators of 
                programs described in other parts of this title), local 
                school boards, other staff, parents, and other entities 
                in the community involved such as institutions of 
                higher education;
                    ``(B) satisfies the requirements of this section; 
                and
                    ``(C) coordinates activities with other programs 
                carried out under this Act, the Individuals with 
                Disabilities Education Act, the Carl D. Perkins 
                Vocational and Technical Education Act of 1998, and the 
                Head Start Act.
            ``(2) Consolidated plan.--A State plan submitted under 
        paragraph (1) may be submitted as part of a consolidated plan 
        under section 8302.
    ``(b) Standards, Assessments, and Accountability.--
            ``(1) Challenging standards.--
                    ``(A) In general.--Each State plan shall 
                demonstrate that the State has adopted challenging 
                content standards and challenging student performance 
                standards that will be used by the State, and the local 
                educational agencies, and elementary schools and 
                secondary schools, within the State to carry out this 
                part.
                    ``(B) Uniformity.--The standards required by 
                subparagraph (A) shall be the same as the standards 
                that the State applies to all elementary schools and 
                secondary schools within the State and all students 
                attending such schools.
                    ``(C) Subjects.--The State shall have such 
                standards for elementary school and secondary school 
                students served under this part in academic subjects 
                determined by the State, but including at least 
                mathematics, science, and English language arts. The 
                standards shall include the same specifications 
                concerning knowledge, skills, and levels of performance 
                for all students.
                    ``(D) Standards.--Standards adopted under this 
                paragraph shall include--
                            ``(i) challenging content standards in 
                        academic subjects that--
                                    ``(I) specify what students are 
                                expected to know and be able to do;
                                    ``(II) contain coherent and 
                                rigorous content; and
                                    ``(III) encourage the teaching of 
                                advanced skills; and
                            ``(ii) challenging student performance 
                        standards that--
                                    ``(I) are aligned with the State's 
                                content standards;
                                    ``(II) describe 2 levels of high 
                                performance, proficient and advanced 
                                levels of performance, that determine 
                                how well students are mastering the 
                                material in the State content 
                                standards; and
                                    ``(III) describe a third level of 
                                performance, a basic level of 
                                performance, to provide complete 
                                information about the progress of the 
                                lower performing students toward 
                                meeting the proficient and advanced 
                                levels of performance.
                    ``(E) Additional subjects.--For the academic 
                subjects for which students will receive services under 
                this part, but for which a State is not required under 
                subparagraphs (A), (B), and (C) to develop, and has not 
                otherwise developed, challenging content and student 
                performance standards, the State plan shall describe a 
                strategy for ensuring that economically disadvantaged 
                students acquire the same knowledge, are taught the 
                same skills, and are held to the same expectations as 
                are all students.
                    ``(F) Special rule.--In the case of a State that 
                allows local educational agencies to adopt more 
                rigorous standards than the standards set by the State, 
                local educational agencies shall be allowed to 
                implement such rigorous standards.
            ``(2) Adequate yearly progress.--
                    ``(A) In general.--Each State plan shall 
                demonstrate what constitutes adequate yearly progress 
                (based on assessments described in paragraph (4)) of--
                            ``(i) any school that receives assistance 
                        under this part toward enabling all students to 
                        meet the State's challenging student 
                        performance standards;
                            ``(ii) any local educational agency that 
                        receives assistance under this part toward 
                        enabling all students in schools served by the 
                        local educational agency and receiving 
                        assistance under this part to meet the State's 
                        challenging student performance standards; and
                            ``(iii) the State toward enabling all 
                        students in schools in the State and receiving 
                        assistance under this part to meet the State's 
                        challenging student performance standards.
                    ``(B) Definition.--The adequate yearly progress 
                shall be defined by the State in a manner that--
                            ``(i) applies the same high standards of 
                        academic performance to all students in the 
                        State;
                            ``(ii) takes into account the progress of 
                        all students in the State and served by each 
                        local educational agency and school served 
                        under section 1114 or 1115;
                            ``(iii) uses the State challenging content 
                        and challenging student performance standards 
                        and assessments described in paragraphs (1) and 
                        (4);
                            ``(iv) compares separately, for each State, 
                        local educational agency, and school, the 
                        performance and progress of students, 
                        disaggregated by each major ethnic and racial 
                        group, by gender, by English proficiency 
                        status, and by classification as economically 
                        disadvantaged students as compared to students 
                        who are not economically disadvantaged (except 
                        that such disaggregation shall not be required 
                        in a case in which the number of students in a 
                        category is insufficient to yield statistically 
                        reliable information or the results would 
                        reveal individually identifiable information 
                        about an individual student);
                            ``(v) compares the proportions of students 
                        at the basic, proficient, and advanced levels 
                        of performance in a grade in a school year with 
                        the proportions of students at each of the 3 
                        performance levels in the same grade in the 
                        previous school year;
                            ``(vi) endeavors to include other academic 
                        measures such as promotion, attendance, drop-
                        out rates, completion of college preparatory 
                        courses, college admission tests taken, and 
                        secondary school completion, except that 
                        failure to meet another academic measure, other 
                        than student performance on State assessments 
                        aligned with State standards, shall not provide 
                        the sole basis for designating a local 
                        educational agency or school for improvement;
                            ``(vii) includes annual numerical 
                        objectives for improving the performance of all 
                        groups described in clause (iv) and narrowing 
                        gaps in achievement between those groups in, at 
                        least, the areas of mathematics and English 
                        language arts; and
                            ``(viii) includes a timeline for ensuring 
                        that each group of students described in clause 
                        (iv) meets or exceeds the State's proficient 
                        level of performance on each State assessment 
                        described in paragraph (4) not later than 10 
                        years after the date of enactment of the Public 
                        Education Reinvestment, Reinvention, and 
                        Responsibility Act.
                    ``(C) Accountability.--Each State plan shall 
                demonstrate that the State has developed and is 
                implementing a statewide State accountability system 
                that has been or will be effective in ensuring that all 
                local educational agencies, elementary schools, and 
                secondary schools are making adequate yearly progress 
                as defined under section 1111(b)(2). Each State 
                accountability system shall--
                            ``(i) be based on the standards and 
                        assessments adopted under paragraphs (1) and 
                        (4) and take into account the performance of 
                        all students required by law to be included in 
                        such assessments;
                            ``(ii) be the same as the 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 the 
                        schools or all the local educational agencies;
                            ``(iii) provide for the identification of 
                        schools or local educational agencies receiving 
                        funds under this part that for 3 consecutive 
                        years have exceeded such schools' or agencies' 
                        adequate yearly progress goals so that 
                        information about the practices and strategies 
                        of such schools or agencies can be disseminated 
                        to other schools served by the local 
                        educational agency and other schools in the 
                        State and the schools and agencies that have 
                        exceeded the goals can be considered for 
                        rewards provided under title VII;
                            ``(iv) provide for the identification of 
                        schools and local educational agencies for 
                        improvement, as required by section 1116, and 
                        for the provision of technical assistance, 
                        professional development, and other capacity-
                        building as needed, including those measures 
                        specified in sections 1116(d)(9) and 1117, to 
                        ensure that schools and local educational 
                        agencies so identified have the resources, 
                        skills, and knowledge needed to carry out their 
                        obligations under sections 1114 and 1115 and to 
                        meet the requirements for adequate yearly 
                        progress described in this paragraph; and
                            ``(v) provide for the identification of 
                        schools and local educational agencies for 
                        corrective action as required by section 1116, 
                        and for the implementation of corrective action 
                        against schools and local educational agencies 
                        in cases in which such actions are required 
                        under such section.
                    ``(D) Annual improvement for states.--
                            ``(i) 90 percent requirement.--Each State 
                        plan shall specify that, for a State to make 
                        adequate yearly progress under subparagraph 
                        (A)(iii), not less than 90 percent of the local 
                        educational agencies within the State shall 
                        meet the State's criteria for adequate yearly 
                        progress.
                            ``(ii) Modification.--If the application of 
                        the 90 percent requirement described in clause 
                        (i) would require a fractional number of local 
                        educational agencies to meet the criteria, the 
                        Secretary shall issue an order modifying the 
                        requirement, to the minimum extent necessary, 
                        and shall require a substantial number of the 
                        agencies to meet the criteria.
                    ``(E) Annual improvement for local educational 
                agencies.--
                            ``(i) 90 percent requirement.--Each State 
                        plan shall specify that, for a local 
                        educational agency to make adequate yearly 
                        progress under subparagraph (A)(ii), not less 
                        than 90 percent of the schools served by the 
                        local educational agency shall meet the State's 
                        criteria for adequate yearly progress.
                            ``(ii) Modification.--If the application of 
                        the 90 percent requirement described in clause 
                        (i) would require a fractional number of 
                        schools to meet the criteria, the Secretary 
                        shall issue an order modifying the requirement, 
                        to the minimum extent necessary, and shall 
                        require a substantial number of the schools to 
                        meet the criteria.
                    ``(F) Annual improvement for schools.--Each State 
                plan shall specify that, for an elementary school or a 
                secondary school to make adequate yearly progress under 
                subparagraph (A)(i), not less than 90 percent of each 
                group of students described in subparagraph (B)(iv) who 
                are enrolled in such school shall take the assessments 
                described in paragraph (4) and in section 612(a)(17)(A) 
                of the Individuals with Disabilities Education Act.
                    ``(G) Public notice and comment.--
                            ``(i) In general.--Each State shall submit 
                        information in the State plan demonstrating 
                        that the State, in developing such plan--
                                    ``(I) diligently sought public 
                                comment from a range of institutions 
                                and individuals in the State with an 
                                interest in improved student 
                                performance; and
                                    ``(II) made and will continue to 
                                make a substantial effort to ensure 
                                that information regarding content 
                                standards, performance standards, 
                                assessments, and the State 
                                accountability system is widely known 
                                and understood by the public, parents, 
                                teachers, and school administrators 
                                throughout the State.
                            ``(ii) Effort.--The effort described in 
                        clause (i)(II), at a minimum, shall include 
                        annual publication of such information and 
                        explanatory text to the public through such 
                        means as the Internet, the media, and public 
                        agencies. Languages other than English shall be 
                        used to communicate the information and text to 
                        parents in appropriate cases.
            ``(3) State authority.--If a State educational agency 
        provides evidence that is satisfactory to the Secretary that 
        neither the State educational agency nor any other State 
        government official, agency, or entity has sufficient authority 
        under State law to adopt content and student performance 
        standards, and assessments aligned with such standards, that 
        will be applicable to all students enrolled in the State's 
        public schools, the State educational agency may meet the 
        requirements of this subsection by stating in the State plan 
        that the State is--
                    ``(A) adopting content and student performance 
                standards and assessments that meet the requirements of 
                this subsection, on a statewide basis, and limiting the 
                applicability of such standards and assessments to 
                students served under this part; or
                    ``(B) adopting and implementing policies that 
                ensure that each local educational agency within the 
                State that receives assistance under this part will 
                adopt content and student performance standards and 
                assessments--
                            ``(i) that are aligned with the standards 
                        described in subparagraph (A); and
                            ``(ii) that meet the criteria in this 
                        subsection and any regulations regarding such 
                        standards and assessments that the Secretary 
                        may publish and that are applicable to all 
                        students served by each such local educational 
                        agency.
            ``(4) Assessments.--Each State plan shall demonstrate that 
        the State has implemented a set of high quality, yearly student 
        assessments that includes, at a minimum, assessments in 
        mathematics, science, and English language arts, that will be 
        used, starting not later than the 2002-2003 school year as the 
        primary means of determining the yearly performance of each 
        local educational agency and school served by the State under 
        this title in enabling all students to meet the State's 
        challenging content and student performance standards. Such 
        assessments shall--
                    ``(A) be the same as the assessments used to 
                measure the performance of all students, if the State 
                has assessments that measure the performance of all 
                students;
                    ``(B) be aligned with the State's challenging 
                content and student performance standards, and provide 
                coherent information about the local educational 
                agency's contribution to the student attainment of such 
                standards;
                    ``(C) be used only for purposes for which such 
                assessments are valid and reliable, and be consistent 
                with relevant, nationally recognized professional and 
                technical standards for such assessments;
                    ``(D) measure the performance of students against 
                the challenging State content and student performance 
                standards, and be administered not less than once 
                during--
                            ``(i) grades 3 through 5;
                            ``(ii) grades 6 through 9; and
                            ``(iii) grades 10 through 12;
                    ``(E) include multiple, up-to-date measures of 
                student performance and the local educational agency's 
                contribution to student performance, including measures 
                that assess higher order thinking skills and 
                understanding;
                    ``(F) provide for--
                            ``(i) the participation in such assessments 
                        of all students;
                            ``(ii) the reasonable adaptations and 
                        accommodations for children with disabilities, 
                        as such term is defined in section 602(3) of 
                        the Individuals with Disabilities Education 
                        Act, that are necessary to measure the 
                        performance of such students relative to State 
                        content and student performance standards;
                            ``(iii) in the case of a student with 
                        limited English proficiency, the assessment of 
                        such student in the student's native language 
                        if such a native language assessment is more 
                        likely than an English language assessment to 
                        yield accurate and reliable information on what 
                        that student knows and is able to do; and
                            ``(iv) notwithstanding clause (iii), the 
                        assessment (using tests written in English) of 
                        English language arts of any student who has 
                        attended school in the United States (not 
                        including the Commonwealth of Puerto Rico) for 
                        3 or more consecutive school years, except that 
                        if the local educational agency determines, on 
                        a case-by-case individual basis, that 
                        assessments in another language and form would 
                        likely yield more accurate and reliable 
                        information on what such students know and can 
                        do, the local educational agency may assess 
                        such students in the appropriate language other 
                        than English for 1 additional consecutive year 
                        beyond the third consecutive year;
                    ``(G) include students who have attended schools 
                served by a local educational agency for a full 
                academic year but have not attended a single school for 
                a full academic year, except that the performance of 
                students who have attended more than 1 school served by 
                the local educational agency in any academic year shall 
                be used only in determining the progress of the local 
                educational agency;
                    ``(H) provide individual student reports to be 
                submitted to parents, including reports containing 
                assessment scores or other information on the 
                attainment of student performance standards;
                    ``(I) enable results to be disaggregated within 
                each State, local educational agency, and school by 
                each major racial and ethnic group, by gender, by 
                English proficiency status, and by classification as 
                economically disadvantaged students as compared to 
                students who are not economically disadvantaged; and
                    ``(J) to the extent practicable, use rigorous 
                criteria.
            ``(5) First grade literacy assessment.--In addition to 
        implementing the assessments described in paragraph (4), each 
        State receiving funds under this part shall describe in the 
        State plan what reasonable steps the State is taking to assist 
        and encourage local educational agencies--
                    ``(A) to measure literacy skills of first graders 
                in schools receiving funds under this part by providing 
                assessments of first graders that are--
                            ``(i) developmentally appropriate;
                            ``(ii) aligned with State content and 
                        student performance standards; and
                            ``(iii) tied to scientifically based 
                        research; and
                    ``(B) to assist and encourage local educational 
                agencies receiving funds under this part in identifying 
                and taking developmentally appropriate and effective 
                interventions in any school served under this part in 
                which a substantial number of first graders have not 
                demonstrated grade-level literacy proficiency by the 
                end of the school year.
            ``(6) Language assessments.--Each State plan shall identify 
        the languages other than English and Spanish that are present 
        in the participating student populations in the State, and 
        indicate the languages for which yearly student assessments are 
        not available and are needed. The State may request assistance 
        from the Secretary in identifying assessment measures in the 
        needed languages. Upon request, the Secretary shall assist with 
        the identification of appropriate assessment measures in the 
        needed languages, but shall not mandate a specific assessment 
        or mode of instruction.
            ``(7) Development and implementation.--Each State plan 
        shall provide that the State shall develop and implement, at a 
        minimum, the assessments described in paragraph (4) in 
        mathematics and English language arts by the 2002-2003 school 
        year.
            ``(8) Requirement.--Each State plan shall describe--
                    ``(A) how the State educational agency will assist 
                each local educational agency and school affected by 
                the State plan to develop the capacity to comply with 
                each of the requirements of  sections 1114(b), 1115(c), 
and 1116 that are applicable to such agency or school;
                    ``(B) how the State educational agency will--
                            ``(i) hold each local educational agency 
                        affected by the State plan accountable for 
                        improved student performance, including 
                        describing a procedure for--
                                    ``(I) identifying local educational 
                                agencies and schools for improvement; 
                                and
                                    ``(II) assisting local educational 
                                agencies and schools identified as 
                                described in subclause (I) to address 
                                performance problems, including 
                                providing thorough descriptions of--
                                            ``(aa) the amounts and 
                                        types of professional 
                                        development to be provided to 
                                        instructional staff; and
                                            ``(bb) the amount of any 
                                        financial assistance to be 
                                        provided by the State under 
                                        section 1003, and the amount of 
                                        any funds to be provided 
                                        through other sources and the 
                                        activities to be provided with 
                                        those funds; and
                            ``(ii) implement corrective action if the 
                        assistance is not effective;
                    ``(C) how the State educational agency is providing 
                additional academic instruction, such as before- and 
                after-school programs and summer academic programs, to 
                low-performing students;
                    ``(D) such other factors as the State considers to 
                be appropriate to provide students with an opportunity 
                to attain the knowledge and skills described in the 
                State's challenging content standards;
                    ``(E) the specific steps that the State educational 
                agency will take or the specific strategies that the 
                State educational agency will use to ensure that--
                            ``(i) all teachers in the State, in 
                        schoolwide programs and targeted assistance 
                        programs, are fully qualified not later than 
                        December 31, 2006; and
                            ``(ii) economically disadvantaged students 
                        and minority students are not taught at higher 
                        rates than other students by inexperienced, 
                        uncertified or unlicensed, or out-of-field 
                        teachers; and
                    ``(F) the measures that the State educational 
                agency will use to evaluate and publicly report the 
                State's progress in improving the quality of 
                instruction in the schools served by the State 
                educational agency and local educational agencies 
                receiving funding under this Act.
    ``(c) Other Provisions To Support Teaching and Learning.--Each 
State plan shall contain assurances that--
            ``(1) the State educational agency will work with other 
        agencies, including educational service agencies, or local 
        consortia and institutions to provide technical assistance to 
        local educational agencies, elementary schools, and secondary 
        schools to carry out the State educational agency's 
        responsibilities under this part, including providing technical 
        assistance concerning providing professional development under 
        section 1119A and technical assistance under section 1117;
            ``(2)(A) where educational service agencies exist, the 
        State educational agency will consider providing professional 
        development and technical assistance through such agencies; and
            ``(B) where educational service agencies do not exist, the 
        State educational agency will consider providing professional 
        development and technical assistance through other cooperative 
        arrangements, such as through a consortium of local educational 
        agencies;
            ``(3) the State educational agency will use the 
        disaggregated results of the student assessments required under 
        subsection (b)(4), and other measures or indicators available 
        to the State, to review annually the progress of each local 
        educational agency and school served under this part in the 
        State to determine whether each such agency and school is 
        making the annual progress necessary to ensure that all 
        students will meet the State's proficient level of performance 
        on the State assessments described in subsection (b)(4) within 
        10 years after the date of enactment of the Public Education 
        Reinvestment, Reinvention, and Responsibility Act;
            ``(4) the State educational agency will provide the least 
        restrictive and burdensome regulations for local educational 
        agencies and individual elementary schools and secondary 
        schools participating in a program assisted under this part;
            ``(5) the State educational agency will regularly inform 
        the Secretary and the public in the State of any Federal laws 
        that hinder the ability of States to hold local educational 
        agencies and schools accountable for student academic 
        performance, and how the laws hinder that ability;
            ``(6) the State educational agency will encourage 
        elementary schools and secondary schools to consolidate funds 
        from other Federal, State, and local sources for schoolwide 
        reform in schoolwide programs under section 1114;
            ``(7) the State educational agency will modify or eliminate 
        State fiscal and accounting barriers so that elementary schools 
        and secondary schools can easily consolidate funds from other 
        Federal, State, and local sources for schoolwide reform in 
        schoolwide programs under section 1114;
            ``(8) the State educational agency has involved the 
        committee of practitioners established under section 1703(b) in 
        developing the State plan and will involve the committee in 
        monitoring the implementation of the State plan; and
            ``(9) the State educational agency will inform local 
        educational agencies of the local educational agencies' 
        authority to obtain waivers under title VIII and, if the State 
        is an Ed-Flex Partnership State, waivers under the Education 
        Flexibility Partnership Act of 1999.
    ``(d) Review.--
            ``(1) Peer review and secretarial approval.--The Secretary 
        shall--
                    ``(A) establish a peer review process to assist in 
                the review of State plans;
                    ``(B) only approve a State plan meeting each of the 
                requirements of this section;
                    ``(C) if the Secretary determines that the State 
                plan does not meet each of the requirements of 
                subsections (a), (b), and (c), immediately notify the 
                State of such determination and the reasons for such 
                determination;
                    ``(D) not disapprove a State plan before--
                            ``(i) notifying the State educational 
                        agency in writing of the specific deficiencies 
                        of the State plan;
                            ``(ii) offering the State an opportunity to 
                        revise the State plan;
                            ``(iii) providing technical assistance in 
                        order to assist the State to meet the 
                        requirements of subsections (a), (b), and (c); 
                        and
                            ``(iv) providing a hearing;
                    ``(E) have the authority to disapprove a State plan 
                for not meeting the requirements of this section, but 
                shall not have the authority to require a State, as a 
                condition of approval of the State plan, to include in, 
                or delete from, such plan 1 or more specific elements 
                of the challenging State content standards or to use 
                specific assessment instruments or items; and
                    ``(F) if the Secretary disapproves a State plan 
                that is--
                            ``(i) the first State plan submitted by a 
                        State after the date of enactment of the Public 
                        Education Reinvestment, Reinvention, and 
                        Responsibility Act, require the State to submit 
                        a revised State plan that meets the 
                        requirements of this section to the Secretary 
                        for approval not later than 1 year after the 
                        date of disapproval; and
                            ``(ii) the second or a subsequent State 
                        plan submitted by a State after the date of 
                        enactment, require the State to submit such a 
                        revised State plan to the Secretary for 
                        approval not later than 30 days after the date 
                        of disapproval.
            ``(2) Review.--The Secretary shall review information from 
        the State on the adequate yearly progress of schools and local 
        educational agencies within the State required under subsection 
        (b)(2) for the purpose of determining State and local 
        compliance with section 1116.
    ``(e) Duration of the Plan.--
            ``(1) In general.--Each State plan shall--
                    ``(A) remain in effect for the duration of the 
                State's participation under this part; and
                    ``(B) be periodically reviewed and revised by the 
                State, as necessary, to reflect changes in the State's 
                strategies and programs under this part.
            ``(2) Additional information.--If the State makes 
        significant changes in the State plan, such as the adoption of 
        new challenging State content standards and State student 
        performance standards, new assessments, or a new definition of 
        adequate yearly progress, the State shall submit information on 
        such significant changes to the Secretary.
    ``(f) Limitation on Conditions.--Nothing in this part shall be 
construed to authorize an officer or employee of the Federal Government 
to mandate, direct, or control a State's, local educational agency's, 
or elementary school's or secondary school's specific challenging 
content or student performance standards, assessments, curricula, or 
program of instruction, as a condition of eligibility to receive funds 
under this part.
    ``(g) Penalties.--
            ``(1) In general.--If a State fails to meet the statutory 
        deadlines for demonstrating that the State has in place 
        challenging content standards and student performance standards 
        (including deadlines for standards required under section 
        1111(b)(6), as in effect on the day before the date of 
        enactment of the Public Education Reinvestment, Reinvention, 
        and Responsibility Act), assessments, and a statewide State 
        accountability system for holding schools and local educational 
        agencies accountable for making adequate yearly progress 
        (including adequate yearly progress with each group of students 
        specified in subsection (b)(2)(B)(iv)), for the fiscal year 
        after the failure, the State shall be ineligible to receive a 
        greater amount of administrative funds under section 1703(c) 
        than the amount the State received for the previous year for 
        the purposes described in section 1703(c).
            ``(2) Additional funds.--Based on the extent to which the 
        standards, assessments, and system described in paragraph (1) 
        are not in place, the Secretary shall withhold from the State, 
        in addition to any amount withheld under paragraph (1), 
        additional administrative funds under section 1703(c). The 
        Secretary shall withhold such additional funds as the Secretary 
        determines to be appropriate, except that if the State fails to 
        meet the deadlines for a second or subsequent fiscal year, the 
        Secretary shall withhold, for the fiscal year after the 
        failure, not less than \1/5\ of the amount of administrative 
        funds the State received under section 1703(c) during the first 
        year in which the State failed to meet the deadlines.
            ``(3) Waiver.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), notwithstanding part D of title VIII, 
                the Education Flexibility Partnership Act of 1999, or 
                any other provision of law, the Secretary may not grant 
                a waiver of the requirements of this section, except 
                that a State  may request a 1-time, 1-year waiver to 
meet the requirements of this section.
                    ``(B) Exception.--A waiver granted pursuant to 
                subparagraph (A) shall not apply to the requirements 
                described under subsection (h).
    ``(h) Special Rule on Science Standards and Assessments.--
Notwithstanding subsection (b) and part D of title IV, no State shall 
be required to meet the requirements under this title relating to 
science standards or assessments until the beginning of the 2006-2007 
school year.''.

SEC. 112. LOCAL EDUCATIONAL AGENCY PLANS.

    (a) Subgrants.--Section 1112(a)(1) (20 U.S.C. 6312(a)(1)) is 
amended by striking ``the Goals 2000: Educate America Act,'' and all 
that follows and inserting ``the Individuals with Disabilities 
Education Act, the Carl D. Perkins Vocational and Technical Education 
Act of 1998, the Head Start Act, and other Acts, as appropriate.''.
    (b) Plan Provisions.--Section 1112(b) (20 U.S.C. 6312(b)) is 
amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``Each'' and inserting ``In order to help low-performing 
        students meet high standards, each'';
            (2) in paragraph (1)--
                    (A) by striking ``part'' each place it appears and 
                inserting ``title''; and
                    (B) in subparagraph (B), by striking ``children'' 
                and inserting ``low-performing students'';
            (3) in paragraph (4)--
                    (A) in subparagraph (A)--
                            (i) by striking ``elementary school 
                        programs,'' and inserting ``programs, and''; 
                        and
                            (ii) by striking ``, and school-to-work 
                        transition programs''; and
                    (B) in subparagraph (B), by striking ``under part 
                C'' the first place it appears and all that follows 
                through ``dropping out'' and inserting ``under part C, 
                neglected or delinquent youth'';
            (4) in paragraph (7), by striking ``eligible'';
            (5) in paragraph (9), by striking the period and inserting 
        a semicolon; and
            (6) by adding at the end the following new paragraphs:
            ``(10) a description of the actions the local educational 
        agency will take to assist the low-performing schools served by 
        the local educational agency, including schools identified 
        under section 1116 for school improvement;
            ``(11) a description of how the local educational agency 
        will promote the use of alternative instructional methods, and 
        extended learning time options, such as an extended school 
        year, before- and after-school programs, and summer programs; 
        and
            ``(12) a description of--
                    ``(A) the steps the local educational agency will 
                take to ensure that all teachers in schoolwide programs 
                and targeted assistance programs assisted under this 
                part are fully qualified not later than December 31, 
                2006;
                    ``(B) the strategies the local educational agency 
                will use to ensure that economically disadvantaged 
                students and minority students are not taught at higher 
                rates than other students by inexperienced, uncertified 
                or unlicensed, or out-of-field teachers; and
                    ``(C) the measures the agency will use to evaluate 
                and publicly report progress in improving the quality 
                of instruction in schools served by the local 
                educational agency and receiving funding under this 
                Act.''.
    (c) Assurances.--Section 1112(c) (20 U.S.C. 6312(c)) is amended to 
read as follows:
    ``(c) Assurances.--
            ``(1) In general.--Each local educational agency plan shall 
        provide assurances that the local educational agency will--
                    ``(A) reserve not less than 10 percent of the funds 
                the agency receives under this part for high quality 
                professional development, as described in section 
                1119A, for professional instructional staff;
                    ``(B) provide eligible schools and parents with 
                information regarding schoolwide program authority and 
                the ability of such schools to consolidate funds from 
                Federal, State, and local sources;
                    ``(C) provide technical assistance and support to 
                schools participating in schoolwide programs;
                    ``(D) work in consultation with schools as the 
                schools develop school plans pursuant to section 
                1114(b)(2), and assist schools in implementing such 
                plans or undertaking activities pursuant to section 
                1115(c), so that each school can make adequate yearly 
                progress toward meeting the challenging State student 
                performance standards;
                    ``(E) use the disaggregated results of the student 
                assessments required under section 1111(b)(4), and 
                other measures or indicators available to the agency, 
                to review annually the progress of each school served 
                by the agency and receiving funds under this title to 
                determine whether or not all of the schools are making 
                the annual progress necessary to ensure that all 
                students will meet the State's proficient level of 
                performance on the State assessments described in 
                section 1111(b)(4) within 10 years after the date of 
                enactment of the Public Education Reinvestment, 
                Reinvention, and Responsibility Act;
                    ``(F) set, and hold schools served by the local 
                educational agency accountable for meeting, annual 
                numerical goals for improving the performance of all 
                groups of students based on the performance standards 
                set by the State under section 1111(b)(1)(D)(ii);
                    ``(G) fulfill the local educational agency's school 
                improvement responsibilities under section 1116, 
                including taking corrective actions under section 
                1116(c)(10);
                    ``(H) provide the State educational agency with--
                            ``(i) an annual, up-to-date, and accurate 
                        list of all schools served by the local 
                        educational agency that are identified for 
                        school improvement and corrective action;
                            ``(ii) the reasons why each school 
                        described in clause (i) was identified for 
                        school improvement or corrective action; and
                            ``(iii) specific plans for improving 
                        student performance in each of the schools 
                        described in clause (i), including specific 
                        numerical performance goals for each school, 
                        for the 2 school years after the school is 
                        identified for school improvement, for each 
                        group of students specified in section 
                        1111(b)(2)(B)(iv) enrolled in the school;
                    ``(I) provide services to eligible students 
                attending private elementary schools and secondary 
                schools in accordance with section 1120, and provide 
                timely and meaningful consultation  with private school 
officials regarding such services;
                    ``(J) take into account the experience gained from 
                model programs for the educationally disadvantaged and 
                the findings of relevant scientifically based research 
                when developing technical assistance plans for, and 
                delivering technical assistance to, schools served by 
                the local educational agency that are receiving funds 
                under this part and are in school improvement or 
                corrective action status;
                    ``(K) in the case of a local educational agency 
                that chooses to use funds under this part to provide 
                early childhood development services to economically 
                disadvantaged children below the age of compulsory 
                school attendance, ensure that such services meet the 
                performance standards established under subparagraphs 
                (A) and (B) of section 641A(a)(1) of the Head Start 
                Act;
                    ``(L) comply with the requirements of section 1119 
                regarding the qualifications of teachers and 
                paraprofessionals;
                    ``(M) inform eligible schools served by the local 
                educational agency of the agency's authority to obtain 
                waivers on such schools' behalf under title VIII and, 
                if the State is an Ed-Flex Partnership State, under the 
                Education Flexibility Partnership Act of 1999; and
                    ``(N) coordinate activities and collaborate, to the 
                extent feasible and necessary as determined by the 
                local educational agency, with other agencies providing 
                services to children, youth, and their families.
            ``(2) Model programs; scientifically based research.--For 
        purposes of enabling local educational agencies to implement 
        paragraph (1)(J)--
                    ``(A) the Secretary shall consult with the 
                Secretary of Health and Human Services on the 
                implementation of such paragraph, and shall establish 
                procedures (taking into consideration State and local 
                laws and local teacher contracts) to assist local 
                educational agencies to comply with such paragraph;
                    ``(B) the Secretary shall disseminate to local 
                educational agencies the performance standards issued 
                under subparagraphs (A) and (B) of section 641A(a)(1) 
                of the Head Start Act, on the publication of such 
                standards; and
                    ``(C) local educational agencies affected by such 
                paragraph (1)(J) shall plan for the implementation of 
                such paragraph (taking into consideration State and 
                local laws and local teacher contracts), including 
                pursuing the availability of other Federal, State, and 
                local funding to assist in compliance with such 
                paragraph.
            ``(3) Inapplicability.--The provisions of this subsection 
        shall not apply to preschool programs using an Even Start model 
        or to Even Start programs.''.
    (d) Plan Development and Duration.--Section 1112(d) (20 U.S.C. 
6312(d)) is amended to read as follows:
    ``(d) Plan Development and Duration.--
            ``(1) Consultation.--Each local educational agency plan 
        shall be developed in consultation with teachers, principals, 
        local school boards, administrators (including administrators 
        of programs described in other parts of this title), other 
        appropriate school personnel, and parents of students in 
        elementary schools and secondary schools served under this 
        part.
            ``(2) Duration.--Each plan described in paragraph (1) shall 
        remain in effect for the duration of the local educational 
        agency's participation under this part.
            ``(3) Review.--Each local educational agency shall 
        periodically review and, as necessary, revise the agency's 
        plan.''.
    (e) State Approval.--Section 1112(e) (20 U.S.C. 6312(e)) is amended 
to read as follows:
    ``(e) Peer Review and State Approval.--
            ``(1) In general.--Each local educational agency plan shall 
        be filed according to a schedule established by the State 
        educational agency.
            ``(2) Approval.--The State educational agency shall 
        establish a peer review process to assist in the review of 
        local educational agency plans. The State educational agency 
        shall approve a local educational agency plan only if the State 
        educational agency determines that the local educational agency 
        plan--
                    ``(A) will enable elementary schools and secondary 
                schools served by the local educational agency and 
                under this part to help all groups of students 
                specified in section 1111(b)(2)(B)(iv) to meet the 
                State's proficient level of performance on the State 
                assessments described in section 1111(b)(4) within 10 
                years after the date of enactment of the Public 
                Education Reinvestment, Reinvention, and Responsibility 
                Act; and
                    ``(B) meets each of the requirements of this 
                section.
            ``(3) State review.--Each State educational agency shall at 
        least annually review each local educational agency plan 
        approved by the State educational agency under this subsection, 
        including comparing the objectives of the plan against the 
        results of the disaggregated assessments required under section 
        1111(b)(4). The State educational agency shall conduct the 
        review to ensure that the progress of all students in schools 
        served by a local educational agency in the State under this 
        part is adequate to ensure that all students in the State will 
        meet the State's proficient level of performance on the State 
        assessments described in section 1111(b)(4) within 10 years 
        after the date of enactment of the Public Education 
        Reinvestment, Reinvention, and Responsibility Act.
            ``(4) Public review.--Each State educational agency will 
        make publicly available each such local educational agency 
        plan.''.
    (f) Parental Notification for English Language Instruction.--
Section 1112 (20 U.S.C. 6312) is amended by adding at the end the 
following:
    ``(g) Parental Notification for English Language Instruction.--
            ``(1) Notification.--If a local educational agency uses 
        funds under this part to provide English language instruction 
        to limited English proficient students, the local educational 
        agency shall notify the parents of a student participating in 
        an English language instruction educational program under this 
        part of--
                    ``(A) the reasons for the identification of the 
                student as being in need of English language 
                instruction;
                    ``(B) the student's level of English proficiency, 
                how such level was assessed, and the status of the 
                student's academic performance;
                    ``(C) how the English language instruction 
                educational program will specifically help the student 
                learn English and meet age-appropriate standards for 
                grade promotion and graduation;
                    ``(D) the specific exit requirements of the English 
                language instruction educational program;
                    ``(E) the expected rate of graduation from the 
                English language instruction educational program into 
                mainstream classes; and
                    ``(F) the expected rate of graduation from 
                secondary school of participants in the English 
                language instruction educational program, if funds 
                under this part are used for students in secondary 
                schools.
            ``(2) Parental rights.--
                    ``(A) In general.--The parents of a student 
                participating in an English language instruction 
                educational program under this part shall--
                            ``(i) have the option of selecting among 
                        methods of instruction, if more than 1 method 
                        is offered for the program; and
                            ``(ii) have the right to have their child 
                        immediately removed from the program on their 
                        request.
                    ``(B) Receipt of information.--The parents of a 
                student identified for participation in an English 
                language instruction educational program under this 
                part shall receive, in a manner and form understandable 
                to the parents, the information required by paragraph 
                (1) and this paragraph. At a minimum, the parents shall 
                receive--
                            ``(i) timely information about English 
                        language instruction educational programs for 
                        limited English proficient students assisted 
                        under this part; and
                            ``(ii) if the parents of a participating 
                        student so desire, notice of opportunities for 
                        regular meetings of parents of limited English 
                        proficient students participating in English 
                        language instruction educational programs under 
                        this part for the purpose of formulating and 
                        responding to recommendations from such 
                        parents.
            ``(3) Basis for admission or exclusion.--No student shall 
        be admitted to or excluded from any federally assisted 
        education program solely on the basis of a surname or language 
        minority status.''.

SEC. 113. SCHOOLWIDE PROGRAMS.

    (a) Use of Funds for Schoolwide Programs.--Section 1114(a) (20 
U.S.C. 6314(a)) is amended--
            (1) in paragraph (1), by striking ``school described in 
        subparagraph (A)'' and all that follows through ``such 
        families.'' the second place it appears and inserting ``school 
        that serves an eligible school attendance area if--
                    ``(A) not less than 40 percent of the children in 
                the school attendance area are from economically 
                disadvantaged families; or
                    ``(B) not less than 40 percent of the children 
                enrolled in the school are from such families.''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``subsections 
                (c)(1) and (e) of''; and
                    (B) in subparagraph (B), by striking ``subsections 
                (c)(1) and (e) of''.
    (b) Components of a Schoolwide Program.--Section 1114(b) (20 U.S.C. 
6314(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``section 
                1111(b)(1)'' and inserting ``section 1111(b)'';
                    (B) in subparagraph (B)--
                            (i) in clause (i), by striking ``section 
                        1111(b)(1)(D)'' and inserting ``1111(b)'';
                            (ii) in clause (iii)(II), by inserting 
                        ``and'' after the semicolon;
                            (iii) in clause (iv)(II), by striking ``; 
                        and'' and inserting a period; and
                            (iv) by striking clause (vii); and
                    (C) in subparagraph (G), by striking ``section 
                1112(b)(1)'' and inserting ``section 1112''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking ``Improving America's 
                        Schools Act of 1994'' and inserting ``Public 
                        Education Reinvestment, Reinvention, and 
                        Responsibility Act'';
                            (ii) by striking ``subsections (c)(1) and 
                        (e) of''; and
                            (iii) in clause (iv), by striking ``section 
                        1111(b)(3)'' and inserting ``section 
                        1111(b)(4)'';
                    (B) in subparagraph (B), by striking ``paragraphs 
                (1) and (3) of section 1111(b)'' and inserting 
                ``paragraphs (1) and (4) of section 1111(b)''; and
                    (C) in subparagraph (C)(i)--
                            (i) in subclause (I), by striking 
                        ``subsections (c) and (e) of''; and
                            (ii) in subclause (II), by striking 
                        ``Improving America's Schools Act of 1994'' and 
                        inserting ``Public Education Reinvestment, 
                        Reinvention, and Responsibility Act''.

SEC. 114. SCHOOL CHOICE.

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

``SEC. 1115A. SCHOOL CHOICE.

    ``(a) Choice Programs.--A local educational agency may use funds 
under this part, in combination with State, local, and private funds, 
to develop and implement public school choice programs, for students 
eligible for assistance under this part, that permit parents to select 
the public school that their child will attend and are consistent with 
State and local law, policy, and practice related to public school 
choice and local pupil transfer.
    ``(b) Choice Plan.--A local educational agency that chooses to 
implement a public school choice program under this section shall first 
develop a plan that--
            ``(1) contains an assurance that all eligible students, 
        across grade levels, who are served under this part will have 
        equal access to the program;
            ``(2) contains an assurance that the program does not 
        include elementary schools or secondary schools that follow a 
        racially discriminatory policy in providing services to 
        students;
            ``(3) describes how elementary schools or secondary schools 
        will use resources under this part, and from other sources, to 
        implement the plan;
            ``(4) contains an assurance that the plan has been 
        developed with the involvement of parents and others in the 
        community to be served, and individuals who will carry out the 
        plan, including administrators, teachers, principals, and other 
        staff;
            ``(5) contains an assurance that parents of eligible 
        students served by the local educational agency will be given 
        prompt notice of the existence of the public school choice 
        program, and the program's availability to such parents, and a 
        clear explanation of how the program will operate;
            ``(6) contains an assurance that the public school choice 
        program--
                    ``(A) will include charter schools (as defined in 
                section 4210) and any other public elementary school or 
                secondary school served by the local educational 
                agency; and
                    ``(B) will not include as a school receiving 
                transfers under the program an elementary school or a 
                secondary school that the local educational agency 
                determines--
                            ``(i) is in school improvement or 
                        corrective action status;
                            ``(ii) has been in school improvement or 
                        corrective action status during the 2 academic 
                        years before the determination; or
                            ``(iii) is at risk of being identified for 
                        school improvement or corrective action during 
                        the academic year after the determination;
            ``(7) contains an assurance that transportation services or 
        the costs of transportation to and from a public school to 
        which a student transfers under the public school choice 
        program--
                    ``(A) may be provided by the local educational 
                agency with funds under this part and funds from other 
                sources; and
                    ``(B) shall not be provided using more than 10 
                percent of the funds made available under this part to 
                the local educational agency; and
            ``(8) contains an assurance that such local educational 
        agency will comply with the other requirements of this part.''.

SEC. 115. ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND SCHOOL 
              IMPROVEMENT.

    (a) Local Review.--Section 1116(a) (20 U.S.C. 6317(a)) is amended--
            (1) in paragraph (2), by striking ``1111(b)(2)(A)(i)'' and 
        inserting ``1111(b)(2)'';
            (2) in paragraph (3)--
                    (A) by striking ``individual school performance 
                profiles'' and inserting ``school report cards'';
                    (B) by striking ``1111(b)(3)(I)'' and inserting 
                ``1111(b)(4)(I)''; and
                    (C) by striking ``and'' after the semicolon;
            (3) in paragraph (4), by striking the period and inserting 
        ``; and''; and
            (4) by adding at the end the following:
            ``(5) review the effectiveness of the actions and 
        activities the schools are carrying out under this part with 
        respect to parental involvement.''.
    (b) School Improvement.--Section 1116(c) (20 U.S.C. 6317(c)) is 
amended to read as follows:
    ``(c) School Improvement.--
            ``(1) In general.--A local educational agency shall 
        identify for school improvement any elementary school or 
        secondary school served under this part that--
                    ``(A) for 2 consecutive years failed to make 
                adequate yearly progress as defined in the State's plan 
                under section 1111(b)(2); or
                    ``(B) was in school improvement status under this 
                section on the day before the date of enactment of the 
                Public Education Reinvestment, Reinvention, and 
                Responsibility Act.
            ``(2) Transition.--The 2-year period described in paragraph 
        (1)(A) shall include any continuous period of time immediately 
        before the date of enactment of the Public Education 
        Reinvestment, Reinvention, and Responsibility Act during which 
        an elementary school or a secondary school did not make 
        adequate yearly progress as defined in the State's plan, as 
        such plan was in effect on the day before the date of enactment 
        of the Public Education Reinvestment, Reinvention, and 
        Responsibility Act.
            ``(3) Targeted assistance schools.--To determine if an 
        elementary school or a secondary school that is conducting a 
        targeted assistance program under section 1115 should be 
        identified for school improvement under this subsection, a 
        local educational agency may choose to review the progress of 
        only the students in such school who are served, or are 
        eligible for services, under this part.
            ``(4) Opportunity to review and present evidence.--(A) 
        Before identifying an elementary school or a secondary school 
        for school improvement under paragraph (1), the local 
        educational agency shall provide the school with an opportunity 
        to review the school level data, including assessment data, on 
        which the proposed identification is based.
            ``(B) If the principal of a school proposed for 
        identification for school improvement believes that the 
        proposed identification is in error for statistical or other 
        substantive reasons, the principal may provide supporting 
        evidence to the local educational agency, which shall consider 
        such evidence before making a final determination.
            ``(5) Time limits.--Not later than 30 days after a local 
        educational agency makes an initial determination concerning 
        identifying a school served by the agency and receiving 
        assistance under this part for school improvement, the local 
        educational agency shall make public a final determination on 
        the status of the school.
            ``(6) Notification to parents.--A local educational agency 
        shall, in an easily understandable format, and in the 3 
        languages, other than English, spoken by the greatest number of 
        individuals in the area served by the local educational agency, 
        provide in writing to parents of each student in an elementary 
        school or a secondary school identified for school 
        improvement--
                    ``(A) an explanation of what the school improvement 
                identification means, and how the school identified for 
                school improvement compares in terms of academic 
                performance to other elementary schools or secondary 
                schools served by the local educational agency and the 
                State educational agency involved;
                    ``(B) the reasons for such identification;
                    ``(C) a description of the data on which such 
                identification was based;
                    ``(D) an explanation of what the school identified 
                for school improvement is doing to address the problem 
                of low performance;
                    ``(E) an explanation of what the local educational 
                agency or State educational agency is doing to help the 
                school address the performance problem, including an 
                explanation of the amounts and types of professional 
                development being provided to the instructional staff 
                in such school, the amount of any financial assistance 
                being provided by the State educational agency under 
                section 1003, and the activities that are being 
                provided with such financial assistance;
                    ``(F) an explanation of how parents described in 
                this paragraph can become involved in addressing the 
                academic issues that caused the school to be identified 
                for school improvement; and
                    ``(G) an explanation of the right of parents, 
                pursuant to paragraph (7), to transfer their child to a 
                higher performing public school, including a public 
                charter school or magnet school, that is not in school 
                improvement status, and how such transfer will be 
                carried out.
            ``(7) Public school choice option.--(A)(i) In the case of a 
        school identified for school improvement on or before the date 
        of enactment of the Public Education Reinvestment, Reinvention, 
        and Responsibility Act, a local educational agency shall, not 
        later than 18 months after such date of enactment, provide all 
        students enrolled in the school an option to transfer 
        (consistent with State and local law, policy, and practices 
        related to public school choice and local pupil transfer) to 
        any higher performing public school, including a public charter 
        or magnet school, that--
                    ``(I) is not in school improvement or corrective 
                action status;
                    ``(II) has not been in school improvement or 
                corrective action status at any time during the 2 
                academic years before the identification; and
                    ``(III) is not at risk of being identified for 
                school improvement or corrective action during the 
                academic year after the identification.
            ``(ii) In the case of a school identified for school 
        improvement after the date of enactment of the Public Education 
        Reinvestment, Reinvention, and Responsibility Act, the local 
        educational agency involved shall, not later than 12 months 
        after the date on which the local educational agency identifies 
        the school for school improvement, provide all students 
        enrolled in the school with the transfer option described in 
        clause (i).
            ``(B) If all public schools served by the local educational 
        agency to which a student may transfer under clause (i) are 
        identified for school improvement or corrective action, or, if 
        public schools in the agency's jurisdiction that are not in 
        school improvement or corrective action status cannot 
        accommodate all of the students who are eligible to transfer 
        because of capacity constraints, or State or local law, policy, 
        and practices related to public school choice and local pupil 
        transfer, the local educational agency shall, to the extent 
        practicable, establish a cooperative agreement with other local 
        educational agencies that serve areas in proximity to the area 
        served by the local educational agency. The cooperative 
        agreement shall enable a student to transfer (consistent with 
        State and local law, policy, and practices related to public 
        school choice and local pupil transfer) to a school served by 
        such other local educational agencies that meets the 
        requirements described in subparagraph (A)(i).
            ``(C) A local educational agency that serves a school that 
        has been identified for corrective action shall provide 
        transportation services or pay for the costs of transportation 
        for students who transfer to a different school pursuant to 
        this paragraph. Not more than 10 percent of the funds allocated 
        to a local educational agency under this part may be used to 
        provide such transportation services or pay for the costs of 
        such transportation.
            ``(D) Once a school is no longer identified for school 
        improvement, the local educational agency shall continue to 
        provide the transfer option described in subparagraph (A)(i) to 
        students in such school for a period of not less than 2 years.
            ``(8) School plan.--(A) Each school identified under 
        paragraph (1) for school improvement shall, not later than 3 
        months after being so identified, develop or revise a school 
        plan, in consultation with parents, school staff, the local 
        educational agency serving the school, the local school board, 
        and other outside experts, for approval by such local 
        educational agency. The school plan shall--
                    ``(i) incorporate scientifically based research 
                strategies that strengthen the core academic subjects 
                in the school and address the specific academic issues 
                that caused the school to be identified for school 
                improvement;
                    ``(ii) adopt policies and practices concerning the 
                school's core academic subjects that have the greatest 
                likelihood of ensuring that all groups of students 
                specified in section 1111(b)(2)(B)(iv) and enrolled in 
                the school will meet the State's proficient level of 
                performance on the State assessment described in 
                section 1111(b)(4) within 10 years after the date of 
                enactment of the Public Education Reinvestment, 
                Reinvention, and Responsibility Act;
                    ``(iii) provide an assurance that the school will 
                reserve not less than 10 percent of the funds made 
                available to the school under this part for each fiscal 
                year that the school is in school improvement status, 
                for the purpose of providing to the school's teachers 
                and principal high quality professional development 
                that--
                            ``(I) directly addresses the academic 
                        performance problem that caused the school to 
                        be identified for school improvement; and
                            ``(II) meets the requirements for 
                        professional development activities under 
                        section 1119A;
                    ``(iv) specify how the funds described in clause 
                (iii) will be used to remove the school from school 
                improvement status;
                    ``(v) establish specific annual, numerical progress 
                goals for each group of students specified in section 
                1111(b)(2)(B)(iv) and enrolled in the school that will 
                ensure that all such groups of students will meet the 
                State's proficient level of performance on the State 
                assessment described in section 1111(b)(4) within 10 
                years after the date of enactment of the Public 
                Education Reinvestment, Reinvention, and Responsibility 
                Act;
                    ``(vi) identify how the school will provide written 
                notification about the identification to parents of 
                each student enrolled in such school, in a format and, 
                to the extent practicable, in a language such parents 
                can understand; and
                    ``(vii) specify the responsibilities of the school, 
                the local educational agency, and the State educational 
                agency serving such school under the plan.
            ``(B) The local educational agency described in 
        subparagraph (A)(vii) may condition approval of a school plan 
        on inclusion of 1 or more of the corrective actions specified 
        in paragraph (10)(D).
            ``(C) A school shall implement the school plan (including a 
        revised plan) expeditiously, but not later than the beginning 
        of the school year following the school year in which the 
        school was identified for school improvement.
            ``(D) The local educational agency described in 
        subparagraph (A)(vii) shall establish a peer review process to 
        assist with review of a school plan prepared by a school served 
        by the local educational agency, promptly review the school 
        plan, work with the school as necessary, and approve the school 
        plan if the school plan meets the requirements of this 
        paragraph.
            ``(9) Technical assistance.--(A) For each school identified 
        for school improvement under paragraph (1), the local 
        educational agency serving the school shall provide technical 
        assistance as the school develops and implements the school 
        plan.
            ``(B) Such technical assistance--
                    ``(i) shall include assistance in analyzing data 
                from the assessments required under section 1111(b)(4), 
                and other samples of student work, to identify and 
                address instructional problems and solutions;
                    ``(ii) shall include assistance in identifying and 
                implementing instructional strategies and methods that 
                are tied to scientifically based research and that have 
                proven effective in addressing the specific 
                instructional issues that caused the school to be 
                identified for school improvement;
                    ``(iii) shall include assistance in analyzing and 
                revising the school's budget so that the school 
                resources are more effectively allocated for the 
                activities most likely to increase student performance 
                and to remove the school from school improvement 
                status; and
                    ``(iv) may be provided--
                            ``(I) by the local educational agency, 
                        through mechanisms authorized under section 
                        1117; or
                            ``(II) with the local educational agency's 
                        approval, by the State educational agency, an 
                        institution of higher education (in full 
                        compliance with all the reporting provisions of 
                        title II of the Higher Education Act of 1965), 
                        a private not-for-profit organization or for-
                        profit organization, an educational service 
                        agency, the recipient of a Federal contract or 
                        cooperative agreement as described under 
                        section 7104(a)(3), or another entity with 
                        experience in helping schools improve 
                        performance.
            ``(C) Technical assistance provided under this section by a 
        local educational agency or an entity approved by such agency 
        shall be based on scientifically based research.
            ``(10) Corrective action.--(A) In this paragraph, the term 
        `corrective action' means action, consistent with State and 
        local law, that--
                    ``(i) substantially and directly responds to--
                            ``(I) the consistent academic failure of a 
                        school that caused the local educational agency 
                        to take such action; and
                            ``(II) any underlying staffing, curriculum, 
                        or other problem in the school; and
                    ``(ii) is designed to increase substantially the 
                likelihood that students enrolled in the school 
                identified for corrective action will perform at the 
                State's proficient and advanced levels of performance 
                on the State assessment described in section 
                1111(b)(4).
            ``(B) 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 subparagraphs (C) through (H).
            ``(C) After providing technical assistance under paragraph 
        (9) and subject to subparagraph (G), the local educational 
        agency--
                    ``(i) may identify for corrective action and take 
                corrective action at any time with respect to a school 
                that is served by the local educational agency and that 
                has been identified under paragraph (1);
                    ``(ii) shall identify for corrective action and 
                take corrective action with respect to any school 
                served by the local educational agency that fails to 
                make adequate yearly progress, as defined by the State 
                under section 1111(b)(2), at the end of the second year 
                after the school year in which the school was 
                identified under paragraph (1); and
                    ``(iii) shall continue to provide technical 
                assistance while instituting any corrective action 
                under clause (i) or (ii).
            ``(D) In the case of a school described in subparagraph 
        (C)(ii), the local educational agency shall take corrective 
        action by--
                    ``(i)(I) withholding funds from the school;
                    ``(II) making alternative governance arrangements, 
                including reopening the school as a public charter 
                school;
                    ``(III) reconstituting the relevant school staff; 
                or
                    ``(IV) instituting and fully implementing a new 
                curriculum, including providing appropriate 
                professional development for all relevant staff, that 
                is tied to scientifically based research and offers 
                substantial promise of improving educational 
                performance for low-performing students; and
                    ``(ii)(I) authorizing students to transfer 
                (consistent with the requirements of paragraph (7)) to 
                higher performing public schools served by the local 
                educational agency, including public charter and magnet 
                schools; and
                    ``(II) providing to such students transportation 
                services, or paying for the cost of transportation, to 
                such schools (except that the funds used by the local 
                educational agency to provide the transportation 
                services or pay for the cost of transportation shall 
                not exceed 10 percent of the amount allocated to the 
                local educational agency under this part.
            ``(E) A local educational agency may delay, for a period 
        not to exceed 1 year, implementation of corrective action only 
        if the school's failure to make adequate yearly progress was 
        justified due to exceptional or uncontrollable circumstances, 
        such as a natural disaster or a precipitous and unforeseen 
        decline in the financial resources of the local educational 
        agency or school.
            ``(F) The local educational agency shall publish and 
        disseminate information regarding any corrective action the 
        local educational agency takes under this paragraph at a 
        school--
                    ``(i) to the public and to the parents of each 
                student enrolled in the school subject to corrective 
                action;
                    ``(ii) in a format and, to the extent practicable, 
                in a language that the parents can understand; and
                    ``(iii) through such means as the Internet, the 
                media, and public agencies.
            ``(G)(i) Before identifying an elementary school or a 
        secondary school corrective action under this paragraph, the 
        local educational agency shall provide the school with an 
        opportunity to review the school level data, including 
        assessment data, on which the proposed identification is based.
            ``(ii) If the principal of the school believes that the 
        proposed determination is in error for statistical or other 
        substantive reasons, the principal may provide supporting 
        evidence to the local educational agency, which shall consider 
        such evidence before making a final determination.
            ``(H) Not later than 30 days after a local educational 
        agency makes an initial determination concerning identifying a 
        school served by the agency and receiving assistance under this 
        part, the local educational agency shall make public a final 
        determination on the status of the school.
            ``(11) State educational agency responsibilities.--If a 
        State educational agency determines that a local educational 
        agency failed to carry out the agency's responsibilities under 
        this section, or determines that, after 1 year of 
        implementation of corrective action, such action has not 
        resulted in sufficient progress in increased student 
        performance, the State educational agency shall take such 
        action as the agency finds necessary, including designating a 
        course of corrective action described in paragraph (10)(D), 
        consistent with this section, to improve the affected schools 
        and to ensure that the local educational agency carries out the 
        local educational agency's responsibilities under this section.
            ``(12) Special rules.--Schools that, for at least 2 of the 
        3 years following identification under paragraph (1), make 
        adequate yearly progress toward meeting the State's proficient 
        and advanced levels of performance on the State assessment 
        described in section 1111(b)(4) shall no longer be identified 
        for school improvement.''.
    (c) State Review and Local Educational Agency Improvement.--Section 
1116(d) (20 U.S.C. 6317(d)) is amended to read as follows:
    ``(d) State Review and Local Educational Agency Improvement.--
            ``(1) In general.--A State educational agency shall 
        annually review the progress of each local educational agency 
        within the State receiving funds under this part to determine 
        whether schools served by such agencies and receiving 
        assistance under this part are making adequate yearly progress, 
        as defined under section 1111(b)(2), toward meeting the State's 
        student performance standards and to determine whether each 
        local educational agency is carrying out its responsibilities 
        under sections 1116 and 1117.
            ``(2) Identification of local educational agency for 
        improvement.--A State educational agency shall identify for 
        improvement any local educational agency that--
                    ``(A) for 2 consecutive years failed to make 
                adequate yearly progress as defined in the State's plan 
                under section 1111(b)(2); or
                    ``(B) was in improvement status under this section 
                on the day before the date of enactment of the Public 
                Education Reinvestment, Reinvention, and Responsibility 
                Act.
            ``(3) Transition.--The 2-year period described in paragraph 
        (2)(A) shall include any continuous period of time immediately 
        before the date of enactment of the Public Education 
        Reinvestment, Reinvention, and Responsibility Act during which 
        a local educational agency did not make adequate yearly 
        progress as defined in the State's plan, as such plan was in 
        effect on the day before the date of enactment of the Public 
        Education Reinvestment, Reinvention, and Responsibility Act.
            ``(4) Targeted assistance schools.--To determine if a local 
        educational agency that serves elementary schools or secondary 
        schools that are conducting targeted assistance programs under 
        section 1115 should be identified for improvement under this 
        subsection, a State educational agency may choose to review the 
        progress of only the students in such schools who are served, 
        or who are eligible for services, under this part.
            ``(5) Opportunity to review and present evidence.--(A) 
        Before identifying a local educational agency for improvement 
        under paragraph (2), a State educational agency shall provide 
        the local educational agency with an opportunity to review the 
        local educational agency data, including assessment data, on 
        which the proposed identification is based.
            ``(B) If the local educational agency believes that the 
        proposed identification is in error for statistical or other 
        substantive reasons, the local educational agency may provide 
        supporting evidence to the State educational agency, which 
        shall consider such evidence before making a final 
        determination.
            ``(6) Time limits.--Not later than 45 days after the State 
        educational agency makes an initial determination concerning 
        identifying a local educational agency within the State and 
        receiving assistance under this part for improvement, the State 
        educational agency shall make public a final determination on 
        the status of the local educational agency.
            ``(7) Notification to parents.--The State educational 
        agency shall promptly notify parents of each student enrolled 
        in a school served by a local educational agency identified for 
        improvement, in a format, and to the extent practicable, in a 
        language the parents can understand, of--
                    ``(A) the reasons for such identification; and
                    ``(B) how the parents can participate in upgrading 
                the quality of the local educational agency.
            ``(8) Local educational agency plan.--(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, in consultation with 
        parents, teachers and other school staff, the local school 
        board, and others, for approval by the State educational 
        agency. Such plan shall--
                    ``(i) incorporate scientifically based research 
                strategies that strengthen the core academic subjects 
                in schools served by the local educational agency;
                    ``(ii) identify specific annual numerical academic 
                performance objectives in at least the areas of 
                mathematics and English language arts that the local 
                educational agency will meet, with such objectives 
                being calculated in a manner so that their achievement 
                will ensure that each group of students enrolled in 
                each school served by the local educational agency will 
                meet the State's proficient level of performance on the 
                State assessment described in section 1111(b)(4) within 
                10 years after the date of enactment of the Public 
                Education Reinvestment, Reinvention, and Responsibility 
                Act; and
                    ``(iii) provide an assurance that the local 
                educational agency will--
                            ``(I) reserve not less than 10 percent of 
                        the funds made available to the local 
                        educational agency under this part for each 
                        fiscal year that the agency is in improvement 
                        status for the purpose of providing to teachers 
                        and principals at schools served by the agency 
                        and receiving funds under this part high 
                        quality professional development that--
                                    ``(aa) directly addresses the 
                                academic performance problem that 
                                caused the local educational agency to 
                                be identified for improvement; and
                                    ``(bb) meets the requirements for 
                                professional development activities 
                                under section 1119A; and
                            ``(II) specify how the funds described in 
                        subclause (I) will be used to remove the local 
                        educational agency from improvement status;
                    ``(iv) identify how the local educational agency 
                will provide written notification about the 
                identification to parents described in paragraph (7) in 
                a format and, to the extent practicable, in a language, 
                that such parents can understand, pursuant to paragraph 
                (7);
                    ``(v) specify the responsibilities of the local 
                educational agency and the State educational agency 
                under the plan; and
                    ``(vi) include a review of the local educational 
                agency budget to ensure that resources are allocated 
                for the activities that are most likely to improve 
                student performance and to remove the agency from 
                improvement status.
            ``(B) The local educational agency shall implement the 
        local educational agency plan (including a revised plan) 
expeditiously, but not later than the beginning of the school year 
following the school year in which the agency was identified for 
improvement.
            ``(C) The State educational agency shall establish a peer 
        review process to assist with review of the local educational 
        agency plan, promptly review the plan, work with the local 
        educational agency as necessary, and approve the plan if the 
        plan meets the requirements of this paragraph.
            ``(D) If the local educational agency budget, in allocating 
        resources to activities, fails to allocate resources as 
        described in subparagraph (A)(vi), the State educational agency 
        may direct the local educational agency to reallocate resources 
        to more effective activities.
            ``(9) State educational agency responsibility.--For each 
        local educational agency identified under paragraph (2), the 
        State educational agency shall provide technical or other 
        assistance, if requested, as authorized under section 1117, to 
        better enable the local educational agency--
                    ``(A) to develop and implement a local educational 
                agency plan (including a revised plan) that is approved 
                by the State educational agency consistent with the 
                requirements of this section; and
                    ``(B) to work with schools served by the local 
                educational agency that are identified for school 
                improvement.
            ``(10) Technical assistance.--The technical assistance 
        provided by the State educational agency--
                    ``(A) shall include assistance in analyzing data 
                from the assessments required under section 1111(b)(4) 
                and other samples of student work, to identify and 
                address instructional problems and solutions;
                    ``(B) shall include assistance in identifying and 
                implementing instructional strategies and methods that 
                are tied to scientifically based research and that have 
                proven effective in addressing the specific 
                instructional issues that caused the local educational 
                agency to be identified for improvement;
                    ``(C) shall include assistance in analyzing and 
                revising the local educational agency's budget so that 
                the agency's resources are more effectively allocated 
                for the activities most likely to increase student 
                performance and to remove the agency from improvement 
                status; and
                    ``(D) may be provided by--
                            ``(i) the State educational agency; or
                            ``(ii) with the local educational agency's 
                        approval, by an institution of higher education 
                        (in full compliance with all the reporting 
                        provisions of title II of the Higher Education 
                        Act of 1965), a private not-for-profit 
                        organization or for-profit organization, an 
                        educational service agency, the recipient of a 
                        Federal contract or cooperative agreement as 
                        described under section 7104(a)(3), or another 
                        entity with experience in helping schools 
                        improve performance.
            ``(11) Resources reallocation.--The State educational 
        agency may, as a condition of providing the local educational 
        agency with technical assistance and financial support in 
        developing and carrying out a local educational agency plan, 
        require that the local educational agency reallocate resources 
        from ineffective or inefficient activities to activities that, 
        through scientifically based research, have been proven to have 
        the greatest impact on increasing student performance and 
        closing the achievement gap between groups of students.
            ``(12) Corrective action.--(A) In this paragraph, the term 
        `corrective action' means action, consistent with State law, 
        that--
                    ``(i) substantially and directly responds to--
                            ``(I) the consistent academic failure of 
                        schools served by a local educational agency 
                        that caused the State educational agency to 
                        take such action with respect to the local 
                        educational agency; and
                            ``(II) any underlying staffing, curriculum, 
                        or other problem in the schools served by the 
                        local educational agency; and
                    ``(ii) is designed to increase substantially the 
                likelihood that students enrolled in the schools served 
                by the local educational agency identified for 
                corrective action will perform at the State's 
                proficient and advanced levels of performance on the 
                State assessment described in section 1111(b)(4).
            ``(B) 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 subparagraphs (C) through (H).
            ``(C) After providing technical assistance, if requested, 
        under paragraphs (9) and (10), and subject to subparagraph (E), 
        the State educational agency--
                    ``(i) shall identify for corrective action and take 
                corrective action with respect to any local educational 
                agency that fails to make adequate yearly progress, as 
                defined by the State under section 1111(b)(2), at the 
                end of the second year after the school year in which 
                the local educational agency was identified under 
                paragraph (2); and
                    ``(ii) shall continue to provide technical 
                assistance while instituting any corrective action 
                under clause (i).
            ``(D) In the case of a local educational agency described 
        in subparagraph (C)(ii), the State educational agency shall 
        take corrective action by--
                    ``(i)(I) withholding funds from the local 
                educational agency;
                    ``(II) reconstituting the relevant local 
                educational agency personnel;
                    ``(III) removing particular schools from the 
                jurisdiction of the local educational agency, and  
establishing alternative arrangements for public governance and 
supervision of such schools;
                    ``(IV) appointing a receiver or trustee to 
                administer the affairs of the local educational agency 
                in place of the local educational agency's 
                superintendent and school board; or
                    ``(V) abolishing or restructuring the local 
                educational agency; and
                    ``(ii)(I) authorizing students to transfer 
                (consistent with the requirements of section 
                1116(c)(7)) from schools served by the local 
                educational agency to higher performing public schools, 
                including public charter and magnet schools, served by 
                another local educational agency; and
                    ``(II) providing to such students transportation 
                services, or paying for the cost of transportation, to 
                such higher performing schools (except that the funds 
                used by the local educational agency to provide the 
                transportation services or pay for the cost of 
                transportation shall not exceed 10 percent of the 
                amount allocated to the local educational agency under 
                this part.
            ``(E) The State educational agency may delay, for a period 
        not to exceed 1 year, implementation of corrective action only 
        if the local educational agency's failure to make adequate 
        yearly progress was justified due to exceptional or 
        uncontrollable circumstances, such as a natural disaster or a 
        precipitous and unforeseen decline in the financial resources 
        of the local educational agency or schools served by the local 
        educational agency.
            ``(F) The State educational agency shall publish and 
        disseminate information regarding any corrective action the 
        State educational agency takes under this paragraph--
                    ``(i) to the public and to the parents described in 
                paragraph (7) and the public;
                    ``(ii) in a format and, to the extent practicable, 
                in a language that the parents can understand; and
                    ``(iii) through such means as the Internet, the 
                media, and public agencies.
            ``(G) Prior to determining whether to take a corrective 
        action with respect to a local educational agency under this 
        paragraph, the State educational agency shall provide the local 
        educational agency with notice and a opportunity for a hearing, 
        if State law provides for such notice and opportunity.
            ``(H) Not later than 45 days after the State educational 
        agency makes an initial determination regarding taking a 
        corrective action concerning a local educational agency in the 
        State and receiving assistance under this part, the State 
        educational agency shall make public a final determination on 
        the status of the local educational agency.''.
    (d) Definition.--Section 1116 (20 U.S.C. 6317) is amended by adding 
at the end the following:
    ``(f) Definition.--In this section, the term `charter school' has 
the meaning given the term in section 4210.''.

SEC. 116. STATE ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.

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

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

    ``(a) System for Support.--Using funds described in subsection (e), 
each State educational agency shall establish a statewide system of 
intensive and sustained support and improvement for local educational 
agencies, elementary schools, and secondary schools receiving funds 
under this part, in order to ensure that all groups of students 
specified in section 1111(b)(2)(B)(iv) and attending such schools meet 
the State's proficient level of performance on the State assessments 
described in section 1111(b)(4) within 10 years after the date of 
enactment of the Public Education Reinvestment, Reinvention, and 
Responsibility Act.
    ``(b) Priorities.--In carrying out this section during an academic 
year, a State educational agency shall--
            ``(1) first, provide support and technical assistance to 
        local educational agencies identified for corrective action 
        under section 1116, and assist elementary schools and secondary 
        schools, in accordance with section 1116(c)(11), for which a 
        local educational agency has failed to carry out the agency's 
        responsibilities under paragraphs (9) and (10) of section 
        1116(c);
            ``(2) second, provide support and technical assistance to 
        local educational agencies and schools identified for 
        improvement under section 1116; and
            ``(3) third, provide support and technical assistance to 
        local educational agencies and schools participating under this 
        part that are at risk of being identified for improvement 
        during the subsequent academic year.
    ``(c) Approaches.--In order to achieve the objective described in 
subsection (a), the State educational agency shall ensure that the 
statewide system will provide support and technical assistance through 
approaches such as--
            ``(1) using school support teams, composed of individuals 
        who are knowledgeable about scientifically based research, 
        about teaching and learning practices, and particularly about 
        strategies for improving educational results for low-performing 
        students; and
            ``(2) designating and using distinguished educators, who 
        are chosen from schools served under this part that have been 
        especially successful in improving academic performance.
    ``(d) Alternatives.--The State educational agency may--
            ``(1) devise additional approaches to providing the support 
        and technical assistance described in subsection (c), such as 
        providing assistance through institutions of higher education, 
        educational service agencies, or other local consortia; and
            ``(2) seek approval from the Secretary to use funds under 
        section 1003(b) for such approaches as part of the State plan.
    ``(e) Funds.--The State educational agency--
            ``(1) shall use funds reserved under section 1003(a), but 
        not used under section 1003(b), to carry out this section; and
            ``(2) may use State administrative funds authorized under 
        section 1703(c) to carry out this section.''.

SEC. 117. PARENTAL INVOLVEMENT.

    (a) Local Educational Agency Policy.--Section 1118(a) (20 U.S.C. 
6319(a)) is amended--
            (1) in paragraph (1), by striking ``programs, activities, 
        and procedures'' and inserting ``activities and procedures'';
            (2) in paragraph (2), by striking subparagraphs (E) and (F) 
        and inserting the following:
                    ``(E) conduct, with the involvement of parents, an 
                annual evaluation of the content of the parental 
                involvement policy developed under such section and the 
                effectiveness of the policy in improving the academic 
                quality of the schools served under this part;
                    ``(F) involve parents in the activities of the 
                schools served under this part; and
                    ``(G) promote consumer friendly environments within 
                the local educational agency and schools served under 
                this part.''; and
            (3) in paragraph (3), by adding at the end the following 
        new subparagraph:
            ``(C) Not less than 90 percent of the funds reserved under 
        subparagraph (A) shall be distributed to schools served under 
        this part.''.
    (b) Notice.--Section 1118(b)(1) (20 U.S.C. 6319(b)(1)) is amended 
by inserting after the first sentence the following: ``Parents shall be 
notified of the policy in a format and, to the extent practicable, in a 
language, that the parents can understand.''.
    (c) Parental Involvement.--Section 1118(c)(4) (20 U.S.C. 
6319(c)(4)) is amended--
            (1) in subparagraph (B), by striking ``school performance 
        profiles required under section 1116(a)(3)'' and inserting 
        ``school reports described in section 4401'';
            (2) by redesignating subparagraphs (D) and (E) as 
        subparagraphs (F) and (G), respectively;
            (3) by inserting after subparagraph (C) the following:
                    ``(D) notice of the school's identification for 
                school improvement under section 1116(c), if 
                applicable, and a clear explanation of what such 
                identification means;
                    ``(E) notice of corrective action taken against the 
                school under section 1116(c)(10) or the local 
                educational agency involved under section 1116(d)(12), 
                if applicable, and a clear explanation of what such 
                action means;''; and
            (4) in subparagraph (G) (as redesignated by paragraph (2)), 
        by striking ``subparagraph (D)'' and inserting ``subparagraph 
        (F)''.
    (d) Building Capacity for Involvement.--Section 1118(e) (20 U.S.C 
6319(e)) is amended--
            (1) in paragraph (1), by striking ``National Educational 
        Goals,'';
            (2) by redesignating paragraphs (14) and (15) as paragraphs 
        (16) and (17), respectively;
            (3) by inserting after paragraph (13) the following:
            ``(14) may establish a parent advisory council to advise on 
        all matters related to parental involvement in programs 
        supported under this part;'';
            (4) by redesignating paragraph (5) as paragraph (15) and 
        inserting such paragraph after paragraph (14) (as inserted by 
        paragraph (3));
            (5) by inserting after paragraph (4) the following:
            ``(5) shall expand the use of electronic communication 
        among teachers, students, and parents, such as communication 
        through the use of websites and e-mail communication;'';
            (6) in paragraph (7), by inserting ``, to the extent 
        practicable, in a language and format the parent can 
        understand'' before the semicolon; and
            (7) in paragraph (15) (as redesignated by paragraph (4)), 
        by striking ``shall'' and inserting ``may''.
    (e) Accessibility.--Section 1118(f) (20 U.S.C. 6319(f)) is amended 
by striking ``, including'' and all that follows and inserting ``and of 
parents of migratory children, including providing information required 
under section 1111 and school reports described in section 4401 in a 
language and format such parents can understand.''.

SEC. 118. QUALIFICATIONS FOR TEACHERS AND PARAPROFESSIONALS.

    Title I (20 U.S.C. 6301 et seq.) is amended--
            (1) by redesignating section 1119 (20 U.S.C. 6320) as 
        section 1119A; and
            (2) by inserting after section 1118 the following:

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

    ``(a) In General.--
            ``(1) Plan.--Each State educational agency receiving 
        assistance under this part shall develop and submit to the 
        Secretary a plan to ensure that all teachers teaching within 
        the State are fully qualified not later than December 31, 2006. 
        Such plan shall include an assurance that the State educational 
        agency will require each local educational agency or school 
        receiving funds under this part publicly to report on annual 
        progress with respect to the local educational agency's or 
        school's performance in increasing the percentage of classes in 
        core academic subjects (as defined in section 2002) taught by 
        fully qualified teachers.
            ``(2) Special rule.--Notwithstanding any other provision of 
        law, the provisions of this section governing teacher 
        qualifications shall not supersede State laws governing public 
        charter schools (as defined in section 4210).
    ``(b) New Paraprofessionals.--Each local educational agency 
receiving assistance under this part shall ensure that each 
paraprofessional hired after December 31, 2004, and working in a 
program assisted under this part--
            ``(1) has completed at least the number of courses at an 
        institution of higher education in the  area of elementary 
education, or in the academic subject in which the paraprofessional is 
working, for a minor in elementary education or that subject at such 
institution;
            ``(2) has obtained an associate's (or higher) degree; or
            ``(3) has met a rigorous standard of quality, through 
        formal State certification (as described in subsection (h)), 
        that demonstrates, as appropriate--
                    ``(A) knowledge of, and the ability to provide 
                tutorial assistance in, reading, writing, and 
                mathematics; or
                    ``(B) knowledge of, and the ability to provide 
                tutorial assistance in, reading readiness, writing 
                readiness, and mathematics readiness.
    ``(c) Existing Paraprofessionals.--Each local educational agency 
receiving assistance under this part shall ensure that, not later than 
4 years after the date of enactment of the Public Education 
Reinvestment, Reinvention, and Responsibility Act, each 
paraprofessional working in a program assisted under this part shall 
have satisfied the requirements of subsection (b).
    ``(d) Exceptions for Translation and Parental Involvement 
Activities.--Subsections (b) and (c) shall not apply to a 
paraprofessional--
            ``(1) who is proficient in English and a language other 
        than English, and who provides services primarily to enhance 
        the participation of students in programs under this part by 
        acting as a translator; or
            ``(2) whose duties consist solely of conducting parental 
        involvement activities consistent with section 1118 or other 
        school readiness activities that are noninstructional.
    ``(e) General Requirement for All Paraprofessionals.--Each local 
educational agency receiving assistance under this part shall ensure 
that each paraprofessional working in a program assisted under this 
part, regardless of the paraprofessional's hiring date, has obtained a 
secondary school diploma or its recognized equivalent.
    ``(f) Duties of Paraprofessionals.--
            ``(1) In general.--Each local educational agency receiving 
        assistance under this part shall ensure that a paraprofessional 
        working in a program assisted under this part is not assigned a 
        duty inconsistent with this subsection.
            ``(2) Authorized responsibilities.--A paraprofessional 
        described in paragraph (1) may be assigned--
                    ``(A) to provide 1-on-1 tutoring for eligible 
                students under this part, if the tutoring is scheduled 
                at a time when the student would not otherwise receive 
                instruction from a teacher;
                    ``(B) to assist with classroom management, such as 
                organizing instructional and other materials;
                    ``(C) to provide assistance in a computer 
                laboratory;
                    ``(D) to conduct parental involvement activities or 
                school readiness activities that are noninstructional;
                    ``(E) to provide support in a library or media 
                center;
                    ``(F) to act as a translator; or
                    ``(G) to provide assistance with the provision of 
                instructional services to students.
            ``(3) Limitations.--A paraprofessional described in 
        paragraph (1)--
                    ``(A) shall not perform the duties of a certified 
                or licensed teacher or a substitute;
                    ``(B) shall not perform any duty assigned under 
                paragraph (2) except under the direct supervision of a 
                fully qualified teacher or other appropriate 
                professional; and
                    ``(C) may not provide assistance with the provision 
                of instructional services to students in the area of 
                reading, writing, or mathematics unless the 
                paraprofessional has demonstrated, through State 
                certification as described in subsection (b)(3), the 
                ability to effectively provide the assistance.
    ``(g) Uses of Funds.--Notwithstanding subsection (h)(2), a local 
educational agency receiving funds under this part may use such funds 
to support ongoing training and professional development to assist 
teachers and paraprofessionals in satisfying the requirements of this 
section.
    ``(h) State Certification.--Each State educational agency receiving 
assistance under this part shall--
            ``(1) ensure that the State educational agency has in place 
        State criteria for the certification of paraprofessionals by 
        December 31, 2003; and
            ``(2) ensure that paraprofessionals hired before December 
        31, 2004 who do not meet the requirements of subsection (b) are 
        in high-quality professional development activities that are 
        aimed at assisting paraprofessionals in meeting the 
        requirements of subsection (b) and that ensure that a 
        paraprofessional has the ability to carry out the duties 
        described in subsection (f).
    ``(i) Verification of Compliance.--
            ``(1) In general.--In verifying compliance with this 
        section, each local educational agency, at a minimum, shall 
        require that each principal of an elementary school or 
        secondary school operating a program under section 1114 or 1115 
        annually attest in writing as to whether the school is in 
        compliance with the requirements of this section.
            ``(2) Availability of information.--Copies of the annual 
        attestation described in paragraph (1)--
                    ``(A) shall be maintained at each elementary school 
                and secondary school operating a program under section 
                1114 or 1115 and at the main office of the local 
                educational agency; and
                    ``(B) shall be available to any member of the 
                general public on request.''.

SEC. 119. PROFESSIONAL DEVELOPMENT.

    Section 1119A (as redesignated by section 118(1)) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Purpose.--The purpose of this section is to assist each local 
educational agency receiving assistance under this part in increasing 
the academic achievement of eligible children (as identified under 
section 1115(b)(1)(B)) (referred to in this section as `eligible 
children') through improved teacher quality.'';
            (2) in subsection (b)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) Required activities.--Each local educational agency 
        receiving assistance under this part shall provide professional 
        development activities under this section that shall--
                    ``(A) give teachers, principals, and administrators 
                the knowledge and skills to provide eligible children 
                with the opportunity to meet challenging State or local 
                content standards and student performance standards;
                    ``(B) support the recruiting, hiring, and training 
                of fully qualified teachers;
                    ``(C) advance teacher understanding of effective 
                instructional strategies, based on scientifically based 
                research, for improving eligible children achievement 
                in, at a minimum, English language arts, mathematics, 
                and science;
                    ``(D) be directly related to the curricula and 
                academic subjects that a teacher teaches;
                    ``(E) be designed to enhance the ability of a 
                teacher to understand and use the State's standards for 
                the academic subject that the teacher teaches;
                    ``(F) be tied to scientifically based research that 
                demonstrates the effectiveness of such professional 
                development activities in increasing the achievement of 
                eligible children or substantially increasing the 
                subject matter knowledge, teaching knowledge, and 
                teaching skills of teachers;
                    ``(G) be of sufficient intensity and duration (not 
                to include such activities as 1-day or short-term 
                workshops and conferences) to have a positive and 
                lasting impact on teachers' performance in the 
                classroom, except that this subparagraph shall not 
                apply to an activity if such activity is 1 component 
                described in a long-term comprehensive professional 
                development plan--
                            ``(i) established by the teacher and the 
                        teacher's supervisor; and
                            ``(ii) based on an assessment of the needs 
                        of the teacher, the teacher's students who are 
                        eligible children, and the local educational 
                        agency involved;
                    ``(H) be developed with extensive participation of 
                teachers, principals, parents, administrators, and 
                local school boards of schools to be served under this 
                part;
                    ``(I) to the extent appropriate, provide training 
                for teachers regarding using technology and applying 
                technology effectively in the classroom, to improve 
                teaching and learning concerning the curricula and 
                academic subjects that the teachers teach;
                    ``(J) as a whole, be regularly evaluated for such 
                activities' impact on increased teacher effectiveness 
                and improved student achievement, with the findings of 
                such evaluations used to improve the quality of 
                professional development; and
                    ``(K) include strategies for identifying and 
                eliminating gender and racial bias in instructional 
                materials, methods, and practices.''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by inserting ``and 
                        data to provide information and instruction for 
                        classroom practice'' before the semicolon;
                            (ii) by striking subparagraphs (D) and (G);
                            (iii) by redesignating subparagraphs (E), 
                        (F), (H), and (I), as subparagraphs (D), (E), 
                        (F) and (G), respectively;
                            (iv) in subparagraph (F) (as redesignated 
                        by clause (iii)), by striking ``and'' after the 
                        semicolon;
                            (v) in subparagraph (G) (as redesignated by 
                        clause (iii)), by striking the period and 
                        inserting a semicolon; and
                            (vi) by adding at the end (as redesignated 
                        by clause (iii)) the following new 
                        subparagraph:
                    ``(H) instruction in the ways that teachers, 
                principals, and guidance counselors can work with 
                students (and the parents of the students) from groups, 
                such as females and minorities, that are 
                underrepresented in careers in mathematics, science, 
                engineering, and technology, to encourage and maintain 
                the interest of such students in those careers; and
                    ``(I) programs that are designed to assist new 
                teachers during their first 3 years of teaching, such 
                as mentoring programs that--
                            ``(i) provide mentoring to new teachers 
                        from veteran teachers with expertise in the 
                        same academic subject as the new teachers are 
                        teaching;
                            ``(ii) provide mentors time for activities 
                        such as coaching, observing, and assisting 
                        teachers who are being mentored; and
                            ``(iii) use standards or assessments that 
                        are consistent with the State's student 
                        performance standards and the requirements for 
                        professional development activities described 
                        in section 2109 in order to guide the new 
                        teachers.'';
            (3) by striking subsections (f) through (i); and
            (4) by adding after subsection (e) the following:
    ``(f) Consolidation of Funds.--Funds provided under this part that 
are used for professional development purposes may be consolidated with 
funds provided under title II and other sources.''.

SEC. 120. FISCAL REQUIREMENTS.

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

SEC. 121. COORDINATION REQUIREMENTS.

    Section 1120B (20 U.S.C. 6323) is amended--
            (1) in subsection (a), by striking ``to the extent 
        feasible'' and all that follows through the period and 
        inserting ``in coordination with local Head Start agencies and, 
        if feasible, entities carrying out other early childhood 
        development programs.''; and
            (2) in subsection (b)--
                    (A) in paragraph (3), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (4), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end, the following:
            ``(5) linking the educational services provided by such 
        local educational agency with the services provided by local 
        Head Start agencies.''.

SEC. 122. LIMITATIONS ON FUNDS.

    Subpart 1 of part A of title I (20 U.S.C. 6311 et seq.) is amended 
by inserting after section 1120B (20 U.S.C. 6323) the following:

``SEC. 1120C. LIMITATIONS ON FUNDS.

    ``(a) In General.--Notwithstanding any other provision of this Act, 
a local educational agency shall use funds received under this part 
only to provide academic instruction and services directly related to 
the instruction to students in preschool through grade 12 to assist 
eligible children to improve their academic achievement and to meet 
achievement standards established by the State.
    ``(b) Permissible and Prohibited Activities.--In this subpart, the 
term `academic instruction'--
            ``(1) includes--
                    ``(A) the employment of teachers and other 
                instructional personnel, including providing teachers 
                and instructional personnel with employee benefits;
                    ``(B) the extension of instruction described in 
                this subsection beyond the normal school day and year, 
                including during summer school;
                    ``(C) the provision of instructional services to 
                pre-kindergarten children to prepare such children for 
                the transition to kindergarten;
                    ``(D) the purchase of instructional resources, such 
                as books, materials, computers, other instructional 
                equipment, and wiring to support instructional 
                equipment;
                    ``(E) the development and administration of 
                curricula, educational materials, and assessments;
                    ``(F) the implementation of--
                            ``(i) instructional interventions in 
                        schools in need of improvement; and
                            ``(ii) corrective actions to improve 
                        student achievement; and
                    ``(G) the transportation of students to assist the 
                students in improving academic achievement, except that 
                not more than 10 percent of the funds made available 
                under this part to a local educational agency shall be 
                used to carry out this subparagraph; and
            ``(2) does not include--
                    ``(A) the purchase or provision of janitorial 
                services or the payment of utility costs;
                    ``(B) the construction or operation of facilities;
                    ``(C) the acquisition of real property;
                    ``(D) the payment of costs for food and 
                refreshments; or
                    ``(E) the purchase or lease of vehicles.''.

SEC. 123. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF THE 
              INTERIOR.

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

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

    ``(a) Reservation of Funds.--From the amount appropriated for 
payments to States for any fiscal year under section 1002(a), the 
Secretary shall reserve a total of 1 percent to provide assistance to--
            ``(1) the outlying areas on the basis of their respective 
        need for such assistance according to such criteria as the 
        Secretary determines will best carry out the purpose of this 
        part; and
            ``(2) the Secretary of the Interior in the amount necessary 
        to make payments pursuant to subsection (c).
    ``(b) Assistance to the Outlying Areas.--
            ``(1) In general.--From amounts made available under 
        subsection (a) in each fiscal year, the Secretary shall make 
        grants to local educational agencies in the outlying areas 
        (other than the outlying areas assisted under paragraph (2)).
            ``(2) Competitive grants.--(A) For each fiscal year through 
        2001, the Secretary shall reserve $5,000,000 from the amounts 
        made available under subsection (a) to award grants on a 
        competitive basis, to local educational agencies in the 
        Federated States of Micronesia, the Republic of the Marshall 
        Islands, and the Republic of Palau. The Secretary shall award 
        such grants according to the recommendations of the Pacific 
        Region Educational Laboratory which shall conduct a competition 
        for such grants.
            ``(B) Except as provided in subparagraph (D), grant funds 
        awarded under this part only may be used for programs described 
        in this Act, including teacher training, curriculum 
        development, instructional materials, or general school 
        improvement and reform.
            ``(C) Grant funds awarded under this paragraph may only be 
        used to provide direct educational services.
            ``(D) The Secretary may provide 5 percent of the amount 
        made available for grants under this paragraph to pay the 
        administrative costs of the Pacific Region Educational 
        Laboratory regarding activities assisted under this paragraph.
    ``(c) Allotment to the Secretary of the Interior.--
            ``(1) In general.--The amount allotted for payments to the 
        Secretary of the Interior under subsection (a)(2) for any 
        fiscal year shall be, as determined pursuant to criteria 
        established by the Secretary, the amount necessary to meet the 
        special educational needs of--
                    ``(A) Indian children on reservations served by 
                elementary schools and secondary schools for Indian 
                children operated or supported by the Department of the 
                Interior; and
                    ``(B) out-of-State Indian children in elementary 
                schools and secondary schools in local educational 
                agencies under special contracts with the Department of 
                the Interior.
            ``(2) Payments.--From the amount allotted for payments to 
        the Secretary of the Interior under subsection (a)(2), the 
        Secretary of the Interior shall make payments to local 
        educational agencies, upon such terms as the Secretary 
        determines will best carry out the purposes of this part, with 
        respect to out-of-State Indian children described in paragraph 
        (1). The amount of such payment may not exceed, for each such 
        child, the greater of--
                    ``(A) 40 percent of the average per pupil 
                expenditure in the State in which the agency is 
                located; or
                    ``(B) 48 percent of such expenditure in the United 
                States.''.

SEC. 124. AMOUNTS FOR GRANTS.

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

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

    ``(a) In General.--For fiscal years 2002 through 2006, an amount of 
the appropriations for this part equal to the appropriation for fiscal 
year 2001 for section 1124 shall be allocated in accordance with 
section 1124, and an amount equal to the appropriation for fiscal year 
2001 for section 1124A shall be allocated in accordance with section 
1124A. Any additional appropriations under section 1002(a) for any 
fiscal year, after application of the preceding sentence, shall be 
allocated in accordance with section 1125.
    ``(b) Adjustments Where Necessitated by Appropriations.--
            ``(1) In general.--If the sums available under this part 
        for any fiscal year are insufficient to pay the full amounts 
        that all local educational agencies in States are eligible to 
        receive under sections 1124, 1124A, and 1125 for such year, the 
        Secretary shall ratably reduce the allocations to such local 
        educational agencies, subject to subsections (c) and (d).
            ``(2) Additional funds.--If additional funds become 
        available for making payments under sections 1124, 1124A, and 
        1125 for such fiscal year, allocations that were reduced under 
        paragraph (1) shall be increased on the same basis as they were 
        reduced.
    ``(c) Hold-Harmless Amounts.--
            ``(1) In general.--For each fiscal year, except as provided 
        in paragraph (2) and subsection (d), the amount made available 
        to each local educational agency under each of sections 1124 
        and 1125 shall be not less than 95 percent of the previous 
        year's amount if the number of children counted for grants 
        under section 1124 is at least 30 percent of the total number 
        of children aged 5 to 17 years, inclusive, in the local 
        educational agency, 90 percent of the previous year amount if 
        this percentage is between 15 percent and 30 percent, and 85 
        percent if this percentage is below 15 percent.
            ``(2) Sufficient funds.--If sufficient funds are 
        appropriated, the hold-homeless amounts described in paragraph 
        (1) shall be paid to all local educational agencies that 
        received grants under section 1124, 1124A, or 1125 for the 
        preceding fiscal year, regardless of whether the local 
        educational agency currently meets the minimum eligibility 
        criteria provided in section 1124(b), 1124A(a)(1)(A), or 
        1125(a), respectively, except that a local educational agency 
        which does not meet such minimum eligibility criteria for 5 
        consecutive years shall no longer be eligible to receive a 
        hold-harmless amount.
            ``(3) Calculation.--In any fiscal year for which the 
        Secretary calculates grants on the basis of population data for 
        counties, the Secretary shall apply the hold-harmless 
        percentages in paragraph (1) to counties, and, if the 
        Secretary's allocation for a county is not sufficient to meet 
        the hold-harmless requirements of this subsection for every 
        local educational agency within that county, then the State 
        educational agency shall reallocate funds proportionately from 
        all other local educational agencies in the State that are 
        receiving funds in excess of the hold-harmless amounts 
        specified in this subsection.
    ``(d) Ratable Reductions.--
            ``(1) In general.--If the sums made available under this 
        part for any fiscal year are insufficient to pay the full 
        amounts that all States are eligible to receive under 
        subsection (c) for such year, the Secretary shall ratably 
        reduce such amounts for such year.
            ``(2) Additional funds.--If additional funds become 
        available for making payments under subsection (c) for such 
        fiscal year, amounts that were reduced under paragraph (1) 
        shall be increased on the same basis as such amounts reduced.
    ``(e) Definition.--For the purpose of this section and sections 
1124, 1124A, and 1125, the term `State' means each of the 50 States, 
the District of Columbia, and the Commonwealth of Puerto Rico.''.

SEC. 125. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    (a) Findings.--Congress finds that--
            (1) according to the Department of Education, 58 percent of 
        all elementary schools and secondary schools receive at least 
        some funds under title I of the Elementary and Secondary 
        Education Act of 1965 (referred to in this section as ``title I 
        funds'');
            (2) of the elementary schools and secondary schools that 
        receive no title I funds at all, a disturbing number have high 
        concentrations of poor students;
            (3) 1 out of every 5 elementary schools and secondary 
        schools with poverty rates between 50 percent and 75 percent do 
        not get any title I funds;
            (4) a school district qualifies for funding through basic 
        grants made under such title I if at least 2 percent of the 
        students in the school district are from families with incomes 
        below the poverty line;
            (5) 9 out of every 10 school districts receive some title I 
        funds; and
            (6) Congress has never appropriated funding to provide 
        targeted grants under such title I.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) title I funds are distributed so broadly that many of 
        the Nation's elementary schools and secondary schools with high 
        poverty rates are not receiving on title I funds;
            (2) the Federal Government is not living up to the original 
        intent of the Elementary and Secondary Education Act of 1965, 
        which was to focus Federal funding to ensure that poor students 
        have equal access to a quality education;
            (3) it is the role of the Federal Government to provide 
        targeted funding for school districts in which the Nation's 
        poorest students live, while holding States and localities 
        accountable for raising the academic performance of all 
        students in the United States to a higher level; and
            (4) the Federal Government must take a firm stand to better 
        focus Federal funds on the Nation's  poorest school districts 
through a new formula for the title I funds that will ensure that the 
funds are targeted so that elementary schools and secondary schools in 
high-poverty urban and rural areas get the Federal resources for 
education that the schools need and deserve.
    (c) General Authority.--Section 1124 (20 U.S.C. 6333) is amended to 
read as follows:

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

    ``(a) Amount of Grants.--
            ``(1) Grants for local educational agencies and puerto 
        rico.--Except as provided in paragraph (4) and in section 1126, 
        the grant that a local educational agency is eligible to 
        receive under this section for a fiscal year is the amount 
        determined by multiplying--
                    ``(A) the number of children counted under 
                subsection (c); and
                    ``(B) 40 percent of the average per-pupil 
                expenditure in the State, except that the amount 
                determined under this subparagraph shall not be less 
                than 32 percent, and not more than 48 percent, of the 
                average per-pupil expenditure in the United States.
            ``(2) Calculation of grants.--(A) The Secretary shall 
        calculate grants under this section on the basis of the number 
        of children counted under subsection (c) for local educational 
        agencies, unless the Secretary and the Secretary of Commerce 
        determine that some or all of those data are unreliable or that 
        their use would be otherwise inappropriate, in which case--
                    ``(i) the 2 Secretaries shall publicly disclose the 
                reasons for their determination in detail; and
                    ``(ii) paragraph (3) shall apply.
            ``(B)(i) For any fiscal year to which this paragraph 
        applies, the Secretary shall calculate grants under this 
        section for each local educational agency.
            ``(ii) The amount of a grant under this section for each 
        large local educational agency shall be the amount determined 
        under clause (i).
            ``(iii) For small local educational agencies, the State 
        educational agency may either--
                    ``(I) distribute grants under this section in 
                amounts determined by the Secretary under clause (i); 
                or
                    ``(II) use an alternative method, developed in 
                accordance with clause (iv), approved by the Secretary 
                to distribute the portion of the State's total grants 
                under this section that is based on those small 
                agencies.
            ``(iv) An alternative method under clause (iii)(II) shall 
        be based on population data that the State educational agency 
        determines best reflect the current distribution of children in 
        poor families among the State's small local educational 
        agencies that meet the eligibility criteria of subsection (b).
            ``(v) If a small local educational agency is dissatisfied 
        with the determination of its grant by the State educational 
        agency under clause (iii)(II), it may appeal that determination 
        to the Secretary, who shall respond within 45 days of receiving 
        it.
            ``(vi) As used in this subparagraph--
                    ``(I) the term `large local educational agency' 
                means a local educational agency serving an area with a 
                total population of 20,000 or more; and
                    ``(II) the term `small local educational agency' 
                means a local educational agency serving an area with a 
                total population of less than 20,000.
            ``(3) Allocations to counties.--(A) For any fiscal year to 
        which this paragraph applies, the Secretary shall calculate 
        grants under this section on the basis of the number of 
        children counted under section 1124(c) for counties, and State 
        educational agencies shall suballocate county amounts to local 
        educational agencies, in accordance with regulations 
        promulgated by the Secretary.
            ``(B) In any State in which a large number of local 
        educational agencies overlap county boundaries, or for which 
        the State believes it has data that would better target funds 
        than allocating them by county, the State educational agency 
        may apply to the Secretary for authority to make the 
        allocations under this part for a particular fiscal year 
        directly to local educational agencies without regard to 
        counties.
            ``(C) If the Secretary approves a State's application under 
        subparagraph (B), the State educational agency shall provide 
        the Secretary an assurance that those allocations are made--
                    ``(i) using precisely the same factors for 
                determining a grant as are used under this part; or
                    ``(ii) using data that the State educational agency 
                submits to the Secretary for approval that more 
                accurately target poverty.
            ``(D) The State educational agency shall provide the 
        Secretary an assurance that a procedure is (or will be) 
        established through which local educational agencies that are 
        dissatisfied with its determinations under subparagraph (B) may 
        appeal directly to the Secretary for a final determination.
            ``(4) Puerto rico.--For each fiscal year, the Secretary 
        shall determine the percentage that the average per pupil 
        expenditure in the Commonwealth of Puerto Rico is of the lowest 
        average per pupil expenditure of any of the 50 States. The 
        grant that the Commonwealth of Puerto Rico shall be eligible to 
        receive under this section for a fiscal year shall be the 
        amount arrived at by multiplying the number of children counted 
        under subsection (c) for the Commonwealth of Puerto Rico by the 
        product of--
                    ``(A) the percentage determined under the preceding 
                sentence; and
                    ``(B) 32 percent of the average per pupil 
                expenditure in the United States.
            ``(5) Definition.--For purposes of this subsection, the 
        term `State' does not include an outlying area.
    ``(b) Minimum Number of Children To Qualify.--A local educational 
agency is eligible for a basic  grant under this section for any fiscal 
year only if the number of children counted under subsection (c) for 
that agency is--
            ``(1) 10 or more; and
            ``(2) more than 2 percent of the total school-age 
        population in the agency's jurisdiction.
    ``(c) Children To Be Counted.--
            ``(1) Categories of children.--The number of children to be 
        counted for purposes of this section is the aggregate of--
                    ``(A) the number of children aged 5 to 17, 
                inclusive, in the school district of the local 
                educational agency from families below the poverty 
                level as determined under paragraph (2);
                    ``(B) the number of children aged 5 to 17, 
                inclusive, in the school district of such agency from 
                families above the poverty level as determined under 
                paragraph (4); and
                    ``(C) the number of children (determined under 
                paragraph (4) for either the preceding year as 
                described in that paragraph, or for the second 
                preceding year, as the Secretary finds appropriate) 
                aged 5 to 17, inclusive, in the school district of such 
                agency in institutions for neglected and delinquent 
                children (other than such institutions operated by the 
                United States), but not counted pursuant to subpart 1 
                of part D for the purposes of a grant to a State 
                agency, or being supported in foster homes with public 
                funds.
            ``(2) Determination of number of children.--For the 
        purposes of this section, the Secretary shall determine the 
        number of children aged 5 to 17, inclusive, from families below 
        the poverty level on the basis of the most recent satisfactory 
        data, described in paragraph (3), available from the Department 
        of Commerce. The District of Columbia and the Commonwealth of 
        Puerto Rico shall be treated as individual local educational 
        agencies. If a local educational agency contains 2 or more 
        counties in their entirety, then each county will be treated as 
        if such county were a separate local educational agency for 
        purposes of calculating grants under this part. The total of 
        grants for such counties shall be allocated to such a local 
        educational agency, which local educational agency shall 
        distribute to schools in each county within such agency a share 
        of the local educational agency's total grant that is no less 
        than the county's share of the population counts used to 
        calculate the local educational agency's grant.
            ``(3) Population updates.--In fiscal year 2002 and every 2 
        years thereafter, the Secretary shall use updated data on the 
        number of children, aged 5 to 17, inclusive, from families 
        below the poverty level for counties or local educational 
        agencies, published by the Department of Commerce, unless the 
        Secretary and the Secretary of Commerce determine that use of 
        the updated population data would be inappropriate or 
        unreliable. If the Secretary and the Secretary of Commerce 
        determine that some or all of the data referred to in this 
        paragraph are inappropriate or unreliable, they shall publicly 
        disclose their reasons. In determining the families which are 
        below the poverty level, the Secretary shall utilize the 
        criteria of poverty used by the Bureau of the Census in 
        compiling the most recent decennial census, in such form as 
        those criteria have been updated by increases in the Consumer 
        Price Index for all urban consumers, published by the Bureau of 
        Labor Statistics.
            ``(4) Other children to be counted.--For purposes of this 
        section, the Secretary shall determine the number of children 
        aged 5 to 17, inclusive, from families above the poverty level 
        on the basis of the number of such children from families 
        receiving an annual income, in excess of the current criteria 
        of poverty, from payments under a State program funded under 
        part A of title IV of the Social Security Act, and in making 
        such determinations the Secretary shall utilize the criteria of 
        poverty used by the Bureau of the Census in compiling the most 
        recent decennial census for a family of 4 in such form as those 
        criteria have been updated by increases in the Consumer Price 
        Index for all urban consumers, published by the Bureau of Labor 
        Statistics. The Secretary shall determine the number of 
        children aged 5 through 17 living in institutions for neglected 
        or delinquent children, or being supported in foster homes with 
        public funds, on the basis of the caseload data for the month 
        of October of the preceding fiscal year (using, in the case of 
        children described in the preceding sentence, the criteria of 
        poverty and the form of such criteria required by such sentence 
        which were determined for the calendar year preceding such 
        month of October) or, to the extent that such data are not 
        available to the Secretary before January of the calendar year 
        in which the Secretary's determination is made, then on the 
        basis of the most recent reliable data available to the 
        Secretary at the time of such determination. The Secretary of 
        Health and Human Services shall collect and transmit the 
        information required by this paragraph to the Secretary not 
        later than January 1 of each year. For the purposes of this 
        section, the Secretary shall consider all children who are in 
        correctional institutions to be living in institutions for 
        delinquent children.
            ``(5) Estimate.--When requested by the Secretary, the 
        Secretary of Commerce shall make a special updated estimate of 
        the number of children of such ages who are from families below 
        the poverty level (determined as described in paragraph (1)) in 
        each school district, and the Secretary is authorized to pay 
        (either in advance or by way of reimbursement) the Secretary of 
        Commerce the cost of making this special estimate. The 
        Secretary of Commerce shall give consideration to any request 
        of the chief executive of a State for the collection of 
        additional census information. For purposes of this section, 
        the Secretary shall consider all children who are in 
        correctional institutions to be living in institutions for 
        delinquent children.
    ``(d) State Minimum.--Notwithstanding section 1122, the aggregate 
amount allotted for all local educational agencies within a State may 
not be less than the lesser of--
            ``(1) 0.25 percent of total grants under this section; or
            ``(2) the average of--
                    ``(A) one-quarter of 1 percent of the total amount 
                available for such fiscal year under this section; and
                    ``(B) the number of children in such State counted 
                under subsection (c) in the fiscal year multiplied by 
                150 percent of the national average per pupil payment 
                made with funds available under this section for that 
                year.''.

SEC. 126. CONCENTRATION GRANTS.

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

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

    ``(a) Eligibility for and Amount of Grants.--
            ``(1) In general.--(A) Except as otherwise provided in this 
        paragraph, each local educational agency, in a State other than 
        an outlying area, which is eligible for a grant under section 
        1124 for any fiscal year is eligible for an additional grant 
        under this section for that fiscal year if the number  of 
children counted under section 1124(c) for the agency exceeds either--
                    ``(i) 6,500; or
                    ``(ii) 15 percent of the total number of children 
                aged 5 through 17 in the agency.
            ``(B) Notwithstanding section 1122, no State described in 
        subparagraph (A) shall receive less than the lesser of--
                    ``(i) 0.25 percent of total grants; or
                    ``(ii) the average of--
                            ``(I) one-quarter of 1 percent of the sums 
                        available to carry out this section for such 
                        fiscal year; and
                            ``(II) the greater of--
                                    ``(aa) $340,000; or
                                    ``(bb) the number of children in 
                                such State counted for purposes of this 
                                section in that fiscal year multiplied 
                                by 150 percent of the national average 
                                per pupil payment made with funds 
                                available under this section for that 
                                year.
            ``(2) Special rule.--For each county or local educational 
        agency eligible to receive an additional grant under this 
        section for any fiscal year the Secretary shall determine the 
        product of--
                    ``(A) the number of children counted under section 
                1124(c) for that fiscal year; and
                    ``(B) the amount in section 1124(a)(1)(B) for all 
                States except Puerto Rico, and the amount in section 
                1124(a)(4) for Puerto Rico.
            ``(3) Amount.--The amount of the additional grant for which 
        an eligible local educational agency or county is eligible 
        under this section for any fiscal year shall be an amount which 
        bears the same ratio to the amount available to carry out this 
        section for that fiscal year as the product determined under 
        paragraph (2) for such local educational agency for that fiscal 
        year bears to the sum of such products for all local 
        educational agencies in the United States for that fiscal year.
            ``(4) Local allocations.--(A) Grant amounts under this 
        section shall be determined in accordance with paragraphs (2) 
        and (3) of section 1124(a).
            ``(B) For any fiscal year for which the Secretary allocates 
        funds under this section on the basis of counties, a State may 
        reserve not more than 2 percent of its allocation under this 
        section for any fiscal year to make grants to local educational 
        agencies that meet the criteria of clause (i) or (ii) of 
        paragraph (1)(A) but that are in ineligible counties.
    ``(b) States Receiving Minimum Grants.--In States that receive the 
minimum grant under subsection (a)(1)(B), the State educational agency 
shall allocate such funds among the local educational agencies in each 
State either--
            ``(1) in accordance with paragraphs (2) and (4) of 
        subsection (a); or
            ``(2) based on their respective concentrations and numbers 
        of children counted under section 1124(c), except that only 
        those local educational agencies with concentrations or numbers 
        of children counted under section 1124(c) that exceed the 
        statewide average percentage of such children or the statewide 
        average number of such children shall receive any funds on the 
        basis of this paragraph.''.

SEC. 127. TARGETED GRANTS.

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

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

    ``(a) Eligibility of Local Educational Agencies.--A local 
educational agency in a State is eligible to receive a targeted grant 
under this section for any fiscal year if the number of children in the 
local educational agency counted under section 1124(c), before 
application of the weighting factor described in subsection (c), is at 
least 10, and if the number of children counted for grants under 
section 1124 is at least 5 percent of the total population aged 5 to 17 
years, inclusive, in the local educational agency. Funds made available 
as a result of applying this subsection shall be reallocated by the 
State educational agency to other eligible local educational agencies 
in the State in proportion to the distribution of other funds under 
this section.
    ``(b) Grants for Local Educational Agencies, the District of 
Columbia, and Puerto Rico.--
            ``(1) In general.--The amount of the grant that a local 
        educational agency in a State or that the District of Columbia 
        is eligible to receive under this section for any fiscal year 
        shall be the product of--
                    ``(A) the weighted child count determined under 
                subsection (c); and
                    ``(B) the amount in section 1124(a)(1).
            ``(2) Puerto rico.--For each fiscal year, the amount of the 
        grant for which the Commonwealth of Puerto Rico is eligible 
        under this section shall be equal to the number of children 
        counted under subsection (c) for Puerto Rico, multiplied by the 
        amount determined in section 1124(a)(4).
    ``(c) Weighted Child Count.--
            ``(1) Weights for allocations to counties.--(A) For each 
        fiscal year for which the Secretary uses county population data 
        to calculate grants, the weighted child count used to determine 
        a county's allocation under this section is the larger of the 2 
        amounts determined under clause (i) or (ii), as follows:
                    ``(i) This amount is determined by adding--
                            ``(I) the number of children determined 
                        under section 1124(c) for that county 
                        constituting up to 12.20 percent, inclusive, of 
                        the county's total population aged 5 to 17, 
                        inclusive, multiplied by 1.0;
                            ``(II) the number of such children 
                        constituting more than 12.20 percent, but not 
                        more than 17.70 percent, of such population, 
                        multiplied by 1.75;
                            ``(III) the number of such children 
                        constituting more than 17.70 percent, but not 
                        more than 22.80 percent, of such population, 
                        multiplied by 2.5;
                            ``(IV) the number of such children 
                        constituting more than 22.80 percent, but not 
                        more than 29.70 percent, of such population, 
                        multiplied by 3.25; and
                            ``(V) the number of such children 
                        constituting more than 29.70 percent of such 
                        population, multiplied by 4.0.
                    ``(ii) This amount is determined by adding--
                            ``(I) the number of children determined 
                        under section 1124(c) constituting up to 1,917, 
                        inclusive, of the county's total population 
                        aged 5 to 17, inclusive, multiplied by 1.0;
                            ``(II) the number of such children between 
                        1,918 and 5,938, inclusive, in such population, 
                        multiplied by 1.5;
                            ``(III) the number of such children between 
                        5,939 and 20,199, inclusive, in such 
                        population, multiplied by 2.0;
                            ``(IV) the number of such children between 
                        20,200 and 77,999, inclusive, in such 
                        population, multiplied by 2.5; and
                            ``(V) the number of such children in excess 
                        of 77,999 in such population, multiplied by 
                        3.0.
            ``(B) Notwithstanding subparagraph (A), the weighting 
        factor for Puerto Rico under this paragraph shall not be 
        greater than the total number of children counted under section 
        1124(c) multiplied by 1.72.
            ``(2) Weights for allocations to local educational 
        agencies.--(A) For each fiscal year for which the Secretary 
        uses local educational agency data, the weighted child count 
        used to determine a local educational agency's grant under this 
        section is the larger of the 2 amounts determined under clauses 
        (i) and (ii), as follows:
                    ``(i) This amount is determined by adding--
                            ``(I) the number of children determined 
                        under section 1124(c) for that local 
                        educational agency constituting up to 14.265 
                        percent, inclusive, of the agency's total 
                        population aged 5 to 17, inclusive, multiplied 
                        by 1.0;
                            ``(II) the number of such children 
                        constituting more than 14.265 percent, but not 
                        more than 21.553 percent, of such population, 
                        multiplied by 1.75;
                            ``(III) the number of such children 
                        constituting more than 21.553 percent, but not 
                        more than 29.223 percent, of such population, 
                        multiplied by 2.5;
                            ``(IV) the number of such children 
                        constituting more than 29.223 percent, but not 
                        more than 36.538 percent, of such population, 
                        multiplied by 3.25; and
                            ``(V) the number of such children 
                        constituting more than 36.538 percent of such 
                        population, multiplied by 4.0.
                    ``(ii) This amount is determined by adding--
                            ``(I) the number of children determined 
                        under section 1124(c) constituting up to 575, 
                        inclusive, of the agency's total population 
                        aged 5 to 17, inclusive, multiplied by 1.0;
                            ``(II) the number of such children between 
                        576 and 1,870, inclusive, in such population, 
                        multiplied by 1.5;
                            ``(III) the number of such children between 
                        1,871 and 6,910, inclusive, in such population, 
                        multiplied by 2.0;
                            ``(IV) the number of such children between 
                        6,911 and 42,000, inclusive, in such 
                        population, multiplied by 2.5; and
                            ``(V) the number of such children in excess 
                        of 42,000 in such population, multiplied by 
                        3.0.
            ``(B) Notwithstanding subparagraph (A), the weighting 
        factor for Puerto Rico under this paragraph shall not be 
        greater than the total number of children counted under section 
        1124(c) multiplied by 1.72.
    ``(d) Calculation of Grant Amounts.--Grants under this section 
shall be calculated in accordance with paragraphs (2) and (3) of 
section 1124(a).
    ``(e) State Minimum.--Notwithstanding any other provision of this 
section or section 1122, from the total amount available for any fiscal 
year to carry out this section, each State shall be allotted at least 
the lesser of--
            ``(1) 0.25 percent of total appropriations; or
            ``(2) the average of--
                    ``(A) one-quarter of 1 percent of the total amount 
                available to carry out this section; and
                    ``(B) 150 percent of the national average grant 
                under this section per child described in section 
                1124(c), without application of a weighting factor, 
                multiplied by the State's total number of children 
                described in section 1124(c), without application of a 
                weighting factor.''.

SEC. 128. EDUCATION FINANCE INCENTIVE PROGRAM.

    Section 1125A (20 U.S.C. 6336) is amended to read as follows:

``SEC. 1125A. EDUCATION FINANCE INCENTIVE PROGRAM.

    ``(a) Grants.--The Secretary is authorized to make grants to States 
from the sums appropriated pursuant to subsection (e) to carry out the 
purposes of this part.
    ``(b) Distribution Based Upon Fiscal Effort and Equity.--
            ``(1) In general.--Funds appropriated pursuant to 
        subsection (e) shall be allotted to each State based upon the 
        number of children aged 5 to 17, inclusive, of such State 
        multiplied by the product of--
                    ``(A) such State's effort factor described in 
                paragraph (2); multiplied by
                    ``(B) 1.30 minus such State's equity factor 
                described in paragraph (3), except that for each fiscal 
                year no State shall receive less than \1/4\ of  1 
percent of the total amount appropriated pursuant to subsection (e) for 
such fiscal year.
            ``(2) Effort factor.--(A) Except as provided in 
        subparagraph (B), the effort factor for a State shall be 
        determined in accordance with the succeeding sentence, except 
        that such factor shall not be less than .95 nor greater than 
        1.05. The effort factor determined under this sentence shall be 
        a fraction the numerator of which is the product of the 3-year 
        average per-pupil expenditure in the State multiplied by the 3-
        year average per capita income in the United States and the 
        denominator of which is the product of the 3-year average per 
        capita income in such State multiplied by the 3-year average 
        per-pupil expenditure in the United States.
            ``(B) The effort factor for the Commonwealth of Puerto Rico 
        shall be equal to the lowest effort factor calculated under 
        subparagraph (A) for any State.
            ``(3) Equity factor.--(A)(i) Except as provided in 
        subparagraph (B), the Secretary shall determine the equity 
        factor under this section for each State in accordance with 
        clause (ii).
            ``(ii)(I) For each State, the Secretary shall compute a 
        weighted coefficient of variation for the per-pupil 
        expenditures of local educational agencies in accordance with 
        subclauses (II), (III), (IV), and (V).
            ``(II) In computing coefficients of variation, the 
        Secretary shall weigh the variation between per-pupil 
        expenditures in each local educational agency and the average 
        per-pupil expenditures in the State according to the number of 
        pupils in the local educational agency.
            ``(III) In determining the number of pupils under this 
        paragraph in each local educational agency and each State, the 
        Secretary shall multiply the number of children from 
        economically disadvantaged families by 1.4 under this 
        paragraph.
            ``(IV) In computing coefficients of variation, the 
        Secretary shall include only those local educational agencies 
        with an enrollment of more than 200 students.
            ``(V) The Secretary shall compute separate coefficients of 
        variation for elementary, secondary, and unified local 
        educational agencies and shall combine such coefficients into a 
        single weighted average coefficient for the State by 
        multiplying each coefficient by the total enrollments of the 
        local educational agencies in each group, adding such products, 
        and dividing such sum by the total enrollments of the local 
        educational agencies in the State.
            ``(B) The equity factor for a State that meets the 
        disparity standard described in section 222.63 of title 34, 
        Code of Federal Regulations (as such section was in effect on 
        the day preceding the date of enactment of the Public Education 
        Reinvestment, Reinvention, and Responsibility Act) or a State 
        with only 1 local educational agency shall be not greater than 
        0.10.
            ``(C) The Secretary may revise each State's equity factor 
        as necessary based on the advice of independent education 
        finance scholars to reflect other need-based costs of local 
        educational agencies in addition to economically disadvantaged 
        student enrollment, such as differing geographic costs, costs 
        associated with students with disabilities, children with 
        limited English proficiency or other meaningful educational 
        needs, which deserve additional support. In addition and also 
        with the advice of independent education finance scholars, the 
        Secretary may revise each State's equity factor to incorporate 
        other valid and accepted methods to achieve adequacy of 
        educational opportunity that may not be reflected in a 
        coefficient of variation method.
    ``(c) Use of Funds.--All funds awarded to each State under this 
section shall be allocated to local educational agencies and schools on 
a basis consistent with the distribution of other funds to such 
agencies and schools under sections 1124, 1124A, and 1125 to carry out 
activities under this part.
    ``(d) Maintenance of Effort.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        State is entitled to receive its full allotment of funds under 
        this part for any fiscal year only if the Secretary finds that 
        either the combined fiscal effort per student or the aggregate 
        expenditures within the State with respect to the provision of 
        free public education for the fiscal year preceding the fiscal 
        year for which the determination is made was not less than 90 
        percent of such combined fiscal effort or aggregate 
        expenditures for the second fiscal year preceding the fiscal 
        year for which the determination is made.
            ``(2) Reduction of funds.--The Secretary shall reduce the 
        amount of the funds awarded to any State under this section in 
        any fiscal year in the exact proportion to which the State 
        fails to meet the requirements of paragraph (1) by falling 
        below 90 percent of both the fiscal effort per student and 
        aggregate expenditures (using the measure most favorable to the 
        State), and no such lesser amount shall be used for computing 
        the effort required under paragraph (1) for subsequent years.
            ``(3) Waivers.--The Secretary may waive, for 1 fiscal year 
        only, the requirements of paragraphs (1) and (2) if the 
        Secretary determines that such a waiver would be equitable due 
        to exceptional or uncontrollable circumstances such as a 
        natural disaster or a precipitous and unforeseen decline in the 
        financial resources of the State.
    ``(e) Authorization of Appropriations.--For the purpose of making 
grants under this section, there are authorized to be appropriated 
$200,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of the 3 succeeding fiscal years.''.

SEC. 129. SPECIAL ALLOCATION PROCEDURES.

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

``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

    ``(a) Allocations for Neglected Children.--
            ``(1) In general.--If a State educational agency determines 
        that a local educational agency in the State is unable or 
        unwilling to provide for the special educational needs of 
        children who are living  in institutions for neglected or 
delinquent children as described in section 1124(c)(1)(C), the State 
educational agency shall, if such agency assumes responsibility for the 
special educational needs of such children, receive the portion of such 
local educational agency's allocation under sections 1124, 1124A, and 
1125 that is attributable to such children.
            ``(2) Special rule.--If the State educational agency does 
        not assume such responsibility, any other State or local public 
        agency that does assume such responsibility shall receive that 
        portion of the local educational agency's allocation.
    ``(b) Allocations Among Local Educational Agencies.--The State 
educational agency may allocate the amounts of grants under sections 
1124, 1124A, and 1125 among the affected local educational agencies--
            ``(1) if 2 or more local educational agencies serve, in 
        whole or in part, the same geographical area;
            ``(2) if a local educational agency provides free public 
        education for children who reside in the school district of 
        another local educational agency; or
            ``(3) to reflect the merger, creation, or change of 
        boundaries of 1 or more local educational agencies.
    ``(c) Reallocation.--If a State educational agency determines that 
the amount of a grant that a local educational agency would receive 
under sections 1124, 1124A, and 1125 is more than such local agency 
will use, the State educational agency shall make the excess amount 
available to other local educational agencies in the State that need 
additional funds in accordance with criteria established by the State 
educational agency.''.

            Subtitle B--Even Start Family Literacy Programs

SEC. 131. PROGRAM AUTHORIZED.

    Section 1202(c) (20 U.S.C. 6362(c)) is amended--
            (1) in paragraph (1), by striking ``subsection and for 
        which'' and all that follows through ``, whichever is less, to 
        award grants,'' and inserting ``subsection, from funds reserved 
        under section 7104(b), the Secretary shall award grants,'';
            (2) by striking paragraph (2)(C); and
            (3) in paragraph (3)--
                    (A) by striking ``is defined'' and inserting ``was 
                defined''; and
                    (B) by inserting ``as such section was in effect on 
                the day preceding the date of enactment of the Public 
                Education Reinvestment, Reinvention, and Responsibility 
                Act'' after ``2252''.

SEC. 132. APPLICATIONS.

    Section 1207(c)(1)(F) (20 U.S.C. 6367(c)(1)(F)) is amended by 
striking ``14306'' and inserting ``8305''.

SEC. 133. RESEARCH.

    Section 1211(c) (20 U.S.C. 6396b(c)) is amended to read as follows:
    ``(c) Dissemination.--The Secretary shall disseminate, or designate 
another entity to disseminate, the results of the research described in 
subsection (a) to States and recipients of subgrants under this 
part.''.

              Subtitle C--Education of Migratory Children

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

    Section 1306(a)(1) (20 U.S.C. 6369(a)(1)) is amended--
            (1) in subparagraph (A), by striking ``, the Goals 2000'' 
        and all that follows through the semicolon and inserting ``or 
        other Acts, as appropriate, consistent with section 8306;'';
            (2) in subparagraph (B), by striking ``section 14302'' and 
        inserting ``section 8302''; and
            (3) in subparagraph (F), by striking ``bilingual 
        education'' and all that follows and inserting ``language 
        instruction programs under title III; and''.

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

SEC. 151. STATE PLAN AND STATE AGENCY APPLICATIONS.

    Section 1414 (20 U.S.C. 6434) is amended--
            (1) in subsection (a)(1), by striking ``, the Goals 2000'' 
        and all that follows through the period and inserting ``or 
        other Acts, as appropriate, consistent with section 8305.''; 
        and
            (2) in subsection (c)--
                    (A) in paragraph (6), by striking ``section 14701'' 
                and inserting ``section 8701''; and
                    (B) in paragraph (7), by striking ``section 14501'' 
                and inserting ``section 8501''.

SEC. 152. USE OF FUNDS.

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

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

SEC. 161. EVALUATIONS.

    Section 1501 (20 U.S.C. 6491) is amended--
            (1) in subsection (a)(4)--
                    (A) by striking ``January 1, 1996'' and inserting 
                ``January 1, 2003''; and
                    (B) by striking ``January 1, 1999'' and inserting 
                ``January 1, 2006'';
            (2) in subsection (b)(1), by striking ``December 31, 1997'' 
        and inserting ``December 31, 2004''; and
            (3) in subsection (e)(2), by striking ``December 31, 1996'' 
        and inserting ``December 31, 2003''.

SEC. 162. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

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

``SEC. 1502. COMPREHENSIVE SCHOOL REFORM.

    ``(a) Findings and Purpose.--
            ``(1) Findings.--Congress finds the following:
                    ``(A) A number of schools across the country have 
                shown impressive gains in student performance through 
                the use of comprehensive models for schoolwide change 
                that incorporate virtually all aspects of school 
                operations.
                    ``(B) No single comprehensive school reform model 
                may be suitable for every school. Schools should be 
                encouraged to examine successful, externally developed 
                comprehensive school reform approaches as the schools 
                undertake comprehensive school reform.
                    ``(C) Comprehensive school reform is an important 
                means by which children are assisted in meeting 
                challenging State student performance standards.
            ``(2) Purpose.--The purpose of this section is to provide 
        financial incentives for schools to develop comprehensive 
        school reforms, based upon scientifically based research and 
        effective practices that include an emphasis on basic academics 
        and parental involvement so that all children can meet 
        challenging State content and performance standards.
    ``(b) Grants to States.--
            ``(1) In general.--The Secretary is authorized to provide 
        grants to State educational agencies from allotments under 
        paragraph (2) to provide subgrants  to local educational 
agencies to carry out the purpose described in subsection (a)(2).
            ``(2) Allotment.--
                    ``(A) Reservation.--Of the amount made available 
                under subsection (f) for a fiscal year, the Secretary 
                may reserve--
                            ``(i) not more than 1 percent for--
                                    ``(I) payments to the Bureau of 
                                Indian Affairs for activities, approved 
                                by the Secretary, consistent with this 
                                section; and
                                    ``(II) payments to outlying areas, 
                                to be allotted in accordance with their 
                                respective needs for assistance under 
                                this section as determined by the 
                                Secretary, for activities, approved by 
                                the Secretary, consistent with this 
                                section; and
                            ``(ii) not more than 1 percent to conduct 
                        national evaluation activities described in 
                        subsection (d).
                    ``(B) In general.--Of the amount made available 
                under subsection (f) for a fiscal year and remaining 
                after the reservation under subparagraph (A), the 
                Secretary shall allot to each State an amount that 
                bears the same ratio to the remainder as the amount 
                made available under section 1124 to the State for the 
                preceding fiscal year bears to the total amount made 
                available under section 1124 to all States for that 
                year.
                    ``(C) Reallotment.--If a State chooses not to apply 
                for funds under this section, or fails to submit an 
                approvable application under paragraph (3), the 
                Secretary shall reallot the funds that such State would 
                have received under subparagraph (B) to States having 
                applications approved under paragraph (3), in 
                accordance with subparagraph (B).
            ``(3) State application.--
                    ``(A) In general.--Each State educational agency 
                that desires to receive a grant under this section 
                shall submit an application to the Secretary at such 
                time, in such manner and containing such other 
                information as the Secretary may reasonably require.
                    ``(B) Contents.--Each State application shall 
                describe--
                            ``(i) the process and selection criteria 
                        with which the State educational agency, after 
                        using expert review, will select local 
                        educational agencies to receive subgrants under 
                        this section;
                            ``(ii) how the agency will ensure that only 
                        comprehensive school reforms that are based on 
                        scientifically based research will receive 
                        funds under this section;
                            ``(iii) how the agency will disseminate 
                        materials regarding information on 
                        comprehensive school reforms that are based on 
                        scientifically based research;
                            ``(iv) how the agency will evaluate the 
                        implementation of such reforms and measure the 
                        extent to which the reforms resulted in 
                        increased student academic performance; and
                            ``(v) how the agency will provide, upon 
                        request, technical assistance to a local 
                        educational agency in evaluating, developing, 
                        and implementing comprehensive school reform.
            ``(4) Reporting.--Each State educational agency that 
        receives a grant under this section shall provide to the 
        Secretary such information as the Secretary may require, 
        including the names of local educational agencies and schools 
        selected to receive grants under this section, the amount of 
        such grants, and a description of the comprehensive school 
        reform model selected and used for the schools.
            ``(5) Administrative costs.--A State educational agency 
        that receives a grant under this section may reserve not more 
        than 5 percent of the funds made available through the grant 
        for administrative, evaluation, and technical assistance 
        expenses.
    ``(c) Grants to Local Educational Agencies.--
            ``(1) Grants.--
                    ``(A) In general.--Except as provided in subsection 
                (b)(5), a State educational agency that receives a 
                grant under this section shall use the grant funds to 
                provide grants, on a competitive basis, to local 
                educational agencies receiving funds under part A.
                    ``(B) Grant requirements.--A grant to a local 
                educational agency shall be--
                            ``(i) of sufficient size and scope to pay 
                        for the initial costs for the particular 
                        comprehensive school reform plan selected or 
                        designed by each school identified in the 
                        application of the local educational agency;
                            ``(ii) in an amount of not less than 
                        $50,000 for each participating school; and
                            ``(iii) made for an initial period of 1 
                        year, and shall be renewable for 2 additional 
                        1-year periods if the participating schools are 
                        making substantial progress in the 
                        implementation of their reforms.
            ``(2) Local applications.--
                    ``(A) In general.--To be eligible to receive a 
                grant under this section, a local educational agency 
                shall submit an application to the State educational 
                agency at such time, in such manner, and containing 
                such information as the agency may require.
                    ``(B) Contents.--At a minimum, the local 
                application shall--
                            ``(i) identify which schools that are 
                        served by the local educational agency and 
                        eligible for funds under part A plan to 
                        implement a comprehensive school reform 
                        program, and identify the projected costs of 
                        such a program;
                            ``(ii) describe the scientifically based 
                        comprehensive school reforms that such schools 
                        will implement;
                            ``(iii) describe how the agency will 
                        provide technical assistance and support for 
                        the effective implementation of the 
                        scientifically based school reforms selected by 
                        such schools; and
                            ``(iv) describe how the agency will 
                        evaluate the implementation of such reforms and 
                        measure the results achieved in improving 
                        student academic performance.
            ``(3) Components of the program.--A local educational 
        agency that receives a grant under this section shall provide 
        grant funds to schools that, individually, implement a 
        comprehensive school reform program that--
                    ``(A) employs innovative strategies and proven 
                methods for student learning, teaching, and school 
                management that are based on scientifically based 
                research and effective practices and have been 
                replicated successfully in schools with diverse 
                characteristics;
                    ``(B) uses 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 that addresses needs 
                identified through a school needs assessment;
                    ``(C) provides high quality and continuous teacher 
                and staff professional development;
                    ``(D) includes measurable goals for student 
                performance and benchmarks for meeting such goals;
                    ``(E) is supported by teachers, principals, 
                administrators, and other professional staff;
                    ``(F) provides for the meaningful involvement of 
                parents and the local community in planning and 
                implementing school improvement activities;
                    ``(G) uses high quality external technical support 
                and assistance from an entity, which may be an 
                institution of higher education, with experience and 
                expertise in schoolwide reform and improvement;
                    ``(H) includes a plan for the evaluation of the 
                implementation of school reforms and the student 
                results achieved; and
                    ``(I) identifies how other resources, including 
                Federal, State, local, and private resources, available 
                to the school will be used to coordinate services to 
                support and sustain the school reform effort.
            ``(4) Priority and consideration.--
                    ``(A) Priority.--The State educational agency, in 
                awarding grants under paragraph (1), shall give 
                priority to local educational agencies that--
                            ``(i) plan to use the grant funds in 
                        schools identified for school improvement or 
                        corrective action under section 1116(c); and
                            ``(ii) demonstrate a commitment to assist 
                        schools with budget allocation, professional 
                        development, and other strategies necessary to 
                        ensure the comprehensive school reforms are 
                        properly implemented and are sustained in the 
                        future.
                    ``(B) Grant consideration.--In making grants under 
                this section, the State educational agency shall take 
                into account the need for equitable distribution of 
                funds to different geographic regions within the State, 
                including urban and rural areas, and to elementary 
                schools and secondary schools.
            ``(5) Special rule.--A school that receives funds under 
        this section to develop a comprehensive school reform program 
        shall not be limited to using the approaches identified or 
        developed by the Department of Education, but may develop 
        comprehensive school reform programs for schoolwide change that 
        comply with paragraph (3).
    ``(d) Evaluation and Report.--
            ``(1) In general.--The Secretary shall develop and carry 
        out a plan for a national evaluation of the programs developed 
        pursuant to this section.
            ``(2) Evaluation.--The national evaluation shall evaluate 
        the implementation of the programs and the results achieved by 
        schools after 1 year and 3 years of implementing comprehensive 
        school reforms through the programs, and assess the 
        effectiveness of comprehensive school reforms in schools with 
        diverse characteristics.
            ``(3) Reports.--
                    ``(A) Interim report.--After evaluating the first 
                year of implementation and results under paragraph (2), 
                the Secretary shall submit an interim report outlining 
                first year implementation activities to the Committees 
                on Education and the Workforce and Appropriations of 
                the House of Representatives and the Committees on 
                Health, Education, Labor, and Pensions and 
                Appropriations of the Senate.
                    ``(B) Final report.--After evaluating the third 
                year of implementation and results under paragraph (2), 
                the Secretary shall submit a final report outlining 
                third year implementation activities to the committees 
                described in subparagraph (A).
    ``(e) Supplement.--Funds made available under this section shall be 
used to supplement and not supplant other Federal, State, and local 
public funds expended for activities described in this section.
    ``(f) Authorization of Appropriations.--Funds appropriated for any 
fiscal year under section 1002(f) shall be used for carrying out the 
activities under this section.
    ``(g) Definition.--The term `scientifically based research'--
            ``(1) means the application of rigorous, systematic, and 
        objective procedures in the development of comprehensive school 
        reform models; and
            ``(2) shall include research that--
                    ``(A) employs systematic, empirical methods that 
                draw on observation or experiment;
                    ``(B) involves rigorous data analyses that are 
                adequate to test stated hypotheses and justify the 
                general conclusions drawn;
                    ``(C) relies on measurements or observational 
                methods that provide valid data across evaluators and 
                observers and across multiple measurements and 
                observations; and
                    ``(D) has been accepted by a journal that uses peer 
                review or approved by a panel of independent experts 
                through a comparably rigorous, objective, and 
                scientific review.''.

           Subtitle F--Rural Education Development Initiative

SEC. 171. RURAL EDUCATION DEVELOPMENT INITIATIVE.

    Title I (20 U.S.C. 6301 et seq.) is amended--
            (1) by redesignating part F (20 U.S.C. 6511 et seq.) as 
        part G and redesignating accordingly the references to such 
        part F;
            (2) by redesignating sections 1601 through 1604 (20 U.S.C. 
        6511, 6514) as sections 1701 through 1704, respectively, and by 
        redesignating accordingly the references to such sections 1601 
        through 1604; and
            (3) by inserting after part E (20 U.S.C. 6491 et seq.) the 
        following:

                  ``PART F--RURAL EDUCATION INITIATIVE

``SEC. 1601. SHORT TITLE.

    ``This part may be cited as the `Rural Education Achievement 
Program'.

``SEC. 1602. PURPOSE.

    ``It is the purpose of this part to address the unique needs of 
rural school districts that frequently--
            ``(1) lack the personnel and resources needed to compete 
        for Federal competitive grants; and
            ``(2) receive formula allocations in amounts too small to 
        be effective in meeting their intended purposes.

``SEC. 1603. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this part $300,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 4 succeeding fiscal years, of which 50 
percent shall be available to carry out subpart 1 for each such fiscal 
year and 50 percent shall be available to carry out subpart 2 for each 
such fiscal year.
    ``(b) Special Rule.--Notwithstanding subsection (a), if the amount 
of funds made available under subsection (a) to carry out subpart 1 for 
any fiscal year exceeds the amount required to carry out subpart 1 for 
the fiscal year, then such excess shall be available to carry out 
subpart 2 for the fiscal year.

          ``Subpart 1--Small, Rural School Achievement Program

``SEC. 1611. FORMULA GRANT PROGRAMS.

    ``(a) Alternative Uses.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, an eligible local educational agency may use the 
        applicable funding, that the agency is eligible to receive from 
        the State educational agency for a fiscal year, to carry out 
        activities described in section 1114, 1115, 1116, 2207, 3107, 
        or 6006.
            ``(2) Notification.--An eligible local educational agency 
        shall notify the State educational agency of the local 
        educational agency's intention to use the applicable funding in 
        accordance with paragraph (1) not later than a date that is 
        established by the State educational agency for the 
        notification.
    ``(b) Eligibility.--A local educational agency shall be eligible to 
use the applicable funding in accordance with subsection (a) if--
            ``(1) the total number of students in average daily 
        attendance at all of the schools served by the local 
        educational agency is less than 600; and
            ``(2) all of the schools served by the local educational 
        agency are designated with a School Locale Code of 7 or 8, as 
        determined by the Secretary of Education.
    ``(c) Applicable Funding.--In this section, the term `applicable 
funding' means funds provided under each of titles II, III, and VI.
    ``(d) Disbursal.--Each State educational agency that receives 
applicable funding for a fiscal year shall disburse the applicable 
funding to local educational agencies for alternative uses under this 
section for the fiscal year at the same time that the State educational 
agency disburses the applicable funding to local educational agencies 
that do not intend to use the applicable funding for such alternative 
uses for the fiscal year.
    ``(e) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement and not supplant any other Federal, 
State, or local education funds.
    ``(f) Special Rule.--References in Federal law to funds for the 
provisions of law set forth in subsection (c) may be considered to be 
references to funds for this section.
    ``(g) Cooperative Arrangements.--Nothing in this subpart shall be 
construed to prohibit a local educational agency that enters into 
cooperative arrangements with other local educational agencies for the 
provision of special, compensatory, or other education services 
pursuant to State law or a written agreement from entering into similar 
arrangements for the use or the coordination of the use of the funds 
made available under this section.

``SEC. 1612. FORMULA GRANT PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to award grants to 
eligible local educational agencies to enable the local educational 
agencies to carry out activities described in section 1114, 1115, 1116, 
2207, 3107, or 6006.
    ``(b) Eligibility.--A local educational agency shall be eligible to 
receive a grant under this section if--
            ``(1) the total number of students in average daily 
        attendance at all of the schools served by the local 
        educational agency is less than 600; and
            ``(2) all of the schools served by the local educational 
        agency are designated with a School Locale Code of 7 or 8, as 
        determined by the Secretary of Education.
    ``(c) Amount.--
            ``(1) In general.--The Secretary shall award a grant to a 
        local educational agency under this section for a fiscal year 
        in an amount equal to the amount determined under paragraph (2) 
        for the fiscal year minus the total amount received by the 
        local educational agency for the preceding fiscal year under 
        the provisions of law described in section 1611(c).
            ``(2) Determination.--The amount referred to in paragraph 
        (1) is equal to $100 multiplied by the total number of students 
        in excess of 50 students that are in average daily attendance 
        at the schools served by the local educational agency, plus 
        $20,000, except that the amount may not exceed $60,000.
            ``(3) Census determination.--
                    ``(A) In general.--Each local educational agency 
                desiring a grant under this section shall conduct a 
                census not later than December 1 of each year to 
                determine the number of kindergarten through grade 12 
                students in average daily attendance at the schools 
                served by the local educational agency.
                    ``(B) Submission.--Each local educational agency 
                shall submit the number described in subparagraph (A) 
                to the Secretary not later than March 1 of each year.
            ``(4) Penalty.--If the Secretary determines that a local 
        educational agency has knowingly submitted false information 
        under paragraph (3) for the purpose of gaining additional funds 
        under this section, then the local educational agency shall be 
        fined an amount equal to twice the difference between the 
        amount the local educational agency received under this 
        section, and the correct amount the local educational agency 
        would have received under this section if the agency had 
        submitted accurate information under paragraph (3).
    ``(d) Disbursal.--The Secretary shall disburse the funds awarded to 
a local educational agency under this section for a fiscal year not 
later than July 1 of that year.
    ``(e) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement and not supplant any other Federal, 
State, or local education funds.
    ``(f) Construction.--Nothing in this subpart shall be construed to 
prohibit a local educational agency that enters into cooperative 
arrangements with other local educational agencies for the provision of 
special, compensatory, or other education services pursuant to State 
law or a written agreement from entering into similar arrangements for 
the use or the coordination of the use of the funds made available 
under this section.

``SEC. 1613. APPLICATIONS.

    ``(a) In General.--Each eligible local educational agency desiring 
to use funds for alternative uses under section 1611 or desiring a 
grant under section 1612 annually shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may require.
    ``(b) Contents.--Each application submitted under subsection (a) 
shall--
            ``(1) describe the activities for which funds made 
        available under this subpart will be used to raise student 
        academic performance;
            ``(2) specify annual, measurable performance goals and 
        objectives, at a minimum, for the activities assisted under 
        this subpart with respect to--
                    ``(A) increased student academic achievement;
                    ``(B) decreased gaps in achievement between 
                minority and nonminority students, and between 
                economically disadvantaged and non-economically 
                disadvantaged students (unless the Secretary determines 
                the number of students in a category is insufficient to 
                yield statistically reliable information); and
                    ``(C) other factors that the eligible local 
                educational agency may choose to measure; and
            ``(3) specify the extent to which such goals are aligned 
        with State content and student performance standards;
            ``(4) describe how the eligible local educational agency 
        will--
                    ``(A) measure the annual impact of activities 
                described in paragraph (1) and the extent to which the 
                activities will increase student academic performance; 
                and
                    ``(B) hold elementary schools or secondary schools 
                using or receiving funds under this subpart accountable 
                for meeting the annual, measurable goals and 
                objectives;
            ``(5) describe how the eligible local educational agency 
        will provide technical assistance for an elementary school or 
        secondary school that does not meet the annual, measurable 
        goals and objectives;
            ``(6) describe how the eligible local educational agency 
        will take action against an elementary school or secondary 
        school, if the school fails, over 2 consecutive years, to meet 
        the annual, measurable goals and objectives; and
            ``(7) in the case that the application describes 
        alternative uses for funds under title II or III, specify how 
        the eligible local educational agency shall use the funds to 
        meet the annual numerical performance objectives described in 
        section 2104 or 3109, respectively.

``SEC. 1614. ACCOUNTABILITY.

    ``The Secretary, at the end of the third year that an eligible 
local educational agency uses funds in accordance with section 1611 or 
receives grant funds under section 1612, shall permit only those 
eligible local educational agencies that meet their annual, measurable 
goals and objectives described in section 1613(b)(2) and their 
performance objectives described in section 2104 and 3109 for 2 
consecutive years to continue to so use funds or receive grant funds 
for the fourth or fifth fiscal years of participation in the program 
under this subpart.

``SEC. 1615. RATABLE REDUCTIONS IN CASE OF INSUFFICIENT APPROPRIATIONS.

    ``(a) In General.--If the amount appropriated for any fiscal year 
and made available for grants under section 1612 is insufficient to pay 
the full amount for which all agencies are eligible under this subpart, 
the Secretary shall ratably reduce each such amount.
    ``(b) Additional Amounts.--If additional funds become available for 
making payments under paragraph (1) for such fiscal year, payments that 
were reduced under subsection (a) shall be increased on the same basis 
as such payments were reduced.

``SEC. 1616. REPORTS.

    ``(a) Reports From Eligible Local Educational Agencies.--Each 
eligible local educational agency making alternative use of funds under 
section 1611 or receiving a grant under section 1612 shall provide an 
annual report to the Secretary. The report shall describe--
            ``(1) how the agency used the funds made available under 
        this subpart;
            ``(2) the degree to which progress has been made toward 
        meeting the annual, measurable goals and objectives described 
        in the agency's application; and
            ``(3) how the agency coordinated funds received under this 
        subpart with other Federal, State, and local funds.
    ``(b) Report to Congress.--The Secretary shall prepare and submit 
to Congress an annual report setting forth the information provided to 
the Secretary pursuant to subsection (a).

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

``SEC. 1621. DEFINITIONS.

    ``In this subpart:
            ``(1) Poverty line.--The term `poverty line' means the 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 9902(2))) 
        applicable to a family of the size involved.
            ``(2) Specially qualified agency.--The term `specially 
        qualified agency' means an eligible local educational agency, 
        located in a State that does not participate in a program 
        carried out under this subpart for a fiscal year, that applies 
        directly to the Secretary for a grant for such year in 
        accordance with section 1622(b).

``SEC. 1622. PROGRAM AUTHORIZED.

    ``(a) Grants to States.--
            ``(1) In general.--From the sum appropriated under section 
        1603 for a fiscal year and made available to carry out this 
        subpart, the Secretary shall award grants, from allotments made 
        under paragraph (2), to State educational agencies that have 
        applications approved under section 1624 to enable the State 
        educational agencies to award grants to eligible local 
        educational agencies for activities described in section 1114, 
        1115, 1116, 2207, 3107, or 6006.
            ``(2) Allotment.--From the sum appropriated under section 
        1603 for a fiscal year and made available to carry out this 
        subpart, the Secretary shall allot to each State educational 
        agency an amount that bears the same ratio to the sum as the 
        number of students in average daily attendance at the schools 
        served by eligible local educational agencies in the State for 
        that fiscal year bears to the number of all such students at 
        the schools served by eligible local educational agencies in 
        all States for that fiscal year.
    ``(b) Direct Grants to Specially Qualified Agencies.--
            ``(1) Nonparticipating state.--If a State educational 
        agency elects not to participate in the program carried out 
        under this subpart or does not have an application approved 
        under section 1624, a specially qualified agency in such State 
        desiring a grant under this subpart may apply directly to the 
        Secretary under section 1624 to receive a grant under this 
        subpart.
            ``(2) Direct awards to specially qualified agencies.--The 
        Secretary may award, on a competitive basis, the amount the 
        State educational agency is eligible to receive under 
        subsection (a)(2) directly to specially qualified agencies in 
        the State.
    ``(c) Administrative Costs.--A State educational agency that 
receives a grant under this subpart may not use more than 2 percent of 
the amount of the grant funds for State administrative costs.

``SEC. 1623. STATE DISTRIBUTION OF FUNDS.

    ``(a) In General.--A State educational agency that receives a grant 
under this subpart shall use the funds made available through the grant 
to award grants to eligible local educational agencies to enable the 
local educational agencies to carry out activities described in section 
1114, 1115, 1116, 2207, 3107, or 6006.
    ``(b) Local Awards.--A local educational agency shall be eligible 
to receive a grant under this subpart if--
            ``(1) 20 percent or more of the children age 5 through 17 
        that are served by the local educational agency are from 
        families with incomes below the poverty line; and
            ``(2) all of the schools served by the local educational 
        agency are located in a community with a Rural-Urban Continuum 
        Code of 6, 7, 8, or 9, as determined by the Secretary of 
        Agriculture.
    ``(c) Award Basis.--The State educational agency shall award the 
grants to eligible local educational agencies--
            ``(1) according to a formula based on the number of 
        students in average daily attendance at schools served by the 
        eligible local educational agencies; or
            ``(2) on a competitive basis if distribution by formula is 
        impracticable as determined by the State educational agency.

``SEC. 1624. APPLICATIONS.

    ``(a) In General.--Each State educational agency desiring a grant 
under section 1622(a) and each specially qualified agency desiring a 
grant under section 1622(b) shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may require.
    ``(b) Contents.--Each application submitted under subsection (a) 
shall--
            ``(1) specify annual, measurable performance goals and 
        objectives for the activities assisted under this subpart, at a 
        minimum, with respect to--
                    ``(A) increased student academic achievement;
                    ``(B) decreased gaps in achievement between 
                minority and non-minority students, and between 
                economically disadvantaged and non-economically 
                disadvantaged students (unless the Secretary determines 
                the number of students in a category is insufficient to 
                yield statistically reliable information); and
                    ``(C) other factors that the State educational 
                agency or eligible local educational agency may choose 
                to measure;
            ``(2) describe how the State educational agency or 
        specially qualified agency will hold local educational agencies 
        and elementary schools or secondary schools receiving funds 
        under this subpart accountable for meeting the annual, 
        measurable goals and objectives;
            ``(3) describe how the State educational agency or 
        specially qualified agency will provide technical assistance 
        for a local educational agency, an elementary school, or a 
        secondary school that does not meet the annual, measurable 
        goals and objectives; and
            ``(4) describe how the State educational agency or 
        specially qualified agency will take action against a local 
        educational agency, an elementary school, or a secondary 
        school, if the local educational agency or school fails, over 2 
        consecutive years, to meet the annual, measurable goals and 
        objectives.

``SEC. 1625. USES OF FUNDS.

    ``Grant funds awarded to eligible local educational agencies under 
this subpart shall be used for--
            ``(1) educational technology activities;
            ``(2) high quality professional development for teachers 
        and principals;
            ``(3) technical assistance;
            ``(4) recruitment and retention of fully qualified 
        teachers, as defined in section 2002, and highly qualified 
        principals;
            ``(5) parental involvement activities; or
            ``(6) other programs or activities that--
                    ``(A) seek to raise the academic achievement levels 
                of all elementary school and secondary school students; 
                and
                    ``(B) are based on State content and student 
                performance standards.

``SEC. 1626. ACCOUNTABILITY.

    ``The Secretary, at the end of the third year that a State 
educational agency or specially qualified agency receives grant funds 
under this subpart, shall permit only those State educational agencies 
and specially qualified agencies that meet their annual, measurable 
goals and objectives for 2 consecutive years to continue to receive 
grant funds for the fourth or fifth fiscal years of the program under 
this subpart.

``SEC. 1627. REPORTS AND STUDY.

    ``(a) State Reports.--Each State educational agency that receives a 
grant under this subpart shall provide an annual report to the 
Secretary. The report shall describe--
            ``(1) the method the State educational agency used to award 
        grants to eligible local educational agencies and to provide 
        assistance to elementary schools and secondary schools under 
        this subpart;
            ``(2) how eligible local educational agencies, elementary 
        schools, and secondary schools within the State used the grant 
        funds provided under this subpart; and
            ``(3) the degree to which progress has been made toward 
        meeting the annual, measurable goals and objectives described 
        in the State application.
    ``(b) Reports From Eligible Local Educational Agencies.--Each 
eligible local educational agency receiving a grant under this subpart 
shall provide an annual report to the Secretary. Such report shall 
describe--
            ``(1) how the agency used the grant funds;
            ``(2) the degree to which progress has been made toward 
        meeting the annual, measurable goals and objectives described 
        in the agency's application; and
            ``(3) how the agency coordinated funds received under this 
        subpart with other Federal, State, and local funds.
    ``(c) Report to Congress.--The Secretary shall prepare and submit 
to Congress an annual report setting forth the information provided to 
the Secretary pursuant to subsections (a) and (b).
    ``(d) Study.--The Comptroller General of the United States shall 
conduct a study regarding the impact of assistance provided under this 
subpart on student achievement, and shall submit such study to 
Congress.

``SEC. 1628. SUPPLEMENT NOT SUPPLANT.

    ``Funds made available under this subpart shall be used to 
supplement and not supplant any other Federal, State, or local 
education funds.

``SEC. 1629. SPECIAL RULE.

    ``No local educational agency may concurrently participate in 
activities carried out under subpart 1 and activities carried out under 
this subpart.''.

                     Subtitle G--General Provisions

SEC. 181. STATE ADMINISTRATION.

    Section 1703 (20 U.S.C. 6513) (as redesignated by section 171(2)) 
is amended by striking subsection (c).

SEC. 182. DEFINITIONS.

    Part G of title I (20 U.S.C. 6511 et seq.) (as redesignated by 
section 171(1)) is amended by adding at the end the following:

``SEC. 1705. DEFINITIONS.

    ``In this title:
            ``(1) Fully qualified.--The term `fully qualified' has the 
        meaning given such term in section 2002.
            ``(2) Low-performing student.--The term `low-performing 
        student' means a student who performs below a State's basic 
        level of performance described in the State standards described 
        in section 1111(b)(1).
            ``(3) Scientifically based research.--Except as provided in 
        section 1502, the term `scientifically based research'--
                    ``(A) means the application of rigorous, 
                systematic, and objective procedures; and
                    ``(B) shall include research that--
                            ``(i) employs systematic, empirical methods 
                        that draw on observation or experiment;
                            ``(ii) involves rigorous data analyses that 
                        are adequate to test stated hypotheses and 
                        justify the general conclusions drawn;
                            ``(iii) relies on measurements or 
                        observational methods that provide valid data 
                        across evaluators and observers and across 
                        multiple measurements and observations; and
                            ``(iv) has been accepted by a journal that 
                        uses peer review or approved by a panel of 
                        independent experts through a comparably 
                        rigorous, objective, and scientific review.''.

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

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

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

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

``SEC. 2001. PURPOSE.

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

``SEC. 2002. DEFINITIONS.

    ``In this title:
            ``(1) Charter school.--The term `charter school' has the 
        meaning given the term in section 4210.
            ``(2) Core academic subject.--The term `core academic 
        subject', used with respect to a State, means English language 
        arts, mathematics, science, and any other academic subject that 
        the State determines is a core academic subject.
            ``(3) Fully qualified.--The term `fully qualified' means--
                    ``(A) in the case of an elementary school teacher 
                (other than a teacher teaching in a public charter 
                school or a middle school teacher), a teacher who, at a 
                minimum--
                            ``(i) has obtained State certification 
                        (which may include certification obtained 
                        through alternative means), or a State license, 
                        to teach in the State in which the teacher 
                        teaches;
                            ``(ii) holds a bachelor's degree from an 
                        institution of higher education; and
                            ``(iii) demonstrates the subject matter 
                        knowledge, teaching knowledge, and teaching 
                        skills required to teach effectively reading, 
                        writing, mathematics, science, social studies, 
                        and other elements of a liberal arts education;
                    ``(B) in the case of a middle school or secondary 
                school teacher (other than a teacher teaching in a 
                public charter school), a teacher who, at a minimum--
                            ``(i) has obtained State certification 
                        (which may include certification obtained 
                        through alternative means), or a State license, 
                        to teach in the State in which the teacher 
                        teaches;
                            ``(ii) holds a bachelor's degree from an 
                        institution of higher education; and
                            ``(iii) demonstrates a high level of 
                        competence in all academic subjects in which 
                        the teacher teaches through--
                                    ``(I) completion of an academic 
                                major (or courses totaling an 
                                equivalent number of credit hours) in 
                                each of the academic subjects in which 
                                the teacher teaches;
                                    ``(II) in the case of a teacher who 
                                is a mid-career professional entering 
                                the teaching profession, achievement 
                                of--
                                            ``(aa) a high level of 
                                        performance in other 
                                        professional employment 
                                        experience relevant to the core 
                                        academic subjects that the 
                                        teacher teaches; and
                                            ``(bb) achievement of a 
                                        level of performance described 
                                        in subclause (III); or
                                    ``(III) achievement of a high level 
                                of performance on rigorous academic 
                                subject area tests administered by the 
                                State in which the teacher teaches; and
                    ``(C) in the case of a teacher teaching in a public 
                charter school--
                            ``(i) meets the requirements of State law, 
                        if any, relating to certification or licensing 
                        to teach in the State in a charter school;
                            ``(ii) meets the requirements of State law, 
                        if any, regarding holding a degree from an 
                        institution of higher education to teach in a 
                        charter school; and
                            ``(iii)(I) in the case of an elementary 
                        school teacher (other than a middle school 
                        teacher), demonstrates the knowledge and skills 
                        described in subparagraph (A)(iii); or
                            ``(II) in the case of a middle school or 
                        secondary school teacher, demonstrates a high 
                        level of competence as described in 
                        subparagraph (B)(iii).
            ``(4) Institution of higher education.--The term 
        `institution of higher education' means an institution of 
        higher education, as defined in section 101 of the Higher 
        Education Act of 1965, that--
                    ``(A) has not been identified as low-performing 
                under section 208 of the Higher Education Act of 1965; 
                and
                    ``(B) is in full compliance with the public 
                reporting requirements described in section 207 of the 
                Higher Education Act of 1965.
            ``(5) Low-performing student.--The term `low-performing 
        student' means a student who, based on multiple measures, 
        performs at or below a State's basic level of performance for 
        the student's grade level, as described in the State student 
        performance standards described in section 1111(b)(1).
            ``(6) Outlying area.--The term `outlying area' means the 
        United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
            ``(7) Poverty line.--The term `poverty line' means the 
        income official poverty line (as defined by the Office of 
        Management and Budget, and revised annually in accordance with 
        section 673(2) of the Community Services Block Grant Act) 
        applicable to a family of the size involved, for the most 
        recent year for which satisfactory data are available.
            ``(8) School-age population.--The term `school-age 
        population' means the population aged 5 through 17, as 
        determined on the basis of the most recent satisfactory data.
            ``(9) Scientifically based research.--The term 
        `scientifically based research' has the meaning given the term 
        in section 1705.
            ``(10) State.--The term `State' means each of the several 
        States in the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
            ``(11) State educational agency.--The term `State 
        educational agency' means the entity or agency designated under 
        the laws of a State as responsible for teacher certification or 
        licensing in the State.

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

``SEC. 2101. PROGRAM AUTHORIZED.

    ``(a) Grants Authorized.--The Secretary shall award a grant, from 
an allotment made under subsection (b), to each State educational 
agency having a State plan approved under section 2103, to enable the 
State educational agency to raise the quality of, and provide 
professional development opportunities for, public elementary school 
and secondary school teachers, principals, and administrators.
    ``(b) Reservations and Allotments.--
            ``(1) Reservations.--From the amount appropriated under 
        section 2114 to carry out this part for each fiscal year, the 
        Secretary shall reserve--
                    ``(A) \1/2\ of 1 percent of such amount for 
                payments to the Bureau of Indian Affairs for 
                activities, approved by the Secretary, consistent with 
                this part;
                    ``(B) \1/2\ of 1 percent of such amount for 
                payments to outlying areas, to be allotted in 
                accordance with their respective needs for assistance 
                under this part as determined by the Secretary, for 
                activities, approved by the Secretary, consistent with 
                this part; and
                    ``(C) such sums as may be necessary to continue to 
                support any multiyear partnership program award made 
                under part A, C, or D (as such part was in effect on 
                the day before the date of enactment of the Public 
                Education Reinvestment, Reinvention, and Responsibility 
                Act) until the termination of the multiyear award.
            ``(2) State allotments.--From the amount appropriated under 
        section 2114 for a fiscal year and remaining after the 
        Secretary makes reservations under paragraph (1), the Secretary 
        shall allot to each State having a State plan approved under 
        section 2103 the sum of--
                    ``(A) an amount that bears the same relationship to 
                50 percent of the remainder as the school-age 
                population from families with incomes below the poverty 
                line in the State bears to the school-age population 
                from families with incomes below the poverty line in 
                all States; and
                    ``(B) an amount that bears the same relationship to 
                50 percent of the remainder as the school-age 
                population in the State bears to the school-age 
                population in all States.
    ``(c) State Minimum.--For any fiscal year, no State shall be 
allotted under this section an amount that is less than \1/2\ of 1 
percent of the total amount allotted to all States under subsection 
(b)(2).
    ``(d) Hold-Harmless Amounts.--For fiscal year 2002, notwithstanding 
subsection (b)(2), the amount allotted to each State under subsection 
(b)(2) shall be not less than 100 percent of the total amount the State 
was allotted under part B (as such part was in effect on the day before 
the date of enactment of the Public Education Reinvestment, 
Reinvention, and Responsibility Act) for fiscal year 2001.
    ``(e) Ratable Reductions.--If the sums made available under 
subsection (b)(2) for any fiscal year are insufficient to pay the full 
amounts that all States are eligible to receive under subsection (d) 
for such year, the Secretary shall ratably reduce such amounts for such 
year.

``SEC. 2102. WITHIN-STATE ALLOCATION.

    ``(a) In General.--Each State educational agency for a State 
receiving a grant under section 2101(a) shall--
            ``(1) set aside 15 percent of the grant funds to award 
        educator partnership grants under section 2113;
            ``(2) set aside not more than 5 percent of the grant funds 
        to carry out activities described in the State plan submitted 
        under section 2103; and
            ``(3) using the remaining 80 percent of the grant funds, 
        make subgrants by allocating to each local educational agency 
        in the State the sum of--
                    ``(A) an amount that bears the same relationship to 
                60 percent of the remainder as the school-age 
                population from families with incomes below the poverty 
                line in the area served by the local educational agency 
                bears to the school-age population from families with 
                incomes below the poverty line in the area served by 
                all local educational agencies in the State; and
                    ``(B) an amount that bears the same relationship to 
                40 percent of the remainder as the school-age 
                population in the area served by the local educational 
                agency bears to the school-age population in the area 
                served by all local educational agencies in the State.
    ``(b) Hold-Harmless Amounts.--
            ``(1) Fiscal year 2002.--For fiscal year 2002, 
        notwithstanding subsection (a), the amount allocated to each 
        local educational agency under this section shall be not less 
        than 100 percent of the total amount the local educational 
        agency was allocated under part B (as such part was in effect 
        on the day before the date of enactment of the Public Education 
        Reinvestment, Reinvention, and Responsibility Act) for fiscal 
        year 2001.
            ``(2) Fiscal year 2003.--For fiscal year 2003, 
        notwithstanding subsection (a), the amount allocated to each 
        local educational agency under this section shall be not less 
        than 85 percent of the amount allocated to the local 
        educational agency under this section for fiscal year 2002.
            ``(3) Fiscal years 2004-2006.--For each of fiscal years 
        2004 through 2006, notwithstanding subsection (a), the amount 
        allocated to each local educational agency under this section 
        shall be not less than 70 percent of the amount allocated to 
        the local educational agency under this section for the 
        previous fiscal year.
    ``(c) Ratable Reductions.--If the sums made available under 
subsection (a)(3) for any fiscal year are insufficient to pay the full 
amounts that all local educational agencies are eligible to receive 
under subsection (b) for such year, the State educational agency shall 
ratably reduce such amounts for such year.

``SEC. 2103. STATE PLANS.

    ``(a) Plan Required.--
            ``(1) Comprehensive state plan.--The State educational 
        agency shall submit a State plan to the Secretary at such time, 
        in such manner, and containing such information as the 
        Secretary may require. If the State educational agency (as 
        defined in section 8101) is not the entity or agency designated 
        under the laws of the State as responsible for teacher 
        certification or licensing in the State, then the plan shall be 
        developed in consultation with the State educational agency. 
        The entity or agency shall provide annual evidence of such 
        consultation to the Secretary.
            ``(2) Consolidated plan.--A State plan submitted under 
        paragraph (1) may be submitted as part of a consolidated plan 
        under section 8302.
    ``(b) Contents.--Each plan submitted under subsection (a) shall--
            ``(1) describe how the State educational agency is taking 
        reasonable steps to--
                    ``(A) reform teacher certification, 
                recertification, or licensure requirements to ensure 
                that--
                            ``(i) teachers have the necessary subject 
                        matter knowledge, teaching knowledge, and 
                        teaching skills in the academic subjects that 
                        the teachers teach;
                            ``(ii) such requirements are aligned with 
                        the challenging State content standards;
                            ``(iii) teachers have the knowledge and 
                        skills necessary to help students meet the 
                        challenging State student performance 
                        standards;
                            ``(iv) such requirements take into account 
                        the need, as determined by the State 
                        educational agency, for greater access to, and 
                        participation in, the teaching profession by 
                        individuals from historically underrepresented 
                        groups; and
                            ``(v) teachers have the necessary 
                        technological skills to integrate technology 
                        more effectively in the teaching of content 
                        required by State and local standards in all 
                        academic subjects that the teachers teach;
                    ``(B) develop and implement rigorous testing 
                procedures for teachers, as described in subparagraphs 
                (A)(iii) and (B)(iii)(IV) of section 2002(3), to ensure 
                that the teachers have the subject matter knowledge, 
                teaching knowledge, and teaching skills necessary to 
                teach effectively the content required by State and 
                local standards in the academic subjects that the 
                teachers teach;
                    ``(C) establish, expand, or improve alternative 
                routes to State certification of teachers, especially 
                in the areas of mathematics and science, for highly 
                qualified individuals with a baccalaureate degree, 
                including mid-career professionals from other 
                occupations, paraprofessionals, former military 
                personnel, and recent college or university graduates 
                who have records of academic distinction and who 
                demonstrate the potential to become highly effective 
                teachers;
                    ``(D) reduce emergency teacher certification;
                    ``(E) develop and implement effective programs, and 
                provide financial assistance, to assist local 
                educational agencies, elementary schools, and secondary 
                schools in effectively recruiting and retaining fully 
                qualified teachers and principals, particularly in 
                schools that have the lowest proportion of fully 
                qualified teachers  or the highest proportion of low-
performing students;
                    ``(F) provide professional development programs 
                that meet the requirements described in section 2109;
                    ``(G) provide programs that are designed to assist 
                new teachers during their first 3 years of teaching, 
                such as mentoring programs that--
                            ``(i) provide mentoring to new teachers 
                        from veteran teachers with expertise in the 
                        same academic subject as the new teachers are 
                        teaching;
                            ``(ii) provide mentors time for activities 
                        such as coaching, observing, and assisting 
                        teachers who are being mentored; and
                            ``(iii) use standards or assessments that 
                        are consistent with the State's student 
                        performance standards and the requirements for 
                        professional development activities described 
                        in section 2109 in order to guide the new 
                        teachers;
                    ``(H) provide technical assistance to local 
                educational agencies in developing and implementing 
                activities described in section 2108; and
                    ``(I) ensure that programs in core academic 
                subjects, particularly in mathematics and science, will 
                take into account the need for greater access to, and 
                participation in, such core academic subjects by 
                students from historically underrepresented groups, 
                including females, minorities, individuals with limited 
                English proficiency, the economically disadvantaged, 
                and individuals with disabilities, by incorporating 
                pedagogical strategies and techniques that meet such 
                students' educational needs;
            ``(2) describe the activities for which assistance is 
        sought under the grant, and how such activities will improve 
        students' academic achievement and close academic achievement 
        gaps of economically disadvantaged, minority, and limited 
        English proficient students;
            ``(3) describe how the State educational agency will 
        establish annual numerical performance objectives under section 
        2104 for improving the qualifications of teachers and the 
        professional development of teachers, principals, and 
        administrators;
            ``(4) contain an assurance that the State educational 
        agency consulted with local educational agencies, education-
        related community groups, nonprofit organizations, parents, 
        teachers, school administrators, local school boards, 
        institutions of higher education in the State, and content 
        specialists in establishing the performance objectives 
        described in section 2104;
            ``(5) describe how the State educational agency will hold 
        local educational agencies, elementary schools, and secondary 
        schools accountable for meeting the performance objectives 
        described in section 2104 and for reporting annually on the 
        local educational agencies' and schools' progress in meeting 
        the performance objectives;
            ``(6) describe how the State educational agency will ensure 
        that a local educational agency receiving a subgrant under 
        section 2102 will comply with the requirements of this part;
            ``(7) provide an assurance that the State educational 
        agency will require each local educational agency, elementary 
        school, or secondary school receiving funds under this part to 
        report publicly the local educational agency's or school's 
        annual progress with respect to the performance objectives 
        described in section 2104; and
            ``(8) describe how the State educational agency will 
        coordinate professional development activities provided under 
        the program carried out under this part with professional 
        development activities provided under other Federal, State, and 
        local programs, including programs authorized under titles I 
        and III and, where appropriate, the Individuals with 
        Disabilities Education Act and the Carl D. Perkins Vocational 
        and Technical Education Act of 1998.
    ``(c) Secretary Approval.--The Secretary, after using a peer review 
process, shall approve a State plan if the plan meets the requirements 
of this section.
    ``(d) Duration of the Plan.--
            ``(1) In general.--Each State plan shall--
                    ``(A) remain in effect for the duration of the 
                State educational agency's participation under this 
                part; and
                    ``(B) be periodically reviewed and revised by the 
                State educational agency, as necessary, to reflect 
                changes to the agency's strategies and programs carried 
                out under this part.
            ``(2) Additional information.--If a State educational 
        agency receiving a grant under this part makes significant 
        changes to the State plan, such as the adoption of new 
        performance objectives, the agency shall submit information 
        regarding the significant changes to the Secretary.

``SEC. 2104. STATE PERFORMANCE OBJECTIVES.

    ``(a) In General.--Each State educational agency receiving a grant 
under this part shall establish annual numerical performance objectives 
with respect to progress in improving the qualifications of teachers 
and the professional development of teachers, principals, and 
administrators. For each annual numerical performance objective 
established, the agency shall specify an incremental percentage 
increase for the objective to be attained for each fiscal year (after 
the first fiscal year) for which the agency receives a grant under this 
part, relative to the preceding fiscal year.
    ``(b) Required Objectives.--At a minimum, the annual numerical 
performance objectives described in subsection (a) shall include an 
incremental increase in the percentage of--
            ``(1) classes in core academic subjects that are being 
        taught by fully qualified teachers;
            ``(2) new teachers and principals receiving professional 
        development support, including mentoring  during the teachers' 
and principals' first 3 years of employment as teachers and principals, 
respectively;
            ``(3) teachers, principals, and administrators 
        participating in high quality professional development programs 
        that are consistent with section 2109; and
            ``(4) fully qualified teachers teaching in the State, to 
        ensure that all teachers teaching in such State are fully 
        qualified by December 31, 2006.
    ``(c) Requirement for Fully Qualified Teachers.--Each State 
educational agency receiving a grant under this part shall ensure that 
all public elementary school and secondary school teachers in the State 
are fully qualified not later than December 31, 2006.
    ``(d) Accountability.--
            ``(1) In general.--Each State educational agency receiving 
        a grant under this part shall be held accountable for--
                    ``(A) meeting the State's annual numerical 
                performance objectives; and
                    ``(B) meeting the reporting requirements described 
                in section 4401.
            ``(2) Sanctions.--Any State educational agency that fails 
        to meet the requirement described in paragraph (1)(A) shall be 
        subject to sanctions under section 7101.
    ``(e) Special Rule.--Notwithstanding any other provision of law, 
the provisions of subsection (c) shall not supersede State laws 
governing public charter schools.

``SEC. 2105. STATE OPTIONAL ACTIVITIES.

    ``(a) In General.--Each State educational agency receiving a grant 
under section 2101(a) may use the grant funds described in section 
2102(a)(2)--
            ``(1) to develop and implement a system to measure the 
        effectiveness of specific professional development programs and 
        strategies;
            ``(2) to increase the portability of teacher pensions and 
        reciprocity of teaching certification or licensure among 
        States, except that no reciprocity agreement developed under 
        this section may lead to the weakening of any State teacher 
        certification or licensing requirement;
            ``(3) to develop or assist local educational agencies in 
        the development and utilization of proven, innovative 
        strategies to deliver intensive professional development 
        programs that are cost effective and easily accessible, such as 
        programs offered through the use of technology and distance 
        learning;
            ``(4) to provide assistance to local educational agencies 
        for the development and implementation of innovative 
        professional development programs that train teachers to use 
        technology to improve teaching and learning and that are 
        consistent with the requirements of section 2109;
            ``(5) to provide professional development to enable 
        teachers to ensure that female students, minority students, 
        limited English proficient students, students with 
        disabilities, and economically disadvantaged students have the 
        full opportunity to meet challenging State content and 
        performance standards in the core academic subjects;
            ``(6) to increase the number of persons who are women, 
        minorities, or individuals with disabilities, who teach in the 
        State, who are fully qualified, and who teach in core academic 
        subjects in which such persons are underrepresented;
            ``(7) to increase the number of highly qualified women, 
        minorities, and individuals from other underrepresented groups 
        who are involved in the administration of elementary schools 
        and secondary schools within the State; and
            ``(8) to create a statewide online leadership network for 
        principals to communicate with other principals in order to 
        share ideas and solve problems.
    ``(b) Coordination.--Each State that receives a grant under this 
part and a grant under section 202 of the Higher Education Act of 1965 
shall coordinate the activities the State carries out under such 
section 202 with the activities the State educational agency carries 
out under this section.

``SEC. 2106. STATE ADMINISTRATIVE EXPENSES.

    ``Each State educational agency receiving a grant under section 
2101(a) may use not more than 5 percent of the amount set aside in 
section 2102(a)(2) for a fiscal year for the cost of--
            ``(1) planning and administering the activities described 
        in section 2103(b); and
            ``(2) administration relating to making subgrants to local 
        educational agencies under section 2102.

``SEC. 2107. LOCAL PLANS.

    ``(a) In General.--Each local educational agency desiring a 
subgrant from the State educational agency under section 2102(a)(3) 
shall submit a local plan to the State educational agency--
            ``(1) at such time, in such manner, and containing such 
        information as the State educational agency may require; and
            ``(2) that describes how the local educational agency will 
        coordinate the activities for which the agency seeks the 
        subgrant with other programs carried out under this Act, or 
        other Acts, as appropriate.
    ``(b) Local Plan Contents.--The local plan described in subsection 
(a) shall, at a minimum--
            ``(1) describe how the local educational agency will use 
        the subgrant funds to meet the State performance objectives for 
        teacher qualifications and professional development described 
        in section 2104;
            ``(2) describe how the local educational agency will hold 
        elementary schools and secondary schools accountable for 
        meeting the requirements described in this part;
            ``(3) contain an assurance that the local educational 
        agency will target funds to the elementary schools and 
        secondary schools served by the local educational agency that--
                    ``(A) have the lowest proportion of fully qualified 
                teachers; and
                    ``(B) are identified for school improvement and 
                corrective action under section 1116;
            ``(4) describe how the local educational agency will 
        coordinate professional development activities authorized under 
        section 2108(a) with professional development activities 
        provided through other Federal, State, and local programs, 
        including those authorized under titles I and III and, where 
        applicable, the Individuals with Disabilities Education Act and 
        the Carl D. Perkins Vocational and Technical Education Act of 
        1998; and
            ``(5) describe how the local educational agency has 
        collaborated with teachers, principals, parents, and 
        administrators in the preparation of the local plan.

``SEC. 2108. LOCAL ACTIVITIES.

    ``(a) In General.--Each local educational agency receiving a 
subgrant under section 2102(a)(3) shall use the subgrant funds to--
            ``(1) support professional development activities, for--
                    ``(A) teachers, in at least the areas of reading, 
                mathematics, and science; and
                    ``(B) teachers, principals, and administrators in 
                order to provide such individuals with the knowledge 
                and skills to provide all students, including female 
                students, minority students, limited English proficient 
                students, students with disabilities, and economically 
                disadvantaged students, with the opportunity to meet 
                challenging State content and student performance 
                standards;
            ``(2) provide professional development to teachers, 
        principals, and administrators to enhance the use of technology 
        within elementary schools and secondary schools in order to 
        deliver more effective curriculum instruction;
            ``(3) recruit and retain fully qualified teachers and 
        highly qualified principals, particularly for elementary 
        schools and secondary schools located in areas with high 
        percentages of low-performing students and students from 
        families with incomes below the poverty line;
            ``(4) recruit and retain fully qualified teachers and 
        highly qualified principals to serve in the elementary schools 
        and secondary schools with the highest percentages of low-
        performing students, through activities such as--
                    ``(A) mentoring programs for newly hired teachers, 
                including programs provided by master teachers, and for 
                newly hired principals; and
                    ``(B) programs that provide other incentives, 
                including financial incentives, to retain--
                            ``(i) teachers who have a record of success 
                        in helping low-performing students improve 
                        those students' academic success; and
                            ``(ii) principals who have a record of 
                        improving the performance of all students, or 
                        significantly narrowing the gaps between 
                        minority students and nonminority students, and 
                        economically disadvantaged students and 
                        noneconomically disadvantaged students, within 
                        the elementary schools or secondary schools 
                        served by the principals;
            ``(5) provide professional development that incorporates 
        effective strategies, techniques, methods, and practices for 
        meeting the educational needs of diverse groups of students, 
        including female students, minority students, students with 
        disabilities, limited English proficient students, and 
        economically disadvantaged students; and
            ``(6) provide professional development for mental health 
        professionals, including school psychologists, school 
        counselors, and school social workers, that is focused on 
        enhancing the skills and knowledge of such individuals so that 
        the individuals may help students exhibiting distress (through 
        conduct such as substance abuse, disruptive behavior, and 
        suicidal behavior) meet the challenging State student 
        performance standards.
    ``(b) Optional Activities.--Each local educational agency receiving 
a subgrant under section 2102(a)(3) may use the subgrant funds--
            ``(1) to provide a signing bonus or other financial 
        incentive, such as differential pay, for--
                    ``(A) a fully qualified teacher to teach in an 
                academic subject for which there exists a shortage of 
                fully qualified teachers within the elementary school 
                or secondary school in which the teacher teaches or 
                within the elementary schools and secondary schools 
                served by the local educational agency;
                    ``(B) a fully qualified teacher or a highly 
                qualified principal in a school in which there is--
                            ``(i) a large percentage of students from 
                        economically disadvantaged families; or
                            ``(ii) a high percentage of low-performing 
                        students; or
                    ``(C) a teacher who has met the National Education 
                Technology Standards, as developed by the Department of 
                Education and the International Society for Technology 
                in Education, or has obtained an information technology 
                certification that is directly related to the 
                curriculum or subject area that the teacher teaches;
            ``(2) to establish programs that--
                    ``(A) recruit professionals into teaching from 
                other fields and provide such professionals with 
                alternative routes to teacher certification, especially 
                in the areas of mathematics, science, and English 
                language arts; and
                    ``(B) provide increased teaching and administration 
                opportunities for fully qualified females, minorities, 
                individuals with disabilities, and other individuals 
                underrepresented in the teaching or school 
                administration professions; and
            ``(3) to establish programs and activities that are 
        designed to improve the quality of the teacher and principal 
        force, such as innovative professional development programs 
        (which may be provided through partnerships, including 
        partnerships with institutions of higher education), and 
        including programs that--
                    ``(A) train teachers and principals to utilize 
                technology to improve teaching and learning;
                    ``(B) develop principals by helping schools 
                identify school leaders and invest in their 
                professional development; and
                    ``(C) are provided in a manner consistent with the 
                requirements of section 2019;
            ``(4) to provide collaboratively designed performance pay 
        systems for teachers and principals that encourage teachers and 
        principals to work together to raise student performance;
            ``(5) to establish professional development programs that 
        provide instruction in how to teach students with different 
        learning styles, particularly students with disabilities and 
        students with special learning needs (including students who 
        are gifted and talented);
            ``(6) to establish professional development programs that 
        provide instruction in how best to discipline students in the 
        classroom, and to identify early and appropriate interventions 
        to help students described in paragraph (5) learn;
            ``(7) to provide professional development programs that 
        provide instruction in how to teach character education in a 
        manner that--
                    ``(A) reflects the values of parents, teachers, and 
                local communities; and
                    ``(B) incorporates elements of good character, 
                including honesty, citizenship, courage, justice, 
                respect, personal responsibility, and trustworthiness;
            ``(8) to provide scholarships or other incentives to assist 
        teachers in attaining national board certification;
            ``(9) to support activities designed to provide effective 
        professional development for teachers of limited English 
        proficient students;
            ``(10) to establish other activities designed--
                    ``(A) to improve professional development for 
                teachers, principals, and administrators; and
                    ``(B) to recruit and retain fully qualified 
                teachers and highly qualified principals;
            ``(11) to establish master teacher programs to increase 
        teacher salaries and employee benefits for teachers who enter 
        into contracts with the local educational agency to serve as 
        master teachers in the public schools, in accordance with the 
        requirements of subsection (c); and
            ``(12) to carry out professional development activities 
        that consist of--
                    ``(A) instruction in the use of data and 
                assessments to provide information and instruction for 
                classroom practice;
                    ``(B) instruction in ways that teachers, 
                principals, pupil services personnel, and school 
                administrators may work more effectively with parents;
                    ``(C) the formation of partnerships with 
                institutions of higher education to establish school-
                based teacher training programs that provide 
                prospective teachers and new teachers with an 
                opportunity to work under the guidance of experienced 
                teachers and college faculty;
                    ``(D) the creation of career ladder programs for 
                paraprofessionals, who are assisting teachers under 
                this part, to obtain the education necessary for such 
                paraprofessionals to become certified and licensed 
                teachers;
                    ``(E) instruction in ways to teach special needs 
                students;
                    ``(F) joint professional development activities 
                involving teachers, principals, and administrators 
                eligible to participate in programs under this part, 
                and personnel from Head Start programs, Even Start 
                programs, or State preschool programs;
                    ``(G) instruction in experiential-based teaching 
                methods such as service-learning or applied learning; 
                and
                    ``(H) mentoring programs focusing on changing 
                teacher behaviors and practices--
                            ``(i) to help new teachers, including 
                        teachers who are members of a minority group, 
                        develop and gain confidence in their skills;
                            ``(ii) to increase the likelihood that the 
                        new teachers will continue in the teaching 
                        profession; and
                            ``(iii) to improve the quality of their 
                        teaching.
    ``(c) Requirements for Master Teacher Programs.--
            ``(1) Definition.--In this subsection, the term `master 
        teacher' means a teacher who--
                    ``(A) is certified or licensed under State law;
                    ``(B) has been teaching for at least 5 years in a 
                public or private school or institution of higher 
                education;
                    ``(C) is selected to serve as a master teacher on 
                the basis of an application and recommendations by 
                administrators and other teachers;
                    ``(D) at the time of submission of such 
                application, is teaching in a public school;
                    ``(E) assists other teachers in improving 
                instructional strategies, improves the skills of other 
                teachers, performs mentoring, develops curricula, and 
                provides other professional development; and
                    ``(F) enters into a contract with the local 
                educational agency involved to continue to teach and 
                serve as a master teacher for at least 5 years.
            ``(2) Requirements for master teacher contracts.--
                    ``(A) In general.--A local educational agency that 
                establishes a master teacher program under subsection 
                (b)(11) shall negotiate the terms of contracts of 
                master teachers with the local labor organizations that 
                represent teachers in the school district served by 
                that agency.
                    ``(B) Breach.--A contract with a master teacher 
                entered into under this paragraph shall specify that a 
                breach of the contract shall be deemed to have occurred 
                if the master teacher voluntarily withdraws from the 
                program, terminates the contract, or is dismissed by 
                the local educational agency for nonperformance of 
                duties, subject to the requirements of any statutory or 
                negotiated due process procedures that may apply.
                    ``(C) Repayment.--The contract shall require, in 
                the event of a breach of the contract described in 
                subparagraph (B), that the teacher repay the local 
                educational agency all funds provided to the teacher 
                under the contract.
    ``(d) Requirements.--Professional development provided under this 
section shall be provided in a manner consistent with section 2109.

``SEC. 2109. PROFESSIONAL DEVELOPMENT FOR TEACHERS.

    ``(a) Limitation Relating to Curricula and Academic Subjects.--In 
deciding how to use subgrant funds allocated under section 2102(a)(3) 
to support a professional development activities for teachers, a local 
educational agency shall first use the funds to support activities 
that--
            ``(1) are directly related to the curricula and academic 
        subjects that the teachers teach; or
            ``(2) are designed to enhance the ability of the teachers 
        to understand and use the State's challenging content standards 
        for the academic subjects that the teachers teach; or
            ``(3) provide instruction in methods of disciplining 
        students.
    ``(b) Professional Development Activity.--A professional 
development activity carried out under this part shall--
            ``(1) be measured, in terms of progress described in 
        section 2104(a), using the specific performance objectives 
        established by the State educational agency in accordance with 
        section 2104;
            ``(2) be tied to challenging State or local content 
        standards and student performance standards;
            ``(3) be tied to scientifically based research 
        demonstrating the effectiveness of such activity in increasing 
        student achievement or substantially increasing the subject 
        matter knowledge, teaching knowledge, and teaching skills of 
        teachers;
            ``(4) be of sufficient intensity and duration (not to 
        include such activities as 1-day or short-term workshops and 
        conferences) to have a positive and lasting impact on teachers' 
        performance in the classroom, except that this paragraph shall 
        not apply to an activity that is 1 component described in a 
        long-term comprehensive professional development plan--
                    ``(A) established by a teacher and the teacher's 
                supervisor; and
                    ``(B) based on an assessment of the needs of the 
                teacher, the teacher's students, and the local 
                educational agency involved;
            ``(5) be developed with extensive participation of 
        teachers, principals, parents, administrators, and local school 
        boards of elementary schools and secondary schools to be served 
        under this part, and institutions of higher education in the 
        State involved, and, with respect to any professional 
        development program described in paragraph (6) or (7) of 
        section 2108(b), shall, if applicable, be developed with 
        extensive coordination with, and participation of, 
        professionals with expertise in such type of professional 
        development;
            ``(6) to the extent appropriate, provide training for 
        teachers regarding using technology and applying technology 
        effectively in the classroom, to improve teaching and learning 
        concerning the curricula and academic subjects that the 
        teachers teach; and
            ``(7) be directly related to the academic subjects that the 
        teachers teach and the State content standards.
    ``(c) Accountability.--
            ``(1) In general.--A State educational agency shall notify 
        a local educational agency that the local educational agency 
        may be subject to the action described in paragraph (3) if, 
        after any fiscal year, the State educational agency determines 
        that the programs or activities funded by the agency under this 
        part fail to meet the requirements of subsections (a) and (b).
            ``(2) Technical assistance.--A local educational agency 
        that has received notification pursuant to paragraph (1) may 
        request technical assistance from the State educational agency 
        and an opportunity for such local educational agency to comply 
        with the requirements of subsections (a) and (b).
            ``(3) State educational agency action.--If a State 
        educational agency determines that a local educational agency 
        failed to carry out the local educational agency's 
        responsibilities under subsections (a) and (b), the State 
        educational agency shall take such action as the agency 
        determines to be necessary, consistent with this section, to 
        provide, or direct the local educational agency to provide, 
        high-quality professional development for teachers, principals, 
        and administrators.

``SEC. 2110. PARENTS' RIGHT TO KNOW.

    ``Each local educational agency receiving a subgrant under section 
2102(a)(3) shall meet the reporting requirements with respect to 
teacher qualifications described in section 4401(f).

``SEC. 2111. LOCAL ADMINISTRATIVE EXPENSES.

    ``Each local educational agency receiving a subgrant under section 
2102(a)(3) may use not more than 1.5 percent of the subgrant funds for 
a fiscal year for the cost of administering activities under this part.

``SEC. 2112. 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 report setting 
forth information regarding--
            ``(1) the progress of States' in achieving compliance 
        concerning increasing the percentage of fully qualified 
        teacher, for fiscal years 2002 through 2004;
            ``(2) any obstacles to achieving that compliance; and
            ``(3) the approximate percentage of Federal, State, and 
        local resources being expended to carry out activities to 
        attract and retain fully qualified teachers, especially in 
        geographic areas and core academic subjects in which a shortage 
        of such teachers exists.

``SEC. 2113. EDUCATOR PARTNERSHIP GRANTS.

    ``(a) Subgrants.--
            ``(1) In general.--A State educational agency receiving a 
        grant under section 2101(a) shall award subgrants, on a 
        competitive basis, from amounts made available under section 
        2102(a)(1), to local educational agencies, elementary schools, 
        and secondary schools, that have formed educator partnerships, 
        for the design and implementation of programs that will enhance 
        professional development opportunities for teachers, 
        principals, and administrators, and will increase the number of 
        fully qualified teachers.
            ``(2) Allocations.--A State educational agency awarding 
        subgrants under this subsection shall allocate the subgrant 
        funds on a competitive basis and in a manner that results in an 
        equitable distribution of the subgrant funds by geographic 
        areas within the State.
    ``(b) Educator Partnerships.--An educator partnership described in 
subsection (a) shall be a coalition established by a cooperative 
arrangement between--
            ``(1) a public elementary school or secondary school 
        (including a charter school), or a local educational agency; 
        and
            ``(2) 1 or more of the following:
                    ``(A) An institution of higher education.
                    ``(B) An educational service agency.
                    ``(C) A public or private not-for-profit education 
                organization.
                    ``(D) A for-profit education organization.
                    ``(E) An entity from outside the traditional 
                education arena, including a corporation or consulting 
                firm.
    ``(c) Use of Funds.--An educator partnership receiving a subgrant 
under this section shall use the subgrant funds for 1 or more 
activities consisting of--
            ``(1) developing and enhancing professional development 
        activities for teachers in core academic subjects to ensure 
        that the teachers have subject matter knowledge in the academic 
        subjects that the teachers teach;
            ``(2) developing and enhancing professional development 
        activities for mathematics and science teachers to ensure that 
        such teachers have the subject matter knowledge to teach 
        mathematics and science;
            ``(3) developing and providing assistance to local 
        educational agencies and elementary schools and secondary 
        schools for sustained, high-quality professional development 
        activities for teachers, principals, and administrators, that--
                    ``(A) ensure that teachers, principals, and 
                administrators are able to use State content standards, 
                performance standards, and assessments to improve 
                instructional practices and student achievement; and
                    ``(B) may include intensive programs designed to 
                prepare a teacher who participates in such a program to 
                provide professional development instruction to other 
                teachers within the participating teacher's school;
            ``(4) increasing the number of fully qualified teachers 
        available to provide high-quality education to limited English 
        proficient students by--
                    ``(A) working with institutions of higher education 
                that offer degree programs, to attract more people into 
                such programs, and to prepare better new teachers who 
                are English language teachers to provide effective 
                language instruction to limited English proficient 
                students; and
                    ``(B) supporting development and implementation of 
                professional development programs for language 
                instruction teachers to improve the language 
                proficiency of limited English proficient students;
            ``(5) developing and implementing professional development 
        activities for principals and administrators to enable the 
        principals and administrators to be effective school leaders 
        and to improve student achievement on challenging State content 
        and student performance standards, including professional 
        development relating to--
                    ``(A) leadership skills;
                    ``(B) recruitment, assignment, retention, and 
                evaluation of teachers and other staff;
                    ``(C) effective instructional practices, including 
                the use of technology; and
                    ``(D) parental and community involvement; and
            ``(6) providing activities that enhance professional 
        development opportunities for teachers, principals, and 
        administrators or will increase the number of fully qualified 
        teachers.
    ``(d) Application Required.--Each educator partnership desiring a 
subgrant under this section shall submit an application to the 
appropriate State educational agency at such time, in such manner, and 
containing such information as the State educational agency may 
reasonably require.
    ``(e) Administrative Expenses.--Each educator partnership receiving 
a subgrant under this section may use not more than 5 percent of the 
subgrant funds for a fiscal year for the cost of planning and 
administering programs under this section.
    ``(f) Coordination.--Each educator partnership that receives a 
subgrant under this section and a grant under section 203 of the Higher 
Education Act of 1965 shall coordinate the activities carried out under 
such section 203 with any related activities carried out under this 
section.

``SEC. 2114. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$2,000,000,000 for fiscal year 2002 and such sums as may be necessary 
for each of the 4 succeeding fiscal years.

                     ``PART B--CLASS SIZE REDUCTION

``SEC. 2201. FINDINGS.

    ``Congress makes the following findings:
            ``(1) Rigorous research has shown that, in the early 
        elementary school grades, students attending small classes make 
        more rapid educational gains than students in larger classes, 
        and that those gains persist through at least the eighth grade.
            ``(2) The benefits of smaller classes are greatest for 
        lower-achieving, minority, poor, and inner-city children, as 
        demonstrated by a study that found that urban fourth graders in 
        smaller-than-average classes were \3/4\ of a school year ahead 
        of their counterparts in larger-than-average classes.
            ``(3) Teachers in small classes can provide students with 
        more individualized attention, spend more time on instruction 
        and less time on other tasks, and cover more material 
        effectively, and are better able to work with parents to 
        further their children's education, than teachers in large 
        classes.
            ``(4) Smaller classes allow teachers to identify and work 
        with students who have learning disabilities sooner than is 
        possible with larger classes, potentially reducing those 
        students' needs for special education services in the later 
        grades.
            ``(5) The National Research Council report, `Preventing 
        Reading Difficulties in Young Children', recommends reducing 
        class sizes, accompanied by providing high-quality professional 
        development for teachers, as a strategy for improving student 
        achievement in reading.
            ``(6) Some research has shown that class size reduction 
        efforts are most effective in the early elementary school 
        grades.
            ``(7) Efforts to improve educational outcomes by reducing 
        class sizes in the early elementary school grades are likely to 
        be successful only if well-qualified teachers are hired to fill 
        additional classroom positions, and if teachers receive 
        intensive, ongoing professional development.
            ``(8) Several States and school districts have begun 
        serious efforts to reduce class sizes in the early elementary 
        school grades, but those efforts may be impeded by financial 
        limitations or difficulties in hiring highly qualified 
        teachers.
            ``(9) The Federal Government can assist in those efforts by 
        providing funding for class size reductions in grades 1 through 
        3, and by helping to ensure that both new and current teachers 
        who are moving into smaller classrooms are well prepared.

``SEC. 2202. PURPOSES.

    ``The purposes of this part are--
            ``(1) to help States and local educational agencies to 
        reduce class sizes with fully qualified teachers;
            ``(2) to enable local educational agencies to carry out 
        effective approaches to reducing class sizes with fully 
        qualified teachers; and
            ``(3) to improve educational achievement for children in 
        regular classes and special needs children, and particularly to 
        improve that achievement by reducing class sizes in the early 
        elementary school grades.

``SEC. 2203. ALLOTMENTS TO STATES.

    ``(a) Reservations for the Outlying Areas and the Bureau of Indian 
Affairs.--From the amount appropriated under section 2212 for any 
fiscal year, the Secretary shall reserve a total of not more than 1 
percent to make payments to--
            ``(1) 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; and
            ``(2) the Secretary of the Interior for activities approved 
        by the Secretary of Education, consistent with this part, in 
        schools operated or supported by the Bureau of Indian Affairs, 
        on the basis of their respective needs.
    ``(b) Allotments to States.--
            ``(1) In general.--
                    ``(A) Fiscal year 2002.--From the amount 
                appropriated under section 2212 for fiscal year 2002 
                and remaining after the Secretary makes reservations 
                under subsection (a), the Secretary shall make grants 
                to State educational agencies by allotting to each 
                State having a State application approved under section 
                2204(c) an amount that bears the same relationship to 
                the remainder as the greater of the amounts that the 
                State received for the preceding fiscal year under 
                sections 1122 and 2202(b) (as such sections were in 
                effect on the day before the date of enactment of the 
                Public Education Reinvestment, Reinvention, and 
                Responsibility Act) bears to the total of the greater 
                amounts that all States received under such sections 
                for fiscal year 2001.
                    ``(B) Fiscal year 2003 and subsequent fiscal 
                years.--From the amount appropriated under section 2212 
                for fiscal year 2003 or a subsequent fiscal year and 
                remaining after the Secretary makes reservations under 
                subsection (a), the Secretary shall make grants to 
                State educational agencies by allotting to each State 
                having a State application approved under section 
                2204(c) an amount that bears the same relationship to 
                the remainder as the greater of the amounts that the 
                State received for the preceding fiscal year as 
                described in section 1122 and this section bears to the 
                total of the greater amounts that all States received 
                under such sections for the preceding fiscal year.
            ``(2) Reallotment.--If any State chooses not to participate 
        in the program carried out under this part, or fails to submit 
        an approvable application under this part, the Secretary shall 
        reallot the amount that such State would have received under 
        paragraph (1) to States having applications approved under 
        section 2204(c), in accordance with paragraph (1).

``SEC. 2204. STATE APPLICATIONS.

    ``(a) Applications Required.--The State educational agency for each 
State desiring a grant under this part shall submit an application to 
the Secretary at such time, in such manner, and containing such 
information as the Secretary may require.
    ``(b) Contents.--The application shall include--
            ``(1) a description of the State's goals for using funds 
        under this part to reduce average class sizes in regular 
        classrooms in grades 1 through 3, including a description of 
        class sizes in those classrooms, for each local educational 
        agency in the State (as of the date of submission of the 
        application);
            ``(2) a description of how the State educational agency 
        will allocate program funds made available through the grant 
        within the State;
            ``(3) a description of how the State educational agency 
        will use other funds, including other Federal funds, to reduce 
        class sizes and to improve teacher quality and reading 
        achievement within the State; and
            ``(4) an assurance that the State educational agency will 
        submit to the Secretary such reports and information as the 
        Secretary may reasonably require.
    ``(c) Approval of Applications.--The Secretary shall approve a 
State application submitted under this section if the application meets 
the requirements of this section and holds reasonable promise of 
achieving the purposes of this part.
    ``(d) Notification.--Not later than 30 days after the date of 
enactment of the Public Education Reinvestment, Reinvention, and 
Responsibility Act, the Secretary shall provide specific notification 
to each local educational agency eligible to receive funds under this 
part regarding the flexibility provided under section 2207(b)(2)(B) and 
the ability to use such funds to carry out activities described in 
section 2207(b)(1)(C).

``SEC. 2205. WITHIN-STATE ALLOCATIONS.

    ``(a) Allocations to Local Educational Agencies.--Each State 
educational agency receiving a grant under this part for a fiscal 
year--
            ``(1) may reserve not more than 1 percent of the grant 
        funds for the cost of administering this part; and
            ``(2) using the remaining funds, shall make subgrants by 
        allocating to each local educational agency in the State the 
        sum of--
                    ``(A) an amount that bears the same relationship to 
                80 percent of the remainder as the school-age 
                population from families with incomes below the poverty 
                line in the area served by the local educational agency 
                bears to the school-age population from families with 
                incomes below the poverty line in the area served by 
                all local educational agencies in the State; and
                    ``(B) an amount that bears the same relationship to 
                20 percent of the remainder as the enrollment of the 
                school-age population in public and private nonprofit 
                elementary schools and secondary schools in the area 
                served by the local educational agency bears to the 
                enrollment of the school-age population in public and 
                private nonprofit elementary schools and secondary 
                schools in the area served by all local educational 
                agencies in the State.
    ``(b) Reallocation.--If any local educational agency chooses not to 
participate in the program carried out under this part, or fails to 
submit an approvable application under this part, the State educational 
agency shall reallocate the amount such local educational agency would 
have received under subsection (a) to local educational agencies having 
applications approved under section 2206(b), in accordance with 
subsection (a).

``SEC. 2206. LOCAL APPLICATIONS.

    ``(a) In General.--Each local educational agency desiring a 
subgrant under section 2205(a) shall submit an application to the 
appropriate State educational agency at such time, in such manner, and 
containing such information as the State educational agency may 
require, including a description of the local educational agency's 
program to reduce class sizes by hiring additional fully qualified 
teachers.
    ``(b) Approval of Applications.--The State educational agency shall 
approve a local agency application submitted under this section if the 
application meets the requirements of this section and holds reasonable 
promise of achieving the purposes of this part.

``SEC. 2207. USES OF FUNDS.

    ``(a) Administrative Expenses.--Each local educational agency 
receiving a subgrant under section 2205(a) may use not more than 3 
percent of the subgrant funds for a fiscal year for the cost of 
administering this part.
    ``(b) Local Activities.--
            ``(1) In general.--Each local educational agency receiving 
        a subgrant under section 2205(a) may use the subgrant funds 
        for--
                    ``(A) recruiting (including recruiting through the 
                use of signing bonuses, and other financial 
                incentives), hiring, and training fully qualified 
                regular and special education teachers (which may 
                include hiring special education teachers to team-teach 
                with regular teachers in classrooms that contain both 
                students with disabilities and other students) and 
                fully qualified teachers of special-needs students;
                    ``(B) testing new teachers for subject matter 
                knowledge and satisfaction of State certification or 
                licensing requirements consistent with title II of the 
                Higher Education Act of 1965; and
                    ``(C) providing professional development (which may 
                include such activities as the activities described in 
                section 2108, opportunities for teachers to attend 
                multiweek institutes, such as institutes offered during 
                the summer months that provide intensive professional 
                development in partnership with local educational 
                agencies, and initiatives that promote retention and 
                mentoring) to teachers, including special education 
                teachers and teachers of special-needs students, in 
                order to meet the goal of ensuring that all teachers 
                have the necessary subject matter knowledge, teaching 
                knowledge, and teaching skills to teach effectively the 
                academic subjects that the teachers teach, consistent 
                with title II of the Higher Education Act of 1965.
            ``(2) Limitations.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a local educational agency may use 
                not more than a total of 25 percent of the subgrant 
                funds for activities described in subparagraphs (B) and 
                (C) of paragraph (1).
                    ``(B) Exception.--
                            ``(i) In general.--A local educational 
                        agency may use a portion equal to more than 25 
                        percent of the subgrant funds for activities 
                        described in paragraph  (1)(C) if 10 percent or 
more of the teachers in elementary schools served by the agency--
                                    ``(I) have not met applicable State 
                                and local certification requirements 
                                (including certification through State 
                                or local alternative routes); or
                                    ``(II) are teachers for whom the 
                                requirements have been waived.
                            ``(ii) Use of funds.--The local educational 
                        agency shall use the portion referred to in 
                        clause (i)--
                                    ``(I) to help teachers who are not 
                                certified or licensed by the State 
                                become certified or licensed, including 
                                certification through State or local 
                                alternative routes; or
                                    ``(II) to help teachers affected by 
                                class size reduction who lack 
                                sufficient subject matter knowledge to 
                                teach effectively the academic subjects 
                                that the teachers teach, to obtain that 
                                knowledge.
                            ``(iii) Notification.--To be eligible to 
                        use the portion of the funds described in 
                        clause (i) for objectives described in this 
                        subparagraph, the local educational agency 
                        shall notify the State educational agency of 
                        the percentage of the funds that the local 
                        educational agency will use for those 
                        objectives.
            ``(3) Additional uses.--
                    ``(A) In general.--A local educational agency that 
                has already reduced class size in the early elementary 
                school grades to 18 or fewer students (or has already 
                reduced class size to a State or local class size 
                reduction goal that was in effect on the day before the 
                date of enactment of the Department of Education 
                Appropriations Act, 2000, if that State or local goal 
                is 20 or fewer students) may use the subgrant funds--
                            ``(i) to make further class size reductions 
                        in kindergarten or grade 1, 2, or 3;
                            ``(ii) to reduce class size in other 
                        grades; or
                            ``(iii) to carry out activities to improve 
                        teacher quality, including professional 
                        development.
                    ``(B) Professional development.--Even if a local 
                educational agency has already reduced class size in 
                the early elementary school grades to 18 or fewer 
                students and intends to use the subgrant funds to carry 
                out activities to improve teacher quality, including 
                professional development activities, the State 
                educational agency shall make the subgrant under 
                section 2205 to the local educational agency.
    ``(c) Special Rule.--Notwithstanding subsection (b), if the amount 
of the subgrant made to a local educational agency under section 2205 
is less than the starting salary for a new fully qualified teacher 
teaching in a school served by that agency, the agency may use the 
subgrant funds to--
            ``(1) help pay the salary of a full- or part-time teacher 
        hired to reduce class size, and may provide the funds in 
        combination with other Federal, State, or local funds; or
            ``(2) pay for activities described in subsection (b), which 
        may be related to teaching in smaller classes.

``SEC. 2208. PRIVATE SCHOOLS.

    ``If a local educational agency uses funds made available under 
this part for professional development activities, the local 
educational agency shall ensure the equitable participation of private 
nonprofit elementary schools and secondary schools in such activities. 
Section 8503(b)(1) shall not apply to other activities carried out 
under this part.

``SEC. 2209. TEACHER SALARIES AND BENEFITS.

    ``A local educational agency may use grant funds provided under 
this part--
            ``(1) except as provided in paragraph (2), to increase the 
        salaries of, or provide benefits (other than participation in 
        professional development and enrichment programs) to, teachers 
        only if such teachers were hired under this part; and
            ``(2) to pay the salaries of teachers hired with funds made 
        available under section 307 of the Department of Education 
        Appropriations Act, 1999 or under section 310 of the Department 
        of Education Appropriations Act, 2000, who not later than the 
        beginning of the 2002-2003 school year, are fully qualified.

``SEC. 2210. STATE REPORT REQUIREMENTS.

    ``(a) Report on Activities.--A State educational agency receiving 
funds under this part shall submit a report to the Secretary providing 
information about the activities in the State assisted under this part.
    ``(b) Report to Parents.--Each State educational agency or local 
educational agency receiving funds under this part shall publicly issue 
a report to parents of students who attend schools assisted under this 
part describing--
            ``(1) the agency's progress in reducing class size;
            ``(2) the agency's progress in increasing the percentage of 
        classes in core academic areas that are taught by fully 
        qualified teachers; and
            ``(3) the impact, if any, that hiring additional fully 
        qualified teachers and reducing class size has had on 
        increasing student academic achievement in schools served by 
        the agency.
    ``(c) Professional Qualifications Report.--Upon the request of a 
parent of a student attending a school receiving assistance under this 
part, such school shall provide the parent with information regarding 
the professional qualifications of the student's teacher.

``SEC. 2211. SUPPLEMENT NOT SUPPLANT.

    ``Funds made available under this part shall be used to supplement 
and not supplant State and local funds expended for activities 
described in this part.

``SEC. 2212. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$1,623,000,000 for fiscal year 2002, and such sums as may be necessary 
for each of the 4 succeeding fiscal years.''.

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

SEC. 301. LANGUAGE MINORITY STUDENTS.

    Title III (20 U.S.C. 6801 et seq.) is amended--
            (1) by amending the title heading for title III to read as 
        follows:

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

            (2) by repealing section 3101 (20 U.S.C. 6801) and part A 
        (20 U.S.C. 6811 et seq.); and
            (3) by inserting after the title heading for title III (as 
        amended by paragraph (1)) the following:

                  ``PART A--LANGUAGE MINORITY STUDENTS

``SEC. 3101. FINDINGS, POLICY, AND PURPOSE.

    ``(a) Findings.--Congress makes the following findings:
            ``(1)(A) Educating limited English proficient students is 
        an urgent goal for many local educational agencies, but that 
        goal is not being achieved.
            ``(B) Each year, 640,000 limited English proficient 
        students are not served by any sort of program targeted to the 
        students' unique needs.
            ``(C) In 1998, only 15 percent of local educational 
        agencies that applied for related funding through enhancement 
        grants and comprehensive school grants received such funding.
            ``(2)(A) The school dropout rate for Hispanic students, the 
        largest group of limited English proficient students, is 
        approximately 29 percent, and is approximately 44 percent for 
        Hispanics born outside of the United States.
            ``(B) A Department of Education report regarding school 
        dropout rates states that language difficulty `may be a barrier 
        to participation in United States schools'.
            ``(C) Reading ability is a key predictor of graduation and 
        academic success.
            ``(3) Through fiscal year 2001, bilingual education 
        capacity and demonstration grants--
                    ``(A) have spread funding too broadly to make an 
                impact on language instruction educational programs 
                implemented by State educational agencies and local 
                educational agencies; and
                    ``(B) have lacked concrete performance measures.
            ``(4)(A) Since 1979, the number of limited English 
        proficient children in schools in the United States has doubled 
        to more than 3,000,000, and demographic trends indicate the 
        population of limited English proficient children will continue 
        to increase.
            ``(B) Language-minority students in the United States speak 
        virtually all world languages plus many that are indigenous to 
        the United States.
            ``(C) The rich linguistic diversity language-minority 
        students bring to classrooms in the United States enhances the 
        learning environment for all students and should be valued for 
        the significant, positive impact such diversity has on the 
        entire school environment.
            ``(D) Parent and community participation in educational 
        language programs for limited English proficient students 
        contributes to program effectiveness.
            ``(E) The Federal Government has a special and continuing 
        obligation, as reflected in title VI of the Civil Rights Act of 
        1964 and section 204(f) of the Equal Educational Opportunities 
        Act of 1974, to ensure that States and local educational 
        agencies take appropriate action to provide equal educational 
        opportunities to limited English proficient children and youth, 
        and other children and youth.
            ``(F) The Federal Government also has a special and 
        continuing obligation to assist States and local educational 
        agencies, as exemplified by programs authorized under this 
        title, to develop the capacity to provide programs of 
        instruction that offer equal educational opportunities to 
        limited English proficient children and youth, and other 
        children and youth.
            ``(5) Limited English proficient children and youth face a 
        number of challenges in receiving an education that will enable 
        the children and youth to participate fully in society, 
        including--
                    ``(A) disproportionate attendance at high-poverty 
                schools, as demonstrated by the fact that, in 1994, 75 
                percent of limited English proficient students attended 
                schools in which at least half of all students were 
                eligible for free or reduced-price meals;
                    ``(B) the limited ability of parents of such 
                children and youth to participate fully in the 
                education of their children because of the parents' own 
                limited English proficiency;
                    ``(C) a shortage of teachers and other staff who 
                are professionally trained and qualified to serve such 
                children and youth; and
                    ``(D) lack of appropriate performance and 
                assessment standards that distinguish between language 
                ability and academic achievement so that State 
                educational agencies and local educational agencies are 
                equally as accountable for the achievement of limited 
                English proficient students in academic content while 
                the students are acquiring English language skills as 
                the agencies are for enabling the students to acquire 
                those skills.
    ``(b) Policy.--It is the policy of the United States that in order 
to ensure equal educational opportunity for all children and youth, and 
to promote educational excellence, the Federal Government should--
            ``(1) assist State educational agencies, local educational 
        agencies, and community-based organizations to build their 
        capacity to establish, implement, and sustain programs of 
        instruction and English language development for children and 
        youth of limited English proficiency;
            ``(2) hold State educational agencies and local educational 
        agencies accountable for increases in English proficiency and 
        core content knowledge among limited English proficient 
        students; and
            ``(3) promote parental and community participation in 
        limited English proficiency programs.
    ``(c)  Purposes.--The purposes of this part are--
            ``(1) to assist all limited English proficient students to 
        attain English proficiency;
            ``(2) to assist all limited English proficient students to 
        develop high levels of attainment in the core academic subjects 
        so that those students can meet the same challenging State 
        content standards and challenging State student performance 
        standards as all students are expected to meet, as required by 
        section 1111(b)(1);
            ``(3) to assist local educational agencies to develop and 
        enhance their capacity to provide high quality instruction in 
        teaching limited English proficient students to attain the same 
        high levels of academic achievement as other students; and
            ``(4) to provide the assistance described in paragraphs 
        (1), (2), and (3) by--
                    ``(A) streamlining language instruction educational 
                programs into a program carried out through a 
                performance-based grant for State and local educational 
                agencies to help limited English proficient students 
                become proficient in English;
                    ``(B) increasing significantly the amount of 
                Federal assistance provided to local educational 
                agencies serving such students while requiring that 
                State educational agencies and local educational 
                agencies--
                            ``(i) demonstrate improvements in the 
                        English proficiency of such students each 
                        fiscal year; and
                            ``(ii) make adequate yearly progress with 
                        limited English proficient students in the core 
                        academic subjects as described in section 
                        1111(b)(2); and
                    ``(C) providing State educational agencies and 
                local educational agencies with the flexibility to 
                implement instructional programs, tied to 
                scientifically based research, that the agencies 
                believe to be the most effective for teaching English.

``SEC. 3102. DEFINITIONS.

    ``Except as otherwise provided, in this part:
            ``(1) Core academic subject.--The term `core academic 
        subject' has the meaning given the term in section 2002.
            ``(2) Limited english proficient student.--The term 
        `limited English proficient student' means an individual aged 5 
        through 17 enrolled in an elementary school or secondary 
        school--
                    ``(A) who--
                            ``(i) was not born in the United States or 
                        whose native language is a language other than 
                        English;
                            ``(ii)(I) is a Native American or Alaska 
                        Native, or a native resident of the outlying 
                        areas; and
                            ``(II) comes from an environment where a 
                        language other than English has had a 
                        significant impact on such individual's level 
                        of English language proficiency; or
                            ``(iii) is migratory, whose native language 
                        is a language other than English, and who comes 
                        from an environment where a language other than 
                        English is dominant; and
                    ``(B) who has sufficient difficulty speaking, 
                reading, writing, or understanding the English 
                language, and whose difficulties may deny such 
                individual--
                            ``(i) the ability to meet the State's 
                        proficient level of performance on State 
                        assessments described in section 1111(b)(4) in 
                        core academic subjects; or
                            ``(ii) the opportunity to participate fully 
                        in society.
            ``(3) Language instruction educational program.--The term 
        `language instruction educational program' means an 
        instructional course in which a limited English proficient 
        student is placed for the purpose of becoming proficient in the 
        English language.
            ``(4) Scientifically based research.--The term 
        `scientifically based research' has the meaning given the term 
        in section 1705.
            ``(5) Specially qualified agency.--The term `specially 
        qualified agency' means a local educational agency, in a State 
        that does not participate in a program under this part for a 
        fiscal year.
            ``(6) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.

``SEC. 3103. PROGRAM AUTHORIZED.

    ``(a) Grants Authorized.--The Secretary shall award grants, from 
allotments under subsection (b), to each State having a State plan 
approved under section 3105(c), to enable the State to help limited 
English proficient students become proficient in English.
    ``(b) Reservations and Allotments.--
            ``(1) Reservations.--From the amount appropriated under 
        section 3111 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; 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 
        section 3111 for any of the fiscal years 2002 through 2006 that 
        remains after making reservations under paragraph (1), the 
        Secretary shall allot to each State having a State plan 
        approved under section 3105(c) an amount that bears the same 
        relationship to the remainder as the number of limited English 
        proficient students in the State bears to the number of limited 
        English proficient students in all States.
            ``(3) Data.--For the purpose of determining the number of 
        limited English proficient students in a State and in all 
        States for each fiscal year, the Secretary shall use data that 
        will yield the most accurate, up-to-date numbers of such 
        students, including--
                    ``(A) data available from the Bureau of the Census; 
                or
                    ``(B) data submitted to the Secretary by the States 
                to determine the number of limited English proficient 
                students in a State and in all States.
            ``(4) Hold-harmless amounts.--For fiscal year 2002, and for 
        each of the 4 succeeding fiscal years, notwithstanding 
        paragraph (2), the total amount allotted to each State under 
        this subsection shall be not less than 85 percent of the total 
        amount the State was allotted under parts A and B of title VII 
        (as such title was in effect on the day before the date of 
        enactment of the Public Education Reinvestment, Reinvention, 
        and Responsibility Act) for fiscal year 2001.
    ``(c) Direct Awards to Specially Qualified Agencies.--
            ``(1) Nonparticipating state.--If a State educational 
        agency for a fiscal year chooses not to participate in a 
        program under this part, or fails to submit an approvable 
        application under section 3105, a specially qualified agency in 
        such State desiring a grant under this part for the fiscal year 
        shall apply directly to the Secretary to receive a grant under 
        this subsection.
            ``(2) Direct awards.--The Secretary may award, on a 
        competitive basis, the amount the State educational agency is 
        eligible to receive under subsection (b)(2) directly to 
        specially qualified agencies in the State desiring a grant 
        under this part and having an application approved under 
        section 3105(c).
            ``(3) Administrative funds.--A specially qualified agency 
        that receives a direct grant under this subsection may use not 
        more than 1 percent of the grant funds for the administrative 
        costs of carrying out this part in the first year the agency 
        receives a grant under this subsection and 0.5 percent of the 
        funds for such costs in the second and each succeeding fiscal 
        year for which the agency receives such a grant.

``SEC. 3104. WITHIN-STATE ALLOCATIONS.

    ``(a) Grant Awards.--Each State educational agency receiving a 
grant under this part shall use 95 percent of the grant funds to award 
subgrants, from allocations under subsection (b), to local educational 
agencies in the State to carry out the activities described in section 
3107.
    ``(b) Allocation Formula.--Each State educational agency receiving 
a grant under this part shall award grants for a fiscal year by 
allocating to each local educational agency in the State having a plan 
approved under section 3106 in an amount that bears the same 
relationship to the amount of funds appropriated under section 3111 for 
the fiscal year as the population of limited English proficient 
students in schools served by the local educational agency bears to the 
population of limited English proficient students in schools served by 
all local educational agencies in the State.
    ``(c) Reservations.--
            ``(1) State activities.--Each State educational agency or 
        specially qualified agency receiving a grant under this part 
        may reserve not more than 5 percent of the grant funds to carry 
        out activities described in the State plan or specially 
        qualified agency plan submitted under section 3105.
            ``(2) Administrative expenses.--From the amount reserved 
        under paragraph (1), a State educational agency or specially 
        qualified agency may use not more than 2 percent for the 
        planning costs and administrative costs of carrying out the 
        activities described in the State plan or specially qualified 
        agency plan and providing grants to local educational agencies.

``SEC. 3105. STATE AND SPECIALLY QUALIFIED AGENCY PLANS.

    ``(a) Plan Required.--Each State educational agency and specially 
qualified agency desiring a grant under this part shall submit a plan 
to the Secretary at such time, in such manner, and containing such 
information as the Secretary may require.
    ``(b) Contents.--Each State plan submitted under subsection (a) 
shall--
            ``(1) describe how the State or specially qualified agency 
        will--
                    ``(A)(i) establish standards and benchmarks for 
                English language development that are aligned with the 
                State content and student performance standards 
                described in section 1111(b)(1);
                    ``(ii) establish the standards and benchmarks for 
                each of the 4 recognized domains of speaking, 
                listening, reading, and writing; and
                    ``(iii) for each domain, establish at least 3 
                benchmarks, including benchmarks for performance that 
                is not proficient, partially proficient performance, 
                and proficient performance;
                    ``(B) develop high-quality, annual assessments to 
                measure English language proficiency, including 
                proficiency in the 4 recognized domains of speaking, 
                listening, reading, and writing; and
                    ``(C) develop annual performance objectives, based 
                on the English language development standards described 
                in subparagraph (A), to raise the level of English 
                proficiency of each limited English proficient student;
            ``(2) contain an assurance that the State educational 
        agency or specially qualified agency consulted with local 
        educational agencies, education-related community groups and 
        nonprofit organizations, parents, teachers, school 
        administrators, and English language instruction specialists, 
        in setting the performance objectives;
            ``(3) describe how--
                    ``(A) in the case of a State educational agency, 
                the State educational agency will hold local 
                educational agencies and elementary schools and 
                secondary schools accountable for--
                            ``(i) meeting the performance objectives 
                        described in section 3109 for English 
                        proficiency in each of the 4 domains of 
                        speaking, listening, reading, and writing; and
                            ``(ii) making adequate yearly progress with 
                        limited English proficient students in the core 
                        academic subjects as described in section 
                        1111(b)(2); and
                    ``(B) in the case of a specially qualified agency, 
                the agency will hold elementary schools and secondary 
                schools accountable for--
                            ``(i) meeting the performance objectives 
                        described in section 3109 for English 
                        proficiency in each of the 4 domains of 
                        speaking, listening, reading, and writing; and
                            ``(ii) making adequate yearly progress, 
                        including meeting annual numerical goals for 
                        improving the performance of limited English 
                        proficient students on performance standards 
                        described in section 1111(b)(1)(D)(ii);
            ``(4) describe the activities for which assistance is 
        sought, and how the activities will increase the speed and 
        effectiveness with which students learn English;
            ``(5) in the case of a State educational agency, describe 
        how local educational agencies in the State will be given the 
        flexibility to teach English--
                    ``(A) using a language instruction curriculum that 
                is tied to scientifically based research and has been 
                demonstrated to be effective; and
                    ``(B) in the manner the local educational agencies 
                determine to be the most effective; and
            ``(6) describe how--
                    ``(A) in the case of a State educational agency, 
                the State educational agency will--
                            ``(i) provide technical assistance to local 
                        educational agencies and elementary schools and 
                        secondary schools for the purposes of 
                        identifying and implementing English language 
                        instruction educational programs and curricula 
                        that are tied to scientifically based research; 
                        and
                            ``(ii) provide technical assistance to 
                        local educational agencies and elementary 
                        schools and secondary schools for the purposes 
                        of helping limited English proficient students 
                        meet the same challenging State content 
                        standards and challenging State student 
                        performance standards as all students are 
                        expected to meet; and
                    ``(B) in the case of a specially qualified agency, 
                the specially qualified agency will--
                            ``(i) provide technical assistance to 
                        elementary schools and secondary schools served 
                        by the specially qualified agency for the 
                        purposes of identifying and implementing 
                        programs and curricula described in 
                        subparagraph (A)(i); and
                            ``(ii) provide technical assistance in 
                        elementary schools and secondary schools served 
                        by the specially qualified agency for the 
                        purposes described in subparagraph (A)(ii).
    ``(c) Approval.--The Secretary, after using a peer review process, 
shall approve a State plan or a specially qualified agency plan if the 
plan meets the requirements of this section, and holds reasonable 
promise of achieving the purposes described in section 3101(c).
    ``(d) Duration of the Plan.--
            ``(1) In general.--Each State plan or specially qualified 
        agency plan shall--
                    ``(A) remain in effect for the duration of the 
                State educational agency's or specially qualified 
                agency's participation under this part; and
                    ``(B) be periodically reviewed and revised by the 
                State educational agency or specially qualified agency, 
                as necessary, to reflect changes to the State's or 
                specially qualified agency's strategies and programs 
                carried out under this part.
            ``(2) Additional information.--If the State educational 
        agency or specially qualified agency makes significant changes 
        to the plan, such as the adoption of new performance objectives 
        or assessment measures, the State educational agency or 
        specially qualified agency shall submit information regarding 
        the significant changes to the Secretary.
    ``(e) Consolidated Plan.--A State plan submitted under subsection 
(a) may be submitted as part of a consolidated plan under section 8302.
    ``(f) Secretary Assistance.--Pursuant to section 7104(a)(3), the 
Secretary shall provide assistance, if required, in the development of 
English language development standards and English language proficiency 
assessments.

``SEC. 3106. LOCAL PLANS.

    ``(a) Plan Required.--Each local educational agency desiring a 
grant from the State educational agency under section 3104 shall submit 
a plan to the State educational agency at such time, in such manner, 
and containing such information as the State educational agency may 
require.
    ``(b) Contents.--Each local educational agency plan submitted under 
subsection (a) shall--
            ``(1) describe how the local educational agency will use 
        the grant funds to meet the English proficiency performance 
        objectives described in section 3109;
            ``(2) describe how the local educational agency will hold 
        elementary schools and secondary schools accountable for 
        meeting the performance objectives;
            ``(3) contain an assurance that the local educational 
        agency consulted with elementary schools and secondary schools, 
        education-related community groups and nonprofit organizations, 
        institutions of higher education, parents, language instruction 
        teachers, school administrators, and English language 
        instruction specialists, in developing the local educational 
        agency plan;
            ``(4) describe how the local educational agency will use 
        the disaggregated results of the student assessments required 
        under section 1111(b)(4), and other measures or indicators 
        available to the agency, to review annually the progress of 
        each school served by the agency under this part and under 
        title I to determine whether the schools are making the 
        adequate yearly progress necessary to ensure that limited 
        English proficient students attending the schools will meet the 
        State's proficient level of performance on the State assessment 
        described in section 1111(b)(4) within 10 years after the date 
        of enactment of the Public Education Reinvestment, Reinvention, 
        and Responsibility Act; and
            ``(5) describe how the local educational agency will hold 
        elementary schools and secondary schools accountable for making 
        adequate yearly progress with limited English proficient 
        students in the core academic subjects as described in section 
        1111(b)(2).

``SEC. 3107. USES OF FUNDS.

    ``(a) Administrative Expenses.--Each local educational agency 
receiving a grant under section 3104 may use not more than 1 percent of 
the grant funds for a fiscal year for the cost of administering this 
part.
    ``(b) Activities.--Each local educational agency receiving grant 
funds under section 3104 shall use the grant funds that are not used 
under subsection (a)--
            ``(1) to increase limited English proficient students' 
        proficiency in English by providing high-quality language 
        instruction educational programs, such as bilingual education 
        programs and transitional education or English immersion 
        education programs, that are--
                    ``(A) tied to scientifically based research 
                demonstrating the effectiveness of the programs in 
                increasing English proficiency; and
                    ``(B) approved by the State educational agency;
            ``(2) to provide high-quality professional development 
        activities for teachers of limited English proficient students 
        that are--
                    ``(A) designed to enhance the ability of such 
                teachers to understand and use curricula, assessment 
                measures, and instructional strategies for limited 
                English proficient students;
                    ``(B) tied to scientifically based research 
                demonstrating the effectiveness of such activities in 
                increasing students' English proficiency or 
                substantially increasing the subject matter knowledge, 
                teaching knowledge, and teaching skills of such 
                teachers;
                    ``(C) of sufficient intensity and duration (not to 
                include activities such as 1-day or short-term 
                workshops and conferences) to have a positive and 
                lasting impact on the teachers' performance in the 
                classroom, except that this subparagraph shall not 
                apply to an activity that is 1 component described in a 
                long-term, comprehensive professional development plan 
                established by a teacher and the teacher's supervisor 
                based upon an assessment of the needs of the teacher, 
                the supervisor, the students of the teacher, and the 
                local educational agency;
            ``(3) to identify, acquire, and upgrade curricula, 
        instructional materials, educational software, and assessment 
        procedures; and
            ``(4) to provide parent and community participation 
        programs to improve language instruction educational programs 
        for limited English proficient students.

``SEC. 3108. PROGRAM REQUIREMENTS.

    ``(a) Prohibition.--In carrying out this part, the Secretary shall 
neither mandate nor preclude the use of a particular curricular or 
pedagogical approach to educating limited English proficient students.
    ``(b) Teacher English Fluency.--Each local educational agency 
receiving grant funds under section 3104 shall certify to the State 
educational agency that all teachers in any language instruction 
educational program for limited English proficient students funded 
under this part are fluent in English.

``SEC. 3109. PERFORMANCE OBJECTIVES.

    ``(a) In General.--Each State educational agency or specially 
qualified agency receiving a grant under this part shall develop annual 
numerical performance objectives with respect to helping limited 
English proficient students become proficient in English, including 
proficiency in the 4 recognized domains of speaking, listening, 
reading, and writing. For each annual numerical performance objective 
established, the agency shall specify an incremental percentage 
increase for the objective to be attained for each of the fiscal years 
(after the first fiscal year) for which the agency receives a grant 
under this part, relative to the preceding fiscal year, including 
increases in the number of limited English proficient students 
demonstrating an increase in performance on annual assessments in 
speaking, listening, reading, and writing.
    ``(b) Accountability.--Each State educational agency or specially 
qualified agency receiving a grant under this part shall be held 
accountable for meeting the annual numerical performance objectives 
under this part and the adequate yearly progress levels for limited 
English proficient students under clauses (iv) and (vii) of section 
1111(b)(2)(B). Any State educational agency or specially qualified 
agency that fails to meet the annual performance objectives shall be 
subject to sanctions under section 7101.

``SEC. 3110. REGULATIONS AND NOTIFICATION.

    ``(a) Regulation Rule.--In developing regulations under this part, 
the Secretary shall consult with State educational agencies, local 
educational agencies, organizations representing limited English 
proficient individuals, and organizations representing teachers and 
other personnel involved in the education of limited English proficient 
students.
    ``(b) Parental Notification.--
            ``(1) In general.--Each local educational agency shall 
        notify parents of a student participating in a language 
        instruction educational program under this part of--
                    ``(A) the student's level of English proficiency, 
                how such level was assessed, the status of the 
                student's academic achievement, and the implications of 
                the student's educational strengths and needs for age- 
                and grade-appropriate academic attainment, promotion, 
                and graduation;
                    ``(B)(i) the programs that 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
                    ``(ii) in the case of a student with a disability 
                who participates in the language instruction 
                educational program, how the program meets the 
                objectives of the individualized education program of 
                the student; and
                    ``(C)(i) the instructional goals of the language 
                instruction educational program in which the student 
                participates, and how the program will specifically 
                help the limited English proficient student learn 
                English and meet age-appropriate standards for grade 
                promotion and graduation;
                    ``(ii) the characteristics, benefits, and past 
                academic results of the language instruction 
                educational program and of instructional alternatives; 
                and
                    ``(iii) the reasons the student was identified as 
                being in need of a language instruction educational 
                program.
            ``(2) Option to decline.--
                    ``(A) In general.--Each parent described in 
                paragraph (1) shall also be informed that the parent 
                has the option of declining the enrollment of the 
                student in a language instruction educational program, 
                and shall be given an opportunity to decline such 
                enrollment if the parent so chooses.
                    ``(B) Obligations.--A local educational agency 
                shall not be relieved of any of the agency's 
                obligations under title VI of the Civil Rights Act of 
                1964 if a parent chooses not to enroll a student in a 
                language instruction educational program.
            ``(3) Receipt of information.--A parent described in 
        paragraph (1) shall receive the information required by this 
        subsection in a manner and form understandable to the parent 
        including, if necessary and to the extent feasible, receiving 
        the information in the native language of the parent. At a 
        minimum, the parent shall receive--
                    ``(A) timely information about programs funded 
                under this part; and
                    ``(B) if the parent desires, notice of 
                opportunities for regular meetings for the purpose of 
                formulating and responding to recommendations from 
                parents of students assisted under this part.
            ``(4) Special rule.--A student shall not be admitted to, or 
        excluded from, any federally assisted  language instruction 
educational program solely on the basis of a surname or language-
minority status.
            ``(5) Limitations on conditions.--Nothing in this part 
        shall be construed to authorize an officer or employee of the 
        Federal Government to mandate, direct, or control a State's, 
        local educational agency's, elementary school's, or secondary 
        school's specific challenging English language development 
        standards or assessments, curricula, or program of instruction, 
        as a condition of eligibility to receive grant funds under this 
        part.

``SEC. 3111. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$1,000,000,000 for fiscal year 2002, and such sums as may be necessary 
for each of the 4 succeeding fiscal years.''.

SEC. 302. EMERGENCY IMMIGRANT EDUCATION PROGRAM.

    (a) Repeals, Transfers, and Redesignations.--Title III (20 U.S.C. 
6801 et seq.) is further amended--
            (1) by repealing part B (20 U.S.C. 6891 et seq.), part C 
        (20 U.S.C. 6921 et seq.), part D (20 U.S.C. 6951 et seq.), part 
        E (20 U.S.C. 6971 et seq.), and part F, as added by section 
        1711 of division B of the Miscellaneous Appropriations Act, 
        2001 (as enacted into law by section 1(a)(4) of Public Law 106-
        554);
            (2) by transferring part C of title VII (20 U.S.C. 7541 et 
        seq.) to title III and inserting such part after part A (as 
        inserted by section 301(3));
            (3) by redesignating part C of title VII (as transferred by 
        paragraph (2)) as part B, and redesignating the references to 
        such part C as the references to such part B; and
            (4) by redesignating sections 7301 through 7309 (20 U.S.C. 
        7541, 7549) (as transferred by paragraph (2)) as sections 3201 
        through 3209, respectively, and redesignating accordingly the 
        references to such sections 7301 through 7309.
    (b) Amendments.--Part B of title III (as so transferred and 
redesignated) is amended--
            (1) in section 3205(a)(2) (as redesignated by subsection 
        (a)(4)), by striking ``the Goals 2000: Educate America Act,''; 
        and
            (2) in section 3209 (as redesignated by subsection (a)(4)), 
        by striking ``$100,000,000'' and all that follows through 
        ``necessary for'' and inserting ``such sums as may be necessary 
        for fiscal year 2002 and''.

SEC. 303. INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION.

    (a) Repeals, Transfers, and Redesignations.--Title III (20 U.S.C 
6801 et seq.) is further amended--
            (1) by transferring title IX (20 U.S.C. 7801 et seq.) to 
        title III and inserting such title after part B (as 
        redesignated by section 302(a)(3));
            (2) by redesignating subparts 1 through 6 of part A of 
        title IX (as transferred by paragraph (1)) as chapters I 
        through VI, respectively, and redesignating accordingly the 
        references to such subparts as the references to such chapters;
            (3) by redesignating parts A through C of title IX (as 
        transferred by paragraph (1)) as subparts 1 through 3, 
        respectively, and redesignating accordingly the references to 
        such parts as the references to such subparts;
            (4) by redesignating title IX (as transferred by paragraph 
        (1)) as part C, and redesignating accordingly the references to 
        such title as the references to such part;
            (5) by redesignating sections 9101 and 9102 (20 U.S.C. 
        7801, 7802) (as transferred by paragraph (1)) as sections 3301 
        and 3302, respectively, and redesignating accordingly the 
        references to such sections 9101 and 9102;
            (6) by redesignating sections 9111 through 9118 (20 U.S.C. 
        7811, 7818) (as transferred by paragraph (1)) as sections 3311 
        through 3318, respectively, and redesignating accordingly the 
        references to such sections 9111 through 9118;
            (7) by redesignating sections 9121 through 9125 (20 U.S.C. 
        7831, 7835) (as transferred by paragraph (1)) as sections 3321 
        through 3325, and redesignating accordingly the references to 
        such sections 9121 through 9125;
            (8) by redesignating sections 9131 and 9141 (20 U.S.C. 
        7851, 7861) (as transferred by paragraph (1)) as sections 3331 
        and 3341, respectively, and redesignating accordingly the 
        references to such sections 9131 and 9141;
            (9) by redesignating sections 9151 through 9154 (20 U.S.C. 
        7871, 7874) (as transferred by paragraph (1)) as sections 3351 
        through 3354, respectively, and redesignating accordingly the 
        references to such sections 9151 through 9154;
            (10) by redesignating sections 9161 and 9162 (20 U.S.C. 
        7881, 7882) (as transferred by paragraph (1)) as sections 3361 
        and 3362, respectively, and redesignating accordingly the 
        references to such sections 9161 and 9162;
            (11) by redesignating sections 9201 through 9212 (20 U.S.C. 
        7901, 7912) (as transferred by paragraph (1)) as sections 3401 
        through 3412, respectively, and redesignating accordingly the 
        references to such sections 9201 through 9212; and
            (12) by redesignating sections 9301 through 9308 (20 U.S.C. 
        7931, 7938) (as transferred by paragraph (1)) as sections 3501 
        through 3508, and redesignating accordingly the references to 
        such sections 9301 through 9308.
    (b) Amendments.--Part C of title III (as so transferred and 
redesignated) is amended--
            (1) by amending section 3314(b)(2)(A) (as redesignated by 
        subsection (a)(6)) to read as follows:
            ``(2)(A) is consistent with, and promotes the goals in, the 
        State and local plans under sections 1111 and 1112;'';
            (2) by amending section 3325(e) (as redesignated by 
        subsection (a)(7)) to read as follows:
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this chapter 
for fiscal year 2002 and each of the 4 succeeding years.'';
            (3) in section 3361(4)(E) (as redesignated by subsection 
        (a)(10)), by striking ``the Act entitled the  `Improving 
America's Schools Act of 1994''' and inserting ``the Public Education 
Reinvestment, Reinvention, and Responsibility Act'';
            (4) by amending section 3362 (as redesignated by subsection 
        (a)(10)) to read as follows:

``SEC. 3362. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out chapters I through V of this 
subpart, there are authorized to be appropriated to the Department of 
Education such sums as may be necessary for fiscal year 2002 and each 
of the 4 succeeding years.'';
            (5) in section 3404 (as redesignated by subsection 
        (a)(11))--
                    (A) in subsection (i), by striking ``Improving 
                America's Schools Act of 1994'' and inserting ``Public 
                Education Reinvestment, Reinvention, and Responsibility 
                Act''; and
                    (B) in subsection (j), by striking ``$500,000 for 
                fiscal year 1995, and such sums as may be necessary'' 
                and inserting ``such sums as may be necessary for 
                fiscal year 2002, and'';
            (6) in section 3405(c) (as redesignated by subsection 
        (a)(11)), by striking ``$6,000,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and'';
            (7) in section 3406(e) (as redesignated by subsection 
        (a)(11)), by striking ``$2,000,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and'';
            (8) in section 3407(e) (as redesignated by subsection 
        (a)(11)), by striking ``$1,500,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and'';
            (9) in section 3408(c) (as redesignated by subsection 
        (a)(11)), by striking ``$2,000,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and'';
            (10) in section 3409(d) (as redesignated by subsection 
        (a)(11)), by striking ``$2,000,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and'';
            (11) in section 3410(d) (as redesignated by subsection 
        (a)(11)), by striking ``$1,000,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and'';
            (12) in section 3504(c) (as redesignated by subsection 
        (a)(12)), by striking ``$5,000,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and'';
            (13) in section 3505(e) (as redesignated by subsection 
        (a)(12)), by striking ``$2,000,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and''; and
            (14) in section 3506(d) (as redesignated by subsection 
        (a)(12)), by striking ``$1,000,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and''.

                     TITLE IV--PUBLIC SCHOOL CHOICE

SEC. 401. PUBLIC SCHOOL CHOICE.

    (a) Magnet Schools Amendments.--Section 5113(a) (20 U.S.C. 7213(a)) 
is amended--
            (1) by striking ``$120,000,000'' and inserting 
        ``$130,000,000''; and
            (2) by striking ``1995'' and inserting ``2002''.
    (b) Charter School Amendments.--Section 10311 (20 U.S.C. 8067) is 
amended--
            (1) by striking ``$100,000,000'' and inserting 
        ``$200,000,000''; and
            (2) by striking ``1999'' and inserting ``2002''.
    (c) Repeals, Transfers, and Redesignations.--The Act (20 U.S.C. 
6301 et seq.) is amended--
            (1) by amending the heading for title IV (20 U.S.C. 7101 et 
        seq.) to read as follows:

                  ``TITLE IV--PUBLIC SCHOOL CHOICE'';

            (2) by amending section 4001 to read as follows:

``SEC. 4001. FINDINGS, POLICY, AND PURPOSE.

    ``(a) Findings.--Congress makes the following findings:
            ``(1)(A) Charter schools and magnet schools are an integral 
        part of the educational system in the United States.
            ``(B) Thirty-four States and the District of Columbia have 
        established charter schools.
            ``(C) Magnet schools have been established throughout the 
        United States.
            ``(D) A Department of Education evaluation of charter 
        schools shows that 59 percent of charter schools reported that 
        lack of start-up funds posed a difficult or very difficult 
        challenge for the school.
            ``(2) State educational agencies and local educational 
        agencies should hold all schools accountable for the improved 
        performance of all students, including students attending 
        charter schools and magnet schools, using State standards and 
        student assessment measures.
            ``(3) Transportation is an important and critical component 
        of school choice. Local educational agencies have a 
        responsibility to provide transportation costs to ensure that 
        all children receive equal access to high quality schools.
            ``(4) School report cards constitute the key informational 
        component used by parents for effective public school choice.
    ``(b) Policy.--It is the policy of the United States--
            ``(1) to support and stimulate improved public school 
        performance through increased public elementary school and 
        secondary school competition and increased Federal financial 
        assistance; and
            ``(2) to provide parents with more choices among public 
        school options.
    ``(c) Purposes.--The purposes of this title are as follows:
            ``(1) To consolidate Federal law regarding public school 
        choice programs into 1 title.
            ``(2) To increase Federal assistance for magnet schools and 
        charter schools.
            ``(3) To give parents more options and help parents make 
        better and more informed choices by--
                    ``(A) providing continued support for and financial 
                assistance for magnet schools;
                    ``(B) providing continued support for and expansion 
                of charter schools and charter school districts; and
                    ``(C) providing financial assistance to States and 
                local educational agencies for the development of local 
                educational agency and school report cards.'';
            (3) by repealing sections 4002 through 4004 (20 U.S.C. 
        7102, 7104), and part A (20 U.S.C. 7111 et seq.), of title IV;
            (4) by transferring part A of title V (20 U.S.C. 7201 et 
        seq.) to title IV, inserting such part A after section 4001, 
        and redesignating the references to part A of title V as the 
        references to part A of title IV;
            (5) by redesignating sections 5101 through 5113 (20 U.S.C. 
        7201, 7213) (as transferred by paragraph (4)) as sections 4101 
        through 4113, respectively, and by redesignating accordingly 
        the references to such sections 5105 through 5113;
            (6) by transferring part C of title X (20 U.S.C. 8061 et 
        seq.) to title IV and inserting such part C after part A of 
        title IV (as transferred by paragraph (4));
            (7) by redesignating part C of title IV (as transferred by 
        paragraph (6)) as part B of title IV, and redesignating 
        accordingly the references to such part C;
            (8) by redesignating sections 10301 through 10311 (20 
        U.S.C. 8061, 8067) (as transferred by paragraph (6)) as 
        sections 4201 through 4211, respectively, and by redesignating 
        accordingly the references to such sections 10301 through 
        10311; and
            (9) by redesignating sections 10321 through 10331 (as added 
        by section 322 of the Department of Education Appropriations 
        Act, 2001 (as enacted into law by section 1(a)(1) of Public Law 
        106-554) and transferred by paragraph (6)) as sections 4221 
        through 4231, respectively, and by redesignating accordingly 
        the references to such sections 10321 through 10331.

SEC. 402. DEVELOPMENT OF PUBLIC SCHOOL CHOICE PROGRAMS; REPORT CARDS.

    Title IV (20 U.S.C. 7101 et seq.) is further amended by adding at 
the end the following:

         ``PART C--DEVELOPMENT OF PUBLIC SCHOOL CHOICE PROGRAMS

``SEC. 4301. DEFINITIONS.

    ``In this part:
            ``(1) High-poverty local educational agency.--The term 
        `high-poverty local educational agency' means a local 
        educational agency serving a school district in which the 
        percentage of children, ages 5 to 17, from families with 
        incomes below the poverty line is 20 percent or more.
            ``(2) Poverty line.-- The term `poverty line' means the 
        income official poverty line (as defined by the Office of 
        Management and Budget, and revised annually in accordance with 
        section 673(2) of the Community Services Block Grant Act (42 
        U.S.C. 9902(2)) applicable to a family of the size involved, 
        for the most recent year for which satisfactory data are 
        available.

``SEC. 4302. GRANTS AUTHORIZED.

    ``(a) In General.--From amounts made available to carry out this 
part for a fiscal year under section 4306, and not reserved under 
section 4305, the Secretary is authorized to award grants, on a 
competitive basis, to State educational agencies and local educational 
agencies to enable the local educational agencies to develop local 
public school choice programs.
    ``(b) Duration.--Grants awarded under this part may be awarded for 
periods of not more than 3 years.

``SEC. 4303. USES OF FUNDS.

    ``(a) In General.--
            ``(1) Public school choice.--Funds made available under 
        this part may be used to develop, implement, evaluate, 
        demonstrate, and disseminate information on, innovative 
        approaches to promote public school choice, including the 
        design and development of new public school choice options, the 
        development of new strategies for overcoming barriers to 
        effective public school choice, and the design and development 
        of public school choice systems that promote high standards for 
        all students and the continuous improvement of all public 
        schools.
            ``(2) Innovative approaches.--Such approaches, which may be 
        carried out at the school, local educational agency, and State 
        levels, may include--
                    ``(A) universal public school choice programs that 
                serve to make every school in a school district, group 
                of school districts, or a State, a school of choice;
                    ``(B) interdistrict and intradistrict approaches to 
                public school choice, including approaches that 
                increase equal access to high quality educational 
                programs and diversity in schools;
                    ``(C) public elementary school and secondary school 
                programs that--
                            ``(i) involve partnerships that include 
                        institutions of higher education; and
                            ``(ii) are located on the campuses of the 
                        institutions;
                    ``(D) programs that allow students in public 
                secondary schools to enroll in postsecondary courses 
                and to receive both secondary and postsecondary 
                academic credit;
                    ``(E) approaches in which State educational 
                agencies or local educational agencies form 
                partnerships with public or private employers, to 
                create public schools at parents' places of employment, 
                referred to as worksite satellite schools; and
                    ``(F) approaches to school desegregation that 
                provide students and parents choice through strategies 
                other than magnet schools.
    ``(b) Transportation.--Funds made available under this part may be 
used for providing transportation services or paying for the cost of 
transportation for students, except that not more than 10 percent of 
the funds received under this part shall be used by a State educational 
agency or local educational agency to provide such services or pay for 
such cost.
    ``(c) Supplement, Not Supplant.--Funds made available under this 
part shall be used to supplement and not supplant State and local 
public funds expended for public school choice programs.

``SEC. 4304. GRANT APPLICATION; PRIORITIES.

    ``(a) Application Required.--A State educational agency or local 
educational agency desiring 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 require.
    ``(b) Application Contents.--The application shall include--
            ``(1) a description of the program for which the agency 
        seeks the grant the goals for such program;
            ``(2) a description of how the program will be coordinated 
        with, and will complement and enhance, other related Federal 
        and non-Federal programs;
            ``(3) if the program involves partners, the name of each 
        partner and a description of the partner's responsibilities;
            ``(4) a description of the policies and procedures the 
        applicant will use to ensure--
                    ``(A) accountability for results, including goals 
                and performance indicators; and
                    ``(B) that the program is open and accessible to, 
                and will promote high academic standards for, all 
                students;
            ``(5) information demonstrating that the applicant will 
        provide transportation services or the cost of transportation 
        to ensure that all students receive equal access to high 
        quality schools; and
            ``(6) such other information as the Secretary may require.
    ``(c) Priorities.--
            ``(1) Low-performing schools.--In making grants under this 
        part, the Secretary shall give priority to an agency submitting 
        an application for a program for a local educational agency 
        serving schools designated as low-performing.
            ``(2) High-poverty agencies.--In making grants under this 
        part, the Secretary shall give priority to an agency submitting 
        an application for a program for a high-poverty local 
        educational agency.
            ``(3) Partnerships.--In making grants under this part, the 
        Secretary may give priority to an agency submitting an 
        application demonstrating that the applicant will carry out the 
        applicant's program in partnership with 1 or more public or 
        private agencies, organizations, or institutions, such as 
        institutions of higher education and public or private 
        employers.

``SEC. 4305. EVALUATION, TECHNICAL ASSISTANCE, AND DISSEMINATION.

    ``(a) Reservation for Evaluation, Technical Assistance, and 
Dissemination.--From the amount appropriated under section 4306 for any 
fiscal year, the Secretary may reserve not more than 5 percent to carry 
out evaluations under subsection (b), to provide technical assistance, 
and to disseminate information.
    ``(b) Evaluations.--The Secretary may use funds reserved under 
subsection (a) to carry out 1 or more evaluations of programs assisted 
under this part, which shall, at a minimum, address--
            ``(1) how, and the extent to which, the programs supported 
        with funds under this part promote educational equity and 
        excellence; and
            ``(2) the extent to which public schools of choice 
        supported with funds under this part are--
                    ``(A) held accountable to the public;
                    ``(B) effective in improving public education; and
                    ``(C) open and accessible to all students.

``SEC. 4306. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$200,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of the 4 succeeding fiscal years.

                         ``PART D--REPORT CARDS

``SEC. 4401. REPORT CARDS.

    ``(a) Grants Authorized.--The Secretary shall award grants, from 
allotments made under subsection (b), to States, local educational 
agencies, and public schools receiving assistance under this Act to 
enable the States, agencies, and schools to publish annually reports 
and report cards concerning the agencies and schools.
    ``(b) Reservations and Allotments.--
            ``(1) Reservations.--From the amount appropriated under 
        subsection (k) 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 (k) for a fiscal year and remaining after the 
        Secretary makes reservations under paragraph (1), the Secretary 
        shall allot to each State receiving assistance under this Act 
        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 under 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.--
            ``(1) Reports required.--
                    ``(A) In general.--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 with respect to all public elementary 
                schools and secondary schools within the State that 
                receive funds under this Act.
                    ``(B) State report cards on education.--In the case 
                of a State that publishes State report cards on 
                education, the State shall meet the requirements of 
                subparagraph (A) by including in such report cards the 
                information described in paragraphs (3) through (5) for 
                all public schools and local educational agencies in 
                the State that receive funds under this Act.
                    ``(C) Report cards on all public schools.--In the 
                case of a State that publishes report cards on all 
                public elementary schools and secondary schools in the 
                State, the State shall meet the requirements of 
                subparagraph (A) by including in the report cards, at a 
                minimum, the information described in paragraphs (3) 
                through (5) for all public schools and local 
                educational agencies in the State that receive funds 
                under this Act.
                    ``(D) Publication through other means.--In the 
                event that the State does not publish a report card 
                described in subparagraph (B) or (C), the State shall, 
                not later than the beginning of the 2002-2003 school 
                year, meet the requirements of subparagraph (A) by 
                publicly reporting the information described in 
                paragraphs (3) through (5) for all public schools and 
                local educational agencies in the State that receive 
                funds under this Act.
            ``(2) Implementation; requirements.--The State shall ensure 
        implementation at the State, local, and school levels of the 
        activities necessary to enable the State to make the reports 
        described in paragraph (1).
            ``(3) Required information.--Each State described in 
        paragraph (1)(A) shall, at a minimum, include in the annual 
        State report information on each local educational agency and 
        public school that receives funds under this Act, including 
        information regarding--
                    ``(A)(i) student performance on statewide 
                assessments for the year for which the annual State 
                report is made, and the preceding year, in at least 
                English language arts, mathematics, and (in each State 
                report for a school year after the 2006-2007 school 
                year) science, including--
                            ``(I) a comparison of the proportions of 
                        students who performed at the State's basic, 
                        proficient, and advanced levels of performance 
                        in each academic subject, for each grade level 
                        for which State assessments are required under 
                        section 1111(b)(4) for the year for which the 
                        report is prepared, with proportions in each of 
                        the same 3 levels in each academic subject at 
                        the same grade levels in the preceding school 
                        year; and
                            ``(II) a statement of the percentage of 
                        students not tested and a listing of categories 
                        of the reasons why such students were not 
                        tested; and
                    ``(ii) the most recent 3-year trend in the 
                percentage of students performing at the State's basic, 
                proficient, and advanced levels of performance, for 
                each grade level for which State assessments are 
                required under section 1111(b)(4), in each academic 
                subject, including at least--
                            ``(I) English language arts;
                            ``(II) mathematics; and
                            ``(III) (in each State report for a school 
                        year after the 2007-2008 school year) science;
                    ``(B) student retention rates in each grade, the 
                number of students completing advanced placement 
                courses, and 4-year graduation rates;
                    ``(C) the professional qualifications of teachers 
                in the aggregate, including the percentage of teachers 
                teaching with emergency or provisional credentials, the 
                percentage of class sections not taught by fully 
                qualified teachers, and the percentage of teachers who 
                are fully qualified; and
                    ``(D) the professional qualifications of 
                paraprofessionals in the aggregate, the number of 
                paraprofessionals in the aggregate, and the ratio of 
                paraprofessionals to teachers in the classroom.
            ``(4) Student data.--Student data in each report shall 
        contain disaggregated results for the following categories:
                    ``(A) Racial and ethnic groups.
                    ``(B) Gender groups.
                    ``(C) Economically disadvantaged students, as 
                compared to students who are not economically 
                disadvantaged.
                    ``(D) Students with limited English proficiency, as 
                compared with students who are proficient in English.
            ``(5) Optional information.--A State may include in the 
        State annual report any other information the State determines 
        appropriate to reflect school quality and school achievement, 
        including by grade level information on--
                    ``(A) average class size; and
                    ``(B) school safety, such as the incidence of 
                school violence and drug and alcohol abuse, and the 
                incidence of student suspensions and expulsions.
            ``(6) Waiver.--The Secretary may grant a waiver to a State 
        seeking a waiver of the requirements of this subsection, if the 
        State demonstrates to the Secretary that--
                    ``(A) the content of State reports meets the goals 
                of this part; and
                    ``(B) the State is taking identifiable steps to 
                meet the requirements of this subsection.
    ``(f) Local Educational Agency and School Report Cards.--
            ``(1) Report card required.--
                    ``(A) In general.--The State shall ensure that each 
                local educational agency, public elementary school, or 
                public secondary school in the State that receives 
                funds under this Act, collects appropriate data and 
                publishes an annual report card consistent with this 
                subsection.
                    ``(B) Required information.--Each local educational 
                agency, elementary school, and secondary school 
                described in subparagraph (A) shall, at a minimum, 
                include in its annual report card--
                            ``(i) the information described in 
                        paragraphs (3) and (4) of subsection (e) for 
                        each local educational agency and school, as 
                        appropriate;
                            ``(ii) 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 
                                and corrective action, 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 that shows 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;
                            ``(iii) in the case of an elementary school 
                        or a secondary school--
                                    ``(I) information regarding whether 
                                the school has been identified for 
                                school improvement or corrective 
                                action; and
                                    ``(II) information that shows 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
                            ``(iv) other appropriate information, 
                        whether or not the information is included in 
                        the annual State report.
            ``(2) Special rule.--A local educational agency that issues 
        report cards for all public elementary schools and secondary 
        schools served by the agency shall include, at a minimum, the 
        information described in paragraphs (3) through (5) of 
        subsection (e) for all public schools that receive funds under 
        this Act.
    ``(g) Dissemination and Accessibility of Reports and Report 
Cards.--
            ``(1) Requirements.--Annual reports and 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 reports.--State annual reports 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 all parents of students attending 
        such schools, and made broadly available to the public through 
        means such as posting on the Internet and distribution to the 
        media, and through public agencies.
            ``(4) School report cards.--Elementary school and secondary 
        school report cards under subsection (f) shall be disseminated 
        to all parents of students attending that school, and made 
        broadly available to the public, through means such as posting 
        on the Internet and distribution to the media, and through 
        public agencies.
    ``(h) Parents Right-to-Know.--
            ``(1) Qualifications.--A local educational agency that 
        receives funds under part A of title I or part A of title II 
        shall provide, on request, in an understandable and uniform 
        format, to any parent of a student attending any school served 
        by the agency and receiving funds under part A of title I or 
        part  A of title II, information regarding the professional 
qualifications of the student's classroom teachers. The information 
shall describe, at a minimum--
                    ``(A) whether the teacher is fully qualified, as 
                defined in section 2002, for the grade levels and 
                academic subjects in which the teacher teaches;
                    ``(B) whether the teacher is teaching under 
                emergency or other provisional status through which 
                State certification or licensing criteria are waived;
                    ``(C) the major in which the teacher received a 
                baccalaureate degree, any graduate degree or 
                certification held by the teacher, and the field of 
                discipline of each such degree or certification; and
                    ``(D) whether the student is provided services by 
                paraprofessionals, and the qualifications of any such 
                paraprofessional.
            ``(2) Additional information.--In addition to the 
        information described in paragraph (1), and the information 
        provided in reports and report cards under this part, a school 
        that receives funds under part A of title I or part A of title 
        II shall provide, to the extent practicable, to each individual 
        parent (including a guardian) of a student attending the 
        school--
                    ``(A) information on the level of performance of 
                the student on each of the State assessments required 
                under section 1111(b)(4); and
                    ``(B) if the student was assigned to or taught for 
                2 or more consecutive weeks by a substitute teacher or 
                by a teacher who is not fully qualified, timely notice 
                about the teacher involved.
    ``(i) Coordination of State Plan Content.--A State shall include in 
the State's plan under part A of title I or part A of title II, an 
assurance that the State has in effect a policy that meets the 
requirements of this section.
    ``(j) Privacy.--Information collected under this section shall be 
collected and disseminated in a manner that protects the privacy of 
individuals.
    ``(k) 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.
    ``(l) Definition.--In this section, the term `State' means each of 
the several States of the United States, the District of Columbia, and 
the Commonwealth of Puerto Rico.''.

                          TITLE V--IMPACT AID

SEC. 501. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.

    Section 8002 (20 U.S.C. 7702), as amended by section 1803 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(Public Law 106-398), is amended--
            (1) in subsection (h)(4), by striking subparagraph (B) and 
        inserting the following:
                    ``(B) the Secretary shall make a payment to each 
                local educational agency that is eligible to receive a 
                payment under this section for the fiscal year involved 
                in an amount that bears the same relation to 75 percent 
                of the remainder as a percentage share determined for 
                the local educational agency (as determined by dividing 
                the maximum amount that such agency is eligible to 
                receive under subsection (b) by the total maximum 
                amounts that all such local educational agencies are 
                eligible to receive under such subsection) bears to the 
                percentage share determined (in the same manner) for 
                all local educational agencies eligible to receive a 
                payment under this section for the fiscal year 
                involved, except that for purposes of calculating a 
                local educational agency's maximum payment, data from 
                the most current fiscal year shall be used.''; and
            (2) by adding at the end the following:
    ``(n) Loss of Eligibility.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, the Secretary shall make the following minimum 
        payments for each fiscal year to each local educational agency 
        described in paragraph (2):
                    ``(A) For the first fiscal year following the loss 
                of eligibility (as described in paragraph (2)), an 
                amount equal to 90 percent of the amount received in 
                the final fiscal year of eligibility.
                    ``(B) For the second fiscal year following the loss 
                of eligibility (as described in paragraph (2)), an 
                amount equal to 75 percent of the amount received in 
                the final fiscal year of eligibility.
                    ``(C) For the third fiscal year following the loss 
                of eligibility (as described in paragraph (2)), an 
                amount equal to 50 percent of the amount received in 
                the final fiscal year of eligibility.
            ``(2) Eligible local educational agencies.--A local 
        educational agency described in this paragraph is an agency 
        that--
                    ``(A) was eligible for, and received, a payment 
                under this section for fiscal year 2002; and
                    ``(B) beginning in fiscal year 2003 or a subsequent 
                fiscal year, is no longer eligible for payments under 
                this section as provided for in subsection (a)(1)(C) as 
                a result of the transfer of the Federal property 
                involved to a non-Federal entity.''.

SEC. 502. REPEAL OF SPECIAL RULE RELATING TO THE COMPUTATION OF 
              PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.

    Section 8003(a) (20 U.S.C. 7703(a)) is amended by striking 
paragraph (3).

SEC. 503. EXTENSION OF AUTHORIZATION OF APPROPRIATIONS.

    Section 8014 (20 U.S.C. 7714), as amended by section 1817 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(Public Law 106-398), is amended--
            (1) in subsection (a), by striking ``three succeeding'' and 
        inserting ``six succeeding'';
            (2) in subsection (b), by striking ``three succeeding'' and 
        inserting ``six succeeding'';
            (3) in subsection (c), by striking ``three succeeding'' and 
        inserting ``six succeeding'';
            (4) in subsection (e), by striking ``three succeeding'' and 
        inserting ``six succeeding'';
            (5) in subsection (f), by striking ``three succeeding'' and 
        inserting ``six succeeding''; and
            (6) in subsection (g), by striking ``three succeeding'' and 
        inserting ``six succeeding''.

SEC. 504. REPEALS, TRANSFERS, AND REDESIGNATIONS.

    The Act (20 U.S.C. 6301 et seq.) is amended--
            (1) by repealing title V (20 U.S.C. 7201 et seq.);
            (2) by redesignating title VIII (20 U.S.C. 7701 et seq.) as 
        title V, and transferring the title to follow title IV (as 
        amended by section 402);
            (3) by redesignating references to title VIII as references 
        to title V (as redesignated and transferred by paragraph (2)); 
        and
            (4) by redesignating sections 8001 through 8005, and 8007 
        through 8014 (20 U.S.C. 7701, 7714) (as transferred by 
        paragraph (2)) as sections 5001 through 5005, and 5007 through 
        5014, respectively, and redesignating accordingly the 
        references to such sections 8001 through 8005 and 8007 through 
        8014.

      TITLE VI--HIGH PERFORMANCE AND QUALITY EDUCATION INITIATIVES

SEC. 601. HIGH PERFORMANCE AND QUALITY EDUCATION INITIATIVES.

    Title VI (20 U.S.C. 7301 et seq.) is amended to read as follows:

     ``TITLE VI--HIGH PERFORMANCE AND QUALITY EDUCATION INITIATIVES

``SEC. 6001. FINDINGS, POLICY, AND PURPOSE.

    ``(a) Findings.--Congress makes the following findings:
            ``(1)(A) The educators most familiar with schools, 
        including school superintendents, principals, teachers, and 
        school support personnel, have critical roles in knowing what 
        students need and how best to meet the educational needs of 
        students.
            ``(B) Local educational agencies should therefore have 
        primary responsibility for deciding how to use funds.
            ``(2)(A) Since the Elementary and Secondary Education Act 
        of 1965 was first authorized in 1965, the Federal Government 
        has created numerous grant programs, each of which was created 
        to address 1 among the myriad challenges and problems facing 
        education.
            ``(B) Only a few of the Federal grant programs established 
        before the date of enactment of the Public Education 
        Reinvestment, Reinvention, and Responsibility Act can be tied 
        to significant quantitative results.
            ``(C) Because Federal education dollars are distributed 
        through a patchwork of programs, with each program having a set 
        of requirements and restrictions, local educational agencies 
        and schools have found it difficult to leverage funds for 
        maximum impact.
            ``(D) In many cases, Federal education dollars distributed 
        through competitive grant programs are too diffused to provide 
        a true impact at the school level.
            ``(E) As a result of the Federal elementary and secondary 
        education policies in place before the date of enactment of the 
        Public Education Reinvestment, Reinvention, and Responsibility 
        Act, the focus of Federal, State, and local educational 
        agencies has been diverted from comprehensive student 
        achievement to administrative compliance.
            ``(3)(A) Every elementary school and secondary school 
        should provide a drug- and violence-free learning environment.
            ``(B) The widespread illegal use of alcohol and drugs among 
        the Nation's secondary school students, and increasingly among 
        elementary school students, constitutes a grave threat to 
        students' physical and mental well-being, and significantly 
        impedes the learning process.
            ``(C) Drug and violence prevention programs are essential 
        components of a comprehensive strategy to promote school 
        safety, youth development, and positive school outcomes, and 
        reduce the demand for and illegal use of alcohol, tobacco, and 
        drugs throughout the Nation.
            ``(D) Schools, local organizations, parents, students, and 
        communities throughout the Nation have a special responsibility 
        to work together to combat the continuing epidemic of violence 
        and illegal drug use, and should measure the success of 
        programs established to address this epidemic against clearly 
        defined goals and objectives.
            ``(E) Drug and violence prevention programs are most 
        effective when implemented within a research-based, drug and 
        violence prevention framework of proven effectiveness.
            ``(F) Substance abuse and violence are intricately related, 
        and must be dealt with in a holistic manner.
            ``(4)(A) Technology can produce far greater opportunities 
        to enable all students to meet high learning standards, promote 
        efficiency and effectiveness in education, and help to 
        immediately and dramatically reform our Nation's educational 
        system.
            ``(B) Because most Federal and State educational technology 
        programs have focused on acquiring educational technologies, 
        rather than emphasizing the utilization of the technologies in 
        the classroom and the training and infrastructure required 
        efficiently to support the technologies, the full potential of 
        educational technology has rarely been realized.
            ``(C) The effective use of technology in education has been 
        inhibited by the inability of many State educational agencies 
        and local educational agencies to invest in and support needed 
        technologies, and to obtain sufficient resources to seek  
expert technical assistance in developing high-quality professional 
development activities for teachers and keeping pace with rapid 
technological advances.
            ``(D) To remain competitive in the global economy, which is 
        increasingly reliant on a workforce that is comfortable with 
        technology and able to integrate rapid technological changes 
        into production processes, it is imperative that our Nation 
        maintain a work-ready labor force.
    ``(b) Policy.--It is the policy of the United States--
            ``(1) to facilitate significant innovation in elementary 
        school and secondary school education programs;
            ``(2) to enrich the learning environment of students;
            ``(3) to provide a safe learning environment for all 
        students;
            ``(4) to ensure that all students are technologically 
        literate; and
            ``(5) to assist State educational agencies and local 
        educational agencies in building the agencies' capacity to 
        establish, implement, and sustain innovative programs for 
        public elementary school and secondary school students.
    ``(c) Purposes.--The purposes of this title are as follows:
            ``(1) To provide supplementary assistance for school 
        improvement to elementary schools, secondary schools, and local 
        educational agencies--
                    ``(A) that have been or are at risk of being 
                identified for improvement, as described in subsection 
                (c) or (d) of section 1116, to carry out activities (as 
                described in such schools' or agencies' improvement 
                plans developed under such section) that are designed 
                to remedy the circumstances that caused such schools or 
                agencies to be identified for improvement; or
                    ``(B) to improve core content curricula and 
                instructional practices and materials in core academic 
                subjects (as defined in section 2002) to ensure that 
                all students are performing at a State's proficient 
                level of performance described in the State performance 
                standards described in section 1111(b)(1) within 10 
                years after the date of enactment of the Public 
                Education Reinvestment, Reinvention, and Responsibility 
                Act.
            ``(2) To provide assistance to local educational agencies 
        and schools for innovative programs and activities that will 
        transform schools into places that provide 21st century 
        opportunities for students by--
                    ``(A) creating challenging learning environments 
                and facilitating academic enrichment through innovative 
                academic programs; or
                    ``(B) providing extra learning, time, and 
                opportunities for students.
            ``(3) To provide assistance to local educational agencies, 
        schools, and communities to strengthen existing programs or 
        develop and implement new programs, based on proven researched-
        based strategies, that create safe learning environments by--
                    ``(A) preventing violence and other high-risk 
                behavior from occurring in and around schools; and
                    ``(B) preventing the illegal use of alcohol, 
                tobacco, and drugs among students.
            ``(4) To create New Economy Technology Schools by providing 
        assistance to local educational agencies and schools for--
                    ``(A) the acquisition, development, 
                interconnection, implementation, improvement, and 
                maintenance of an effective educational technology 
                infrastructure;
                    ``(B) the acquisition and maintenance of technology 
                equipment and the provision of training in the use of 
                such equipment for teachers, school library and media 
                personnel, and administrators;
                    ``(C) the acquisition or development of technology-
                enhanced curricula and instructional materials that are 
                aligned with challenging State content and student 
                performance standards; and
                    ``(D) the acquisition or development, and 
                implementation, of high-quality professional 
                development activities for teachers concerning the use 
                of technology and integration of technology with 
                challenging State content and student performance 
                standards.

``SEC. 6002. DEFINITIONS.

    ``In this title:
            ``(1) Authentic task.--The term `authentic task' means a 
        real world task as determined by the State involved that--
                    ``(A) is challenging, meaningful, 
                multidisciplinary, and interactive;
                    ``(B) involves reasoning, problem solving, and 
                composition; and
                    ``(C) is not a task requiring a discrete component 
                skill that has no obvious connection with students' 
                activities outside of school.
            ``(2) Poverty line.--The term `poverty line' means the 
        income official poverty line (as defined by the Office of 
        Management and Budget, and revised annually in accordance with 
        section 673(2) of the Community Services Block Grant Act) 
        applicable to a family of the size involved, for the most 
        recent year for which satisfactory data are available.
            ``(3) School-age population.--The term `school-age 
        population', used with respect to a State, means the population 
        of children that the State determines are school-age children, 
        but at least the population aged 5 through 17, as determined on 
        the basis of the most recent satisfactory data.
            ``(4) State.--The term `State' means each of the several 
        States, the District of Columbia, and the Commonwealth of 
        Puerto Rico.

``SEC. 6003. PROGRAMS AUTHORIZED.

    ``(a) Grants Authorized.--From the amount appropriated under 
section 6009 for a fiscal year, the Secretary shall award a grant, from 
an allotment made under subsection (b), to each State educational 
agency having a State plan approved under section 6005(a)(4) to enable  
the State educational agency to award grants to local educational 
agencies in the State.
    ``(b) Reservations and Allotments.--
            ``(1) Reservations.--From the amount appropriated under 
        section 6009 for a fiscal year, the Secretary shall reserve--
                    ``(A) not more than \1/2\ of 1 percent of such 
                amount for payments to the Bureau of Indian Affairs for 
                activities, approved by the Secretary, consistent with 
                this title;
                    ``(B) not more than \1/2\ of 1 percent of such 
                amount for payments to outlying areas, to be allotted 
                in accordance with their respective needs for 
                assistance under this title as determined by the 
                Secretary, for activities, approved by the Secretary, 
                consistent with this title; and
                    ``(C) such sums as may be necessary to continue to 
                support any multiyear award made under title III, title 
                IV, part B of title V, or title X (as such titles and 
                part were in effect on the day before the date of 
                enactment of the Public Education Reinvestment, 
                Reinvention, and Responsibility Act) until the 
                termination of the multiyear award.
            ``(2) State allotments.--
                    ``(A) In general.--From the amount appropriated 
                under section 6009 for a fiscal year and remaining 
                after the Secretary makes reservations under paragraph 
                (1), the Secretary shall allot to each State having a 
                State plan approved under section 6005(a)(4) the sum 
                of--
                            ``(i) an amount that bears the same 
                        relationship to 50 percent of the remainder as 
                        the amount the State received under part A of 
                        title I for the fiscal year bears to the amount 
                        all States received under such part for the 
                        fiscal year; and
                            ``(ii) an amount that bears the same 
                        relationship to 50 percent of the remainder as 
                        the school-age population in the State bears to 
                        the school-age population in all States.
                    ``(B) Data.--For the purposes of determining the 
                school-age population in a State and in all States, the 
                Secretary shall use the most recent available data from 
                the Bureau of the Census.
    ``(c) State Minimum.--For any fiscal year, no State shall be 
allotted under subsection (b)(2) an amount that is less than 0.4 
percent of the total amount allotted to all States under subsection 
(b)(2).
    ``(d) Hold-Harmless Amounts.--For fiscal year 2002, notwithstanding 
subsection (e), the amount allotted to each State under subsection 
(b)(2) shall be not less than 100 percent of the total amount the State 
was allotted through formula grants under sections 3132, 4011, and 6101 
(as such sections were in effect on the day before the date of 
enactment of the Public Education Reinvestment, Reinvention, and 
Responsibility Act) for fiscal year 2001.
    ``(e) Ratable Reductions.--If the sums made available under 
subsection (b)(2) for any fiscal year are insufficient to pay the full 
amounts that all State educational agencies are eligible to receive 
under subsection (c) or (d) for such year, the Secretary shall ratably 
reduce such amounts for such year.

``SEC. 6004. WITHIN STATE ALLOCATION.

    ``(a) Reservations; Allocations.--Each State educational agency for 
a State receiving a grant for a fiscal year under section 6003(a) 
shall--
            ``(1) set aside not more than 1 percent of the grant funds 
        for the cost of administering the activities under this title;
            ``(2) set aside not more than 4 percent of the grant funds 
        to--
                    ``(A) provide for the establishment of, and 
                continued improvement on, high-quality, internationally 
                competitive content and student performance standards 
                that all students will be expected to meet;
                    ``(B) provide for the establishment of, and 
                continued improvement on, high-quality, rigorous 
                assessments that include multiple measures and 
                demonstrate comprehensive knowledge;
                    ``(C) encourage and enable all State educational 
                agencies and local educational agencies to develop, 
                implement, and strengthen comprehensive education 
                improvement plans that address student achievement, 
                teacher quality, parent involvement, and reliable 
                measurement and evaluation methods; and
                    ``(D) encourage and enable all States to develop 
                and implement value-added assessments, including model 
                value-added assessments identified by the Secretary 
                under section 7104(a)(6); and
            ``(3) using the remaining 95 percent of the grant funds, 
        make grants by allocating to each local educational agency in 
        the State having a local educational agency plan approved under 
        section 6005(b)(3) the sum of--
                    ``(A) an amount that bears the same relationship to 
                60 percent of such remainder as the amount the local 
                educational agency received under part A of title I for 
                the fiscal year bears to the amount all local 
                educational agencies in the State received under such 
                part for the fiscal year; and
                    ``(B) an amount that bears the same relationship to 
                40 percent of such remainder as the school-age 
                population in the area served by the local educational 
                agency bears to the school-age population in the area 
                served by all local educational agencies in the State.
    ``(b) Matching Requirement.--
            ``(1) In general.--Each eligible local educational agency 
        receiving a grant under subsection (a) shall, with respect to 
        the costs to be incurred by the agency in carrying out the 
        programs for which the grant was awarded, make available 
        (directly or through donations from public or private 
entities) non-Federal contributions, in cash or in kind, in an amount 
equal to 25 percent of the Federal funds provided under the grant.
            ``(2) Waiver.--A local educational agency may apply to the 
        State educational agency for, and the State educational agency 
        may grant, a waiver of the requirements of paragraph (1) to a 
        local educational agency that--
                    ``(A) applies for such a waiver; and
                    ``(B) demonstrates that extreme circumstances make 
                the agency unable to meet such requirements.

``SEC. 6005. PLANS.

    ``(a) State Plans.--
            ``(1) In general.--The State educational agency for each 
        State desiring a grant under this title shall submit a State 
        plan to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may require.
            ``(2) Consolidated plan.--A State plan submitted under 
        paragraph (1) may be submitted as part of a consolidated plan 
        under section 8302.
            ``(3) Contents.--Each plan submitted under paragraph (1) 
        shall--
                    ``(A) describe how the State educational agency 
                will assist each local educational agency and school 
                served under this title in the State to comply with the 
                requirements described in section 6006 that are 
                applicable to the local educational agency or school;
                    ``(B) certify that the State has in place the 
                standards and assessments required under section 1111;
                    ``(C) certify that the State educational agency has 
                a system, as required under section 1111, for--
                            ``(i) holding each local educational agency 
                        and school in the State accountable for 
                        adequate yearly progress (as defined under 
                        section 1111(b)(2)(B));
                            ``(ii) identifying local educational 
                        agencies and schools for improvement and 
                        corrective action (as required in subsections 
                        (c) and (d) of section 1116);
                            ``(iii) assisting local educational 
                        agencies and schools that are identified for 
                        improvement with the development of improvement 
                        plans; and
                            ``(iv) providing technical assistance, 
                        professional development, and other capacity 
                        building as needed to remove such agencies and 
                        schools from improvement status;
                    ``(D) certify that the State educational agency 
                shall use the disaggregated results of student 
                assessments required under section 1111(b)(4), and 
                other available measures or indicators, to review 
                annually the progress of each local educational agency 
                and school served under this title in the State, to 
                determine whether or not each such agency and school is 
                making adequate yearly progress as required under 
                section 1111(b)(2);
                    ``(E) certify that the State educational agency 
                will take action against a local educational agency 
                that is in corrective action and receiving funds under 
                this title as described in section 6006(d)(1);
                    ``(F) describe what, if any, State and other 
                resources will be provided to local educational 
                agencies and schools served under this title to carry 
                out activities consistent with this title; and
                    ``(G) certify that the State educational agency has 
                a system to hold local educational agencies accountable 
                for meeting the annual performance objectives required 
                under subsection (b)(2)(C).
            ``(4) Approval.--The Secretary, after using a peer review 
        process, shall approve a State plan if the State plan meets the 
        requirements of this subsection.
            ``(5) Duration of the plan.--Each State plan shall remain 
        in effect for the duration of the State's participation under 
        this title.
            ``(6) Requirement.--The Secretary shall not approve a State 
        plan for a State unless the State has established the standards 
        and assessments required under section 1111.
    ``(b) Local Plans.--
            ``(1) In general.--Each local educational agency desiring a 
        grant under this title shall annually submit a local 
        educational agency plan to the State educational agency at such 
        time, in such manner, and containing such information as the 
        State educational agency may require.
            ``(2) Contents.--Each local educational agency shall--
                    ``(A) describe the programs for which funds 
                allocated under section 6004(a)(3) will be used and the 
                reasons for the selection of such programs;
                    ``(B) describe the methods the local educational 
                agency will use to measure the annual impact of 
                programs described under subparagraph (A) and the 
                extent to which such programs will increase student 
                academic performance;
                    ``(C) describe the annual, quantifiable, and 
                measurable performance goals and objectives that the 
                local educational agency will use for each program 
                described under subparagraph (A) and the extent to 
                which such goals and objectives are aligned with State 
                content and student performance standards;
                    ``(D) describe how the local educational agency 
                will hold schools accountable for meeting the 
                performance objectives for each program described under 
                subparagraph (C);
                    ``(E) provide an assurance that the local 
                educational agency has met the local plan requirements 
                described in section 1112 for--
                            ``(i) holding schools accountable for 
                        adequate yearly progress as required under 
                        section 1111(b)(2), including meeting annual 
                        numerical goals for improving the performance 
                        of all groups of students based on the student 
                        performance standards set by the State under 
                        section 1111(b)(1)(D)(ii);
                            ``(ii) identifying schools for school 
                        improvement or corrective action;
                            ``(iii) fulfilling the local educational 
                        agency's school improvement responsibilities 
                        described in section 1116, including taking 
                        corrective action under section 1116(c)(10); 
                        and
                            ``(iv) providing technical assistance, 
                        professional development, or other capacity 
                        building to schools served by the agency;
                    ``(F) certify that the local educational agency 
                will take action against a school that is in corrective 
                action and receiving funds under this title as 
                described under section 6006(d)(2);
                    ``(G) describe what State and local resources will 
                be contributed to carrying out programs described under 
                subparagraph (A);
                    ``(H) provide assurances that the local educational 
                agency consulted, at a minimum, with parents, school 
                board members, teachers, administrators, business 
                partners, education organizations, and community groups 
                to develop the local educational agency plan and select 
                the programs to be assisted under this title; and
                    ``(I) provide assurances that the local educational 
                agency will continue such consultation on a regular 
                basis and will provide the State with annual evidence 
                of such consultation.
            ``(3) Approval.--The State, after using a peer review 
        process, shall approve a local educational agency plan if the 
        plan meets the requirements of this subsection.
            ``(4) Duration of the plan.--Each local educational agency 
        plan shall remain in effect for the duration of the local 
        educational agency's participation under this title.
            ``(5) Public review.--Each State educational agency shall 
        make publicly available each local educational agency plan 
        approved under paragraph (3).

``SEC. 6006. LOCAL USES OF FUNDS AND ACCOUNTABILITY.

    ``(a) Administrative Expenses.--Each local educational agency 
receiving a grant award under section 6004(a)(3) may use not more than 
1 percent of the grant funds for a fiscal year for the cost of 
administering this title.
    ``(b) Required Activities.--Each local educational agency receiving 
a grant award under section 6004(a)(3) shall use the grant funds 
pursuant to this section to establish and carry out programs that are 
designed to achieve, separately or cumulatively, each of the goals 
described in the categories specified in the following paragraphs:
            ``(1) School improvement.--Each local educational agency 
        shall use 30 percent of the grant funds--
                    ``(A) in the case of a school that has been 
                identified for school improvement under section 
                1116(c), for activities or strategies that are 
                described in section 1116(c) that focus on removing 
                such school from school improvement status; or
                    ``(B) for programs that seek to raise the academic 
                achievement levels of all elementary school and 
                secondary school students based on challenging State 
                content and student performance standards and, to the 
                greatest extent possible--
                            ``(i) incorporate the best practices 
                        developed from research-based methods and 
                        practices;
                            ``(ii) are aligned with challenging State 
                        content and performance standards and focused 
                        on reinforcing and boosting the core academic 
                        skills and knowledge of students who are 
                        struggling academically, as determined by State 
                        assessments under section 1111(b)(4) and local 
                        evaluations;
                            ``(iii) focus on accelerated learning 
                        rather than remediation, so that students will 
                        master the high level of skills and knowledge 
                        needed to meet the highest State standards or 
                        to perform at high levels on all State 
                        assessments;
                            ``(iv) offer teachers, principals, and 
                        administrators professional development and 
                        technical assistance that are aligned with the 
                        other content of such programs; and
                            ``(v) address local needs, as determined by 
                        the local educational agency's evaluation of 
                        school and districtwide data.
            ``(2) 21st century opportunities.--Each local educational 
        agency shall use 25 percent of the grant funds for--
                    ``(A) programs that provide for extra learning, 
                time, and opportunities for students so that all 
                students may achieve high levels of learning and 
                perform at the State's proficient level of performance 
                described in the State standards described in section 
                1111(b)(1) within 10 years after the date of enactment 
                of the Public Education Reinvestment, Reinvention, and 
                Responsibility Act;
                    ``(B) programs to improve higher order thinking 
                skills of all students, especially disadvantaged 
                students;
                    ``(C) promising innovative education reform 
                projects that are consistent with challenging State 
                content and student performance standards; or
                    ``(D) programs that focus on ensuring that 
                disadvantaged students enter elementary school with the 
                basic skills needed to meet the highest State content 
                and student performance standards.
            ``(3) Safe learning environments.--Each local educational 
        agency shall use 15 percent of the grant funds for programs 
        that help ensure that all elementary school and secondary 
        school students learn in a safe and supportive environment, 
        by--
                    ``(A) reducing drugs, violence, and other high-risk 
                behavior in schools;
                    ``(B) providing safe, extended-day opportunities 
                for students;
                    ``(C) providing professional development activities 
                for teachers, principals, mental health professionals, 
                and guidance counselors concerning dealing with 
                students exhibiting distress (such as exhibiting 
                distress through substance abuse, disruptive behavior, 
                and suicidal behavior);
                    ``(D) recruiting or retaining high-quality mental 
                health professionals;
                    ``(E) providing character education for students;
                    ``(F) meeting other objectives that are established 
                under State standards regarding safety or that address 
                local community concerns; or
                    ``(G) providing alternative educational 
                opportunities for violent and disruptive students.
            ``(4) New economy technology schools.--
                    ``(A) In general.--Each local educational agency 
                shall use 30 percent of the grant funds to establish 
                technology programs that will transform schools into 
                New Economy Technology Schools and, to the greatest 
                extent possible, will--
                            ``(i) increase student performance related 
                        to an authentic task;
                            ``(ii) integrate the use of technology into 
                        activities that are a core part of classroom 
                        curricula and are available to all students;
                            ``(iii) emphasize how to use technology to 
                        accomplish authentic tasks;
                            ``(iv) provide professional development and 
                        technical assistance to teachers so that 
                        teachers may integrate technology into daily 
                        teaching activities that are directly aligned 
                        with State content and student performance 
                        standards;
                            ``(v) enable the local educational agency 
                        annually to increase the percentage of 
                        classrooms with access to technology, 
                        particularly in schools in which not less than 
                        50 percent of the school-age population comes 
                        from families with incomes below the poverty 
                        line; and
                            ``(vi) allow local educational agencies to 
                        provide incentives or bonuses for teachers who 
                        have met the National Education Technology 
                        Standards, as developed by the Department of 
                        Education and the International Society for 
                        Technology in Education, or have obtained an 
                        information technology certification that is 
                        directly related to the curricula or the 
                        academic subjects that the teachers teach.
                    ``(B) Limitation.--Each local educational agency 
                shall use a portion equal to not more than 50 percent 
                of the grant funds described in subparagraph (A) to 
                purchase, upgrade, or retrofit computer hardware in 
                schools. In distributing funds from that portion, the 
                agency shall give priority to schools in which not less 
                than 50 percent of the school-age population comes from 
                families with incomes below the poverty line.
    ``(c) Transfer of Funds.--Notwithstanding subsection (b)--
            ``(1) a local educational agency that meets adequate yearly 
        progress requirements for student performance, as established 
        by the State educational agency under section 1111(b)(2)(B), 
        may allocate, at the local educational agency's discretion, not 
        more than 30 percent of the grant funds received under section 
        6004(a)(3) among the 4 categories described in paragraphs (1) 
        through (4) of subsection (b);
            ``(2) a local educational agency that exceeds the adequate 
        yearly progress requirements described in paragraph (1) by a 
        significant amount, as determined by the State educational 
        agency, may allocate, at the local educational agency's 
        discretion, not more than 50 percent of the grant funds 
        received under section 6004(a)(3) among the 4 categories; and
            ``(3) a local educational agency that is identified for 
        improvement, as described in section 1116(d), may apply not 
        more than 25 percent of the grant funds in the categories 
        described in paragraphs (2), (3), and (4) of subsection (b) to 
        carry out school improvement activities described in subsection 
        (b)(1).
    ``(d) Limitations for Schools and Local Educational Agencies in 
Corrective Action.--
            ``(1) Local educational agencies in corrective action.--If 
        a local educational agency is identified for corrective action 
        under section 1116(d), the State educational agency shall--
                    ``(A) notwithstanding any other provision of law, 
                specify how the local educational agency shall spend 
                the grant funds in order to focus the local educational 
                agency on the activities that will be the most 
                effective in raising student performance levels; and
                    ``(B) implement corrective action in accordance 
                with the provisions for corrective action described in 
                section 1116(d)(12).
            ``(2) Schools in corrective action.--If a school is 
        identified for corrective action under section 1116(c), the 
        local educational agency shall--
                    ``(A) specify how the school shall spend grant 
                funds received under this section in order to focus the 
                school on the activities that will be the most 
                effective in raising student performance levels; and
                    ``(B) implement corrective action in accordance 
                with the provisions for corrective action described in 
                section 1116(c)(10).
            ``(3) Duration.--Limitations imposed under paragraphs (1) 
        and (2) on a school or local educational agency in corrective 
        action status shall remain in effect until such time as the 
        school or local educational agency has made sufficient 
        improvement, as determined by the State educational agency, and 
        is removed from corrective action status.

``SEC. 6007. STATE AND LOCAL RESPONSIBILITIES.

    ``(a) Data Review.--
            ``(1) State and local review.--A State educational agency 
        shall jointly review with a local educational agency described 
        in section 6006(d)(1) the local educational agency's data 
        gathered from student assessments and other measures required 
        under section 1111(b)(4), in order to determine pursuant to 
        section 6006(d)(1)(A) how the local educational agency shall 
        spend the grant funds in order to substantially increase 
        student performance levels.
            ``(2) School and local review.--A local educational agency 
        shall jointly review with a school described in section 
        6006(d)(2) the school's data gathered from student assessments 
        and other measures required under section 1111(b)(4), in order 
        to determine pursuant to section 6006(d)(2) how the school 
        shall spend grant funds in order to substantially increase 
        student performance levels.
    ``(b) Technical Assistance.--
            ``(1) State assistance.--
                    ``(A) In general.--A State educational agency shall 
                provide, upon request by a local educational agency 
                receiving grant funds under this title, technical 
                assistance to the local educational agency and schools 
                served by the local educational agency, including 
                assistance in analyzing student performance and the 
                impact of programs assisted under this title, and 
                identifying the best instructional strategies and 
                methods for carrying out such programs.
                    ``(B) Provision.--State technical assistance may be 
                provided by--
                            ``(i) the State educational agency; or
                            ``(ii) with the local educational agency's 
                        approval, an institution of higher education, a 
                        private not-for-profit or for-profit 
                        organization, an educational service agency, 
                        the recipient of a Federal contract or 
                        participant in a cooperative agreement as 
                        described in section 7104(a)(3), a 
                        nontraditional entity such as a corporation or 
                        consulting firm, or any other entity with 
                        experience in the program area for which the 
                        assistance is being sought.
            ``(2) Local assistance.--
                    ``(A) In general.--A local educational agency shall 
                provide, upon request by an elementary school or 
                secondary school served by the agency and receiving 
                grant funds under this title, technical assistance to 
                such school, including assistance in analyzing student 
                performance and the impact of programs assisted under 
                this title, and identifying the best instructional 
                strategies and methods for carrying out such programs.
                    ``(B) Provision.--Local technical assistance may be 
                provided by--
                            ``(i) the State educational agency or local 
                        educational agency; or
                            ``(ii) with the school's approval, an 
                        institution of higher education, a private not-
                        for-profit or for-profit organization, an 
                        educational service agency, the recipient of a 
                        Federal contract or participant in a 
                        cooperative agreement as described in section 
                        7104(a)(3), a nontraditional entity such as a 
                        corporation or consulting firm, or any other 
                        entity with experience in the program area for 
                        which the assistance is being sought.

``SEC. 6008. LOCAL REPORTS.

    ``Each local educational agency receiving funds under this title to 
carry out programs shall annually publish and disseminate to the public 
in a format and, to the extent practicable, in a language that parents 
can understand, a report on--
            ``(1) information describing the use of funds in the 4 
        categories described in section 6006(b);
            ``(2) the impact of such programs and an assessment of such 
        programs' effectiveness; and
            ``(3) the local educational agency's progress toward 
        attaining the goals and objectives described in the plan 
        described in section 6005(b), and the extent to which programs 
        assisted under this title have increased student achievement.

``SEC. 6009. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$3,500,000,000 for fiscal year 2002, and such sums as may be necessary 
for each of the 4 succeeding fiscal years.''.

                       TITLE VII--ACCOUNTABILITY

SEC. 701. ACCOUNTABILITY.

    Title VII (20 U.S.C. 7401 et seq.) is amended to read as follows:

                      ``TITLE VII--ACCOUNTABILITY

                    ``PART A--SANCTIONS AND REWARDS

``SEC. 7101. SANCTIONS.

    ``(a) Third Fiscal Year.--If a State receiving grant funds under a 
covered provision has not met the performance objectives established 
under the covered provision by the end of the third fiscal year for 
which the State receives such grant funds, the Secretary shall reduce 
by 50 percent the amount the State receives for administrative expenses 
under such provision.
    ``(b) Fourth Fiscal Year.--If the State fails to meet the 
performance objectives established under the covered provision by the 
end of the fourth fiscal year for which the State receives such grant 
funds, the Secretary shall reduce the total amount the State receives 
under title VI by 30 percent.
    ``(c) Duration.--If the Secretary determines, under subsection (a) 
or (b), that a State failed to meet the performance objectives 
established under a covered provision for a third or fourth fiscal 
year, the Secretary shall reduce grant funds in accordance with 
subsection (a) or (b) for  the State for each subsequent fiscal year 
until the State demonstrates that the State met the performance 
objectives for the fiscal year preceding the demonstration.
    ``(d) Technical Assistance.--The Secretary shall provide technical 
assistance, if sought, to a State subjected to sanctions under 
subsection (a) or (b).
    ``(e) Local Sanctions.--
            ``(1) In general.--Each State receiving assistance under 
        part A of title I, part A of title II, part A of title III, or 
        title VI shall develop a system to hold local educational 
        agencies accountable for meeting--
                    ``(A) the performance objectives established under 
                part A of title II, part A of title III, and title VI; 
                and
                    ``(B) the adequate yearly progress requirements 
                established under part A of title I, and required under 
                part A of title III and title VI.
            ``(2) Sanctions.--A system developed under paragraph (1) 
        shall include a mechanism for sanctioning local educational 
        agencies for failure to meet such performance objectives and 
        adequate yearly progress levels.
    ``(f) Definitions.--In this section:
            ``(1) Covered provision.--The term `covered provision' 
        means part A of title I, part A of title II, part A of title 
        III, and title VI.
            ``(2) Performance objectives.--The term `performance 
        objectives' means, used with respect to--
                    ``(A) part A of title I, the adequate yearly 
                progress levels established under subsections 
                (b)(2)(A)(iii) and (b)(2)(B) of section 1111;
                    ``(B) part A of title II, the set of performance 
                objectives established under section 2104;
                    ``(C) part A of title III, the set of performance 
                objectives established under section 3109; and
                    ``(D) title VI, the set of performance objectives 
                set by each local educational agency under section 
                6005(b)(2)(C).

``SEC. 7102. REWARDING HIGH PERFORMANCE.

    ``(a) State Rewards.--
            ``(1) In general.--From amounts appropriated under 
        subsection (d), and from amounts made available as a result of 
        reductions under section 7101, the Secretary shall make awards 
        to States that--
                    ``(A) for 3 consecutive years have--
                            ``(i) exceeded the States' performance 
                        objectives established for any title under this 
                        Act;
                            ``(ii) exceeded 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 and 
                        noneconomically disadvantaged students;
                            ``(iv) raised all students enrolled in the 
                        States' public elementary schools and secondary 
                        schools to the State's proficient level of  
performance described in the State standards described in section 
1111(b)(4) earlier than 10 years after the date of enactment of the 
Public Education Reinvention, Reinvestment, and Responsibility Act; or
                            ``(v) significantly increased the 
                        percentage of classes in core academic subjects 
                        being taught by fully qualified teachers in 
                        schools receiving funds under part A of title 
                        I; or
                    ``(B) not later than December 31, 2004, ensure that 
                all teachers teaching in the States' public elementary 
                schools and secondary schools are fully qualified.
            ``(2) State use of funds.--
                    ``(A) Demonstration sites.--Each State receiving an 
                award under paragraph (1) shall use a portion of the 
                award that is not distributed under subsection (b) to 
                establish demonstration sites with respect to high-
                performing schools (based on performance objectives or 
                adequate yearly progress) in order to help low-
                performing schools.
                    ``(B) Improvement of performance.--Each State 
                receiving an award under paragraph (1) shall use the 
                portion of the award that is not used pursuant to 
                subparagraph (A) or (C) and is not distributed under 
                subsection (b) for the purpose of improving the level 
                of performance of all elementary school and secondary 
                school students in the State, based on State content 
                and performance standards.
                    ``(C) Reservation for administrative expenses.--
                Each State receiving an award under paragraph (1) may 
                set aside not more than \1/2\ of 1 percent of the award 
                for the planning and administrative costs of carrying 
                out this section, including the costs of distributing 
                awards to local educational agencies.
    ``(b) Local Educational Agency Awards.--
            ``(1) In general.--Each State receiving an award under 
        subsection (a)(1) shall distribute 80 percent of the award 
        funds by making awards to local educational agencies in the 
        State that--
                    ``(A) for 3 consecutive years have--
                            ``(i) exceeded the State-established local 
                        educational agency performance objectives 
                        established for any title under this Act;
                            ``(ii) exceeded the adequate yearly 
                        progress levels established under section 
                        1111(b)(2);
                            ``(iii) significantly narrowed the gaps 
                        between minority and nonminority students, and 
                        between economically disadvantaged and 
                        noneconomically disadvantaged students;
                            ``(iv) raised all students enrolled in 
                        schools served by the local educational agency 
                        to the State's proficient level of performance 
                        described in the State standards described in 
                        section 1111(b)(1) earlier than 10 years after 
                        the date of enactment of the Public Education 
                        Reinvestment, Reinvention, and Responsibility 
                        Act; or
                            ``(v) significantly increased the 
                        percentage of classes in core academic subjects 
                        being taught by fully qualified teachers in 
                        schools receiving funds under part A of title 
                        I;
                    ``(B) not later than December 31, 2004, ensure that 
                all teachers teaching in the elementary schools and 
                secondary schools served by the local educational 
                agencies are fully qualified; or
                    ``(C) have attained consistently high achievement 
                in another area that the State determines is 
                appropriate to reward.
            ``(2) School awards.--A local educational agency shall use 
        funds made available under paragraph (1) for activities 
        described in subsection (c).
            ``(3) Reservation for administrative expenses.--Each local 
        educational agency receiving an award under paragraph (1) may 
        set aside not more than \1/2\ of 1 percent of the award for the 
        planning and administrative costs of carrying out this section, 
        including the costs of distributing awards to eligible 
        elementary schools and secondary schools, teachers, and 
        principals.
    ``(c) School Awards.--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 for 1 or more 
activities--
            ``(1) to reward individual schools that demonstrate high 
        performance with respect to--
                    ``(A) increasing the academic achievement of all 
                students;
                    ``(B) narrowing the academic achievement gap 
                described in section 1111(b)(2)(B)(vii);
                    ``(C) improving teacher quality;
                    ``(D) increasing high-quality professional 
                development for teachers, principals, and 
                administrators; or
                    ``(E) improving the English proficiency of limited 
                English proficient students;
            ``(2) to reward collaborative teams of teachers, or teams 
        of teachers and principals, that--
                    ``(A) significantly improve 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 districtwide programs 
        or policies to improve the level of student performance on 
        State assessments that are aligned with State content 
        standards; or
            ``(5) to reward schools for consistently high achievement 
        in another area that the local educational agency determines is 
        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.--In this section:
            ``(1) Core academic subject.--The term `core academic 
        subject' has the meaning given the term in section 2002.
            ``(2) Low-performing student.--In this section, the term 
        `low-performing student' means a student who performs below a 
        State's basic level of performance described in the State 
        standards described in section 1111(b)(1).

``SEC. 7103. SUPPLEMENT NOT SUPPLANT.

    ``Funds appropriated pursuant to the authority of this title shall 
be used to supplement and not supplant other Federal, State, and local 
public funds expended to provide activities described in section 7102.

``SEC. 7104. SECRETARY'S ACTIVITIES.

    ``(a) In General.--Notwithstanding any other provision of this Act, 
from amounts appropriated under subsection (d) and not reserved under 
subsection (b), the Secretary may--
            ``(1) support activities of the National Board for 
        Professional Teaching Standards;
            ``(2) study and disseminate information regarding model 
        programs assisted under this Act;
            ``(3) provide training and technical assistance to States, 
        local educational agencies, elementary schools and secondary 
        schools, Indian tribes, and other recipients of grant funds 
        under this Act that are carrying out activities assisted under 
        this Act, including entering into contracts or cooperative 
        agreements with public or private nonprofit entities or 
        consortia of such entities, in order to provide comprehensive 
        training and technical assistance related to the administration 
        and implementation of activities assisted under this Act;
            ``(4) support activities that will promote systemic 
        education reform at the State and local levels;
            ``(5) award grants or contracts to public or private 
        nonprofit entities to enable the entities--
                    ``(A) to develop and disseminate information on 
                exemplary educational practices relating to reading, 
                writing, mathematics, science, and other academic 
                subjects, and technology, and instructional materials 
                and professional development concerning the academic 
                subjects, for States, local educational agencies, and 
                elementary schools and secondary schools; and
                    ``(B) to provide technical assistance concerning 
                the implementation of teaching methods and assessment 
                tools for use by elementary school and secondary school 
                students, teachers, and administrators;
            ``(6) disseminate information on models of value-added 
        assessments;
            ``(7) award a grant or contract to a public or private 
        nonprofit entity or consortium of such entities for the 
        development and dissemination of information on exemplary 
        programs and curricula for accelerated and advanced learning 
        for all students, including gifted and talented students;
            ``(8) award a grant or contract to Reading Is Fundamental, 
        Inc. and other public or private nonprofit entities to support 
        and promote programs that include the distribution of 
        inexpensive books to students and the provision of literacy 
        activities that motivate students to read; and
            ``(9) provide assistance to States--
                    ``(A) by assisting in the development of English 
                language development standards and high-quality 
                assessments, if requested by a State participating in 
                activities under part A of title III; and
                    ``(B) by developing native language tests for 
                limited English proficient students that a State may 
                administer to such students to assess student 
                performance in at least reading, science, and 
                mathematics, consistent with section 1111.
    ``(b) Reservation.--From the amounts appropriated under subsection 
(d), the Secretary shall reserve $10,000,000 for the purposes of 
carrying out activities under section 1202(c).
    ``(c) Special Rule for Secretary Awards.--
            ``(1) In general.--Notwithstanding any other provision of 
        this Act, a recipient of funds under this Act for a program 
        that are provided through a direct grant made by the Secretary, 
        or a contract or cooperative agreement entered into directly 
        with the Secretary, shall include information on the following 
        in any application or plan required under such program:
                    ``(A) How funds provided under the program have 
                been used and will be used and how such use has 
                increased and will increase student academic 
                achievement.
                    ``(B) The goals and objectives that have been met 
                and that will be met through the program, including 
                goals for dissemination and use of any information or 
                materials produced.
                    ``(C) How the recipient has tracked and reported 
                annually, and will track and report annually, to the 
                Secretary information on--
                            ``(i) the successful dissemination of any 
                        information or materials produced under the 
                        program;
                            ``(ii) where the information or materials 
                        produced are being used; and
                            ``(iii) the impact of such use and, if 
                        applicable, the extent to which such use 
                        increases student academic achievement.
            ``(2) Requirement.--If no application or plan is required 
        under a program described in paragraph (1), the Secretary shall 
        require the recipient 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), assess the 
                magnitude of the dissemination, and 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 described in paragraph (1) if--
                            ``(i) the goals and objectives described in 
                        paragraph (1)(B) have not been met;
                            ``(ii) the dissemination has not been of a 
                        magnitude to ensure that national goals are 
                        being addressed; or
                            ``(iii) the information or materials 
                        produced have not made a significant impact on 
                        raising student achievement in places where 
                        such information or materials are used.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $150,000,000 for fiscal year 
2002, and such sums as may be necessary for each of the 4 succeeding 
fiscal years.

               ``PART B--AMERICA'S EDUCATION GOALS PANEL

``SEC. 7201. AMERICA'S EDUCATION GOALS PANEL.

    ``(a) Purpose.--The purpose of this section is to establish a 
bipartisan mechanism for--
            ``(1) building a national consensus for education 
        improvement; and
            ``(2) reporting on progress toward achieving America's 
        Education Goals.
    ``(b) America's Education Goals Panel.--
            ``(1) Establishment.--There is established in the executive 
        branch an America's Education Goals Panel (referred to in this 
        part as the `Goals Panel') to advise the President, the 
        Secretary, and Congress.
            ``(2) Composition.--The Goals Panel shall be composed of 18 
        members (referred to individually in this section as a 
        `member'), including--
                    ``(A) 2 members appointed by the President;
                    ``(B) 8 members who are Governors, 3 of whom shall 
                be from the same political party as the President and 5 
                of whom shall be from the opposite political party from 
                the President, appointed by the Chairperson and Vice 
                Chairperson of the National Governors' Association, 
                with the Chairperson and Vice Chairperson each 
                appointing representatives of such Chairperson's and 
                Vice Chairperson's respective political parties, in 
                consultation with each other;
                    ``(C) 4 Members of Congress, of whom--
                            ``(i) 1 member shall be appointed by the 
                        Majority Leader of the Senate from among the 
                        Members of the Senate;
                            ``(ii) 1 member shall be appointed by the 
                        Minority Leader of the Senate from among the 
                        Members of the Senate;
                            ``(iii) 1 member shall be appointed by the 
                        Majority Leader of the House of Representatives 
                        from among the Members of the House of 
                        Representatives; and
                            ``(iv) 1 member shall be appointed by the 
                        Minority Leader of the House of Representatives 
                        from among the Members of the House of 
                        Representatives; and
                    ``(D) 4 members of State legislatures appointed by 
                the President of the National Conference of State 
                Legislatures, of whom 2 shall be from the same 
                political party as the President of the United States.
            ``(3) Special appointment rules.--
                    ``(A) In general.--The members appointed pursuant 
                to paragraph (2)(B) shall be appointed as follows:
                            ``(i) Same party.--If the Chairperson of 
                        the National Governors' Association is from the 
                        same political party as the President, the 
                        Chairperson shall appoint 3 individuals and the 
                        Vice Chairperson of such association shall 
                        appoint 5 individuals.
                            ``(ii) Opposite party.--If the Chairperson 
                        of the National Governors' Association is from 
                        the opposite political party  from the 
President, the Chairperson shall appoint 5 individuals and the Vice 
Chairperson of such association shall appoint 3 individuals.
                    ``(B) Special rule.--If the National Governors' 
                Association has appointed a panel that meets the 
                requirements of paragraph (2) and subparagraph (A) 
                (except for the requirements of paragraph (2)(D)), 
                prior to the date of enactment of the Public Education 
                Reinvestment, Reinvention, and Responsibility Act, the 
                members serving on such panel shall be deemed to be in 
                compliance with the provisions of such paragraph (2) 
                and subparagraph (A) and shall not be required to be 
                reappointed pursuant to such paragraph (2) and 
                subparagraph (A).
                    ``(C) Representation.--To the extent feasible, the 
                membership of the Goals Panel shall be geographically 
                representative and reflect the racial, ethnic, and 
                gender diversity of the United States.
            ``(4) Terms.--The terms of service of members shall be as 
        follows:
                    ``(A) Presidential appointees.--Members appointed 
                under paragraph (2)(A) shall serve at the pleasure of 
                the President.
                    ``(B) Governors.--Members appointed under paragraph 
                (2)(B) (or (3)(B)) shall serve for 2-year terms, except 
                that the initial appointments under such paragraph 
                shall be made to ensure staggered terms.
                    ``(C) Congressional appointees and state 
                legislators.--Members appointed under subparagraphs (C) 
                and (D) of paragraph (2) shall serve for 2-year terms.
            ``(5) Date of appointment.--The initial members shall be 
        appointed not later than 60 days after the date of enactment of 
        the Public Education Reinvestment, Reinvention, and 
        Responsibility Act.
            ``(6) Initiation.--The Goals Panel may begin to carry out 
        the Goals Panel's duties under this section when 10 members of 
        the Goals Panel have been appointed.
            ``(7) Vacancies.--A vacancy on the Goals Panel shall not 
        affect the powers of the Goals Panel, but shall be filled in 
        the same manner as the original appointment.
            ``(8) Travel.--The members shall not receive compensation 
        for the performance of services for the Goals Panel, but each 
        member may be allowed travel expenses, including per diem in 
        lieu of subsistence, as authorized by section 5703 of title 5, 
        United States Code, for each day the member is engaged in the 
        performance of duties for the Goals Panel away from the home or 
        regular place of business of the member. Notwithstanding 
        section 1342 of title 31, United States Code, the President may 
        accept the voluntary and uncompensated services of members.
            ``(9) Chairperson.--
                    ``(A) In general.--The members shall select a 
                Chairperson from among the members.
                    ``(B) Term and political affiliation.--The 
                Chairperson of the Goals Panel shall serve a 1-year 
                term. No 2 consecutive Chairpersons shall be from the 
                same political party.
            ``(10) Conflict of interest.--A member of the Goals Panel 
        who is an elected official of a State that has developed 
        content or student performance standards may not participate in 
        Goals Panel consideration of such standards.
            ``(11) Ex officio member.--If the President has not 
        appointed the Secretary as 1 of the 2 members the President 
        appoints pursuant to paragraph (2)(A), the Secretary shall 
        serve as a nonvoting ex officio member of the Goals Panel.
    ``(c) Duties.--
            ``(1) In general.--The Goals Panel shall--
                    ``(A) report to the President, the Secretary, and 
                Congress regarding the progress the Nation and the 
                States are making toward achieving America's Education 
                Goals, including issuing an annual report;
                    ``(B) report on, and widely disseminate through 
                multiple strategies information pertaining to, 
                promising or effective actions being taken at the 
                Federal, State, and local levels, and in the public and 
                private sectors, to achieve America's Education Goals;
                    ``(C) report on, and widely disseminate information 
                on promising or effective practices pertaining to, the 
                achievement of each of the 8 America's Education Goals; 
                and
                    ``(D) help build a bipartisan consensus for the 
                reforms necessary to achieve America's Education Goals.
            ``(2) Report.--
                    ``(A) In general.--The Goals Panel shall annually 
                prepare and submit to the President, the Secretary, the 
                appropriate committees of Congress, and the Governor of 
                each State a report that shall--
                            ``(i) assess the progress of the United 
                        States toward achieving America's Education 
                        Goals; and
                            ``(ii) identify actions that should be 
                        taken by Federal, State, and local governments.
                    ``(B) Form; data.--The reports shall be presented 
                in a form, and include data, that is understandable to 
                parents and the general public.
            ``(3) Early childhood assessment.--The Goals Panel shall 
        carry out the activities described in section 207 of the Goals 
        2000: Educate America Act, as in effect on the day before the 
        date of enactment of the Public Education Reinvestment, 
        Reinvention, and Responsibility Act.
    ``(d) Powers.--The Goals Panel shall have the powers described in 
section 204 of the Goals 2000: Educate America Act, as in effect on the 
day before the date of  enactment of the Public Education Reinvestment, 
Reinvention, and Responsibility Act.
    ``(e) Administration.--The Goals Panel shall comply with the 
administrative requirements described in section 205 of the Goals 2000: 
Educate America Act, as in effect on the day before the date of 
enactment of the Public Education Reinvestment, Reinvention, and 
Responsibility Act.
    ``(f) Personnel.--The Goals Panel shall have the authority relating 
to a director, employees, experts and consultants, and detailees 
described in section 206 of the Goals 2000: Educate America Act, as in 
effect on the day before the date of enactment of the Public Education 
Reinvestment, Reinvention, and Responsibility Act.
    ``(g) Definition.--In this section, the term `America's Education 
Goals' means the National Education Goals established under section 102 
of the Goals 2000: Educate America Act, as in effect on the day before 
the date of enactment of the Public Education Reinvestment, 
Reinvention, and Responsibility Act.''.

               TITLE VIII--GENERAL PROVISIONS AND REPEALS

SEC. 801. REPEALS, TRANSFERS, AND REDESIGNATIONS REGARDING TITLE XIV.

    (a) In General.--The Act (20 U.S.C. 6301 et seq.) is amended--
            (1) by inserting after title VII the following:

                  ``TITLE VIII--GENERAL PROVISIONS'';

            (2) by repealing sections 14514 and 14603 (20 U.S.C. 8904, 
        8923);
            (3)(A) by transferring title XIV (20 U.S.C. 8801 et seq.) 
        to title VIII and inserting such title after the title heading 
        for title VIII; and
            (B) by striking the title heading for title XIV;
            (4)(A) by redesignating part H of title VIII (as 
        redesignated by paragraph (3)) as part I of title VIII; and
            (B) by redesignating the references to such part H of title 
        VIII as references to part I of title VIII;
            (5) by inserting after part G of title VIII the following:

                   ``PART H--SUPPLEMENT, NOT SUPPLANT

``SEC. 8801. SUPPLEMENT, NOT SUPPLANT.

    ``Funds appropriated pursuant to the authority of this Act shall be 
used to supplement and not supplant State and local public funds 
expended to provide activities described in this Act.'';
            (6) by redesignating the references to title XIV as 
        references to title VIII;
            (7)(A) by redesignating sections 14101 through 14103 (20 
        U.S.C. 8801, 8803) (as transferred by paragraph (3)) as 
        sections 8101 through 8103, respectively; and
            (B) by redesignating the references to such sections 14101 
        through 14103 as references to sections 8101 through 8103, 
        respectively;
            (8)(A) by redesignating sections 14201 through 14206 (20 
        U.S.C. 8821, 8826) (as transferred by paragraph (3)) as 
        sections 8201 through 8206, respectively; and
            (B) by redesignating the references to such sections 14201 
        through 14206 as references to sections 8201 through 8206, 
        respectively;
            (9)(A) by redesignating sections 14301 through 14307 (20 
        U.S.C. 8851, 8857) (as transferred by paragraph (3)) as 
        sections 8301 through 8307, respectively; and
            (B) by redesignating the references to such sections 14301 
        through 14307 as references to sections 8301 through 8307, 
        respectively;
            (10)(A) by redesignating section 14401 (20 U.S.C. 8881) (as 
        transferred by paragraph (3)) as section 8401; and
            (B) by redesignating the references to such section 14401 
        as references to section 8401;
            (11)(A) by redesignating sections 14501 through 14513 (20 
        U.S.C. 8891, 8903) (as transferred by paragraph (3)) as 
        sections 8501 through 8513, respectively; and
            (B) by redesignating the references to such sections 14501 
        through 14513 as references to sections 8501 through 8513, 
        respectively;
            (12)(A) by redesignating sections 14601 and 14602 (20 
        U.S.C. 8921, 8922) (as transferred by paragraph (3)) as 
        sections 8601 and 8602, respectively; and
            (B) by redesignating the references to such sections 14601 
        and 14602 as references to sections 8601 and 8602, 
        respectively;
            (13)(A) by redesignating section 14701 (20 U.S.C. 8941) (as 
        transferred by paragraph (3)) as section 8701; and
            (B) by redesignating the references to such section 14701 
        as references to section 8701; and
            (14)(A) by redesignating sections 14801 and 14802 (20 
        U.S.C. 8961, 8962) (as transferred by paragraph (3)) as 
        sections 8901 and 8902, respectively; and
            (B) by redesignating the references to such sections 14801 
        and 14802 as references to sections 8901 and 8902, 
        respectively.
    (b) Amendments.--Title VIII (as so transferred and redesignated) is 
amended--
            (1) in section 8101(10) (as redesignated by subsection 
        (a)(7))--
                    (A) by striking subparagraphs (C) through (F); and
                    (B) by adding after subparagraph (B) the following:
                    ``(C) part A of title II;
                    ``(D) part A of title III; and
                    ``(E) title IV.'';
            (2) in section 8102 (as redesignated by subsection (a)(7)), 
        by striking ``VIII'' and inserting ``V'';
            (3) in section 8201 (as redesignated by subsection 
        (a)(8))--
                    (A) in subsection (a)(2), by striking ``, and 
                administrative funds under section 308(c) of the Goals 
                2000: Educate America Act''; and
                    (B) by striking subsection (f);
            (4) in section 8203(b) (as redesignated by subsection 
        (a)(8)), by striking ``Improving America's Schools Act of 
        1994'' and inserting ``Public Education Reinvestment, 
        Reinvention, and Responsibility Act'';
            (5) in section 8204 (as redesignated by subsection 
        (a)(8))--
                    (A) by striking subsection (b); and
                    (B) in subsection (a)--
                            (i) in paragraph (2)--
                                    (I) in the matter preceding 
                                subparagraph (A), by striking ``1995'' 
                                and inserting ``2002''; and
                                    (II) in subparagraph (B), by 
                                inserting ``professional development,'' 
                                after ``curriculum development,''; and
                            (ii) in paragraph (4)--
                                    (I) by striking ``and section 
                                410(b) of the Improving America's 
                                Schools Act of 1994'';
                                    (II) by striking ``paragraph (2)'' 
                                and inserting ``subsection (a)(2)'';
                                    (III) by striking the following:
            ``(4) Results.--'' and inserting the following:
    ``(b) Results.--'';
                                    (IV) by striking the following:
                    ``(A) develop'' and inserting the following:
            ``(1) develop''; and
                                    (V) by striking the following:
                    ``(B) within'' and inserting the following:
            ``(2) within'';
            (6) in section 8205(a)(1) (as redesignated by subsection 
        (a)(8)), by striking ``part A of title IX'' and inserting 
        ``subpart 1 of part C of title III'';
            (7) in section 8206 (as redesignated by subsection 
        (a)(8))--
                    (A) by striking ``(a) Unneeded Program Funds.--''; 
                and
                    (B) by striking subsection (b);
            (8) in section 8302(a)(2) (as redesignated by subsection 
        (a)(9))--
                    (A) by striking subparagraph (C); and
                    (B) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (C) and (D), respectively;
            (9) in section 8304(b) (as redesignated by subsection 
        (a)(9)), by striking ``Improving America's Schools Act of 
        1994'' and inserting ``Public Education Reinvestment, 
        Reinvention, and Responsibility Act'';
            (10) in section 8401 (as redesignated by subsection 
        (a)(10))--
                    (A) in subsection (a), by striking ``Except as 
                provided in subsection (c),'' and inserting ``Except as 
                provided in subsection (c), and notwithstanding any 
                other provision regarding waivers in this Act,''; and
                    (B) in subsection (c)(8), by striking ``part C of 
                title X'' and inserting ``part B of title IV'';
            (11) in section 8502 (as redesignated by subsection 
        (a)(11)), by striking ``VIII'' and inserting ``V'';
            (12) in section 8503(b)(1) (as redesignated by subsection 
        (a)(11))--
                    (A) by striking subparagraphs (B) through (E); and
                    (B) by adding at the end the following:
                    ``(B) part A of title II, relating to professional 
                development;
                    ``(C) title III; and
                    ``(D) title VI.'';
            (13) in section 8506(d) (as redesignated by subsection 
        (a)(11)), by striking ``Improving America's Schools Act of 
        1994'' and inserting ``Public Education Reinvestment, 
        Reinvention, and Responsibility Act'';
            (14) in section 8513 (as redesignated by subsection 
        (a)(11)), by striking ``Improving America's Schools Act of 
        1994'' each place it appears and inserting ``Public Education 
        Reinvestment, Reinvention, and Responsibility Act'';
            (15) in section 8601 (as redesignated by subsection 
        (a)(12))--
                    (A) in subsection (b)(3)--
                            (i) in subparagraph (A), by striking 
                        ``Improving America's Schools Act of 1994'' and 
                        inserting ``Public Education Reinvestment, 
                        Reinvention, and Responsibility Act''; and
                            (ii) in subparagraph (B), by striking 
                        ``Improving America's Schools Act'' and 
                        inserting ``Public Education Reinvestment, 
                        Reinvention, and Responsibility Act''; and
                    (B) in subsection (f), by striking ``Improving 
                America's Schools Act of 1994'' and inserting ``Public 
                Education Reinvestment, Reinvention, and Responsibility 
                Act''; and
            (16) in section 8701(b) (as redesignated by subsection 
        (a)(13))--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B)--
                                    (I) in clause (i), by striking 
                                ``Improving America's Schools Act of 
                                1994'' and inserting ``Public Education 
                                Reinvestment, Reinvention, and 
                                Responsibility Act'';
                                    (II) in clause (ii), by striking 
                                ``such as initiatives under the Goals 
                                2000: Educate America Act, and'' and 
                                inserting ``under''; and
                                    (III) in clause (ii), by striking 
                                ``such Acts'' and inserting ``such 
                                Act''; and
                            (ii) in subparagraph (C)(ii), by striking 
                        ``the School-to-Work Opportunities Act of 1994, 
                        and the Goals 2000: Educate America Act,'' and 
                        inserting ``and the School-to-Work 
                        Opportunities Act of 1994''; and
                    (B) in paragraph (3), by striking ``1998'' and 
                inserting ``2005''.

SEC. 802. OTHER REPEALS.

    Titles X, XI, XII, and XIII (20 U.S.C. 8001 et seq., 8401 et seq., 
8501 et seq., 8601 et seq.) and the Goals 2000: Educate America Act (20 
U.S.C. 5801 et seq.) are repealed.
                                 <all>