[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1218 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                S. 1218

To amend the Elementary and Secondary Education Act of 1965, the Higher 
Education Act of 1965, and the Internal Revenue Code of 1986 to improve 
    recruitment, preparation, distribution, and retention of public 
elementary and secondary school teachers and principals, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 9, 2005

Mr. Kennedy (for himself and Mr. Durbin) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Elementary and Secondary Education Act of 1965, the Higher 
Education Act of 1965, and the Internal Revenue Code of 1986 to improve 
    recruitment, preparation, distribution, and retention of public 
elementary and secondary school teachers and principals, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Teacher Excellence for All Children 
Act of 2005''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Findings.
               TITLE I--RECRUITING TALENTED NEW TEACHERS

Sec. 101. Amendments to Higher Education Act of 1965.
Sec. 102. Extending and expanding teacher loan forgiveness.
             TITLE II--CLOSING THE TEACHER DISTRIBUTION GAP

Sec. 201. Grants to local educational agencies to provide premium pay 
                            to teachers in high-need schools.
                TITLE III--IMPROVING TEACHER PREPARATION

Sec. 301. Amendment to Elementary and Secondary Education Act of 1965.
Sec. 302. Amendment to the Higher Education Act of 1965: Teacher 
                            Quality Enhancement Grants.
Sec. 303. Enforcing NCLB's teacher equity provision.
TITLE IV--EQUIPPING TEACHERS, SCHOOLS, LOCAL EDUCATIONAL AGENCIES, AND 
  STATES WITH THE 21ST CENTURY DATA, TOOLS, AND ASSESSMENTS THEY NEED

Sec. 401. 21st Century Data, Tools, and Assessments.
Sec. 402. Collecting national data on distribution of teachers.
     TITLE V--RETENTION: KEEPING OUR BEST TEACHERS IN THE CLASSROOM

Sec. 501. Amendment to Elementary and Secondary Education Act of 1965.
Sec. 502. Exclusion from gross income of compensation of teachers and 
                            principals in certain high-need schools or 
                            teaching high-need subjects.
Sec. 503. Above-the-line deduction for certain expenses of elementary 
                            and secondary school teachers increased and 
                            made permanent.
                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Conforming amendments.

SEC. 3. FINDINGS.

    The Congress finds as follows:
            (1) There are not enough qualified teachers in the Nation's 
        classrooms, and an unprecedented number of teachers will retire 
        over the next 5 years. Over the next decade, the Nation will 
        need to bring 2,000,000 new teachers into public schools.
            (2) Too many teachers and principals do not receive 
        adequate preparation for their jobs.
            (3) More than one-third of children in grades 7-12 are 
        taught by a teacher who lacks both a college major and 
        certification in the subject being taught. Rates of ``out-of-
        field teaching'' are especially high in high-poverty schools.
            (4) Seventy percent of mathematics classes in high-poverty 
        middle schools are assigned to teachers without even a minor in 
        mathematics or a related field.
            (5) Teacher turnover is a serious problem, particularly in 
        urban and rural areas. Over one-third of new teachers leave the 
        profession within their first 3 years of teaching, and 14 
        percent of new teachers leave the field within the first year. 
        After 5 years--the average time it takes for teachers to 
        maximize students' learning--half of all new teachers will have 
        exited the profession. Rates of teacher attrition are highest 
        in high-poverty schools. Between 2000 and 2001, 1 out of 5 
        teachers in the Nation's high-poverty schools either left to 
        teach in another school or dropped out of teaching altogether.
            (6) Fourth graders who are poor score dramatically lower on 
        the National Assessment of Educational Progress (NAEP) than 
        their counterparts who are not poor. Over 85 percent of fourth 
        graders who are poor failed to attain NAEP proficiency 
        standards in 2003.
            (7) African-American, Latino, and low-income students are 
        much less likely than other students to have highly-qualified 
        teachers.
            (8) Research shows that individual teachers have a great 
        impact on how well their students learn. The most effective 
        teachers have been shown to be able to boost their pupils' 
        learning by a full grade level relative to students taught by 
        less effective teachers.
            (9) Although nearly half (42 percent) of all teachers hold 
        a master's degree, fewer than 1 in 4 secondary teachers have a 
        master's degree in the subject they teach.
            (10) Young people with high SAT and ACT scores are much 
        less likely to choose teaching as a career. Those who have 
        higher SAT or ACT scores are twice as likely to leave the 
        profession after only a few years.
            (11) Only 16 States finance new teacher induction programs, 
        and fewer still require inductees to be matched with mentors 
        who teach the same subject.

               TITLE I--RECRUITING TALENTED NEW TEACHERS

SEC. 101. AMENDMENTS TO HIGHER EDUCATION ACT OF 1965.

    (a) TEACH Grants.--Title II of the Higher Education Act of 1965 (20 
U.S.C. 1021 et seq.) is amended by adding at the end the following new 
part:

                         ``PART C--TEACH GRANTS

``SEC. 231. PURPOSES.

    ``The purposes of this part are--
            ``(1) to improve student academic achievement;
            ``(2) to help recruit and prepare teachers to meet the 
        national demand for a highly qualified teacher in every 
        classroom; and
            ``(3) to increase opportunities for Americans of all 
        educational, ethnic, class, and geographic backgrounds to 
        become highly qualified teachers.

``SEC. 232. PROGRAM ESTABLISHED.

    ``(a) Program Authority.--
            ``(1) Payments required.--For each of the fiscal years 2006 
        through 2013, the Secretary shall pay to each eligible 
        institution such sums as may be necessary to pay to each 
        eligible student (defined in accordance with section 484) who 
        files an application and agreement in accordance with section 
        233, and qualifies under subsection (a)(2) of such section, a 
        TEACH Grant in the amount of $4,000 for each academic year 
        during which that student is in attendance at an institution of 
        higher education.
            ``(2) Reference.--Grants made under this part shall be 
        known as `Teacher Education Assistance for College and Higher 
        Education Grants' or `TEACH Grants'.
    ``(b) Payment Methodology.--
            ``(1) Prepayment.--Not less than 85 percent of such sums 
        shall be advanced to eligible institutions prior to the start 
        of each payment period and shall be based upon an amount 
        requested by the institution as needed to pay eligible students 
        until such time as the Secretary determines and publishes in 
        the Federal Register with an opportunity for comment, an 
        alternative payment system that provides payments to 
        institutions in an accurate and timely manner, except that this 
        sentence shall not be construed to limit the authority of the 
        Secretary to place an institution on a reimbursement system of 
        payment.
            ``(2) Direct payment.--Nothing in this section shall be 
        interpreted to prohibit the Secretary from paying directly to 
        students, in advance of the beginning of the academic term, an 
        amount for which they are eligible, in cases where the eligible 
        institution elects not to participate in the disbursement 
        system required by paragraph (1) .
            ``(3) Distribution of grants to students.--Payments under 
        this part shall be made, in accordance with regulations 
        promulgated by the Secretary for such purpose, in such manner 
        as will best accomplish the purposes of this part. Any 
        disbursement allowed to be made by crediting the student's 
        account shall be limited to tuition and fees and, in the case 
        of institutionally owned housing, room and board. The student 
        may elect to have the institution provide other such goods and 
        services by crediting the student's account.
    ``(c) Reductions in Amount.--
            ``(1) Part time students.--In any case where a student 
        attends an institution of higher education on less than a full-
        time basis (including a student who attends an institution of 
        higher education on less than a half-time basis) during any 
        academic year, the amount of the TEACH Grant to which that 
        student is eligible shall be reduced in proportion to the 
        degree to which that student is not so attending on a full-time 
        basis, in accordance with a schedule of reductions established 
        by the Secretary for the purpose of this part, computed in 
        accordance with this part. Such schedule of reductions shall be 
        established by regulation and published in the Federal Register 
        in accordance with section 482 of this Act.
            ``(2) No exceeding cost.--No TEACH Grant for a student 
        under this part shall exceed the cost of attendance (as defined 
        in section 472) at the institution at which such student is in 
        attendance. If, with respect to any student, it is determined 
        that the amount of a TEACH Grant exceeds the cost of attendance 
        for that year, the amount of the TEACH Grant shall be reduced 
        until the TEACH Grant does not exceed the cost of attendance at 
        such institution.
    ``(d) Period of Eligibility for Grants.--
            ``(1) Undergraduate students.--The period during which an 
        undergraduate student may receive TEACH Grants shall be the 
        period required for the completion of the first undergraduate 
        baccalaureate course of study being pursued by that student at 
        the institution at which the student is in attendance, except 
        that--
                    ``(A) any period during which the student is 
                enrolled in a noncredit or remedial course of study, 
                subject to paragraph (3), shall not be counted for the 
                purpose of this paragraph; and
                    ``(B) the total amount that a student may receive 
                under this part for undergraduate study shall not 
                exceed $16,000.
            ``(2) Graduate students.--The period during which a 
        graduate student may receive TEACH Grants shall be the period 
        required for the completion of a master's degree course of 
        study being pursued by that student at the institution at which 
        the student is in attendance, except that the total amount that 
        a student may receive under this part for graduate study shall 
        not exceed $8,000.
            ``(3) Remedial course; study abroad.--Nothing in this 
        section shall exclude from eligibility courses of study that 
        are noncredit or remedial in nature (including courses in 
        English language acquisition) that are determined by the 
        institution to be necessary to help the student be prepared for 
        the pursuit of a first undergraduate baccalaureate degree or 
        certificate or, in the case of courses in English language 
        instruction, to be necessary to enable the student to utilize 
        already existing knowledge, training, or skills. Nothing in 
        this section shall exclude from eligibility programs of study 
        abroad that are approved for credit by the home institution at 
        which the student is enrolled.

``SEC. 233. ELIGIBILITY AND APPLICATIONS FOR GRANTS.

    ``(a) Applications; Demonstration of Eligibility.--
            ``(1) Filing required.--The Secretary shall from time to 
        time set dates by which students shall file applications for 
        TEACH Grants under this part. Each student desiring a TEACH 
        Grant for any year shall file an application therefore 
        containing such information and assurances as the Secretary may 
        deem necessary to enable the Secretary to carry out the 
        functions and responsibilities of this part.
            ``(2) Demonstration of eligibility.--Each such application 
        shall contain such information as is necessary to demonstrate 
        that--
                    ``(A) if the applicant is an enrolled student--
                            ``(i) the student is an eligible student 
                        for purposes of section 484 (other than 
                        subsection (r) of such section);
                            ``(ii) the student--
                                    ``(I) has a grade point average 
                                that is determined, under standards 
                                prescribed by the Secretary, to be 
                                comparable to a 3.25 average on a zero 
                                to 4.0 scale, except that, if the 
                                student is in the first year of a 
                                program of undergraduate education, 
                                such grade point average shall be 
                                determined on the basis of the 
                                student's cumulative high school grade 
                                point average; or
                                    ``(II) displayed high academic 
                                aptitude by receiving a score above the 
                                75th percentile on at least one of the 
                                batteries in an undergraduate or 
                                graduate school admissions test; and
                            ``(iii) the student is completing 
                        coursework and other requirements necessary to 
                        begin a career in teaching, or plans to 
                        complete such coursework and requirements prior 
                        to graduating; or
                    ``(B) if the applicant is a current or prospective 
                teacher applying for a grant to obtain a graduate 
                degree--
                            ``(i) the applicant is a teacher or a 
                        retiree from another occupation with expertise 
                        in a field in which there is a shortage of 
                        teachers, such as mathematics, science, special 
                        education, English language acquisition, or 
                        another high-need subject; or
                            ``(ii) the applicant is or was a teacher 
                        who is using high-quality alternative 
                        certification routes, such as Teach for 
                        America, to get certified.
    ``(b) Agreements to Serve.--Each application under subsection (a) 
shall contain or be accompanied by an agreement by the applicant that--
            ``(1) the applicant will--
                    ``(A) serve as a full-time teacher for a total of 
                not less than 4 academic years within 8 years after 
                completing the course of study for which the applicant 
                received a TEACH Grant under this part;
                    ``(B) teach--
                            ``(i) in a school described in section 
                        465(a)(2)(A); and
                            ``(ii) in any of the following fields: 
                        mathematics, science, a foreign language, 
                        bilingual education, or special education, or 
                        as a reading specialist, or another field 
                        documented as high-need by the Federal 
                        Government, State government, or local 
                        education agency and submitted to the 
                        Secretary;
                    ``(C) submit evidence of such employment in the 
                form of a certification by the chief administrative 
                officer of the school upon completion of each year of 
                such service; and
                    ``(D) comply with the requirements for being a 
                highly qualified teacher as defined in section 9101 of 
                the Elementary and Secondary Education Act of 1965; and
            ``(2) in the event that the applicant is determined to have 
        failed or refused to carry out such service obligation, the sum 
        of the amounts of such Teach Grants will be treated as a loan 
        and collected from the applicant in accordance with subsection 
        (c) and the regulations thereunder.
    ``(c) Repayment for Failure to Complete Service.--In the event that 
any recipient of a TEACH Grant fails or refuses to comply with the 
service obligation in the agreement under subsection (b), the sum of 
the amounts of such Grants provided to such recipient shall be treated 
as a Direct Loan under part D of title IV, and shall be subject to 
repayment in accordance with terms and conditions specified by the 
Secretary in regulations promulgated to carry out this part.''.
    (b) Recruiting Teachers With Mathematics, Science, or Language 
Major.--Title II of the Higher Education Act of 1965 (20 U.S.C. 1021 et 
seq.), as amended by subsection (a), is further amended by adding at 
the end the following:

 ``PART D--RECRUITING TEACHERS WITH MATHEMATICS, SCIENCE, OR LANGUAGE 
                                 MAJORS

``SEC. 241. PROGRAM AUTHORIZED.

    ``(a) Grants Authorized.--From the amounts appropriated under 
section 242, the Secretary shall make competitive grants to 
institutions of higher education to improve the availability and 
recruitment of teachers from among students majoring in mathematics, 
science, foreign languages, special education, or teaching the English 
language to students with limited English proficiency. In making such 
grants, the Secretary shall give priority to programs that focus on 
preparing teachers in subjects in which there is a shortage of highly 
qualified teachers and that prepare students to teach in high-need 
schools.
    ``(b) Application.--Any institution of higher education desiring to 
obtain a grant under this part shall submit to the Secretary an 
application at such time, in such form, and containing such information 
and assurances as the Secretary may require, which shall--
            ``(1) include reporting on baseline production of teachers 
        with expertise in mathematics, science, a foreign language, or 
        teaching English language learners; and
            ``(2) establish a goal and timeline for increasing the 
        number of such teachers who are prepared by the institution.
    ``(c) Use of Funds.--Funds made available by a grant under this 
part--
            ``(1) shall be used to create new recruitment incentives to 
        teaching from other majors, with an emphasis on high-need 
        subjects such as mathematics, science, foreign languages, and 
        teaching the English language to students with limited English 
        proficiency;
            ``(2) may be used to upgrade curriculum in order to provide 
        all students studying to become teachers with high-quality 
        instructional strategies for teaching reading and teaching the 
        English language to students with limited English proficiency, 
        and for modifying instruction to teach students with special 
        needs;
            ``(3) may be used to integrate school of education faculty 
        with other arts and science faculty in mathematics, science, 
        foreign languages, and teaching the English language to 
        students with limited English proficiency through steps such 
        as--
                    ``(A) dual appointments for faculty between schools 
                of education and schools of arts and science; and
                    ``(B) integrating coursework with clinical 
                experience; and
            ``(4) may be used to develop strategic plans between 
        schools of education and local school districts to better 
        prepare teachers for high-need schools, including the creation 
        of professional development partnerships for training new 
        teachers in state-of-the-art practice.

``SEC. 242. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to make grants under this 
part $200,000,000 for fiscal year 2006 and such sums as may be 
necessary for each of the 5 succeeding fiscal years.''.
    (c) Part A Authorization.--Section 210 of the Higher Education Act 
of 1965 (20 U.S.C. 1030) is amended--
            (1) by striking ``$300,000,000 for fiscal year 1999'' and 
        inserting ``$400,000,000 for fiscal year 2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 102. EXTENDING AND EXPANDING TEACHER LOAN FORGIVENESS.

    (a) Permanent Extension.--Section 3(b)(3) of the Taxpayer-Teacher 
Protection Act of 2004 (P.L. 108-409; 118 Stat. 2300) is amended by 
striking ``1998, and before October 1, 2005'' and inserting ``1998''.
    (b) Increased Amount; Applicability of Expanded Program to Reading 
Specialist.--Sections 428J(c)(3) and 460(c)(3) of the Higher Education 
Act of 1965 (20 U.S.C. 1078-10(c)(3), 1087j(c)(3)) are each amended--
            (1) by striking ``$17,500'' and inserting ``$20,000'';
            (2) by striking ``and'' at the end of subparagraph (A)(ii);
            (3) by striking the period at the end of subparagraph 
        (B)(iii) and inserting ``; and''; and
            (4) by adding at the end the following new subparagraph:
                    ``(C) an elementary or secondary school teacher who 
                primarily teaches reading and who--
                            ``(i) has obtained a separate reading 
                        instruction credential from the State in which 
                        the teacher is employed; and
                            ``(ii) is certified by the chief 
                        administrative officer of the public or 
                        nonprofit private elementary school or 
                        secondary school in which the borrower is 
                        employed to teach reading--
                                    ``(I) as being proficient in 
                                teaching the essential components of 
                                reading instruction, as defined in 
                                section 1208 of the Elementary and 
                                Secondary Education Act of 1965; and
                                    ``(II) as having such 
                                credential.''.
    (c) Annual Increments Instead of End of Service Lump Sums.--
            (1) FFEL loans.--Section 428J(c) of the Higher Education 
        Act of 1965 (20 U.S.C. 1078-10(c)) is amended by adding at the 
        end the following:
            ``(4) Annual increments.--Notwithstanding paragraph (1), in 
        the case of an individual qualifying for loan forgiveness under 
        paragraph (3), the Secretary shall, in lieu of waiting to 
        assume an obligation only upon completion of 5 complete years 
        of service, assume the obligation to repay--
                    ``(A) after each of the first and second years of 
                service by an individual in a position qualifying under 
                paragraph (3), 15 percent of the total amount of 
                principal and interest of the loans described in 
                paragraph (1) to such individual that are outstanding 
                immediately preceding such first year of such service;
                    ``(B) after each of the third and fourth years of 
                such service, 20 percent of such total amount; and
                    ``(C) after the fifth year of such service, 30 
                percent of such total amount.''.
            (2) Direct loans.--Section 460(c) of the Higher Education 
        Act of 1965 (20 U.S.C. 1087j(c)) is amended by adding at the 
        end the following:
            ``(4) Annual increments.--Notwithstanding paragraph (1), in 
        the case of an individual qualifying for loan cancellation 
        under paragraph (3), the Secretary shall, in lieu of waiting to 
        assume an obligation only upon completion of 5 complete years 
        of service, assume the obligation to repay--
                    ``(A) after each of the first and second years of 
                service by an individual in a position qualifying under 
                paragraph (3), 15 percent of the total amount of 
                principal and interest of the loans described in 
                paragraph (1) to such individual that are outstanding 
                immediately preceding such first year of such service;
                    ``(B) after each of the third and fourth years of 
                such service, 20 percent of such total amount; and
                    ``(C) after the fifth year of such service, 30 
                percent of such total amount.''.

             TITLE II--CLOSING THE TEACHER DISTRIBUTION GAP

SEC. 201. GRANTS TO LOCAL EDUCATIONAL AGENCIES TO PROVIDE PREMIUM PAY 
              TO TEACHERS IN HIGH-NEED SCHOOLS.

    Title II of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6601 et seq.) is amended by adding at the end the following:

             ``PART E--TEACHER EXCELLENCE FOR ALL CHILDREN

``SEC. 2500. DEFINITIONS.

    ``In this part:
            ``(1) The term `high-need local educational agency' means a 
        local educational agency--
                    ``(A) that serves not fewer than 10,000 children 
                from families with incomes below the poverty line, or 
                for which not less than 20 percent of the children 
                served by the agency are from families with incomes 
                below the poverty line; and
                    ``(B) that is having or expected to have difficulty 
                filling teacher vacancies or hiring new teachers who 
                are highly qualified.
            ``(2) The term `value-added longitudinal data system' means 
        a longitudinal data system for determining value-added student 
        achievement gains.
            ``(3) The term `value-added student achievement gains' 
        means student achievement gains determined by means of a system 
        that--
                    ``(A) is sufficiently sophisticated and valid--
                            ``(i) to deal with the problem of students 
                        with incomplete records;
                            ``(ii) to enable estimates to be precise 
                        and to use all the data for all students in 
                        multiple years, regardless of sparseness, in 
                        order to avoid measurement error in test scores 
                        (such as by using multivariate, longitudinal 
                        analyses); and
                            ``(iii) to protect against inappropriate 
                        testing practices or improprieties in test 
                        administration;
                    ``(B) includes a way to acknowledge the existence 
                of influences on student growth, such as pull-out 
                programs for support beyond standard delivery of 
                instruction, so that affected teachers do not receive 
                an unfair advantage; and
                    ``(C) has the capacity to assign various 
                proportions of student growth to multiple teachers when 
                the classroom reality, such as team teaching and 
                departmentalized instruction, makes such type of 
                instruction an issue.

                       ``Subpart 1--Distribution

``SEC. 2501. PREMIUM PAY; LOAN REPAYMENT.

    ``(a) Grants.--The Secretary shall make grants to local educational 
agencies to provide higher salaries to exemplary, highly qualified 
principals and exemplary, highly qualified teachers with at least 3 
years of experience, including teachers certified by the National Board 
for Professional Teaching Standards, if the principal or teacher agrees 
to serve full-time for a period of 4 consecutive school years at a 
public high-need elementary school or a public high-need secondary 
school.
    ``(b) Use of Funds.--A local educational agency that receives a 
grant under this section may use funds made available through the 
grant--
            ``(1) to provide to exemplary, highly qualified principals 
        up to $15,000 as an annual bonus for each of 4 consecutive 
        school years if the principal commits to work full-time for 
        such period in a public high-need elementary school or a public 
        high-need secondary school; and
            ``(2) to provide to exemplary, highly qualified teachers--
                    ``(A) up to $10,000 as an annual bonus for each of 
                4 consecutive school years if the teacher commits to 
                work full-time for such period in a public high-need 
                elementary school or a public high-need secondary 
                school; or
                    ``(B) up to $12,500 as an annual bonus for each of 
                4 consecutive school years if the teacher commits to 
                work full-time for such period teaching a subject for 
                which there is a documented shortage of teachers in a 
                public high-need elementary school or a public high-
                need secondary school.
    ``(c) Timing of Payment.--A local educational agency providing an 
annual bonus to a principal or teacher under subsection (b) shall pay 
the bonus on completion of the service requirement by the principal or 
teacher for the applicable year.
    ``(d) Grant Period.--The Secretary shall make grants under this 
section in yearly installments for a total period of 4 years.
    ``(e) Observation, Feedback, and Evaluation.--The Secretary may 
make a grant to a local educational agency under this section only if 
the State in which the agency is located or the agency has in place or 
proposes a plan, developed on a collaborative basis with the local 
teacher organization, to develop a system in which principals and, if 
available, master teachers rate teachers as exemplary. Such a system 
shall be--
            ``(1) based on strong learning gains for students;
            ``(2) based on classroom observation and feedback at least 
        four times annually;
            ``(3) conducted by multiple sources, including master 
        teachers and principals; and
            ``(4) evaluated against research-validated rubrics that use 
        planning, instructional, and learning environment standards to 
        measure teaching performance.
    ``(f) Application Requirements.--To seek a grant under this 
section, a local educational agency shall submit an application at such 
time, in such manner, and containing such information as the Secretary 
reasonably requires. At a minimum, the application shall include the 
following:
            ``(1) A description of the agency's proposed new teacher 
        hiring timeline, including interim goals for any phase-in 
        period.
            ``(2) An assurance that the agency will--
                    ``(A) pay matching funds for the program carried 
                out with the grant, which matching funds may be derived 
                from funds received under other provisions of this 
                title;
                    ``(B) commit to making the program sustainable over 
                time;
                    ``(C) create incentives to bring a critical mass of 
                exemplary, highly qualified teachers to each school 
                whose teachers will receive assistance under this 
                section;
                    ``(D) improve the school's working conditions 
                through activities that may include but are not limited 
                to--
                            ``(i) reducing class size;
                            ``(ii) ensuring availability of classroom 
                        materials, textbooks, and other supplies;
                            ``(iii) improving or modernizing 
                        facilities; and
                            ``(iv) upgrading safety; and
                    ``(E) accelerate the timeline for hiring new 
                teachers in order to minimize the withdrawal of high-
                quality teacher applicants and secure the best new 
                teacher talent for their hardest-to-staff schools.
            ``(3) An assurance that, in identifying exemplary teachers, 
        the system described in paragraph (1) will take into 
        consideration--
                    ``(A) growth of the teacher's students on any tests 
                required by the State educational agency;
                    ``(B) value-added student achievement gains if such 
                teacher is in a State that uses a value-added 
                longitudinal data system;
                    ``(C) National Board for Professional Teaching 
                Standards certification; and
                    ``(D) evidence of teaching skill documented in 
                performance-based assessments.
    ``(g) Hiring Highly Qualified Teachers Early and in a Timely 
Manner.--
            ``(1) In general.--In addition to the requirements of 
        subsection (f), an application under such subsection shall 
        include a description of the steps the local educational agency 
        will take to enable all or a subset of the agency's schools to 
        hire new highly qualified teachers early and in a timely 
        manner, including--
                    ``(A) requiring a clear and early notification date 
                for retiring teachers that is no later than March 15 
                each year;
                    ``(B) providing schools with their staffing 
                allocations no later than April of the preceding school 
                year;
                    ``(C) enabling schools to consider external 
                candidates at the same time as internal candidates for 
                available positions;
                    ``(D) moving up the teacher transfer period to 
                April and not requiring schools to hire transferring or 
                `excessed' teachers from other schools without 
                selection and consent; and
                    ``(E) establishing and implementing a new principal 
                accountability framework to ensure that principals with 
                increased hiring authority are improving teacher 
                quality.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to alter or otherwise affect the rights, 
        remedies, and procedures afforded school or district employees 
        under Federal, State, or local laws (including applicable 
        regulations or court orders) or under the terms of collective 
        bargaining agreements, memoranda of understanding, or other 
        agreements between such employees and their employers.
    ``(h) Priority.--In providing higher salaries to principals and 
teachers under this section, a local educational agency shall give 
priority to principals and teachers at schools identified under section 
1116 for school improvement, corrective action, or restructuring.
    ``(i) Definitions.--In this section:
            ``(1) The term `high-need' means, with respect to an 
        elementary school or a secondary school, a school that serves 
        an eligible school attendance area in which not less than 65 
        percent of the children are from low-income families, based on 
        the number of children eligible for free and reduced priced 
        lunches under the Richard B. Russell National School Lunch Act, 
        or in which not less than 65 percent of the children enrolled 
        are from such families.
            ``(2) The term `documented shortage of teachers'--
                    ``(A) means a shortage of teachers documented in 
                the needs assessment submitted under section 2122 by 
                the local educational agency involved or some other 
                official demonstration of shortage by the local 
                education agency; and
                    ``(B) may include such a shortage in mathematics, 
                science, a foreign language, special education, 
                bilingual education, or reading.
            ``(3) The term `exemplary, highly qualified principal' 
        means a principal who--
                    ``(A) demonstrates a belief that every student can 
                achieve at high levels;
                    ``(B) demonstrates an ability to drive substantial 
                gains in academic achievement for all students while 
                closing the achievement gap for those farthest from 
                meeting standards;
                    ``(C) uses data to drive instructional improvement;
                    ``(D) provides ongoing support and development for 
                teachers; and
                    ``(E) builds a positive school community, treating 
                every student with respect and reinforcing high 
                expectations for all.
            ``(4) The term `exemplary, highly qualified teacher' means 
        a highly qualified teacher who is rated as exemplary pursuant 
        to a system described in subsection (e).
    ``(j) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated $2,200,000,000 for fiscal year 
2006 and such sums as may be necessary for each of the 5 succeeding 
fiscal years.

``SEC. 2502. CAREER LADDERS FOR TEACHERS PROGRAM.

    ``(a) Grants.--The Secretary may make grants to local educational 
agencies to establish and implement a Career Ladders for Teachers 
Program in which the agency--
            ``(1) augments the salary of teachers in high-need 
        elementary schools and high-need secondary schools to 
        correspond to the increasing responsibilities and leadership 
        roles assumed by the teachers as they take on new professional 
        roles (such as serving on school leadership teams, serving as 
        instructional coaches, and serving in hybrid roles), including 
        by--
                    ``(A) providing up to $10,000 as an annual 
                augmentation to master teachers (including teachers 
                serving as master teachers as part of a state-of the-
                art teacher induction program under section 2511); and
                    ``(B) providing up to $5,000 as an annual 
                augmentation to mentor teachers (including teachers 
                serving as mentor teachers as part of a state-of-the-
                art teacher induction program under section 2511);
            ``(2) provides up to $4,000 as an annual bonus to all 
        career teachers, master teachers, and mentor teachers in high-
        need elementary schools and high-need secondary schools based 
        on a combination of--
                    ``(A) at least 3 classroom evaluations over the 
                course of the year that shall--
                            ``(i) be conducted by multiple evaluators, 
                        including master teachers and the principal;
                            ``(ii) be based on classroom observation at 
                        least 3 times annually; and
                            ``(iii) be evaluated against research-
                        validated benchmarks that use planning, 
                        instructional, and learning environment 
                        standards to measure teacher performance; and
                    ``(B) the performance of the teacher's students as 
                determined by--
                            ``(i) student growth on any test that is 
                        required by the State educational agency or 
                        local educational agency and is administered to 
                        the teacher's students; or
                            ``(ii) in States or local educational 
                        agencies with value-added longitudinal data 
                        systems, whole-school value-added student 
                        achievement gains and classroom-level value-
                        added student achievement gains; or
            ``(3) provides up to $4,000 as an annual bonus to 
        principals in elementary schools and secondary schools based on 
        the performance of the school's students, taking into 
        consideration whole-school value-added student achievement 
        gains in States that have value-added longitudinal data systems 
        and in which information on whole-school value-added student 
        achievement gains is available.
    ``(b) Eligibility Requirement.--A local educational agency may not 
use any funds under this section to establish or implement a Career 
Ladders for Teachers Program unless--
            ``(1) the percentage of teachers required by prevailing 
        union rules votes affirmatively to adopt the program; or
            ``(2) in States that do not recognize collective bargaining 
        between local educational agencies and teacher organizations, 
        at least 75 percent of the teachers in the local educational 
        agency vote affirmatively to adopt the program.
    ``(c) Definitions.--In this section:
            ``(1) The term `career teacher' means a teacher who has a 
        bachelor's degree and full credentials or alternative 
        certification including a passing level on elementary or 
        secondary subject matter assessments and professional knowledge 
        assessments.
            ``(2) The term `mentor teacher' means a teacher who--
                    ``(A) has a bachelor's degree and full credentials 
                or alternative certification including a passing level 
                on any applicable elementary or secondary subject 
                matter assessments and professional knowledge 
                assessments;
                    ``(B) has a portfolio and a classroom demonstration 
                showing instructional excellence;
                    ``(C) has an ability, as demonstrated by student 
                data, to increase student achievement through utilizing 
                specific instructional strategies;
                    ``(D) has a minimum of 3 years of teaching 
                experience;
                    ``(E) is recommended by the principal and other 
                current master and mentor teachers;
                    ``(F) is an excellent instructor and communicator 
                with an understanding of how to facilitate growth in 
                the teachers the teacher is mentoring; and
                    ``(G) performs well as a mentor in established 
                induction and peer review and mentoring programs.
            ``(3) The term `master teacher' means a teacher who--
                    ``(A) holds a master's degree in the relevant 
                academic discipline;
                    ``(B) has at least 5 years of successful teaching 
                experience, as measured by performance evaluations, a 
                portfolio of work, or National Board for Professional 
                Teaching Standards certification;
                    ``(C) demonstrates expertise in content, curriculum 
                development, student learning, test analysis, 
                mentoring, and professional development, as 
                demonstrated by an advanced degree, advanced training, 
                career experience, or National Board for Professional 
                Teaching Standards certification;
                    ``(D) presents student data that illustrates the 
                teacher's ability to increase student achievement 
                through utilizing specific instructional interventions;
                    ``(E) has instructional expertise demonstrated 
                through model teaching, team teaching, video 
                presentations, student achievement gains, or National 
                Board for Professional Teaching Standards 
                certification;
                    ``(F) may hold a valid National Board for 
                Professional Teaching Standards certificate, may have 
                passed another rigorous standard, or may have been 
                selected as a school, district, or State teacher of the 
                year; and
                    ``(G) is currently participating, or has previously 
                participated, in a professional development program 
                that supports classroom teachers as mentors.
            ``(4) The term `high-need', with respect to an elementary 
        school or a secondary school, has the meaning given to that 
        term in section 2501.
    ``(d) Authorization of Appropriations.--To carry out this section, 
there is authorized to be appropriated $200,000,000 for fiscal year 
2006 and such sums as may be necessary for each of the 5 succeeding 
fiscal years.''.

                TITLE III--IMPROVING TEACHER PREPARATION

SEC. 301. AMENDMENT TO ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965.

    Part E of title II of the Elementary and Secondary Education Act of 
1965, as added by title II of this Act, is amended by adding at the end 
the following:

                        ``Subpart 2--Preparation

``SEC. 2511. ESTABLISHING STATE-OF-THE-ART TEACHER INDUCTION PROGRAMS.

    ``(a) Grants.--The Secretary may make grants to States and eligible 
local educational agencies for the purpose of developing state-of-the-
art teacher induction programs.
    ``(b) Eligible Local Educational Agency.--In this section, the term 
`eligible local educational agency' means--
            ``(1) a high-need local educational agency; or
            ``(2) a partnership of a high-need local educational agency 
        and an institution of higher education, a teacher organization, 
        or any other nonprofit education organization.
    ``(c) Use of Funds.--A State or an eligible local educational 
agency that receives a grant under subsection (a) shall use the funds 
made available through the grant to develop a state-of the-art teacher 
induction program that--
            ``(1) provides new teachers a minimum of 3 years of 
        extensive, high-quality, comprehensive induction into the field 
        of teaching; and
            ``(2) includes--
                    ``(A) structured mentoring from highly qualified 
                master or mentor teachers who are certified, have 
                teaching experience similar to the grade level or 
                subject assignment of the new teacher, and are trained 
                to mentor new teachers;
                    ``(B) at least 90 minutes each week of common 
                meeting time for a new teacher to discuss student work 
                and teaching under the director of a master or mentor 
                teacher;
                    ``(C) regular classroom observation in the new 
                teacher's classroom;
                    ``(D) observation by the new teacher of the mentor 
                teacher's classroom;
                    ``(E) intensive professional development activities 
                for new teachers that result in improved teaching 
                leading to student achievement, including lesson 
                demonstration by master and mentor teachers in the 
                classroom, observation, and feedback;
                    ``(F) training in effective instructional services 
                and classroom management strategies for mainstream 
                teachers serving students with disabilities and 
                students with limited English proficiency;
                    ``(G) observation of teachers and feedback at least 
                4 times each school year by multiple evaluators, 
                including master teachers and the principals, using 
                research-validated benchmarks of teaching skills and 
                standards that are developed with input from teachers;
                    ``(H) paid release time for the mentor teacher for 
                mentoring, or salary supplements under section 2502, 
                for mentoring new teachers at a ratio of one full-time 
                mentor to every 12 new teachers;
                    ``(I) a transition year to the classroom that 
                includes a reduced workload for beginning teachers; and
                    ``(J) a standards-based assessment of every 
                beginning teacher to determine whether the teacher 
                should move forward in the teaching profession, which 
                assessment may include examination of practice and a 
                measure of gains in student learning.
    ``(d) Additional Requirement.--The Secretary shall commission an 
independent evaluation of state-of the-art teacher induction programs 
supported under this section in order to compare the design and outcome 
of various models of induction programs.
    ``(e) Authorization of Appropriations.--To carry out this section, 
there is authorized to be appropriated $300,000,000 for fiscal year 
2006 and such sums as may be necessary for each of the 5 succeeding 
fiscal years.

``SEC. 2512. PEER MENTORING AND REVIEW PROGRAMS.

    ``(a) Grants.--The Secretary shall make grants to local educational 
agencies for peer mentoring and review programs.
    ``(b) Use of Funds.--A local educational agency that receives a 
grant under this section shall use the funds made available through the 
grant to establish and implement a peer mentoring and review program. 
Such a program shall be established through collective bargaining 
agreements or, in States that do not recognize collective bargaining 
between local educational agencies and teacher organizations, through 
joint agreements between the local educational agency and affected 
teacher organizations.
    ``(c) Application.--To seek a grant under this section, a local 
educational agency shall submit an application at such time, in such 
manner, and containing such information as the Secretary may reasonably 
require. The Secretary shall require each such application to include 
the following:
            ``(1) Data from the applicant on recruitment and retention 
        prior to implementing the induction program.
            ``(2) Measurable goals for increasing retention after the 
        induction program is implemented.
            ``(3) Measures that will be used to determine whether 
        teacher effectiveness is improved through participation in the 
        induction program.
            ``(4) A plan for evaluating and reporting progress toward 
        meeting the applicant's goals.
    ``(d) Progress Reports.--The Secretary shall require each grantee 
under this section to submit progress reports on an annual basis.
    ``(e) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated $50,000,000 for fiscal year 
2006 and such sums as may be necessary for each of the 5 succeeding 
fiscal years.

``SEC. 2513. ESTABLISHING STATE-OF-THE-ART PRINCIPAL TRAINING AND 
              INDUCTION PROGRAMS AND PERFORMANCE-BASED PRINCIPAL 
              CERTIFICATION.

    ``(a) Grants.--The Secretary may make grants to not more than 10 
States to develop, implement, and evaluate pilot programs for 
performance-based certification and training of exemplary, highly 
qualified principals who can drive gains in academic achievement for 
all children.
    ``(b) Program Requirements.--A pilot program developed under this 
section--
            ``(1) shall pilot the development, implementation, and 
        evaluation of a statewide performance-based system for 
        certifying principals;
            ``(2) shall pilot and demonstrate the effectiveness of 
        statewide performance-based certification through support for 
        innovative performance-based programs on a smaller scale;
            ``(3) shall provide for certification of principals by 
        institutions with strong track records, such as a local 
        educational agency, nonprofit organization, or business school, 
        that is approved by the State for purposes of such 
        certification and has formalized partnerships with in-State 
        local educational agencies;
            ``(4) may be used to develop, sustain, and expand model 
        programs for recruiting and training aspiring and new 
        principals in both instructional leadership and general 
        management skills;
            ``(5) shall include evaluation of the results of the pilot 
        program and other in-State programs of principal preparation 
        (which evaluation may include value-added assessment scores of 
        all children in a school and should emphasize the correlation 
        of academic achievement gains in schools led by participating 
        principals and the characteristics and skills demonstrated by 
        those individuals when applying to and participating in the 
        program) to inform the design of certification of individuals 
        to become school leaders in the State; and
            ``(6) shall make possible interim certification for up to 2 
        years for aspiring principals participating in the pilot 
        program who--
                    ``(A) have not yet attained full certification;
                    ``(B) are serving as assistant principals or 
                principal residents, or in positions of similar 
                responsibility; and
                    ``(C) have met clearly defined criteria for entry 
                into the program that are approved by the applicable 
                local educational agency.
    ``(c) Priority.--In selecting grant recipients under this section, 
the Secretary shall give priority to States that will use the grants 
for one or more high-need local educational agencies and schools.
    ``(d) Terms of Grant.--A grant under this section--
            ``(1) shall be for not more than 5 years; and
            ``(2) shall be performance-based, permitting the Secretary 
        to discontinue funding based on failure of the State to meet 
        benchmarks identified by the State.
    ``(e) Use of Evaluation Results.--A State receiving a grant under 
this section shall use the evaluation results of the pilot program 
conducted pursuant to the grant and similar evaluations of other in-
State programs of principal preparation (especially the correlation of 
academic achievement gains in schools led by participating principals 
and the characteristics and skills demonstrated by those individuals 
when applying to and participating in the pilot program) to inform the 
design of certification of individuals to become school leaders in the 
State.
    ``(f) Definitions.--For the purposes of this section:
            ``(1) The term `exemplary, highly qualified principal' has 
        the meaning given to that term in section 2501.
            ``(2) The term `performance-based certification system' 
        means a certification system that--
                    ``(A) is based on a clearly defined set of 
                standards for skills and knowledge needed by new 
                principals;
                    ``(B) is not based on numbers of hours enrolled in 
                particular courses;
                    ``(C) certifies participating individuals to become 
                school leaders primarily based on--
                            ``(i) their demonstration of those skills 
                        through a formal assessment aligned to these 
                        standards; and
                            ``(ii) academic achievement results in a 
                        school leadership role such as a residency or 
                        an assistant principalship; and
                    ``(D) awards certification to individuals who 
                successfully complete programs at institutions that 
                include local educational agencies, nonprofit 
                organizations, and business schools approved by the 
                State for purposes of such certification and have 
                formalized partnerships with in-State local educational 
                agencies.
    ``(g) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated $100,000,000 for fiscal year 
2006 and such sums as may be necessary for each of the 5 succeeding 
fiscal years.

``SEC. 2514. STUDY ON DEVELOPING A PORTABLE PERFORMANCE-BASED TEACHER 
              ASSESSMENT.

    ``(a) Study.--
            ``(1) In general.--The Secretary shall enter into an 
        arrangement with an objective evaluation firm to conduct a 
        study to assess the validity of any test used for teacher 
        certification or licensure by multiple States, taking into 
        account the passing scores adopted by multiple States. The 
        study shall determine the following:
                    ``(A) The extent to which tests of content 
                knowledge represent subject mastery at the 
                baccalaureate level.
                    ``(B) Whether tests of pedagogy reflect the latest 
                research on teaching and learning.
                    ``(C) The relationship, if any, between teachers' 
                scores on licensure and certification exams and other 
                measures of teacher effectiveness, including learning 
                gains achieved by the teachers' students.
            ``(2) Report.--The Secretary shall submit a report to the 
        Congress on the results of the study conducted under this 
        subsection.
    ``(b) Grant to Create a Model Performance-based Assessment.--
            ``(1) Grant.--The Secretary may make 1 grant to an eligible 
        partnership to create a model performance-based assessment of 
        teaching skills that reliably evaluates teaching skills in 
        practice and can be used to facilitate the portability of 
        teacher credentials and licensing from one State to another.
            ``(2) Consideration of study.--In creating a model 
        performance-based assessment of teaching skills, the recipient 
        of a grant under this section shall take into consideration the 
        results of the study conducted under subsection (a).
            ``(3) Eligible partnership.--In this section, the term 
        `eligible partnership' means a partnership of--
                    ``(A) an independent professional organization; and
                    ``(B) an organization that represents 
                administrators of State educational agencies.''.

SEC. 302. AMENDMENT TO THE HIGHER EDUCATION ACT OF 1965: TEACHER 
              QUALITY ENHANCEMENT GRANTS.

    Part A of title II of the Higher Education Act of 1965 is amended 
by striking sections 206 through 209 (20 U.S.C. 1026-1029) and 
inserting the following:

``SEC. 206. ACCOUNTABILITY AND EVALUATION.

    ``(a) State Grant Accountability Report.--An eligible State that 
receives a grant under section 202 shall submit an annual 
accountability report to the Secretary, the Committee on Health, 
Education, Labor, and Pensions of the Senate, and the Committee on 
Education and the Workforce of the House of Representatives. Such 
report shall include a description of the degree to which the eligible 
State, in using funds provided under such section, has made substantial 
progress in meeting the following goals:
            ``(1) Percentage of highly qualified teachers.--Increasing 
        the percentage of highly qualified teachers in the State as 
        required by section 1119 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6319).
            ``(2) Student academic achievement.--Increasing student 
        academic achievement for all students, which may be measured 
        through the use of value-added assessments, as defined by the 
        eligible State.
            ``(3) Raising standards.--Raising the State academic 
        standards required to enter the teaching profession as a highly 
        qualified teacher.
            ``(4) Initial certification or licensure.--Increasing 
        success in the pass rate for initial State teacher 
        certification or licensure, or increasing the numbers of 
        qualified individuals being certified or licensed as teachers 
        through alternative routes to certification and licensure.
            ``(5) Decreasing teacher shortages.--Decreasing shortages 
        of highly qualified teachers in poor urban and rural areas.
            ``(6) Increasing opportunities for research-based 
        professional development.--Increasing opportunities for 
        enhanced and ongoing professional development that--
                    ``(A) improves the academic content knowledge of 
                teachers in the subject areas in which the teachers are 
                certified or licensed to teach or in which the teachers 
                are working toward certification or licensure to teach; 
                and
                    ``(B) promotes strong teaching skills.
            ``(7) Technology integration.--Increasing the number of 
        teachers prepared effectively to integrate technology into 
        curricula and instruction and who use technology to collect, 
        manage, and analyze data to improve teaching, learning, and 
        parental involvement decisionmaking for the purpose of 
        increasing student academic achievement.
    ``(b) Eligible Partnership Evaluation.--Each eligible partnership 
applying for a grant under section 203 shall establish, and include in 
the application submitted under section 203(c), an evaluation plan that 
includes strong performance objectives. The plan shall include 
objectives and measures for--
            ``(1) increased student achievement for all students, as 
        measured by the partnership;
            ``(2) increased teacher retention in the first 3 years of a 
        teacher's career;
            ``(3) increased success in the pass rate for initial State 
        certification or licensure of teachers;
            ``(4) increased percentage of highly qualified teachers; 
        and
            ``(5) increasing the number of teachers trained effectively 
        to integrate technology into curricula and instruction and who 
        use technology to collect, manage, and analyze data to improve 
        teaching, learning, and decisionmaking for the purpose of 
        improving student academic achievement.
    ``(c) Revocation of Grant.--
            ``(1) Report.--Each eligible State or eligible partnership 
        receiving a grant under section 202 or 203 shall report 
        annually on the progress of the eligible State or eligible 
        partnership toward meeting the purposes of this part and the 
        goals, objectives, and measures described in subsections (a) 
        and (b).
            ``(2) Revocation.--
                    ``(A) Eligible states and eligible applicants.--If 
                the Secretary determines that an eligible State or 
                eligible applicant is not making substantial progress 
                in meeting the purposes, goals, objectives, and 
                measures, as appropriate, by the end of the second year 
                of a grant under this part, then the grant payment 
                shall not be made for the third year of the grant.
                    ``(B) Eligible partnerships.--If the Secretary 
                determines that an eligible partnership is not making 
                substantial progress in meeting the purposes, goals, 
                objectives, and measures, as appropriate, by the end of 
                the third year of a grant under this part, then the 
                grant payments shall not be made for any succeeding 
                year of the grant.
    ``(d) Evaluation and Dissemination.--The Secretary shall evaluate 
the activities funded under this part and report annually the 
Secretary's findings regarding the activities to the Committee on 
Health, Education, Labor, and Pensions of the Senate and the Committee 
on Education and the Workforce of the House of Representatives. The 
Secretary shall broadly disseminate successful practices developed by 
eligible States and eligible partnerships under this part, and shall 
broadly disseminate information regarding such practices that were 
found to be ineffective.

``SEC. 207. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE TEACHERS.

    ``(a) State Report Card on the Quality of Teacher and Principal 
Preparation.--Each State that receives funds under this Act shall 
provide to the Secretary annually, in a uniform and comprehensible 
manner that conforms with the definitions and methods established by 
the Secretary, a State report card on the quality of teacher 
preparation in the State, both for traditional certification or 
licensure programs and for alternative certification or licensure 
programs, which shall include at least the following:
            ``(1) A description of the teacher and principal 
        certification and licensure assessments, and any other 
        certification and licensure requirements, used by the State.
            ``(2) The standards and criteria that prospective teachers 
        and principals must meet in order to attain initial teacher and 
        principal certification or licensure and to be certified or 
        licensed to teach particular subjects or in particular grades 
        within the State.
            ``(3) A demonstration of the extent to which the 
        assessments and requirements described in paragraph (1) are 
        aligned with the State's standards and assessments for 
        students.
            ``(4) The percentage of students who have completed the 
        clinical coursework for a teacher preparation program at an 
        institution of higher education or alternative certification 
        program and who have taken and passed each of the assessments 
        used by the State for teacher certification and licensure, and 
        the passing score on each assessment that determines whether a 
        candidate has passed that assessment.
            ``(5) For students who have completed the clinical 
        coursework for a teacher preparation program at an institution 
        of higher education or alternative certification program, and 
        who have taken and passed each of the assessments used by the 
        State for teacher certification and licensure, each such 
        institution's and each such program's average raw score, ranked 
        by teacher preparation program, which shall be made available 
        widely and publicly.
            ``(6) A description of each State's alternative routes to 
        teacher certification, if any, and the number and percentage of 
        teachers certified through each alternative certification route 
        who pass State teacher certification or licensure assessments.
            ``(7) For each State, a description of proposed criteria 
        for assessing the performance of teacher and principal 
        preparation programs in the State, including indicators of 
        teacher and principal candidate skills, placement, and 
        retention rates (to the extent feasible), and academic content 
        knowledge and evidence of gains in student academic 
        achievement.
            ``(8) For each teacher preparation program in the State, 
        the number of students in the program, the number of minority 
        students in the program, the average number of hours of 
        supervised practice teaching required for those in the program, 
        and the number of full-time equivalent faculty, adjunct 
        faculty, and students in supervised practice teaching.
            ``(9) For the State as a whole, and for each teacher 
        preparation program in the State, the number of teachers 
        prepared, in the aggregate and reported separately by--
                    ``(A) level (elementary or secondary);
                    ``(B) academic major;
                    ``(C) subject or subjects for which the student has 
                been prepared to teach; and
                    ``(D) teacher candidates who speak a language other 
                than English and have been trained specifically to 
                teach English-language learners.
            ``(10) The State shall refer to the data generated for 
        paragraphs (8) and (9) to report on the extent to which teacher 
        preparation programs are helping to address shortages of 
        qualified teachers, by level, subject, and specialty, in the 
        State's public schools, especially in poor urban and rural 
        areas as required by section 206(a)(5).
    ``(b) Report of the Secretary on the Quality of Teacher 
Preparation.--
            ``(1) Report card.--The Secretary shall provide to 
        Congress, and publish and make widely available, a report card 
        on teacher qualifications and preparation in the United States, 
        including all the information reported in paragraphs (1) 
        through (10) of subsection (a). Such report shall identify 
        States for which eligible States and eligible partnerships 
        received a grant under this part. Such report shall be so 
        provided, published and made available annually.
            ``(2) Report to congress.--The Secretary shall report to 
        Congress--
                    ``(A) a comparison of States' efforts to improve 
                teaching quality; and
                    ``(B) regarding the national mean and median scores 
                on any standardized test that is used in more than 1 
                State for teacher certification or licensure.
            ``(3) Special rule.--In the case of programs with fewer 
        than 10 students who have completed the clinical coursework for 
        a teacher preparation program taking any single initial teacher 
        certification or licensure assessment during an academic year, 
        the Secretary shall collect and publish information with 
        respect to an average pass rate on State certification or 
        licensure assessments taken over a 3-year period.
    ``(c) Coordination.--The Secretary, to the extent practicable, 
shall coordinate the information collected and published under this 
part among States for individuals who took State teacher certification 
or licensure assessments in a State other than the State in which the 
individual received the individual's most recent degree.
    ``(d) Institution and Program Report Cards on Quality of Teacher 
Preparation.--
            ``(1) Report card.--Each institution of higher education or 
        alternative certification program that conducts a teacher 
        preparation program that enrolls students receiving Federal 
        assistance under this Act shall report annually to the State 
        and the general public, in a uniform and comprehensible manner 
        that conforms with the definitions and methods established by 
        the Secretary, both for traditional certification or licensure 
        programs and for alternative certification or licensure 
        programs, the following information, disaggregated by major 
        racial and ethnic groups:
                    ``(A) Pass rate.--(i) For the most recent year for 
                which the information is available, the pass rate of 
                each student who has completed the clinical coursework 
                for the teacher preparation program on the teacher 
                certification or licensure assessments of the State in 
                which the institution is located, but only for those 
                students who took those assessments within 3 years of 
                receiving a degree from the institution or completing 
                the program.
                    ``(ii) A comparison of the institution or program's 
                pass rate for students who have completed the clinical 
                coursework for the teacher preparation program with the 
                average pass rate for institutions and programs in the 
                State.
                    ``(iii) In the case of programs with fewer than 10 
                students who have completed the clinical coursework for 
                a teacher preparation program taking any single initial 
                teacher certification or licensure assessment during an 
                academic year, the institution shall collect and 
                publish information with respect to an average pass 
                rate on State certification or licensure assessments 
                taken over a 3-year period.
                    ``(B) Program information.--The number of students 
                in the program, the average number of hours of 
                supervised practice teaching required for those in the 
                program, and the number of full-time equivalent faculty 
                and students in supervised practice teaching.
                    ``(C) Statement.--In States that require approval 
                or accreditation of teacher education programs, a 
                statement of whether the institution's program is so 
                approved or accredited, and by whom.
                    ``(D) Designation as low-performing.--Whether the 
                program has been designated as low-performing by the 
                State under section 208(a).
            ``(2) Requirement.--The information described in paragraph 
        (1) shall be reported through publications such as school 
        catalogs and promotional materials sent to potential 
        applicants, secondary school guidance counselors, and 
        prospective employers of the institution's program graduates, 
        including materials sent by electronic means.
            ``(3) Fines.--In addition to the actions authorized in 
        section 487(c), the Secretary may impose a fine not to exceed 
        $25,000 on an institution of higher education for failure to 
        provide the information described in this subsection in a 
        timely or accurate manner.
    ``(e) Data Quality.--Either--
            ``(1) the Governor of the State; or
            ``(2) in the case of a State for which the constitution or 
        law of such State designates another individual, entity, or 
        agency in the State to be responsible for teacher certification 
        and preparation activity, such individual, entity, or agency;
shall attest annually, in writing, as to the reliability, validity, 
integrity, and accuracy of the data submitted pursuant to this section.

``SEC. 208. STATE FUNCTIONS.

    ``(a) State Assessment.--In order to receive funds under this Act, 
a State shall have in place a procedure to identify and assist, through 
the provision of technical assistance, low-performing programs of 
teacher preparation within institutions of higher education. Such State 
shall provide the Secretary an annual list of such low-performing 
institutions that includes an identification of those institutions at 
risk of being placed on such list. Such levels of performance shall be 
determined solely by the State and may include criteria based upon 
information collected pursuant to this part. Such assessment shall be 
described in the report under section 207(a). A State receiving Federal 
funds under this title shall develop plans to close or reconstitute 
underperforming programs of teacher preparation within institutions of 
higher education.
    ``(b) Termination of Eligibility.--Any institution of higher 
education that offers a program of teacher preparation in which the 
State has withdrawn the State's approval or terminated the State's 
financial support due to the low performance of the institution's 
teacher preparation program based upon the State assessment described 
in subsection (a)--
            ``(1) shall be ineligible for any funding for professional 
        development activities awarded by the Department of Education; 
        and
            ``(2) shall not be permitted to accept or enroll any 
        student who receives aid under title IV of this Act in the 
        institution's teacher preparation program.

``SEC. 209. GENERAL PROVISIONS.

    ``In complying with sections 207 and 208, the Secretary shall 
ensure that States and institutions of higher education use fair and 
equitable methods in reporting and that the reporting methods do not 
allow identification of individuals.''.

SEC. 303. ENFORCING NCLB'S TEACHER EQUITY PROVISION.

    Subpart 2 of part E of title IX of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7901 et seq.) is amended by adding at 
the end the following:

``SEC. 9537. ASSURANCE OF REASONABLE PROGRESS TOWARD EQUITABLE ACCESS 
              TO TEACHER QUALITY.

    ``(a) In General.--The Secretary may not provide any assistance to 
a State under this Act unless, in the State's application for such 
assistance, the State--
            ``(1) provides the plan required by section 1111(b)(8)(C) 
        and at least one public report pursuant to that section;
            ``(2) clearly articulates the measures the State is using 
        to determine whether poor and minority students are being 
        taught disproportionately by inexperienced, unqualified, or 
        out-of-field teachers;
            ``(3) includes an evaluation of the success of the State's 
        plan required by section 1111(b)(8)(C) in addressing any such 
        disparities;
            ``(4) with respect to any such disparities, proposes 
        modifications to such plan; and
            ``(5) includes a description of the State's activities to 
        monitor the compliance of local educational agencies in the 
        State with section 1112(c)(1)(L).
    ``(b) Effective Date.--This section applies with respect to any 
assistance under this Act for which an application is submitted after 
the date of the enactment of this section.''.

TITLE IV--EQUIPPING TEACHERS, SCHOOLS, LOCAL EDUCATIONAL AGENCIES, AND 
  STATES WITH THE 21ST CENTURY DATA, TOOLS, AND ASSESSMENTS THEY NEED

SEC. 401. 21ST CENTURY DATA, TOOLS, AND ASSESSMENTS.

    Part E of title II of the Elementary and Secondary Education Act of 
1965, as added by titles II and III of this Act, is amended by adding 
at the end the following:

         ``Subpart 3--21st Century Data, Tools, and Assessments

``SEC. 2521. DEVELOPING VALUE-ADDED DATA SYSTEMS.

    ``(a) Teacher and Principal Evaluation.--
            ``(1) Grants.--The Secretary shall make grants to States to 
        develop and implement statewide data systems to collect and 
        analyze data on the effectiveness of elementary school and 
        secondary school teachers and principals, based on value-added 
        student achievement gains, for the purposes of--
                    ``(A) determining the distribution of effective 
                teachers and principals in schools across the State;
                    ``(B) developing measures for helping teachers and 
                principals to improve their instruction; and
                    ``(C) evaluating effectiveness of teacher and 
                principal preparation programs.
            ``(2) Data requirements.--At a minimum, a statewide data 
        system under this section shall--
                    ``(A) track student course-taking patterns and 
                teacher characteristics, such as certification status 
                and performance on licensure exams; and
                    ``(B) allow for the analysis of gains in 
                achievement made by individual students over time, 
                including gains demonstrated through student academic 
                assessments under section 1111 and tests required by 
                the State for course completion.
            ``(3) Standards.--The Secretary shall develop standards for 
        the collection of data with grant funds under this section to 
        ensure that such data are statistically valid and reliable.
            ``(4) Application.--To seek a grant under this section, a 
        State shall submit an application at such time, in such manner, 
        and containing such information as the Secretary may require. 
        At a minimum, each such application shall demonstrate to the 
        Secretary's satisfaction that the assessments used by the State 
        to collect and analyze data for purposes of this subsection--
                    ``(A) are aligned to State standards;
                    ``(B) have the capacity to assess the highest- and 
                lowest-performing students; and
                    ``(C) are statistically valid and reliable.
    ``(b) Teacher Training.--The Secretary may make grants to 
institutions of higher education, local educational agencies, nonprofit 
organizations, and teacher organizations to develop and implement 
innovative programs to provide preservice and in-service training to 
elementary and secondary schools on--
            ``(1) understanding increasingly sophisticated student 
        achievement data, especially data derived from value-added 
        longitudinal data systems; and
            ``(2) using such data to improve classroom instruction.
    ``(c) Study.--The Secretary shall enter into an agreement with the 
National Academy of Sciences--
            ``(1) to evaluate the quality of data on the effectiveness 
        of elementary and secondary school teachers, based on value-
        added student achievement gains; and
            ``(2) to compare a range of models for collecting and 
        analyzing such data.
    ``(d) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated $200,000,000 for the period of 
fiscal years 2006 and 2007 and such sums as may be necessary for each 
of the 4 succeeding fiscal years.''.

SEC. 402. COLLECTING NATIONAL DATA ON DISTRIBUTION OF TEACHERS.

    Section 155 of the Education Sciences Reform Act of 2002 (20 U.S.C. 
9545) is amended by adding at the end the following:
    ``(d) Schools and Staffing Survey.--Not later than the end of 
fiscal year 2006, and every 3 years thereafter, the Statistics 
Commissioner shall publish the results of the Schools and Staffing 
Survey (or any successor survey).''.

     TITLE V--RETENTION: KEEPING OUR BEST TEACHERS IN THE CLASSROOM

SEC. 501. AMENDMENT TO ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965.

    Part E of title II of the Elementary and Secondary Education Act of 
1965, as added by titles II, III, and IV of this Act, is amended by 
adding at the end the following:

             ``Subpart 4--Retention and Working Conditions

``SEC. 2531. IMPROVING PROFESSIONAL DEVELOPMENT OPPORTUNITIES.

    ``(a) Grants.--The Secretary may make grants to eligible entities 
for the establishment and operation of new teacher centers or the 
support of existing teacher centers.
    ``(b) Special Consideration.--In making grants under this section, 
the Secretary shall give special consideration to any application 
submitted by an eligible entity that is--
            ``(1) a high-need local educational agency; or
            ``(2) a consortium that includes at least one high-need 
        local educational agency.
    ``(c) Duration.--Each grant under this section shall be for a 
period of 3 years.
    ``(d) Required Activities.--A teacher center receiving assistance 
under this section shall carry out each of the following activities:
            ``(1) Providing high-quality professional development to 
        teachers to assist them in improving their knowledge, skills, 
        and teaching practices in order to help students to improve 
        their achievement and meet State academic standards.
            ``(2) Providing teachers with information on developments 
        in curricula, assessments, and educational research, including 
        the manner in which the research and data can be used to 
        improve teaching skills and practice.
            ``(3) Providing training and support for new teachers.
    ``(e) Permissible Activities.--A teacher center may use assistance 
under this section for any of the following:
            ``(1) Assessing the professional development needs of the 
        teachers and other instructional school employees, such as 
        librarians, counselors, and paraprofessionals, to be served by 
        the center.
            ``(2) Providing intensive support to staff to improve 
        instruction in literacy, mathematics, science, and other 
        curricular areas necessary to provide a well-rounded education 
        to students.
            ``(3) Providing support to mentors working with new 
        teachers.
            ``(4) Providing training in effective instructional 
        services and classroom management strategies for mainstream 
        teachers serving students with disabilities and students with 
        limited English proficiency.
            ``(5) Enabling teachers to engage in study groups and other 
        collaborative activities and collegial interactions regarding 
        instruction.
            ``(6) Paying for release time and substitute teachers in 
        order to enable teachers to participate in the activities of 
        the teacher center.
            ``(7) Creating libraries of professional materials and 
        educational technology.
            ``(8) Providing high-quality professional development for 
        other instructional staff, such as paraprofessionals, 
        librarians, and counselors.
            ``(9) Assisting teachers to become highly qualified and 
        paraprofessionals to become teachers.
            ``(10) Assisting paraprofessionals to meet the requirements 
        of section 1119.
            ``(11) Developing curricula.
            ``(12) Incorporating additional on-line professional 
        development resources for participants.
            ``(13) Providing funding for individual- or group-initiated 
        classroom projects.
            ``(14) Developing partnerships with businesses and 
        community-based organizations.
            ``(15) Establishing a teacher center site.
    ``(f) Teacher Center Policy Board.--
            ``(1) In general.--A teacher center receiving assistance 
        under this section shall be operated under the supervision of a 
        teacher center policy board.
            ``(2) Membership.--
                    ``(A) Teacher representatives.--The majority of the 
                members of a teacher center policy board shall be 
                representatives of, and selected by, the elementary and 
                secondary school teachers to be served by the teacher 
                center. Such representatives shall be selected through 
                the teacher organization, or if there is no teacher 
                organization, by the teachers directly.
                    ``(B) Other representatives.--The members of a 
                teacher center policy board--
                            ``(i) shall include at least two members 
                        who are representative of, or designated by, 
                        the school board of the local educational 
                        agency to be served by the teacher center;
                            ``(ii) shall include at least one member 
                        who is a representative of, and is designated 
                        by, the institutions of higher education (with 
                        departments or schools of education) located in 
                        the area; and
                            ``(iii) may include paraprofessionals.
    ``(g) Application.--
            ``(1) In general.--To seek a grant under this section, an 
        eligible entity shall submit an application at such time, in 
        such manner, and accompanied by such information as the 
        Secretary may reasonably require.
            ``(2) Assurance of compliance.--An application under 
        paragraph (1) shall include an assurance that the applicant 
        will require any teacher center receiving assistance through 
        the grant to comply with the requirements of this section.
            ``(3) Teacher center policy board.--An application under 
        paragraph (1) shall include the following:
                    ``(A) An assurance that--
                            ``(i) the applicant has established a 
                        teacher center policy board;
                            ``(ii) the board participated fully in the 
                        preparation of the application; and
                            ``(iii) the board approved the application 
                        as submitted.
                    ``(B) A description of the membership of the board 
                and the method of its selection.
    ``(h) Definitions.--In this section:
            ``(1) The term `eligible entity' means a local educational 
        agency or a consortium of 2 or more local educational agencies.
            ``(2) The term `teacher center policy board' means a 
        teacher center policy board described in subsection (f).
    ``(i) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated $100,000,000 for fiscal year 
2006 and such sums as may be necessary for each of the 5 succeeding 
fiscal years.''.

SEC. 502. EXCLUSION FROM GROSS INCOME OF COMPENSATION OF TEACHERS AND 
              PRINCIPALS IN CERTAIN HIGH-NEED SCHOOLS OR TEACHING HIGH-
              NEED SUBJECTS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139A the following new section:

``SEC. 139B. COMPENSATION OF CERTAIN TEACHERS AND PRINCIPALS.

    ``(a) Teachers and Principals in High-Need Schools.--
            ``(1) In general.--In the case of an individual employed as 
        a teacher or principal in a high-need school during the taxable 
        year, gross income does not include so much remuneration for 
        such employment (which would but for this paragraph be 
        includible in gross income) as does not exceed $15,000.
            ``(2) High-need school.--For purposes of this subsection, 
        the term `high-need school' means any public elementary school 
        or public secondary school eligible for assistance under 
        section 1114 of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 6314).
    ``(b) Teachers of High-Need Subjects.--
            ``(1) In general.--In the case of an individual employed as 
        a teacher of high-need subjects during the taxable year, gross 
        income does not include so much remuneration for such 
        employment (which would but for this paragraph be includible in 
        gross income) as does not exceed $15,000.
            ``(2) Teacher of high-need subjects.--For purposes of this 
        subsection, the term `teacher of high-need subjects' means any 
        teacher in a public elementary or secondary school who--
                    ``(A)(i) teaches primarily 1 or more high-need 
                subjects in 1 or more grades 9 through 12, or
                    ``(ii) teaches 1 or more high-need subjects in 1 or 
                more grades kindergarten through 8,
                    ``(B) received a baccalaureate or similar degree 
                from an eligible educational institution (as defined in 
                section 25A(f)(2)) with a major in a high-need subject, 
                and
                    ``(C) is highly qualified (as defined in section 
                9101(23) of the Elementary and Secondary Education Act 
                of 1965).
            ``(3) High-need subjects.--For purposes of this subsection, 
        the term `high-need subject' means mathematics, science, 
        engineering, technology, special education, teaching English 
        language learners, or any other subject identified as a high-
        need subject by the Secretary of Education for purposes of this 
        section.
    ``(c) Limitation on Total Remuneration Taken Into Account.--In the 
case of any individual whose employment is described in subsections 
(a)(1) and (b)(1), the total amount of remuneration which may be taken 
into account with respect to such employment under this section for the 
taxable year shall not exceed $25,000.''.
    (b) Clerical Amendment.--The table of section of such part is 
amended by inserting after the item relating to section 139A the 
following new item:

        ``Sec. 139B. Compensation of certain teachers and principals''.
    (c) Effective Date.--The amendments made by this section shall 
apply to remuneration received in taxable years beginning after the 
date of the enactment of this Act.

SEC. 503. ABOVE-THE-LINE DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY 
              AND SECONDARY SCHOOL TEACHERS INCREASED AND MADE 
              PERMANENT.

    (a) In General.--Subparagraph (D) of section 62(a)(2) of the 
Internal Revenue Code of 1986 is amended by striking ``In the case of'' 
and all that follows through ``$250'' and inserting ``The deductions 
allowed by section 162 which consist of expenses, not in excess of 
$500''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

                   TITLE VI--MISCELLANEOUS PROVISIONS

SEC. 601. CONFORMING AMENDMENTS.

    The table of contents at section 2 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6301 et seq.) is amended--
            (1) by inserting after the items relating to part D of 
        title II of such Act the following new items:

             ``Part E--Teacher Excellence for All Children

        ``Sec. 2500. De``subpart 1--distribution
        ``Sec. 2501. Premium pay; loan repayment.
        ``Sec. 2502. Car``subpart 2--preparation program.
        ``Sec. 2511. Establishing state-of-the-art teacher induction 
                            programs.
        ``Sec. 2512. Peer mentoring and review programs.
        ``Sec. 2513. Establishing state-of-the-art principal training 
                            and induction programs and performance-
                            based principal certification.
        ``Sec. 2514. Study on developing a portable performance-based 
         ``subpart 3--21st century data, tools, and assessments
        ``Sec``subpart 4--retention and working conditions
        ``Sec. 2531. Improving professional development 
                            opportunities.''; and
            (2) by inserting after the items relating to subpart 2 of 
        part E of title IX of the Elementary and Secondary Education 
        Act of 1965 the following new item:

``Sec. 9537. Assurance of reasonable progress toward equitable access 
                            to teacher quality.''.
                                 <all>