[Congressional Record Volume 151, Number 76 (Thursday, June 9, 2005)]
[Senate]
[Pages S6322-S6331]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KENNEDY (for himself and Mr. Durbin):
  S. 1218. A bill to amend the Elementary and Secondary Education Act 
of 1965, the Higher Education Act of 1965, and the Internal Revenue 
Code of 1986 to improve recruitment, preparation, distribution, and 
retention of public elementary and secondary school teachers and 
principals, and for other purposes; to the Committee on Finance.
  Mr. KENNEDY. Mr. President, it is a privilege to join my 
distinguished colleague, Senator Durbin, in introducing the Teacher 
Excellence for All Children Act of 2005. Its goal is to bring us closer 
to giving every child a highly qualified teacher, and enable more 
teachers to obtain the support they need to improve their instruction. 
We join our distinguished colleague Congressman George Miller in this 
effort, who is introducing this legislation in the House, and commend 
him for his leadership on the issue.
  One of the major challenges we face today is to improve the 
recruitment, preparation, and retention of good teachers. Few issues 
are of greater importance to our future than education. The Nation is 
strongest when our schools are strongest--when all students can attend 
good schools with good teachers to help them learn. In this new era of 
globalization, a well-educated citizenry and well-skilled workforce are 
essential to our role in the world.
  We owe a great debt to America's teachers. They work day in and day 
out to give children a decent education. Teachers are on the front 
lines in the Nation's schools, and at the forefront of the constant 
effort to improve public education. It is their vision, energy, hard 
work, and dedication that will make all the difference in successfully 
meeting this challenge.
  We took a major step forward in the No Child Left Behind Act and its 
recognition that all students deserve first-rate teachers to help them 
reach their potential and succeed in life. This act made a bold 
national commitment to guarantee a highly qualified teacher in every 
classroom. But to reach that goal, we need to recruit, train, retain 
and support our teachers. The TEACH Act addresses four specific 
challenges head on: to increase the supply of outstanding teachers; to 
ensure all children have teachers with expertise in the subjects they 
teach; to improve teaching by identifying and rewarding the best 
practices and expanding professional development opportunities; and to 
help schools retain teachers and principals by providing the support 
they need to succeed.
  Since enrollment in public schools has reached an all-time high of 53 
million students, and is expected to keep

[[Page S6323]]

increasing over the next decade, additional highly qualified teachers 
are needed to meet the growing demand.
  Many schools face a teacher crisis, particularly in our poorest 
communities. Currently, there are approximately 3 million public school 
teachers across the country. Two million new, qualified teachers will 
be needed in the next 10 years to serve the growing student population. 
Yet we are not even retaining the teachers we have today. A third of 
all teachers leave during their first 3 years, and almost half leave 
during the first 5 years.
  Too often, teachers also lack the training and support needed to do 
well in the classroom. They are paid on average almost $8,000 less than 
graduates in other fields, and the gap widens to more than $23,000 
after 15 years of teaching. Thirty-seven percent of teachers cite low 
salaries as a main factor for leaving the classroom before retirement.
  The TEACH Act will do more to recruit and retain highly qualified 
teachers--particularly in schools and subjects where they are needed 
the most. The bill provides financial incentives to encourage talented 
persons to enter and remain in the profession and it offers higher 
salaries, tax breaks, and greater loan forgiveness.
  To attract motivated and talented individuals to teaching, the bill 
provides up-front tuition assistance--$4,000 per year--to high-
performing undergraduate students who agree to commit to teach for 4 
years in high-need areas and in subjects such as math, science, and 
special education.
  One of our greatest challenges in school reform today is to equalize 
the playing field, so that the neediest students have access to the 
best teachers to help them succeed. Research shows that good teachers 
are the single most important factor in the success of children in 
school, both academically and developmentally. Children with good 
instruction can reach new heights through the hard work, vision, and 
energy of their teachers. Good teaching helps overcome the harmful 
effects of poverty and other disadvantages on student learning.
  Unfortunately, we still have a long way to go. In high-poverty 
schools, teacher turnover is 33 percent higher than in other schools. 
In the poorest middle schools and high schools, students are 77 percent 
more likely to be assigned an out-of-field teacher. Almost a third of 
classes are taught by teachers with no background in the subject--no 
major degree, no minor degree, no certification.
  Despite our past efforts, this problem is worsening. In most academic 
subjects, the percentage of secondary school teachers ``out-of-
field''--those teaching a class in which they do not have a major, a 
minor, or a certification--increased from 1993 to 2000. Clearly, we 
must do a better job of attracting better teachers to the neediest 
classrooms and do more to reward their efforts so that they stay in the 
classroom.
  Because schools compete for the best teachers, the bill provides 
funding to school districts to reward teachers who transfer to schools 
with the greatest challenges, and provides incentives for teachers 
working in math, science, and special education.
  The TEACH Act also establishes a framework to develop and use the 
systems needed at the State and local levels to identify and improve 
teacher effectiveness and recognize exceptional teaching in the 
classroom. States will develop data systems to track student progress 
and relate it to the level of instruction provided in the classroom. 
The bill also encourages the development of model teacher advancement 
programs with competitive compensation structures that recognize and 
reward different roles, responsibilities, knowledge, skills and 
positive results.
  Too often, teachers lack the training they need before reaching the 
classroom. On the job, they have few sources of support to meet the 
challenges they face in the classroom, and few opportunities for 
ongoing professional development to expand their skills. The bill 
responds to the needs of teachers in their first years in the classroom 
by creating new and innovative teacher induction models that use proven 
strategies to support beginning teachers. New teachers will have access 
to mentoring, opportunities for cooperative planning with their peers, 
and a special transition year to ease into the pressures of entering 
the classroom. Veteran teachers will have an opportunity to improve 
their skills through peer mentoring and review. Other support includes 
professional development delivered through teaching centers to improve 
training and working conditions for teachers.
  Since good leadership is also essential for schools, the bill 
provides important incentives and support for principals by raising 
standards and improving recruitment and training for them as well.
  This legislation was developed with the help of a broad and diverse 
group of educational professionals and experts, including the Alliance 
for Excellent Education, the American Federation of Teachers, the 
Business Roundtable, the Center for American Progress Action Fund, the 
Children's Defense Fund, the Education Trust, the National Council on 
Teacher Quality, the National Council of La Raza, the National 
Education Association, New Leaders for New Schools, the New Teacher 
Center, Operation Public Education, the Teacher Advancement Program 
Foundation, Teach for America and the Teaching Commission. I thank them 
for their help and their work on behalf of our Nation's children.
  As Shirley Mount Hufstedler, the first United States Secretary of 
Education, has said:

       The role of the teacher remains the highest calling of a 
     free people. To the teacher, America entrusts her most 
     precious resource, her children; and asks that they be 
     prepared, in all their glorious diversity, to face the rigors 
     of individual participation in a democratic society.

  We must do all in our power to help them in this endeavor.
  I urge my colleagues to join in supporting this bill and 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. 1218

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

     SECTION 1. SHORT TITLE.

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

     SEC. 2. TABLE OF CONTENTS.

       The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Findings.

               TITLE I--RECRUITING TALENTED NEW TEACHERS

Sec. 101. Amendments to Higher Education Act of 1965.
Sec. 102. Extending and expanding teacher loan forgiveness.

             TITLE II--CLOSING THE TEACHER DISTRIBUTION GAP

Sec. 201. Grants to local educational agencies to provide premium pay 
              to teachers in high-need schools.

                TITLE III--IMPROVING TEACHER PREPARATION

Sec. 301. Amendment to Elementary and Secondary Education Act of 1965.
Sec. 302. Amendment to the Higher Education Act of 1965: Teacher 
              Quality Enhancement Grants.
Sec. 303. Enforcing NCLB's teacher equity provision.

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

Sec. 401. 21st Century Data, Tools, and Assessments.
Sec. 402. Collecting national data on distribution of teachers.

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

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

                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Conforming amendments.

     SEC. 3. FINDINGS.

       The Congress finds as follows:
       (1) There are not enough qualified teachers in the Nation's 
     classrooms, and an unprecedented number of teachers will 
     retire over the next 5 years. Over the next decade, the 
     Nation will need to bring 2,000,000 new teachers into public 
     schools.
       (2) Too many teachers and principals do not receive 
     adequate preparation for their jobs.

[[Page S6324]]

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

               TITLE I--RECRUITING TALENTED NEW TEACHERS

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

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

                         ``PART C--TEACH GRANTS

     ``SEC. 231. PURPOSES.

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

     ``SEC. 232. PROGRAM ESTABLISHED.

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

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

       ``(a) Applications; Demonstration of Eligibility.--
       ``(1) Filing required.--The Secretary shall from time to 
     time set dates by which students shall file applications for 
     TEACH Grants under this part. Each student desiring a TEACH 
     Grant for any year shall file an application therefore 
     containing such information and assurances as the Secretary 
     may deem necessary to enable the Secretary to carry out the 
     functions and responsibilities of this part.
       ``(2) Demonstration of eligibility.--Each such application 
     shall contain such information as is necessary to demonstrate 
     that--
       ``(A) if the applicant is an enrolled student--
       ``(i) the student is an eligible student for purposes of 
     section 484 (other than subsection (r) of such section);
       ``(ii) the student--

       ``(I) has a grade point average that is determined, under 
     standards prescribed by the Secretary, to be comparable to a 
     3.25 average on a zero to 4.0 scale, except that, if the 
     student is in the first year of a program of undergraduate 
     education, such grade point average shall be determined on 
     the basis of the student's cumulative high school grade point 
     average; or
       ``(II) displayed high academic aptitude by receiving a 
     score above the 75th percentile on at least one of the 
     batteries in an undergraduate or graduate school admissions 
     test; and

       ``(iii) the student is completing coursework and other 
     requirements necessary to begin a career in teaching, or 
     plans to complete such coursework and requirements prior to 
     graduating; or
       ``(B) if the applicant is a current or prospective teacher 
     applying for a grant to obtain a graduate degree--
       ``(i) the applicant is a teacher or a retiree from another 
     occupation with expertise in a field in which there is a 
     shortage of teachers, such as mathematics, science, special 
     education, English language acquisition, or another high-need 
     subject; or
       ``(ii) the applicant is or was a teacher who is using high-
     quality alternative certification routes, such as Teach for 
     America, to get certified.
       ``(b) Agreements to Serve.--Each application under 
     subsection (a) shall contain or be accompanied by an 
     agreement by the applicant that--
       ``(1) the applicant will--
       ``(A) serve as a full-time teacher for a total of not less 
     than 4 academic years within 8

[[Page S6325]]

     years after completing the course of study for which the 
     applicant received a TEACH Grant under this part;
       ``(B) teach--
       ``(i) in a school described in section 465(a)(2)(A); and
       ``(ii) in any of the following fields: mathematics, 
     science, a foreign language, bilingual education, or special 
     education, or as a reading specialist, or another field 
     documented as high-need by the Federal Government, State 
     government, or local education agency and submitted to the 
     Secretary;
       ``(C) submit evidence of such employment in the form of a 
     certification by the chief administrative officer of the 
     school upon completion of each year of such service; and
       ``(D) comply with the requirements for being a highly 
     qualified teacher as defined in section 9101 of the 
     Elementary and Secondary Education Act of 1965; and
       ``(2) in the event that the applicant is determined to have 
     failed or refused to carry out such service obligation, the 
     sum of the amounts of such Teach Grants will be treated as a 
     loan and collected from the applicant in accordance with 
     subsection (c) and the regulations thereunder.
       ``(c) Repayment for Failure to Complete Service.--In the 
     event that any recipient of a TEACH Grant fails or refuses to 
     comply with the service obligation in the agreement under 
     subsection (b), the sum of the amounts of such Grants 
     provided to such recipient shall be treated as a Direct Loan 
     under part D of title IV, and shall be subject to repayment 
     in accordance with terms and conditions specified by the 
     Secretary in regulations promulgated to carry out this 
     part.''.
       (b) Recruiting Teachers With Mathematics, Science, or 
     Language Major.--Title II of the Higher Education Act of 1965 
     (20 U.S.C. 1021 et seq.), as amended by subsection (a), is 
     further amended by adding at the end the following:

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

     ``SEC. 241. PROGRAM AUTHORIZED.

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

     ``SEC. 242. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 102. EXTENDING AND EXPANDING TEACHER LOAN FORGIVENESS.

       (a) Permanent Extension.--Section 3(b)(3) of the Taxpayer-
     Teacher Protection Act of 2004 (P.L. 108-409; 118 Stat. 2300) 
     is amended by striking ``1998, and before October 1, 2005'' 
     and inserting ``1998''.
       (b) Increased Amount; Applicability of Expanded Program to 
     Reading Specialist.--Sections 428J(c)(3) and 460(c)(3) of the 
     Higher Education Act of 1965 (20 U.S.C. 1078-10(c)(3), 
     1087j(c)(3)) are each amended--
       (1) by striking ``$17,500'' and inserting ``$20,000'';
       (2) by striking ``and'' at the end of subparagraph (A)(ii);
       (3) by striking the period at the end of subparagraph 
     (B)(iii) and inserting ``; and''; and
       (4) by adding at the end the following new subparagraph:
       ``(C) an elementary or secondary school teacher who 
     primarily teaches reading and who--
       ``(i) has obtained a separate reading instruction 
     credential from the State in which the teacher is employed; 
     and
       ``(ii) is certified by the chief administrative officer of 
     the public or nonprofit private elementary school or 
     secondary school in which the borrower is employed to teach 
     reading--

       ``(I) as being proficient in teaching the essential 
     components of reading instruction, as defined in section 1208 
     of the Elementary and Secondary Education Act of 1965; and
       ``(II) as having such credential.''.

       (c) Annual Increments Instead of End of Service Lump 
     Sums.--
       (1) FFEL loans.--Section 428J(c) of the Higher Education 
     Act of 1965 (20 U.S.C. 1078-10(c)) is amended by adding at 
     the end the following:
       ``(4) Annual increments.--Notwithstanding paragraph (1), in 
     the case of an individual qualifying for loan forgiveness 
     under paragraph (3), the Secretary shall, in lieu of waiting 
     to assume an obligation only upon completion of 5 complete 
     years of service, assume the obligation to repay--
       ``(A) after each of the first and second years of service 
     by an individual in a position qualifying under paragraph 
     (3), 15 percent of the total amount of principal and interest 
     of the loans described in paragraph (1) to such individual 
     that are outstanding immediately preceding such first year of 
     such service;
       ``(B) after each of the third and fourth years of such 
     service, 20 percent of such total amount; and
       ``(C) after the fifth year of such service, 30 percent of 
     such total amount.''.
       (2) Direct loans.--Section 460(c) of the Higher Education 
     Act of 1965 (20 U.S.C. 1087j(c)) is amended by adding at the 
     end the following:
       ``(4) Annual increments.--Notwithstanding paragraph (1), in 
     the case of an individual qualifying for loan cancellation 
     under paragraph (3), the Secretary shall, in lieu of waiting 
     to assume an obligation only upon completion of 5 complete 
     years of service, assume the obligation to repay--
       ``(A) after each of the first and second years of service 
     by an individual in a position qualifying under paragraph 
     (3), 15 percent of the total amount of principal and interest 
     of the loans described in paragraph (1) to such individual 
     that are outstanding immediately preceding such first year of 
     such service;
       ``(B) after each of the third and fourth years of such 
     service, 20 percent of such total amount; and
       ``(C) after the fifth year of such service, 30 percent of 
     such total amount.''.

             TITLE II--CLOSING THE TEACHER DISTRIBUTION GAP

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

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

             ``PART E--TEACHER EXCELLENCE FOR ALL CHILDREN

     ``SEC. 2500. DEFINITIONS.

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

[[Page S6326]]

     standard delivery of instruction, so that affected teachers 
     do not receive an unfair advantage; and
       ``(C) has the capacity to assign various proportions of 
     student growth to multiple teachers when the classroom 
     reality, such as team teaching and departmentalized 
     instruction, makes such type of instruction an issue.

                       ``Subpart 1--Distribution

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

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

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

       ``(a) Grants.--The Secretary may make grants to local 
     educational agencies to establish and implement a Career 
     Ladders for Teachers Program in which the agency--
       ``(1) augments the salary of teachers in high-need 
     elementary schools and high-need secondary schools to 
     correspond to the increasing responsibilities and leadership 
     roles assumed by the teachers as they take on new 
     professional roles (such as serving on school leadership 
     teams, serving as instructional coaches, and serving in 
     hybrid roles), including by--
       ``(A) providing up to $10,000 as an annual augmentation to 
     master teachers (including teachers serving as master 
     teachers as part of a state-of the-art teacher induction 
     program under section 2511); and
       ``(B) providing up to $5,000 as an annual augmentation to 
     mentor teachers (including teachers serving as mentor 
     teachers as part of a state-of-the-art teacher induction 
     program under section 2511);
       ``(2) provides up to $4,000 as an annual bonus to all 
     career teachers, master teachers, and mentor teachers in 
     high-need elementary schools and high-need secondary schools 
     based on a combination of--
       ``(A) at least 3 classroom evaluations over the course of 
     the year that shall--
       ``(i) be conducted by multiple evaluators, including master 
     teachers and the principal;
       ``(ii) be based on classroom observation at least 3 times 
     annually; and
       ``(iii) be evaluated against research-validated benchmarks 
     that use planning, instructional, and learning environment 
     standards to measure teacher performance; and
       ``(B) the performance of the teacher's students as 
     determined by--
       ``(i) student growth on any test that is required by the 
     State educational agency or

[[Page S6327]]

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

                TITLE III--IMPROVING TEACHER PREPARATION

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

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

                        ``Subpart 2--Preparation

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

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

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

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

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

       ``(a) Grants.--The Secretary may make grants to not more 
     than 10 States to develop, implement, and evaluate pilot 
     programs for performance-based certification and training of 
     exemplary, highly qualified principals who can drive gains in 
     academic achievement for all children.
       ``(b) Program Requirements.--A pilot program developed 
     under this section--
       ``(1) shall pilot the development, implementation, and 
     evaluation of a statewide performance-based system for 
     certifying principals;

[[Page S6328]]

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

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

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

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

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

     ``SEC. 206. ACCOUNTABILITY AND EVALUATION.

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

[[Page S6329]]

     the grant payments shall not be made for any succeeding year 
     of the grant.
       ``(d) Evaluation and Dissemination.--The Secretary shall 
     evaluate the activities funded under this part and report 
     annually the Secretary's findings regarding the activities to 
     the Committee on Health, Education, Labor, and Pensions of 
     the Senate and the Committee on Education and the Workforce 
     of the House of Representatives. The Secretary shall broadly 
     disseminate successful practices developed by eligible States 
     and eligible partnerships under this part, and shall broadly 
     disseminate information regarding such practices that were 
     found to be ineffective.

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

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

     shall attest annually, in writing, as to the reliability, 
     validity, integrity, and accuracy of the data submitted 
     pursuant to this section.

     ``SEC. 208. STATE FUNCTIONS.

       ``(a) State Assessment.--In order to receive funds under 
     this Act, a State shall have in place a procedure to identify 
     and assist, through the provision of technical assistance, 
     low-performing programs of teacher preparation within 
     institutions of higher education. Such State shall provide 
     the Secretary an annual list of such low-performing 
     institutions that includes an identification of those 
     institutions at risk of being placed on such list. Such 
     levels of performance shall be determined solely by the State 
     and may include criteria based upon information collected 
     pursuant to this part. Such assessment shall be described in 
     the report under section 207(a). A State receiving Federal 
     funds under this title shall develop plans to close or 
     reconstitute underperforming programs of teacher preparation 
     within institutions of higher education.
       ``(b) Termination of Eligibility.--Any institution of 
     higher education that offers a program of teacher preparation 
     in which the State has withdrawn the State's approval or 
     terminated the State's financial support due to the low 
     performance of the institution's teacher preparation program 
     based upon the

[[Page S6330]]

     State assessment described in subsection (a)--
       ``(1) shall be ineligible for any funding for professional 
     development activities awarded by the Department of 
     Education; and
       ``(2) shall not be permitted to accept or enroll any 
     student who receives aid under title IV of this Act in the 
     institution's teacher preparation program.

     ``SEC. 209. GENERAL PROVISIONS.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

             ``Subpart 4--Retention and Working Conditions

     ``SEC. 2531. IMPROVING PROFESSIONAL DEVELOPMENT 
                   OPPORTUNITIES.

       ``(a) Grants.--The Secretary may make grants to eligible 
     entities for the establishment and operation of new teacher 
     centers or the support of existing teacher centers.
       ``(b) Special Consideration.--In making grants under this 
     section, the Secretary shall give special consideration to 
     any application submitted by an eligible entity that is--
       ``(1) a high-need local educational agency; or
       ``(2) a consortium that includes at least one high-need 
     local educational agency.
       ``(c) Duration.--Each grant under this section shall be for 
     a period of 3 years.
       ``(d) Required Activities.--A teacher center receiving 
     assistance under this section shall carry out each of the 
     following activities:
       ``(1) Providing high-quality professional development to 
     teachers to assist them in improving their knowledge, skills, 
     and teaching practices in order to help students to improve 
     their achievement and meet State academic standards.
       ``(2) Providing teachers with information on developments 
     in curricula, assessments, and educational research, 
     including the manner in which the research and data can be 
     used to improve teaching skills and practice.
       ``(3) Providing training and support for new teachers.
       ``(e) Permissible Activities.--A teacher center may use 
     assistance under this section for any of the following:
       ``(1) Assessing the professional development needs of the 
     teachers and other instructional school employees, such as 
     librarians, counselors, and paraprofessionals, to be served 
     by the center.
       ``(2) Providing intensive support to staff to improve 
     instruction in literacy, mathematics, science, and other 
     curricular areas necessary to provide a well-rounded 
     education to students.
       ``(3) Providing support to mentors working with new 
     teachers.
       ``(4) Providing training in effective instructional 
     services and classroom management strategies for mainstream 
     teachers serving students with disabilities and students with 
     limited English proficiency.
       ``(5) Enabling teachers to engage in study groups and other 
     collaborative activities and collegial interactions regarding 
     instruction.
       ``(6) Paying for release time and substitute teachers in 
     order to enable teachers to participate in the activities of 
     the teacher center.
       ``(7) Creating libraries of professional materials and 
     educational technology.
       ``(8) Providing high-quality professional development for 
     other instructional staff, such as paraprofessionals, 
     librarians, and counselors.
       ``(9) Assisting teachers to become highly qualified and 
     paraprofessionals to become teachers.
       ``(10) Assisting paraprofessionals to meet the requirements 
     of section 1119.
       ``(11) Developing curricula.
       ``(12) Incorporating additional on-line professional 
     development resources for participants.
       ``(13) Providing funding for individual- or group-initiated 
     classroom projects.
       ``(14) Developing partnerships with businesses and 
     community-based organizations.
       ``(15) Establishing a teacher center site.
       ``(f) Teacher Center Policy Board.--
       ``(1) In general.--A teacher center receiving assistance 
     under this section shall be operated under the supervision of 
     a teacher center policy board.
       ``(2) Membership.--
       ``(A) Teacher representatives.--The majority of the members 
     of a teacher center policy board shall be representatives of, 
     and selected by, the elementary and secondary school teachers 
     to be served by the teacher center. Such representatives 
     shall be selected through the teacher organization, or if 
     there is no teacher organization, by the teachers directly.
       ``(B) Other representatives.--The members of a teacher 
     center policy board--

[[Page S6331]]

       ``(i) shall include at least two members who are 
     representative of, or designated by, the school board of the 
     local educational agency to be served by the teacher center;
       ``(ii) shall include at least one member who is a 
     representative of, and is designated by, the institutions of 
     higher education (with departments or schools of education) 
     located in the area; and
       ``(iii) may include paraprofessionals.
       ``(g) Application.--
       ``(1) In general.--To seek a grant under this section, an 
     eligible entity shall submit an application at such time, in 
     such manner, and accompanied by such information as the 
     Secretary may reasonably require.
       ``(2) Assurance of compliance.--An application under 
     paragraph (1) shall include an assurance that the applicant 
     will require any teacher center receiving assistance through 
     the grant to comply with the requirements of this section.
       ``(3) Teacher center policy board.--An application under 
     paragraph (1) shall include the following:
       ``(A) An assurance that--
       ``(i) the applicant has established a teacher center policy 
     board;
       ``(ii) the board participated fully in the preparation of 
     the application; and
       ``(iii) the board approved the application as submitted.
       ``(B) A description of the membership of the board and the 
     method of its selection.
       ``(h) Definitions.--In this section:
       ``(1) The term `eligible entity' means a local educational 
     agency or a consortium of 2 or more local educational 
     agencies.
       ``(2) The term `teacher center policy board' means a 
     teacher center policy board described in subsection (f).
       ``(i) Authorization of Appropriations.--To carry out this 
     section, there are authorized to be appropriated $100,000,000 
     for fiscal year 2006 and such sums as may be necessary for 
     each of the 5 succeeding fiscal years.''.

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

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

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

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

``Sec. 139B. Compensation of certain teachers and principals''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to remuneration received in taxable years 
     beginning after the date of the enactment of this Act.

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

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

                   TITLE VI--MISCELLANEOUS PROVISIONS

     SEC. 601. CONFORMING AMENDMENTS.

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

             ``Part E--Teacher Excellence for All Children

``Sec. 2500. Definitions.


                       ``Subpart 1--Distribution

``Sec. 2501. Premium pay; loan repayment.
``Sec. 2502. Career ladders for teachers program.


                        ``Subpart 2--Preparation

``Sec. 2511. Establishing state-of-the-art teacher induction programs.
``Sec. 2512. Peer mentoring and review programs.
``Sec. 2513. Establishing state-of-the-art principal training and 
              induction programs and performance-based principal 
              certification.
``Sec. 2514. Study on developing a portable performance-based teacher 
              assessment.


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

``Sec. 2521. Developing value-added data systems.


             ``Subpart 4--Retention and Working Conditions

``Sec. 2531. Improving professional development opportunities.''; and

       (2) by inserting after the items relating to subpart 2 of 
     part E of title IX of the Elementary and Secondary Education 
     Act of 1965 the following new item:

``Sec. 9537. Assurance of reasonable progress toward equitable access 
              to teacher quality.''.
                                 ______