[Congressional Record Volume 147, Number 8 (Tuesday, January 23, 2001)]
[Senate]
[Pages S479-S497]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
HEALTH INSURANCE FOR SMALL BUSINESS
Mr. KERRY. Mr. President, I am proud to be an original cosponsor of
the Self-Employed Health Insurance Fairness Act. As the Ranking
Democratic Member on the Senate Committee on Small Business, I know how
important access to health insurance is for small businesses. Today,
approximately 42.5 million Americans lack health insurance.
Unfortunately, employees of small businesses are much more likely to be
uninsured than employees of large firms.
[[Page S480]]
Current law allows qualified small businesses to deduct 60 percent of
their health insurance payments. The cost of health insurance and the
lack of a full deduction has kept many small businesses from obtaining
health insurance for their employees. In 1998, an estimated 12.5
million workers were self-employed but only about 3.2 million tax
returns claimed the self-employed health insurance deduction. In 1998,
34 percent of workers in firms with fewer than 10 employees lacked
health insurance compared with only 13 percent of workers in firms with
more than 1,000 employees. Clearly, the cost of health insurance has
kept many small businesses from offering health insurance. Many small
businesses simply cannot afford to pick up the difference between the
deduction and the total cost of health insurance.
Unfortunately, due to an inequity within our current tax law, big
businesses are currently allowed to deduct 100 percent of their health
insurance costs. While small businesses are slated to have their health
insurance deduction increase to 100 percent in 2003, I believe this is
far too long for many small businesses to wait to obtain health
insurance.
That is why I am proud to cosponsor the legislation introduced
yesterday by Senators Bond and Durbin, which will finally end the
inequity in current tax law and allow small businesses to deduct the
same amount of their health insurance costs as big businesses. For many
small businesses, this increase in the deduction will make it possible
for them to obtain health insurance for the first time.
No one in the United States should be without adequate health care
because he or she cannot afford it. Access to affordable health
insurance is crucial to increase the quality of life for working
families across this nation. That is why we must enact this legislation
during the 107th Congress.
______
By Mr. GRASSLEY (for himself and Mr. Baucus):
S. 152. A bill to amend the Internal Revenue Code of 1986 to
eliminate the 60-month limit and increase the income limitation on the
student loan interest deduction; to the Committee on Finance.
Mr. GRASSLEY. Mr. President, today I am introducing legislation to
expand the tax deduction for student loan interest. I am proud to have
as my original cosponsor Senator Max Baucus of Montana.
Under the Tax Reform Act of 1986, the tax deduction for student loan
interest was eliminated. This action, done in the name of fiscal
responsibility, disregarded the duty we have to the education of our
nation's students. This struck me and many of my colleagues as wrong.
Since 1987, I have spearheaded the bipartisan effort to reinstate the
tax deduction for student loan interest. In 1992, we succeeded in
passing the legislation only to have it vetoed as part of a larger bill
with tax increases. Finally, after ten long years our determination and
perseverance paid off. Under the Taxpayer Relief Act of 1997 we
reinstated the deduction. In our success, we sent a message to the
students and their families of this nation that the Congress of the
United States understands the financial hardships they face, and that
we are willing to assist them in easing those hardships so they can
continue to receive the education they need to become productive
members of society and of their place of work.
In 1997, our steps were in the right direction. We did what needed to
be done. Regrettably, due to fiscal constraints, we were not able to go
as far as we wanted. The nation was still struggling to eliminate the
deficit. In order to control costs, we were forced to limit the
deductibility of student loan interest to only sixty payments, which is
five years' worth plus the time spent in forbearance or deferment.
This restriction hurts some of the most needy borrowers. Many of
these borrowers are students who, due to limited means, have borrowed
most heavily. The restriction discriminates against those who have the
highest debt loads and the lowest incomes. It makes the American dream
of self-improvement harder to achieve for those struggling to pull
themselves up--but who started with less. It is simply unjust.
Today, our situation is vastly different. In these times of economic
surplus, we have a responsibility to do what we were unable to do
before. Student debt is rising to alarming levels and additional relief
is needed. We must eliminate the sixty month restriction on the
deductibility of student loan interest and adjust the income limits to
show that the United States Congress stands behind our nation's
students in their endeavors to better themselves.
In addition, the removal of the sixty-month limit on deductibility of
student loan interest will bring most needed relief to some of the most
deserving borrowers. The restriction weighs most heavily on those who,
despite lower pay have decided to dedicate themselves to public
service. Thus this change will have the added benefit of rewarding
civic virtue of these admirable citizens.
Additionally, eliminating this restriction will remove difficult and
costly reporting requirements that are currently required for both the
borrower and lender. By supporting our nation's students, we will also
be reducing costly and unnecessary regulatory requirements.
Currently, to claim the deduction, the taxpayer must have an adjusted
gross income of $40,000 or less or $60,000 for married couples. The
amount of the deduction is gradually phased out for those with incomes
between $40,000 and $55,000, or $60,000 and $75,000 for married
couples. The deduction was phased in at $1,000 and will cap out at
$2,500 in 2002. This bill will adjust those limits.
Many students in our country are suffering from heavy education-
related debt. More can and must be done to help them. In these times of
relative budget surplus, it is our duty to invest in our students'
education. Doing so is an investment in America's future. To maintain
our competitive edge in the global marketplace, America must have a
well-educated workforce. By making it easier for students to take out
the loans they need to obtain the highest level of education they can,
we recommit ourselves to education and maintaining our competitive
advantage in technology and in world trade.
I urge members to join me and Senator Baucus in our effort to relieve
these excessive burdens on those trying to better themselves and their
futures through education, by expanding the tax deduction for student
loan interest payments. I now ask that the full text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 152
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. ELIMINATION OF 60-MONTH LIMIT AND INCREASE IN
INCOME LIMITATION ON STUDENT LOAN INTEREST
DEDUCTION.
(a) Elimination of 60-Month Limit.--
(1) In general.--Section 221 of the Internal Revenue Code
of 1986 (relating to interest on education loans) is amended
by striking subsection (d) and by redesignating subsections
(e), (f), and (g) as subsections (d), (e), and (f),
respectively.
(2) Conforming amendment.--Section 6050S(e) of such Code is
amended by striking ``section 221(e)(1)'' and inserting
``section 221(d)(1)''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to any loan interest paid after
December 31, 2000, in taxable years ending after such date.
(b) Increase in Income Limitation.--
(1) In general.--Section 221(b)(2)(B) of the Internal
Revenue Code of 1986 (relating to amount of reduction) is
amended by striking clauses (i) and (ii) and inserting the
following:
``(i) the excess of--
``(I) the taxpayer's modified adjusted gross income for
such taxable year, over
``(II) $50,000 (twice such dollar amount in the case of a
joint return), bears to
``(ii) $15,000.''.
(2) Conforming amendment.--Section 221(g)(1) of such Code
is amended by striking ``$40,000 and $60,000 amounts'' and
inserting ``$50,000 amount''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years ending after December 31, 2000.
Mr. BAUCUS. Mr. President, I am pleased to join my colleague, Senator
Grassley, in introducing legislation to expand the tax deduction for
student loan interest.
Under current law, student loan interest is only deductible for the
first sixty loan repayments, which is equivalent to five years in
addition to any deferrals. While this limitation was
[[Page S481]]
originally imposed due to revenue constraints, it has had unanticipated
consequences.
Most importantly, the limitation hurts some of our neediest
borrowers. Students with the most limited means often are forced to
borrow most heavily in order to afford a higher education. These are
precisely the students who need the most help to succeed.
The restriction also makes it more difficult for students who would
like to pursue a career in public service, where loan repayment is made
more challenging by salaries that tend to be lower than the private
sector. We should not punish those who sacrifice in order to serve the
greater good.
Finally, the current sixty month limitation imposes costly and time-
consuming reporting requirements on both borrowers and lenders. In
supporting our nation's students, we will also be cutting costly
bureaucracy.
Mr. President, we currently are enjoying unprecedented budget
surpluses, which allows us the luxury of deciding how best to allocate
our nation's revenues. I believe there are some priorities we must
emphasize, and one important one is our children's education.
Investing in education is investing in our nation's future.
Our best tool for ensuring long-term economic growth is to make sure
our workforce is the most educated in the world. Eliminating this
artificial restriction on student loan interest deductibility keeps us
one small step closer to our goal.
I urge my colleagues to support this effort.
______
By Mr. HATCH:
S. 153. A bill to amend title XVIII of the Social Security Act to
provide for State accreditation of diabetes self-management training
programs under the Medicare Program; to the Committee on Finance.
Mr. HATCH. Mr. President, today, I am introducing legislation that
will allow all state accredited diabetes education programs to be
reimbursed by the Medicare program. Currently, diabetes education
programs that have state certification, as an alternative to being
certified by the American Diabetes Association (ADA), are not eligible
to receive Medicare reimbursement for their services. As a result,
these deserving patients have more limited access to the important
medical education that they need to control their diabetes effectively
and to improve the quality of their health.
This important health issue was brought to my attention by the
Program Director of the Utah Diabetes Control Program. There are over
30 diabetes education programs in Utah that are either Utah certified
or recognized by the American Diabetes Association. The majority of the
education programs have only state certification; several are located
in rural communities of Utah.
It is important to emphasize, that in Utah, our state certification
program meets or exceeds all national standards. These stringent state
requirements include the submission of a detailed application, with the
appropriate documentation that the diabetes education programs meet the
various national standards.
The Utah Diabetes Control Program staff also conduct on-site visits
to all applying programs. After the completion of this extensive
application process, the state staff collects follow-up data through
the annual report process in order to assess program quality and
diabetic patient outcomes.
One notable concern that has been brought to my attention by the Utah
Department of Health is that the American Diabetes Association charges
$850 for state programs to apply for their ADA certification. The
smaller and rural state diabetes education programs, which provide
services to their patients, have indicated that the ADA fee is cost-
prohibitive for them. It does not seem right to me that Medicare
reimbursement for such programs is contingent on the ability of the
program sponsor to pay a fee to the only accepted certifying entity.
I understand that this problem is not unique to Utah, but is a
significant issue across the country. All Medicare beneficiaries,
regardless of where they live in America, should have access to these
diabetes education programs that ultimately improve the quality of
their lives. I urge my colleagues to join me in supporting this
legislation.
Mr. President, I ask unanimous consent the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 153
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. STATE ACCREDITATION OF DIABETES SELF-MANAGEMENT
TRAINING PROGRAMS.
Section 1861(qq)(2) of the Social Security Act (42 U.S.C.
1395x(qq)(2)) is amended--
(1) in the matter preceding subparagraph (A) by striking
``paragraph (1)--'' and inserting ``paragraph (1):'';
(2) in subparagraph (A)--
(A) by striking ``a `certified provider' '' and inserting
``A `certified provider' ''; and
(B) by striking ``; and'' at the end and inserting a
period; and
(3) in subparagraph (B)--
(A) by striking ``a physician, or such other individual''
and inserting ``(i) A physician, or such other individual'';
(B) by inserting ``(I)'' before ``meets applicable
standards'';
(C) by inserting ``(II)'' before ``is recognized'';
(D) by inserting ``, or by a program described in clause
(ii),'' after ``recognized by an organization that represents
individuals (including individuals under this title) with
diabetes''; and
(E) by adding at the end the following new clause:
``(ii) Notwithstanding any reference to `a national
accreditation body' in section 1865(b), for purposes of
clause (i), a program described in this clause is a program
operated by a State for the purposes of accrediting diabetes
self-management training programs, if the Secretary
determines that such State program has established quality
standards that meet or exceed the standards established by
the Secretary under clause (i) or the standards originally
established by the National Diabetes Advisory Board and
subsequently revised as described in clause (i).''.
______
By Mr. SHELBY:
S. 154. A bill to amend the Uniformed and Overseas Citizens Absentee
Voting Act to ensure uniform treatment by States of Federal overseas
absentee ballots, to amend titles 10 and 18, United States Code, and
the Revised Statutes to remove the uncertainty regarding the authority
of the Department of Defense to permit buildings located on military
installations and reserve component facilities to be used as polling
places in Federal, State, and elections for public office, and for
other purposes; to the Committee on Rules and Administration.
Mr. SHELBY. Mr. President, I rise today to introduce the Military and
Overseas Citizens Voting Fairness Act of 2001. This bill ensures that
the men and women of the military who go into harm's way and bravely
serve our country will have their vote counted. Given the great
sacrifice these men and women make to defend our country, it is
essential that we as lawmakers do all that we can to have their voices
heard.
Although military mail is technically supposed to carry a postmark,
the reality of the situation is that exigent circumstances aboard Navy
ships and in foreign theaters can result in mail being sent without a
postmark. Because several states require a postmark for an absentee
ballot to be counted, the unfortunate outcome is that many military
persons who went through the timely process of registering, applying
for and sending in a ballot are disenfranchised through no fault of
their own.
My bill provides that lack of a postmark does not result in automatic
rejection of an overseas ballots in states that require a postmark.
Specifically, the bill states that as long as there is conclusive proof
of timely sending and the ballot is received by a state within 10 days
after a federal election, mere lack of a postmark will not prevent the
ballot from being counted.
My bill lists two ways in which conclusive proof of timely sending
may be established, although any conclusive evidence could establish
timely sending. If a ballot is received on or before election day,
logic dictates that the ballot was sent in a timely manner. Also,
timely sending would be conclusively established by examining the date
of signature and witness on the outside of the ballot envelope.
Fraudulently misstating the date would be punishable by civil and
criminal penalties.
In addition to creating a uniform absentee voting law, my bill
includes provisions to allow polling places on domestic military bases.
These provisions
[[Page S482]]
will make it easier for military personnel located on remote bases to
be able to participate in the voting process. Voting is one of the most
important civic duties in a democracy. By allowing voting to take place
on-base, we as the Senate, will guarantee that the men and women of our
military will have every opportunity to exercise their important right
to vote.
Mr. President, confidence, clarity, and participation in our voting
process are vital to the continuation of our great democracy. The
election of this past year illustrates the need for change in our
voting procedures. While more reform will be needed, my bill is a
crucial step in that direction. For this and all the above reasons, I
urge you and all my other colleagues to support the passage of this all
important bill.
______
By Mr. BINGAMAN:
S. 155. A bill to amend title 5, United States Code, to eliminate an
inequity in the applicability of early retirement eligibility
requirements to military reserve technicians; to the Committee on
Governmental Affairs.
Mr. BINGAMAN. Mr. President, I rise today to introduce a bill that I
put forward last year to remove the inequity that continues to exist in
retirement pay benefits for critical personnel, referred to as ``Dual
Status Technicians,'' who serve in our National Guard and Reserve. The
Senate approved my proposed legislation last year by including it in
the FY 2001 Defense Authorization bill. This year, I urge my colleagues
in the Senate and House to join with me to see that this important
initiative is enacted into law.
There are about 40,000 Dual Status Technicians covered by retirement
requirements and restrictions contained in Title 32 of the United
States Code. The designation ``Dual Status'', Mr. President, refers to
the fact that these technicians serve the government simultaneously
both as military and civilian employees. These men and women are the
backbone of our National Guard and Reserve structure. They are the
mechanics, pilots engineers, equipment operators, supply and support
technicians who keep things running so that the Guard is able to
respond to natural disasters and national emergencies, as well as serve
on active duty in accordance with the ``total force concept'' that
integrates active and reserve forces in the military. These hardworking
men and women are often the first called to duty in an emergency. They
played on essential role, for example, in the major firefighting
efforts that took place in New Mexican and throughout western states
last summer.
As essential as Dual Status Technicians are, they suffer from the
worst of two employment worlds. These technicians are by statute both
military and civilian employees. Guard technicians must maintain their
military job and grade in order to keep their technician status and
remain a federal employee. In the event of separation from military
service, however, under existing law they are denied the retirement
benefit options extended to those who serve in the same grade and time
in service in the active military. Frequently, Dual Status Technicians
who are separated from the Guard and Reserve must wait years to qualify
to receive their Federal Service retirement benefits.
The bill I am introducing in the Senate today corresponds to a
companion bill being introduced on the House side by Representative
Abercrombie. It seeks to eliminate retirement inequities--a problem we
just addressed head on in the Armed Services Committee when we include
a provision in the FY 2000 Defense Authorization Bill eliminating
retirement inequities between active duty personnel who retire before
or after 1986. We voted by that provision to effectively eliminate the
``Redux'' retirement benefit program because of the lower benefits it
offered to personnel who retired after 1986. The action I am proposing
in this legislation is similar.
The bill will permit Dual Status Technicians to retire at any age
with 25 years of service or at age 50 with 20 years of service. Those
criteria reflect benefit options now extended to Federal police and
fire employees. They also replicate those offered to federal employees
who retire from the Congress.
Last year, I was pleased to see, Mr. President, that the FY 2000
Defense Authorization Act took a step to extend more equitable
retirement benefits to Dual Status Technicians. In doing so, however,
the Congress created an inequity within the Technician community
itself. A provision in that Act authorized early retirement after 25
years at any age, or at age 50 with 20 years of service--but only for
those employed as Dual Status Technicians after 1996. Those same
benefits are withheld from those employed before 1996. In other words,
Mr. President, we created a situation similar to the one the Senate
dealt with regarding the ``Redux'' retirement program in the FY 2001
Defense Authorization Act. The bill I offer today would remove that
inequity in the same way the Congress voted to remove the inequity for
active duty personnel who retired under the ``Redux'' program.
Mr. President, the cost of achieving retirement equity for Dual
Status Technicians would not be high. Last year, the Congressional
Budget Office estimated that this bill could cost about $74 million
over a five year period. That estimate may be on the high side, I
believe, since it is based on the assumption that nearly all
technicians eligible for retirement under those criteria would choose
to do so. The actual number who would choose to retire would vary, of
course, depending on individual circumstances. It is important to note,
Mr. President, that we're not only providing for equity here. We're
authorizing appropriate compensation, well deserved, to the men and
women who have devoted their careers to service for the nation both at
home and abroad--the men and women of our National Guard and Reserve.
I urge my colleagues to support this bill and urge my fellow members
to support this effort through cosponsorship. I ask unanimous consent
that the text of the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 155
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. EQUITABLE APPLICATION OF EARLY RETIREMENT
ELIGIBILITY REQUIREMENTS TO MILITARY RESERVE
TECHNICIANS.
(a) Technicians Covered by FERS.--Paragraph (1) of section
8414(c) of title 5, United States Code, is amended by
striking ``after becoming 50 years of age and completing 25
years of service'' and inserting ``after completing 25 years
of service or after becoming 50 years of age and completing
20 years of service''.
(b) Technicians Covered by CSRS.--Section 8336 of title 5,
United States Code, is amended by adding at the end the
following new subsection:
``(p) Section 8414(c) of this title applies--
``(1) under paragraph (1) of such section to a military
reserve technician described in that paragraph for purposes
of determining entitlement to an annuity under this
subchapter; and
``(2) under paragraph (2) of such section to a military
technician (dual status) described in that paragraph for
purposes of determining entitlement to an annuity under this
subchapter.''.
(c) Applicability.--Subsection (c) of section 8414 of title
5, United States Code (as amended by subsection (a)), and
subsection (p) of section 8336 of such title (as added by
subsection (b)), shall apply according to the provisions
thereof with respect to separations from service referred to
in such subsections that occur on or after October 5, 1999.
______
By Mrs BOXER:
S. 156. A bill to improve academic and social outcomes for students
and reduce both juvenile crime and the risk that youth will become
victims of crime by providing productive activities during after school
hours; to the Committee on Health, Education, Labor, and Pensions.
S. 157. A bill to establish a program to help States expand the
existing education system to include at least 1 year of early education
preceding the year a child enters kindergarten; to the Committee on
Health, Education, Labor, and Pensions.
Mrs. BOXER. Mr. President, there have been many positive steps taken
to support quality early education and afterschool programs, yet they
still represent token steps when giant leaps are needed. America must
commit to ensuring a comprehensive education system beginning with
early education
[[Page S483]]
programs and continuing with afterschool programs. This is why I am re-
introducing my two bills, the ``Early Education Act of 2001,'' and the
``After School Education and Anti-Crime Act of 2001.''
Every day, millions of working parents are forced with the prospect
of leaving their children unsupervised after school because they either
cannot afford quality afterschool programs or the programs simply are
unavailable in their surrounding area. Children need a place to go
after school. An empty house should not be an option. It can be
especially frightening for many students today because of the increase
in crime and drug related incidents in their neighborhoods.
There are anywhere from 8 to 15 million children without accessible
afterschool opportunities. Only 33 percent of schools in low-income
neighborhoods offer before and afterschool programs compared to over 50
percent of schools in affluent neighborhoods. Yet, unlike what most may
believe, this tragic situation cuts across both racial and economic
lines. Affluent, non-minority workers also leave their children home
alone.
According to a recent report from the Urban Institute, one in five
children ages 6 to 12 are regularly left without adult supervision
after school. The FBI reports that the after school hours between 2
p.m. and 8 p.m. are the times when latchkey children are most likely to
be involved in crimes and other delinquent behavior, and this is
precisely the time period when juvenile crime peaks across the nation.
According to the Departments of Education and Health and Human
Services, extracurricular activities, like those provided by
afterschool programs, have proven to reduce the number of students
likely to use drugs by 50 percent and the number of students likely to
become teen parents by 33 percent. Statistics like these prove that
after school programs are essential to ensuring the safety of our
children in the critical hours after school.
We made great progress in the last 5 years. Through the 21st Century
Community Learning Center program, federal support for local
afterschool programs increased from $1 million in fiscal year 1997 to
$845 million in fiscal year 2001. As a result, over 900 communities
across the nation are now providing their children with a positive
alternative to unsupervised care.
But a gap still exists. While eight out of ten voters in America
indicate they strongly support afterschool programs and would welcome
them in their community, fewer than 4 out of 10 voters say that their
community provides afterschool programs.
My bill, the After Education and Anti-Crime Act of 2001, would help
close this gap. It would provide $1 billion in grants for afterschool
programs and incrementally increase that funding over the next five
years to $1.5 billion in the year 2006. This funding would help provide
afterschool programs for 1.5 million youth in the year 2002 with the
potential to assist nearly 2.5 million in the year 2006.
While afterschool programs continue the learning process during after
school hours, we also must support initiatives that ensure our young
children receive quality educational experiences in their early,
formative years.
In 1989, the Nation's governors established a goal that all children
would have access to high quality prekindergarten programs by the year
2000. It is now the year 2001, and this goal still has not been met.
Importantly, researchers have discovered that children have a
learning capacity that can and should be developed at a much earlier
age than was previously thought. The National Research Council reported
that prekindergarten educational opportunities are necessary if
children are going to develop the language and literacy skills needed
to read.
Furthermore, studies have shown that children who participate in
prekindergarten programs are less likely to be held back a grade, show
greater learning retention and initiative, have better social skills,
are more enthusiastic about school, and more likely to have good
attendance records. Yet, of the nearly 8 million 3- and 4-year-olds
that could be in early education, fewer than half are enrolled.
My bill, the Early Education Act of 2001, would create a
demonstration project in at least 10 States that want to provide one
year of prekindergarten early education in the public schools. There is
a 50 percent matching requirement, and the $300 million authorized
under this bill would be used by States to supplement--not supplant--
other Federal, State or local funds.
Our children need a solid foundation that builds on our current
education system by providing them with early learning skills and the
opportunity to further develop these skills during the afterschool
hours. My bills will help create such a positive environment for our
Nation's youth.
______
By Mr. BINGAMAN (for himself and Mr. Lugar):
S. 158. A bill to improve schools; to the Committee on Health,
Education, Labor, and Pensions.
Mr. BINGAMAN. Mr. President, I rise today to re-introduce legislation
that I first introduced in 1999. This bill will establish much needed
accountability for our education system so that the taxpayers'
investment in education is adequately protected and our children
receive the best possible education. I am pleased to offer this
bipartisan bill on behalf of myself and my colleague Senator Lugar. The
provisions of this bill are also included in S. 7, introduced yesterday
by Senator Daschle and 18 other senators.
I think that we can all agree that greater accountability in our
public schools is an imperative. I am encouraged that President Bush
and our new Secretary of Education, Rod Paige, have both expressed a
strong commitment to increased accountability and have implemented
strong school accountability standards in Texas. I understand
accountability is a central piece of the administration's proposal
being released today.
In 1994, we made some important changes to the Elementary and
Secondary Education Act. We created an accountability system for the
program receiving most of the ESEA funds--the program, for
disadvantaged students called the Title I program. This accountability
framework--along with the Goals 2000 program--have driven the
standards-based reform efforts across the nation. During the last 5
years, however, experience in many States has demonstrated that we must
do more. At this point, only 11 states have fully approved assessment
systems in place as required under Title I.
The federal government has succeeded in targeting funds on those most
in need better than any state or local government. And over the last
three decades we have had success--albeit only partial success--in
closing the achievement gap between economically disadvantaged students
and their peers.
Our bill builds on the existing strengths of the accountability
structure in the current Title I programs and also establishes
accountability for teacher quality and other federal education programs
encompassed in the Elementary and Secondary Education Act. In
particular, our bill (1) establishes aggressive but achievable
performance objectives for all students linked to each state's own
standards and assessments; (2) directs resources to the students and
objectives most in need and (3) provides maximum flexibility for
educators in devising strategies that meet our shared goals, but
ultimately having real consequences and sanctions for states,
districts, and schools that do not meet agreed-upon performance
objectives for student achievement.
Through amendments to Title I and Title VI of the Elementary and
Secondary Education Act, our bill establishes aggressive but achievable
performance objectives for all students.
We require rigorous statewide accountability systems based on each
state's standards and assessments holding states, districts, and
schools accountable for real achievement progress for all students, by
requiring states, districts and schools to set specific, numerical
goals for improvement which will ensure that all students will be
proficient on state standards within 10 years. We also require public
reporting of not just the results of the assessment but also the number
of students excluded from assessments.
Most importantly, Mr. President, this bill demands results for all
students, by no longer tolerating existing achievement gaps between
minority
[[Page S484]]
and non-minority students, poor and non-poor students, and LEP and
English-speaking students. The achievement gap between low-income
students and their more advantaged peers has narrowed significantly
from 1970 until the mid-1980's. This was a central goal of the Title I
program and its success in this regard is underrated.
But we have not done enough to accelerate those results.
Accountability systems that depend upon average student achievement
data--data in the aggregate--will not close the achievement gaps that
separate low-income students from more affluent students or minority
students from white students.
For example, in my home State of New Mexico, in 1994 4th grade
reading data show that an average of 21 percent of the 4th graders in
my state were reading at the proficient level. This is distressing
enough, but the disaggregated data tells an even more depressing story.
In New Mexico only 11 percent of the African American 4th graders and
just 15 percent of the Latino 4th graders were reading at the
proficient level. The 1996 4th grade NAEP data show that 13 percent of
all students in New Mexico were proficient in math while only 3 percent
of African American students and 6 percent of Latino students were
proficient.
The fact that these students are in the minority means that their
performance data is swamped by data of the majority when an
accountability system that depends on averages is used.
To remedy this--to close the gaps and to make good on the promises of
Title I--our bill would demand that states use disaggregated data and
goals to hold schools and school districts accountable for the use of
Title I funds.
Mr. President, recognizing that increased accountability and
increased results will not be easy to accomplish, our bill also directs
additional resources to the students and objectives most in need.
First, our bill would set aside a pot of funds (3 percent of Title I
funds--about $250 million at current funding levels--and 5 percent
after three years) for school improvement. 80 percent of these funds
would be sent to the local level to support efforts to turn around
failing schools. Schools can use these funds to implement research-
based comprehensive school reform programs.
An example of a comprehensive school reform model used widely in my
State and throughout the nation with great results is Success for All.
This program is a proven early grade reading program, which if
implemented properly can ensure results. At the end of the first grade,
Success for All schools have average reading scores almost three months
ahead of those in matching control schools, and by the end of the 5th
grade, students read more than one year ahead of control peers. The
program can reduce the need for special education placements by more
than 50 percent and virtually eliminate retention. Our bill provides
new funding of $500 million per year to states and school districts to
implement comprehensive, research-based school reform programs, such as
Success for All, that have proven effectiveness.
Second, the state may use the remaining State funds to provide
assistance to districts and schools as they implement their
accountability system and develop school improvement plans.
Finally, we also support an increased authorization level for Title
I--$15 billion--and will continue to fight for substantial increases in
the appropriations process.
Mr. President, the bill does not provide additional resources without
asking for something in return. The bill would ensure that if states,
districts or schools fail to demonstrate returns on the federal
investment through increased student performance, real consequences and
sanctions will result.
On the school and district level, if grant recipients do not meet
required performance standards, changes in the governance structure of
the school or district must be implemented; and students must be
allowed to transfer to higher performing schools. The states and
districts must provide the necessary resources for transportation with
state and local funds; state administrative funds will be withheld; and
Title VI funding (current block grant program) will be reduced and
States will be ineligible for the Ed-Flex program.
This bill also would establish aggressive but achievable performance
objectives to ensure that every class has a qualified teacher. Our bill
does this by first, requiring states receiving federal funds to ensure
that all teachers are fully qualified by December 2005; second,
requiring states and districts receiving federal teacher quality funds
to set specific numerical performance goals and targets for reducing
the number of unqualified and out-of-field teachers; and third,
ensuring that low income and minority students are not taught by
unqualified teachers at higher rates than other students.
The bill would ensure that resources are directed to these objectives
first, by ensuring that federal funds are not used to hire unqualified
teachers and second, by ensuring that resources are provided for, and
school improvement plans incorporate, high-quality, research-based
professional development for instructional staff.
Again, in exchange for increased resources, our bill would provide
consequences for failing to meet performance objectives. States failing
to meet their performance objectives would lose State administrative
funding. Districts and schools failing to meet performance objectives
would be ineligible for continuing grants.
This bill also ensures that the other Federal Education Programs in
the ESEA incorporate performance-based accountability measures by:
First, requiring that all plans submitted with grant applications
incorporate performance-based objectives for increased student
performance or other relevant program objectives. Second, providing
additional funding through the Title VI block grant program in the ESEA
to achieve performance-based objectives. Third, providing consequences
for failing to meet performance-based objectives, including
ineligibility for continuing grants in the case of competitive programs
and in the case of formula programs, reductions in administrative funds
and Title VI, and fourth, mandating that states failing to meet goals
would also be ineligible for flexible funding programs in current law
(``Ed Flex'').
In addition, this bill recognizes the critical role played by parents
in improving performance and ensuring accountability. The bill provides
parents the right to know their child's teachers' qualifications; it
requires that parents be notified when their child's school is failing;
it requires school improvement plans be published and parents be
included in their development; and it requires school report cards to
inform parents about the quality of their schools and their programs in
meeting student achievement goals.
Finally, our bill authorizes $200 million dollars for States to
reward high performing schools and districts so that these schools and
districts are recognized and encouraged to strive for high performance.
Mr. President, our bill would use an output-based rather than an
input-based system of accountability for the various programs
authorized by this bill. A shift that my colleagues on the both sides
of the aisle have repeatedly endorsed.
Indeed, Both President Bush and Secretary Paige have expressed
support for the measures incorporated in this bill and implemented many
of them with some success in Texas. Both have endorsed closing the
achievement gap at the school level with real consequences for
failure--the key component for accountability under Title I. They have
indicated support for report cards, a rewards program for successful
schools, and using performance-based accountability for all education
programs. At his confirmation hearing, Secretary Paige also endorsed
providing additional resources to struggling schools to help them turn
around before corrective actions are taken. So I am very hopeful that
this will be a bill that receives strong bipartisan support and I look
forward to working with my colleagues on both sides of the aisle on it.
In conclusion, Mr. President, many schools that educate hard-to-serve
students have shown success by setting high standards for staff and
students and mobilizing educators and the community around a clear set
of educational goals.
In fact, there are successful schools all over the country, in every
type of
[[Page S485]]
community, that are living proof that all children have the ability to
achieve beyond our wildest expectations, no matter what their economic
or social background.
Success is not yet the rule in all of our schools. Our job, in this
Congress, is to support parents and educators in every community as
they apply these lessons and leverage federal funds so that they create
change in areas where success continues to lag. We know what works. Now
we must dedicate the resources needed to apply what works and hold the
system accountable for real results. Again. I want to thank my
colleague, Senator Lugar, for his cosponsorship of this bill.
Mr. President, I ask unanimous consent that a copy of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 158
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``School Improvement
Accountability Act''.
TITLE I--HELPING DISADVANTAGED CHILDREN
SEC. 101. RESERVATIONS FOR ACCOUNTABILITY.
Section 1003 of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6303) is amended to read as follows:
``SEC. 1003. RESERVATION FOR ACCOUNTABILITY AND SCHOOL
IMPROVEMENT.
``(a) State Reservation.--
``(1) In general.--Each State educational agency shall
reserve 3 percent of the amount the agency receives under
part A for each of fiscal years 2002 and 2003, and 5 percent
of that amount for each of fiscal years 2004 through 2006, to
carry out paragraph (2) and to carry out its responsibilities
under sections 1116 and 1117, including carrying out its
statewide system of technical assistance and providing
support for local educational agencies.
``(2) Local educational agencies.--Of the amount reserved
under paragraph (1) for any fiscal year, the State
educational agency shall allocate at least 80 percent
directly to local educational agencies. In making allocations
under this paragraph, the State educational agency shall give
first priority to agencies, and agencies serving schools,
identified for corrective action or improvement under section
1116(c).
``(3) Use of funds.--Each local educational agency
receiving an allotment under paragraph (2) shall use the
allotment to--
``(A) carry out corrective action, as defined in section
1116(c)(5)(A), in those schools; or
``(B) achieve substantial improvement in the performance of
those schools.
``(b) National Activities.--From the total amount
appropriated for any fiscal year to carry out this title, the
Secretary may reserve not more than 0.30 percent to conduct
evaluations and studies and to collect data.
SEC. 102. IMPROVED ACCOUNTABILITY.
(a) State Plans.--Section 1111(b) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6311(b)) is
amended--
(1) in the subsection heading, by striking ``and
Assessments'' and inserting ``, Assessments, and
Accountability'';
(2) by amending paragraph (2) to read as follows:
``(2) Adequate yearly progress.--(A) Each State plan shall
specify what constitutes adequate yearly progress in student
achievement, under the State's accountability system
described in paragraph (4), for each school and each local
educational agency receiving funds under this part, and for
the State.
``(B) The specification of adequate yearly progress in the
State plan for schools--
``(i) shall be based primarily on the standards described
in paragraph (1) and the valid and reliable assessments
aligned to State standards described in paragraph (3);
``(ii) shall include specific numerical adequate yearly
progress requirements in each subject and grade included in
the State assessments at least for each of the assessments
required under paragraph (3) and shall base the numerical
goal required for each group of students specified in clause
(iv) upon a timeline that ensures all students meet or exceed
the proficient level of performance on the assessments
required by this section within 10 years after the effective
date of the School Improvement Accountability Act;
``(iii) shall include other academic indicators, such as
school completion or dropout rates, with the data for all
such academic indicators disaggregated as required by clause
(iv), but the inclusion of such indicators shall not decrease
the number of schools or local educational agencies that
would be subject to identification for improvement or
corrective action if the indicators were not included;
``(iv) shall compare separately data for the State as a
whole, for each local educational agency, and for each
school, regarding the performance and progress of students,
disaggregated by each major ethnic and racial group, by
English proficiency status, and by economically disadvantaged
students as compared with students who are not economically
disadvantaged (except that such disaggregation shall not be
required in a case in which the number of students in a
category would be insufficient to yield statistically
reliable information or the results would reveal individually
identifiable information about individual students); and
``(v) shall compare the proportion of students at the
basic, proficient, and advanced levels of performance in a
grade for a year with the proportion of students at each of
the 3 levels in the same grade in the previous year.
``(C)(i) Adequate yearly progress for a local educational
agency shall be based upon both--
``(I) the number or percentage of schools identified for
school improvement or corrective action; and
``(II) the progress of the local educational agency in
reducing the number or length of time schools are identified
for school improvement or corrective action.
``(ii) The State plan shall provide that each local
educational agency shall ensure that, not later than the end
of the fourth academic year after the effective date of the
School Improvement Accountability Act, the percentage of
schools making adequate yearly progress among schools whose
concentrations of poor children are greater than the average
concentration of such children served by the local
educational agency shall not be less than the percentage of
schools making adequate yearly progress among schools whose
concentrations of poor children are less than the average
concentration of such children served by the local
educational agency.
``(D)(i) Adequate yearly progress for a State shall be
based upon both--
``(I) the number or percentage of local educational
agencies identified for improvement or corrective action; and
``(II) the progress of the State in reducing the number or
length of time local educational agencies are identified for
improvement or corrective action.
``(ii) The State plan shall provide that the State shall
ensure that, not later than the end of the fourth academic
year after the effective date of the School Improvement
Accountability Act, the percentage of local educational
agencies making adequate yearly progress among local
educational agencies whose concentrations of poor children
are greater than the State average of such concentrations
shall not be less than the percentage of local educational
agencies making adequate yearly progress among local
educational agencies whose concentrations of poor children
are less than the State average.'';
(3) in paragraph (3)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``developed or adopted'' and inserting ``in
place''; and
(ii) by inserting ``, not later than the school year 2000-
2001,'' after ``will be used'';
(B) by redesignating subparagraphs (G), (H), and (I) as
subparagraphs (H), (I), and (J);
(C) in subparagraph (F)--
(i) in clause (ii), by striking ``and'' after the
semicolon; and
(ii) by adding at the end the following:
``(iv) the use of assessments written in Spanish for the
assessment of Spanish-speaking students with limited English
proficiency, if Spanish-language assessments are more likely
than English language assessments to yield accurate and
reliable information regarding what those students know and
can do in content areas other than English; and
``(v) notwithstanding clauses (iii) and (iv), the
assessment (using tests written in English) of reading or
language arts of any student who has attended school in the
United States (not including Puerto Rico) for 3 or more
consecutive years, for purposes of school accountability;'';
(D) by inserting after subparagraph (F) the following:
``(G) result in a report from each local educational agency
that indicates the number and percentage of students excluded
from each assessment at each school, including, where
statistically sound, data disaggregated in accordance with
subparagraph (J), except that a local educational agency
shall be prohibited from providing such information if
providing the information would reveal the identity of any
individual student.''; and
(E) by amending subparagraph (I) (as so redesignated) to
read as follows:
``(I) provide individual student interpretive and
descriptive reports, which shall include scores and other
information on the attainment of student performance
standards that reflect the quality of daily instruction and
learning such as measures of student coursework over time,
student attendance rates, student dropout rates, and rates of
student participation in advanced level courses; and'';
(4) by striking paragraph (7);
(5) by redesignating paragraphs (4), (5), (6), and (8) as
paragraphs (8), (9), (10), and (11), respectively;
(6) by inserting after paragraph (3) the following:
``(4) Accountability.--(A) Each State plan shall
demonstrate that the State has developed and is implementing
a statewide accountability system that is or will be
effective in substantially increasing the numbers and
percentages of all students, including the lowest performing
students, economically disadvantaged students, and students
with limited proficiency in English, who
[[Page S486]]
meet the State's proficient and advanced levels of
performance within 10 years after the date of enactment of
the School Improvement Accountability Act. The State
accountability system shall--
``(i) be the same accountability system the State uses for
all schools or all local educational agencies in the State,
if the State has an accountability system for all schools or
all local educational agencies in the State;
``(ii) hold local educational agencies and schools
accountable for student achievement in at least reading and
mathematics and in any other subject that the State may
choose; and
``(iii) identify schools and local educational agencies for
improvement or corrective action based upon failure to make
adequate yearly progress as defined in the State plan
pursuant to paragraph (2).
``(B) The accountability system described in subparagraph
(A) and described in the State plan shall also include a
procedure for identifying for improvement a school or local
educational agency, intervening in that school or agency, and
(if that intervention is not effective) implementing a
corrective action not later than 3 years after first
identifying such agency or school, that--
``(i) complies with sections 1116 and 1117, including the
provision of technical assistance, professional development,
and other capacity-building as needed, to ensure that schools
and local educational agencies so identified have the
resources, skills, and knowledge needed to carry out their
obligations under sections 1114 and 1115 and to meet the
requirements for adequate yearly progress described in
paragraph (2); and
``(ii) includes rigorous criteria for identifying those
agencies and schools based upon failure to make adequate
yearly progress in student achievement in accordance with
paragraph (2).
``(5) Public notice and comment.--Each State plan shall
contain assurances that--
``(A) in developing the State plan provisions relating to
adequate yearly progress, the State diligently sought public
comment from a range of institutions and individuals in the
State with an interest in improved student achievement; and
``(B) the State will continue to make a substantial effort
to ensure that information regarding this part is widely
known and understood by citizens, parents, teachers, and
school administrators throughout the State, and is provided
in a widely read or distributed medium.
``(6) Annual review.--The State plan shall provide an
assurance that the State will annually submit to the
Secretary information, as part of the State's consolidated
plan under section 14302, on the extent to which schools and
local educational agencies are making adequate yearly
progress, including the number and names of schools and local
educational agencies identified for improvement and
corrective action under section 1116, the steps taken to
address the performance problems of such schools and local
educational agencies, and the number and names of schools
that are no longer so identified, for purposes of determining
State and local compliance with section 1116.
``(7) Penalties.--(A) The State plan shall provide that, if
the State fails to meet the deadlines described in paragraphs
(1)(C) and (10) for demonstrating that the State has in place
high-quality State content and student performance standards
and aligned assessments, or if the State fails to establish a
system for measuring and monitoring adequate yearly progress,
for a fiscal year, including having the ability to
disaggregate student achievement data for the assessments as
required under this section at the State, local educational
agency, and school levels, then the State shall be ineligible
to reserve a greater amount of administrative funds under
section 1003 for the succeeding fiscal year than the State
reserved for such purposes for the fiscal year preceding the
fiscal year in which the failure occurred.
``(B)(i) The State plan shall provide that, except as
described in clause (ii), if the State fails to meet the
deadlines described in paragraphs (1)(C) and (10) for a
fiscal year, then the Secretary may withhold funds made
available under this part for administrative expenses for the
succeeding fiscal year in such amount as the Secretary
determines appropriate.
``(ii) The State plan shall provide that, if the State
fails to meet the deadlines described in paragraphs (1)(C)
and (10) for the succeeding fiscal year or a subsequent
fiscal year, the Secretary shall withhold not less than \1/5\
of the funds made available under this part for
administrative expenses for the fiscal year.
``(C) The State plan shall provide that, if the State has
not developed challenging State assessments that are aligned
to challenging State content standards in at least
mathematics and reading or language arts by school year 2000-
2001, the State shall not be eligible for designation as an
Ed-Flex Partnership State under the Education Flexibility
Partnership Act of 1999 until the State develops such
assessments, and the State shall be subject to such other
penalties as are provided in this Act for failure to develop
the assessments.''; and
(7) by adding at the end the following:
``(12) School reports.--The State plan shall provide that
individual school reports publicized and disseminated under
section 1116(a)(2) shall include information on the total
number of students excluded from each assessment at each
school, including, where statistically sound, data
disaggregated in accordance with paragraph (3)(J), and shall
include information on why such students were excluded from
the assessment. In issuing this report, a local educational
agency may not provide any information that would violate the
privacy or reveal the identity of any individual student.''.
(b) Assurances.--Section 1112(c)(1) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6312(c)(1)) is
amended--
(1) in subparagraph (G), by striking ``; and'' and
inserting a semicolon;
(2) in subparagraph (H), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(I) ensure, through incentives for voluntary transfers,
the provision of professional development, and recruitment
programs, that low-income students and minority students are
not taught at higher rates than other students by
unqualified, out-of-field, or inexperienced teachers.''.
(c) Assessment and Improvement.--Section 1116 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6317) is amended--
(1) by amending subsection (a) to read as follows:
``(a) State and Local Review.--
``(1) In general.--Each local educational agency receiving
funds under this part shall use the State assessments and
other academic indicators described in the State plan or in a
State-approved local educational agency plan to review
annually the progress of each school served under this part
by the agency to determine whether the school is making the
adequate yearly progress specified in section 1111(b)(2)
toward enabling all students to meet the State's student
performance standards described in the State plan.
``(2) Publication and dissemination; results.--Each local
educational agency receiving funds under this part shall--
``(A) publicize and disseminate in individual school
reports that include statistically sound results
disaggregated in the same manner as results are disaggregated
under section 1111(b)(3)(J), to teachers and other staff,
parents, students, and the community, the results of the
annual review under paragraph (1) and (if not already
included in the review), graduation rates, attendance rates,
retention rates, and rates of participation in advanced level
courses, for all schools served under this part; and
``(B) provide the results of the annual review to schools
served by the agency under this part so that the schools can
continually refine their programs of instruction to help all
students served under this part in those schools to meet the
State's student performance standards.'';
(2) in subsection (c)--
(A) by amending paragraph (1) to read as follows:
``(1) In general.--(A) A local educational agency shall
identify for school improvement any school served under this
part that--
``(i) for 2 consecutive years failed to make adequate
yearly progress as defined in the State's plan under section
1111, except that in the case of a school participating in a
targeted assistance program under section 1115, a local
educational agency may review the progress of only those
students in such school who are served under this part; or
``(ii) was identified for school improvement under this
section on the day preceding the date of enactment of the
School Improvement Accountability Act.
``(B) The 2-year period described in subparagraph (A)(i)
shall include any continuous period of time immediately
preceding the date of the enactment of such Act, during which
a school did not make adequate yearly progress as defined in
the State's plan, as such plan was in effect on the day
preceding the date of enactment.'';
(B) by amending paragraph (2) to read as follows:
``(2) Requirements.--(A)(i) Each school identified under
paragraph (1)(A) shall promptly notify a parent of each
student enrolled in the school that the school was identified
for improvement by the local educational agency and provide
with the notification--
``(I) the reasons for such identification; and
``(II) information about opportunities for parents to
participate in the school improvement process.
``(ii) The notification under this subparagraph shall be in
a format and, to the extent practicable, in a language, that
the parents can understand.
``(B)(i) Before identifying a school for school improvement
under paragraph (1)(A), the local educational agency shall
inform the school that the agency proposes to identify the
school for school improvement and provide the school with an
opportunity to review the school-level data, including
assessment data, upon which the proposed determination
regarding identification is based.
``(ii) If the school believes that the proposed
identification is in error for statistical or other
substantive reasons, the school may provide supporting
evidence to the local educational agency during the review
period, and the agency shall consider such evidence before
making a final determination regarding identification.
``(iii) The review period under this subparagraph shall not
exceed 30 days. At the end of the period, the agency shall
make public a final determination regarding identification of
the school.
[[Page S487]]
``(C) Each school identified under paragraph (1)(A) shall,
within 3 months after being so identified, and in
consultation with parents, the local educational agency, and
the school support team or other outside experts, develop or
revise a school plan that--
``(i) addresses the fundamental teaching and learning needs
in the school;
``(ii) describes the specific achievement problems to be
solved;
``(iii) includes the strategies, supported by valid and
reliable evidence of effectiveness, with specific goals and
objectives, that have the greatest likelihood of improving
the performance of participating students in meeting the
State's student performance standards;
``(iv) explains how those strategies will work to address
the achievement problems identified under clause (ii),
including providing a summary of evaluation-based evidence of
student achievement after implementation of those strategies
in other schools;
``(v) addresses the need for high-quality staff by ensuring
that all new teachers in the school in programs supported
with funds provided under this part are fully qualified;
``(vi) addresses the professional development needs of the
instructional staff of the school by describing a plan for
spending a minimum of 10 percent of the funds received by the
school under this part on professional development that--
``(I) does not supplant professional development services
that the instructional staff would otherwise receive; and
``(II) is designed to increase the content knowledge of
teachers, build teachers' capacity to align classroom
instruction with challenging content standards, and bring all
students in the school to proficient or advanced levels of
performance;
``(vii) identifies specific goals and objectives the school
will undertake for making adequate yearly progress, including
specific numerical performance goals and targets that are
high enough to ensure that all groups of students specified
in section 1111(b)(2)(B)(iv) meet or exceed the proficient
levels of performance in each subject area within 10 years
after the date of enactment of the School Improvement
Accountability Act; and
``(viii) specifies the responsibilities of the school and
the local educational agency, including how the local
educational agency will hold the school accountable for, and
assist the school in, meeting the school's obligations to
provide enriched and accelerated curricula, effective
instructional methods, highly qualified professional
development, and timely and effective individual assistance,
in partnership with parents.
``(D)(i) The school shall submit the plan (including a
revised plan) to the local educational agency for approval.
``(ii) The local educational agency shall promptly subject
the plan to a peer review process, work with the school to
revise the plan as necessary, and approve the plan.
``(iii) The school shall implement the plan as soon as the
plan is approved.'';
(C) by amending paragraph (4) to read as follows:
``(4) Technical assistance.--(A) For each school identified
for school improvement under paragraph (1)(A), the local
educational agency shall provide technical assistance as the
school develops and implements the school's plan.
``(B) Such technical assistance--
``(i) shall include information on effective methods and
instructional strategies that are supported by valid and
reliable evidence of effectiveness;
``(ii) shall be designed to strengthen the core academic
program for the students served under this part, address
specific elements of student performance problems, and
address problems, if any, in implementing the parental
involvement requirements in section 1118, implementing the
professional development provisions in section 1119, and
carrying out the responsibilities of the school and local
educational agency under the plan; and
``(iii) may be provided directly by the local educational
agency, through mechanisms authorized under section 1117, or
(with the local educational agency's approval) by an
institution of higher education whose teacher preparation
program is not identified as low performing by its State and
that is in full compliance with the requirements of section
207 of the Higher Education Act of 1965, a private nonprofit
organization, an educational service agency, a comprehensive
regional assistance center under part A of title XIII, or
other entities with experience in helping schools improve
achievement.
``(C) Technical assistance provided under this section by
the local educational agency or an entity approved by such
agency shall be supported by valid and reliable evidence of
effectiveness.'';
(D) by amending paragraph (5) to read as follows:
``(5) Corrective action.--In order to help students served
under this part meet challenging State standards, each local
educational agency shall implement a system of corrective
action in accordance with the following:
``(A) In this paragraph, the term `corrective action' means
action, consistent with State and local law, that--
``(i) substantially and directly responds to the consistent
academic failure that caused the local educational agency to
take such action and to any underlying staffing, curricular,
or other problems in the school involved; and
``(ii) is designed to substantially increase the likelihood
that students will perform at the proficient and advanced
performance levels.
``(B) After providing technical assistance under paragraph
(4), the local educational agency--
``(i) may take corrective action at any time with respect
to a school that has been identified under paragraph (1)(A);
``(ii) shall take corrective action with respect to any
school that fails to make adequate yearly progress, as
defined by the State, for 2 consecutive years following the
school's identification under paragraph (1)(A), at the end of
the second year; and
``(iii) shall continue to provide technical assistance
while instituting any corrective action under clause (i) or
(ii).
``(C) In the case of a school described in subparagraph
(B)(ii), the local educational agency--
(i) shall take corrective action that changes the school's
administration or governance by--
(I) instituting and fully implementing a new curriculum,
including providing appropriate professional development for
all relevant staff, that is supported by valid and reliable
evidence of effectiveness and offers substantial promise of
improving educational achievement for low-performing
students;
(II) restructuring the school, such as by creating schools
within schools or other small learning environments, or
making alternative governance arrangements (such as the
creation of a public charter school);
(III) redesigning the school by reconstituting all or part
of the school staff;
(IV) eliminating the use of noncredentialed teachers; or
(V) closing the school;
(ii) shall provide professional development for all
relevant staff, that is supported by valid and reliable
evidence of effectiveness and that offers substantial promise
of improving student educational achievement and is directly
related to the content area in which each teacher is
providing instruction and the State's content and performance
standards in that content area; and
(iii) may defer, reduce, or withhold funds provided to
carry out this title.
``(D)(i) When a local educational agency has identified a
school for corrective action under subparagraph (B)(ii), the
agency shall provide all students enrolled in the school with
the option to transfer to another public school that is
within the area served by the local educational agency that
has not been identified for school improvement and provide
such students with transportation (or the costs of
transportation) to such school, subject to the following
requirements:
``(I) Such transfer must be consistent with State or local
law.
``(II) If the local educational agency cannot accommodate
the request of every student from the identified school, the
agency shall permit as many students as possible to transfer,
with such students being selected at random on a
nondiscriminatory and equitable basis.
``(III) The local educational agency may use not more than
10 percent of the funds the local educational agency receives
through the State reservation under section 1003(a)(2) to
provide transportation to students whose parents choose to
transfer the students to a different school under this
subparagraph.
``(ii) If all public schools served by the local
educational agency are identified for corrective action, the
agency shall, to the extent practicable, establish a
cooperative agreement with another local educational agency
in the area to enable students served by the agency to
transfer to a school served by that other agency.
``(E) A local educational agency may delay, for a period
not to exceed 1 year, implementation of corrective action if
the failure to make adequate yearly progress was justified
due to exceptional or uncontrollable circumstances such as a
natural disaster or a precipitous and unforeseen decline in
the financial resources of the local educational agency or
school.
``(F) The local educational agency shall publish and
disseminate to parents and the public in a format and, to the
extent practicable, in a language the parents and the public
can understand, through such means as the Internet, the
media, and public agencies, information on any corrective
action the agency takes under this paragraph.
``(G)(i) Before taking corrective action with respect to
any school under this paragraph, the local educational agency
shall inform the school that the agency proposes to take
corrective action and provide the school with an opportunity
to review the school-level data, including assessment data,
upon which the proposed determination regarding corrective
action is based.
``(ii) If the school believes that the proposed
determination is in error for statistical or other
substantive reasons, the school may provide supporting
evidence to the local educational agency during the review
period, and the agency shall consider such evidence before
making a final determination regarding corrective action.
``(iii) The review period under this subparagraph shall not
exceed 45 days. At the end of the period, the local
educational agency shall make public a final determination
regarding corrective action for the school.'';
(E) by amending paragraph (6) to read as follows:
[[Page S488]]
``(6) State educational agency responsibilities.--If a
State educational agency determines that a local educational
agency failed to carry out its responsibilities under this
section, the State educational agency shall take such action
as the agency finds necessary, consistent with this section,
to improve the affected schools and to ensure that the local
educational agency carries out its responsibilities under
this section.''; and
(F) by amending paragraph (7) to read as follows:
``(7) Waivers.--The State educational agency shall review
any waivers that have previously been approved for a school
identified for improvement or corrective action, and shall
terminate any waiver approved by the State, under the
Educational Flexibility Partnership Act of 1999, if the State
determines, after notice and an opportunity for a hearing,
that the waiver is not helping such school make adequate
yearly progress toward meeting the goals, objectives, and
performance targets in the school's improvement plan.''; and
(3) by amending subsection (d) to read as follows:
``(d) State Review and Local Educational Agency
Improvement.--
``(1) In general.--A State educational agency shall
annually review the progress of each local educational agency
receiving funds under this part to determine whether schools
receiving assistance under this part are making adequate
yearly progress as defined in section 1111(b)(2) toward
meeting the State's student performance standards.
``(2) Identification of local educational agency for
improvement.--A State educational agency shall identify for
improvement any local educational agency that--
``(A) for 2 consecutive years failed to make adequate
yearly progress as defined in the State's plan under section
1111(b)(2); or
``(B) was identified for improvement under this section as
this section was in effect on the day preceding the date of
enactment of the School Improvement Accountability Act.
``(3) Transition.--The 2-year period described in paragraph
(2)(A) shall include any continuous period of time
immediately preceding the date of enactment of such Act,
during which a local educational agency did not make adequate
yearly progress as defined in the State's plan, as such plan
was in effect on the day preceding the date of enactment.
``(4) Targeted assistance schools.--For purposes of
reviewing the progress of targeted assistance schools served
by a local educational agency, a State educational agency may
choose to review the progress of only the students in such
schools who are served under this part.
``(5) Opportunity to review and present evidence.--(A)
Before identifying a local educational agency for improvement
under paragraph (2), a State educational agency shall inform
the local educational agency that the State educational
agency proposes to identify the local educational agency for
improvement and provide the local educational agency with an
opportunity to review the local educational agency data,
including assessment data, upon which the proposed
determination regarding identification is based.
``(B) If the local educational agency believes that the
proposed identification is in error for statistical or other
substantive reasons, the agency may provide supporting
evidence to the State educational agency during the review
period, and the agency shall consider such evidence before
making a final determination regarding identification.
``(C) The review period under this paragraph shall not
exceed 30 days. At the end of the period, the State shall
make public a final determination regarding identification of
the local educational agency.
``(6) Notification to parents.--(A) The local educational
agency shall promptly notify a parent of each student
enrolled in a school served by a local educational agency
identified for improvement that the agency was identified for
improvement and provide with the notification--
(i) the reasons for the agency's identification; and
(ii) information about opportunities for parents to
participate in upgrading the quality of the local educational
agency.
``(B) The notification under this paragraph shall be in a
format and, to the extent practicable, in a language, that
the parents can understand.
``(7) Local educational agency revisions.--(A) Each local
educational agency identified under paragraph (2) shall, not
later than 3 months after being so identified, develop or
revise a local educational agency plan and annual academic
achievement goals, in consultation with parents, school
staff, and others.
``(B) Achievement goals.--The annual academic achievement
goals shall be sufficiently high to ensure that all students
within the jurisdiction involved, including the lowest
performing students, economically disadvantaged students,
students of different races and ethnicities, and students
with limited English proficiency will meet or exceed the
proficient level of performance on the assessments required
by section 1111 within 10 years after the date of enactment
of the School Improvement Accountability Act.
``(C) The plan shall--
``(i) address the fundamental teaching and learning needs
in the schools served by that agency, and the specific
academic problems of low-performing students, including
stating a determination of why the local educational agency's
prior plan, if any, failed to bring about increased
achievement;
``(ii) incorporate strategies that are supported by valid
and reliable evidence of effectiveness and that strengthen
the core academic program in the local educational agency;
``(iii) identify specific annual academic achievement goals
and objectives that will--
``(I) have the greatest likelihood of improving the
performance of participating students in meeting the State's
student performance standards; and
``(II) include specific numerical performance goals and
targets for each of the groups of students for which data are
disaggregated pursuant to section 1111(b)(2)(B)(iv);
``(iv) address the professional development needs of the
instructional staff of the schools by describing a plan for
spending a minimum of 10 percent of the funds received by the
schools under this part on professional development that--
``(I) does not supplant professional development services
that the instructional staff would otherwise receive; and
``(II) is designed to increase the content knowledge of
teachers, build teachers' capacity to align classroom
instruction with challenging content standards, and bring all
students in the schools to proficient or advanced levels of
performance;
``(v) identify measures the local educational agency will
undertake to make adequate yearly progress;
``(vi) identify how, pursuant to paragraph (6), the local
educational agency will provide written notification to
parents in a format and, to the extent practicable, in a
language the parents can understand;
``(vii) specify the responsibilities of the State
educational agency and the local educational agency under the
plan; and
``(viii) include strategies to promote effective parental
involvement in the schools.
``(D) The local educational agency shall submit the plan
(including a revised plan) to the State educational agency
for approval. The State educational agency shall, within 60
days after submission of the plan, subject the plan to a peer
review process, work with the local educational agency to
revise the plan as necessary, and approve the plan.
``(E) The local educational agency shall implement the plan
(including a revised plan) as soon as the plan is approved.
``(8) State educational agency responsibility.--(A) For
each local educational agency identified under paragraph (2),
the State educational agency (or an entity authorized by the
agency) shall provide technical or other assistance, if
requested, as authorized under section 1117, to better enable
the local educational agency--
``(i) to develop and implement the local educational agency
plan as approved by the State educational agency consistent
with the requirements of this section; and
``(ii) to work with schools identified for improvement.
``(B) Technical assistance provided under this section by
the State educational agency or an entity authorized by the
agency shall be supported by valid and reliable evidence of
effectiveness.
``(9) Corrective action.--In order to help students served
under this part meet challenging State standards, each State
educational agency shall implement a system of corrective
action in accordance with the following:
``(A) In this paragraph, the term `corrective action' means
action, consistent with State law, that--
``(i) substantially and directly responds to the consistent
academic failure that caused the State educational agency to
take such action and to any underlying staffing, curricular,
or other problems in the schools involved; and
``(ii) is designed to substantially increase the likelihood
that students served under this part will perform at the
proficient and advanced performance levels.
``(B) After providing technical assistance under paragraph
(8) and subject to subparagraph (D), the State educational
agency--
``(i) may take corrective action at any time with respect
to a local educational agency that has been identified under
paragraph (2);
``(ii) shall take corrective action with respect to any
local educational agency that fails to make adequate yearly
progress, as defined by the State, for 3 consecutive years
following the agency's identification under paragraph (2), at
the end of the third year; and
``(iii) shall continue to provide technical assistance
while instituting any corrective action under clause (i) or
(ii).
``(C) In the case of a local educational agency described
in subparagraph (B)(ii), the State educational agency shall
take at least 1 of the following corrective actions:
``(i) Withholding funds from the local educational agency.
``(ii) Reconstituting school district personnel.
``(iii) Removing particular schools from the jurisdiction
of the local educational agency and establishing alternative
arrangements for public governance and supervision of the
schools.
``(iv) Appointing, through the State educational agency, a
receiver or trustee to administer the affairs of the local
educational agency in place of the superintendent and school
board.
``(v) Abolishing or restructuring the local educational
agency.
[[Page S489]]
``(D) When a State educational agency has identified a
local educational agency for corrective action under
subparagraph (B)(ii), the State educational agency shall
provide all students enrolled in a school served by the local
educational agency with a plan to transfer to a higher
performing public school served by another local educational
agency and shall provide such students with transportation
(or the costs of transportation) to such schools, subject to
the following requirements:
``(i) The provision of the transfer shall be done in
conjunction with at least 1 additional action described in
this paragraph.
``(ii) If the State educational agency cannot accommodate
the request of every student from the schools served by the
agency, the agency shall permit as many students as possible
to transfer, with such students being selected at random on a
nondiscriminatory and equitable basis.
``(iii) The State educational agency may use not more than
10 percent of the funds the agency receives through the State
reservation under section 1003(a)(2) to provide
transportation to students whose parents choose to transfer
their child to a different school under this subparagraph.
``(E) Prior to implementing any corrective action under
this paragraph, the State educational agency shall provide
due process and a hearing to the affected local educational
agency, if State law provides for such process and hearing.
The hearing shall take place not later than 45 days following
the decision to implement the corrective action.
``(F) The State educational agency shall publish and
disseminate to parents and the public in a format and, to the
extent practicable, in a language the parents and the public
can understand, through such means as the Internet, the
media, and public agencies, information on any corrective
action the agency takes under this paragraph.
``(G) A State educational agency may delay, for a period
not to exceed 1 year, implementation of corrective action if
the failure to make adequate yearly progress was justified
due to exceptional or uncontrollable circumstances such as a
natural disaster or a precipitous and unforeseen decline in
the financial resources of the local educational agency.
``(10) Waivers.--The State educational agency shall review
any waivers that have previously been approved for a local
educational agency identified for improvement or corrective
action, and shall terminate any waiver approved by the State,
under the Educational Flexibility Partnership Act of 1999, if
the State determines, after notice and an opportunity for a
hearing, that the waiver is not helping such agency make
adequate yearly progress toward meeting the goals,
objectives, and performance targets in the agency's
improvement plan.''.
(d) State Assistance for School Support and Improvement.--
Section 1117(a) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6318(a)) is amended to read as follows:
``(a) System for Support.--
``(1) In general.--Each State educational agency shall
establish a statewide system of intensive and sustained
support and improvement for local educational agencies and
schools receiving funds under this part, in order to increase
the opportunity for all students served by those agencies and
schools to meet the State's content standards and student
performance standards.
``(2) Priorities.--In carrying out this section, a State
educational agency shall--
``(A) provide support and assistance to local educational
agencies and schools identified for corrective action under
section 1116;
``(B) provide support and assistance to other local
educational agencies and schools identified for improvement
under section 1116; and
``(C) provide support and assistance to each school
receiving funds under this part in which the number of
students in poverty equals or exceeds 75 percent of the total
number of students enrolled in such school.
``(3) Approaches.--In order to achieve the objectives of
this subsection, each statewide system shall provide
technical assistance and support through approaches such as--
``(A) use of school support teams, composed of individuals
who are knowledgeable about research on and practice of
teaching and learning, particularly about strategies for
improving educational results for low-achieving students;
``(B) the designation and use of `Distinguished Educators',
chosen from schools served under this part that have been
especially successful in improving academic achievement;
``(C) assisting local educational agencies or schools to
implement research-based comprehensive school reform models;
and
``(D) use of a peer review process designed to increase the
capacity of local educational agencies and schools to develop
high-quality school improvement plans.
``(4) Funds.--Each State educational agency--
``(A) shall use funds reserved under section 1003(a)(1),
but not used under section 1003(a)(2) and funds appropriated
under section 1002(f) to carry out this section; and
``(B) may use State administrative funds authorized for
such purpose.
``(5) Alternatives.--The State educational agency may
devise additional approaches to providing the assistance
described in subparagraphs (A) and (B) of paragraph (3),
other than the provision of assistance under the statewide
system, such as providing assistance through institutions of
higher education, educational service agencies, or other
local consortia. The State educational agency may seek
approval from the Secretary to use funds made available under
section 1003 for such approaches as part of the State
plan.''.
(e) Conforming Amendments.--The Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6301 et seq.) is amended--
(1) in section 1111(b)(1)(C) (20 U.S.C. 6311(b)(1)(C)), by
striking ``paragraph (6)'' and inserting ``paragraph (10)'';
(2) in section 1112(c)(1)(D) (20 U.S.C. 6312(c)(1)(D)), by
striking ``section 1116(c)(4)'' and inserting ``section
1116(c)(5)'';
(3) in section 1117(c)(2)(A) (20 U.S.C. 6318(c)(2)(A)), by
striking ``section 1111(b)(2)(A)(i)'' and inserting ``section
1111(b)(2)(A)'';
(4) in section 1118(c)(4)(B) (20 U.S.C. 6319(c)(4)(B)), by
striking ``school performance profiles required under section
1116(a)(3)'' and inserting ``individual school reports
required under section 1116(a)(2)(A)'';
(5) in section 1118(e)(1) (20 U.S.C. 6319(e)(1)), by
striking ``section 1111(b)(8)'' and inserting ``section
1111(b)(11)''; and
(6) in section 1119(h)(3) (20 U.S.C. 6320(h)(3)), by
striking ``section 1116(d)(6)'' and inserting ``section
1116(d)(9)''.
SEC. 103. COMPREHENSIVE SCHOOL REFORM.
Title I of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6301 et seq.) is amended--
(1) by redesignating part F as part G; and
(2) by inserting after part E the following:
``PART F--COMPREHENSIVE SCHOOL REFORM
``SEC. 1551. PURPOSE.
``The purpose of this part is to provide financial
incentives for schools to develop comprehensive school
reforms based upon promising and effective practices and
research-based programs that emphasize basic academics and
parental involvement so that all children can meet
challenging State content and student performance standards.
``SEC. 1552. PROGRAM AUTHORIZATION.
``(a) Program Authorized.--
``(1) In general.--The Secretary may award grants to State
educational agencies, from allotments under paragraph (2), to
enable the State educational agencies to award subgrants to
local educational agencies to carry out the purpose described
in section 1551.
``(2) Allotments.--
``(A) Reservations.--Of the amount appropriated under
section 1558 for a fiscal year, the Secretary may reserve--
``(i) not more than 1 percent to provide assistance to
schools supported by the Bureau of Indian Affairs and in the
United States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands according to
their respective needs for assistance under this part; and
``(ii) not more than 1 percent to conduct national
evaluation activities described in section 1557.
``(B) In general.--Of the amount appropriated under section
1558 that remains after making the reservation under
subparagraph (A) for a fiscal year, the Secretary shall allot
to each State for the fiscal year an amount that bears the
same ratio to the remainder for that fiscal year as the
amount made available under section 1124 to the State for the
preceding fiscal year bears to the total amount made
available under section 1124 to all States for the preceding
fiscal year.
``(C) Reallotment.--If a State does not apply for funds
under this part, the Secretary shall reallot such funds to
other States in proportion to the amount allotted to such
other States under subparagraph (B).
``SEC. 1553. STATE APPLICATIONS.
``(a) In General.--Each State educational agency that
desires to receive a grant under this part shall submit an
application to the Secretary at such time, in such manner,
and containing such information as the Secretary may
reasonably require.
``(b) Contents.--Each such application shall describe--
``(1) the process and selection criteria by which the State
educational agency, using expert review, will select local
educational agencies to receive subgrants under this part;
``(2) how the State educational agency will ensure that
only comprehensive school reforms that are based upon
promising and effective practices and research-based programs
receive funds under this part;
``(3) how the State educational agency will disseminate
information on comprehensive school reforms that are based
upon promising and effective practices and research-based
programs;
``(4) how the State educational agency will evaluate the
implementation of such reforms and measure the extent to
which the reforms have resulted in increased student academic
performance; and
``(5) how the State educational agency will make available
technical assistance to a local educational agency in
evaluating, developing, and implementing comprehensive school
reform.
``SEC. 1554. STATE USE OF FUNDS.
``(a) In General.--Except as provided in subsection (e), a
State educational agency
[[Page S490]]
that receives a grant under this part shall use the grant
funds to award subgrants, on a competitive basis, to local
educational agencies (including consortia of local
educational agencies) in the State that receive funds under
part A.
``(b) Subgrant Requirements.--A subgrant to a local
educational agency shall be--
``(1) of sufficient size and scope to support the initial
costs for the particular comprehensive school reform plan
selected or designed by each school identified in the
application of the local educational agency;
``(2) in an amount not less than $50,000 for each
participating school; and
``(3) renewable for 2 additional 1-year periods after the
initial 1-year grant is made, if the participating school is
making substantial progress in the implementation of reforms.
``(c) Priority.--A State educational agency, in awarding
subgrants under this part, shall give priority to local
educational agencies that--
``(1) plan to use the funds in schools identified for
improvement or corrective action under section 1116(c); and
``(2) demonstrate a commitment to assist schools with
budget allocation, professional development, and other
strategies necessary to ensure that comprehensive school
reforms are properly implemented and are sustained in the
future.
``(d) Grant Consideration.--In awarding subgrants under
this part, the State educational agency shall take into
consideration the equitable distribution of subgrants to
different geographic regions within the State, including
urban and rural areas, and to schools serving elementary
school and secondary school students.
``(e) Administrative Costs.--A State educational agency
that receives a grant under this part may reserve not more
than 5 percent of the grant funds for administrative,
evaluation, and technical assistance expenses.
``(f) Supplement.--Funds made available under this part
shall be used to supplement, and not supplant, any other
Federal, State, or local funds that would otherwise be
available to carry out the activities assisted under this
part.
``(g) Reporting.--Each State educational agency that
receives a grant under this part shall provide to the
Secretary such information as the Secretary may require,
including the names of local educational agencies and schools
receiving assistance under this part, the amount of the
assistance, and a description of the comprehensive school
reform model selected and used.
``SEC. 1555. LOCAL APPLICATIONS.
``(a) In General.--Each local educational agency desiring a
subgrant under this part shall submit an application to the
State educational agency at such time, in such manner, and
containing such information as the State educational agency
may reasonably require.
``(b) Contents.--Each such application shall--
``(1) identify the schools, that are eligible for
assistance under part A, that plan to implement a
comprehensive school reform program and include the projected
costs of such program;
``(2) describe the promising and effective practices and
research-based programs that such schools will implement;
``(3) describe how the local educational agency will
provide technical assistance and support for the effective
implementation of the promising and effective practices and
research-based school reforms selected by such schools; and
``(4) describe how the local educational agency will
evaluate the implementation of such reforms and measure the
results achieved in improving student academic performance.
``SEC. 1556. LOCAL USE OF FUNDS.
``(a) Use of Funds.--A local educational agency that
receives a subgrant under this part shall provide the
subgrant funds to schools, that are eligible for assistance
under part A and served by the agency, to enable the schools
to implement a comprehensive school reform program for--
``(1) employing innovative strategies for student learning,
teaching, and school management that are based upon promising
and effective practices and research-based programs and have
been replicated successfully in schools with diverse
characteristics;
``(2) integrating a comprehensive design for effective
school functioning, including instruction, assessment,
classroom management, professional development, parental
involvement, and school management, that aligns the school's
curriculum, technology, and professional development into a
comprehensive reform plan for schoolwide change designed to
enable all students to meet challenging State content and
student performance standards and addresses needs identified
through a school needs assessment;
``(3) providing high quality and continuous teacher and
staff professional development;
``(4) including measurable goals for student performance;
``(5) providing support to teachers, principals,
administrators, and other school personnel staff;
``(6) including meaningful community and parental
involvement initiatives that will strengthen school
improvement activities;
``(7) using high quality external technical support and
assistance from an entity that has experience and expertise
in schoolwide reform and improvement, which may include an
institution of higher education;
``(8) evaluating school reform implementation and student
performance; and
``(9) identifying other resources, including Federal,
State, local, and private resources, that will be used to
coordinate services supporting and sustaining the school
reform effort.
``(b) Special Rule.--A school that receives funds to
develop a comprehensive school reform program shall not be
limited to using the approaches identified or developed by
the Secretary, but may develop the school's own comprehensive
school reform programs for schoolwide change as described in
subsection (a).
``SEC. 1557. NATIONAL EVALUATION AND REPORTS.
``(a) In General.--The Secretary shall develop a plan for a
national evaluation of the programs assisted under this part.
``(b) Evaluation.--The national evaluation shall--
``(1) evaluate the implementation and results achieved by
schools after 3 years of implementing comprehensive school
reforms; and
``(2) assess the effectiveness of comprehensive school
reforms in schools with diverse characteristics.
``(c) Reports.--Prior to the completion of the national
evaluation, the Secretary shall submit an interim report
describing implementation activities for the Comprehensive
School Reform Program to the Committee on Education and the
Workforce, and the Committee on Appropriations, of the House
of Representatives, and the Committee on Health, Education,
Labor, and Pensions, and the Committee on Appropriations, of
the Senate.
``SEC. 1558. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
part $500,000,000 for fiscal year 2002 and such sums as may
be necessary for each of the 4 succeeding fiscal years.''.
TITLE II--TEACHERS
SEC. 201. STATE APPLICATIONS.
(a) Contents of State Plan.--Section 2205(b)(2) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6645(b)(2)) is amended--
(1) by amending subparagraph (N) to read as follows:
``(N) set specific annual, quantifiable, and measurable
performance goals to increase the percentage of teachers
participating in sustained professional development
activities, reduce the beginning teacher attrition rate, and
reduce the percentage of teachers who are not certified or
licensed, and the percentage who are out-of-field
teachers;'';
(2) by redesignating subparagraph (O) as subparagraph (P);
and
(3) by inserting after subparagraph (N) the following:
``(O) describe how the State will ensure that all teachers
in the State will be fully qualified not later than December
1, 2005; and''.
(b) State and Local Activities.--Part B of title II of the
Elementary and Secondary Education Act (20 U.S.C. 6641 et
seq.) is amended--
(1) by redesignating section 2211 as section 2215;
(2) by inserting after section 2210 the following:
``SEC. 2211. LOCAL CONTINUATION OF FUNDING.
``(a) Agencies.--If a local educational agency applies for
funds from a State under this part for a fourth or subsequent
fiscal year, the agency may not receive the funds for that
fiscal year unless the State determines that the agency has
demonstrated that, in carrying out activities under this part
during the past fiscal year, the agency has annual numerical
performance objectives consisting of--
``(1) improved student performance for all groups
identified in section 1111;
``(2) an increased percentage of teachers participating in
sustained professional development activities;
``(3) a reduction in the beginning teacher attrition rate
for the agency; and
``(4) a reduction in the percentage of teachers who are not
certified or licensed, and the percentage who are out-of-
field teachers, for the agency.
``(b) Schools.--If a local educational agency applies for
funds under this part on behalf of a school for a fourth or
subsequent fiscal year (including applying for funds as part
of a partnership), the agency may not receive the funds for
the school for that fiscal year unless the State determines
that the school has demonstrated that, in carrying out
activities under this part during the past fiscal year, the
school has met the requirements of paragraphs (1) through (4)
of subsection (a).
``SEC. 2212. INFORMATION AND NOTICE TO PARENTS.
``(a) Parents' Right To Know Information.--
``(1) In general.--A local educational agency that receives
funds under this title shall provide, on request, in an
understandable and uniform format, to any parent of a student
attending any school served by the agency, information
regarding the professional qualifications of each of the
student's classroom teachers.
``(2) Contents.--The agency shall provide, at a minimum,
information on--
[[Page S491]]
``(A) whether the teacher has met State certification or
licensing criteria for the academic subjects and grade levels
in which the teacher teaches the student;
``(B) whether the teacher is teaching with emergency or
other provisional credentials, due to which any State
certification or licensing criteria have been waived; and
``(C) the academic qualifications of the teacher in the
academic subjects and grade levels in which the teacher
teaches.
``(b) Notice.--In addition to providing the information
described in subsection (a), if a school that receives funds
under this title assigns a student to a teacher who is not a
fully qualified teacher or assigns a student, for 2 or more
consecutive weeks, to a substitute teacher who is not a fully
qualified teacher, the school shall provide notice of the
assignment to a parent of the student, not later than 15
school days after the assignment.
``SEC. 2213. GENERAL ACCOUNTING OFFICE STUDY.
``Not later than September 30, 2005, the Comptroller
General of the United States shall prepare and submit to the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education,
Labor, and Pensions of the Senate a study setting forth
information regarding the progress of States' compliance in
increasing the percentage of fully qualified teachers for
fiscal years 2001 through 2004.
``SEC. 2214. DEFINITION OF FULLY QUALIFIED.
``(a) In General.--In this part, the term `fully
qualified', used with respect to a teacher, means a teacher
who--
``(1)(A) has demonstrated the subject matter knowledge,
teaching knowledge, and teaching skill necessary to teach
effectively in the academic subject in which the teacher
teaches, according to the criteria described in subsections
(b) and (c); and
``(B) is not a teacher for whom State certification or
licensing requirements have been waived or who is teaching
under an emergency or other provisional credential; or
``(2) meets the standards set by the National Board for
Professional Teaching Standards.
``(b) Elementary School.--For purposes of making the
demonstration described in subsection (a)(1), each teacher
who teaches elementary school students (other than middle
school students) shall, at a minimum--
``(1) have State certification (which may include
certification obtained through an alternative route) or a
State license to teach; and
``(2) hold a bachelor's degree and demonstrate the subject
matter knowledge, teaching knowledge, and teaching skill
required to teach effectively in reading, writing,
mathematics, social studies, science, and other elements of a
liberal arts education.
``(c) Middle School and Secondary School.--For purposes of
making the demonstration described in subsection (a)(1), each
teacher who teaches middle school students or secondary
school students shall, at a minimum--
``(1) have State certification (which may include
certification obtained through an alternative route) or a
State license to teach; and
``(2) hold a bachelor's degree or higher degree and
demonstrate a high level of competence in all academic
subjects in which the teacher teaches through--
``(A) achievement of a high level of performance on
rigorous academic subject area tests;
``(B) completion of an academic major (or courses totaling
an equivalent number of credit hours) in each of the academic
subjects in which the teacher teaches; or
``(C) in the case of teachers hired before the date of
enactment of the School Improvement Accountability Act,
completion of appropriate coursework for mastery of the
academic subjects in which the teacher teaches.''; and
(3) by amending section 2215 (as so redesignated)--
(A) in subsection (a)(3), by adding after ``agency'' the
following: ``for which at least 40 percent of the students
served by the agency are eligible for free or reduced price
lunches under the Richard B. Russell National School Lunch
Act''; and
(B) by inserting after subsection (a)(4) the following:
``(5) Reporting requirements.--Each institution of higher
education receiving assistance under paragraph (1) shall
fully comply with all reporting requirements of title II of
the Higher Education Act of 1965.''.
(c) Conforming Amendments.--The Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6301 et seq.) is amended--
(1) in section 2203(2) (20 U.S.C. 6643(2)), by striking
``section 2211'' and inserting ``section 2215''; and
(2) in section 2205(c)(2) (20 U.S.C. 6645(c)(2)), by
striking ``section 2211'' and inserting ``section 2215''.
TITLE III--INNOVATIVE EDUCATION
SEC. 301. REQUIREMENTS FOR STATE PLANS.
Part B of title VI of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7331 et seq.) is amended by
adding at the end the following:
``SEC. 6203. REQUIREMENTS FOR STATE PLANS.
``(a) State Plans.--In addition to requirements relating to
State applications under this part, the State educational
agency for each State desiring a grant under this title shall
submit a State plan that meets the requirements of this
section to the Secretary at such time, in such manner, and
accompanied by such information as the Secretary may require.
``(b) Consolidated Plan.--A State plan submitted under
subsection (a) may be submitted as part of a consolidated
plan under section 14302, and as part of a State application
described in section 6202.
``(c) Contents.--Each plan submitted under subsection (a)
shall--
``(1) describe how the funds made available through the
grant will be used to increase student academic performance;
``(2) describe annual, quantifiable, and measurable
performance goals that will be used to measure the impact of
those funds on student performance;
``(3) describe the methods the State will use to measure
the annual impact of programs described in the plan and the
extent to which such goals are aligned with State standards;
``(4) certify that the State has in place the standards and
assessments required under section 1111;
``(5) certify that the State educational agency has a
system, as required under section 1111, for--
``(A) holding each local educational agency and school
accountable for adequate yearly progress (as described in
section 1111(b)(2));
``(B) identifying local educational agencies and schools
for improvement and corrective action (as required in
sections 1116 and 1117);
``(C) assisting local educational agencies and schools that
are identified for improvement with the development of
improvement plans; and
``(D) providing technical assistance, professional
development, and other capacity building as needed to get
such agencies and schools out of improvement status;
``(6) certify that the State educational agency will use
the disaggregated results of student assessments required
under section 1111(b)(3), and other measures or indicators
available, to review annually the progress of each local
educational agency and school served under this title to
determine whether each such agency and school is making
adequate yearly progress as required under section
1111(b)(2);
``(7) certify that the State educational agency will take
action against a local educational agency that is identified
for corrective action and receiving funds under this title;
``(8) describe what, if any, State and other non-Federal
resources will be provided to local educational agencies and
schools served under this title to carry out activities
consistent with this title; and
``(9) certify that the State educational agency has a
system to hold local educational agencies accountable for
meeting the annual performance goals required under paragraph
(2).
``(d) Approval.--The Secretary, using a peer review
process, shall approve a State plan submitted under this
section if the State plan meets the requirements of this
section.
``(e) Duration of the Plan.--Each State plan shall remain
in effect for the duration of the State's participation under
this title.
``(f) Requirement.--A State shall not be eligible to
receive funds under this title unless the State has
established the standards and assessments required under
section 1111.
``(g) Public Review.--Each State educational agency will
make publicly available the plan approved under subsection
(d).
``SEC. 6204. SANCTIONS.
``(a) Third Fiscal Year.--If a State receiving grant funds
under this title fails to meet performance goals established
under section 6203(c)(2) by the end of the third fiscal year
for which the State receives such grant funds, the Secretary
shall reduce by 50 percent the amount the State is entitled
to receive for administrative expenses under this title.
``(b) Fourth Fiscal Year.--If the State fails to meet such
performance goals by the end of the fourth fiscal year for
which the State receives grant funds under this title, the
Secretary shall reduce the total amount the State receives
under this title by 20 percent.
``(c) Technical Assistance.--The Secretary shall provide
technical assistance, at the request of a State subjected to
sanctions under subsection (a) or (b).
``(d) Local Sanctions.--
``(1) In general.--Each State receiving assistance under
this title shall develop a system to hold local educational
agencies accountable for meeting the adequate yearly progress
requirements established under part A of title I and the
performance goals established under this title.
``(2) Sanctions.--A system developed under paragraph (1)
shall include a mechanism for sanctioning local educational
agencies for failure to meet such performance goals and
adequate yearly progress levels.
``SEC. 6205. STATE REPORTS.
``Each State educational agency or Chief Executive Officer
of a State receiving funds under this title shall annually
publish and disseminate to the public in a format and, to the
extent practicable, in a language that the public can
understand, a report on--
``(1) the use of such funds;
``(2) the impact of programs conducted with such funds and
an assessment of such programs' effectiveness; and
``(3) the progress of the State toward attaining the
performance goals established
[[Page S492]]
under section 6203(c)(2), and the extent to which the
programs have increased student achievement.
``SEC. 6206. STANDARDS; ASSESSMENTS ENHANCEMENT.
``Each State educational agency receiving a grant under
this title may use such grant funds, consistent with section
6201(a)(1)(C), to--
``(1) establish high quality, internationally competitive
content and student performance standards and strategies that
all students will be expected to meet;
``(2) provide for the establishment of high quality,
rigorous assessments that include multiple measures and
demonstrate comprehensive knowledge; or
``(3) develop and implement value-added assessments.''.
SEC. 302. PERFORMANCE OBJECTIVES.
Title VII of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7401 et seq.) is amended by inserting after
section 7105 the following:
``SEC. 7106. PERFORMANCE OBJECTIVES.
``(a) In General.--Each State educational agency or local
educational agency receiving a grant under this part shall
develop annual numerical performance objectives that are age-
appropriate and developmentally-appropriate with respect to
helping limited English proficient students become proficient
in English and improve overall academic performance based
upon State and local content and performance standards. The
objectives shall include incremental percentage increases for
each fiscal year a State educational agency or local
educational agency receives a grant under this title,
including increases from the preceding fiscal year in the
number of limited English proficient students demonstrating
an increase in performance on annual assessments concerning
reading, writing, speaking, and listening comprehension.
``(b) Accountability.--Each State educational agency or
local educational agency receiving a grant under this title
shall be held accountable for meeting the annual numerical
performance objectives under this title and the adequate
yearly progress levels for limited English proficient
students under clauses (ii) and (iv) of section
1111(b)(2)(B). Any State educational agency or local
educational agency that fails to meet the annual performance
objectives shall be subject to sanctions described in section
14515.
``(c) Parental Notification.--
``(1) In general.--Each State educational agency or local
educational agency shall notify a parent of a student who is
participating in a language instruction educational program
under this title, in a manner and form understandable to the
parent, including, if necessary and to the extent feasible,
in the native language of the parent, of--
``(A) the student's level of English proficiency, how such
level was assessed, the status of the student's academic
achievement, and the implications of the student's
educational strengths and needs for age-appropriate and
grade-appropriate academic attainment, promotion, and
graduation;
``(B) what programs are available to meet the student's
educational strengths and needs, and how such programs differ
in content and instructional goals from other language
instruction educational programs and, in the case of a
student with a disability, how such available programs meet
the objectives of the individualized education program of
such a student; and
``(C) the instructional goals of the language instruction
educational program, and how the program will specifically
help the limited English proficient student learn English and
meet State and local content and performance standards,
including--
``(i) the characteristics, benefits, and past academic
results of the language instruction educational program and
of instructional alternatives; and
``(ii) the reasons the student was identified as being in
need of a language instruction educational program.
``(2) Option to decline.--Each parent described in
paragraph (1) shall also be informed that the parent has the
option of declining the enrollment of a student in a language
instruction educational program, and shall be given an
opportunity to decline such enrollment if the parent so
chooses.
``(3) Special rule.--A student shall not be admitted to, or
excluded from, any federally assisted language instruction
educational program solely on the basis of a surname or
language-minority status.''.
SEC. 303. REPORT CARDS.
Title XIV of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 8801 et seq.) is amended by adding at the end
the following:
``PART I--REPORT CARDS
``SEC. 14901. REPORT CARDS.
``(a) Grants Authorized.--The Secretary shall award a
grant, from allotments under subsection (b), to each State
having a State report card meeting the requirements described
in subsection (e), to enable the State, and local educational
agencies and schools in the State, annually to publish report
cards for each elementary school and secondary school that
receives funding under this Act and is served by the State.
``(b) Reservations and Allotments.--
``(1) Reservations.--From the amount appropriated under
subsection (j) to carry out this part for each fiscal year,
the Secretary shall reserve--
``(A) \1/2\ of 1 percent of such amount for payments to the
Secretary of the Interior for activities approved by the
Secretary of Education, consistent with this part, in schools
operated or supported by the Bureau of Indian Affairs, on the
basis of their respective needs for assistance under this
part; and
``(B) \1/2\ of 1 percent of such amount for payments to
outlying areas, to be allotted in accordance with their
respective needs for assistance under this part, as
determined by the Secretary, for activities approved by the
Secretary, consistent with this part.
``(2) State allotments.--From the amount appropriated under
subsection (j) for a fiscal year and remaining after the
Secretary makes reservations under paragraph (1), the
Secretary shall allot to each State having a State report
card meeting the requirements described in subsection (e) an
amount that bears the same relationship to the remainder as
the number of public school students enrolled in elementary
schools and secondary schools in the State bears to the
number of such students so enrolled in all States.
``(c) State Reservation of Funds.--Each State educational
agency receiving a grant under subsection (a) may reserve--
``(1) not more than 10 percent of the grant funds to carry
out activities described in subsections (e) and (g)(2) for
fiscal year 2002; and
``(2) not more than 5 percent of the grant funds to carry
out activities described in subsections (e) and (g)(2) for
fiscal year 2003 and each of the 3 succeeding fiscal years.
``(d) Within-State Allocations.--Each State educational
agency receiving a grant under subsection (a) shall allocate
the grant funds that remain after making the reservation
described in subsection (c) to each local educational agency
in the State in an amount that bears the same relationship to
the remainder as the number of public school students
enrolled in elementary schools and secondary schools served
by the local educational agency bears to the number of such
students served by local educational agencies within the
State.
``(e) Annual State Report Card.--
``(1) Report cards required.--Not later than the beginning
of the 2002-2003 school year, a State that receives
assistance under this Act shall prepare and disseminate an
annual report card for parents, the general public, teachers,
and the Secretary, with respect to all elementary schools and
secondary schools within the State.
``(2) Required information.--Each State described in
paragraph (1), at a minimum, shall include in the annual
State report card information regarding--
``(A) student performance on statewide assessments for the
year for which the annual State report card is prepared and
the preceding year, in at least English language arts and
mathematics, including--
``(i) a comparison of the proportions of students who
performed at the basic, proficient, and advanced levels in
each subject area, for each grade level for which assessments
are required under title I for the year for which the report
card is prepared, with proportions in each of the same 3
levels in each subject area at the same grade levels in the
preceding school year;
``(ii) a statement on the most recent 3-year trend in the
percentage of students performing at the basic, proficient,
and advanced levels in each subject area, for each grade
level for which assessments are required under title I; and
``(iii) a statement of the percentage of students not
tested and a listing of categories of the reasons why such
students were not tested;
``(B) student retention rates in each grade, the number of
students completing advanced placement courses, annual school
dropout rates as calculated by procedures conforming with the
National Center for Education Statistics Common Core of Data,
and 4-year graduation rates; and
``(C) the professional qualifications of teachers in the
aggregate, including the percentage of teachers teaching with
emergency or provisional credentials, the percentage of class
sections not taught by fully qualified teachers, and the
percentage of teachers who are fully qualified.
``(3) Student data.--Student data in each report card shall
contain disaggregated results for the following categories:
``(A) Racial and ethnic groups.
``(B) Gender groups.
``(C) Economically disadvantaged students, as compared with
students who are not economically disadvantaged.
``(D) Students with limited English proficiency, as
compared with students who are proficient in English.
``(E) Migrant status groups.
``(F) Students with disabilities, as compared with students
who are not disabled.
``(4) Optional information.--A State may include in the
State annual report card any other information the State
determines appropriate to reflect school quality and school
achievement, including by grade level information on the
following:
``(A) Average class size.
``(B) School safety, such as the incidence of school
violence and drug and alcohol abuse.
``(C) The incidence of student suspensions and expulsions.
``(D) Student access to technology, including the number of
computers for educational purposes, the number of computers
per classroom, and the number of computers connected to the
Internet.
``(E) Parental involvement, as determined by such measures
as the extent of parental
[[Page S493]]
participation in schools, parental involvement activities,
and extended learning time programs, such as after-school and
summer programs.
``(f) Local Educational Agency and School Report Cards.--
``(1) In general.--The State shall ensure that each local
educational agency, elementary school, and secondary school
in the State, collects appropriate data and publishes an
annual report card consistent with this subsection.
``(2) Required information.--Each local educational agency,
elementary school, and secondary school described in
paragraph (1), at a minimum, shall include in its annual
report card--
``(A) the information described in paragraphs (2) and (3)
of subsection (e) for each local educational agency and
school;
``(B) in the case of a local educational agency--
``(i) information regarding the number and percentage of
schools served by the local educational agency that are
identified for school improvement, including schools
identified under section 1116;
``(ii) information on the most recent 3-year trend in the
number and percentage of elementary schools and secondary
schools served by the local educational agency that are
identified for school improvement; and
``(iii) information on how students in the schools served
by the local educational agency performed on the statewide
assessment compared with students in the State as a whole;
``(C) in the case of an elementary school or a secondary
school--
``(i) information regarding whether the school has been
identified for school improvement;
``(ii) information on how the school's students performed
on the statewide assessment compared with students in schools
served by the same local educational agency and with all
students in the State; and
``(iii) information about the enrollment of students
compared with the rated capacity of the schools; and
``(D) other appropriate information, regardless of whether
the information is included in the annual State report.
``(g) Dissemination and Accessibility of Report Cards.--
``(1) Report card format.--Annual report cards under this
part shall be--
``(A) concise; and
``(B) presented in a format and manner that parents can
understand, including, to the extent practicable, in a
language the parents can understand.
``(2) State report cards.--State annual report cards under
subsection (e) shall be disseminated to all elementary
schools, secondary schools, and local educational agencies in
the State, and made broadly available to the public through
means such as posting on the Internet and distribution to the
media, and through public agencies.
``(3) Local report cards.--Local educational agency report
cards under subsection (f) shall be disseminated to all
elementary schools and secondary schools served by the local
educational agency and to parents of students attending such
schools, and made broadly available to the public through
means such as posting on the Internet and distribution to the
media, and through public agencies.
``(4) School report cards.--Elementary school and secondary
school report cards under subsection (f) shall be
disseminated to parents of students attending that school,
and made broadly available to the public through means such
as posting on the Internet and distribution to the media, and
through public agencies.
``(h) Coordination of State Plan Content.--A State shall
include in its plan under part A of title I or part B of
title II, an assurance that the State has in effect a policy
that meets the requirements of this section.
``(i) Privacy.--Information collected under this section
shall be collected and disseminated in a manner that protects
the privacy of individuals.
``(j) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this part
$5,000,000 for fiscal year 2002 and such sums as may be
necessary for each of the 4 succeeding fiscal years.
``PART J--ADDITIONAL PERFORMANCE AND ACCOUNTABILITY PROVISIONS
``SEC. 14911. REWARDING HIGH PERFORMANCE.
``(a) State Rewards.--
``(1) In general.--From amounts appropriated under
subsection (d), the Secretary shall make awards to States
that--
``(A) for 3 consecutive years have--
``(i) exceeded the State performance goals and objectives
established for any title under this Act;
``(ii) exceeded the adequate yearly progress levels
established under section 1111(b)(2);
``(iii) significantly narrowed the gaps between minority
and nonminority students, and between economically
disadvantaged students and students who are not economically
disadvantaged;
``(iv) raised all students to the proficient standard level
prior to 10 years after the date of enactment of the School
Improvement Accountability Act; or
``(v) significantly increased the percentage of core
classes being taught by fully qualified teachers, in schools
receiving funds under part A of title I; or
``(B) by not later than fiscal year 2005, ensure that all
teachers teaching in the State public elementary schools and
secondary schools are fully qualified.
``(2) State use of funds.--
``(A) Demonstration sites.--Each State receiving an award
under paragraph (1) shall use a portion of the award funds
that are not distributed under subsection (b) to establish
demonstration sites with respect to high-performing schools
(based upon achievement, or performance levels and adequate
yearly progress) in order to help low-performing schools.
``(B) Improvement of performance.--Each State receiving an
award under paragraph (1) shall use the portion of the award
funds that are not used pursuant to subparagraph (A) or (C)
and are not distributed under subsection (b) for the purpose
of improving the level of performance of all elementary
school and secondary school students in the State, based upon
State content and performance standards.
``(C) Reservation for administrative expenses.--Each State
receiving an award under paragraph (1) may set aside not more
than \1/2\ of 1 percent of the award funds for the planning
and administrative costs of carrying out this section,
including the costs of distributing awards to local
educational agencies.
``(b) Local Educational Agency Awards.--
``(1) In general.--Each State receiving an award under
subsection (a)(1) shall distribute 80 percent of the award
funds to local educational agencies in the State that--
``(A) for 3 consecutive years have--
``(i) exceeded the State-established local educational
agency performance goals and objectives established for any
title under this Act;
``(ii) exceeded the adequate yearly progress levels
established under section 1111(b)(2);
``(iii) significantly narrowed the gaps between minority
and nonminority students, and between economically
disadvantaged students and students who are not economically
disadvantaged;
``(iv) raised all students enrolled in schools served by
the local educational agency to the proficient standard level
prior to 10 years from the date of enactment of the School
Improvement Accountability Act; or
``(v) significantly increased the percentage of core
classes being taught by fully qualified teachers, in schools
receiving funds under part A of title I;
``(B) not later than December 31, 2005, ensure that all
teachers teaching in the elementary schools and secondary
schools served by the local educational agency are fully
qualified; or
``(C) have attained consistently high achievement in
another area that the State determines appropriate to reward.
``(2) School-based performance awards.--A local educational
agency shall use funds made available under paragraph (1) for
activities described in subsection (c) such as school-based
performance awards.
``(3) Reservation for administrative expenses.--Each local
educational agency receiving an award under paragraph (1) may
set aside not more than \1/2\ of 1 percent of the award funds
for the planning and administrative costs of carrying out
this section, including the costs of distributing awards to
eligible elementary schools and secondary schools, teachers,
and principals.
``(c) School Rewards.--Each local educational agency
receiving an award under subsection (b) shall consult with
teachers and principals to develop a reward system, and shall
use the award funds--
``(1) to reward individual schools that demonstrate high
performance with respect to--
``(A) increasing the academic achievement of all students;
``(B) narrowing the academic achievement gap described in
section 1111(b)(2)(B)(iv);
``(C) improving teacher quality;
``(D) increasing high-quality professional development for
teachers, principals, and administrators; or
``(E) improving the English proficiency of limited English
proficient students;
``(2) to reward collaborative teams of teachers, or teams
of teachers and principals, that--
``(A) significantly increase the annual performance of low-
performing students; or
``(B) significantly improve in a fiscal year the English
proficiency of limited English proficient students;
``(3) to reward principals who successfully raise the
performance of a substantial number of low-performing
students to high academic levels;
``(4) to develop or implement school district-wide programs
or policies to increase the level of student performance on
State assessments that are aligned with State content
standards; and
``(5) to reward schools for consistently high achievement
in another area that the local educational agency determines
appropriate to reward.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$200,000,000 for fiscal year 2002, and such sums as may be
necessary for each of the 4 succeeding fiscal years.
``(e) Definition.--The term `low-performing student' means
a student who is below a basic State standard level.''.
SEC. 304. ADDITIONAL ACCOUNTABILITY PROVISIONS.
Part E of title XIV of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8891 et seq.) is amended by
adding at the end the following:
[[Page S494]]
``SEC. 14515. ADDITIONAL ACCOUNTABILITY PROVISIONS.
``(a) In General.--Notwithstanding any other provision of
this Act, a recipient of funds provided for a fiscal year
under part A of title I, part A or C of title III, part A of
title IV, part A of title V, or title VII, shall include--
(1) in the plans or applications required under such part
or title--
(A) the methods the recipient will use to measure the
annual impact of each program funded in whole or in part with
funds provided under such part or title and, if applicable,
the extent to which each such program will increase student
academic achievement;
(B) the annual, quantifiable, and measurable performance
goals and objectives for each such program, and the extent to
which, if applicable, the program's performance goals and
objectives align with State content standards and State
student performance standards established under section
1111(b)(1)(A); and
(C) if the recipient is a local educational agency,
assurances that the local educational agency consulted, at a
minimum, with parents, school board members, teachers,
administrators, business partners, education organizations,
and community groups to develop the plan or application
submitted and that such consultation will continue on a
regular basis; and
``(2) in the reports required under such part or title, a
report for the preceding fiscal year regarding how the plan
or application submitted for such fiscal year under such part
or title was implemented, the recipient's progress toward
attaining the performance goals and objectives identified in
the plan or application for such year, and, if applicable,
the extent to which programs funded in whole or in part with
funds provided under such part or title increased student
achievement.
``(b) Penalties.--If a recipient of funds under a part or
title described in subsection (a) fails to meet the
performance goals and objectives of the part or title for 3
consecutive fiscal years, the Secretary shall--
``(1) withhold not less than 50 percent of the funds made
available under the relevant program for administrative
expenses for the succeeding fiscal year, and for each
consecutive fiscal year until the recipient meets such
performance goals and objectives; and
``(2) in the case of--
``(A) a competitive grant (as determined by the Secretary),
consider the recipient ineligible for grants under the part
or title until the recipient meets such performance goals and
objectives; and
``(B) a formula grant (as determined by the Secretary),
withhold not less than 20 percent of the total amount of
funds provided under title VI for the succeeding fiscal year
and each consecutive fiscal year until the recipient meets
such goals and objectives.
``(c) Other Penalties.--A State that has not met the
requirements of subsection (a)(1)(B) with respect to a fiscal
year--
``(1) shall not be eligible for designation as an Ed-Flex
Partnership State under the Education Flexibility Partnership
Act of 1999 until the State meets the requirements of
subsection (a)(1)(B); and
``(2) shall be subject to such other penalties as are
provided in this Act for failure to meet the requirements of
subsection (a)(1)(B).
``(d) Special Rule for Secretary Awards.--
``(1) In general.--Notwithstanding any other provision of
this Act, a recipient of funds provided under a direct award
made by the Secretary, or a contract or cooperative agreement
entered into with the Secretary, for a program shall include
the following information in any application or plan required
for such program:
``(A) How funds provided under the program will be used and
how such use will increase student academic achievement.
``(B) The goals and objectives to be met, including goals
for dissemination and use of the information or materials
produced, where applicable.
``(C) If the grant requires dissemination of information or
materials, how the recipient will track and report annually
to the Secretary--
``(i) the successful dissemination of information or
materials produced;
``(ii) where information or materials produced are being
used; and
``(iii) the impact of such use and, if applicable, the
extent to which such use increased student academic
achievement or contributed to the stated goal of the program.
``(2) Requirement.--If no application or plan is required
under a program described in paragraph (1), the Secretary
shall require the recipient of funds to submit a plan
containing the information required under paragraph (1).
``(3) Failure to achieve goals and objectives.--
``(A) In general.--The Secretary shall evaluate the
information submitted under this subsection to determine
whether the recipient has met the goals and objectives
described in paragraph (1)(B), where applicable, assess the
magnitude of dissemination described in paragraph (1)(C),
and, where applicable, assess the effectiveness of the
activity funded in raising student academic achievement in
places where information or materials produced with such
funds are used.
``(B) Ineligibility.--The Secretary shall consider the
recipient ineligible for grants, contracts, or cooperative
agreements under the program described in paragraph (1) if--
``(i) the goals and objectives described in paragraph
(1)(B) have not been met;
``(ii) where applicable, the dissemination has not been of
a magnitude to ensure goals and objectives are being
addressed; and
``(iii) where applicable, the information or materials
produced have not made a significant impact on raising
student achievement in places where such information or
materials are used.''.
______
By Mrs. BOXER.
S. 159. A bill to elevate the Environmental Protection Agency to a
cabinet level department, to redesignate the Environmental Protection
Agency as the Department of Environmental Protection Affairs, and for
other purposes; to the Committee on Governmental Affairs.
Mrs. BOXER. Mr. President, today I am pleased to introduce the
Department of Environmental Protection Affairs Act of 2001. The bill
redesignates the Environmental Protection Agency (EPA) as the
Department of Environmental Protection Affairs and makes the Department
part of the president's cabinet.
As most of my colleagues know, President Nixon established EPA in
1970 as a response, in part, to water too polluted to drink and air too
dirty to breathe. It had become clear by that time that air, waste and
water pollution problems did not respect state boundaries, and that
public health and environmental protections varied widely from state to
state.
In the 30 years since its founding, EPA has played a critical role in
ensuring that all Americans enjoy the same basic level of public health
and environmental protection.
The Department of Environmental Protection Affairs Act of 2001
recognizes that fact. The bill reflects that today most Americans view
protection of the public health and environment as duties of at least
equal importance as our national programs for education, energy,
defense, commerce and agriculture.
The impact of this bill, however, goes beyond the very important
symbolic statement it makes.
First, elevating the EPA to the cabinet will ensure that the
president is directly involved in setting environmental policies. While
past presidents have chosen to make the EPA Administrator part of
cabinet-level discussions, this bill expresses Congress' will that
environmental protection is given its place among the other national
issues which occupy the president and his cabinet.
Second, this bill will ensure that the EPA Administrator is on equal
footing with her colleagues in the rest of the cabinet. This is
important because some of the worst polluters in the nation are
departments of the federal government. For example, Department of
Defense and Department of Energy facilities are some of the most
polluted toxic waste sites in the nation.
EPA must be on equal footing with those departments if it is to
ensure that the environment is restored and that the public health is
protected at those sites.
Third, this bill will strengthen EPA's role in negotiating
international agreements with foreign nations. Protection of public
health and the environment has increasingly become an important part of
foreign relations. Most of the industrialized nations have afforded top
status to their environmental officials. This bill will afford that
status to our top environmental official.
I am hopeful that my House and Senate colleagues can act quickly to
ensure the passage of this important legislation. I ask unanimous
consent that the bill be print in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 159
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 ``Department of Environmental
Protection Affairs Act of 2001''.
SEC. 2. FINDINGS.
Congress finds that--
(1) protection of public health and the environment is a
mission of at least equal importance to the duties carried
out by cabinet-level departments;
(2) the Federal Government should ensure that all Americans
enjoy the same basic level of public health and environmental
protection regardless of where they live;
(3) protection of public health and the environment
increasingly involves negotiations with foreign nations,
including the
[[Page S495]]
most highly industrialized nations all of whose top
environmental officials have ministerial status; and
(4) a cabinet-level Department of Environmental Protection
Affairs should be established.
SEC. 3. ESTABLISHMENT OF THE DEPARTMENT OF ENVIRONMENTAL
PROTECTION AFFAIRS.
(a) Redesignation.--The Environmental Protection Agency is
redesignated as the Department of Environmental Protection
Affairs (in this Act referred to as the ``Department'') and
shall be an executive department in the executive branch of
the Government.
(b) Secretary of Environmental Protection Affairs.--
(1) In general.--There shall be at the head of the
Department a Secretary of Environmental Protection Affairs
who shall be appointed by the President, by and with the
advice and consent of the Senate. The Department shall be
administered under the supervision and direction of the
Secretary.
(2) Nondelegation.--The Secretary may not assign duties for
or delegate authority for the supervision of the Assistant
Secretaries, the General Counsel, or the Inspector General of
the Department to any officer of the Department other than
the Deputy Secretary.
(3) Delegations.--Except as described under paragraph (2)
of this section and section 4(b)(2), and notwithstanding any
other provision of law, the Secretary may delegate any
functions including the making of regulations to such
officers and employees of the Department as the Secretary may
designate, and may authorize such successive redelegations of
such functions within the Department as determined to be
necessary or appropriate.
(c) Deputy Secretary.--There shall be in the Department a
Deputy Secretary of the Environment, who shall be appointed
by the President, by and with the advice and consent of the
Senate. The Deputy Secretary shall perform such
responsibilities as the Secretary shall prescribe and shall
act as the Secretary during the absence or disability of the
Secretary or in the event of a vacancy in the Office of
Secretary.
(d) Office of the Secretary.--The Office of the Secretary
shall consist of a Secretary and a Deputy Secretary and may
include an Executive Secretary and such other executive
officers as the Secretary may determine necessary.
(e) Regional Offices.--The regional offices of the
Environmental Protection Agency are redesignated as regional
offices of the Department of Environmental Protection
Affairs.
(f) International Responsibilities of the Secretary.--
(1) In general.--In addition to exercising other
international responsibilities under existing provisions of
law, the Secretary is--
(A) encouraged to assist the Secretary of State to carry
out his primary responsibilities for coordinating,
negotiating, implementing, and participating in international
agreements, including participation in international
organizations, relevant to environmental protection; and
(B) authorized and encouraged to--
(i) conduct research on and apply existing research
capabilities to the nature and impacts of international
environmental problems and develop responses to such
problems; and
(ii) provide technical and other assistance to foreign
countries and international bodies to improve the quality of
the environment.
(2) Consultation.--The Secretary of State shall consult
with the Secretary of Environmental Protection Affairs and
such other persons as he determines appropriate on such
negotiations, implementation, and participation described
under paragraph (1)(A).
(g) Authority of the Secretary Within the Department.--
Nothing in this Act--
(1) authorizes the Secretary of Environmental Protection
Affairs to require any action by any officer of any executive
department or agency other than officers of the Department of
Environmental Protection Affairs, except that this paragraph
shall not affect any authority provided for by any other
provision of law authorizing the Secretary of Environmental
Protection Affairs to require any such actions;
(2) modifies any Federal law that is administered by any
executive department or agency; or
(3) transfers to the Department of Environmental Protection
Affairs any authority exercised by any other Federal
executive department or agency before the effective date of
this Act, except the authority exercised by the Environmental
Protection Agency.
(h) Application to the Department of Environmental
Protection Affairs.--This Act applies only to activities of
the Department of Environmental Protection Affairs, except
where expressly provided otherwise.
SEC. 4. ASSISTANT SECRETARIES.
(a) Establishment of Positions.--There shall be in the
Department such number of Assistant Secretaries, not to
exceed 10, as the Secretary shall determine, each of whom
shall be appointed by the President, by and with the advice
and consent of the Senate.
(b) Responsibilities of Assistant Secretaries.--
(1) In general.--The Secretary shall assign to Assistant
Secretaries such responsibilities as the Secretary considers
appropriate, including--
(A) enforcement and compliance monitoring;
(B) research and development;
(C) air and radiation;
(D) water;
(E) pesticides and toxic substances;
(F) solid waste;
(G) hazardous waste;
(H) hazardous waste cleanup;
(I) emergency response;
(J) international affairs;
(K) policy, planning, and evaluation;
(L) pollution prevention;
(M) congressional, intergovernmental, and public affairs;
and
(N) administration and resources management, including
financial and budget management, information resources
management, procurement and assistance management, and
personnel and labor relations.
(2) Assignment of responsibilities.--The Secretary may
assign and modify any responsibilities at his discretion
under paragraph (1), except that the Secretary may not modify
the responsibilities of any Assistant Secretary without
substantial prior written notification of such modification
to the appropriate committees of the Senate and the House of
Representatives.
(c) Designation of Responsibilities Before Confirmation.--
Whenever the President submits the name of an individual to
the Senate for confirmation as Assistant Secretary under this
section, the President shall state the particular
responsibilities of the Department such individual shall
exercise upon taking office.
(d) Continuing Performance of Functions.--On the effective
date of this Act, the Administrator and Deputy Administrator
of the Environmental Protection Agency shall be redesignated
as the Secretary and Deputy Secretary of the Department of
Environmental Protection Affairs, Assistant Administrators of
the Agency shall be redesignated as Assistant Secretaries of
the Department, and the General Counsel and the Inspector
General of the Agency shall be redesignated as the General
Counsel and the Inspector General of the Department, without
renomination or reconfirmation.
(e) Chief Information Resources Officer.--
(1) In general.--The Secretary shall designate the
Assistant Secretary whose responsibilities include
information resource management functions as required by
section 3506 of title 44, United States Code, as the Chief
Information Resources Officer of the Department.
(2) Responsibilities.--The Chief Information Resources
Officer shall--
(A) advise the Secretary on information resource management
activities of the Department as required by section 3506 of
title 44, United States Code;
(B) develop and maintain an information resources
management system for the Department which provides for--
(i) the conduct of and accountability for any acquisitions
made under a delegation of authority under section 111 of the
Federal Property and Administrative Services Act of 1949 (40
U.S.C. 759);
(ii) the implementation of all applicable government-wide
and Department information policies, principles, standards,
and guidelines with respect to information collection,
paperwork reduction, privacy and security of records, sharing
and dissemination of information, acquisition and use of
information technology, and other information resource
management functions;
(iii) the periodic evaluation of and, as needed, the
planning and implementation of improvements in the accuracy,
completeness, and reliability of data and records contained
with Department information systems; and
(iv) the development and annual revision of a 5-year plan
for meeting the Department's information technology needs;
and
(C) report to the Secretary as required under section 3506
of title 44, United States Code.
SEC. 5. DEPUTY ASSISTANT SECRETARIES.
(a) Establishment of Positions.--There shall be in the
Department such number of Deputy Assistant Secretaries as the
Secretary may determine.
(b) Appointments.--Each Deputy Assistant Secretary--
(1) shall be appointed by the Secretary; and
(2) shall perform such functions as the Secretary shall
prescribe.
(c) Functions.--Functions assigned to an Assistant
Secretary under section 4(b) may be performed by 1 or more
Deputy Assistant Secretaries appointed to assist such
Assistant Secretary.
SEC. 6. OFFICE OF THE GENERAL COUNSEL.
There shall be in the Department, the Office of the General
Counsel. There shall be at the head of such office a General
Counsel who shall be appointed by the President, by and with
advice and consent of the Senate. The General Counsel shall
be the chief legal officer of the Department and shall
provide legal assistance to the Secretary concerning the
programs and policies of the Department.
SEC. 7. OFFICE OF THE INSPECTOR GENERAL.
The Office of Inspector General of the Environmental
Protection Agency, established in accordance with the
Inspector General Act of 1978 (5 U.S.C. App.), is
redesignated as the Office of Inspector General of the
Department of Environmental Protection Affairs.
SEC. 8. MISCELLANEOUS EMPLOYMENT RESTRICTIONS.
Except as otherwise provided in this Act, political
affiliation or political qualification may not be taken into
account in connection
[[Page S496]]
with the appointment of any person to any position in the
career civil service or in the assignment or advancement of
any career civil servant in the Department.
SEC. 9. ADMINISTRATIVE PROVISIONS.
(a) Acceptance of Money and Property.--
(1) In general.--The Secretary may accept and retain money,
uncompensated services, and other real and personal property
or rights (whether by gift, bequest, devise, or otherwise)
for the purpose of carrying out the Department's programs and
activities, except that the Secretary shall not endorse any
company, product, organization, or service. Gifts, bequests,
and devises of money and proceeds from sales of other
property received as gifts, bequests, or devises shall be
credited in a separate fund in the Treasury of the United
States and shall be available for disbursement upon the order
of the Secretary.
(2) Regulations.--The Secretary shall prescribe regulations
and guidelines setting forth the criteria the Department
shall use in determining whether to accept a gift, bequest,
or devise. Such criteria shall take into consideration
whether the acceptance of the property would reflect
unfavorably upon the Department's or any employee's ability
to carry out its responsibilities or official duties in a
fair and objective manner, or would compromise the integrity
of or the appearance of the integrity of a Government program
or any official involved in that program.
(b) Seal of the Department.--
(1) In general.--On the effective date of this Act, the
seal of the Environmental Protection Agency with appropriate
changes shall be the seal of the Department of Environmental
Protection Affairs, until such time as the Secretary may
cause a seal of office to be made for the Department of
Environmental Protection Affairs of such design as the
Secretary shall approve.
(2) Criminal penalty for unauthorized use of seal.--
(A) In general.--Chapter 33 of title 18, United States
Code, is amended by adding at the end the following:
``Sec. 716. Department of Environmental Protection Affairs
Seal
``(a) Whoever knowingly displays any printed or other
likeness of the official seal of the Department of
Environmental Protection Affairs, or any facsimile thereof,
in, or in connection with, any advertisement, poster,
circular, book, pamphlet, or other publication, public
meeting, play, motion picture, telecast, or other production,
or on any building, monument, or stationery, for the purpose
of conveying, or in a manner reasonably calculated to convey,
a false impression of sponsorship or approval by the
Government of the United States or by any department, agency,
or instrumentality thereof, shall be fined not more than $250
or imprisoned not more than 6 months, or both.
``(b) Whoever, except as authorized under regulations
promulgated by the Secretary of Environmental Protection
Affairs and published in the Federal Register, knowingly
manufactures, reproduces, sells, or purchases for resale,
either separately or appended to any article manufactured or
sold, any likeness of the official seal of the Department of
Environmental Protection Affairs, or any substantial part
thereof, except for manufacture or sale of the article for
the official use of the Government of the United States,
shall be fined not more than $250 or imprisoned not more than
6 months, or both.
``(c) A violation of subsection (a) or (b) may be enjoined
at the suit of the Attorney General of the United States upon
complaint by any authorized representative of the Secretary
of the Department of Environmental Protection Affairs.''.
(B) Technical and conforming amendment.--The table of
sections for chapter 33 of title 18, United States Code, is
amended by adding at the end:
``716. Department of Environmental Protection Affairs Seal.''.
(c) Acquisition of Copyrights and Patents.--The Secretary
is authorized to acquire any of the following described
rights if the related property acquired is for use by or for,
or useful to, the Department:
(1) Copyrights, patents, and applications for patents,
designs, processes, and manufacturing data.
(2) Licenses under copyrights, patents, and applications
for patents.
(3) Releases, before suit is brought, for past infringement
of patents or copyrights.
(d) Advisory Committee Standards of Conduct and
Compensation.--The Secretary may promulgate regulations, no
less stringent than any other applicable provision of law,
regarding standards of conduct for members of advisory
committees (and consultants to advisory committees),
including requirements regarding conflicts of interest or
disclosure of past and present financial and employment
interests. The Secretary may pay members of advisory
committees and others who perform services as authorized
under section 3109 of title 5, United States Code, at rates
for individuals not to exceed the per diem rate equivalent to
the rate for level V of the Executive Schedule under section
5316 of title 5, United States Code.
SEC. 10. INHERENTLY GOVERNMENTAL FUNCTIONS.
(a) Government Officers and Employees.--
(1) In general.--Any inherently governmental function of
the Department shall be performed only by officers and
employees of the United States.
(2) Definition.--In this section, the term ``inherently
governmental function''--
(A) means any activity which is so intimately related to
the public interest as to mandate performance by Government
officers and employees; and
(B) includes--
(i) activities which require either the exercise of
discretion in applying Government authority or the use of
value of judgment in making decisions for the Government; and
(ii) work of a policy, decisionmaking, or managerial nature
which is the direct responsibility of Department officials.
(b) Conflicts of Interest.--
(1) In general.--The Secretary shall by regulation require
any person proposing to enter into a contract, agreement, or
other arrangement, whether by competitive bid or negotiation,
for the conduct of research, development, evaluation
activities, or for advisory and assistance services, to
provide the Secretary, before entering into any such
contract, agreement, or arrangement, with all relevant
information, as determined by the Secretary, bearing on
whether that person has a possible conflict of interest with
respect to--
(A) being able to render impartial, technically sound, or
objective assistance or advice in light of other activities
or relationships with other persons; or
(B) being given an unfair competitive advantage.
(2) Subcontractors.--Such person shall ensure, in
accordance with regulations prescribed by the Secretary,
compliance with this section by subcontractors of such person
who are engaged to perform similar services.
(c) Require Affirmative Finding; Conflicts of Interest
Which Cannot Be Avoided; Mitigation of Conflicts.--
(1) In general.--Subject to paragraph (2), the Secretary
may not enter into any such contract, agreement, or
arrangement, unless he affirmatively finds, after evaluating
all such information and any other relevant information
otherwise available to him, either that--
(A) there is little or no likelihood that a conflict of
interest would exist; or
(B) that such conflict has been avoided after appropriate
conditions have been included in such contract, agreement, or
arrangement.
(2) Mitigation of conflicts.--If the Secretary determines
that such conflict of interest exists and that such conflict
of interest cannot be avoided by including appropriate
conditions therein, the Secretary may enter into such
contract, agreement, or arrangement, if he--
(A) determines that it is in the best interests of the
United States to do so; and
(B) includes appropriate conditions in such contract,
agreement, or arrangement to mitigate such conflict.
(d) Public Notice Regarding Conflicts of Interest.--The
Secretary shall promulgate regulations which require public
notice to be given whenever the Secretary determines that the
award of a contract, agreement, or arrangement may result in
a conflict of interest which cannot be avoided by including
appropriate conditions therein.
(e) Disclaimer.--Nothing in this section shall preclude the
Department from promulgating regulations to monitor potential
conflicts after the contract award.
(f) Rules.--Not later than 60 days after the effective date
of this Act, the Secretary shall publish rules for the
implementation of this section.
(g) Central File.--The Department shall maintain a central
file regarding all cases when a public notice is issued.
Other information required under this section shall also be
compiled. Access to this information shall be controlled to
safeguard any proprietary information.
(h) Definitions.--In this section, the term ``advisory and
assistance services'' includes--
(1) management and professional support services;
(2) the conduct of studies, analyses, and evaluations; and
(3) engineering and technical services, excluding routine
technical services.
SEC. 11. REFERENCES.
Reference in any other Federal law, Executive order, rule,
regulation, or delegation of authority, or any document of or
pertaining to--
(1) the Administrator of the Environmental Protection
Agency shall be deemed to refer to the Secretary of
Environmental Protection Affairs;
(2) the Environmental Protection Agency shall be deemed to
refer to the Department of Environmental Protection Affairs;
(3) the Deputy Administrator of the Environmental
Protection Agency shall be deemed to refer to the Deputy
Secretary of Environmental Protection Affairs; or
(4) any Assistant Administrator of the Environmental
Protection Agency shall be deemed to refer to an Assistant
Secretary of the Department of Environmental Protection
Affairs.
SEC. 12. SAVINGS PROVISIONS.
(a) Continuing Effect of Legal Documents.--All orders,
determinations, rules, regulations, permits, agreements,
grants, contracts, certificates, licenses, registrations,
privileges, and other administrative actions--
(1) which have been issued, made, granted, or allowed to
become effective by the President, by the Administrator of
the Environmental Protection Agency, or by a court of
[[Page S497]]
competent jurisdiction, in the performance of functions of
the Administrator or the Environmental Protection Agency, and
(2) which are in effect at the time this Act takes effect,
or were final before the effective date of this Act and are
to become effective on or after the effective date of this
Act;
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked in
accordance with law by the President, the Secretary of
Environmental Protection Affairs, or other authorized
official, a court of competent jurisdiction, or by operation
of law.
(b) Proceedings Not Affected.--This Act shall not affect
any proceedings or any application for any license, permit,
certificate, or financial assistance pending before the
Environmental Protection Agency at the time this Act takes
effect, but such proceedings and applications shall be
continued. Orders shall be issued in such proceedings,
appeals shall be taken therefrom, and payments shall be made
pursuant to such orders, as if this Act had not been enacted,
and orders issued in any such proceedings shall continue in
effect until modified, terminated, superseded, or revoked by
a duly authorized official, by a court of competent
jurisdiction, or by operation of law. Nothing in this
subsection shall be deemed to prohibit the discontinuance or
modification of any such proceeding under the same terms and
conditions and to the same extent that such proceeding could
have been discontinued or modified if this Act had not been
enacted.
(c) Suits Not Affected.--This Act shall not affect suits
commenced before the date this Act takes effect, and in all
such suits, proceedings shall be had, appeals taken, and
judgments rendered in the same manner and with the same
effect as if this Act had not been enacted.
(d) Nonabatement of Actions.--No suit, action, or other
proceeding commenced by or against the Environmental
Protection Agency, or by or against any individual in the
official capacity of such individual as an officer of the
Environmental Protection Agency, shall abate by reason of the
enactment of this Act.
(e) Administrative Actions Relating To Promulgation of
Regulations.--Any administrative action relating to the
preparation or promulgation of a regulation by the
Environmental Protection Agency may be continued by the
Department with the same effect as if this Act had not been
enacted.
(f) Property and Resources.--The contracts, liabilities,
records, property, and other assets and interests of the
Environmental Protection Agency shall, after the effective
date of this Act, be considered to be the contracts,
liabilities, records, property, and other assets and
interests of the Department.
(g) Savings.--The Department of Environmental Protection
Affairs and its officers, employees, and agents shall have
all the powers and authorities of the Environmental
Protection Agency.
SEC. 13. CONFORMING AMENDMENTS.
(a) Presidential Succession.--Section 19(d)(1) of title 3,
United States Code, is amended by inserting before the period
at the end the following: ``, Secretary of Environmental
Protection Affairs''.
(b) Definition of Department, Civil Service Laws.--Section
101 of title 5, United States Code, is amended by adding at
the end the following: ``The Department of Environmental
Protection Affairs''.
(c) Compensation, Level I.--Section 5312 of title 5, United
States Code, is amended by adding at the end the following:
``Secretary of Environmental Protection Affairs''.
(d) Compensation, Level II.--Section 5313 of title 5,
United States Code, is amended by striking ``Administrator of
Environmental Protection Agency'' and inserting ``Deputy
Secretary of Environmental Protection Affairs''.
(e) Compensation, Level IV.--Section 5315 of title 5,
United States Code, is amended--
(1) by striking ``Inspector General, Environmental
Protection Agency'' and inserting ``Inspector General,
Department of Environmental Protection Affairs''; and
(2) by striking each reference to an Assistant
Administrator of the Environmental Protection Agency and by
adding at the end the following:
``Assistant Secretaries, Department of Environmental
Protection Affairs (10).
``General Counsel, Department of Environmental Protection
Affairs.''.
(f) Inspector General Act.--The Inspector General Act of
1978 (5 U.S.C. App.) is amended--
(1) in section 2(1)--
(A) by inserting ``the Department of Environmental
Protection Affairs,'' after ``Veterans Affairs,''; and
(B) by striking ``The Environmental Protection Agency,'';
(2) in section 11(1) by striking ``or Veterans Affairs''
and inserting ``Veterans Affairs, or Environmental Protection
Affairs,''; and
(3) in section 11(2) by striking ``or Veterans Affairs''
and inserting ``Veterans Affairs, or Environmental Protection
Affairs,''.
SEC. 14. ADDITIONAL CONFORMING AMENDMENTS.
After consultation with the Committee on Governmental
Affairs and the Committee on Environment and Public Works and
other appropriate committees of the United States Senate and
the appropriate committees of the House of Representatives,
the Secretary of the Environment shall prepare and submit to
Congress proposed legislation containing technical and
conforming amendments to the United States Code, and to other
provisions of law, to reflect the changes made by this Act.
Such legislation shall be submitted not later than 6 months
after the effective date of this Act.
SEC. 15. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take
effect on such date during the 6-month period beginning on
the date of enactment, as the President may direct in an
Executive order. If the President fails to issue an Executive
order for the purpose of this section, this Act and such
amendments shall take effect 6 months after the date of
enactment of this Act.
______
By Mrs. BOXER:
S. 160. A bill to provide assistance to States to expand and
establish drug abuse treatment programs to enable such programs to
provide services to individuals who voluntarily seek treatment for drug
abuse; to the Committee on Health, Education, Labor, and Pensions.
Mrs. BOXER. Mr. President, today I am introducing the Drug Abuse
Treatment on Demand Assistance Act to help ensure that substance abuse
treatment is available to all substance abusers who seek it.
According to the Department of Health and Human Services, each year
drug and alcohol related abuse kills more than 120,000 Americans. In
1999, an estimated 14.8 million Americans were illicit drug users, with
nearly 5 million of them addicted to drugs.
Drugs and alcohol abuse costs taxpayers nearly $276 billion annually
in preventable health care costs, extra law enforcement, auto crashes,
crime and lost productivity.
In his final report before stepping down as America's Drug Czar,
General Barry McCaffrey outlined the prescription for solving America's
drug problem: ``prevention coupled with treatment accompanied by
research.'' And drug treatment is now one of the goals of the National
Drug Control Strategy.
To meet that goal, however, will require additional investment.
Through the Substance Abuse Mental Health Services Administration
(SAMHSA), the federal government currently provides over $2 billion to
states and local entities for drug treatment programs, and total
federal spending in this area is just over $3 billion. But, fewer than
half of America's nearly 5 million substance abusers are receiving
treatment for their addiction.
While some substance abusers are not seeking treatment, many are--and
are being turned away. In California, for example, 60 percent of all
facilities that maintain a waiting list have an average of 23 people on
their list on any given day. Nationwide, an estimated 2.7 million
substance abusers are in need of treatment.
Current treatment on demand programs focus on the specific drug abuse
needs of the local community. For instance, in San Francisco,
methamphetamine abuse is especially problematic and continues to be on
the rise. In other cities, cocaine abuse or marijuana is the drug of
choice. Treatment programs should be targeted to address these local
epidemics, but there is a funding shortfall.
The Drug Abuse Treatment on Demand Assistance Act would more than
double SAMHSA's funding for drug treatment over five years--to $6
billion in fiscal year 2006. This is an increase of $600 million each
year for five years. The additional funding is provided through
SAMHSA's Center for Substance Abuse Treatment and it provides SAMHSA
with flexibility to target funds where they are needed most.
The Drug Abuse Treatment on Demand Assistance Act would also reward
states that have instituted a policy of providing substance abuse
treatment to non-violent drug offenders as an alternative to prison, as
California recently did with the enactment of Proposition 36. The bill
authorizes $125 million per year for five years to provide matching
grants to states. These funds could be used to help pay for treatment
as well as to provide other elements of a comprehensive anti-drug abuse
program for non-violent offenders, including drug testing and probation
services.
Mr. President, recent studies indicate that every additional dollar
invested in substance abuse treatment saves taxpayers $7.46 in societal
costs. Clearly, such an investment is very worthwhile, and I urge my
colleagues to support treatment on demand.
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