[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 7 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 7
To improve public education for all children and support lifelong
learning.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 22, 2001
Mr. Daschle (for himself, Mr. Kennedy, Mr. Dodd, Mr. Bingaman, Mrs.
Murray, Mr. Wellstone, Mr. Dorgan, Ms. Mikulski, Mr. Levin, Mrs.
Clinton, Mr. Schumer, Mr. Rockefeller, Mr. Johnson, Mr. Corzine, Mr.
Biden, Mr. Kerry, Mr. Reed, Mr. Dayton, and Mr. Durbin) introduced the
following bill; which was read twice and referred to the Committee on
Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To improve public education for all children and support lifelong
learning.
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 ``Educational
Excellence for All Learners Act of 2001''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. References.
TITLE I--HOLDING SCHOOLS ACCOUNTABLE
Sec. 100. Short title.
Subtitle A--Helping Disadvantaged Children
Sec. 101. Reservations for accountability.
Sec. 102. Improved accountability.
Sec. 103. Comprehensive school reform.
Subtitle B--Teachers
Sec. 121. State applications.
Subtitle C--Innovative Education
Sec. 131. Requirements for State plans.
Sec. 132. Performance objectives.
Sec. 133. Report cards.
Sec. 134. Additional accountability provisions.
TITLE II--CLOSING THE ACHIEVEMENT GAP
Subtitle A--Reauthorization of Programs
Sec. 201. Authorization of appropriations.
Subtitle B--Options: Opportunities to Improve our Nation's Schools
Sec. 211. Options: Opportunities to Improve our Nation's Schools.
Subtitle C--Parental Involvement
Sec. 221. State plans.
Sec. 222. Parental assistance.
TITLE III--NATIONAL PRIORITIES WITH PROVEN EFFECTIVENESS
Subtitle A--Qualified Teacher in Every Classroom
Sec. 301. Teacher quality.
Subtitle B--Safe, Healthy Schools and Communities
Chapter 1--Grants for School Renovation
Sec. 311. Grants for school renovation.
Sec. 312. Charter school credit enhancement initiative.
Chapter 2--School Construction
Sec. 321. Short title.
Sec. 322. Expansion of incentives for public schools.
Sec. 323. Application of certain labor standards on construction
projects financed under public school
modernization program.
Sec. 324. Employment and training activities relating to construction
or reconstruction of public school
facilities.
Sec. 325. Indian school construction.
Chapter 3--21st Century Community Learning Centers
Sec. 331. Reauthorization.
Chapter 4--Enhancement of Basic Learning Skills
Sec. 341. Reducing class size.
Sec. 342. Reading excellence.
Sec. 343. Tutorial assistance grants.
Chapter 5--Integration of Technology into the Classroom
Sec. 351. Short title.
Sec. 352. Local applications for school technology resource grants.
Sec. 353. Teacher preparation.
Sec. 354. Professional development.
TITLE IV--INDIVIDUALS WITH DISABILITIES EDUCATION ACT
Sec. 401. Full funding of IDEA.
TITLE V--MAKING HIGHER EDUCATION MORE AFFORDABLE
Sec. 501. Increase in maximum Pell grant.
Sec. 502. Deduction for higher education expenses.
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.).
TITLE I--HOLDING SCHOOLS ACCOUNTABLE
SEC. 100. SHORT TITLE.
This title may be cited as the ``School Improvement Accountability
Act''.
Subtitle A--Helping Disadvantaged Children
SEC. 101. RESERVATIONS FOR ACCOUNTABILITY.
Section 1003 (20 U.S.C. 6303) is amended to read as follows:
``SEC. 1003. RESERVATION FOR ACCOUNTABILITY AND SCHOOL IMPROVEMENT.
``(a) State Reservation.--
``(1) In general.--Each State educational agency shall
reserve 3 percent of the amount the agency receives under part
A for each of fiscal years 2002 and 2003, and 5 percent of that
amount for each of fiscal years 2004 through 2006, to carry out
paragraph (2) and to carry out its responsibilities under
sections 1116 and 1117, including carrying out its statewide
system of technical assistance and providing support for local
educational agencies.
``(2) Local educational agencies.--Of the amount reserved
under paragraph (1) for any fiscal year, the State educational
agency shall allocate at least 80 percent directly to local
educational agencies. In making allocations under this
paragraph, the State educational agency shall give first
priority to agencies, and agencies serving schools, identified
for corrective action or improvement under section 1116(c).
``(3) Use of funds.--Each local educational agency
receiving an allotment under paragraph (2) shall use the
allotment to--
``(A) carry out corrective action, as defined in
section 1116(c)(5)(A), in those schools; or
``(B) achieve substantial improvement in the
performance of those schools.
``(b) National Activities.--From the total amount appropriated for
any fiscal year to carry out this title, the Secretary may reserve not
more than 0.30 percent to conduct evaluations and studies and to
collect data.''.
SEC. 102. IMPROVED ACCOUNTABILITY.
(a) State Plans.--Section 1111(b) (20 U.S.C. 6311(b)) is amended--
(1) in the subsection heading, by striking ``and
Assessments'' and inserting ``, Assessments, and
Accountability'';
(2) by amending paragraph (2) to read as follows:
``(2) Adequate yearly progress.--(A) Each State plan shall
specify what constitutes adequate yearly progress in student
achievement, under the State's accountability system described
in paragraph (4), for each school and each local educational
agency receiving funds under this part, and for the State.
``(B) The specification of adequate yearly progress in the
State plan for schools--
``(i) shall be based primarily on the standards
described in paragraph (1) and the valid and reliable
assessments aligned to State standards described in
paragraph (3);
``(ii) shall include specific numerical adequate
yearly progress requirements in each subject and grade
included in the State assessments at least for each of
the assessments required under paragraph (3) and shall
base the numerical goal required for each group of
students specified in clause (iv) upon a timeline that
ensures all students meet or exceed the proficient
level of performance on the assessments required by
this section within 10 years after the effective date
of the School Improvement Accountability Act;
``(iii) shall include other academic indicators,
such as school completion or dropout rates, with the
data for all such academic indicators disaggregated as
required by clause (iv), but the inclusion of such
indicators shall not decrease the number of schools or
local educational agencies that would be subject to
identification for improvement or corrective action if
the indicators were not included;
``(iv) shall compare separately data for the State
as a whole, for each local educational agency, and for
each school, regarding the performance and progress of
students, disaggregated by each major ethnic and racial
group, by English proficiency status, and by
economically disadvantaged students as compared with
students who are not economically disadvantaged (except
that such disaggregation shall not be required in a
case in which the number of students in a category
would be insufficient to yield statistically reliable
information or the results would reveal individually
identifiable information about individual students);
and
``(v) shall compare the proportion of students at
the basic, proficient, and advanced levels of
performance in a grade for a year with the proportion
of students at each of the 3 levels in the same grade
in the previous year.
``(C)(i) Adequate yearly progress for a local educational
agency shall be based upon both--
``(I) the number or percentage of schools
identified for school improvement or corrective action;
and
``(II) the progress of the local educational agency
in reducing the number or length of time schools are
identified for school improvement or corrective action.
``(ii) The State plan shall provide that each local
educational agency shall ensure that, not later than the end of
the fourth academic year after the effective date of the School
Improvement Accountability Act, the percentage of schools
making adequate yearly progress among schools whose
concentrations of poor children are greater than the average
concentration of such children served by the local educational
agency shall not be less than the percentage of schools making
adequate yearly progress among schools whose concentrations of
poor children are less than the average concentration of such
children served by the local educational agency.
``(D)(i) Adequate yearly progress for a State shall be
based upon both--
``(I) the number or percentage of local educational
agencies identified for improvement or corrective
action; and
``(II) the progress of the State in reducing the
number or length of time local educational agencies are
identified for improvement or corrective action.
``(ii) The State plan shall provide that the State shall
ensure that, not later than the end of the fourth academic year
after the effective date of the School Improvement
Accountability Act, the percentage of local educational
agencies making adequate yearly progress among local
educational agencies whose concentrations of poor children are
greater than the State average of such concentrations shall not
be less than the percentage of local educational agencies
making adequate yearly progress among local educational
agencies whose concentrations of poor children are less than
the State average.'';
(3) in paragraph (3)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``developed or adopted''
and inserting ``in place''; and
(ii) by inserting ``, not later than the
school year 2000-2001,'' after ``will be
used'';
(B) by redesignating subparagraphs (G), (H), and
(I) as subparagraphs (H), (I), and (J);
(C) in subparagraph (F)--
(i) in clause (ii), by striking ``and''
after the semicolon; and
(ii) by adding at the end the following:
``(iv) the use of assessments written in
Spanish for the assessment of Spanish-speaking
students with limited English proficiency, if
Spanish-language assessments are more likely
than English language assessments to yield
accurate and reliable information regarding
what those students know and can do in content
areas other than English; and
``(v) notwithstanding clauses (iii) and
(iv), the assessment (using tests written in
English) of reading or language arts of any
student who has attended school in the United
States (not including Puerto Rico) for 3 or
more consecutive years, for purposes of school accountability;'';
(D) by inserting after subparagraph (F) the
following:
``(G) result in a report from each local
educational agency that indicates the number and
percentage of students excluded from each assessment at
each school, including, where statistically sound, data
disaggregated in accordance with subparagraph (J),
except that a local educational agency shall be
prohibited from providing such information if providing
the information would reveal the identity of any
individual student.''; and
(E) by amending subparagraph (I) (as so
redesignated) to read as follows:
``(I) provide individual student interpretive and
descriptive reports, which shall include scores and
other information on the attainment of student
performance standards that reflect the quality of daily
instruction and learning such as measures of student
coursework over time, student attendance rates, student
dropout rates, and rates of student participation in
advanced level courses; and``;
(4) by striking paragraph (7);
(5) by redesignating paragraphs (4), (5), (6), and (8) as
paragraphs (8), (9), (10), and (11), respectively;
(6) by inserting after paragraph (3) the following:
``(4) Accountability.--(A) Each State plan shall
demonstrate that the State has developed and is implementing a
statewide accountability system that is or will be effective in
substantially increasing the numbers and percentages of all
students, including the lowest performing students,
economically disadvantaged students, and students with limited
proficiency in English, who meet the State's proficient and
advanced levels of performance within 10 years after the date
of enactment of the School Improvement Accountability Act. The
State accountability system shall--
``(i) be the same accountability system the State
uses for all schools or all local educational agencies
in the State, if the State has an accountability system
for all schools or all local educational agencies in
the State;
``(ii) hold local educational agencies and schools
accountable for student achievement in at least reading
and mathematics and in any other subject that the State
may choose; and
``(iii) identify schools and local educational
agencies for improvement or corrective action based
upon failure to make adequate yearly progress as
defined in the State plan pursuant to paragraph (2).
``(B) The accountability system described in subparagraph
(A) and described in the State plan shall also include a
procedure for identifying for improvement a school or local
educational agency, intervening in that school or agency, and
(if that intervention is not effective) implementing a
corrective action not later than 3 years after first
identifying such agency or school, that--
``(i) complies with sections 1116 and 1117,
including the provision of technical assistance,
professional development, and other capacity-building
as needed, to ensure that schools and local educational
agencies so identified have the resources, skills, and
knowledge needed to carry out their obligations under
sections 1114 and 1115 and to meet the requirements for
adequate yearly progress described in paragraph (2);
and
``(ii) includes rigorous criteria for identifying
those agencies and schools based upon failure to make
adequate yearly progress in student achievement in
accordance with paragraph (2).
``(5) Public notice and comment.--Each State plan shall
contain assurances that--
``(A) in developing the State plan provisions
relating to adequate yearly progress, the State
diligently sought public comment from a range of
institutions and individuals in the State with an
interest in improved student achievement; and
``(B) the State will continue to make a substantial
effort to ensure that information regarding this part
is widely known and understood by citizens, parents,
teachers, and school administrators throughout the
State, and is provided in a widely read or distributed
medium.
``(6) Annual review.--The State plan shall provide an
assurance that the State will annually submit to the Secretary
information, as part of the State's consolidated plan under
section 14302, on the extent to which schools and local
educational agencies are making adequate yearly progress,
including the number and names of schools and local educational
agencies identified for improvement and corrective action under
section 1116, the steps taken to address the performance
problems of such schools and local educational agencies, and
the number and names of schools that are no longer so
identified, for purposes of determining State and local
compliance with section 1116.
``(7) Penalties.--(A) The State plan shall provide that, if
the State fails to meet the deadlines described in paragraphs
(1)(C) and (10) for demonstrating that the State has in place
high-quality State content and student performance standards
and aligned assessments, or if the State fails to establish a
system for measuring and monitoring adequate yearly progress,
for a fiscal year, including having the ability to disaggregate
student achievement data for the assessments as required under
this section at the State, local educational agency, and school
levels, then the State shall be ineligible to reserve a greater
amount of administrative funds under section 1003 for the
succeeding fiscal year than the State reserved for such
purposes for the fiscal year preceding the fiscal year in which
the failure occurred.
``(B)(i) The State plan shall provide that, except as
described in clause (ii), if the State fails to meet the
deadlines described in paragraphs (1)(C) and (10) for a fiscal
year, then the Secretary may withhold funds made available
under this part for administrative expenses for the succeeding
fiscal year in such amount as the Secretary determines
appropriate.
``(ii) The State plan shall provide that, if the State
fails to meet the deadlines described in paragraphs (1)(C) and
(10) for the succeeding fiscal year or a subsequent fiscal
year, the Secretary shall withhold not less than \1/5\ of the
funds made available under this part for administrative
expenses for the fiscal year.
``(C) The State plan shall provide that, if the State has
not developed challenging State assessments that are aligned to
challenging State content standards in at least mathematics and
reading or language arts by school year 2000-2001, the State
shall not be eligible for designation as an Ed-Flex Partnership
State under the Education Flexibility Partnership Act of 1999
until the State develops such assessments, and the State shall
be subject to such other penalties as are provided in this Act
for failure to develop the assessments.''; and
(7) by adding at the end the following:
``(12) School reports.--The State plan shall provide that
individual school reports publicized and disseminated under
section 1116(a)(2) shall include information on the total
number of students excluded from each assessment at each
school, including, where statistically sound, data
disaggregated in accordance with paragraph (3)(J), and shall
include information on why such students were excluded from the
assessment. In issuing this report, a local educational agency
may not provide any information that would violate the privacy
or reveal the identity of any individual student.''.
(b) Assurances.--Section 1112(c)(1) (20 U.S.C. 6312(c)(1)) is
amended--
(1) in subparagraph (G), by striking ``; and'' and
inserting a semicolon;
(2) in subparagraph (H), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(I) ensure, through incentives for voluntary
transfers, the provision of professional development,
and recruitment programs, that low-income students and
minority students are not taught at higher rates than
other students by unqualified, out-of-field, or
inexperienced teachers.''.
(c) Assessment and Improvement.--Section 1116 (20 U.S.C. 6317) is
amended--
(1) by amending subsection (a) to read as follows:
``(a) State and Local Review.--
``(1) In general.--Each local educational agency receiving
funds under this part shall use the State assessments and other
academic indicators described in the State plan or in a State-
approved local educational agency plan to review annually the
progress of each school served under this part by the agency to
determine whether the school is making the adequate yearly
progress specified in section 1111(b)(2) toward enabling all
students to meet the State's student performance standards
described in the State plan.
``(2) Publication and dissemination; results.--Each local
educational agency receiving funds under this part shall--
``(A) publicize and disseminate in individual
school reports that include statistically sound results
disaggregated in the same manner as results are
disaggregated under section 1111(b)(3)(J), to teachers
and other staff, parents, students, and the community,
the results of the annual review under paragraph (1)
and (if not already included in the review), graduation
rates, attendance rates, retention rates, and rates of
participation in advanced level courses, for all
schools served under this part; and
``(B) provide the results of the annual review to
schools served by the agency under this part so that
the schools can continually refine their programs of
instruction to help all students served under this part
in those schools to meet the State's student
performance standards.'';
(2) in subsection (c)--
(A) by amending paragraph (1) to read as follows:
``(1) In general.--(A) A local educational agency shall
identify for school improvement any school served under this
part that--
``(i) for 2 consecutive years failed to make
adequate yearly progress as defined in the State's plan
under section 1111, except that in the case of a school
participating in a targeted assistance program under
section 1115, a local educational agency may review the
progress of only those students in such school who are
served under this part; or
``(ii) was identified for school improvement under
this section on the day preceding the date of enactment
of the School Improvement Accountability Act.
``(B) The 2-year period described in subparagraph (A)(i)
shall include any continuous period of time immediately
preceding the date of the enactment of such Act, during which a
school did not make adequate yearly progress as defined in the
State's plan, as such plan was in effect on the day preceding
the date of enactment.'';
(B) by amending paragraph (2) to read as follows:
``(2) Requirements.--(A)(i) Each school identified under
paragraph (1)(A) shall promptly notify a parent of each student
enrolled in the school that the school was identified for
improvement by the local educational agency and provide with
the notification--
``(I) the reasons for such identification; and
``(II) information about opportunities for parents
to participate in the school improvement process.
``(ii) The notification under this subparagraph shall be in
a format and, to the extent practicable, in a language, that
the parents can understand.
``(B)(i) Before identifying a school for school improvement
under paragraph (1)(A), the local educational agency shall
inform the school that the agency proposes to identify the
school for school improvement and provide the school with an
opportunity to review the school-level data, including
assessment data, upon which the proposed determination
regarding identification is based.
``(ii) If the school believes that the proposed
identification is in error for statistical or other substantive
reasons, the school may provide supporting evidence to the
local educational agency during the review period, and the
agency shall consider such evidence before making a final
determination regarding identification.
``(iii) The review period under this subparagraph shall not
exceed 30 days. At the end of the period, the agency shall make
public a final determination regarding indentification of the
school.
``(C) Each school identified under paragraph (1)(A) shall,
within 3 months after being so identified, and in consultation
with parents, the local educational agency, and the school
support team or other outside experts, develop or revise a
school plan that--
``(i) addresses the fundamental teaching and
learning needs in the school;
``(ii) describes the specific achievement problems
to be solved;
``(iii) includes the strategies, supported by valid
and reliable evidence of effectiveness, with specific
goals and objectives, that have the greatest likelihood
of improving the performance of participating students
in meeting the State's student performance standards;
``(iv) explains how those strategies will work to
address the achievement problems identified under
clause (ii), including providing a summary of
evaluation-based evidence of student achievement after
implementation of those strategies in other schools;
``(v) addresses the need for high-quality staff by
ensuring that all new teachers in the school in
programs supported with funds provided under this part
are fully qualified;
``(vi) addresses the professional development needs
of the instructional staff of the school by describing
a plan for spending a minimum of 10 percent of the
funds received by the school under this part on
professional development that--
``(I) does not supplant professional
development services that the instructional
staff would otherwise receive; and
``(II) is designed to increase the content
knowledge of teachers, build teachers' capacity
to align classroom instruction with challenging
content standards, and bring all students in
the school to proficient or advanced levels of
performance;
``(vii) identifies specific goals and objectives
the school will undertake for making adequate yearly
progress, including specific numerical performance
goals and targets that are high enough to ensure that
all groups of students specified in section
1111(b)(2)(B)(iv) meet or exceed the proficient levels
of performance in each subject area within 10 years
after the date of enactment of the School Improvement
Accountability Act; and
``(viii) specifies the responsibilities of the
school and the local educational agency, including how
the local educational agency will hold the school
accountable for, and assist the school in, meeting the
school's obligations to provide enriched and
accelerated curricula, effective instructional methods,
highly qualified professional development, and timely
and effective individual assistance, in partnership
with parents.
``(D)(i) The school shall submit the plan (including a
revised plan) to the local educational agency for approval.
``(ii) The local educational agency shall promptly subject
the plan to a peer review process, work with the school to
revise the plan as necessary, and approve the plan.
``(iii) The school shall implement the plan as soon as the
plan is approved.'';
(C) by amending paragraph (4) to read as follows:
``(4) Technical assistance.--(A) For each school identified
for school improvement under paragraph (1)(A), the local
educational agency shall provide technical assistance as the
school develops and implements the school's plan.
``(B) Such technical assistance--
``(i) shall include information on effective
methods and instructional strategies that are supported
by valid and reliable evidence of effectiveness;
``(ii) shall be designed to strengthen the core
academic program for the students served under this
part, address specific elements of student performance
problems, and address problems, if any, in implementing
the parental involvement requirements in section 1118,
implementing the professional development provisions in
section 1119, and carrying out the responsibilities of
the school and local educational agency under the plan;
and
``(iii) may be provided directly by the local
educational agency, through mechanisms authorized under
section 1117, or (with the local educational agency's
approval) by an institution of higher education whose teacher
preparation program is not identified as low performing by its State
and that is in full compliance with the requirements of section 207 of
the Higher Education Act of 1965, a private nonprofit organization, an
educational service agency, a comprehensive regional assistance center
under part A of title XIII, or other entities with experience in
helping schools improve achievement.
``(C) Technical assistance provided under this section by
the local educational agency or an entity approved by such
agency shall be supported by valid and reliable evidence of
effectiveness.'';
(D) by amending paragraph (5) to read as follows:
``(5) Corrective action.--In order to help students served
under this part meet challenging State standards, each local
educational agency shall implement a system of corrective
action in accordance with the following:
``(A) In this paragraph, the term `corrective
action' means action, consistent with State and local
law, that--
``(i) substantially and directly responds
to the consistent academic failure that caused
the local educational agency to take such
action and to any underlying staffing,
curricular, or other problems in the school
involved; and
``(ii) is designed to substantially
increase the likelihood that students will
perform at the proficient and advanced
performance levels.
``(B) After providing technical assistance under
paragraph (4), the local educational agency--
``(i) may take corrective action at any
time with respect to a school that has been
identified under paragraph (1)(A);
``(ii) shall take corrective action with
respect to any school that fails to make
adequate yearly progress, as defined by the
State, for 2 consecutive years following the
school's identification under paragraph (1)(A),
at the end of the second year; and
``(iii) shall continue to provide technical
assistance while instituting any corrective
action under clause (i) or (ii).
``(C) In the case of a school described in
subparagraph (B)(ii), the local educational agency--
``(i) shall take corrective action that
changes the school's administration or
governance by--
``(I) instituting and fully
implementing a new curriculum,
including providing appropriate
professional development for all
relevant staff, that is supported by
valid and reliable evidence of
effectiveness and offers substantial
promise of improving educational
achievement for low-performing
students;
``(II) restructuring the school,
such as by creating schools within
schools or other small learning
environments, or making alternative
governance arrangements (such as the
creation of a public charter school);
``(III) redesigning the school by
reconstituting all or part of the
school staff;
``(IV) eliminating the use of
noncredentialed teachers; or
``(V) closing the school;
``(ii) shall provide professional
development for all relevant staff, that is
supported by valid and reliable evidence of
effectiveness and that offers substantial
promise of improving student educational
achievement and is directly related to the
content area in which each teacher is providing
instruction and the State's content and
performance standards in that content area; and
``(iii) may defer, reduce, or withhold
funds provided to carry out this title.
``(D)(i) When a local educational agency has
identified a school for corrective action under
subparagraph (B)(ii), the agency shall provide all
students enrolled in the school with the option to
transfer to another public school that is within the
area served by the local educational agency that has
not been identified for school improvement and provide
such students with transportation (or the costs of
transportation) to such school, subject to the
following requirements:
``(I) Such transfer must be consistent with
State or local law.
``(II) If the local educational agency
cannot accommodate the request of every student
from the identified school, the agency shall
permit as many students as possible to
transfer, with such students being selected at
random on a nondiscriminatory and equitable
basis.
``(III) The local educational agency may
use not more than 10 percent of the funds the
local educational agency receives through the
State reservation under section 1003(a)(2) to
provide transportation to students whose
parents choose to transfer the students to a
different school under this subparagraph.
``(ii) If all public schools served by the local
educational agency are identified for corrective
action, the agency shall, to the extent practicable,
establish a cooperative agreement with another local
educational agency in the area to enable students
served by the agency to transfer to a school served by
that other agency.
``(E) A local educational agency may delay, for a
period not to exceed 1 year, implementation of
corrective action if the failure to make adequate
yearly progress was justified due to exceptional or
uncontrollable circumstances such as a natural disaster
or a precipitous and unforeseen decline in the
financial resources of the local educational agency or
school.
``(F) The local educational agency shall publish
and disseminate to parents and the public in a format
and, to the extent practicable, in a language the
parents and the public can understand, through such
means as the Internet, the media, and public agencies,
information on any corrective action the agency takes
under this paragraph.
``(G)(i) Before taking corrective action with
respect to any school under this paragraph, the local
educational agency shall inform the school that the
agency proposes to take corrective action and provide
the school with an opportunity to review the school-
level data, including assessment data, upon which the
proposed determination regarding corrective action is
based.
``(ii) If the school believes that the proposed
determination is in error for statistical or other
substantive reasons, the school may provide supporting
evidence to the local educational agency during the
review period, and the agency shall consider such
evidence before making a final determination regarding
corrective action.
``(iii) The review period under this subparagraph
shall not exceed 45 days. At the end of the period, the
local educational agency shall make public a final
determination regarding corrective action for the
school.'';
(E) by amending paragraph (6) to read as follows:
``(6) State educational agency responsibilities.--If a
State educational agency determines that a local educational
agency failed to carry out its responsibilities under this
section, the State educational agency shall take such action as
the agency finds necessary, consistent with this section, to
improve the affected schools and to ensure that the local
educational agency carries out its responsibilities under this
section.''; and
(F) by amending paragraph (7) to read as follows:
``(7) Waivers.--The State educational agency shall review
any waivers that have previously been approved for a school
identified for improvement or corrective action, and shall
terminate any waiver approved by the State, under the
Educational Flexibility Partnership Act of 1999, if the State
determines, after notice and an opportunity for a hearing, that
the waiver is not helping such school make adequate yearly
progress toward meeting the goals, objectives, and performance
targets in the school's improvement plan.''; and
(3) by amending subsection (d) to read as follows:
``(d) State Review and Local Educational Agency Improvement.--
``(1) In general.--A State educational agency shall
annually review the progress of each local educational agency
receiving funds under this part to determine whether schools
receiving assistance under this part are making adequate yearly
progress as defined in section 1111(b)(2) toward meeting the
State's student performance standards.
``(2) Identification of local educational agency for
improvement.--A State educational agency shall identify for
improvement any local educational agency that--
``(A) for 2 consecutive years failed to make
adequate yearly progress as defined in the State's plan
under section 1111(b)(2); or
``(B) was identified for improvement under this
section as this section was in effect on the day
preceding the date of enactment of the School
Improvement Accountability Act.
``(3) Transition.--The 2-year period described in paragraph
(2)(A) shall include any continuous period of time immediately
preceding the date of enactment of such Act, during which a
local educational agency did not make adequate yearly progress
as defined in the State's plan, as such plan was in effect on
the day preceding the date of enactment.
``(4) Targeted assistance schools.--For purposes of
reviewing the progress of targeted assistance schools served by
a local educational agency, a State educational agency may
choose to review the progress of only the students in such
schools who are served under this part.
``(5) Opportunity to review and present evidence.--(A)
Before identifying a local educational agency for improvement
under paragraph (2), a State educational agency shall inform
the local educational agency that the State educational agency
proposes to identify the local educational agency for
improvement and provide the local educational agency with an
opportunity to review the local educational agency data,
including assessment data, upon which the proposed
determination regarding identification is based.
``(B) If the local educational agency believes that the
proposed identification is in error for statistical or other
substantive reasons, the agency may provide supporting evidence
to the State educational agency during the review period, and
the agency shall consider such evidence before making a final
determination regarding identification.
``(C) The review period under this paragraph shall not
exceed 30 days. At the end of the period, the State shall make
public a final determination regarding identification of the
local educational agency.
``(6) Notification to parents.--(A) The local educational
agency shall promptly notify a parent of each student enrolled
in a school served by a local educational agency identified for
improvement that the agency was identified for improvement and
provide with the notification--
(i) the reasons for the agency's
identification; and
(ii) information about opportunities for
parents to participate in upgrading the quality
of the local educational agency.
``(B) The notification under this paragraph shall be in a
format and, to the extent practicable, in a language, that the
parents can understand.
``(7) Local educational agency revisions.--(A) Each local
educational agency identified under paragraph (2) shall, not
later than 3 months after being so identified, develop or
revise a local educational agency plan and annual academic
achievement goals, in consultation with parents, school staff,
and others.
``(B) Achievement goals.--The annual academic achievement
goals shall be sufficiently high to ensure that all students
within the jurisdiction involved, including the lowest
performing students, economically disadvantaged students,
students of different races and ethnicities, and students with
limited English proficiency will meet or exceed the proficient
level of performance on the assessments required by section
1111 within 10 years after the date of enactment of the School
Improvement Accountability Act.
``(C) The plan shall--
``(i) address the fundamental teaching and learning
needs in the schools served by that agency, and the
specific academic problems of low-performing students,
including stating a determination of why the local
educational agency's prior plan, if any, failed to
bring about increased achievement;
``(ii) incorporate strategies that are supported by
valid and reliable evidence of effectiveness and that
strengthen the core academic program in the local
educational agency;
``(iii) identify specific annual academic
achievement goals and objectives that will--
``(I) have the greatest likelihood of
improving the performance of participating
students in meeting the State's student
performance standards; and
``(II) include specific numerical
performance goals and targets for each of the
groups of students for which data are
disaggregated pursuant to section
1111(b)(2)(B)(iv);
``(iv) address the professional development needs
of the instructional staff of the schools by describing
a plan for spending a minimum of 10 percent of the
funds received by the schools under this part on
professional development that--
``(I) does not supplant professional
development services that the instructional
staff would otherwise receive; and
``(II) is designed to increase the content
knowledge of teachers, build teachers' capacity
to align classroom instruction with challenging
content standards, and bring all students in
the schools to proficient or advanced levels of
performance;
``(v) identify measures the local educational
agency will undertake to make adequate yearly progress;
``(vi) identify how, pursuant to paragraph (6), the
local educational agency will provide written
notification to parents in a format and, to the extent
practicable, in a language the parents can understand;
``(vii) specify the responsibilities of the State
educational agency and the local educational agency
under the plan; and
``(viii) include strategies to promote effective
parental involvement in the schools.
``(D) The local educational agency shall submit the plan
(including a revised plan) to the State educational agency for
approval. The State educational agency shall, within 60 days
after submission of the plan, subject the plan to a peer review
process, work with the local educational agency to revise the
plan as necessary, and approve the plan.
``(E) The local educational agency shall implement the plan
(including a revised plan) as soon as the plan is approved.
``(8) State educational agency responsibility.--(A) For
each local educational agency identified under paragraph (2),
the State educational agency (or an entity authorized by the
agency) shall provide technical or other assistance, if
requested, as authorized under section 1117, to better enable
the local educational agency--
``(i) to develop and implement the local
educational agency plan as approved by the State
educational agency consistent with the requirements of
this section; and
``(ii) to work with schools identified for
improvement.
``(B) Technical assistance provided under this section by
the State educational agency or an entity authorized by the
agency shall be supported by valid and reliable evidence of
effectiveness.
``(9) Corrective action.--In order to help students served
under this part meet challenging State standards, each State
educational agency shall implement a system of corrective
action in accordance with the following:
``(A) In this paragraph, the term `corrective
action' means action, consistent with State law, that--
``(i) substantially and directly responds
to the consistent academic failure that caused
the State educational agency to take such
action and to any underlying staffing,
curricular, or other problems in the schools
involved; and
``(ii) is designed to substantially
increase the likelihood that students served
under this part will perform at the proficient
and advanced performance levels.
``(B) After providing technical assistance under
paragraph (8) and subject to subparagraph (D), the
State educational agency--
``(i) may take corrective action at any
time with respect to a local educational agency
that has been identified under paragraph (2);
``(ii) shall take corrective action with
respect to any local educational agency that
fails to make adequate yearly progress, as
defined by the State, for 3 consecutive years
following the agency's identification under
paragraph (2), at the end of the third year;
and
``(iii) shall continue to provide technical
assistance while instituting any corrective
action under clause (i) or (ii).
``(C) In the case of a local educational agency
described in subparagraph (B)(ii), the State
educational agency shall take at least 1 of the
following corrective actions:
``(i) Withholding funds from the local
educational agency.
``(ii) Reconstituting school district
personnel.
``(iii) Removing particular schools from
the jurisdiction of the local educational
agency and establishing alternative
arrangements for public governance and
supervision of the schools.
``(iv) Appointing, through the State
educational agency, a receiver or trustee to
administer the affairs of the local educational
agency in place of the superintendent and
school board.
``(v) Abolishing or restructuring the local
educational agency.
``(D) When a State educational agency has
identified a local educational agency for corrective
action under subparagraph (B)(ii), the State
educational agency shall provide all students enrolled
in a school served by the local educational agency with
a plan to transfer to a higher performing public school
served by another local educational agency and shall
provide such students with transportation (or the costs
of transportation) to such schools, subject to the
following requirements:
``(i) The provision of the transfer shall
be done in conjunction with at least 1
additional action described in this paragraph.
``(ii) If the State educational agency
cannot accommodate the request of every student
from the schools served by the agency, the
agency shall permit as many students as
possible to transfer, with such students being
selected at random on a nondiscriminatory and
equitable basis.
``(iii) The State educational agency may
use not more than 10 percent of the funds the
agency receives through the State reservation
under section 1003(a)(2) to provide
transportation to students whose parents choose
to transfer their child to a different school
under this subparagraph.
``(E) Prior to implementing any corrective action
under this paragraph, the State educational agency
shall provide due process and a hearing to the affected
local educational agency, if State law provides for
such process and hearing. The hearing shall take place
not later than 45 days following the decision to
implement the corrective action.
``(F) The State educational agency shall publish
and disseminate to parents and the public in a format
and, to the extent practicable, in a language the
parents and the public can understand, through such
means as the Internet, the media, and public agencies,
information on any corrective action the agency takes
under this paragraph.
``(G) A State educational agency may delay, for a
period not to exceed 1 year, implementation of
corrective action if the failure to make adequate
yearly progress was justified due to exceptional or
uncontrollable circumstances such as a natural disaster
or a precipitous and unforeseen decline in the
financial resources of the local educational agency.
``(10) Waivers.--The State educational agency shall review
any waivers that have previously been approved for a local
educational agency identified for improvement or corrective
action, and shall terminate any waiver approved by the State,
under the Educational Flexibility Partnership Act of 1999,
if the State determines, after notice and an opportunity for a hearing,
that the waiver is not helping such agency make adequate yearly
progress toward meeting the goals, objectives, and performance targets
in the agency's improvement plan.''.
(d) State Assistance for School Support and Improvement.--Section
1117(a) (20 U.S.C. 6318(a)) is amended to read as follows:
``(a) System for Support.--
``(1) In general.--Each State educational agency shall
establish a statewide system of intensive and sustained support
and improvement for local educational agencies and schools
receiving funds under this part, in order to increase the
opportunity for all students served by those agencies and
schools to meet the State's content standards and student
performance standards.
``(2) Priorities.--In carrying out this section, a State
educational agency shall--
``(A) provide support and assistance to local
educational agencies and schools identified for
corrective action under section 1116;
``(B) provide support and assistance to other local
educational agencies and schools identified for
improvement under section 1116; and
``(C) provide support and assistance to each school
receiving funds under this part in which the number of
students in poverty equals or exceeds 75 percent of the
total number of students enrolled in such school.
``(3) Approaches.--In order to achieve the objectives of
this subsection, each statewide system shall provide technical
assistance and support through approaches such as--
``(A) use of school support teams, composed of
individuals who are knowledgeable about research on and
practice of teaching and learning, particularly about
strategies for improving educational results for low-
achieving students;
``(B) the designation and use of `Distinguished
Educators', chosen from schools served under this part
that have been especially successful in improving
academic achievement;
``(C) assisting local educational agencies or
schools to implement research-based comprehensive
school reform models; and
``(D) use of a peer review process designed to
increase the capacity of local educational agencies and
schools to develop high-quality school improvement
plans.
``(4) Funds.--Each State educational agency--
``(A) shall use funds reserved under section
1003(a)(1), but not used under section 1003(a)(2) and
funds appropriated under section 1002(f) to carry out
this section; and
``(B) may use State administrative funds authorized
for such purpose.
``(5) Alternatives.--The State educational agency may
devise additional approaches to providing the assistance
described in subparagraphs (A) and (B) of paragraph (3), other
than the provision of assistance under the statewide system,
such as providing assistance through institutions of higher
education, educational service agencies, or other local
consortia. The State educational agency may seek approval from
the Secretary to use funds made available under section 1003
for such approaches as part of the State plan.''.
(e) Conforming Amendments.--The 1965 (20 U.S.C. 6301 et seq.) is
amended--
(1) in section 1111(b)(1)(C) (20 U.S.C. 6311(b)(1)(C)), by
striking ``paragraph (6)'' and inserting ``paragraph (10)'';
(2) in section 1112(c)(1)(D) (20 U.S.C. 6312(c)(1)(D)), by
striking ``section 1116(c)(4)'' and inserting ``section
1116(c)(5)'';
(3) in section 1117(c)(2)(A) (20 U.S.C. 6318(c)(2)(A)), by
striking ``section 1111(b)(2)(A)(i)'' and inserting ``section
1111(b)(2)(A)'';
(4) in section 1118(c)(4)(B) (20 U.S.C. 6319(c)(4)(B)), by
striking ``school performance profiles required under section
1116(a)(3)'' and inserting ``individual school reports required
under section 1116(a)(2)(A)'';
(5) in section 1118(e)(1) (20 U.S.C. 6319(e)(1)), by
striking ``section 1111(b)(8)'' and inserting ``section
1111(b)(11)''; and
(6) in section 1119(h)(3) (20 U.S.C. 6320(h)(3)), by
striking ``section 1116(d)(6)'' and inserting ``section
1116(d)(9)''.
SEC. 103. COMPREHENSIVE SCHOOL REFORM.
Title I (20 U.S.C. 6301 et seq.) is amended--
(1) by redesignating part F as part G; and
(2) by inserting after part E the following:
``PART F--COMPREHENSIVE SCHOOL REFORM
``SEC. 1551. PURPOSE.
``The purpose of this part is to provide financial incentives for
schools to develop comprehensive school reforms based upon promising
and effective practices and research-based programs that emphasize
basic academics and parental involvement so that all children can meet
challenging State content and student performance standards.
``SEC. 1552. PROGRAM AUTHORIZATION.
``(a) Program Authorized.--
``(1) In general.--The Secretary may award grants to State
educational agencies, from allotments under paragraph (2), to
enable the State educational agencies to award subgrants to
local educational agencies to carry out the purpose described
in section 1551.
``(2) Allotments.--
``(A) Reservations.--Of the amount appropriated
under section 1558 for a fiscal year, the Secretary may
reserve--
``(i) not more than 1 percent to provide
assistance to schools supported by the Bureau
of Indian Affairs and in the United States
Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands
according to their respective needs for assistance under this part; and
``(ii) not more than 1 percent to conduct
national evaluation activities described in
section 1557.
``(B) In general.--Of the amount appropriated under
section 1558 that remains after making the reservation
under subparagraph (A) for a fiscal year, the Secretary
shall allot to each State for the fiscal year an amount
that bears the same ratio to the remainder for that
fiscal year as the amount made available under section
1124 to the State for the preceding fiscal year bears
to the total amount made available under section 1124
to all States for the preceding fiscal year.
``(C) Reallotment.--If a State does not apply for
funds under this part, the Secretary shall reallot such
funds to other States in proportion to the amount
allotted to such other States under subparagraph (B).
``SEC. 1553. STATE APPLICATIONS.
``(a) In General.--Each State educational agency that desires to
receive a grant under this part shall submit an application to the
Secretary at such time, in such manner, and containing such information
as the Secretary may reasonably require.
``(b) Contents.--Each such application shall describe--
``(1) the process and selection criteria by which the State
educational agency, using expert review, will select local
educational agencies to receive subgrants under this part;
``(2) how the State educational agency will ensure that
only comprehensive school reforms that are based upon promising
and effective practices and research-based programs receive
funds under this part;
``(3) how the State educational agency will disseminate
information on comprehensive school reforms that are based upon
promising and effective practices and research-based programs;
``(4) how the State educational agency will evaluate the
implementation of such reforms and measure the extent to which
the reforms have resulted in increased student academic
performance; and
``(5) how the State educational agency will make available
technical assistance to a local educational agency in
evaluating, developing, and implementing comprehensive school
reform.
``SEC. 1554. STATE USE OF FUNDS.
``(a) In General.--Except as provided in subsection (e), a State
educational agency that receives a grant under this part shall use the
grant funds to award subgrants, on a competitive basis, to local
educational agencies (including consortia of local educational
agencies) in the State that receive funds under part A.
``(b) Subgrant Requirements.--A subgrant to a local educational
agency shall be--
``(1) of sufficient size and scope to support the initial
costs for the particular comprehensive school reform plan
selected or designed by each school identified in the
application of the local educational agency;
``(2) in an amount not less than $50,000 for each
participating school; and
``(3) renewable for 2 additional 1-year periods after the
initial 1-year grant is made, if the participating school is
making substantial progress in the implementation of reforms.
``(c) Priority.--A State educational agency, in awarding subgrants
under this part, shall give priority to local educational agencies
that--
``(1) plan to use the funds in schools identified for
improvement or corrective action under section 1116(c); and
``(2) demonstrate a commitment to assist schools with
budget allocation, professional development, and other
strategies necessary to ensure that comprehensive school
reforms are properly implemented and are sustained in the
future.
``(d) Grant Consideration.--In awarding subgrants under this part,
the State educational agency shall take into consideration the
equitable distribution of subgrants to different geographic regions
within the State, including urban and rural areas, and to schools
serving elementary school and secondary school students.
``(e) Administrative Costs.--A State educational agency that
receives a grant under this part may reserve not more than 5 percent of
the grant funds for administrative, evaluation, and technical
assistance expenses.
``(f) Supplement.--Funds made available under this part shall be
used to supplement, and not supplant, any other Federal, State, or
local funds that would otherwise be available to carry out the
activities assisted under this part.
``(g) Reporting.--Each State educational agency that receives a
grant under this part shall provide to the Secretary such information
as the Secretary may require, including the names of local educational
agencies and schools receiving assistance under this part, the amount
of the assistance, and a description of the comprehensive school reform
model selected and used.
``SEC. 1555. LOCAL APPLICATIONS.
``(a) In General.--Each local educational agency desiring a
subgrant under this part shall submit an application to the State
educational agency at such time, in such manner, and containing such
information as the State educational agency may reasonably require.
``(b) Contents.--Each such application shall--
``(1) identify the schools, that are eligible for
assistance under part A, that plan to implement a comprehensive
school reform program and include the projected costs of such
program;
``(2) describe the promising and effective practices and
research-based programs that such schools will implement;
``(3) describe how the local educational agency will
provide technical assistance and support for the effective
implementation of the promising and effective practices and
research-based school reforms selected by such schools; and
``(4) describe how the local educational agency will
evaluate the implementation of such reforms and measure the
results achieved in improving student academic performance.
``SEC. 1556. LOCAL USE OF FUNDS.
``(a) Use of Funds.--A local educational agency that receives a
subgrant under this part shall provide the subgrant funds to schools,
that are eligible for assistance under part A and served by the agency,
to enable the schools to implement a comprehensive school reform
program for--
``(1) employing innovative strategies for student learning,
teaching, and school management that are based upon promising
and effective practices and research-based programs and have
been replicated successfully in schools with diverse
characteristics;
``(2) integrating a comprehensive design for effective
school functioning, including instruction, assessment,
classroom management, professional development, parental
involvement, and school management, that aligns the school's
curriculum, technology, and professional development into a
comprehensive reform plan for schoolwide change designed to
enable all students to meet challenging State content and
student performance standards and addresses needs identified
through a school needs assessment;
``(3) providing high quality and continuous teacher and
staff professional development;
``(4) including measurable goals for student performance;
``(5) providing support to teachers, principals,
administrators, and other school personnel staff;
``(6) including meaningful community and parental
involvement initiatives that will strengthen school improvement
activities;
``(7) using high quality external technical support and
assistance from an entity that has experience and expertise in
schoolwide reform and improvement, which may include an
institution of higher education;
``(8) evaluating school reform implementation and student
performance; and
``(9) identifying other resources, including Federal,
State, local, and private resources, that will be used to
coordinate services supporting and sustaining the school reform
effort.
``(b) Special Rule.--A school that receives funds to develop a
comprehensive school reform program shall not be limited to using the
approaches identified or developed by the Secretary, but may develop
the school's own comprehensive school reform programs for schoolwide
change as described in subsection (a).
``SEC. 1557. NATIONAL EVALUATION AND REPORTS.
``(a) In General.--The Secretary shall develop a plan for a
national evaluation of the programs assisted under this part.
``(b) Evaluation.--The national evaluation shall--
``(1) evaluate the implementation and results achieved by
schools after 3 years of implementing comprehensive school
reforms; and
``(2) assess the effectiveness of comprehensive school
reforms in schools with diverse characteristics.
``(c) Reports.--Prior to the completion of the national evaluation,
the Secretary shall submit an interim report describing implementation
activities for the Comprehensive School Reform Program to the Committee
on Education and the Workforce, and the Committee on Appropriations, of
the House of Representatives, and the Committee on Health, Education,
Labor, and Pensions, and the Committee on Appropriations, of the
Senate.
``SEC. 1558. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$500,000,000 for fiscal year 2002 and such sums as may be necessary for
each of the 4 succeeding fiscal years.''.
Subtitle B--Teachers
SEC. 121. STATE APPLICATIONS.
(a) Contents of State Plan.--Section 2205(b)(2) (20 U.S.C.
6645(b)(2)) is amended--
(1) by amending subparagraph (N) to read as follows:
``(N) set specific annual, quantifiable, and
measurable performance goals to increase the percentage
of teachers participating in sustained professional
development activities, reduce the beginning teacher
attrition rate, and reduce the percentage of teachers
who are not certified or licensed, and the percentage
who are out-of-field teachers;'';
(2) by redesignating subparagraph (O) as subparagraph (P);
and
(3) by inserting after subparagraph (N) the following:
``(O) describe how the State will ensure that all
teachers in the State will be fully qualified not later
than December 1, 2005; and''.
(b) State and Local Activities.--Part B of title II (20 U.S.C. 6641
et seq.) is amended--
(1) by redesignating section 2211 as section 2215;
(2) by inserting after section 2210 the following:
``SEC. 2211. LOCAL CONTINUATION OF FUNDING.
``(a) Agencies.--If a local educational agency applies for funds
from a State under this part for a fourth or subsequent fiscal year,
the agency may not receive the funds for that fiscal year unless the
State determines that the agency has demonstrated that, in carrying out
activities under this part during the past fiscal year, the agency has
annual numerical performance objectives consisting of--
``(1) improved student performance for all groups
identified in section 1111;
``(2) an increased percentage of teachers participating in
sustained professional development activities;
``(3) a reduction in the beginning teacher attrition rate
for the agency; and
``(4) a reduction in the percentage of teachers who are not
certified or licensed, and the percentage who are out-of-field
teachers, for the agency.
``(b) Schools.--If a local educational agency applies for funds
under this part on behalf of a school for a fourth or subsequent fiscal
year (including applying for funds as part of a partnership), the
agency may not receive the funds for the school for that fiscal year
unless the State determines that the school has demonstrated that, in
carrying out activities under this part during the past fiscal year,
the school has met the requirements of paragraphs (1) through (4) of
subsection (a).
``SEC. 2212. INFORMATION AND NOTICE TO PARENTS.
``(a) Parents' Right To Know Information.--
``(1) In general.--A local educational agency that receives
funds under this title shall provide, on request, in an
understandable and uniform format, to any parent of a student
attending any school served by the agency, information
regarding the professional qualifications of each of the
student's classroom teachers.
``(2) Contents.--The agency shall provide, at a minimum,
information on--
``(A) whether the teacher has met State
certification or licensing criteria for the academic
subjects and grade levels in which the teacher teaches
the student;
``(B) whether the teacher is teaching with
emergency or other provisional credentials, due to
which any State certification or licensing criteria
have been waived; and
``(C) the academic qualifications of the teacher in
the academic subjects and grade levels in which the
teacher teaches.
``(b) Notice.--In addition to providing the information described
in subsection (a), if a school that receives funds under this title
assigns a student to a teacher who is not a fully qualified teacher or
assigns a student, for 2 or more consecutive weeks, to a substitute
teacher who is not a fully qualified teacher, the school shall provide
notice of the assignment to a parent of the student, not later than 15
school days after the assignment.
``SEC. 2213. GENERAL ACCOUNTING OFFICE STUDY.
``Not later than September 30, 2005, the Comptroller General of the
United States shall prepare and submit to the Committee on Education
and the Workforce of the House of Representatives and the Committee on
Health, Education, Labor, and Pensions of the Senate a study setting
forth information regarding the progress of States' compliance in
increasing the percentage of fully qualified teachers for fiscal years
2001 through 2004.
``SEC. 2214. DEFINITION OF FULLY QUALIFIED.
``(a) In General.--In this part, the term `fully qualified', used
with respect to a teacher, means a teacher who--
``(1)(A) has demonstrated the subject matter knowledge,
teaching knowledge, and teaching skill necessary to teach
effectively in the academic subject in which the teacher
teaches, according to the criteria described in subsections (b)
and (c); and
``(B) is not a teacher for whom State certification or
licensing requirements have been waived or who is teaching
under an emergency or other provisional credential; or
``(2) meets the standards set by the National Board for
Professional Teaching Standards.
``(b) Elementary School.--For purposes of making the demonstration
described in subsection (a)(1), each teacher who teaches elementary
school students (other than middle school students) shall, at a
minimum--
``(1) have State certification (which may include
certification obtained through an alternative route) or a State
license to teach; and
``(2) hold a bachelor's degree and demonstrate the subject
matter knowledge, teaching knowledge, and teaching skill
required to teach effectively in reading, writing, mathematics,
social studies, science, and other elements of a liberal arts
education.
``(c) Middle School and Secondary School.--For purposes of making
the demonstration described in subsection (a)(1), each teacher who
teaches middle school students or secondary school students shall, at a
minimum--
``(1) have State certification (which may include
certification obtained through an alternative route) or a State
license to teach; and
``(2) hold a bachelor's degree or higher degree and
demonstrate a high level of competence in all academic subjects
in which the teacher teaches through--
``(A) achievement of a high level of performance on
rigorous academic subject area tests;
``(B) completion of an academic major (or courses
totaling an equivalent number of credit hours) in each
of the academic subjects in which the teacher teaches;
or
``(C) in the case of teachers hired before the date
of enactment of the School Improvement Accountability
Act, completion of appropriate coursework for mastery
of the academic subjects in which the teacher
teaches.''; and
(3) by amending section 2215 (as so redesignated)--
(A) in subsection (a)(3), by adding after
``agency'' the following: ``for which at least 40
percent of the students served by the agency are
eligible for free or reduced price lunches under the
Richard B. Russell National School Lunch Act''; and
(B) by inserting after subsection (a)(4) the
following:
``(5) Reporting requirements.--Each institution of higher
education receiving assistance under paragraph (1) shall fully
comply with all reporting requirements of title II of the
Higher Education Act of 1965.''.
(c) Conforming Amendments.--The Act (20 U.S.C. 6301 et seq.) is
amended--
(1) in section 2203(2) (20 U.S.C. 6643(2)), by striking
``section 2211'' and inserting ``section 2215''; and
(2) in section 2205(c)(2) (20 U.S.C. 6645(c)(2)), by
striking ``section 2211'' and inserting ``section 2215''.
Subtitle C--Innovative Education
SEC. 131. REQUIREMENTS FOR STATE PLANS.
Part B of title VI (20 U.S.C. 7331 et seq.) is amended by adding at
the end the following:
``SEC. 6203. REQUIREMENTS FOR STATE PLANS.
``(a) State Plans.--In addition to requirements relating to State
applications under this part, the State educational agency for each
State desiring a grant under this title shall submit a State plan that
meets the requirements of this section to the Secretary at such time,
in such manner, and accompanied by such information as the Secretary
may require.
``(b) Consolidated Plan.--A State plan submitted under subsection
(a) may be submitted as part of a consolidated plan under section
14302, and as part of a State application described in section 6202.
``(c) Contents.--Each plan submitted under subsection (a) shall--
``(1) describe how the funds made available through the
grant will be used to increase student academic performance;
``(2) describe annual, quantifiable, and measurable
performance goals that will be used to measure the impact of
those funds on student performance;
``(3) describe the methods the State will use to measure
the annual impact of programs described in the plan and the
extent to which such goals are aligned with State standards;
``(4) certify that the State has in place the standards and
assessments required under section 1111;
``(5) certify that the State educational agency has a
system, as required under section 1111, for--
``(A) holding each local educational agency and
school accountable for adequate yearly progress (as
described in section 1111(b)(2));
``(B) identifying local educational agencies and
schools for improvement and corrective action (as
required in sections 1116 and 1117);
``(C) assisting local educational agencies and
schools that are identified for improvement with the
development of improvement plans; and
``(D) providing technical assistance, professional
development, and other capacity building as needed to
get such agencies and schools out of improvement
status;
``(6) certify that the State educational agency will use
the disaggregated results of student assessments required under
section 1111(b)(3), and other measures or indicators available,
to review annually the progress of each local educational
agency and school served under this title to determine whether
each such agency and school is making adequate yearly progress
as required under section 1111(b)(2);
``(7) certify that the State educational agency will take
action against a local educational agency that is identified
for corrective action and receiving funds under this title;
``(8) describe what, if any, State and other non-Federal
resources will be provided to local educational agencies and
schools served under this title to carry out activities
consistent with this title; and
``(9) certify that the State educational agency has a
system to hold local educational agencies accountable for
meeting the annual performance goals required under paragraph
(2).
``(d) Approval.--The Secretary, using a peer review process, shall
approve a State plan submitted under this section if the State plan
meets the requirements of this section.
``(e) Duration of the Plan.--Each State plan shall remain in effect
for the duration of the State's participation under this title.
``(f) Requirement.--A State shall not be eligible to receive funds
under this title unless the State has established the standards and
assessments required under section 1111.
``(g) Public Review.--Each State educational agency will make
publicly available the plan approved under subsection (d).
``SEC. 6204. SANCTIONS.
``(a) Third Fiscal Year.--If a State receiving grant funds under
this title fails to meet performance goals established under section
6203(c)(2) by the end of the third fiscal year for which the State
receives such grant funds, the Secretary shall reduce by 50 percent the
amount the State is entitled to receive for administrative expenses
under this title.
``(b) Fourth Fiscal Year.--If the State fails to meet such
performance goals by the end of the fourth fiscal year for which the
State receives grant funds under this title, the Secretary shall reduce
the total amount the State receives under this title by 20 percent.
``(c) Technical Assistance.--The Secretary shall provide technical
assistance, at the request of a State subjected to sanctions under
subsection (a) or (b).
``(d) Local Sanctions.--
``(1) In general.--Each State receiving assistance under
this title shall develop a system to hold local educational
agencies accountable for meeting the adequate yearly progress
requirements established under part A of title I and the
performance goals established under this title.
``(2) Sanctions.--A system developed under paragraph (1)
shall include a mechanism for sanctioning local educational
agencies for failure to meet such performance goals and
adequate yearly progress levels.
``SEC. 6205. STATE REPORTS.
``Each State educational agency or Chief Executive Officer of a
State receiving funds under this title shall annually publish and
disseminate to the public in a format and, to the extent practicable,
in a language that the public can understand, a report on--
``(1) the use of such funds;
``(2) the impact of programs conducted with such funds and
an assessment of such programs' effectiveness; and
``(3) the progress of the State toward attaining the
performance goals established under section 6203(c)(2), and the
extent to which the programs have increased student
achievement.
``SEC. 6206. STANDARDS; ASSESSMENTS ENHANCEMENT.
``Each State educational agency receiving a grant under this title
may use such grant funds, consistent with section 6201(a)(1)(C), to--
``(1) establish high quality, internationally competitive
content and student performance standards and strategies that
all students will be expected to meet;
``(2) provide for the establishment of high quality,
rigorous assessments that include multiple measures and
demonstrate comprehensive knowledge; or
``(3) develop and implement value-added assessments.''.
SEC. 132. PERFORMANCE OBJECTIVES.
Title VII (20 U.S.C. 7401 et seq.) is amended by inserting after
section 7105 the following:
``SEC. 7106. PERFORMANCE OBJECTIVES.
``(a) In General.--Each State educational agency or local
educational agency receiving a grant under this part shall develop
annual numerical performance objectives that are age-appropriate and
developmentally-appropriate with respect to helping limited English
proficient students become proficient in English and improve overall
academic performance based upon State and local content and performance
standards. The objectives shall include incremental percentage
increases for each fiscal year a State educational agency or local
educational agency receives a grant under this title, including
increases from the preceding fiscal year in the number of limited
English proficient students demonstrating an increase in performance on
annual assessments concerning reading, writing, speaking, and listening
comprehension.
``(b) Accountability.--Each State educational agency or local
educational agency receiving a grant under this title shall be held
accountable for meeting the annual numerical performance objectives
under this title and the adequate yearly progress levels for limited
English proficient students under clauses (ii) and (iv) of section
1111(b)(2)(B). Any State educational agency or local educational agency
that fails to meet the annual performance objectives shall be subject
to sanctions described in section 14515.
``(c) Parental Notification.--
``(1) In general.--Each State educational agency or local
educational agency shall notify a parent of a student who is
participating in a language instruction educational program
under this title, in a manner and form understandable to the
parent, including, if necessary and to the extent feasible, in
the native language of the parent, of--
``(A) the student's level of English proficiency,
how such level was assessed, the status of the
student's academic achievement, and the implications of
the student's educational strengths and needs for age-
appropriate and grade-appropriate academic attainment,
promotion, and graduation;
``(B) what programs are available to meet the
student's educational strengths and needs, and how such
programs differ in content and instructional goals from
other language instruction educational programs and, in
the case of a student with a disability, how such
available programs meet the objectives of the
individualized education program of such a student; and
``(C) the instructional goals of the language
instruction educational program, and how the program
will specifically help the limited English proficient
student learn English and meet State and local content
and performance standards, including--
``(i) the characteristics, benefits, and
past academic results of the language
instruction educational program and of
instructional alternatives; and
``(ii) the reasons the student was
identified as being in need of a language
instruction educational program.
``(2) Option to decline.--Each parent described in
paragraph (1) shall also be informed that the parent has the
option of declining the enrollment of a student in a language
instruction educational program, and shall be given an
opportunity to decline such enrollment if the parent so
chooses.
``(3) Special rule.--A student shall not be admitted to, or
excluded from, any federally assisted language instruction
educational program solely on the basis of a surname or
language-minority status.''.
SEC. 133. REPORT CARDS.
Title XIV (20 U.S.C. 8801 et seq.) is amended by adding at the end
the following:
``PART I--REPORT CARDS
``SEC. 14901. REPORT CARDS.
``(a) Grants Authorized.--The Secretary shall award a grant, from
allotments under subsection (b), to each State having a State report
card meeting the requirements described in subsection (e), to enable
the State, and local educational agencies and schools in the State,
annually to publish report cards for each elementary school and
secondary school that receives funding under this Act and is served by
the State.
``(b) Reservations and Allotments.--
``(1) Reservations.--From the amount appropriated under
subsection (j) to carry out this part for each fiscal year, the
Secretary shall reserve--
``(A) \1/2\ of 1 percent of such amount for
payments to the Secretary of the Interior for
activities approved by the Secretary of Education,
consistent with this part, in schools operated or
supported by the Bureau of Indian Affairs, on the basis
of their respective needs for assistance under this
part; and
``(B) \1/2\ of 1 percent of such amount for
payments to outlying areas, to be allotted in
accordance with their respective needs for assistance
under this part, as determined by the Secretary, for
activities approved by the Secretary, consistent with
this part.
``(2) State allotments.--From the amount appropriated under
subsection (j) for a fiscal year and remaining after the
Secretary makes reservations under paragraph (1), the Secretary shall
allot to each State having a State report card meeting the requirements
described in subsection (e) an amount that bears the same relationship
to the remainder as the number of public school students enrolled in
elementary schools and secondary schools in the State bears to the
number of such students so enrolled in all States.
``(c) State Reservation of Funds.--Each State educational agency
receiving a grant under subsection (a) may reserve--
``(1) not more than 10 percent of the grant funds to carry
out activities described in subsections (e) and (g)(2) for
fiscal year 2002; and
``(2) not more than 5 percent of the grant funds to carry
out activities described in subsections (e) and (g)(2) for
fiscal year 2003 and each of the 3 succeeding fiscal years.
``(d) Within-State Allocations.--Each State educational agency
receiving a grant under subsection (a) shall allocate the grant funds
that remain after making the reservation described in subsection (c) to
each local educational agency in the State in an amount that bears the
same relationship to the remainder as the number of public school
students enrolled in elementary schools and secondary schools served by
the local educational agency bears to the number of such students
served by local educational agencies within the State.
``(e) Annual State Report Card.--
``(1) Report cards required.--Not later than the beginning
of the 2002-2003 school year, a State that receives assistance
under this Act shall prepare and disseminate an annual report
card for parents, the general public, teachers, and the
Secretary, with respect to all elementary schools and secondary
schools within the State.
``(2) Required information.--Each State described in
paragraph (1), at a minimum, shall include in the annual State
report card information regarding--
``(A) student performance on statewide assessments
for the year for which the annual State report card is
prepared and the preceding year, in at least English
language arts and mathematics, including--
``(i) a comparison of the proportions of
students who performed at the basic,
proficient, and advanced levels in each subject
area, for each grade level for which
assessments are required under title I for the
year for which the report card is prepared,
with proportions in each of the same 3 levels
in each subject area at the same grade levels
in the preceding school year;
``(ii) a statement on the most recent 3-
year trend in the percentage of students
performing at the basic, proficient, and
advanced levels in each subject area, for each
grade level for which assessments are required
under title I; and
``(iii) a statement of the percentage of
students not tested and a listing of categories
of the reasons why such students were not
tested;
``(B) student retention rates in each grade, the
number of students completing advanced placement
courses, annual school dropout rates as calculated by
procedures conforming with the National Center for
Education Statistics Common Core of Data, and 4-year
graduation rates; and
``(C) the professional qualifications of teachers
in the aggregate, including the percentage of teachers
teaching with emergency or provisional credentials, the
percentage of class sections not taught by fully
qualified teachers, and the percentage of teachers who
are fully qualified.
``(3) Student data.--Student data in each report card shall
contain disaggregated results for the following categories:
``(A) Racial and ethnic groups.
``(B) Gender groups.
``(C) Economically disadvantaged students, as
compared with students who are not economically
disadvantaged.
``(D) Students with limited English proficiency, as
compared with students who are proficient in English.
``(E) Migrant status groups.
``(F) Students with disabilities, as compared with
students who are not disabled.
``(4) Optional information.--A State may include in the
State annual report card any other information the State
determines appropriate to reflect school quality and school
achievement, including by grade level information on the
following:
``(A) Average class size.
``(B) School safety, such as the incidence of
school violence and drug and alcohol abuse.
``(C) The incidence of student suspensions and
expulsions.
``(D) Student access to technology, including the
number of computers for educational purposes, the
number of computers per classroom, and the number of
computers connected to the Internet.
``(E) Parental involvement, as determined by such
measures as the extent of parental participation in
schools, parental involvement activities, and extended
learning time programs, such as after-school and summer
programs.
``(f) Local Educational Agency and School Report Cards.--
``(1) In general.--The State shall ensure that each local
educational agency, elementary school, and secondary school in
the State, collects appropriate data and publishes an annual
report card consistent with this subsection.
``(2) Required information.--Each local educational agency,
elementary school, and secondary school described in paragraph
(1), at a minimum, shall include in its annual report card--
``(A) the information described in paragraphs (2)
and (3) of subsection (e) for each local educational
agency and school;
``(B) in the case of a local educational agency--
``(i) information regarding the number and
percentage of schools served by the local
educational agency that are identified for
school improvement, including schools
identified under section 1116;
``(ii) information on the most recent 3-
year trend in the number and percentage of
elementary schools and secondary schools served
by the local educational agency that are
identified for school improvement; and
``(iii) information on how students in the
schools served by the local educational agency
performed on the statewide assessment compared
with students in the State as a whole;
``(C) in the case of an elementary school or a
secondary school--
``(i) information regarding whether the
school has been identified for school
improvement;
``(ii) information on how the school's
students performed on the statewide assessment
compared with students in schools served by the
same local educational agency and with all
students in the State; and
``(iii) information about the enrollment of
students compared with the rated capacity of
the schools; and
``(D) other appropriate information, regardless of
whether the information is included in the annual State
report.
``(g) Dissemination and Accessibility of Report Cards.--
``(1) Report card format.--Annual report cards under this
part shall be--
``(A) concise; and
``(B) presented in a format and manner that parents
can understand, including, to the extent practicable,
in a language the parents can understand.
``(2) State report cards.--State annual report cards under
subsection (e) shall be disseminated to all elementary schools,
secondary schools, and local educational agencies in the State,
and made broadly available to the public through means such as
posting on the Internet and distribution to the media, and
through public agencies.
``(3) Local report cards.--Local educational agency report
cards under subsection (f) shall be disseminated to all
elementary schools and secondary schools served by the local
educational agency and to parents of students attending such
schools, and made broadly available to the public through means
such as posting on the Internet and distribution to the media,
and through public agencies.
``(4) School report cards.--Elementary school and secondary
school report cards under subsection (f) shall be disseminated
to parents of students attending that school, and made broadly
available to the public through means such as posting on the
Internet and distribution to the media, and through public
agencies.
``(h) Coordination of State Plan Content.--A State shall include in
its plan under part A of title I or part B of title II, an assurance
that the State has in effect a policy that meets the requirements of
this section.
``(i) Privacy.--Information collected under this section shall be
collected and disseminated in a manner that protects the privacy of
individuals.
``(j) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this part $5,000,000 for fiscal year 2002 and
such sums as may be necessary for each of the 4 succeeding fiscal
years.
``PART J--ADDITIONAL PERFORMANCE AND ACCOUNTABILITY PROVISIONS
``SEC. 14911. REWARDING HIGH PERFORMANCE.
``(a) State Rewards.--
``(1) In general.--From amounts appropriated under
subsection (d), the Secretary shall make awards to States
that--
``(A) for 3 consecutive years have--
``(i) exceeded the State performance goals
and objectives established for any title under
this Act;
``(ii) exceeded the adequate yearly
progress levels established under section
1111(b)(2);
``(iii) significantly narrowed the gaps
between minority and nonminority students, and
between economically disadvantaged students and
students who are not economically
disadvantaged;
``(iv) raised all students to the
proficient standard level prior to 10 years
after the date of enactment of the School
Improvement Accountability Act; or
``(v) significantly increased the
percentage of core classes being taught by
fully qualified teachers, in schools receiving
funds under part A of title I; or
``(B) by not later than fiscal year 2005, ensure
that all teachers teaching in the State public
elementary schools and secondary schools are fully
qualified.
``(2) State use of funds.--
``(A) Demonstration sites.--Each State receiving an
award under paragraph (1) shall use a portion of the
award funds that are not distributed under subsection
(b) to establish demonstration sites with respect to
high-performing schools (based upon achievement, or
performance levels and adequate yearly progress) in
order to help low-performing schools.
``(B) Improvement of performance.--Each State
receiving an award under paragraph (1) shall use the
portion of the award funds that are not used pursuant
to subparagraph (A) or (C) and are not distributed
under subsection (b) for the purpose of improving the
level of performance of all elementary school and
secondary school students in the State, based upon
State content and performance standards.
``(C) Reservation for administrative expenses.--
Each State receiving an award under paragraph (1) may
set aside not more than \1/2\ of 1 percent of the award
funds for the planning and administrative costs of
carrying out this section, including the costs of
distributing awards to local educational agencies.
``(b) Local Educational Agency Awards.--
``(1) In general.--Each State receiving an award under
subsection (a)(1) shall distribute 80 percent of the award
funds to local educational agencies in the State that--
``(A) for 3 consecutive years have--
``(i) exceeded the State-established local
educational agency performance goals and
objectives established for any title under this
Act;
``(ii) exceeded the adequate yearly
progress levels established under section
1111(b)(2);
``(iii) significantly narrowed the gaps
between minority and nonminority students, and
between economically disadvantaged students and
students who are not economically
disadvantaged;
``(iv) raised all students enrolled in
schools served by the local educational agency
to the proficient standard level prior to 10
years from the date of enactment of the School
Improvement Accountability Act; or
``(v) significantly increased the
percentage of core classes being taught by
fully qualified teachers, in schools receiving
funds under part A of title I;
``(B) not later than December 31, 2005, ensure that
all teachers teaching in the elementary schools and
secondary schools served by the local educational
agency are fully qualified; or
``(C) have attained consistently high achievement
in another area that the State determines appropriate
to reward.
``(2) School-based performance awards.--A local educational
agency shall use funds made available under paragraph (1) for
activities described in subsection (c) such as school-based
performance awards.
``(3) Reservation for administrative expenses.--Each local
educational agency receiving an award under paragraph (1) may
set aside not more than \1/2\ of 1 percent of the award funds
for the planning and administrative costs of carrying out this
section, including the costs of distributing awards to eligible
elementary schools and secondary schools, teachers, and
principals.
``(c) School Rewards.--Each local educational agency receiving an
award under subsection (b) shall consult with teachers and principals
to develop a reward system, and shall use the award funds--
``(1) to reward individual schools that demonstrate high
performance with respect to--
``(A) increasing the academic achievement of all
students;
``(B) narrowing the academic achievement gap
described in section 1111(b)(2)(B)(iv);
``(C) improving teacher quality;
``(D) increasing high-quality professional
development for teachers, principals, and
administrators; or
``(E) improving the English proficiency of limited
English proficient students;
``(2) to reward collaborative teams of teachers, or teams
of teachers and principals, that--
``(A) significantly increase the annual performance
of low-performing students; or
``(B) significantly improve in a fiscal year the
English proficiency of limited English proficient
students;
``(3) to reward principals who successfully raise the
performance of a substantial number of low-performing students
to high academic levels;
``(4) to develop or implement school district-wide programs
or policies to increase the level of student performance on
State assessments that are aligned with State content
standards; and
``(5) to reward schools for consistently high achievement
in another area that the local educational agency determines
appropriate to reward.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $200,000,000 for fiscal year
2002, and such sums as may be necessary for each of the 4 succeeding
fiscal years.
``(e) Definition.--The term `low-performing student' means a
student who is below a basic State standard level.''.
SEC. 134. ADDITIONAL ACCOUNTABILITY PROVISIONS.
Part E of title XIV (20 U.S.C. 8891 et seq.) is amended by adding
at the end the following:
``SEC. 14515. ADDITIONAL ACCOUNTABILITY PROVISIONS.
``(a) In General.--Notwithstanding any other provision of this Act,
a recipient of funds provided for a fiscal year under part A of title
I, part A or C of title III, part A of title IV, part A of title V, or
title VII, shall include--
(1) in the plans or applications required under such part
or title--
(A) the methods the recipient will use to measure
the annual impact of each program funded in whole or in
part with funds provided under such part or title and,
if applicable, the extent to which each such program
will increase student academic achievement;
(B) the annual, quantifiable, and measurable
performance goals and objectives for each such program,
and the extent to which, if applicable, the program's performance goals
and objectives align with State content standards and State student
performance standards established under section 1111(b)(1)(A); and
(C) if the recipient is a local educational agency,
assurances that the local educational agency consulted,
at a minimum, with parents, school board members,
teachers, administrators, business partners, education
organizations, and community groups to develop the plan
or application submitted and that such consultation
will continue on a regular basis; and
``(2) in the reports required under such part or title, a
report for the preceding fiscal year regarding how the plan or
application submitted for such fiscal year under such part or
title was implemented, the recipient's progress toward
attaining the performance goals and objectives identified in
the plan or application for such year, and, if applicable, the
extent to which programs funded in whole or in part with funds
provided under such part or title increased student
achievement.
``(b) Penalties.--If a recipient of funds under a part or title
described in subsection (a) fails to meet the performance goals and
objectives of the part or title for 3 consecutive fiscal years, the
Secretary shall--
``(1) withhold not less than 50 percent of the funds made
available under the relevant program for administrative
expenses for the succeeding fiscal year, and for each
consecutive fiscal year until the recipient meets such
performance goals and objectives; and
``(2) in the case of--
``(A) a competitive grant (as determined by the
Secretary), consider the recipient ineligible for
grants under the part or title until the recipient
meets such performance goals and objectives; and
``(B) a formula grant (as determined by the
Secretary), withhold not less than 20 percent of the
total amount of funds provided under title VI for the
succeeding fiscal year and each consecutive fiscal year
until the recipient meets such goals and objectives.
``(c) Other Penalties.--A State that has not met the requirements
of subsection (a)(1)(B) with respect to a fiscal year--
``(1) shall not be eligible for designation as an Ed-Flex
Partnership State under the Education Flexibility Partnership
Act of 1999 until the State meets the requirements of
subsection (a)(1)(B); and
``(2) shall be subject to such other penalties as are
provided in this Act for failure to meet the requirements of
subsection (a)(1)(B).
``(d) Special Rule for Secretary Awards.--
``(1) In general.--Notwithstanding any other provision of
this Act, a recipient of funds provided under a direct award
made by the Secretary, or a contract or cooperative agreement
entered into with the Secretary, for a program shall include
the following information in any application or plan required
for such program:
``(A) How funds provided under the program will be
used and how such use will increase student academic
achievement.
``(B) The goals and objectives to be met, including
goals for dissemination and use of the information or
materials produced, where applicable.
``(C) If the grant requires dissemination of
information or materials, how the recipient will track
and report annually to the Secretary--
``(i) the successful dissemination of
information or materials produced;
``(ii) where information or materials
produced are being used; and
``(iii) the impact of such use and, if
applicable, the extent to which such use
increased student academic achievement or
contributed to the stated goal of the program.
``(2) Requirement.--If no application or plan is required
under a program described in paragraph (1), the Secretary shall
require the recipient of funds to submit a plan containing the
information required under paragraph (1).
``(3) Failure to achieve goals and objectives.--
``(A) In general.--The Secretary shall evaluate the
information submitted under this subsection to
determine whether the recipient has met the goals and
objectives described in paragraph (1)(B), where
applicable, assess the magnitude of dissemination
described in paragraph (1)(C), and, where applicable,
assess the effectiveness of the activity funded in
raising student academic achievement in places where
information or materials produced with such funds are
used.
``(B) Ineligibility.--The Secretary shall consider
the recipient ineligible for grants, contracts, or
cooperative agreements under the program described in
paragraph (1) if--
``(i) the goals and objectives described in
paragraph (1)(B) have not been met;
``(ii) where applicable, the dissemination
has not been of a magnitude to ensure goals and
objectives are being addressed; and
``(iii) where applicable, the information
or materials produced have not made a
significant impact on raising student
achievement in places where such information or
materials are used.''.
TITLE II--CLOSING THE ACHIEVEMENT GAP
Subtitle A--Reauthorization of Programs
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 1002(a) (20 U.S.C. 6302(a)) is amended by
striking ``appropriated $7,400,000,000 for fiscal year 1995'' and all
that follows through the period and inserting the following:
``appropriated--
``(1) $11,000,000,000 for fiscal year 2002;
``(2) $13,000,000,000 for fiscal year 2003;
``(3) $15,000,000,000 for fiscal year 2004;
``(4) $15,000,000,000 for fiscal year 2005; and
``(5) $15,000,000,000 for fiscal year 2006.''.
(b) Review of Allocations.--The Secretary of Education shall
annually review the manner in which funds are allocated under title I
of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301
et seq.) to ensure that local education agencies with the highest need
are receiving funds in proportion to that need as compared to other
local education agencies.
Subtitle B--Options: Opportunities to Improve our Nation's Schools
SEC. 211. OPTIONS: OPPORTUNITIES TO IMPROVE OUR NATION'S SCHOOLS.
Title V (20 U.S.C. 7201 et seq.) is amended by adding at the end
the following:
``PART D--OPTIONS: OPPORTUNITIES TO IMPROVE OUR NATION'S SCHOOLS
``SEC. 5401. PURPOSE.
``It is the purpose of this part to identify and support innovative
approaches to high-quality public school choice by providing financial
assistance for the demonstration, development, implementation, and
evaluation of, and the dissemination of information about, public
school choice programs that stimulate educational innovation for all
public schools and contribute to standards-based school reform efforts.
``SEC. 5402. GRANTS.
``(a) In General.--From funds appropriated under section 5405(a)
and not reserved under section 5405(b), the Secretary is authorized to
make grants to State and local educational agencies to support programs
that promote innovative approaches to high-quality public school
choice.
``(b) Duration.--A grant under this part shall not be awarded for a
period that exceeds 3 years.
``SEC. 5403. USES OF FUNDS.
``(a) Uses of Funds.--
``(1) In general.--Funds under this part may be used to
demonstrate, develop, implement, and evaluate, and to
disseminate information about, innovative approaches to broaden
public elementary school and secondary 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 such public
schools.
``(2) Examples.--The approaches described in paragraph (1)
at the school, school district, and State levels may include--
``(A) inter school district approaches to public
school choice, including approaches that increase equal
access to high-quality educational programs and
diversity in schools;
``(B) public elementary and secondary programs that
involve partnerships with institutions of higher
education and that are located on the campuses of the
institutions;
``(C) programs that allow students in public
secondary schools to enroll in postsecondary courses
and to receive both secondary and postsecondary
academic credit;
``(D) worksite satellite schools, in which State or
local educational agencies form partnerships with
public or private employers, to create public schools
at parents' places of employment; and
``(E) approaches to school desegregation that
provide students and parents choice through strategies
other than magnet schools.
``(b) Limitations.--Funds under this part--
``(1) shall supplement, and not supplant, non-Federal funds
expended for existing programs;
``(2) may be used for providing transportation services or
costs, except that not more than 10 percent of the funds
received under this part may be used by the local educational
agency to provide such services or costs;
``(3) may be used for improving low performing schools that
lose students as a result of school choice plans, except that
not more than 10 percent of the funds under this part may be
used by the local educational agency for the improvement of low
performing schools; and
``(4) shall not be used to fund programs that are
authorized under part C, D, or E.
``SEC. 5404. GRANT APPLICATION; PRIORITIES.
``(a) Application Required.--A State or local educational agency
desiring to receive a grant under this part shall submit an application
to the Secretary in such form and containing such information as the
Secretary may require.
``(b) Application Contents.--Each application shall include--
``(1) a description of the program for which funds are
sought and the goals for such program;
``(2) a description of how the program funded under this
part will be coordinated with, and will complement and enhance,
programs under other related Federal and non-Federal programs;
``(3) if the program includes partners, the name of each
partner and a description of the partner's responsibilities;
and
``(4) a description of the policies and procedures the
agency will use to ensure--
``(A) that priority is provided to parents of
students attending schools identified for school
improvement under section 1116 in exercising choice
among schools;
``(B) that priority is provided to parents of
students who want to stay enrolled at a school;
``(C) the agency's accountability for results,
including the agency's goals and performance
indicators;
``(D) that the program is open and accessible to,
and will promote high academic standards for, all
students regardless of the achievement level or
disability of the students and the family income of the
families of the students;
``(E) that all parents are provided with easily
comprehensible information about various school
options, including information on instructional
approaches at different schools, resources, and
transportation that will be provided at or for the
schools on an annual basis;
``(F) that all parents are given timely notice
about opportunities to choose which school their child
will attend the following year and the period during
which the choice may be made;
``(G) that limitations on transfers between schools
only occur because of facilities constraints, statutory
class size limits, and local efforts to ensure that
schools reflect the diversity of the communities in
which the schools are located;
``(H) that a lottery or other random system be
established for parents of students wishing to attend a
school that cannot receive all students wishing to
attend; and
``(I) that the program is carried out in a manner
consistent with Federal law, including court orders,
such as desegregation orders, issued to enforce Federal
law.
``(c) Priorities.--
``(1) In general.--The Secretary shall give a priority to
applications for programs that will serve high-poverty local
educational agencies.
``(2) Permissive.--The Secretary may give a priority to
applications demonstrating that the State or local educational
agency will carry out the agency's program in partnership with
one or more public or private agencies, organizations, or
institutions, including institutions of higher education and
public or private employers.
``SEC. 5405. AUTHORIZATION OF APPROPRIATIONS; RESERVATION; EVALUATIONS.
``(a) Authorization of Appropriations.--For the purpose of carrying
out this part, there are authorized to be appropriated $100,000,000 for
each of fiscal years 2002 through 2006.
``(b) Reservation for Evaluation, Technical Assistance, and
Dissemination.--From the amount appropriated under subsection (a) for
any fiscal year, the Secretary may reserve not more than 5 percent to
carry out evaluations under subsection (c), to provide technical
assistance, and to disseminate information.
``(c) Evaluations.--The Secretary may use funds reserved under
subsection (b) to carry out one or more evaluations of programs
assisted under this part, which, at a minimum, shall 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.''.
Subtitle C--Parental Involvement
SEC. 221. STATE PLANS.
Section 1111 (20 U.S.C. 6311) is amended--
(1) by redesignating subsections (d) through (g) as
subsections (e) through (h), respectively; and
(2) by inserting after subsection (c) the following:
``(d) Parental Involvement.--Each State plan shall demonstrate that
the State will support, in collaboration with the regional educational
laboratories, the collection and dissemination to local educational
agencies and schools of effective parental involvement practices. Such
practices shall--
``(1) be based on the most current research on effective
parental involvement that fosters achievement to high standards
for all children; and
``(2) be geared toward lowering barriers to greater
participation in school planning, review, and improvement
experienced by parents.''.
SEC. 222. PARENTAL ASSISTANCE.
Part D of title I (20 U.S.C. 6421 et seq.) is amended to read as
follows:
``PART D--PARENTAL ASSISTANCE AND CHILD OPPORTUNITY
``Subpart I--Parental Assistance''.
``SEC. 1401. PARENTAL INFORMATION AND RESOURCE CENTERS.
``(a) Purpose.--The purpose of this part is--
``(1) to provide leadership, technical assistance, and
financial support to nonprofit organizations and local
educational agencies to help the organizations and agencies
implement successful and effective parental involvement
policies, programs, and activities that lead to improvements in
student performance;
``(2) to strengthen partnerships among parents (including
parents of preschool age children), teachers, principals,
administrators, and other school personnel in meeting the
educational needs of children;
``(3) to develop and strengthen the relationship between
parents and the school;
``(4) to further the developmental progress primarily of
children assisted under this part; and
``(5) to coordinate activities funded under this part with
parental involvement initiatives funded under section 1118 and
other provisions of this Act.
``(b) Grants Authorized.--
``(1) In general.--The Secretary is authorized to award
grants in each fiscal year to nonprofit organizations, and
nonprofit organizations in consortia with local educational
agencies, to establish school-linked or school-based parental
information and resource centers that provide training,
information, and support to--
``(A) parents of children enrolled in elementary
schools and secondary schools;
``(B) individuals who work with the parents
described in subparagraph (A); and
``(C) State educational agencies, local educational
agencies, schools, organizations that support family-
school partnerships (such as parent-teacher
associations), and other organizations that carry out
parent education and family involvement programs.
``(2) Award rule.--In awarding grants under this part, the
Secretary shall ensure that such grants are distributed in all
geographic regions of the United States.
``SEC. 1402. APPLICATIONS.
``(a) Grants Applications.--
``(1) In general.--Each nonprofit organization or nonprofit
organization in consortium with a local educational agency that
desires a grant under this part shall submit an application to
the Secretary at such time and in such manner as the Secretary
shall require.
``(2) Contents.--Each application submitted under paragraph
(1), at a minimum, shall include assurances that the
organization or consortium will--
``(A)(i) be governed by a board of directors the
membership of which includes parents; or
``(ii) be an organization or consortium that
represents the interests of parents;
``(B) establish a special advisory committee the
membership of which includes--
``(i) parents described in section
1401(b)(1)(A);
``(ii) representatives of education
professionals with expertise in improving
services for disadvantaged children; and
``(iii) representatives of local elementary
schools and secondary schools who may include
students and representatives from local youth
organizations;
``(C) use at least \1/2\ of the funds provided
under this part in each fiscal year to serve areas with
high concentrations of low-income families in order to
serve parents who are severely educationally or
economically disadvantaged;
``(D) operate a center of sufficient size, scope,
and quality to ensure that the center is adequate to
serve the parents in the area;
``(E) serve both urban and rural areas;
``(F) design a center that meets the unique
training, information, and support needs of parents
described in section 1401(b)(1)(A), particularly such
parents who are educationally or economically
disadvantaged;
``(G) demonstrate the capacity and expertise to
conduct the effective training, information and support
activities for which assistance is sought;
``(H) network with--
``(i) local educational agencies and
schools;
``(ii) parents of children enrolled in
elementary schools and secondary schools;
``(iii) parent training and information
centers assisted under section 682 of the
Individuals with Disabilities Education Act;
``(iv) clearinghouses; and
``(v) other organizations and agencies;
``(I) focus on serving parents described in section
1401(b)(1)(A) who are parents of low-income, minority,
and limited English proficient, children;
``(J) use part of the funds received under this
part to establish, expand, or operate Parents as
Teachers programs or Home Instruction for Preschool
Youngsters programs;
``(K) provide assistance to parents in such areas
as understanding State and local standards and measures
of student and school performance; and
``(L) work with State and local educational
agencies to determine parental needs and delivery of
services.
``(b) Grant Renewal.--For each fiscal year after the first fiscal
year an organization or consortium receives assistance under this part,
the organization or consortium shall demonstrate in the application
submitted for such fiscal year after the first fiscal year that a
portion of the services provided by the organization or consortium is
supported through non-Federal contributions, which contributions may be
in cash or in kind.
``SEC. 1403. USES OF FUNDS.
``(a) In General.--Grant funds received under this part shall be
used--
``(1) to assist parents in participating effectively in
their children's education and to help their children meet
State and local standards, such as assisting parents--
``(A) to engage in activities that will improve
student performance, including understanding the
accountability systems in place within their State
educational agency and local educational agency and
understanding their children's educational performance
in comparison to State and local standards;
``(B) to provide followup support for their
children's educational achievement;
``(C) to communicate effectively with teachers,
principals, counselors, administrators, and other
school personnel;
``(D) to become active participants in the
development, implementation, and review of school-
parent compacts, parent involvement policies, and
school planning and improvement;
``(E) to participate in the design and provision of
assistance to students who are not making adequate
educational progress;
``(F) to participate in State and local
decisionmaking; and
``(G) to train other parents;
``(2) to obtain information about the range of options,
programs, services, and resources available at the national,
State, and local levels to assist parents and school personnel
who work with parents;
``(3) to help the parents learn and use the technology
applied in their children's education;
``(4) to plan, implement, and fund activities for parents
that coordinate the education of their children with other
Federal programs that serve their children or their families;
and
``(5) to provide support for State or local educational
personnel if the participation of such personnel will further
the activities assisted under the grant.
``(b) Permissive Activities.--Grant funds received under this part
may be used to assist schools with activities such as--
``(1) developing and implementing their plans or activities
under sections 1118 and 1119; and
``(2) developing and implementing school improvement plans,
including addressing problems that develop in the
implementation of sections 1118 and 1119.
``(3) providing information about assessment and individual
results to parents in a manner and a language the family can
understand;
``(4) coordinating the efforts of Federal, State, and local
parent education and family involvement initiatives; and
``(5) providing training, information, and support to--
``(A) State educational agencies;
``(B) local educational agencies and schools,
especially those local educational agencies and schools
that are low performing; and
``(C) organizations that support family-school
partnerships.
``(c) Grandfather Clause.--The Secretary shall use funds made
available under this part to continue to make grant or contract
payments to each entity that was awarded a multiyear grant or contract
under title IV of the Goals 2000: Educate America Act (as such title
was in effect on the day before the date of enactment of the
Educational Excellence for All Learners Act of 2001) for the duration
of the grant or contract award.
``SEC. 1403A. LOCAL FAMILY INFORMATION CENTERS.
``(a) Centers Authorized.--The Secretary shall award grants to, and
enter into contracts and cooperative agreements with, local nonprofit
parent organizations to enable the organizations to support local
family information centers that help ensure that parents of students in
schools assisted under part A have the training, information, and
support the parents need to enable the parents to participate
effectively in helping their children to meet challenging State
standards.
``(b) Definition of Local Nonprofit Parent Organization.--In this
section, the term `local nonprofit parent organization' means a private
nonprofit organization (other than an institution of higher education)
that--
``(1) has a demonstrated record of working with low-income
individuals and parents;
``(2)(A) has a board of directors the majority of whom are
parents of students in schools that are assisted under part A
and located in the geographic area to be served by the center;
or
``(B) has a special governing committee to direct and
implement the center, a majority of the members of whom are
parents of students in schools assisted under part A; and
``(3) is located in a community with schools that receive
funds under part A, and is accessible to the families of
students in those schools.
``(c) Required Center Activities.--Each center assisted under this
section shall be exempt from the uses of funds requirements under
section 1403 and shall instead--
``(1) provide training, information, and support that meets
the needs of parents of children in schools assisted under part
A who are served through the grant, contract, or cooperative
agreement, particularly underserved parents, low-income
parents, parents of students with limited English proficiency,
parents of students with disabilities, and parents of students
in schools identified for school improvement or corrective
action under section 1116(c);
``(2) help families of students enrolled in a school
assisted under part A to understand and participate in all of
the provisions of this Act designed to improve the achievement
of students in the school;
``(3) provide information in a language and form that
parents understand, including taking steps to ensure that
underserved parents, low-income parents, parents with limited
English proficiency, parents of students with disabilities, or
parents of students in schools identified for school
improvement or corrective action, are effectively informed and
assisted;
``(4) assist parents to--
``(A) understand what their child's school is doing
to enable students at the school to meet the State and
local standards, including understanding the curriculum
and instructional methods the school is using to help
the students meet the standards;
``(B) better understand their child's educational
needs, where their child stands with respect to State
standards, how the school is addressing the child's
education needs, and how they can work with their child
to increase the child's academic achievement;
``(C) participate in the decisionmaking processes
at the school, school district, and State levels;
``(D) understand and benefit from the provisions of
other Federal education programs; and
``(E) understand public school choice options
available in the local community, including magnet
schools, charter schools, and alternative schools;
``(5) be designed to meet the specific needs of families
who experience significant isolation from available sources of
information and support; and
``(6) report annually to the Secretary regarding measures,
determined by the Secretary, that indicate the program's
effectiveness in reaching underserved parents and developing
meaningful parent involvement in schools assisted under part A.
``(c) Application Requirements.--Each local nonprofit parent
organization desiring assistance under this section shall submit to the
Secretary an application (in place of the application required under
section 1402) at such time, in such manner, and accompanied by such
information as the Secretary may require. Each such application shall--
``(1) describe how the organization will use the assistance
to help families under this section;
``(2) describe what steps the organization has taken to
meet with school district or school personnel in the geographic
area to be served by the center in order to inform the
personnel of the plan and application for the assistance; and
``(3) identify with specificity the special efforts that
the organization will take--
``(A) to ensure that the needs for training,
information, and support for parents of students in
schools assisted under part A, particularly underserved
parents, low-income parents, parents with limited
English proficiency, parents of students with
disabilities, and parents of students in schools
identified for school improvement or corrective action,
are effectively met; and
``(B) to work with community-based organizations.
``(d) Distribution of Funds.--
``(1) Allocation of funds.--The Secretary shall make at
least 2 awards of assistance under this section to a local
nonprofit parent organization in each State, unless the
Secretary does not receive at least 2 applications from such
organizations in a State of sufficient quality to warrant
providing the assistance in the State.
``(2) Selection requirement for local family information
centers.--
``(A) In general.--The Secretary shall select local
nonprofit parent organizations in a State to receive
assistance under this section in a manner that ensures
the provision of the most effective assistance to low-
income parents of students in schools assisted under
part A.
``(B) Priority.--The Secretary shall give priority
to--
``(i) non-profit parent organizations that
are located in rural and urban areas in the
State where the percentage of students from
families at or below the poverty line is
greater than the median, as determined by the
State; and
``(ii) areas with high school dropout
rates, high percentages of limited English
proficient students, or schools identified for
school improvement or corrective action under
section 1116(c).
``SEC. 1404. TECHNICAL ASSISTANCE.
``The Secretary shall provide technical assistance, by grant or
contract, for the establishment, development, and coordination of
parent training, information, and support programs and parental
information and resource centers.
``SEC. 1405. REPORTS.
``(a) Information.--Each organization or consortium receiving
assistance under this part shall submit to the Secretary, on an annual
basis, information concerning the parental information and resource
centers assisted under this part, including--
``(1) the number of parents (including the number of
minority and limited English proficient parents) who receive
information and training;
``(2) the types and modes of training, information, and
support provided under this part;
``(3) the strategies used to reach and serve parents of
minority and limited English proficient children, parents with
limited literacy skills, and other parents in need of the
services provided under this part;
``(4) the parental involvement policies and practices used
by the center and an evaluation of whether such policies and
practices are effective in improving home-school communication,
student achievement, student and school performance, and
parental involvement in school planning, review, and
improvement; and
``(5) the effectiveness of the activities that local
educational agencies and schools are carrying out with regard
to parental involvement and other activities assisted under
this Act that lead to improved student achievement and improved
student and school performance.
``(b) Dissemination.--The Secretary annually shall disseminate,
widely to the public and to Congress, the information that each
organization or consortium submits under subsection (a) to the
Secretary.
``SEC. 1406. GENERAL PROVISIONS.
``Notwithstanding any other provision of this part--
``(1) no person, including a parent who educates a child at
home, a public school parent, or a private school parent, shall
be required to participate in any program of parent education
or developmental screening pursuant to the provisions of this
part; and
``(2) no program or center assisted under this part shall
take any action that infringes in any manner on the right of a
parent to direct the education of their children.''.
TITLE III--NATIONAL PRIORITIES WITH PROVEN EFFECTIVENESS
Subtitle A--Qualified Teacher in Every Classroom
SEC. 301. TEACHER QUALITY.
(a) In General.--Title II (20 U.S.C. 6601 et seq.) is amended by
striking the title heading and all that follows through the end of part
A and inserting the following:
``TITLE II--QUALIFIED TEACHER IN EVERY CLASSROOM
``PART A--TEACHER QUALITY
``SEC. 2001. PURPOSES.
``The purposes of this part are the following:
``(1) To improve student achievement in order to help every
student meet State content and student performance standards.
``(2) To--
``(A) enable States, local educational agencies,
and schools to improve the quality and success of the
teaching force by providing all teachers, including
beginning and veteran teachers, with the support those teachers need to
succeed and stay in teaching, by providing professional development and
mentoring programs for teachers, by offering incentives for additional
qualified individuals to go into teaching, by reducing out-of-field
placement of teachers, and by reducing the number of teachers with
emergency credentials; and
``(B) hold the States, agencies, and schools
accountable for such improvements.
``(3) To support State and local efforts to recruit
qualified teachers to address teacher shortages, particularly
in communities with the greatest need.
``(4) To ensure that underqualified and inexperienced
teachers do not teach higher percentages of low-income students
and minority students than other students.
``SEC. 2002. DEFINITIONS.
``In this part:
``(1) Beginning teacher.--The term `beginning teacher'
means a fully qualified teacher who has taught for 3 years or
less.
``(2) Core academic subjects.--The term `core academic
subjects' means--
``(A) mathematics;
``(B) science;
``(C) reading (or language arts) and English;
``(D) social studies (consisting of history,
civics, government, geography, and economics);
``(E) foreign languages; and
``(F) fine arts (consisting of music, dance, drama,
and the visual arts).
``(3) Covered recruitment.--The term `covered recruitment'
means activities described in section 2017(c).
``(4) Fully qualified.--
``(A) In general.--The term `fully qualified', used
with respect to a teacher, means a teacher who--
``(i)(I) is certified or licensed and has
demonstrated the academic subject knowledge,
teaching knowledge, and teaching skills
necessary to teach effectively in the academic
subject in which the teacher teaches, according
to the standards described in subparagraph (B)
or (C), as appropriate; and
``(II) shall not be a teacher for whom
State certification or licensing requirements
have been waived or who is teaching under an
emergency; or
``(ii) meets the standards of the National
Board for Professional Teaching Standards.
``(B) Elementary school instructional staff.--For
purposes of complying with subparagraph (A)(i), each
elementary school teacher (other than a middle school
teacher) in the State shall, at a minimum--
``(i) have State certification or a State
license to teach (which may include
certification or licensing obtained through
alternative routes); and
``(ii) hold a bachelor's degree and
demonstrate the academic subject knowledge,
teaching knowledge, and teaching skills
required to teach effectively in reading,
writing, mathematics, social studies, science,
and other academic subjects.
``(C) Middle school and secondary school
instructional staff.--For purposes of complying with
subparagraph (A)(i), each middle school or secondary
school teacher in the State shall, at a minimum--
``(i) have State certification or a State
license to teach (which may include
certification or licensing obtained through
alternative routes); and
``(ii) hold a bachelor's degree or higher
degree and demonstrate a high level of
competence in all academic subjects in which
the teacher teaches through--
``(I) achievement of a high level
of performance on rigorous academic
subject tests;
``(II) completion of an academic
major (or courses totaling an
equivalent number of credit hours) in
each of the academic subjects in which
the teacher teaches; or
``(III) for a teacher hired prior
to the date of enactment of the
Educational Opportunities Act,
completion of appropriate coursework
for mastery of such academic subjects.
``(5) High-poverty.--The term `high-poverty', used with
respect to a school, means a school that serves a high number
or percentage of children from families with incomes below the
poverty line, as determined by the State in which the school is
located.
``(6) High-poverty local educational agency.--The term
`high-poverty local educational agency' means a local
educational agency for which the number of children served by
the agency who are age 5 through 17, and from families with
incomes below the poverty line--
``(A) is not less than 20 percent of the number of
all children served by the agency; or
``(B) is more than 10,000.
``(7) Institution of higher education.--The term
`institution of higher education'--
``(A) has the meaning given the term in section
101(a) of the Higher Education Act of 1965; and
``(B) if such an institution prepares teachers and
receives Federal funds, means such an institution
that--
``(i) is in full compliance with the
requirements of section 207 of the Higher
Education Act of 1965; and
``(ii) does not have a teacher preparation
program identified by a State as low-
performing.
``(8) Low-performing school.--The term `low-performing
school' means--
``(A) a school identified by a local educational
agency for school improvement under section 1116(c); or
``(B) a school in which the great majority of
students, as determined by the State in which the
school is located, fail to meet State student
performance standards based on assessments the local
educational agency is using under part A of title I.
``(9) Mentoring.--The term `mentoring' means activities
that--
``(A) consist of structured guidance and regular
and ongoing support for beginning teachers, that--
``(i) is designed to help the teachers
continue to improve their practice of teaching
and to develop their instructional skills; and
``(ii)(I) as part of a multiyear,
developmental induction process;
``(II) involves the assistance of a mentor
teacher and other appropriate individuals from
a school, local educational agency, or
institution of higher education; and
``(III) may include coaching, classroom
observation, team teaching, and reduced
teaching loads; and
``(B) may include the establishment of a
partnership by a local educational agency with an
institution of higher education, another local
educational agency, teacher organization, or another
organization, for the purpose of carrying out the
activities described in subparagraph (A).
``(10) Mentor teacher.--The term `mentor teacher' means a
fully qualified teacher who--
``(A) is a highly competent classroom teacher who
is formally selected and trained to work effectively
with beginning teachers (including corps members
described in section 2018);
``(B) is full-time, and is assigned and qualified
to teach in the content area or grade level in which a
beginning teacher (including a corps member described
in section 2018), to whom the teacher provides
mentoring, intends to teach;
``(C) has been consistently effective in helping
diverse groups of students make substantial achievement
gains; and
``(D) has been selected to provide mentoring
through a peer review process that uses, as the primary
selection criterion for the process, the teacher's
ability to help students achieve academic gains.
``(11) 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.
``(12) Professional development.--The term `professional
development' means activities that are--
``(A)(i) an integral part of broad schoolwide and
districtwide educational improvement plans and enhance
the ability of teachers and other staff to help all
students, including females, students with
disabilities, students with limited English
proficiency, and students who have economic and
educational disadvantages, meet high State and local
content and student performance standards;
``(ii) sustained, intensive, school-embedded, tied
to State standards, and of high quality and sufficient
duration to have a positive and lasting impact on
classroom instruction (not one-time workshops); and
``(iii) based on the best available research on
teaching and learning; and
``(B) described in subparagraphs (A) through (F) of
section 2017(a)(1).
``(13) Recruitment activities.--The term `recruitment
activities' means activities carried out through a teacher
corps program as described in section 2018 to attract highly
qualified individuals, including individuals taking
nontraditional routes to teaching, to enter teaching and
support the individuals during necessary certification and
licensure activities.
``(14) Recruitment partnership.--The term `recruitment
partnership' means a partnership described in section
2015(b)(2).
``SEC. 2003. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part--
``(1) $2,000,000,000 for fiscal year 2001, of which--
``(A) $1,730,000,000 shall be made available to
carry out subpart 1; and
``(B) $270,000,000 shall be made available to carry
out subpart 2, of which--
``(i) $120,000,000 shall be made available
to carry out chapter 1 of subpart 2;
``(ii) $25,000,000 shall be made available
to carry out chapter 2 of subpart 2;
``(iii) $75,000,000 shall be made available
to carry out chapter 3 of subpart 2; and
``(iv) $50,000,000 shall be made available
to carry out chapter 4 of subpart 2; and
``(2) such sums as may be necessary for each of fiscal
years 2002 through 2005.
``Subpart 1--Grants to States and Local Educational Agencies
``Chapter 1--Grants and Activities
``SEC. 2011. ALLOTMENTS TO STATES.
``(a) In General.--The Secretary is authorized to make grants to
eligible State educational agencies for the improvement of teaching and
learning through sustained and intensive high-quality professional
development, mentoring, and recruitment activities (and covered
recruitment, at the election of a local educational agency) at the
State and local levels. Each grant shall consist of the allotment
determined for the State under subsection (b).
``(b) Determination of Amount of Allotment.--
``(1) Reservation of funds.--
``(A) In general.--From the total amount made
available to carry out this subpart under section
2003(1) for any fiscal year, the Secretary shall
reserve--
``(i) \1/2\ of 1 percent for allotments for
the outlying areas to be distributed among
those outlying areas on the basis of their
relative need, as determined by the Secretary,
for professional development and mentoring and
recruitment activities carried out in
accordance with the purposes of this part; and
``(ii) \1/2\ of 1 percent for the Secretary
of the Interior for programs carried out in
accordance with the purposes of this part to
provide professional development and mentoring
and recruitment activities for teachers and
other staff in schools operated or funded by
the Bureau of Indian Affairs.
``(B) Limitation.--Notwithstanding subparagraph
(A), the Secretary shall not reserve, for either the
outlying areas under subparagraph (A)(i) or the schools
operated or funded by the Bureau of Indian Affairs
under subparagraph (A)(ii), more than the amount
reserved for those areas or schools for fiscal year
2000 under the authority described in paragraph
(2)(A)(i).
``(2) State allotments.--
``(A) Hold harmless.--
``(i) In general.--Subject to subparagraph
(B), from the total amount made available to
carry out this subpart for any fiscal year and
not reserved under paragraph (1), the Secretary
shall allot to each of the 50 States, the
District of Columbia, and the Commonwealth of
Puerto Rico an amount equal to the amount that
the State received for fiscal year 2000 under
section 2202(b) of this Act (as in effect on
the day before the date of enactment of the
Educational Opportunities Act).
``(ii) Ratable reduction.--If the total
amount made available to carry out this subpart
for any fiscal year and not reserved under
paragraph (1) is insufficient to pay the full
amounts that all States are eligible to receive
under clause (i) for any fiscal year, the
Secretary shall ratably reduce such amounts for
such fiscal year.
``(B) Allotment of additional funds.--
``(i) In general.--Subject to clause (ii),
for any fiscal year for which the total amount
made available to carry out this subpart and
not reserved under paragraph (1) exceeds the
total amount made available to the 50 States,
the District of Columbia, and the Commonwealth
of Puerto Rico for fiscal year 2000 under the
authority described in subparagraph (A)(i), the
Secretary shall allot to each of those States
the sum of--
``(I) an amount that bears the same
relationship to 40 percent of the
excess amount as the number of
individuals age 5 through 17 in the
State, as determined by the Secretary
on the basis of the most recent
satisfactory data, bears to the number
of those individuals in all such
States, as so determined; and
``(II) an amount that bears the
same relationship to 60 percent of the
excess amount as the number of
individuals age 5 through 17 from
families with incomes below the poverty
line in the State, as determined by the
Secretary on the basis of the most
recent satisfactory data, bears to the
number of those individuals in all such
States, as so determined.
``(ii) Exception.--No State receiving an
allotment under clause (i) may receive less
than \1/2\ of 1 percent of the total excess
amount allotted under clause (i) for a fiscal
year.
``(3) Reallotment.--If any State described in paragraph (2)
does not apply for an allotment under paragraph (2) for any
fiscal year, the Secretary shall reallot such amount to the
remaining such States in accordance with paragraph (2).
``SEC. 2012. STATE APPLICATIONS.
``(a) Applications Required.--
``(1) In general.--Each State desiring to receive a grant
under this subpart shall submit an application to the Secretary
at such time, in such manner, and containing such information
as the Secretary may reasonably require.
``(2) Development.--The State educational agency shall
develop the State application--
``(A) in consultation with the State agency for
higher education, community-based and other nonprofit
organizations, and institutions of higher education;
and
``(B) with the extensive participation of teachers,
teacher educators, school administrators, and content
specialists.
``(b) Contents.--Each such application shall include--
``(1) a description of the State's shortages of fully
qualified teachers relating to high-poverty school districts
and high-need academic subjects (as such districts or subjects
are determined by the State);
``(2) an assessment of the need for professional
development for veteran teachers in the State and the need for
strong mentoring programs for beginning teachers that is--
``(A) developed with the involvement of teachers;
and
``(B) based on student achievement data in the core
academic subjects and other indicators of the need for
professional development and mentoring programs;
``(3) a description of how the State educational agency
will use funds made available under this part to improve the
quality of the State's teaching force, eliminate the use of
out-of-field placement of teachers, and eliminate the use of
teachers hired with emergency or other provisional credentials
by setting numerical, annual improvement goals, and meet the
requirements of this section;
``(4) a description of how the State educational agency
will align activities assisted under this subpart with State
content and student performance standards, and State
assessments by setting numerical, annual improvement goals;
``(5) a description of how the State educational agency
will coordinate activities funded under this subpart with
professional development and mentoring and recruitment
activities that are supported with funds from other relevant
Federal and non-Federal programs;
``(6) a plan, developed with the extensive participation of
teachers, for addressing long-term teacher recruitment,
retention, and professional development and mentoring needs,
which may include--
``(A) providing technical assistance to help school
districts reform hiring and employment practices to
improve the recruitment and retention of fully
qualified teachers, especially with respect to high-
poverty schools; or
``(B) establishing State or regional partnerships
to address teacher shortages;
``(7) a description of how the State educational agency
will assist local educational agencies in implementing
effective and sustained professional development and mentoring
activities and high-quality recruitment activities under this
part;
``(8) an assurance that the State will consistently monitor
the progress of each local educational agency and school in the
State in achieving the goals specified in the information
submitted under paragraphs (1) through (7);
``(9) a description of how the State educational agency
will work with recipients of grants awarded for recruitment
activities under section 2015(b) to ensure that recruits who
successfully complete a teacher corps program will be certified
or licensed; and
``(10) the assurances and description referred to in
section 2021.
``(c) Approval.--The Secretary shall, using a peer-review process,
approve a State application if the application meets the requirements
of this section and holds reasonable promise of achieving the purposes
of this part.
``SEC. 2013. STATE USE OF FUNDS.
``(a) In General.--Of the funds allotted to a State under section
2011 for a fiscal year--
``(1) not more than 6 percent shall be used by the State
educational agency to carry out State activities described in
section 2014, or for the administration of this subpart (other
than the administration of section 2019 but including the
administration of State activities under chapter 2), except
that not more than 3 percent of the allotted funds may be used
for the administration of this subpart;
``(2) 60 percent shall be used by the State educational
agency to provide grants to local educational agencies under
section 2015(a) for professional development and mentoring
(except as provided in section 2017(c));
``(3) 30 percent shall be used by the State educational
agency--
``(A) except as provided in subparagraph (B), to
provide grants to recruitment partnerships under
section 2015(b) for recruitment activities; or
``(B) if the State educational agency determines
that all elementary school and secondary school
teachers in the State that are teaching core academic
subjects are fully qualified, to provide the grants
described in paragraph (2); and
``(4) 4 percent (or 4 percent of the amount the State would
have been allotted if the appropriation for this subpart were
$1,730,000,000, whichever is greater) shall be used by the
State agency for higher education to provide grants to
partnerships under section 2019.
``(b) Priority for Professional Development and Mentoring in
Mathematics and Science.--
``(1) Priority.--
``(A) Appropriations of not more than
$300,000,000.--Except as provided in section 2017(c),
for any fiscal year for which the appropriation for
this subpart is $300,000,000 or less, each State
educational agency that receives funds under this
subpart, working jointly with the State agency for
higher education, shall ensure that all funds received
under this subpart are used for--
``(i) professional development and
mentoring in mathematics and science that is
aligned with State content and student
performance standards; and
``(ii) recruitment activities to attract
fully qualified math and science teachers to
high-poverty schools.
``(B) Appropriation of more than $300,000,000.--
Except as provided in section 2017(c), for any fiscal
year for which the appropriation for this subpart is
greater than $300,000,000, the State educational agency
and the State agency for higher education shall jointly
ensure that the total amount of funds that the agencies
receive under this subpart and that the agencies use
for activities described in subparagraph (A) is at
least as great as the allotment the State would have
received if that appropriation had been $300,000,000.
``(2) Interdisciplinary activities.--A State may use funds
received under this subpart for activities that focus on more
than 1 core academic subject, and apply the funds toward
meeting the requirements of paragraph (1), if the activities
include a strong focus on improving instruction in mathematics
or science.
``(3) Additional funds.--Except as provided in section
2017(c), each State educational agency that receives funds
under this subpart and the State agency for higher education
shall jointly ensure that any portion of the funds that exceeds
the amount required by paragraph (1) to be spent on activities
described in paragraph (1)(A) is used to provide--
``(A) professional development and mentoring in 1
or more of the core academic subjects that is aligned
with State content and student performance standards;
and
``(B) recruitment activities involving teachers of
1 or more of the core academic subjects.
``SEC. 2014. STATE LEVEL ACTIVITIES.
``(a) Activities.--Each State educational agency that receives a
grant described in section 2011 shall use the funds made available
under section 2013(a)(1) to carry out statewide strategies and
activities to improve teacher quality, including--
``(1) establishing, expanding, or improving alternative
routes to State certification or licensing of teachers, for
highly qualified individuals with a baccalaureate degree, mid-
career professionals from other occupations, or
paraprofessionals, that are at least as rigorous as the State's
standards for initial certification or licensing of teachers;
``(2) developing or improving evaluation systems to
evaluate the effectiveness of professional development and
mentoring and recruitment activities in improving teacher
quality, skills, and content knowledge, and the impact of the
professional development and mentoring and recruitment
activities on increasing student academic achievement and
student performance with performance measures drawn from
assessments that objectively measure student achievement
against State performance standards;
``(3) funding projects to promote reciprocity of teacher
certification or licensure between or among States;
``(4) providing assistance to local educational agencies to
reduce out-of-field placements and the use of emergency
credentials;
``(5) supporting certification by the National Board for
Professional Teaching Standards of teachers who are teaching or
will teach in high-poverty schools;
``(6) providing assistance to local educational agencies in
implementing effective programs of recruitment activities, and
professional development and mentoring, including supporting
efforts to encourage and train teachers to become mentor
teachers;
``(7) increasing the rigor and quality of State
certification and licensure tests for individuals entering the
field of teaching, including subject matter tests for
elementary, middle and secondary school teachers; and
``(8) implementing teacher recognition programs.
``(b) Coordination.--A State that receives a grant to carry out
this subpart and a grant under section 202 of the Higher Education Act
of 1965 shall coordinate the activities carried out under this section
and the activities carried out under that section 202.
``SEC. 2015. GRANTS TO LOCAL EDUCATIONAL AGENCIES.
``(a) Grants for Professional Development and Mentoring
Activities.--
``(1) In general.--The State educational agency of a State
that receives a grant described in section 2011 shall use the
funds made available under section 2013(a)(2) (and any funds
made available under section 2013(a)(3)(B)) to make grants to
eligible local educational agencies, from allocations made
under paragraph (2), to carry out the activities described in
section 2017(a) (except as provided in section 2017(c)).
``(2) Allocations.--The State educational agency shall
allocate to each eligible local educational agency the sum of--
``(A) an amount that bears the same relationship to
20 percent of the funds described in paragraph (1) as
the number of individuals enrolled in public and
private nonprofit elementary schools and secondary
schools in the geographic area served by the agency
bears to the number of those individuals in the
geographic areas served by all the local educational
agencies in the State; and
``(B) an amount that bears the same relationship to
80 percent of the funds as the number of individuals
age 5 through 17 from families with incomes below the
poverty line, in the geographic area served by the
agency, as determined by the Secretary on the basis of
the most recent satisfactory data, bears to the number
of those individuals in the geographic areas served by
all the local educational agencies in the State, as so
determined.
``(3) Eligibility.--To be eligible to receive a grant from
a State educational agency under this subsection, a local
educational agency shall serve schools that include--
``(A) high-poverty schools;
``(B) schools that need support for improving
teacher quality based on low achievement of students
served;
``(C) schools that have low teacher retention
rates;
``(D) schools that need to improve or expand the
knowledge and skills of new and veteran teachers in
high-priority content areas;
``(E) schools that have high out-of-field placement
rates; or
``(F) high-poverty schools that have been
identified for improvement in accordance with section
1116.
``(4) Equitable geographic distribution.--A State
educational agency shall ensure an equitable distribution of
grants under this subsection among eligible local educational
agencies serving urban and rural areas.
``(b) Grants for Recruitment Activities.--
``(1) In general.--The State educational agency of a State
that receives a grant under section 2011 shall use the funds
made available under section 2013(a)(3)(A) to make grants to
eligible recruitment partnerships, on a competitive basis, to
carry out the recruitment activities and meet requirements
described in section 2017(b).
``(2) Eligibility.--
``(A) In general.--To be eligible to receive a
grant from a State educational agency under this
subsection, a recruitment partnership--
``(i) shall include an eligible local
educational agency, or a consortium of eligible
local educational agencies;
``(ii) shall include an institution of
higher education, a tribal college, or a
community college; and
``(iii) may include other members, such as
a nonprofit organization or professional
education organization.
``(B) Eligible local educational agency.--In
subparagraph (A), the term `eligible local educational
agency' means a local educational agency that receives
assistance under part A of title I, and meets any
additional eligibility criteria that the appropriate
State educational agency may establish.
``(3) Equitable geographic distribution.--A State
educational agency shall ensure an equitable distribution of
grants under this subsection among eligible recruitment
partnerships serving urban and rural areas.
``SEC. 2016. LOCAL APPLICATIONS.
``(a) In General.--A local educational agency or a recruitment
partnership seeking to receive a grant from a State under section 2015
to carry out activities described in section 2017 shall submit an
application to the State at such time, in such manner, and containing
such information as the State may reasonably require.
``(b) Contents Relating to Professional Development and Mentoring
Activities.--If the local educational agency seeks a grant under
section 2015(a) to carry out activities described in section 2017(a),
the local application described in subsection (a) shall include, at a
minimum, the following:
``(1) A description of how the local educational agency
intends to use the funds provided through the grant to carry
out activities that meet requirements described in section
2017(a).
``(2) An assurance that the local educational agency will
target the funds to high-poverty, low-performing schools served
by the local educational agency that--
``(A) have the lowest proportions of qualified
teachers;
``(B) are identified for school improvement and
corrective action under section 1116; or
``(C) are identified for school improvement in
accordance with other measures of school quality as
determined and documented by the local educational
agency.
``(3) A description of how the local educational agency
will coordinate professional development and mentoring
activities described in section 2017(a) with professional
development and mentoring activities provided through other
Federal, State, and local programs, including programs
authorized under--
``(A) titles I, IV, and V, and part A of title VII;
and
``(B) where applicable, the Individuals with
Disabilities Education Act, the Carl D. Perkins
Vocational and Technical Education Act of 1998, and
title II of the Higher Education Act of 1965.
``(4) A description of how the local educational agency
will integrate funds received to carry out activities described
in section 2017(a) with funds received under title V that are used for
professional development and mentoring in order to carry out
professional development and mentoring activities that--
``(A) train teachers, paraprofessionals,
counselors, pupil services personnel, administrators,
and other school staff, including school library media
specialists, in how to use technology to improve
learning and teaching; and
``(B) take into special consideration the different
learning needs for, and exposures to, technology for
all students, including females, students with
disabilities, students with limited English
proficiency, and students who have economic and
educational disadvantages.
``(5) A description of how the local application was
developed with extensive participation of teachers,
paraprofessionals, principals, and parents.
``(6) A description of how the professional development and
mentoring activities described in section 2017(a) will address
the ongoing professional development and mentoring of teachers,
paraprofessionals, counselors, pupil services personnel,
administrators, and other school staff, including school
library media specialists.
``(7) A description of how the professional development and
mentoring activities described in section 2017(a) will have a
substantial, measurable, and positive impact on student
achievement and how the activities will be used as part of a
broader strategy to eliminate the achievement gap that
separates low-income and minority student from other students.
``(8) A description of how the local educational agency
will address the needs of teachers of students with
disabilities, students with limited English proficiency, and
other students with special needs.
``(9) A description of how the local educational agency
will provide training to teachers to enable the teachers to
work with parents, involve parents in their child's education,
and encourage parents to become collaborators with schools in
promoting their child's education.
``(10) The assurances and description referred to in
section 2023, with respect to professional development and
mentoring activities.
``(c) Development and Contents Relating to Recruitment
Activities.--If an eligible local educational agency (as defined in
section 2015(b)) seeks a grant under section 2015(b) to carry out
activities described in section 2017(b)--
``(1) the eligible local educational agency shall enter
into a recruitment partnership, which shall jointly prepare and
submit the local application described in subsection (a); and
``(2) at a minimum, the application shall include--
``(A) a description of how the recruitment
partnership will meet the teacher corps program
requirements described in section 2018;
``(B) a description of the individual and
collective responsibilities of members of the
recruitment partnership in meeting the requirements and
goals of a teacher corps program described in section
2018;
``(C) information demonstrating that the State
agency responsible for teacher licensure or
certification in the State in which a recruitment
partnership is established will--
``(i) ensure that a corps member who
successfully completes a teacher corps program
will have the academic requirements necessary
for initial certification or licensure as a
teacher in the State; and
``(ii) work with the recruitment
partnership to ensure the partnership uses
high-quality methods and establishes high-
quality requirements concerning alternative
routes to certification or licensing, in order
to meet State requirements for certification or
licensure; and
``(D) the assurances and description referred to in
section 2023, with respect to recruitment activities.
``(d) Contents Relating to Covered Recruitment.--If the local
educational agency seeks a grant under section 2015(a) to carry out
activities described in section 2017(c), the local application
described in subsection (a) shall include, at a minimum, a description
of the activities and the manner in which the activities will
contribute to accomplishing the objectives of section 2023, and how the
activities are in compliance with the requirements of this Act.
``(e) Approval.--A State educational agency shall approve a local
educational agency's or recruitment partnership's application under
this section only if the State educational agency determines that the
application is of high quality and holds reasonable promise of
achieving the purposes of this part.
``SEC. 2017. LOCAL ACTIVITIES.
``(a) Professional Development and Mentoring Activities.--Except as
provided in subsection (c), each local educational agency receiving a
grant under section 2015(a) shall use the funds made available through
the grant to carry out activities (and only activities) that--
``(1) are professional development activities (as defined
in section 2002(12)(A)) that--
``(A) improve teacher knowledge of--
``(i) 1 or more of the core academic
subjects;
``(ii) effective instructional strategies,
methods, and skills for improving student
achievement in core academic subjects,
including strategies for identifying and
eliminating gender and racial bias;
``(iii) the use of data and assessments to
inform teachers about and thereby help teachers
to improve classroom practice; and
``(iv) innovative instructional
methodologies designed to meet the
diverse learning needs of individual students, including methodologies
that integrate academic and technical skills and applied learning (such
as service learning), methodologies for interactive and
interdisciplinary team teaching, and other alternative teaching
strategies, such as strategies for experiential learning, career-
related education, and environmental education, that integrate real
world applications into the core academic subjects;
``(B) provide teachers and paraprofessionals (and
other staff as appropriate) with information on recent
research findings on how children learn to read and
with staff development on research-based instructional
strategies for the teaching of reading;
``(C) replicate effective instructional practices
that involve collaborative groups of teachers and
administrators from the same school or district, using
strategies such as--
``(i) provision of dedicated time for
collaborative lesson planning and curriculum
development meetings;
``(ii) provision of collaborative
professional development experiences for
veteran teachers based on the standards in the
core academic subjects of the National Board
for Professional Teaching Standards;
``(iii) consultation with exemplary
teachers;
``(iv) provision of short-term and long-
term visits to classrooms and schools;
``(v) participation of teams of teachers in
summer institutes and summer immersion
activities that are focused on preparing
teachers to enable all students to meet high
standards in 1 or more of the core academic
subjects; and
``(vi) establishment and maintenance of
local professional networks that provide a
forum for interaction among teachers and
administrators and that allow for the exchange
of information on advances in content knowledge
and teaching skills;
``(D) provide for the participation of
paraprofessionals, pupil services personnel, and other
school staff;
``(E) include strategies for fostering meaningful
parental involvement and relations with parents to
encourage parents to become collaborators in their
children's education, for improving classroom
management and discipline, and for integrating
technology into a curriculum;
``(F) as a whole, are regularly evaluated for their
impact on increased teacher effectiveness and improved
student achievement, with the findings of the
evaluations used to improve the quality of activities
described in this paragraph;
``(G) include, to the extent practicable, the
establishment of a partnership with an institution of
higher education, another local educational agency, a
teacher organization, or another organization, for the
purpose of carrying out activities described in this
paragraph; and
``(H) include ongoing and school-based support for
activities described in this paragraph, such as support
for peer review, coaching, or study groups, and the
provision of release time as needed for the activities;
``(2) are mentoring activities; and
``(3) include local activities carried out under chapter 2.
``(b) Recruitment Activities.--Each recruitment partnership
receiving a grant under section 2015(b) shall use the funds made
available through the grant to carry out recruitment activities (and
only recruitment activities) described in section 2018.
``(c) Covered Recruitment.--A local educational agency receiving a
grant under section 2015(a) for a fiscal year may elect to use a
portion of the funds made available through the grant, but not more
than the agency's share of 10 percent of the funds allotted to the
State involved under section 2011 for the fiscal year, to carry out
recruitment (including recruitment through the use of signing bonuses
and other financial incentives) and hiring of fully qualified teachers.
``SEC. 2018. RECRUITMENT ACTIVITIES THROUGH A TEACHER CORPS PROGRAM.
``(a) Teacher Corps Program Requirements.--
``(1) Recruitment.--A recruitment partnership that receives
a grant under section 2015(b) shall broadly recruit and screen
for a teacher corps a highly qualified pool of candidates who
demonstrate the potential to become effective teachers. Each
candidate shall meet--
``(A) standards to ensure that--
``(i) each corps member possesses
appropriate, high-level credentials and
presents the likelihood of becoming an
effective teacher; and
``(ii) each group of corps members includes
people who have expertise in academic subjects
and otherwise meet the specific needs of the
district to be served; and
``(B) any additional standard that the recruitment
partnership establishes to enhance the quality and
diversity of candidates and to meet the academic and
grade level needs of the partnership.
``(2) Required curriculum and placement.--Members of the
recruitment partnership shall work together to plan and develop
a program that includes--
``(A) a rigorous curriculum that includes a
preservice training program (incorporating innovative
approaches to preservice training, such as distance
learning), for a period not to exceed 1 year, that
provides corps members with the skills and knowledge
necessary to become effective teachers, by--
``(i) requiring completed course work in
basic areas of teaching, such as principles of
learning and child development, effective
teaching strategies, assessments, and classroom
management, and in the pedagogy related to the
academic subjects in which a corps member
intends to teach;
``(ii) providing extensive preparation in
the pedagogy of reading to corps members,
including preparation components that focus
on--
``(I) understanding the psychology
of reading, and human growth and
development;
``(II) understanding the structure
of the English language; and
``(III) learning and applying the
best teaching methods to all aspects of
reading instruction;
``(iii) providing training in the use of
technology as a tool to enhance a corps
member's effectiveness as a teacher and improve
the achievement of the corps member's students;
and
``(iv) focusing on the teaching skills and
knowledge that corps members need to enable all
students to meet the State's highest
challenging content and student performance
standards;
``(B) placement of a corps member with the local
educational agency participating in the recruitment
partnership, in a teaching internship that--
``(i) includes intensive mentoring;
``(ii) provides a reduced teaching load;
and
``(iii) provides regular opportunities for
the corps member to co-teach with a mentor
teacher, observe other teachers, and be
observed and coached by other teachers;
``(C) individualized inservice training over the
course of the corps member's first 2 years of full-time
teaching that provides--
``(i) high-quality professional
development, coordinated jointly by members of
the recruitment partnership, and the course
work necessary to provide additional or
supplementary knowledge to meet the specific
needs of the corps member; and
``(ii) ongoing mentoring by a teacher who
meets the criteria for a mentor teacher
described in paragraph (4)(B), including the
requirements of section 2002(10); and
``(D) collaboration between the recruitment
partnership, and local community student and parent
groups, to assist corps members in enhancing their
understanding of the community in which the members are
placed.
``(3) Evaluation.--A recruitment partnership shall evaluate
a corps member's progress in course study and classroom
practice at regular intervals. Each recruitment partnership
shall have a formal process to identify corps members who seem
unlikely to become effective teachers and terminate their
participation in the program.
``(4) Mentor teachers.--
``(A) In general.--A recruitment partnership shall
develop a plan for the program, which shall include
strategies for identifying, recruiting, training, and
providing ongoing support to individuals who will serve
as mentor teachers to corps members.
``(B) Mentor teacher requirements.--The plan
described in subparagraph (A) shall specify the
criteria that the recruitment partnership will use to
identify and select mentor teachers and, at a minimum,
shall--
``(i) require a mentor teacher to meet the
requirements of section 2002(10); and
``(ii) require that consideration be given
to teachers with national board certification.
``(C) Compensation.--The plan shall specify the
compensation--
``(i) for mentor teachers, including
monetary compensation, release time, or a
reduced work load to ensure that mentor
teachers can provide ongoing support for corps
members; and
``(ii) for corps members, including salary
levels and the stipends, if any, that will be
provided during a corps member's preservice
training.
``(5) Assurances.--The plan shall include assurances that--
``(A) a corps member will be assigned to teach only
academic subjects and grade levels for which the member
is fully qualified;
``(B) corps members, to the extent practicable,
will be placed in schools with teams of corps members;
and
``(C) every mentor teacher will be provided
sufficient time to meet the needs of the corps members
assigned to the mentor teacher.
``(b) Corps Member Qualifications.--
``(1) Candidates intending to teach in elementary
schools.--At a minimum, to be accepted by a teacher corps
program, a candidate who intends to teach at the elementary
school level shall--
``(A) have a bachelor's degree;
``(B) possess an outstanding commitment to working
with children and youth;
``(C) possess a strong professional or
postsecondary record of achievement; and
``(D) pass all basic skills and subject matter
tests required by the State for teacher certification
or licensure.
``(2) Candidates intending to teach in secondary schools.--
At a minimum, to be accepted by a teacher corps program, a
candidate who intends to teach at the secondary school level
shall--
``(A) meet the requirements described in paragraph
(1); and
``(B)(i) possess at least an academic major or
postsecondary degree in each academic subject in which
the candidate intends to teach; or
``(ii) if the candidate did not major or earn a
postsecondary degree in an academic subject in which
the candidate intends to teach, have completed a
rigorous course of instruction in that subject that is
equivalent to having majored in the subject.
``(3) Special rule.--Notwithstanding paragraph (2)(B), the
recruitment partnership may consider the candidate to be an
eligible corps member and accept the candidate for a teacher
corps program if the candidate has worked successfully and
directly in a field and in a position that provided the
candidate with direct and substantive knowledge in the academic
subject in which the candidate intends to teach.
``(c) Three-Year Commitment to Teaching in Eligible Districts.--
``(1) In general.--In return for acceptance to a teacher
corps program, a corps member shall commit to 3 years of full-
time teaching in a school or district served by a local
educational agency participating in a recruitment partnership
receiving funds under this subpart.
``(2) Reimbursement.--
``(A) In general.--If a corps member leaves the
school district to which the corps member has been
assigned prior to the end of the 3-year period
described in paragraph (1), the corps member shall be
required to reimburse the Secretary for the amount of
the Federal share of the cost of the corps member's
participation in the teacher corps program.
``(B) Partnership claims.--A recruitment
partnership that provides a teacher corps program to a
corps member who leaves the school district, as
discussed in subparagraph (A), may submit a claim to
the corps member requiring the corps member to
reimburse the recruitment partnership for the amount of
the partnership's share of the cost described in
subparagraph (A).
``(C) Reduction.--Reimbursements required under
this paragraph may be reduced proportionally based on
the amount of time a corps member remained in the
teacher corps program beyond the corps member's initial
2 years of service.
``(D) Waiver.--The Secretary may waive
reimbursements required under subparagraph (A) in the
case of severe hardship to a corps member who leaves
the school district, as described in subparagraph (A).
``(d) Federal Share; Non-Federal Share.--
``(1) Payment of federal share.--The Secretary shall pay to
each recruitment partnership carrying out a teacher corps
program under this section the Federal share of the cost of the
activities described in the partnership's application under
section 2016(c).
``(2) Non-federal share.--A recruitment partnership's share
of the cost of the activities described in the partnership's
application under section 2016(c)--
``(A) may be provided in cash or in kind, fairly
evaluated, including plant, equipment, or services; and
``(B)(i) for the first year for which the
partnership receives assistance under this subpart,
shall be not less than 10 percent;
``(ii) for the second such year, shall be not less
than 20 percent;
``(iii) for the third year such year, shall be not
less than 30 percent;
``(iv) for the fourth such year, shall be not less
than 40 percent; and
``(v) for the fifth such year, shall be not less
than 50 percent.
``SEC. 2019. GRANTS TO PARTNERSHIPS OF INSTITUTIONS OF HIGHER EDUCATION
AND LOCAL EDUCATIONAL AGENCIES.
``(a) Administration.--A State agency for higher education may use,
from the funds made available to the agency under section 2013(a)(4)
for any fiscal year, not more than 3\1/3\ percent for the expenses of
the agency in administering this section, including conducting
evaluations of activities on the performance measures described in
section 2014(a)(2).
``(b) Grants to Partnerships.--
``(1) In general.--The State agency for higher education
shall use the remainder of the funds, in cooperation with the
State educational agency, to make grants to (including entering
into contracts or cooperative agreements with) partnerships of--
``(A) institutions of higher education that are in
full compliance with all reporting requirements of
title II of the Higher Education Act of 1965 or
nonprofit organizations of demonstrated effectiveness
in providing professional development and mentoring in
the core academic subjects; and
``(B) eligible local educational agencies (as
defined in section 2015(b)(2)),
to carry out activities (and only activities) described in
subsection (e).
``(2) Size; duration.--Each grant made under this section
shall be--
``(A) in a sufficient amount to carry out the
objectives of this section effectively; and
``(B) for a period of 3 years, which the State
agency for higher education may extend for an
additional 2 years if the agency determines that the
partnership is making substantial progress toward
meeting the specific goals set out in the written
agreement required in subsection (c) and on the
performance measures described in section 2014(a)(2).
``(3) Applications.--To be eligible to receive a grant
under this section, a partnership shall submit an application
to the State agency for higher education at such time, in such
manner, and containing such information as the agency may
reasonably require.
``(4) Award process and basis.--The State agency for higher
education shall make the grants on a competitive basis, using a
peer review process.
``(5) Priority.--In making the grants, the State agency for
higher education shall give priority to partnerships submitting
applications for projects that focus on mentoring programs for
beginning teachers.
``(6) Considerations.--In making such a grant for a
partnership, the State agency for higher education shall
consider--
``(A) the need of the local educational agency
involved for the professional development and mentoring
activities proposed in the application;
``(B) the quality of the program proposed in the
application and the likelihood of success of the
program in improving classroom instruction and student
academic achievement; and
``(C) such other criteria as the agency finds to be
appropriate.
``(c) Agreements.--
``(1) In general.--No partnership may receive a grant under
this section unless the institution of higher education or
nonprofit organization involved enters into a written agreement
with at least 1 eligible local educational agency (as defined
in section 2015(b)(2)) to provide professional development and
mentoring for elementary and secondary school teachers in the
schools served by that agency in the core academic subjects.
``(2) Goals.--Each such agreement shall identify specific
measurable annual goals concerning how the professional
development and mentoring that the partnership provides will
enhance the ability of the teachers to prepare all students to
meet challenging State and local content and student
performance standards.
``(d) Joint Efforts Within Institutions of Higher Education.--Each
professional development and mentoring activity assisted under this
section by a partnership containing an institution of higher education
shall involve the joint effort of the institution of higher education's
school or department of education and the schools or departments of the
institution in the specific disciplines in which the professional
development and mentoring will be provided.
``(e) Uses of Funds.--A partnership that receives funds under this
section shall use the funds for activities (and only for activities)
that consist of--
``(1) professional development and mentoring in the core
academic subjects, aligned with State or local content
standards, for teams of teachers from a school or school
district and, where appropriate, administrators and
paraprofessionals;
``(2) research-based professional development and mentoring
programs to assist beginning teachers, which may include--
``(A) mentoring and coaching by trained mentor
teachers that lasts at least 2 years;
``(B) team teaching with veteran teachers who have
a consistent record of helping their students make
substantial academic gains;
``(C) provision of time for observation of, and
consultation with, veteran teachers;
``(D) provision of reduced teaching loads; and
``(E) provision of additional time for preparation;
``(3) the provision of technical assistance to school and
agency staff for planning, implementing, and evaluating
professional development and mentoring;
``(4) the provision of training for teachers to help the
teachers develop the skills necessary to work most effectively
with parents; and
``(5) in appropriate cases, the provision of training to
address areas of teacher and administrator shortages.
``(f) Coordination.--Any partnership that carries out professional
development and mentoring activities under this section shall
coordinate the activities with activities carried out under title II of
the Higher Education Act of 1965, if a local educational agency or
institution of higher education in the partnership is participating in
programs funded under that title.
``(g) Annual Reports.--
``(1) In general.--Beginning with fiscal year 2002, each
partnership that receives a grant under this section shall
prepare and submit to the appropriate State agency for higher
education, by a date set by that agency, an annual report on
the progress of the partnership on the performance measures
described in section 2014(a)(2).
``(2) Contents.--Each such report shall--
``(A) include a copy of each written agreement
required by subsection (c) that is entered into by the
partnership; and
``(B) describe how the members of the partnership
have collaborated to achieve the specific goals set out
in the agreement, and the results of that
collaboration.
``(3) Copy.--The State agency for higher education shall
provide the State educational agency with a copy of each such
report.
``Chapter 2--Accountability
``SEC. 2021. STATE APPLICATION ACCOUNTABILITY PROVISIONS.
``(a) Assurances.--Each State application submitted under section
2012 shall contain assurances that--
``(1) beginning on the date of enactment of the Educational
Opportunities Act, no school in the State that is served under
this subpart will use funds received under this subpart to hire
a teacher who is not a fully qualified teacher; and
``(2) not later than 4 years after the date of enactment of
the Educational Opportunities Act, each teacher in the State
who provides services to students served under this subpart
shall be a fully qualified teacher.
``(b) Withholding.--If a State fails to meet the requirements
described in subsection (a)(2) for a fiscal year in which the
requirements apply--
``(1) the Secretary shall withhold, for the following
fiscal year, a portion of the funds that would otherwise be
available to the State under section 2013(a)(1) for the
administration of this subpart; and
``(2) the State shall be subject to such other penalties as
are provided by law for a violation of this Act.
``(c) Assistance by State Educational Agency.--Each State
application submitted under section 2012 shall describe how the State
educational agency will help each local educational agency and school
in the State develop the capacity to comply with the requirements of
this section.
``SEC. 2022. STATE REPORTS.
``(a) Report to Secretary.--
``(1) In General.--Each State that receives funds under
this subpart shall annually prepare and submit to the Secretary
a report containing--
``(A) information on the activities of the State
under this subpart, including statewide information,
and information on the activities of each grant
recipient in the State;
``(B) information on the effectiveness of the
activities, and the progress of recipients of grants
under this subpart, on performance measures, including
measures described in section 2014(a)(2) and goals
described in paragraphs (3) and (4) of section 2012(b);
and
``(C) such other information as the Secretary may
reasonably require.
``(2) Deadlines.--The State shall submit the reports
described in paragraph (1) by such deadlines as the Secretary
may establish.
``(b) Public Accountability.--
``(1) In general.--Each State that receives funds under
this subpart--
``(A) in the event the State provides public State
report cards on education, shall include in such report
cards--
``(i) the percentage of middle school and
other secondary school classes in core academic
subjects that are taught by out-of-field
teachers;
``(ii) the percentage of middle school,
other elementary school, and other secondary
school classes taught by individuals holding
only emergency credentials, or for whom any
State certification or licensing standards for
teachers have been waived;
``(iii) the average statewide class size;
or
``(B) in the event the State provides no such
report card, shall disseminate to the public the
information described in clauses (i) through (iii) of
subparagraph (A) through other means.
``(2) Public availability.--Such information shall be made
widely available to the public, including parents and students,
throughout the State.
``(c) General Accounting Office.--Not later than September 30,
2004, the Comptroller General of the United States shall--
``(1) conduct a study of the progress of the States in
increasing the percentage of teachers who are fully qualified
teachers for fiscal years 2001 through 2003; and
``(2) prepare and submit to the Committee on Education and
Workforce of the House of Representatives and the Committee on
Health, Education, Labor, and Pensions of the Senate a report
containing the results of the study.
``SEC. 2023. LOCAL APPLICATION ACCOUNTABILITY PROVISIONS.
``Each local application submitted under section 2016 shall contain
assurances that--
``(1) the agency will not hire a teacher with funds made
available to the agency under this subpart, unless the teacher
is a fully qualified teacher;
``(2) the local educational agency and schools served by
the agency will work to ensure, through voluntary agreements
and incentive programs, that elementary school and secondary
school teachers in high-poverty schools served by the local
educational agency will be at least as well qualified, in terms
of experience and credentials, as the instructional staff in
schools served by the same local educational agency that are
not high-poverty schools;
``(3) any teacher who receives certification from the
National Board for Professional Teaching Standards will be
considered fully qualified to teach, in the academic subjects
in which the teacher is certified, in high-poverty schools in
any school district or community served by the local
educational agency; and
``(4) the agency will--
``(A) make available, on request and in an
understandable and uniform format, to any parent of a
student attending any school served by the local
educational agency, information regarding the
professional qualifications of the student's classroom
teachers with regard to--
``(i) whether the teacher has met State
certification or licensing criteria for the
academic subjects and grade level in which the
teacher teaches the student;
``(ii) whether the teacher is teaching with
emergency or whether any State certification or
licensing standard has been waived for the
teacher; and
``(iii) the academic qualifications of the
teacher in the academic subjects and grade
levels in which the teacher teaches; and
``(B) inform parents that the parents are entitled
to receive the information upon request.
``SEC. 2024. LOCAL CONTINUATION OF FUNDING.
``(a) Agencies.--If a local educational agency applies for funds
under this subpart for a 4th or subsequent fiscal year (including
applying for funds as part of a partnership), the agency may receive
the funds for that fiscal year only if the State determines that the
agency has demonstrated that the agency, in carrying out activities
under this subpart during the past fiscal year, has met annual
numerical performance objectives for--
``(1) improved student performance for all groups described
in section 1111(b)(2);
``(2) increased participation in sustained professional
development and mentoring programs;
``(3) reduced the beginning teacher attrition rate for the
agency; and
``(4) reduced the number of teachers who are not certified
or licensed, and the number who are out-of-field teachers, for
the agency.
``(b) Schools.--If a local educational agency applies for funds
under this subpart on behalf of a school for a 4th or subsequent fiscal
year (including applying for funds as part of a partnership), the
agency may receive the funds for the school for that fiscal year only
if the State determines that the school has demonstrated that the
school, in carrying out activities under this subpart during the past
fiscal year, has met the requirements of paragraphs (1) through (4) of
subsection (a).
``(c) Recruitment Partnerships.--
``(1) In general.--If not more than 90 percent of the
graduates of a teacher corps program assisted under this
subpart for a fiscal year pass applicable State or local
initial teacher licensing or certification examinations, the
recruitment partnership providing the teacher corps program
shall be ineligible to receive grant funds for the succeeding
fiscal year.
``(2) Waiver.--The State in which the partnership is
located may waive the requirement described in paragraph (1)
for a recruitment partnership serving a school district that
has special circumstances, such as a district with a small
number of corps members.
``SEC. 2025. LOCAL REPORTS.
``(a) In General.--Each local educational agency that receives
funds under this subpart (including funds received through a
partnership) shall prepare, make publicly available, and submit to the
State educational agency, every year, beginning in fiscal year 2002, a
report on the activities of the agency under this subpart, in such form
and containing such information as the State educational agency may
reasonably require.
``(b) Contents.--The report shall contain, at a minimum--
``(1) information on progress throughout the schools served
by the local educational agency on the performance measures
described in section 2014(a)(2) and goals described in
paragraphs (3) and (4) of section 2012(b);
``(2) information on progress throughout the schools served
by the local educational agency toward achieving the objectives
of, and carrying out the activities described in, this subpart;
``(3) data on the progress described in paragraphs (1) and
(2), disaggregated by school poverty level, as defined by the
State; and
``(4) a description of the methodology used to gather the
information and data described in paragraphs (1) through (3).
``Subpart 2--National Activities for the Improvement of Teaching and
School Leadership
``Chapter 1--National Activities and Clearinghouse
``SEC. 2031. PROGRAM AUTHORIZED.
``(a) In General.--The Secretary is authorized to make grants to,
and to enter into contracts and cooperative agreements with, local
educational agencies, educational service agencies, State educational
agencies, State agencies for higher education, institutions of higher
education, and other public and private nonprofit agencies,
organizations, and institutions to carry out subsection (b).
``(b) Activities.--In making the grants, and entering into the
contracts and cooperative agreements, the Secretary--
``(1) may support activities of national significance that
are not supported through other sources and that the Secretary
determines will contribute to the improvement of teaching and
school leadership in the Nation's schools, such as--
``(A) supporting collaborative efforts by States,
or consortia of States, to review and measure the
quality, rigor, and alignment of State standards and
assessments;
``(B) supporting State and local efforts to develop
curricula aligned with State standards and assessments;
``(C) supporting collaborative efforts by States,
or consortia of States, to review and measure the
quality and rigor of standards for entry into the field
of teaching, including the alignment of such standards
with State standards for students in elementary school
and secondary school, and the alignment of initial
teacher licensing and certification assessments with
State standards for entry into the field of teaching;
``(D) supporting the development of models, at the
State and local levels, of innovative compensation
systems that--
``(i) provide incentives for talented
individuals who have a strong knowledge of
academic content to enter teaching; and
``(ii) reward veteran teachers who acquire
new knowledge and skills that are needed in the
schools and districts in which the teachers
teach; and
``(E) supporting collaborative efforts by States,
or consortia of States, to develop performance-based
systems for assessing content knowledge and teaching
skills of teachers prior to initial certification or
licensure of the teachers;
``(2) may support activities of national significance that
the Secretary determines will contribute to the recruitment and
retention of highly qualified teachers and principals in
schools served by high-poverty local educational agencies, such
as--
``(A) the development and implementation of a
national teacher recruitment clearinghouse and job
bank, which shall be coordinated and, to the extent
feasible, integrated with the America's Job Bank
administered by the Secretary of Labor, to--
``(i) disseminate information and resources
nationwide on entering the teaching profession,
to persons interested in becoming teachers;
``(ii) serve as a national resource center
regarding effective practices for teacher
professional development and mentoring,
recruitment, and retention;
``(iii) link prospective teachers to local
educational agencies and training resources;
``(iv) provide information and technical
assistance to prospective teachers about
certification and licensing and other State and
local requirements related to teaching; and
``(v) provide data projections concerning
teacher and administrator supply and demand and
available teaching and administrator
opportunities;
``(B) the development and implementation, or
expansion, of programs that recruit talented
individuals to become principals, including such
programs that employ alternative routes to State
certification or licensing that are at least as
rigorous as the State's standards for initial
certification or licensing of teachers, and that
prepare both new and experienced principals to serve as
instructional leaders, which may include the creation
and operation of a national center or regional centers
for the preparation and support of principals as
leaders of school reform;
``(C) efforts to increase the portability of
teacher pensions and reciprocity of teaching
credentials across State lines;
``(D) research, evaluation, and dissemination
activities related to effective strategies for
increasing the portability of teachers' credited years
of experience across State and school district lines;
``(E) the development and implementation of
national or regional programs to--
``(i) recruit highly talented individuals
to become teachers, through alternative routes
to certification or licensing that are at least
as rigorous as the State's standards for
initial certification or licensing of teachers,
in schools served by high-poverty local
educational agencies; and
``(ii) help retain the individuals for more
than 3 years as classroom teachers in schools
served by the local educational agencies; and
``(F) the establishment of partnerships of high-
poverty local educational agencies, teacher
organizations, and local businesses, in order to help
the agencies attract and retain high-quality teachers
and principals through provision of increased pay,
combined with reforms to raise teacher performance
including use of regular, rigorous peer evaluations and
(where appropriate) student evaluations of every
teacher;
``(3) may support the National Board for Professional
Teaching Standards;
``(4)(A) shall carry out a national evaluation, not sooner
than 3 years and not later than 4 years after the date of
enactment of the Educational Opportunities Act, of the effect
of activities carried out under this title, including an
assessment of changes in instructional practice and objective
measures of student achievement; and
``(B) shall submit a report containing the results of the
evaluation to Congress; and
``(5) shall annually submit to Congress a report on the
information contained in the State reports described in section
2022.
``SEC. 2032. EISENHOWER NATIONAL CLEARINGHOUSE FOR MATHEMATICS AND
SCIENCE EDUCATION.
``(a) Establishment of Clearinghouse.--The Secretary shall award a
grant or contract, on a competitive basis, to an entity to establish
and operate an Eisenhower National Clearinghouse for Mathematics and
Science Education (referred to in this section as `the Clearinghouse').
``(b) Authorized Activities.--
``(1) Application and award basis.--
``(A) In general.--An entity desiring to establish
and operate the Clearinghouse shall submit an
application to the Secretary at such time, in such
manner, and containing such information as the
Secretary may reasonably require.
``(B) Peer review.--The Secretary shall establish a
peer review panel to make recommendations on the
recipient of the award for the Clearinghouse.
``(C) Basis.--The Secretary shall make the award
for the Clearinghouse on the basis of merit.
``(2) Duration.--The Secretary shall award the grant or
contract for the Clearinghouse for a period of 5 years.
``(3) Activities.--The award recipient shall use the award
funds to--
``(A) maintain a permanent collection of such
mathematics and science education instructional
materials and programs for elementary schools and
secondary schools as the Secretary finds appropriate,
and give priority to maintaining such materials and
programs that have been identified as promising or
exemplary, through a systematic approach such as the
use of expert panels required under the Educational
Research, Development, Dissemination, and Improvement
Act of 1994;
``(B) disseminate the materials and programs
described in subparagraph (A) to the public, State
educational agencies, local educational agencies, and
schools (particularly high-poverty, low-performing
schools), including dissemination through the
maintenance of an interactive national electronic
information management and retrieval system accessible
through the World Wide Web and other advanced
communications technologies;
``(C) coordinate activities with entities operating
other databases containing mathematics and science
curriculum and instructional materials, including
Federal, non-Federal, and, where feasible,
international databases;
``(D) using not more than 10 percent of the amount
awarded under this section for any fiscal year,
participate in collaborative meetings of
representatives of the Clearinghouse and regional
mathematics and science education consortia to--
``(i) discuss issues of common interest and
concern;
``(ii) foster effective collaboration and
cooperation in acquiring and distributing
instructional materials and programs; and
``(iii) coordinate and enhance computer
network access to the Clearinghouse and the
resources of the regional consortia;
``(E) support the development and dissemination of
model professional development and mentoring materials
for mathematics and science education;
``(F) contribute materials or information, as
appropriate, to other national repositories or
networks; and
``(G) gather qualitative and evaluative data on
submissions to the Clearinghouse, and disseminate that
data widely, including through the use of electronic
dissemination networks.
``(4) Submission to clearinghouse.--Each Federal agency or
department that develops mathematics or science education
instructional materials or programs, including the National
Science Foundation and the Department, shall submit copies of
that materials or those programs to the Clearinghouse.
``(5) Steering committee.--The Secretary may appoint a
steering committee to recommend policies and activities for the
Clearinghouse.
``(6) Application of copyright laws.--
``(A) Construction.--Nothing in this section shall
be construed to allow the use or copying, in any
medium, of any material collected by the Clearinghouse
that is protected under the copyright laws of the
United States unless the Clearinghouse obtains the
permission of the owner of the copyright.
``(B) Compliance.--In carrying out this section,
the Clearinghouse shall ensure compliance with title
17, United States Code.
``Chapter 2--Transition to Teaching
``SEC. 2041. PURPOSE.
``The purpose of this chapter is to address the need of high-
poverty local educational agencies for highly qualified teachers in
particular academic subjects, such as mathematics, science, foreign
languages, bilingual education, and special education needed by the
agencies, by--
``(1) continuing and enhancing the Troops to Teachers model
for recruiting and supporting the placement of such teachers;
and
``(2) recruiting, preparing, placing, and supporting
career-changing professionals who have knowledge and experience
that will help the professionals become such teachers.
``SEC. 2042. DEFINITIONS.
``In this chapter:
``(1) Program participant.--The term `program participant'
means a career-changing professional who--
``(A) demonstrates interest in, and commitment to,
becoming a teacher; and
``(B) has knowledge and experience that is relevant
to teaching a high-need academic subject for a high-
poverty local educational agency.
``(2) Secretary.--The term `Secretary' means the Secretary
of Education, except as otherwise determined in accordance with
the agreements described in section 2043(b).
``SEC. 2043. PROGRAM AUTHORIZED.
``(a) Authority.--Subject to subsection (b), using funds made
available to carry out this chapter under section 2003(2)(A) for each
fiscal year, the Secretary may award grants, contracts, or cooperative
agreements to institutions of higher education and public and private
nonprofit agencies or organizations to carry out programs authorized
under this chapter.
``(b) Implementation.--
``(1) Consultation.--Before making awards under subsection
(a) for any fiscal year, the Secretary of Education shall--
``(A) consult with the Secretary of Defense and the
Secretary of Transportation regarding the appropriate
amount of funding needed to carry out this chapter; and
``(B) upon agreement, transfer that amount to the
Department of Defense to carry out this chapter.
``(2) Agreement.--The Secretary of Education may enter into
a written agreement with the Secretary of Defense and the
Secretary of Transportation, or take such other steps as the
Secretary of Education determines are appropriate, to ensure
effective implementation of this chapter.
``SEC. 2044. APPLICATION.
``Each entity that desires an award under section 2043(a) shall
submit an application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require,
including--
``(1) a description of the target group of career-changing
professionals on which the entity will focus in carrying out a
program under this chapter, including a description of the
characteristics of that target group that shows how the
knowledge and experience of the members of the group are
relevant to meeting the purpose of this chapter;
``(2) a description of how the entity will identify and
recruit program participants;
``(3) a description of the training that program
participants will receive and how that training will relate to
their certification or licensing as teachers;
``(4) a description of how the entity will ensure that
program participants are placed with, and teach for, high-
poverty local educational agencies;
``(5) a description of the teacher induction services
(which may be provided through induction programs in existence
on the date of submission of the application) the program
participants will receive throughout at least their first year
of teaching;
``(6) a description of how the entity will collaborate, as
needed, with other institutions, agencies, or organizations to
recruit, train, place, and support program participants under
this chapter, including evidence of the commitment of the
institutions, agencies, or organizations to the entity's
program;
``(7) a description of how the entity will evaluate the
progress and effectiveness of the entity's program, including a
description of--
``(A) the program's goals and objectives;
``(B) the performance indicators the entity will
use to measure the program's progress; and
``(C) the outcome measures that the entity will use
to determine the program's effectiveness; and
``(8) an assurance that the entity will provide to the
Secretary such information as the Secretary determines to be
necessary to determine the overall effectiveness of programs
carried out under this chapter.
``SEC. 2045. USES OF FUNDS AND PERIOD OF SERVICE.
``(a) Authorized Activities.--Funds made available under this
chapter may be used for--
``(1) recruiting program participants, including informing
individuals who are potential participants of opportunities
available under the program and putting the individuals in
contact with other institutions, agencies, or organizations
that would train, place, and support the individuals;
``(2) providing training stipends and other financial
incentives for program participants, such as paying for moving
expenses, not to exceed $5,000, in the aggregate, per
participant;
``(3) assisting institutions of higher education or other
providers of teacher training to tailor their training to meet
the particular needs of professionals who are changing their
careers to teaching;
``(4) providing placement activities, including identifying
high-poverty local educational agencies with needs for the
particular skills and characteristics of the newly trained
program participants and assisting the participants to obtain
employment with the local educational agencies; and
``(5) providing post-placement induction or support
activities for program participants.
``(b) Period of Service.--A program participant in a program under
carried out under this chapter who completes the participant's training
shall serve in a high-poverty local educational agency for at least 3
years.
``(c) Repayment.--The Secretary shall establish such requirements
as the Secretary determines to be appropriate to ensure that program
participants who receive a training stipend or other financial
incentive under subsection (a)(2), but fail to complete their service
obligation under subsection (b), repay all or a portion of such stipend
or other incentive.
``SEC. 2046. EQUITABLE DISTRIBUTION.
``To the extent practicable, the Secretary shall make awards under
this chapter that support programs in different geographic regions of
the Nation.
``Chapter 3--Hometown Teachers
``SEC. 2051. PURPOSE.
``The purpose of this chapter is to support the efforts of high-
need local educational agencies to develop and implement comprehensive
approaches to recruiting and retaining highly qualified teachers,
including recruiting such teachers through Hometown Teacher programs
that carry out long-term strategies to expand the capacity of the
communities served by the agencies to produce local teachers.
``SEC. 2052. DEFINITION.
``The term `high-need local educational agency' means a local
educational agency that serves an elementary school or secondary school
located in an area in which there is--
``(1) a high percentage (as determined by the State in
which the agency is located) of individuals from families with
incomes below the poverty line;
``(2) a high percentage (as determined by the State in
which the agency is located) of secondary school teachers not
teaching in the core academic subjects in which the teachers
were trained to teach; or
``(3) a high percentage (as determined by the State in
which the agency is located) of elementary school and secondary
school teachers who are not fully qualified teachers.
``SEC. 2053. PROGRAM AUTHORIZED.
``From funds made available to carry out this chapter under section
2003(2)(B) for each fiscal year, the Secretary may award grants to
high-need local educational agencies to carry out Hometown Teacher
programs and other activities described in this chapter.
``SEC. 2054. APPLICATIONS.
``Each high-need local educational agency that desires to receive a
grant under section 2053 shall submit an application to the Secretary
at such time, in such manner, and containing such information as the
Secretary may require, including--
``(1) a description of the local educational agency's
assessment of the agency's needs for teachers, such as the
agency's projected shortage of qualified teachers and the
percentage of teachers serving the agency who lack
certification or licensure or who are teaching out of field;
``(2) a description of a Hometown Teacher program that the
local educational agency plans to develop and implement with
the funds made available through the grant, including a
description of--
``(A) strategies the agency will use to--
``(i) encourage secondary school and middle
school students in schools served by the local
educational agency to consider pursuing careers
in the teaching profession; and
``(ii) provide support at the undergraduate
level to those students who intend to become
teachers; and
``(B) the agency's plans to streamline the hiring
timelines in the hiring policies and practices of the
agency for participants in the Hometown Teacher
program;
``(3) a description of the long-term strategies that the
agency will use, if any, to reduce the agency's teacher
attrition rate, including providing mentoring programs and
making efforts to raise teacher salaries and create more
desirable working conditions for teachers;
``(4) a description of the agency's strategy for ensuring
that all secondary school teachers and middle school teachers
in the school district are fully certified or licensed in an
academic subject and are teaching the majority of their classes
in the subject in which the teachers are certified or licensed;
``(5) a description of the short-term strategies the agency
will use, if any, to address the agency's teacher shortage
problem, including the strategies the agency will use to ensure
that the teachers that the local educational agency is
targeting for employment are fully certified or licensed;
``(6) a description of the agency's long-term plan for
ensuring that the agency's teachers have opportunities for
sustained, high-quality professional development;
``(7) a description of the ways in which the activities
proposed to be carried out through the grant are part of the
agency's overall plan for improving the quality of teaching and
student achievement;
``(8) a description of how the agency will collaborate, as
needed, with other institutions, agencies, or organizations to
develop and implement the strategies the agency proposes in the
application, including evidence of the commitment of the
institutions, agencies, or organizations to the agency's
activities;
``(9) a description of the strategies the agency will use
to coordinate activities funded under the program carried out
under this chapter with activities funded through other Federal
programs that address teacher shortages, including programs
carried out through grants to local educational agencies under
title I or this title, including chapter 2, if the applicant
receives funds from the programs;
``(10) a description of how the agency will evaluate the
progress and effectiveness of the Hometown Teacher program,
including a description of--
``(A) the agency's goals and objectives for the
program;
``(B) the performance indicators that the agency
will use to measure the program's effectiveness; and
``(C) the measurable outcome measures, such as
increased percentages of fully certified or licensed
teachers, that the agency will use to determine the
program's effectiveness; and
``(11) an assurance that the agency will provide to the
Secretary such information as the Secretary determines to be
necessary to determine the overall effectiveness of programs
carried out under this chapter.
``SEC. 2055. PRIORITY.
``In awarding grants under this chapter, the Secretary may give
priority to agencies submitting applications that--
``(1) focus on increasing the percentage of qualified
teachers in particular teaching fields, such as mathematics,
science, and bilingual education; and
``(2) focus on recruiting qualified teachers for certain
types of communities, such as urban and rural communities.
``SEC. 2056. USE OF FUNDS.
``(a) Mandatory Use of Funds.--A local educational agency that
receives a grant under this chapter shall use the funds made available
through the grant to develop and implement long-term strategies to
address the agency's teacher shortage, including carrying out Hometown
Teacher programs such as the programs described in section 2051.
``(b) Permissible Use of Funds.--A local educational agency that
receives a grant under this chapter may use the funds made available
through the grant to--
``(1) develop and implement strategies to reduce the local
educational agency's teacher attrition rate, including
providing mentoring programs, increasing teacher salaries, and
creating more desirable working conditions for teachers; and
``(2) develop and implement short-term strategies to
address the agency's teacher shortage, including providing
scholarships to undergraduates who agree to teach in the school
district served by the agency for a certain number of years,
providing signing bonuses for teachers, and implementing
streamlined hiring practices.
``(c) Supplement, Not Supplant.--Funds made available under this
chapter shall be used to supplement, and shall not supplant, State and
local funds expended to carry out programs and activities authorized
under this chapter.
``SEC. 2057. SERVICE REQUIREMENTS.
``(a) In General.--The Secretary shall establish such requirements
as the Secretary finds to be necessary to ensure that a recipient of a
scholarship under this chapter who completes a teacher education
program subsequently--
``(1) teaches in a school district served by a high-need
local educational agency, for a period of time equivalent to
the period for which the recipient received the scholarship; or
``(2) repays the amount of the funds provided through the
scholarship.
``(b) Use of Repaid Funds.--The Secretary shall deposit any such
repaid funds in an account, and use the funds to carry out additional
activities under this chapter.
``Chapter 4--Early Childhood Educator Professional Development
``SEC. 2061. PURPOSE.
``In support of the national effort to attain the first of
America's Education Goals, the purpose of this chapter is to enhance
the school readiness of young children, particularly disadvantaged
young children, and to prevent them from encountering reading
difficulties once they enter school, by improving the knowledge and
skills of early childhood educators who work in communities that have
high concentrations of children living in poverty.
``SEC. 2062. PROGRAM AUTHORIZED.
``(a) Grants to Partnerships.--The Secretary shall carry out the
purpose of this chapter by awarding grants, on a competitive basis, to
partnerships consisting of--
``(1)(A) one or more institutions of higher education that
provide professional development for early childhood educators
who work with children from low-income families in high-need
communities; or
``(B) another public or private, nonprofit entity that
provides such professional development;
``(2) one or more public agencies (including local
educational agencies, State educational agencies, State human
services agencies, and State and local agencies administering
programs under the Child Care and Development Block Grant Act
of 1990), Head Start agencies, or private, nonprofit
organizations; and
``(3) to the extent feasible, an entity with demonstrated
experience in providing violence prevention education training
to educators in early childhood education programs.
``(b) Priority.--In awarding grants under this chapter, the
Secretary shall give priority to partnerships that include 1 or more
local educational agencies which operate early childhood education
programs for children from low-income families in high-need
communities.
``(c) Duration and Number of Grants.--
``(1) Duration.--Each grant under this chapter shall be
awarded for not more than 4 years.
``(2) Number.--No partnership may receive more than 1 grant
under this chapter.
``SEC. 2063. APPLICATIONS.
``(a) Applications Required.--Any partnership that desires to
receive a grant under this chapter shall submit an application to the
Secretary at such time, in such manner, and containing such information
as the Secretary may require.
``(b) Contents.--Each such application shall include--
``(1) a description of the high-need community to be served
by the project, including such demographic and socioeconomic
information as the Secretary may request;
``(2) information on the quality of the early childhood
educator professional development program currently conducted
by the institution of higher education or other provider in the
partnership;
``(3) the results of the assessment that the entities in
the partnership have undertaken to determine the most critical
professional development needs of the early childhood educators
to be served by the partnership and in the broader community,
and a description of how the proposed project will address
those needs;
``(4) a description of how the proposed project will be
carried out, including--
``(A) how individuals will be selected to
participate;
``(B) the types of research-based professional
development activities that will be carried out;
``(C) how research on effective professional
development and on adult learning will be used to
design and deliver project activities;
``(D) how the project will coordinate with and
build on, and will not supplant or duplicate, early
childhood education professional development activities
that exist in the community;
``(E) how the project will train early childhood
educators to provide services that are based on
developmentally appropriate practices and the best
available research on child, language, and literacy
development and on early childhood pedagogy;
``(F) how the program will train early childhood
educators to meet the diverse educational needs of
children in the community, including children who have
limited English proficiency, disabilities, or other
special needs; and
``(G) how the project will train early childhood
educators in identifying and preventing behavioral
problems or violent behavior in children;
``(5) a description of--
``(A) the specific objectives that the partnership
will seek to attain through the project, and how the
partnership will measure progress toward attainment of
those objectives; and
``(B) how the objectives and the measurement
activities align with the performance indicators
established by the Secretary under section 2066(a);
``(6) a description of the partnership's plan for
institutionalizing the activities carried out under the
project, so that the activities continue once Federal funding
ceases;
``(7) an assurance that, where applicable, the project will
provide appropriate professional development to volunteer
staff, as well as to paid staff; and
``(8) an assurance that, in developing its application and
in carrying out its project, the partnership has consulted
with, and will consult with, relevant agencies and early
childhood educator organizations described in section
2062(a)(2) that are not members of the partnership.
``SEC. 2064. SELECTION OF GRANTEES.
``(a) Criteria.--The Secretary shall select partnerships to receive
funding on the basis of the community's need for assistance and the
quality of the applications.
``(b) Geographic Distribution.--In selecting partnerships, the
Secretary shall seek to ensure that communities in different regions of
the Nation, as well as both urban and rural communities, are served.
``SEC. 2065. USES OF FUNDS.
``(a) In General.--Each partnership receiving a grant under this
chapter shall use the grant funds to carry out activities that will
improve the knowledge and skills of early childhood educators who are
working in early childhood programs that are located in high-need
communities and serve concentrations of children from low-income
families.
``(b) Allowable Activities.--Such activities may include--
``(1) professional development for individuals working as
early childhood educators, particularly to familiarize those
individuals with the application of recent research on child,
language, and literacy development and on early childhood
pedagogy;
``(2) professional development for early childhood
educators in working with parents, based on the best current
research on child, language, and literacy development and
parent involvement, so that the educators can prepare their
children to succeed in school;
``(3) professional development for early childhood
educators to work with children who have limited English
proficiency, disabilities, and other special needs;
``(4) professional development to train early childhood
educators in identifying and preventing behavioral problems or
violent behavior in children;
``(5) activities that assist and support early childhood
educators during their first three years in the field;
``(6) development and implementation of early childhood
educator professional development programs that make use of
distance learning and other technologies;
``(7) professional development activities related to the
selection and use of research-based diagnostic assessments to
improve teaching and learning; and
``(8) data collection, evaluation, and reporting needed to
meet the requirements of this chapter relating to
accountability.
``SEC. 2066. ACCOUNTABILITY.
``(a) Performance Indicators.--Simultaneously with the publication
of any application notice for grants under this chapter, the Secretary
shall announce performance indicators for this chapter, which shall be
designed to measure--
``(1) the quality and assessability of the professional
development provided;
``(2) the impact of that professional development on the
early childhood education provided by the individuals who are
trained; and
``(3) such other measures of program impact as the
Secretary determines appropriate.
``(b) Annual Reports; Termination.--
``(1) Annual reports.--Each partnership receiving a grant
under this chapter shall report annually to the Secretary on
the partnership's progress against the performance indicators.
``(2) Termination.--The Secretary may terminate a grant
under this chapter at any time if the Secretary determines that
the partnership is not making satisfactory progress against the
indicators.
``SEC. 2067. COST-SHARING.
``(a) In General.--Each partnership shall provide, from other
sources, which may include other Federal sources--
``(1) at least 50 percent of the total cost of its project
for the grant period; and
``(2) at least 20 percent of the project cost in each year.
``(b) Acceptable Contributions.--A partnership may meet the
requirement of subsection (a) through cash or in-kind contributions,
fairly valued.
``(c) Waivers.--The Secretary may waive or modify the requirements
of subsection (a) in cases of demonstrated financial hardship.
``SEC. 2068. FEDERAL COORDINATION.
``The Secretary and the Secretary of Health and Human Services
shall coordinate activities under this chapter and other early
childhood programs administered by the two Secretaries.
``SEC. 2069. DEFINITIONS.
``In this chapter:
``(1) High-need community.--
``(A) In general.--The term `high-need community'
means--
``(i) a municipality, or a portion of a
municipality, in which at least 50 percent of
the children are from low-income families; or
``(ii) a municipality that is one of the 10
percent of municipalities within the State
having the greatest numbers of such children.
``(B) Determination.--In determining which
communities are described in subparagraph (A), the
Secretary shall use such data as the Secretary
determines are most accurate and appropriate.
``(2) Low-income family.--The term `low-income family'
means a family with an income below the poverty line (as
defined by the Office of Management and Budget and revised
annually in accordance with section 673(2) of the Community
Services Block Grant Act) applicable to a family of the size
involved for the most recent fiscal year for which satisfactory
data are available.
``(3) Early childhood educator.--The term `early childhood
educator' means a person who provides care and education to
children at any age from birth through kindergarten.''.
(b) Conforming Amendment.--The Troops-to-Teachers Program Act of
1999 (20 U.S.C. 9301 et seq.) is repealed.
Subtitle B--Safe, Healthy Schools and Communities
CHAPTER 1--GRANTS FOR SCHOOL RENOVATION
SEC. 311. GRANTS FOR SCHOOL RENOVATION.
Title X (20 U.S.C. 8001 et seq.) is amended by adding at the end
the following:
``PART L--SCHOOL RENOVATION
``SEC. 10995. GRANTS FOR SCHOOL RENOVATION.
``(a) In General.--
``(1) Allocation of funds.--Of the amount appropriated for
each fiscal year under subsection (k), the Secretary of
Education shall allocate--
``(A) 6.0 percent of such amount for grants to
impacted local educational agencies (as defined in
paragraph (3)) for school repair, renovation, and
construction;
``(B) 0.25 percent of such amount for grants to
outlying areas for school repair and renovation in
high-need schools and communities, allocated on such
basis, and subject to such terms and conditions, as the
Secretary determines appropriate;
``(C) 2 percent of such amount for grants to public
entities, private nonprofit entities, and consortia of
such entities, for use in accordance with subpart 2 of
part C of this title X; and
``(D) the remainder to State educational agencies
in proportion to the amount each State received under
part A of title I for fiscal year 2001, except that no
State shall receive less than 0.5 percent of the amount
allocated under this subparagraph.
``(2) Determination of grant amount.--
``(A) Determination of weighted student units.--For
purposes of computing the grant amounts under paragraph
(1)(A) for fiscal year 2001, the Secretary shall
determine the results obtained by the computation made
under section 8003 with respect to children described
in subsection (a)(1)(C) of such section and computed
under subsection (a)(2)(B) of such section for such
year--
``(i) for each impacted local educational
agency that receives funds under this section;
and
``(ii) for all such agencies together.
``(B) Computation of payment.--For fiscal year
2002, the Secretary shall calculate the amount of a
grant to an impacted local educational agency by--
``(i) dividing the amount described in
paragraph (1)(A) by the results of the
computation described in subparagraph (A)(ii);
and
``(ii) multiplying the number derived under
clause (i) by the results of the computation
described in subparagraph (A)(i) for such
agency.
``(3) Definition.--For purposes of this section, the term
`impacted local educational agency' means, for fiscal year
2001--
``(A) a local educational agency that receives a
basic support payment under section 8003(b) for such
fiscal year; and
``(B) with respect to which the number of children
determined under section 8003(a)(1)(C) for the
preceding school year constitutes at least 50 percent
of the total student enrollment in the schools of the
agency during such school year.
``(b) Within-State Allocations.--
``(1) Administrative costs.--
``(A) State educational agency administration.--
Except as provided in subparagraph (B), each State
educational agency may reserve not more than 1 percent
of its allocation under subsection (a)(1)(D) for the
purpose of administering the distribution of grants
under this subsection.
``(B) State entity administration.--If the State
educational agency transfers funds to a State entity
described in paragraph (2)(A), the agency shall
transfer to such entity 0.75 of the amount reserved
under this paragraph for the purpose of administering
the distribution of grants under this subsection.
``(2) Reservation for competitive school repair and
renovation grants to local educational agencies.--
``(A) In general.--Subject to the reservation under
paragraph (1), of the funds allocated to a State
educational agency under subsection (a)(1)(D), the
State educational agency shall distribute 75 percent of
such funds to local educational agencies or, if such
State educational agency is not responsible for the
financing of education facilities, the agency shall
transfer such funds to the State entity responsible for
the financing of education facilities (referred to in
this section as the `State entity') for distribution by
such entity to local educational agencies in accordance
with this paragraph, to be used, consistent with
subsection (c), for school repair and renovation.
``(B) Competitive grants to local educational
agencies.--
``(i) In general.--The State educational
agency or State entity shall carry out a
program of competitive grants to local
educational agencies for the purpose described
in subparagraph (A). Of the total amount
available for distribution to such agencies
under this paragraph, the State educational
agency or State entity, shall, in carrying out
the competition--
``(I) award to high poverty local
educational agencies described in
clause (ii), in the aggregate, at least
an amount which bears the same
relationship to such total amount as
the aggregate amount such local
educational agencies received under
part A of title I for fiscal year 2002
bears to the aggregate amount received
for such fiscal year under such part by
all local educational agencies in the
State;
``(II) award to rural local
educational agencies in the State, in
the aggregate, at least an amount which
bears the same relationship to such
total amount as the aggregate amount
such rural local educational agencies
received under part A of title I for
fiscal year 2001 bears to the aggregate
amount received for such fiscal year
under such part by all local
educational agencies in the State; and
``(III) award the remaining funds
to local educational agencies not
receiving an award under subclause (I)
or (II), including high poverty and
rural local educational agencies that
did not receive such an award.
``(ii) High poverty local educational
agencies.--A local educational agency is
described in this clause if--
``(I) the percentage described in
subparagraph (C)(i) with respect to the
agency is 30 percent or greater; or
``(II) the number of children
described in such subparagraph with
respect to the agency is at least
10,000.
``(C) Criteria for awarding grants.--In awarding
competitive grants under this paragraph, a State
educational agency or State entity shall take into
account the following criteria:
``(i) The percentage of poor children 5 to
17 years of age, inclusive, in a local
educational agency.
``(ii) The need of a local educational
agency for school repair and renovation, as
demonstrated by the condition of its public
school facilities.
``(iii) The fiscal capacity of a local
educational agency to meet its needs for repair
and renovation of public school facilities
without assistance under this section,
including its ability to raise funds through
the use of local bonding capacity and
otherwise.
``(iv) In the case of a local educational
agency that proposes to fund a repair or
renovation project for a charter school or
schools, the extent to which the school or
schools have access to funding for the project
through the financing methods available to
other public schools or local educational
agencies in the State.
``(v) The likelihood that the local
educational agency will maintain, in good
condition, any facility whose repair or
renovation is assisted under this section.
``(D) Possible matching requirement.--
``(i) In general.--A State educational
agency or State entity may require local
educational agencies to match funds awarded
under this subsection.
``(ii) Match amount.--The amount of a match
described in clause (i) may be established by
using a sliding scale that takes into account
the relative poverty of the population served
by the local educational agency.
``(3) Reservation for competitive idea or technology grants
to local educational agencies.--
``(A) In general.--Subject to the reservation under
paragraph (1), of the funds allocated to a State
educational agency under subsection (a)(1)(D), the
State educational agency shall distribute 25 percent of
such funds to local educational agencies through
competitive grant processes, to be used for the
following:
``(i) To carry out activities under part B
of the Individuals with Disabilities Education
Act (20 U.S.C. 1411 et seq.).
``(ii) For technology activities that are
carried out in connection with school repair
and renovation, including--
``(I) wiring;
``(II) acquiring hardware and
software;
``(III) acquiring connectivity
linkages and resources; and
``(IV) acquiring microwave, fiber
optics, cable, and satellite
transmission equipment.
``(B) Criteria for awarding idea grants.--In
awarding competitive grants under subparagraph (A) to
be used to carry out activities under part B of the
Individuals with Disabilities Education Act (20 U.S.C.
1411 et seq.), a State educational agency shall take
into account the following criteria:
``(i) The need of a local educational
agency for additional funds for a student whose
individually allocable cost for expenses
related to the Individuals with Disabilities
Education Act substantially exceeds the State's
average per-pupil expenditure (as defined in
section 14101(2)).
``(ii) The need of a local educational
agency for additional funds for special
education and related services under part B of
the Individuals with Disabilities Education Act
(20 U.S.C. 1411 et seq.).
``(iii) The need of a local educational
agency for additional funds for assistive
technology devices (as defined in section 602
of the Individuals with Disabilities Education
Act (20 U.S.C. 1401)) or assistive technology
services (as so defined) for children being
served under part B of the Individuals with
Disabilities Education Act (20 U.S.C. 1411 et
seq.).
``(iv) The need of a local educational
agency for additional funds for activities
under part B of the Individuals with
Disabilities Education Act (20 U.S.C. 1411 et
seq.) in order for children with disabilities
to make progress toward meeting the performance
goals and indicators established by the State
under section 612(a)(16) of such Act (20 U.S.C.
1412).
``(C) Criteria for awarding technology grants.--In
awarding competitive grants under subparagraph (A) to
be used for technology activities that are carried out
in connection with school repair and renovation, a
State educational agency shall take into account the
need of a local educational agency for additional funds
for such activities, including the need for the
activities described in subclauses (I) through (IV) of
subparagraph (A)(ii).
``(c) Rules Applicable to School Repair and Renovation.--With
respect to funds made available under this section that are used for
school repair and renovation, the following rules shall apply:
``(1) Permissible uses of funds.--School repair and
renovation shall be limited to one or more of the following:
``(A) Emergency repairs or renovations to public
school facilities only to ensure the health and safety
of students and staff, including--
``(i) repairing, replacing, or installing
roofs, electrical wiring, plumbing systems, or
sewage systems;
``(ii) repairing, replacing, or installing
heating, ventilation, or air conditioning
systems (including insulation); and
``(iii) bringing public schools into
compliance with fire and safety codes.
``(B) School facilities modifications necessary to
render public school facilities accessible in order to
comply with the Americans with Disabilities Act of 1990
(42 U.S.C. 12101 et seq.).
``(C) School facilities modifications necessary to
render public school facilities accessible in order to
comply with section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794).
``(D) Asbestos abatement or removal from public
school facilities.
``(E) Renovation, repair, and acquisition needs
related to the building infrastructure of a charter
school.
``(2) Impermissible uses of funds.--No funds received under
this section may be used for--
``(A) payment of maintenance costs in connection
with any projects constructed in whole or part with
Federal funds provided under this section;
``(B) the construction of new facilities, except
for facilities for an impacted local educational agency
(as defined in subsection (a)(3)); or
``(C) stadiums or other facilities primarily used
for athletic contests or exhibitions or other events
for which admission is charged to the general public.
``(3) Charter schools.--A public charter school that
constitutes a local educational agency under State law shall be
eligible for assistance under the same terms and conditions as
any other local educational agency (as defined in section
14101(18)).
``(4) Supplement, not supplant.--Excluding the uses
described in subparagraphs (B) and (C) of paragraph (1), a
local educational agency shall use Federal funds subject to
this subsection only to supplement the amount of funds that
would, in the absence of such Federal funds, be made available
from non-Federal sources for school repair and renovation.
``(d) Special Rule.--Each local educational agency that receives
funds under this section shall ensure that, if it carries out repair or
renovation through a contract, any such contract process ensures the
maximum number of qualified bidders, including small, minority, and
women-owned businesses, through full and open competition.
``(e) Public Comment.--Each local educational agency receiving
funds under paragraph (2) or (3) of subsection (b)--
``(1) shall provide parents, educators, and all other
interested members of the community the opportunity to consult
on the use of funds received under such paragraph;
``(2) shall provide the public with adequate and efficient
notice of the opportunity described in paragraph (1) in a
widely read and distributed medium; and
``(3) shall provide the opportunity described in paragraph
(1) in accordance with any applicable State and local law
specifying how the comments may be received and how the
comments may be reviewed by any member of the public.
``(f) Reporting.--
``(1) Local reporting.--Each local educational agency
receiving funds under subsection (a)(1)(D) shall submit a
report to the State educational agency, at such time as the
State educational agency may require, describing the use of
such funds for--
``(A) school repair and renovation (and
construction, in the case of an impacted local
educational agency (as defined in subsection (a)(3)));
``(B) activities under part B of the Individuals
with Disabilities Education Act (20 U.S.C. 1411 et
seq.); and
``(C) technology activities that are carried out in
connection with school repair and renovation, including
the activities described in subclauses (I) through (IV)
of subsection (b)(3)(A)(ii).
``(2) State reporting.--Each State educational agency shall
submit to the Secretary of Education, not later than December
31, 2003, a report on the use of funds received under
subsection (a)(1)(D) by local educational agencies for--
``(A) school repair and renovation (and
construction, in the case of an impacted local
educational agency (as defined in subsection (a)(3)));
``(B) activities under part B of the Individuals
with Disabilities Education Act (20 U.S.C. 1411 et
seq.); and
``(C) technology activities that are carried out in
connection with school repair and renovation, including
the activities described in subclauses (I) through (IV)
of subsection (b)(3)(A)(ii).
``(3) Additional reports.--Each entity receiving funds
allocated under subsection (a)(1) (A) of (B) shall submit to
the Secretary, not later than December 31, 2003, a report on
its uses of funds under this section, in such form and
containing such information as the Secretary may require.
``(g) Applicability of Part B of IDEA.--If a local educational
agency uses funds received under this section to carry out activities
under part B of the Individuals with Disabilities Education Act (20
U.S.C. 1411 et seq.), such part (including provisions respecting the
participation of private school children), and any other provision of
law that applies to such part, shall apply to such use.
``(h) Reallocation.--If a State educational agency does not apply
for an allocation of funds under subsection (a)(1)(D) for fiscal year
2002, or does not use its entire allocation for such fiscal year, the
Secretary may reallocate the amount of the State educational agency's
allocation (or the remainder thereof, as the case may be) to the
remaining State educational agencies in accordance with subsection
(a)(1)(D).
``(i) Participation of Private Schools.--
``(1) In general.--Section 6402 shall apply to subsection
(b)(2) in the same manner as it applies to activities under
title VI, except that--
``(A) such section shall not apply with respect to
the title to any real property renovated or repaired
with assistance provided under this section;
``(B) the term `services' as used in section 6402
with respect to funds under this section shall be
provided only to private, nonprofit elementary or
secondary schools with a rate of child poverty of at
least 40 percent and may include for purposes of
subsection (b)(2) only--
``(i) modifications of school facilities
necessary to meet the standards applicable to
public schools under the Americans with
Disabilities Act of 1990 (42 U.S.C. 12101 et
seq.);
``(ii) modifications of school facilities
necessary to meet the standards applicable to
public schools under section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794); and
``(iii) asbestos abatement or removal from
school facilities; and
``(C) notwithstanding the requirements of section
6402(b), expenditures for services provided using funds
made available under subsection (b)(2) shall be
considered equal for purposes of such section if the
per-pupil expenditures for services described in
subparagraph (B) for students enrolled in private
nonprofit elementary and secondary schools that have
child poverty rates of at least 40 percent are
consistent with the per-pupil expenditures under this
section for children enrolled in the public schools in the school
district of the local educational agency receiving funds under this
section.
``(2) Remaining funds.--If the expenditure for services
described in paragraph (1)(B) is less than the amount
calculated under paragraph (1)(C) because of insufficient need
for such services, the remainder shall be available to the
local educational agency for renovation and repair of public
school facilities.
``(3) Application.--If any provision of this section, or
the application thereof, to any person or circumstances is
judicially determined to be invalid, the provisions of the
remainder of the section and the application to other persons
or circumstances shall not be affected thereby.
``(j) Definitions.--For purposes of this section:
``(1) Charter school.--The term `charter school' has the
meaning given such term in section 10310(1).
``(2) Poor children and child poverty.--The terms `poor
children' and `child poverty' refer to children 5 to 17 years
of age, inclusive, who are from families with incomes below the
poverty line (as defined by the Office of Management and Budget
and revised annually in accordance with section 673(2) of the
Community Services Block Grant (42 U.S.C. 9902(2)) applicable
to a family of the size involved for the most recent fiscal
year for which data satisfactory to the Secretary are
available.
``(3) Rural local educational agency.--The term `rural
local educational agency' means a local educational agency that
the State determines is located in a rural area using objective
data and a commonly employed definition of the term `rural'.
``(4) State.--The term `State' means each of the 50 states,
the District of Columbia, and the Commonwealth of Puerto Rico.
``(k) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section, $1,600,000,000 for fiscal year
2002, and such sums as may be necessary for each of fiscal years 2003
through 2006.''.
SEC. 312. CHARTER SCHOOL CREDIT ENHANCEMENT INITIATIVE.
Section 10331, as added by section 322 of the Departments of Labor,
Health and Human Services, and Education, and Related Agencies
Appropriations Act, 2001 (as enacted into law by section 1(a)(1) of
Public Law 106-554) is amended by inserting before the period the
following: ``, and such sums as may be necessary for each of fiscal
years 2002 through 2006''.
CHAPTER 2--SCHOOL CONSTRUCTION
SEC. 321. SHORT TITLE.
This chapter may be cited as the ``America's Better Classrooms Act
of 2001''.
SEC. 322. EXPANSION OF INCENTIVES FOR PUBLIC SCHOOLS.
(a) In General.--Chapter 1 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subchapter:
``Subchapter X--Public School Modernization Provisions
``Sec. 1400F. Credit to holders of
qualified public school
modernization bonds.
``Sec. 1400G. Qualified school
construction bonds.
``Sec. 1400H. Qualified zone academy
bonds.
``SEC. 1400F. CREDIT TO HOLDERS OF QUALIFIED PUBLIC SCHOOL
MODERNIZATION BONDS.
``(a) Allowance of Credit.--In the case of a taxpayer who holds a
qualified public school modernization bond on a credit allowance date
of such bond which occurs during the taxable year, there shall be
allowed as a credit against the tax imposed by this chapter for such
taxable year an amount equal to the sum of the credits determined under
subsection (b) with respect to credit allowance dates during such year
on which the taxpayer holds such bond.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance date
for a qualified public school modernization bond is 25 percent
of the annual credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any qualified public school modernization bond is
the product of--
``(A) the applicable credit rate, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Applicable credit rate.--For purposes of paragraph
(1), the applicable credit rate with respect to an issue is the
rate equal to an average market yield (as of the day before the
date of issuance of the issue) on outstanding long-term
corporate debt obligations (determined under regulations
prescribed by the Secretary).
``(4) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period ending
on a credit allowance date, the amount of the credit determined
under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise
determined based on the portion of the 3-month period during
which the bond is outstanding. A similar rule shall apply when
the bond is redeemed.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under part
IV of subchapter A (other than subpart C thereof,
relating to refundable credits).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the credit
allowable under subsection (a) for such taxable year.
``(d) Qualified Public School Modernization Bond; Credit Allowance
Date.--For purposes of this section--
``(1) Qualified public school modernization bond.--The term
`qualified public school modernization bond' means--
``(A) a qualified zone academy bond, and
``(B) a qualified school construction bond.
``(2) Credit allowance date.--The term `credit allowance
date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(e) Other Definitions.--For purposes of this subchapter--
``(1) Local educational agency.--The term `local
educational agency' has the meaning given to such term by
section 14101 of the Elementary and Secondary Education Act of
1965. Such term includes the local educational agency that
serves the District of Columbia but does not include any other
State agency.
``(2) Bond.--The term `bond' includes any obligation.
``(3) State.--The term `State' includes the District of
Columbia and any possession of the United States.
``(4) Public school facility.--The term `public school
facility' shall not include--
``(A) any stadium or other facility primarily used
for athletic contests or exhibitions or other events
for which admission is charged to the general public,
or
``(B) any facility which is not owned by a State or
local government or any agency or instrumentality of a
State or local government.
``(f) Credit Included in Gross Income.--Gross income includes the
amount of the credit allowed to the taxpayer under this section
(determined without regard to subsection (c)) and the amount so
included shall be treated as interest income.
``(g) Bonds Held by Regulated Investment Companies.--If any
qualified public school modernization bond is held by a regulated
investment company, the credit determined under subsection (a) shall be
allowed to shareholders of such company under procedures prescribed by
the Secretary.
``(h) Credits May Be Stripped.--Under regulations prescribed by the
Secretary--
``(1) In general.--There may be a separation (including at
issuance) of the ownership of a qualified public school
modernization bond and the entitlement to the credit under this
section with respect to such bond. In case of any such
separation, the credit under this section shall be allowed to
the person who on the credit allowance date holds the
instrument evidencing the entitlement to the credit and not to
the holder of the bond.
``(2) Certain rules to apply.--In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified public school modernization bond as if
it were a stripped bond and to the credit under this section as
if it were a stripped coupon.
``(i) Treatment for Estimated Tax Purposes.--Solely for purposes of
sections 6654 and 6655, the credit allowed by this section to a
taxpayer by reason of holding a qualified public school modernization
bonds on a credit allowance date shall be treated as if it were a
payment of estimated tax made by the taxpayer on such date.
``(j) Credit May Be Transferred.--Nothing in any law or rule of law
shall be construed to limit the transferability of the credit allowed
by this section through sale and repurchase agreements.
``(k) Reporting.--Issuers of qualified public school modernization
bonds shall submit reports similar to the reports required under
section 149(e).
``(l) Termination.--This section shall not apply to any bond issued
after September 30, 2006.
``SEC. 1400G. QUALIFIED SCHOOL CONSTRUCTION BONDS.
``(a) Qualified School Construction Bond.--For purposes of this
subchapter, the term `qualified school construction bond' means any
bond issued as part of an issue if--
``(1) 95 percent or more of the proceeds of such issue are
to be used for the construction, rehabilitation, or repair of a
public school facility or for the acquisition of land on which
such a facility is to be constructed with part of the proceeds
of such issue,
``(2) the bond is issued by a State or local government
within the jurisdiction of which such school is located,
``(3) the issuer designates such bond for purposes of this
section, and
``(4) the term of each bond which is part of such issue
does not exceed 15 years.
``(b) Limitation on Amount of Bonds Designated.--The maximum
aggregate face amount of bonds issued during any calendar year which
may be designated under subsection (a) by any issuer shall not exceed
the sum of--
``(1) the limitation amount allocated under subsection (d)
for such calendar year to such issuer, and
``(2) if such issuer is a large local educational agency
(as defined in subsection (e)(4)) or is issuing on behalf of
such an agency, the limitation amount allocated under
subsection (e) for such calendar year to such agency.
``(c) National Limitation on Amount of Bonds Designated.--There is
a national qualified school construction bond limitation for each
calendar year. Such limitation is--
``(1) $11,000,000,000 for 2002,
``(2) $11,000,000,000 for 2003, and
``(3) except as provided in subsection (f), zero after
2003.
``(d) 60 Percent of Limitation Allocated Among States.--
``(1) In general.--60 percent of the limitation applicable
under subsection (c) for any calendar year shall be allocated
by the Secretary among the States in proportion to the respective
numbers of children in each State who have attained age 5 but not age
18 for the most recent fiscal year ending before such calendar year.
The limitation amount allocated to a State under the preceding sentence
shall be allocated by the State to issuers within such State and such
allocations may be made only if there is an approved State application.
``(2) Minimum allocations to states.--
``(A) In general.--The Secretary shall adjust the
allocations under this subsection for any calendar year
for each State to the extent necessary to ensure that
the sum of--
``(i) the amount allocated to such State
under this subsection for such year, and
``(ii) the aggregate amounts allocated
under subsection (e) to large local educational
agencies in such State for such year,
is not less than an amount equal to such State's
minimum percentage of the amount to be allocated under
paragraph (1) for the calendar year.
``(B) Minimum percentage.--A State's minimum
percentage for any calendar year is the minimum
percentage described in section 1124(d) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6334(d)) for such State for the most recent
fiscal year ending before such calendar year.
``(3) Allocations to certain possessions.--The amount to be
allocated under paragraph (1) to any possession of the United
States other than Puerto Rico shall be the amount which would
have been allocated if all allocations under paragraph (1) were
made on the basis of respective populations of individuals
below the poverty line (as defined by the Office of Management
and Budget). In making other allocations, the amount to be
allocated under paragraph (1) shall be reduced by the aggregate
amount allocated under this paragraph to possessions of the
United States.
``(4) Allocations for indian schools.--The provisions of
section 1400J shall apply with respect to the construction,
rehabilitation, and repair of schools funded by the Bureau of
Indian Affairs. No funds may be allocated under this section
for such schools.
``(5) Approved state application.--For purposes of
paragraph (1), the term `approved State application' means an
application which is approved by the Secretary of Education and
which includes--
``(A) the results of a recent publicly-available
survey (undertaken by the State with the involvement of
local education officials, members of the public, and
experts in school construction and management) of such
State's needs for public school facilities, including
descriptions of--
``(i) health and safety problems at such
facilities,
``(ii) the capacity of public schools in
the State to house projected enrollments, and
``(iii) the extent to which the public
schools in the State offer the physical
infrastructure needed to provide a high-quality
education to all students, and
``(B) a description of how the State will allocate
to local educational agencies, or otherwise use, its
allocation under this subsection to address the needs
identified under subparagraph (A), including a
description of how it will--
``(i) ensure that the needs of both rural
and urban areas will be recognized,
``(ii) give highest priority to localities
with the greatest needs, as demonstrated by
inadequate school facilities coupled with a low
level of resources to meet those needs,
``(iii) use its allocation under this
subsection to assist localities that lack the
fiscal capacity to issue bonds on their own,
and
``(iv) ensure that its allocation under
this subsection is used only to supplement, and
not supplant, the amount of school
construction, rehabilitation, and repair in the
State that would have occurred in the absence
of such allocation.
Any allocation under paragraph (1) by a State shall be binding
if such State reasonably determined that the allocation was in
accordance with the plan approved under this paragraph.
``(e) 40 Percent of Limitation Allocated Among Largest School
Districts.--
``(1) In general.--40 percent of the limitation applicable
under subsection (c) for any calendar year shall be allocated
under paragraph (2) by the Secretary among local educational
agencies which are large local educational agencies for such
year. No qualified school construction bond may be issued by
reason of an allocation to a large local educational agency
under the preceding sentence unless such agency has an approved
local application.
``(2) Allocation formula.--The amount to be allocated under
paragraph (1) for any calendar year shall be allocated among
large local educational agencies in proportion to the
respective amounts each such agency received for Basic Grants
under subpart 2 of part A of title I of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6331 et seq.) for
the most recent fiscal year ending before such calendar year.
``(3) Allocation of unused limitation to state.--The amount
allocated under this subsection to a large local educational
agency for any calendar year may be reallocated by such agency
to the State in which such agency is located for such calendar
year. Any amount reallocated to a State under the preceding
sentence may be allocated as provided in subsection (d)(1).
``(4) Large local educational agency.--For purposes of this
section, the term `large local educational agency' means, with
respect to a calendar year, any local educational agency if
such agency is--
``(A) among the 100 local educational agencies with
the largest numbers of children aged 5 through 17 from
families living below the poverty level, as determined
by the Secretary using the most recent data available
from the Department of Commerce that are satisfactory
to the Secretary, or
``(B) 1 of not more than 25 local educational
agencies (other than those described in subparagraph
(A)) that the Secretary of Education determines (based
on the most recent data available satisfactory to the
Secretary) are in particular need of assistance, based
on a low level of resources for school construction, a
high level of enrollment growth, or such other factors
as the Secretary deems appropriate.
``(5) Approved local application.--For purposes of
paragraph (1), the term `approved local application' means an
application which is approved by the Secretary of Education and
which includes--
``(A) the results of a recent publicly-available
survey (undertaken by the local educational agency or
the State with the involvement of school officials,
members of the public, and experts in school
construction and management) of such agency's needs for
public school facilities, including descriptions of--
``(i) the overall condition of the local
educational agency's school facilities,
including health and safety problems,
``(ii) the capacity of the agency's schools
to house projected enrollments, and
``(iii) the extent to which the agency's
schools offer the physical infrastructure
needed to provide a high-quality education to
all students,
``(B) a description of how the local educational
agency will use its allocation under this subsection to
address the needs identified under subparagraph (A),
and
``(C) a description of how the local educational
agency will ensure that its allocation under this
subsection is used only to supplement, and not
supplant, the amount of school construction,
rehabilitation, or repair in the locality that would
have occurred in the absence of such allocation.
A rule similar to the rule of the last sentence of subsection
(d)(6) shall apply for purposes of this paragraph.
``(f) Carryover of Unused Limitation.--If for any calendar year--
``(1) the amount allocated under subsection (d) to any
State, exceeds
``(2) the amount of bonds issued during such year which are
designated under subsection (a) pursuant to such allocation,
the limitation amount under such subsection for such State for the
following calendar year shall be increased by the amount of such
excess. A similar rule shall apply to the amounts allocated under
subsection (d)(5) or (e).
``(g) Special Rules Relating to Arbitrage.--
``(1) In general.--A bond shall not be treated as failing
to meet the requirement of subsection (a)(1) solely by reason
of the fact that the proceeds of the issue of which such bond
is a part are invested for a temporary period (but not more
than 36 months) until such proceeds are needed for the purpose
for which such issue was issued.
``(2) Binding commitment requirement.--Paragraph (1) shall
apply to an issue only if, as of the date of issuance, there is
a reasonable expectation that--
``(A) at least 10 percent of the proceeds of the
issue will be spent within the 6-month period beginning
on such date for the purpose for which such issue was
issued, and
``(B) the remaining proceeds of the issue will be
spent with due diligence for such purpose.
``(3) Earnings on proceeds.--Any earnings on proceeds
during the temporary period shall be treated as proceeds of the
issue for purposes of applying subsection (a)(1) and paragraph
(1) of this subsection.
``SEC. 1400H. QUALIFIED ZONE ACADEMY BONDS.
``(a) Qualified Zone Academy Bond.--For purposes of this
subchapter--
``(1) In general.--The term `qualified zone academy bond'
means any bond issued as part of an issue if--
``(A) 95 percent or more of the proceeds of such
issue are to be used for a qualified purpose with
respect to a qualified zone academy established by a
local educational agency,
``(B) the bond is issued by a State or local
government within the jurisdiction of which such
academy is located,
``(C) the issuer--
``(i) designates such bond for purposes of
this section,
``(ii) certifies that it has written
assurances that the private business
contribution requirement of paragraph (2) will
be met with respect to such academy, and
``(iii) certifies that it has the written
approval of the local educational agency for
such bond issuance, and
``(D) the term of each bond which is part of such
issue does not exceed 15 years.
Rules similar to the rules of section 1400G(g) shall apply for
purposes of paragraph (1).
``(2) Private business contribution requirement.--
``(A) In general.--For purposes of paragraph (1),
the private business contribution requirement of this
paragraph is met with respect to any issue if the local
educational agency that established the qualified zone
academy has written commitments from private entities
to make qualified contributions having a present value
(as of the date of issuance of the issue) of not less
than 10 percent of the proceeds of the issue.
``(B) Qualified contributions.--For purposes of
subparagraph (A), the term `qualified contribution'
means any contribution (of a type and quality
acceptable to the local educational agency) of--
``(i) equipment for use in the qualified
zone academy (including state-of-the-art
technology and vocational equipment),
``(ii) technical assistance in developing
curriculum or in training teachers in order to
promote appropriate market driven technology in
the classroom,
``(iii) services of employees as volunteer
mentors,
``(iv) internships, field trips, or other
educational opportunities outside the academy
for students, or
``(v) any other property or service
specified by the local educational agency.
``(3) Qualified zone academy.--The term `qualified zone
academy' means any public school (or academic program within a
public school) which is established by and operated under the
supervision of a local educational agency to provide education
or training below the postsecondary level if--
``(A) such public school or program (as the case
may be) is designed in cooperation with business to
enhance the academic curriculum, increase graduation
and employment rates, and better prepare students for
the rigors of college and the increasingly complex
workforce,
``(B) students in such public school or program (as
the case may be) will be subject to the same academic
standards and assessments as other students educated by
the local educational agency,
``(C) the comprehensive education plan of such
public school or program is approved by the local
educational agency, and
``(D)(i) such public school is located in an
empowerment zone or enterprise community (including any
such zone or community designated after the date of the
enactment of this section), or
``(ii) there is a reasonable expectation (as of the
date of issuance of the bonds) that at least 35 percent
of the students attending such school or participating
in such program (as the case may be) will be eligible
for free or reduced-cost lunches under the school lunch
program established under the National School Lunch
Act.
``(4) Qualified purpose.--The term `qualified purpose'
means, with respect to any qualified zone academy--
``(A) constructing, rehabilitating, or repairing
the public school facility in which the academy is
established,
``(B) acquiring the land on which such facility is
to be constructed with part of the proceeds of such
issue,
``(C) providing equipment for use at such academy,
``(D) developing course materials for education to
be provided at such academy, and
``(E) training teachers and other school personnel
in such academy.
``(b) Limitations on Amount of Bonds Designated.--
``(1) In general.--There is a national zone academy bond
limitation for each calendar year. Such limitation is--
``(A) $400,000,000 for 1999,
``(B) $400,000,000 for 2000,
``(C) $400,000,000 for 2001,
``(D) $1,400,000,000 for 2002,
``(E) $1,400,000,000 for 2003, and
``(F) except as provided in paragraph (3), zero
after 2003.
``(2) Allocation of limitation.--
``(A) Allocation among states.--
``(i) 1999, 2000, and 2001 limitations.--
The national zone academy bond limitations for
calendar years 1999, 2000, and 2001 shall be
allocated by the Secretary among the States on
the basis of their respective populations of
individuals below the poverty line (as defined
by the Office of Management and Budget).
``(ii) Limitation after 2001.--The national
zone academy bond limitation for any calendar
year after 2001 shall be allocated by the
Secretary among the States in proportion to the
respective amounts each such State received for
Basic Grants under subpart 2 of part A of title
I of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6331 et seq.) for the most
recent fiscal year ending before such calendar
year.
``(B) Allocation to local educational agencies.--
The limitation amount allocated to a State under
subparagraph (A) shall be allocated by the State to
qualified zone academies within such State.
``(C) Designation subject to limitation amount.--
The maximum aggregate face amount of bonds issued
during any calendar year which may be designated under
subsection (a) with respect to any qualified zone
academy shall not exceed the limitation amount
allocated to such academy under subparagraph (B) for
such calendar year.
``(3) Carryover of unused limitation.--If for any calendar
year--
``(A) the limitation amount under this subsection
for any State, exceeds
``(B) the amount of bonds issued during such year
which are designated under subsection (a) (or the
corresponding provisions of prior law) with respect to
qualified zone academies within such State,
the limitation amount under this subsection for such State for
the following calendar year shall be increased by the amount of
such excess.''
(b) Reporting.--Subsection (d) of section 6049 of such Code
(relating to returns regarding payments of interest) is amended by
adding at the end the following new paragraph:
``(8) Reporting of credit on qualified public school
modernization bonds.--
``(A) In general.--For purposes of subsection (a),
the term `interest' includes amounts includible in
gross income under section 1400F(f) and such amounts
shall be treated as paid on the credit allowance date
(as defined in section 1400F(d)(2)).
``(B) Reporting to corporations, etc.--Except as
otherwise provided in regulations, in the case of any
interest described in subparagraph (A) of this
paragraph, subsection (b)(4) of this section shall be
applied without regard to subparagraphs (A), (H), (I),
(J), (K), and (L)(i).
``(C) Regulatory authority.--The Secretary may
prescribe such regulations as are necessary or
appropriate to carry out the purposes of this
paragraph, including regulations which require more
frequent or more detailed reporting.''
(c) Conforming Amendments.--
(1) Subchapter U of chapter 1 of such Code is amended by
striking part IV, by redesignating part V as part IV, and by
redesignating section 1397F as section 1397E.
(2) The table of subchapters for chapter 1 of such Code is
amended by adding at the end the following new item:
``Subchapter X. Public school
modernization provisions.''
(3) The table of parts of subchapter U of chapter 1 of such
Code is amended by striking the last 2 items and inserting the
following item:
``Part IV. Regulations.''
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
obligations issued after December 31, 2001.
(2) Repeal of restriction on zone academy bond holders.--In
the case of bonds to which section 1397E of the Internal
Revenue Code of 1986 (as in effect before the date of the
enactment of this Act) applies, the limitation of such section
to eligible taxpayers (as defined in subsection (d)(6) of such
section) shall not apply after the date of the enactment of
this Act.
SEC. 323. APPLICATION OF CERTAIN LABOR STANDARDS ON CONSTRUCTION
PROJECTS FINANCED UNDER PUBLIC SCHOOL MODERNIZATION
PROGRAM.
Section 439 of the General Education Provisions Act (relating to
labor standards) is amended--
(1) by inserting ``(a)'' before ``All laborers and
mechanics'', and
(2) by adding at the end the following:
``(b)(1) For purposes of this section, the term `applicable
program' also includes the qualified zone academy bond provisions
enacted by section 226 of the Taxpayer Relief Act of 1997 and the
program established by section 322 of the America's Better Classroom
Act of 2001.
``(2) A State or local government participating in a program
described in paragraph (1) shall--
``(A) in the awarding of contracts, give priority to
contractors with substantial numbers of employees residing in
the local education area to be served by the school being
constructed; and
``(B) include in the construction contract for such school
a requirement that the contractor give priority in hiring new
workers to individuals residing in such local education area.
``(3) In the case of a program described in paragraph (1), nothing
in this subsection or subsection (a) shall be construed to deny any tax
credit allowed under such program. If amounts are required to be
withheld from contractors to pay wages to which workers are entitled,
such amounts shall be treated as expended for construction purposes in
determining whether the requirements of such program are met.''.
SEC. 324. EMPLOYMENT AND TRAINING ACTIVITIES RELATING TO CONSTRUCTION
OR RECONSTRUCTION OF PUBLIC SCHOOL FACILITIES.
(a) In General.--Section 134 of the Workforce Investment Act of
1998 (29 U.S.C. 2864) is amended by adding at the end the following:
``(f) Local Employment and Training Activities Relating to
Construction or Reconstruction of Public School Facilities.--
``(1) In general.--In order to provide training services
related to construction or reconstruction of public school
facilities receiving funding assistance under an applicable
program, each State shall establish a specialized program of
training meeting the following requirements:
``(A) The specialized program provides training for
jobs in the construction industry.
``(B) The program provides trained workers for
projects for the construction or reconstruction of
public school facilities receiving funding assistance
under an applicable program.
``(C) The program ensures that skilled workers
(residing in the area to be served by the school
facilities) will be available for the construction or
reconstruction work.
``(2) Coordination.--The specialized program established
under paragraph (1) shall be integrated with other activities
under this Act, with the activities carried out under the
National Apprenticeship Act of 1937 by the State Apprenticeship
Council or through the Bureau of Apprenticeship and Training in
the Department of Labor, as appropriate, and with activities
carried out under the Carl D. Perkins Vocational and Technical
Education Act of 1998. Nothing in this subsection shall be
construed to require services duplicative of those referred to
in the preceding sentence.
``(3) Applicable program.--In this subsection, the term
`applicable program' has the meaning given the term in section
439(b) of the General Education Provisions Act (relating to
labor standards).''.
(b) State Plan.--Section 112(b)(17)(A) of the Workforce Investment
Act of 1998 (29 U.S.C. 2822(b)(17)(A)) is amended--
(1) in clause (iii), by striking ``and'' at the end;
(2) by redesignating clause (iv) as clause (v); and
(3) by inserting after clause (iii) the following:
``(iv) how the State will establish and
carry out a specialized program of training
under section 134(f); and''.
SEC. 325. INDIAN SCHOOL CONSTRUCTION.
(a) Definitions.--In this section:
(1) Bureau.--The term ``Bureau'' means the Bureau of Indian
Affairs of the Department of the Interior.
(2) Indian.--The term ``Indian'' means any individual who
is a member of a tribe.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(4) Tribal school.--The term ``tribal school'' means an
elementary school, secondary school, or dormitory that is
operated by a tribal organization or the Bureau for the
education of Indian children and that receives financial
assistance for its operation under an appropriation for the
Bureau under section 102, 103(a), or 208 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450f,
450h(a), and 458d) or under the Tribally Controlled Schools Act
of 1988 (25 U.S.C. 2501 et seq.) under a contract, a grant, or
an agreement, or for a Bureau-operated school.
(5) Tribe.--The term ``tribe'' has the meaning given the
term ``Indian tribal government'' by section 7701(a)(40) of the
Internal Revenue Code of 1986, including the application of
section 7871(d) of such Code. Such term includes any consortium
of tribes approved by the Secretary.
(b) Issuance of Bonds.--
(1) In general.--The Secretary shall establish a pilot
program under which eligible tribes have the authority to issue
qualified tribal school modernization bonds to provide funding
for the construction, rehabilitation, or repair of tribal
schools, including the advance planning and design thereof.
(2) Eligibility.--
(A) In general.--To be eligible to issue any
qualified tribal school modernization bond under the
program under paragraph (1), a tribe shall--
(i) prepare and submit to the Secretary a
plan of construction that meets the
requirements of subparagraph (B);
(ii) provide for quarterly and final
inspection of the project by the Bureau; and
(iii) pledge that the facilities financed
by such bond will be used primarily for
elementary and secondary educational purposes
for not less than the period such bond remains
outstanding.
(B) Plan of construction.--A plan of construction
meets the requirements of this subparagraph if such
plan--
(i) contains a description of the
construction to be undertaken with
funding provided under a qualified tribal school modernization bond;
(ii) demonstrates that a comprehensive
survey has been undertaken concerning the
construction needs of the tribal school
involved;
(iii) contains assurances that funding
under the bond will be used only for the
activities described in the plan;
(iv) contains response to the evaluation
criteria contained in Instructions and
Application for Replacement School
Construction, Revision 6, dated February 6,
1999; and
(v) contains any other reasonable and
related information determined appropriate by
the Secretary.
(C) Priority.--In determining whether a tribe is
eligible to participate in the program under this
subsection, the Secretary shall give priority to tribes
that, as demonstrated by the relevant plans of
construction, will fund projects--
(i) described in the Education Facilities
Replacement Construction Priorities List as of
FY 2000 of the Bureau of Indian Affairs (65
Fed. Reg. 4623-4624);
(ii) described in any subsequent priorities
list published in the Federal Register; or
(iii) which meet the criteria for ranking
schools as described in Instructions and
Application for Replacement School
Construction, Revision 6, dated February 6,
1999.
(D) Advance planning and design funding.--A tribe
may propose in its plan of construction to receive
advance planning and design funding from the tribal
school modernization escrow account established under
paragraph (6)(B). Before advance planning and design
funds are allocated from the escrow account, the tribe
shall agree to issue qualified tribal school
modernization bonds after the receipt of such funds and
agree as a condition of each bond issuance that the
tribe will deposit into such account or a fund managed
by the trustee as described in paragraph (4)(C) an
amount equal to the amount of such funds received from
the escrow account.
(3) Permissible activities.--In addition to the use of
funds permitted under paragraph (1), a tribe may use amounts
received through the issuance of a qualified tribal school
modernization bond to--
(A) enter into and make payments under contracts
with licensed and bonded architects, engineers, and
construction firms in order to determine the needs of
the tribal school and for the design and engineering of
the school;
(B) enter into and make payments under contracts
with financial advisors, underwriters, attorneys,
trustees, and other professionals who would be able to
provide assistance to the tribe in issuing bonds; and
(C) carry out other activities determined
appropriate by the Secretary.
(4) Bond trustee.--
(A) In general.--Notwithstanding any other
provision of law, any qualified tribal school
modernization bond issued by a tribe under this
subsection shall be subject to a trust agreement
between the tribe and a trustee.
(B) Trustee.--Any bank or trust company that meets
requirements established by the Secretary may be
designated as a trustee under subparagraph (A).
(C) Content of trust agreement.--A trust agreement
entered into by a tribe under this paragraph shall
specify that the trustee, with respect to any bond
issued under this subsection shall--
(i) act as a repository for the proceeds of
the bond;
(ii) make payments to bondholders;
(iii) receive, as a condition to the
issuance of such bond, a transfer of funds from
the tribal school modernization escrow account
established under paragraph (6)(B) or from
other funds furnished by or on behalf of the
tribe in an amount, which together with
interest earnings from the investment of such
funds in obligations of or fully guaranteed by
the United States or from other investments
authorized by paragraph (10), will produce
moneys sufficient to timely pay in full the
entire principal amount of such bond on the
stated maturity date therefore;
(iv) invest the funds received pursuant to
clause (iii) as provided by such clause; and
(v) hold and invest the funds in a
segregated fund or account under the agreement,
which fund or account shall be applied solely
to the payment of the costs of items described
in paragraph (3).
(D) Requirements for making direct payments.--
(i) In general.--Notwithstanding any other
provision of law, the trustee shall make any
payment referred to in subparagraph (C)(v) in
accordance with requirements that the tribe
shall prescribe in the trust agreement entered
into under subparagraph (C). Before making a
payment to a contractor under subparagraph
(C)(v), the trustee shall require an inspection
of the project by a local financial institution
or an independent inspecting architect or
engineer, to ensure the completion of the
project.
(ii) Contracts.--Each contract referred to
in paragraph (3) shall specify, or be
renegotiated to specify, that payments under the contract shall be made
in accordance with this paragraph.
(5) Payments of principal and interest.--
(A) Principal.--No principal payments on any
qualified tribal school modernization bond shall be
required until the final, stated maturity of such bond,
which stated maturity shall be within 15 years from the
date of issuance. Upon the expiration of such period,
the entire outstanding principal under the bond shall
become due and payable.
(B) Interest.--In lieu of interest on a qualified
tribal school modernization bond there shall be awarded
a tax credit under section 1400F of the Internal
Revenue Code of 1986.
(6) Bond guarantees.--
(A) In general.--Payment of the principal portion
of a qualified tribal school modernization bond issued
under this subsection shall be guaranteed solely by
amounts deposited with each respective bond trustee as
described in paragraph (4)(C)(iii).
(B) Establishment of account.--
(i) In general.--Notwithstanding any other
provision of law, beginning in fiscal year
2002, from amounts made available for school
replacement under the construction account of
the Bureau, the Secretary is authorized to
deposit not more than $30,000,000 each fiscal
year into a tribal school modernization escrow
account.
(ii) Payments.--The Secretary shall use any
amounts deposited in the escrow account under
clauses (i) and (iii) to make payments to
trustees appointed and acting pursuant to
paragraph (4) or to make payments described in
paragraph (2)(D).
(iii) Transfers of excess proceeds.--Excess
proceeds held under any trust agreement that
are not needed for any of the purposes
described in clauses (iii) and (v) of paragraph
(4)(C) shall be transferred, from time to time,
by the trustee for deposit into the tribal
school modernization escrow account.
(7) Limitations.--
(A) Obligation to repay.--Notwithstanding any other
provision of law, the principal amount on any qualified
tribal school modernization bond issued under this
subsection shall be repaid only to the extent of any
escrowed funds furnished under paragraph (4)(C)(iii).
No qualified tribal school modernization bond issued by
a tribe shall be an obligation of, nor shall payment of
the principal thereof be guaranteed by, the United
States.
(B) Land and facilities.--Any land or facilities
purchased or improved with amounts derived from
qualified tribal school modernization bonds issued
under this subsection shall not be mortgaged or used as
collateral for such bonds.
(8) Sale of bonds.--Qualified tribal school modernization
bonds may be sold at a purchase price equal to, in excess of,
or at a discount from the par amount thereof.
(9) Treatment of trust agreement earnings.--Any amounts
earned through the investment of funds under the control of a
trustee under any trust agreement described in paragraph (4)
shall not be subject to Federal income tax.
(10) Investment of sinking funds.--Any sinking fund
established for the purpose of the payment of principal on a
qualified tribal school modernization bond shall be invested in
obligations issued by or guaranteed by the United States or in
such other assets as the Secretary of the Treasury may by
regulation allow.
(c) Expansion of Incentives for Tribal Schools.--Chapter 1 of the
Internal Revenue Code of 1986 (as amended by section 322) is further
amended by adding at the end the following new subchapter:
``Subchapter XI--Tribal School Modernization Provisions
``Sec. 1400J. Credit to holders of qualified tribal school
modernization bonds.
``SEC. 1400J. CREDIT TO HOLDERS OF QUALIFIED TRIBAL SCHOOL
MODERNIZATION BONDS.
``(a) Allowance of Credit.--In the case of a taxpayer who holds a
qualified tribal school modernization bond on a credit allowance date
of such bond which occurs during the taxable year, there shall be
allowed as a credit against the tax imposed by this chapter for such
taxable year an amount equal to the sum of the credits determined under
subsection (b) with respect to credit allowance dates during such year
on which the taxpayer holds such bond.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance date
for a qualified tribal school modernization bond is 25 percent
of the annual credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any qualified tribal school modernization bond is
the product of--
``(A) the applicable credit rate, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Applicable credit rate.--For purposes of paragraph
(1), the applicable credit rate with respect to an issue is the
rate equal to an average market yield (as of the date of sale
of the issue) on outstanding long-term corporate obligations
(as determined by the Secretary).
``(4) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period ending
on a credit allowance date, the amount of the credit determined
under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise
determined based on the portion of the 3-month period during
which the bond is outstanding. A similar rule shall apply when
the bond is redeemed.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under part
IV of subchapter A (other than subpart C thereof,
relating to refundable credits).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the credit
allowable under subsection (a) for such taxable year.
``(d) Qualified Tribal School Modernization Bond; Other
Definitions.--For purposes of this section--
``(1) Qualified tribal school modernization bond.--
``(A) In general.--The term `qualified tribal
school modernization bond' means, subject to
subparagraph (B), any bond issued as part of an issue
under section 2(c) of the Indian School Construction
Act, as in effect on the date of the enactment of this
section, if--
``(i) 95 percent or more of the proceeds of
such issue are to be used for the construction,
rehabilitation, or repair of a school facility
funded by the Bureau of Indian Affairs of the
Department of the Interior or for the
acquisition of land on which such a facility is
to be constructed with part of the proceeds of
such issue,
``(ii) the bond is issued by a tribe,
``(iii) the issuer designates such bond for
purposes of this section, and
``(iv) the term of each bond which is part
of such issue does not exceed 15 years.
``(B) National limitation on amount of bonds
designated.--
``(i) National limitation.--There is a
national qualified tribal school modernization
bond limitation for each calendar year. Such
limitation is--
``(I) $200,000,000 for 2002,
``(II) $200,000,000 for 2003, and
``(III) zero after 2003.
``(ii) Allocation of limitation.--The
national qualified tribal school modernization
bond limitation shall be allocated to tribes by
the Secretary of the Interior subject to the
provisions of section 2 of the Indian School
Construction Act, as in effect on the date of
the enactment of this section.
``(iii) Designation subject to limitation
amount.--The maximum aggregate face amount of
bonds issued during any calendar year which may
be designated under subsection (d)(1) with
respect to any tribe shall not exceed the
limitation amount allocated to such government
under clause (ii) for such calendar year.
``(iv) Carryover of unused limitation.--If
for any calendar year--
``(I) the limitation amount under
this subparagraph, exceeds
``(II) the amount of qualified
tribal school modernization bonds
issued during such year,
the limitation amount under this subparagraph
for the following calendar year shall be
increased by the amount of such excess. The
preceding sentence shall not apply if such
following calendar year is after 2010.
``(2) Credit allowance date.--The term `credit allowance
date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(3) Bond.--The term `bond' includes any obligation.
``(4) Tribe.--The term ``tribe'' has the meaning given the
term ``Indian tribal government'' by section 7701(a)(40),
including the application of section 7871(d). Such term
includes any consortium of tribes approved by the Secretary of
the Interior.
``(e) Credit Included in Gross Income.--Gross income includes the
amount of the credit allowed to the taxpayer under this section
(determined without regard to subsection (c)) and the amount so
included shall be treated as interest income.
``(f) Bonds Held by Regulated Investment Companies.--If any
qualified tribal school modernization bond is held by a regulated
investment company, the credit determined under subsection (a) shall be
allowed to shareholders of such company under procedures prescribed by
the Secretary.
``(g) Credits May Be Stripped.--Under regulations prescribed by the
Secretary--
``(1) In general.--There may be a separation (including at
issuance) of the ownership of a qualified tribal school
modernization bond and the entitlement to the credit under this
section with respect to such bond. In case of any such
separation, the credit under this section shall be allowed to
the person who on the credit allowance date holds the
instrument evidencing the entitlement to the credit and not to
the holder of the bond.
``(2) Certain rules to apply.--In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified tribal school modernization bond as if
it were a stripped bond and to the credit under this section as
if it were a stripped coupon.
``(h) Treatment for Estimated Tax Purposes.--Solely for purposes of
sections 6654 and 6655, the credit allowed by this section to a
taxpayer by reason of holding a qualified tribal school modernization
bonds on a credit allowance date shall be treated as if it were a
payment of estimated tax made by the taxpayer on such date.
``(i) Credit May Be Transferred.--Nothing in any law or rule of law
shall be construed to limit the transferability of the credit allowed
by this section through sale and repurchase agreements.
``(j) Credit Treated as Allowed Under Part IV of Subchapter A.--For
purposes of subtitle F, the credit allowed by this section shall be
treated as a credit allowable under part IV of subchapter A of this
chapter.
``(k) Reporting.--Issuers of qualified tribal school modernization
bonds shall submit reports similar to the reports required under
section 149(e).''.
(d) Additional Provisions.--
(1) Sovereign immunity.--This section and the amendments
made by this section shall not be construed to impact, limit,
or affect the sovereign immunity of the Federal Government or
any State or tribal government.
(2) Application.--This section and the amendments made by
this section shall take effect on the date of the enactment of
this Act with respect to bonds issued after December 31, 2001,
regardless of the status of regulations promulgated thereunder.
CHAPTER 3--21ST CENTURY COMMUNITY LEARNING CENTERS
SEC. 331. REAUTHORIZATION.
Section 10907 (20 U.S.C. 8247) is amended by striking ``$20,000,000
for fiscal year 1995'' and all that follows through the period and
inserting ``$1,000,000,000 for each of fiscal years 2002 through 2006,
to carry out this part.''.
CHAPTER 4--ENHANCEMENT OF BASIC LEARNING SKILLS
SEC. 341. REDUCING CLASS SIZE.
Title X (20 U.S.C. 8001 et seq.), as amended by section 311, is
further amended by adding at the end the following:
``PART M--CLASS SIZE REDUCTION
``SEC. 10998. GRANTS FOR CLASS SIZE REDUCTION.
``(a) In General.--From the amount appropriated for a fiscal year
under subsection (i), the Secretary of Education--
``(1) shall make available 1 percent of such amount to the
Secretary of the Interior (on behalf of the Bureau of Indian
Affairs) and the outlying areas for activities under this
section; and
``(2) shall allocate the remainder by providing each State
the same percentage of that remainder as it received of the
funds allocated to States under section 307(a)(2) of the
Department of Education Appropriations Act, 1999.
``(b) Allocation of Funds.--
``(1) In general.--Each State that receives funds under
this section shall distribute 100 percent of such funds to
local educational agencies, of which--
``(A) 80 percent of such amount shall be allocated
to such local educational agencies in proportion to the
number of children, aged 5 to 17, who reside in the
school district served by such local educational agency
from families with incomes below the poverty line (as
defined by the Office of Management and Budget and
revised annually in accordance with section 673(2) of
the Community Services Block Grant Act (42 U.S.C.
9902(2))) applicable to a family of the size involved
for the most recent fiscal year for which satisfactory
data are available compared to the number of such
individuals who reside in the school districts served
by all the local educational agencies in the State for
that fiscal year; and
``(B) 20 percent of such amount shall be allocated
to such local educational agencies in accordance with
the relative enrollments of children, aged 5 to 17, in
public and private nonprofit elementary and secondary
schools within the boundaries of such agencies.
``(2) Exception.--Notwithstanding paragraph (1), if the
award to a local educational agency under this section is less
than the starting salary for a new fully qualified teacher in
that agency, who is certified within the State (which may
include certification through State or local alternative
routes), has a baccalaureate degree, and demonstrates the
general knowledge, teaching skills, and subject matter
knowledge required to teach in his or her content areas, that
agency may use funds under this section to--
``(A) help pay the salary of a full- or part-time
teacher hired to reduce class size, which may be in
combination with other Federal, State, or local funds;
or
``(B) pay for activities described in subsection
(c)(2)(A)(iii) which may be related to teaching in
smaller classes.
``(c) Use of Funds.--
``(1) Purpose, intent, and general use.--The basic purpose
and intent of this section is to reduce class size with fully
qualified teachers. Each local educational agency that receives
funds under this section shall use such funds to carry out
effective approaches to reducing class size with fully
qualified teachers who are certified within the State,
including teachers certified through State or local alternative
routes, and who demonstrate competency in the areas in which
they teach, to improve educational achievement for both regular
and special needs children, with particular consideration given
to reducing class size in the early elementary grades for which
some research has shown class size reduction is most effective.
``(2) Specific uses.--
``(A) In general.--Each such local educational
agency may use funds under this section for--
``(i) recruiting (including through the use
of signing bonuses, and other financial
incentives), hiring, and training fully
qualified regular and special education
teachers (which may include hiring special
education teachers to team-teach with regular
teachers in classrooms that contain both
children with disabilities and non-disabled
children) and teachers of special-needs
children who are certified within the State,
including teachers certified through State or
local alternative routes, have a baccalaureate
degree and demonstrate the general knowledge,
teaching skills, and subject matter knowledge
required to teach in their content areas;
``(ii) testing new teachers for academic
content knowledge and to meet State
certification requirements that are consistent
with title II of the Higher Education Act of
1965; and
``(iii) providing professional development
(which may include such activities as those
described in section 2210, opportunities for
teachers to attend multi-week institutes, such
as those made available 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 children, in order to
meet the goal of ensuring that all
instructional staff have the subject matter
knowledge, teaching knowledge, and teaching
skills necessary to teach effectively in the
content area or areas in which they provide
instruction, consistent with title II of the
Higher Education Act of 1965.
``(B) Limitation.--
``(i) In general.--Except as provided under
clause (ii), a local educational agency may use
not more than a total of 25 percent of the
award received under this section for
activities described in clauses (ii) and (iii)
of subparagraph (A).
``(ii) Exception.--A local educational
agency in which 10 percent or more of teachers
in elementary schools, as defined by section
14101(14), have not met applicable State and
local certification requirements (including
certification through State or local
alternative routes), or if such requirements
have been waived, may use more than 25 percent
of the funds it receives under this section for
activities described in subparagraph (A)(iii)
to help teachers who are not certified by the
State become certified, including through State
or local alternative routes, or to help
teachers affected by class size reduction who
lack sufficient content knowledge to teach
effectively in the areas they teach to obtain
that knowledge, if the local educational agency
notifies the State educational agency of the
percentage of the funds that it will use for
the purpose described in this clause.
``(C) Use for further reductions.--A local
educational agency that has already reduced class size
in the early grades to 18 or less children (or has
already reduced class size to a State or local class
size reduction goal that was in effect on the day
before the enactment of the Department of Education
Appropriations Act, 2000, if that State or local
educational agency goal is 20 or fewer children) may
use funds received under this section--
``(i) to make further class size reductions
in grades kindergarten through 3;
``(ii) to reduce class size in other
grades; or
``(iii) to carry out activities to improve
teacher quality including professional
development.
``(D) Professional development.--If a local
educational agency has already reduced class size in
the early grades to 18 or fewer children and intends to
use funds provided under this section to carry out
professional development activities, including
activities to improve teacher quality, then the State
shall make the award under subsection (b) to the local
educational agency.
``(3) Supplement not supplant.--Each such agency shall use
funds under this section only to supplement, and not to
supplant, State and local funds that, in the absence of such
funds, would otherwise be spent for activities under this
section.
``(4) Limitation.--No funds made available under this
section may be used to increase the salaries or provide
benefits, other than participation in professional development
and enrichment programs, to teachers who are not hired under
this section. Funds under this section may be used to pay the
salary of teachers hired under section 307 of the Department of
Education Appropriations Act, 1999, or under section 310 of the
Department of Education Appropriations Act, 2000.
``(d) Reporting.--
``(1) In general.--Each State receiving funds under this
section shall report on activities in the State under this
section, consistent with section 6202(a)(2).
``(2) Reporting to parents.--Each State and local
educational agency receiving funds under this section shall
publicly report to parents on its progress in reducing class
size, increasing the percentage of classes in core academic areas
taught by fully qualified teachers who are certified within the State
and demonstrate competency in the content areas in which they teach,
and on the impact that hiring additional highly qualified teachers and
reducing class size, has had, if any, on increasing student academic
achievement.
``(3) Provision of qualification to parents.--Each school
receiving funds under this section shall provide to parents,
upon request, the professional qualifications of their child's
teacher.
``(e) Professional Development.--If a local educational agency uses
funds made available under this section for professional development
activities, the agency shall ensure for the equitable participation of
private nonprofit elementary and secondary schools in such activities.
Section 6402 shall not apply to other activities under this section.
``(f) Limitation on Administrative Costs.--A local educational
agency that receives funds under this section may use not more than 3
percent of such funds for local administrative costs.
``(g) Application.--Each local educational agency that desires to
receive funds under this section shall include in the application
required under section 6303 a description of the agency's program to
reduce class size by hiring additional highly qualified teachers.
``(h) No Use of Funds for Payments to Certain Teachers.--No funds
under this section may be used to pay the salary of any teacher hired
with funds under section 307 of the Department of Education
Appropriations Act, 1999, unless, by the start of the 2001-2002 school
year, the teacher is certified within the State (which may include
certification through State or local alternative routes) and
demonstrates competency in the subject areas in which he or she
teaches.
``(i) Notification.--Not later than 30 days after the date of the
enactment of this section, the Secretary shall provide specific
notification to each local educational agency eligible to receive funds
under this part regarding the flexibility provided under subsection
(c)(2)(B)(ii) and the ability to use such funds to carry out activities
described in subsection (c)(2)(A)(iii).
``(j) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section--
``(1) $2,317,507,723 for fiscal year 2002;
``(2) $3,012,015,447 for fiscal year 2003;
``(3) $3,706,523,170 for fiscal year 2004; and
``(4) $4,401,030,983 for fiscal year 2005.''.
SEC. 342. READING EXCELLENCE.
Part C of title II (20 U.S.C. 6661 et seq.) is amended--
(1) by inserting after the part heading the following:
``SEC. 2250. SHORT TITLE.
``This part may be cited as the `Reading Excellence Act'.'';
(2) in section 2253(a) (20 U.S.C. 6661b(a)) by adding at
the end the following:
``(3) Amount of grants.--From the amount appropriated for
each fiscal year under section 2260(a), the Secretary shall
award to each State educational agency a grant under this part
in an amount that is in proportion to the amount the State
received under part A of title I for the previous fiscal
year.'';
(3) in section 2255 (20 U.S.C. 6661d) by adding at the end
the following:
``(f) Other Uses.--With respect to a State educational agency that
has used amounts received under a grant under section 2253 in a
previous fiscal year to sufficiently serve schools described in
subsection (a)(1), such State agency may use amounts received under
such a grant in succeeding fiscal years to provide subgrants to local
educational agencies to assist other schools that may receive
assistance under title I.''; and
(4) in section 2260(a) (20 U.S.C. 6661i(a)) by adding at
the end the following:
``(3) Other fiscal years.--There are authorized to be
appropriated to carry out this part and section 1202(c)--
``(A) $500,000,000 for fiscal year 2002;
``(B) $600,000,000 for fiscal year 2003;
``(C) $700,000,000 for fiscal year 2004;
``(D) $850,000,000 for fiscal year 2005; and
``(E) $1,000,000,000 for fiscal year 2006.''.
SEC. 343. TUTORIAL ASSISTANCE GRANTS.
(a) In General.--Section 2256 (20 U.S.C. 6661e) is repealed.
(b) Conforming Amendments.--Part C of title II (20 U.S.C. 6661 et
seq.) is amended--
(1) in section 2253 (20 U.S.C. 6661b)--
(A) in subsection (a)(1), by striking ``sections
2254 through 2256'' and inserting ``sections 2254 and
2255''; and
(B) in subsection (b)(2)--
(i) in subparagraph (A)(ii), by striking
``sections 2255 and 2256'' and inserting
``section 2255'';
(ii) in subparagraph (B)--
(I) in clause (ii), by striking
``section 2255 and 2256'' and inserting
``section 2255''; and
(II) in clause (vi), , by striking
``sections 2255 and 2256'' and
inserting ``section 2255''; and
(iii) in subparagraph (E)(iii)--
(I) by striking ``sections
2255(a)(1) and 2256(a)(1)'' and
inserting ``section 2255(a)(1)''; and
(II) by striking ``sections 2255
and 2256'' and inserting ``section
2255'';
(2) in section 2254 (20 U.S.C. 6661c)--
(A) in paragraph (1)--
(i) by striking ``(excluding section
2256)''; and
(ii) by striking ``; and'' and inserting a
period;
(B) by striking ``2253--'' and all that follows
through ``shall use'' in paragraph (1) and inserting
``2253 shall use''; and
(C) by striking in paragraph (2); and
(3) in section 2258(a) (20 U.S.C. 6661h(a)), by striking
``or 2256''.
CHAPTER 5--INTEGRATION OF TECHNOLOGY INTO THE CLASSROOM
SEC. 351. SHORT TITLE.
This chapter may be cited as the ``Training for Technology Act of
2001''.
SEC. 352. LOCAL APPLICATIONS FOR SCHOOL TECHNOLOGY RESOURCE GRANTS.
Section 3135 (20 U.S.C. 6845) is amended--
(1) in the first sentence, by inserting ``(a) In General.--
'' before ``Each local educational agency'';
(2) in subsection (a) (as so redesignated)--
(A) in paragraph (3)(B), by striking ``; and'' and
inserting a semicolon;
(B) in paragraph (4), by striking the period and
inserting ``; and''; and
(C) by inserting after paragraph (4) the following:
``(5) demonstrate the manner in which the local educational
agency will utilize at least 30 percent of the amounts provided
to the agency under this subpart in each fiscal year to provide
for in-service teacher training, or that the agency is using at
least 30 percent of its total technology funding available to
the agency from all sources (including Federal, State, and
local sources) to provide in-service teacher training.'';
(3) by redesignating subsections (d) and (e) as subsections
(b) and (c) respectively; and
(4) in subsection (c) (as so redesignated), by striking
``subsection (e)'' and inserting ``subsection (a)''.
SEC. 353. TEACHER PREPARATION.
Part A of title III (20 U.S.C. 6811 et seq.) is amended by adding
at the end the following:
``Subpart 5--Preparing Tomorrow's Teachers To Use Technology
``SEC. 3161. PURPOSE; PROGRAM AUTHORITY.
``(a) Purpose.--It is the purpose of this subpart to assist
consortia of public and private entities in carrying out programs that
prepare prospective teachers to use advanced technology to foster
learning environments conducive to preparing all students to achieve to
challenging State and local content and student performance standards.
``(b) Program Authority.--
``(1) In general.--The Secretary is authorized, through the
Office of Educational Technology, to award grants, contracts,
or cooperative agreements on a competitive basis to eligible
applicants in order to assist them in developing or redesigning
teacher preparation programs to enable prospective teachers to
use technology effectively in their classrooms.
``(2) Period of award.--The Secretary may award grants,
contracts, or cooperative agreements under this subpart for a
period of not more than 5 years.
``SEC. 3162. ELIGIBILITY.
``(a) Eligible Applicants.--In order to receive an award under this
subpart, an applicant shall be a consortium that includes--
``(1) at least 1 institution of higher education that
offers a baccalaureate degree and prepares teachers for their
initial entry into teaching;
``(2) at least 1 State educational agency or local
educational agency; and
``(3) 1 or more of the following entities:
``(A) an institution of higher education (other
than the institution described in paragraph (1));
``(B) a school or department of education at an
institution of higher education;
``(C) a school or college of arts and sciences at
an institution of higher education;
``(D) a professional association, foundation,
museum, library, for-profit business, public or private
nonprofit organization, community-based organization,
or other entity with the capacity to contribute to the
technology-related reform of teacher preparation
programs.
``(b) Application Requirements.--In order to receive an award under
this subpart, an eligible applicant shall submit an application to the
Secretary at such time, and containing such information, as the
Secretary may require. Such application shall include--
``(1) a description of the proposed project, including how
the project would ensure that individuals participating in the
project would be prepared to use technology to create learning
environments conducive to preparing all students, including
girls and students who have economic and educational
disadvantages, to achieve to challenging State and local
content and student performance standards;
``(2) a demonstration of--
``(A) the commitment, including the financial
commitment, of each of the members of the consortium;
and
``(B) the active support of the leadership of each
member of the consortium for the proposed project;
``(3) a description of how each member of the consortium
would be included in project activities;
``(4) a description of how the proposed project would be
continued once the Federal funds awarded under this subpart
end; and
``(5) a plan for the evaluation of the program, which shall
include benchmarks to monitor progress toward specific project
objectives.
``(c) Matching Requirements.--
``(1) In general.--The Federal share of the cost of any
project funded under this subpart shall not exceed 50 percent.
Except as provided in paragraph (2), the non-Federal share of
such project may be in cash or in kind, fairly evaluated,
including services.
``(2) Acquisition of equipment.--Not more than 10 percent
of the funds awarded for a project under this subpart may be
used to acquire equipment, networking capabilities, or
infrastructure, and the non-Federal share of the cost of any
such acquisition shall be in cash.
``SEC. 3163. USE OF FUNDS.
``(a) Required Uses.--A recipient shall use funds under this
subpart for--
``(1) creating programs that enable prospective teachers to
use advanced technology to create learning environments
conducive to preparing all students, including girls and
students who have economic and educational disadvantages, to
achieve to challenging State and local content and student
performance standards; and
``(2) evaluating the effectiveness of the project.
``(b) Permissible Uses.--A recipient may use funds under this
subpart for activities, described in its application, that carry out
the purposes of this subpart, such as--
``(1) developing and implementing high-quality teacher
preparation programs that enable educators to--
``(A) learn the full range of resources that can be
accessed through the use of technology;
``(B) integrate a variety of technologies into the
classroom in order to expand students' knowledge;
``(C) evaluate educational technologies and their
potential for use in instruction; and
``(D) help students develop their own technical
skills and digital learning environments;
``(2) developing alternative teacher development paths that
provide elementary schools and secondary schools with well-
prepared, technology-proficient educators;
``(3) developing performance-based standards and aligned
assessments to measure the capacity of prospective teachers to
use technology effectively in their classrooms;
``(4) providing technical assistance to other teacher
preparation programs;
``(5) developing and disseminating resources and
information in order to assist institutions of higher education
to prepare teachers to use technology effectively in their
classrooms; and
``(6) subject to section 3162(c)(2), acquiring equipment,
networking capabilities, and infrastructure to carry out the
project.
``SEC. 3164. AUTHORIZATION OF APPROPRIATIONS.
``For purposes of carrying out this subpart, there is authorized to
be appropriated $150,000,000 for fiscal year 2002, and such sums as may
be necessary for each of the 4 succeeding fiscal years.''.
SEC. 354. PROFESSIONAL DEVELOPMENT.
Section 3141(b)(2)(A) (20 U.S.C. 6861(b)(2)(A)) is amended--
(1) in clause (i), by striking ``and'' at the end;
(2) in clause (ii)(V), by adding ``and'' after the
semicolon; and
(3) by adding at the end the following:
``(iii) the provision of incentives,
including bonus payments, to recognized
educators who achieve the National Education
Technology Standards, or an information
technology certification that is directly
related to the curriculum or content area in
which the teacher provides instruction;''.
TITLE IV--INDIVIDUALS WITH DISABILITIES EDUCATION ACT
SEC. 401. FULL FUNDING OF IDEA.
(a) Full Funding.--In additional to any amounts otherwise
appropriated, there are appropriated to carry out part B of the
Individuals with Disabilities Education Act (20 U.S.C. 1411 et seq.),
$2,000,000,000 for fiscal year 2002.
(b) Sense of the Senate.--
(1) Findings.--The Senate makes the following findings:
(A) Before the Individuals with Disabilities
Education Act (20 U.S.C. 1400 et seq.) (referred to in
this subsection as ``IDEA'') was enacted in 1975, as
many as 4,000,000 children were denied appropriate
educational services. Few disabled preschoolers
received services. 1,000,000 children with disabilities
were excluded from public school. Courts ruled this
practice was unconstitutional.
(B) States asked the Federal Government to help
them fund educational services to disabled children.
Congress responded by enacting IDEA to ensure that
disabled children received appropriate services and to
provide financial support to the States for providing
these services.
(C) Since the enactment of IDEA, schools have been
serving disabled children, helping them develop their
skills and abilities and go on to lead productive and
independent lives. Today, IDEA serves 5,400,000
children with disabilities from birth through age 21.
Every State offers public education and early
intervention services for children with disabilities.
Fewer than 6,000 disabled children now live in
institutional settings away from their families,
compared to 95,000 such children in 1969. The number of
disabled students completing high school with a diploma
or certificate has increased by 10 percent in the last
decade. The number of students with disabilities
entering higher education has more than tripled since
the implementation of IDEA.
(D) When IDEA was enacted, the legislation included
a goal to provide 40 percent of the cost of providing
services for these students.
(E) The cost of providing special education has
increased significantly for school districts across the
country. The Federal Government currently provides
about 15 percent of the national average per pupil expenditure for IDEA
students.
(F) IDEA will be up for reauthorization for fiscal
year 2003.
(2) Sense of the senate.--It is the sense of the Senate
that--
(A) when Congress reauthorizes the IDEA program, it
should ensure that the Federal Government will reach
the goal of providing 40 percent of the national
average per pupil expenditure under IDEA; and
(B) disabled children will benefit from efforts to
help schools hire and train high quality teachers and
principals, reduce class size, renovate overcrowded and
crumbling buildings, integrate technology into the
classroom, strengthen early literacy programs, and
increase the availability of after-school learning
opportunities.
TITLE V--MAKING HIGHER EDUCATION MORE AFFORDABLE
SEC. 501. INCREASE IN MAXIMUM PELL GRANT.
(a) Findings.--Congress makes the following findings:
(1) A college education has become increasingly important,
not just to the individual beneficiary, but to the nation as a
whole. The growth and continued expansion of the nation's
economy is heavily dependent on an educated and highly skilled
workforce.
(2) The opportunity to gain a college education also is
important to the nation as a means to help advance the American
ideals of progress and equality.
(3) The Federal Government plays an invaluable role in
making student financial aid available to ensure that qualified
students are able to attend college, regardless of their
financial means. Since the inception of the Pell Grant program
in 1973, nearly 80,000,000 grants have helped low- and middle-
income students go to college, enrich their lives, and become
productive members of society.
(4) Nationwide, almost 70 percent of high school graduates
continue on to higher education. This degree of college
participation would not exist without the Federal investment in
student aid, especially the Pell Grant program. Nearly 25
percent of low- and middle-income students receive some amount
of Pell Grant funding.
(5) In the next 10 years, the number of undergraduate
students enrolled in the nation's colleges and universities
will increase by 11 percent to more than 11,000,000 students.
Many of these students will be the first in their families to
attend college. One in 5 of these students will be from
families with incomes below the poverty level. The continued
investment in the Pell Grant program is essential if college is
to remain an achievable part of the American dream.
(6) Increasing the maximum Pell Grant to $4,700 would allow
approximately 430,000 additional students to benefit from the
program.
(7) Increasing the maximum Pell Grant to $4,700 would
result in an $800 increase in the average grant award.
(8) Because Pell Grant recipients are more likely to
graduate with student loan debt and to amass more debt than
other student borrowers, increasing the maximum Pell Grant to
$4,700 by fiscal year 2004 will help remedy this disparity.
(b) Sense of the Senate.--It is the sense of the Senate the maximum
Pell Grant should be increased to $4,700.
SEC. 502. DEDUCTION FOR HIGHER EDUCATION EXPENSES.
(a) Deduction Allowed.--Part VII of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 (relating to additional itemized
deductions for individuals) is amended by redesignating section 222 as
section 223 and by inserting after section 221 the following:
``SEC. 222. HIGHER EDUCATION EXPENSES.
``(a) Allowance of Deduction.--
``(1) In general.--In the case of an individual, there
shall be allowed as a deduction an amount equal to the
applicable dollar amount of the qualified higher education
expenses paid by the taxpayer during the taxable year.
``(2) Applicable dollar amount.--The applicable dollar
amount for any taxable year shall be determined as follows:
Applicable
``Taxable year: dollar amount:
2002.......................................... $4,000
2003.......................................... $8,000
2004 and thereafter........................... $12,000.
``(b) Limitation Based on Modified Adjusted Gross Income.--
``(1) In general.--The amount which would (but for this
subsection) be taken into account under subsection (a) shall be
reduced (but not below zero) by the amount determined under
paragraph (2).
``(2) Amount of reduction.--The amount determined under
this paragraph equals the amount which bears the same ratio to
the amount which would be so taken into account as--
``(A) the excess of--
``(i) the taxpayer's modified adjusted
gross income for such taxable year, over
``(ii) $62,450 ($104,050 in the case of a
joint return, $89,150 in the case of a return
filed by a head of household, and $52,025 in
the case of a return by a married individual
filing separately), bears to
``(B) $15,000.
``(3) Modified adjusted gross income.--For purposes of this
subsection, the term `modified adjusted gross income' means the
adjusted gross income of the taxpayer for the taxable year
determined--
``(A) without regard to this section and sections
911, 931, and 933, and
``(B) after the application of sections 86, 135,
219, 220, and 469.
For purposes of the sections referred to in subparagraph (B),
adjusted gross income shall be determined without regard to the
deduction allowed under this section.
``(c) Qualified Higher Education Expenses.--For purposes of this
section--
``(1) Qualified higher education expenses.--
``(A) In general.--The term `qualified higher
education expenses' means tuition and fees charged by
an educational institution and required for the
enrollment or attendance of--
``(i) the taxpayer,
``(ii) the taxpayer's spouse,
``(iii) any dependent of the taxpayer with
respect to whom the taxpayer is allowed a
deduction under section 151, or
``(iv) any grandchild of the taxpayer,
as an eligible student at an institution of higher
education.
``(B) Eligible courses.--Amounts paid for qualified
higher education expenses of any individual shall be
taken into account under subsection (a) only to the
extent such expenses--
``(i) are attributable to courses of
instruction for which credit is allowed toward
a baccalaureate degree by an institution of
higher education or toward a certificate of
required course work at a vocational school,
and
``(ii) are not attributable to any graduate
program of such individual.
``(C) Exception for nonacademic fees.--Such term
does not include any student activity fees, athletic
fees, insurance expenses, or other expenses unrelated
to a student's academic course of instruction.
``(D) Eligible student.--For purposes of
subparagraph (A), the term `eligible student' means a
student who--
``(i) meets the requirements of section
484(a)(1) of the Higher Education Act of 1965
(20 U.S.C. 1091(a)(1)), as in effect on the
date of the enactment of this section, and
``(ii) is carrying at least one-half the
normal full-time work load for the course of
study the student is pursuing, as determined by
the institution of higher education.
``(E) Identification requirement.--No deduction
shall be allowed under subsection (a) to a taxpayer
with respect to an eligible student unless the taxpayer
includes the name, age, and taxpayer identification
number of such eligible student on the return of tax
for the taxable year.
``(2) Institution of higher education.--The term
`institution of higher education' means an institution which--
``(A) is described in section 481 of the Higher
Education Act of 1965 (20 U.S.C. 1088), as in effect on
the date of the enactment of this section, and
``(B) is eligible to participate in programs under
title IV of such Act.
``(d) Special Rules.--
``(1) No double benefit.--
``(A) In general.--No deduction shall be allowed
under subsection (a) for any expense for which a
deduction is allowable to the taxpayer under any other
provision of this chapter unless the taxpayer
irrevocably waives his right to the deduction of such
expense under such other provision.
``(B) Denial of deduction if credit elected.--No
deduction shall be allowed under subsection (a) for a
taxable year with respect to the qualified higher
education expenses of an individual if the taxpayer
elects to have section 25A apply with respect to such
individual for such year.
``(C) Dependents.--No deduction shall be allowed
under subsection (a) to any individual with respect to
whom a deduction under section 151 is allowable to
another taxpayer for a taxable year beginning in the
calendar year in which such individual's taxable year
begins.
``(D) Coordination with exclusions.--A deduction
shall be allowed under subsection (a) for qualified
higher education expenses only to the extent the amount
of such expenses exceeds the amount excludable under
section 135 or 530(d)(2) for the taxable year.
``(2) Limitation on taxable year of deduction.--
``(A) In general.--A deduction shall be allowed
under subsection (a) for qualified higher education
expenses for any taxable year only to the extent such
expenses are in connection with enrollment at an
institution of higher education during the taxable year.
``(B) Certain prepayments allowed.--Subparagraph
(A) shall not apply to qualified higher education
expenses paid during a taxable year if such expenses
are in connection with an academic term beginning
during such taxable year or during the first 3 months
of the next taxable year.
``(3) Adjustment for certain scholarships and veterans
benefits.--The amount of qualified higher education expenses
otherwise taken into account under subsection (a) with respect
to the education of an individual shall be reduced (before the
application of subsection (b)) by the sum of the amounts
received with respect to such individual for the taxable year
as--
``(A) a qualified scholarship which under section
117 is not includable in gross income,
``(B) an educational assistance allowance under
chapter 30, 31, 32, 34, or 35 of title 38, United
States Code, or
``(C) a payment (other than a gift, bequest,
devise, or inheritance within the meaning of section
102(a)) for educational expenses, or attributable to
enrollment at an eligible educational institution,
which is exempt from income taxation by any law of the
United States.
``(4) No deduction for married individuals filing separate
returns.--If the taxpayer is a married individual (within the
meaning of section 7703), this section shall apply only if the
taxpayer and the taxpayer's spouse file a joint return for the
taxable year.
``(5) Nonresident aliens.--If the taxpayer is a nonresident
alien individual for any portion of the taxable year, this
section shall apply only if such individual is treated as a
resident alien of the United States for purposes of this
chapter by reason of an election under subsection (g) or (h) of
section 6013.
``(6) Regulations.--The Secretary may prescribe such
regulations as may be necessary or appropriate to carry out
this section, including regulations requiring recordkeeping and
information reporting.''.
(b) Deduction Allowed in Computing Adjusted Gross Income.--Section
62(a) of the Internal Revenue Code of 1986 is amended by inserting
after paragraph (17) the following:
``(18) Higher education expenses.--The deduction allowed by
section 222.''.
(c) Conforming Amendment.--The table of sections for part VII of
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is
amended by striking the item relating to section 222 and inserting the
following:
``Sec. 222. Higher education expenses.
``Sec. 223. Cross reference.''.
(d) Effective Date.--The amendments made by this section shall
apply to payments made in taxable years beginning after December 31,
2001.
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