[Congressional Record (Bound Edition), Volume 146 (2000), Part 2]
[Senate]
[Pages 2032-2052]
[From the U.S. Government Publishing Office, www.gpo.gov]



                          AMENDMENTS SUBMITTED

                                 ______
                                 

                  THE AFFORDABLE EDUCATION ACT OF 1999

                                 ______
                                 

               SCHUMER (AND LANDRIEU) AMENDMENT NO. 2868

  Mr. SCHUMER (for himself and Ms. Landrieu) proposed an amendment to 
the bill (S. 1134) to amend the Internal Revenue Code of 1986 to allow 
tax-free expenditures from education individual retirement accounts for 
elementary and secondary school expenses, to increase the maximum 
annual amount of contributions to such accounts, and for other 
purposes; as follows:

       At the appropriate place, insert the following:

             TITLE __--21ST CENTURY MASTER TEACHER PROGRAMS

     SEC. __01. MASTER TEACHER PROGRAMS.

       Title II of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 6601 et seq.) is amended--
       (1) by redesignating part E as part F; and
       (2) by inserting after part D the following new part:

                   ``PART E--MASTER TEACHER PROGRAMS

     ``SEC. 2351. MASTER TEACHER PROGRAMS.

       ``(a) Definitions.--In this part:
       ``(1) Board certified.--The term `board certified' means 
     successful completion of all

[[Page 2033]]

     requirements to be certified by the National Board for 
     Professional Teaching Standards.
       ``(2) Master teacher.--The term `master teacher' means a 
     teacher who is certified by the National Board for 
     Professional Teaching Standards and has been teaching for not 
     less than 3 years.
       ``(3) Novice teacher.--The term `novice teacher' means a 
     teacher who has been teaching for not more than 3 years at a 
     public elementary school or secondary school.
       ``(b) Program Authorized.--
       ``(1) Authority.--
       ``(A) In general.--The Secretary is authorized to award 
     grants on a competitive basis to local educational agencies 
     to establish master teacher programs as described in 
     paragraph (4).
       ``(B) Distribution.--To the maximum extent practicable, the 
     Secretary shall award grants under subparagraph (A) so that 
     such grants are distributed among the school districts with 
     the highest concentration of teachers who are not certified 
     or licensed or are provisionally certified or licensed.
       ``(2) Duration.--A grant under paragraph (1) shall be 
     awarded for a period of 5 years.
       ``(3) Amount.--The amount of a grant awarded under 
     paragraph (1) shall be determined based on--
       ``(A) the total amount appropriated for a fiscal year under 
     subsection (h); and
       ``(B) the extent of the concentration of teachers who are 
     not certified or licensed or are provisionally certified or 
     licensed in the school district involved.
       ``(4) Authorized activities.--The master teacher programs 
     described in paragraph (1) shall provide funding assistance 
     to teachers to become board certified, including the 
     provision of the board certification fee.
       ``(c) Applications.--
       ``(1) In general.--A local educational agency desiring a 
     grant under subsection (b) shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may reasonably require.
       ``(2) Approval of application.--The Secretary shall make a 
     determination regarding an application submitted under 
     paragraph (1) based on a recommendation of a peer review 
     panel, as established by the Secretary, and any other 
     criteria that the Secretary determines to be appropriate.
       ``(d) Payments.--
       ``(1) In general.--Grant payments shall be made under this 
     section on an annual basis.
       ``(2) Administrative costs.--Each local educational agency 
     that receives a grant under subsection (b) shall use not more 
     than 2 percent of the amount awarded under the grant for 
     administrative costs.
       ``(3) Denial of grant.--If the Secretary determines that a 
     local educational agency has failed to make substantial 
     progress during a fiscal year in increasing the percentage of 
     teachers who are board certified, or in improving student 
     achievement, such an agency shall not be eligible for a grant 
     payment under this section in the next succeeding year.
       ``(e) Reports.--Not later than March 31, 2004, the 
     Secretary shall prepare and submit 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 a report of program activities funded under 
     this section.
       ``(f) Matching Requirement.--The Secretary may not award a 
     grant to a local educational agency under subsection (b) 
     unless the local educational agency agrees that, with respect 
     to costs to be incurred by the agency in carrying out 
     activities for which the grant was awarded, the agency shall 
     provide (directly or through donations from public or private 
     entities) non-Federal contributions in an amount equal to 25 
     percent of the amount of the grant awarded to the agency.
       ``(g) Repayment of Funds.--
       ``(1) In general.--In the case of any program under this 
     section in which assistance is provided to a teacher to pay 
     the National Board for Professional Teaching Standard board 
     certification fee to become board certified, assistance may 
     only be provided if the teacher makes agreements as follows:
       ``(A) The teacher will enter and complete the National 
     Board for Professional Teaching Standards board certification 
     program to become board certified.
       ``(B) Upon becoming board certified, the teacher will teach 
     in the public school system for a period of not less than 2 
     years.
       ``(2) Breach of agreements.--A teacher receiving assistance 
     described in paragraph (1) is liable to the local educational 
     agency that provides such assistance for the amount of the 
     certification fee described in paragraph (1) if such 
     teacher--
       ``(A) voluntarily withdraws or terminates the certification 
     program before taking the examination for board 
     certification; or
       ``(B) is dismissed from the certification program before 
     becoming board certified.
       ``(h) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, $50,000,000 for 
     each of the fiscal years 2001 through 2005.''.
                                 ______
                                 

                  ROTH (AND OTHERS) AMENDMENT NO. 2869

  Mr. ROTH (for himself, Mr. Ashcroft, and Mr. Voinovich) proposed an 
amendment to the bill, S. 1134, supra; as follows:

       Beginning on page 2, line 4, strike ``1999'' and all that 
     follows through page 51, line 3, and insert the following: 
     2000''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.

                 TITLE I--EDUCATION SAVINGS INCENTIVES

Sec. 101. Modifications to education individual retirement accounts.
Sec. 102. Modifications to qualified tuition programs.

                    TITLE II--EDUCATIONAL ASSISTANCE

Sec. 201. Permanent extension of exclusion for employer-provided 
              educational assistance.
Sec. 202. Elimination of 60-month limit on student loan interest 
              deduction.
Sec. 203. Exclusion of certain amounts received under the National 
              Health Service Corps Scholarship Program and the F. 
              Edward Hebert Armed Forces Health Professions Scholarship 
              and Financial Assistance Program.
Sec. 204. 2-percent floor on miscellaneous itemized deductions not to 
              apply to qualified professional development expenses of 
              elementary and secondary school teachers.
Sec. 205. Credit to elementary and secondary school teachers who 
              provide classroom materials.

  TITLE III--LIBERALIZATION OF TAX-EXEMPT FINANCING RULES FOR PUBLIC 
                          SCHOOL CONSTRUCTION

Sec. 301. Additional increase in arbitrage rebate exception for 
              governmental bonds used to finance educational 
              facilities.
Sec. 302. Treatment of qualified public educational facility bonds as 
              exempt facility bonds.
Sec. 303. Federal guarantee of school construction bonds by Federal 
              Housing Finance Board.

                 TITLE I--EDUCATION SAVINGS INCENTIVES

     SEC. 101. MODIFICATIONS TO EDUCATION INDIVIDUAL RETIREMENT 
                   ACCOUNTS.

       (a) Maximum Annual Contributions.--
       (1) In general.--Section 530(b)(1)(A)(iii) (defining 
     education individual retirement account) is amended by 
     striking ``$500'' and inserting ``$2,000''.
       (2) Conforming amendment.--Section 4973(e)(1)(A) is amended 
     by striking ``$500'' and inserting ``$2,000''.
       In subsection (a) of section 101, add at the end the 
     following:
       (3) Elimination of the marriage penalty in the reduction in 
     permitted contributions.--Section 530(c)(1) (relating to 
     reduction in permitted contributions based on adjusted gross 
     income) is amended--
       (A) by striking ``$150,000'' in subparagraph (A)(ii) and 
     inserting ``$190,000'', and
       (B) by striking ``$10,000'' in subparagraph (B) and 
     inserting ``$30,000''.
       (b) Tax-Free Expenditures for Elementary and Secondary 
     School Expenses.--
       (1) In general.--Section 530(b)(2) (defining qualified 
     higher education expenses) is amended to read as follows:
       ``(2) Qualified education expenses.--
       ``(A) In general.--The term `qualified education expenses' 
     means--
       ``(i) qualified higher education expenses (as defined in 
     section 529(e)(3)), and
       ``(ii) qualified elementary and secondary education 
     expenses (as defined in paragraph (4)).
       ``(B) Qualified state tuition programs.--Such term shall 
     include any contribution to a qualified State tuition program 
     (as defined in section 529(b)) on behalf of the designated 
     beneficiary (as defined in section 529(e)(1)); but there 
     shall be no increase in the investment in the contract for 
     purposes of applying section 72 by reason of any portion of 
     such contribution which is not includible in gross income by 
     reason of subsection (d)(2).''
       (2) Qualified elementary and secondary education 
     expenses.--Section 530(b) (relating to definitions and 
     special rules) is amended by adding at the end the following 
     new paragraph:
       ``(4) Qualified elementary and secondary education 
     expenses.--
       ``(A) In general.--The term `qualified elementary and 
     secondary education expenses' means--
       ``(i) expenses for tuition, fees, academic tutoring, 
     special needs services, books, supplies, computer equipment 
     (including related software and services), and other 
     equipment which are incurred in connection with the

[[Page 2034]]

     enrollment or attendance of the designated beneficiary of the 
     trust as an elementary or secondary school student at a 
     public, private, or religious school, and
       ``(ii) expenses for room and board, uniforms, 
     transportation, and supplementary items and services 
     (including extended day programs) which are required or 
     provided by a public, private, or religious school in 
     connection with such enrollment or attendance.
       ``(B) Special rule for homeschooling.--Such term shall 
     include expenses described in subparagraph (A)(i) in 
     connection with education provided by homeschooling if the 
     requirements of any applicable State or local law are met 
     with respect to such education.
       ``(C) School.--The term `school' means any school which 
     provides elementary education or secondary education 
     (kindergarten through grade 12), as determined under State 
     law.''
       (3) Conforming amendments.--Section 530 is amended--
       (A) by striking ``higher'' each place it appears in 
     subsections (b)(1) and (d)(2), and
       (B) by striking ``higher'' in the heading for subsection 
     (d)(2).
       (c) Waiver of Age Limitations for Children With Special 
     Needs.--Section 530(b)(1) (defining education individual 
     retirement account) is amended by adding at the end the 
     following flush sentence:
     ``The age limitations in subparagraphs (A)(ii) and (E) and 
     paragraphs (5) and (6) of subsection (d) shall not apply to 
     any designated beneficiary with special needs (as determined 
     under regulations prescribed by the Secretary).''
       (d) Entities Permitted To Contribute to Accounts.--Section 
     530(c)(1) (relating to reduction in permitted contributions 
     based on adjusted gross income) is amended by striking ``The 
     maximum amount which a contributor'' and inserting ``In the 
     case of a contributor who is an individual, the maximum 
     amount the contributor''.
       (e) Time When Contributions Deemed Made.--
       (1) In general.--Section 530(b) (relating to definitions 
     and special rules), as amended by subsection (b)(2), is 
     amended by adding at the end the following new paragraph:
       ``(5) Time when contributions deemed made.--An individual 
     shall be deemed to have made a contribution to an education 
     individual retirement account on the last day of the 
     preceding taxable year if the contribution is made on account 
     of such taxable year and is made not later than the time 
     prescribed by law for filing the return for such taxable year 
     (not including extensions thereof).''
       (2) Extension of time to return excess contributions.--
     Subparagraph (C) of section 530(d)(4) (relating to additional 
     tax for distributions not used for educational expenses) is 
     amended--
       (A) by striking clause (i) and inserting the following new 
     clause:
       ``(i) such distribution is made before the 1st day of the 
     6th month of the taxable year following the taxable year, 
     and'', and
       (B) by striking ``due date of return'' in the heading and 
     inserting ``certain date''.
       (f) Coordination With Hope and Lifetime Learning Credits 
     and Qualified Tuition Programs.--
       (1) In general.--Section 530(d)(2)(C) is amended to read as 
     follows:
       ``(C) Coordination with hope and lifetime learning credits 
     and qualified tuition programs.--For purposes of subparagraph 
     (A)
       ``(i) Credit coordination.--The total amount of qualified 
     higher education expenses with respect to an individual for 
     the taxable year shall be reduced--

       ``(I) as provided in section 25A(g)(2), and
       ``(II) by the amount of such expenses which were taken into 
     account in determining the credit allowed to the taxpayer or 
     any other person under section 25A.

       ``(ii) Coordination with qualified tuition programs.--If, 
     with respect to an individual for any taxable year--

       ``(I) the aggregate distributions during such year to which 
     subparagraph (A) and section 529(c)(3)(B) apply, exceed
       ``(II) the total amount of qualified higher education 
     expenses (after the application of clause (i)) for such year, 
     the taxpayer shall allocate such expenses among such 
     distributions for purposes of determining the amount of the 
     exclusion under subparagraph (A) and section 529(c)(3)(B).''

       (2) Conforming amendments.--
       (A) Subsection (e) of section 25A is amended to read as 
     follows:

       ``(e) Election Not To Have Section Apply.--A taxpayer may 
     elect not to have this section apply with respect to the 
     qualified tuition and related expenses of an individual for 
     any taxable year.''
       (B) Section 135(d)(2)(A) is amended by striking 
     ``allowable'' and inserting ``allowed''.
       (C) Section 530(d)(2)(D) is amended--
       (i) by striking ``or credit'', and
       (ii) by striking ``credit or'' in the heading.
       (D) Section 4973(e)(1) is amended by adding ``and'' at the 
     end of subparagraph (A), by striking subparagraph (B), and by 
     redesignating subparagraph (C) as subparagraph (B).
       (g) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. 102. MODIFICATIONS TO QUALIFIED TUITION PROGRAMS.

       (a) Eligible Educational Institutions Permitted To Maintain 
     Qualified Tuition Programs.--
       (1) In general.--Section 529(b)(1) (defining qualified 
     State tuition program) is amended by inserting ``or by 1 or 
     more eligible educational institutions'' after ``maintained 
     by a State or agency or instrumentality thereof''.
       (2) Private qualified tuition programs limited to benefit 
     plans.--Clause (ii) of section 529(b)(1)(A) is amended by 
     inserting ``in the case of a program established and 
     maintained by a State or agency or instrumentality thereof,'' 
     before ``may make''.
       (3) Conforming amendments.--
       (A) Sections 72(e)(9), 135(c)(2)(C), 135(d)(1)(D), 529, 
     530(b)(2)(B), 4973(e), and 6693(a)(2)(C) are each amended by 
     striking ``qualified State tuition'' each place it appears 
     and inserting ``qualified tuition''.
       (B) The headings for sections 72(e)(9) and 135(c)(2)(C) are 
     each amended by striking ``qualified state tuition'' and 
     inserting ``qualified tuition''.
       (C) The headings for sections 529(b) and 530(b)(2)(B) are 
     each amended by striking ``Qualified state tuition'' and 
     inserting ``Qualified tuition''.
       (D) The heading for section 529 is amended by striking 
     ``state''.
       (E) The item relating to section 529 in the table of 
     sections for part VIII of subchapter F of chapter 1 is 
     amended by striking ``State''.
       (b) Exclusion From Gross Income of Education Distributions 
     From Qualified Tuition Programs.--
       (1) In general.--Section 529(c)(3)(B) (relating to 
     distributions) is amended to read as follows:
       ``(B) Distributions for qualified higher education 
     expenses.--For purposes of this paragraph--
       ``(i) In-kind distributions.--No amount shall be includible 
     in gross income under subparagraph (A) by reason of a 
     distribution which consists of providing a benefit to the 
     distributee which, if paid for by the distributee, would 
     constitute payment of a qualified higher education expense.
       ``(ii) Cash distributions.--In the case of distributions 
     not described in clause (i), if--

       ``(I) such distributions do not exceed the qualified higher 
     education expenses (reduced by expenses described in clause 
     (i)), no amount shall be includible in gross income, and
       ``(II) in any other case, the amount otherwise includible 
     in gross income shall be reduced by an amount which bears the 
     same ratio to such amount as such expenses bear to such 
     distributions.

       ``(iii) Exception for institutional programs.--In the case 
     of any taxable year beginning before January 1, 2004, clauses 
     (i) and (ii) shall not apply with respect to any distribution 
     during such taxable year under a qualified tuition program 
     established and maintained by 1 or more eligible educational 
     institutions.
       ``(iv) Treatment as distributions.--Any benefit furnished 
     to a designated beneficiary under a qualified tuition program 
     shall be treated as a distribution to the beneficiary for 
     purposes of this paragraph.
       ``(v) Coordination with hope and lifetime learning 
     credits.--The total amount of qualified higher education 
     expenses with respect to an individual for the taxable year 
     shall be reduced--

       ``(I) as provided in section 25A(g)(2), and
       ``(II) by the amount of such expenses which were taken into 
     account in determining the credit allowed to the taxpayer or 
     any other person under section 25A.

       ``(vi) Coordination with education individual retirement 
     accounts.--If, with respect to an individual for any taxable 
     year--

       ``(I) the aggregate distributions to which clauses (i) and 
     (ii) and section 530(d)(2)(A) apply, exceed
       ``(II) the total amount of qualified higher education 
     expenses otherwise taken into account under clauses (i) and 
     (ii) (after the application of clause (iv)) for such year,

     the taxpayer shall allocate such expenses among such 
     distributions for purposes of determining the amount of the 
     exclusion under clauses (i) and (ii) and section 
     530(d)(2)(A).''
       (2) Conforming amendments.--
       (A) Section 135(d)(2)(B) is amended by striking ``section 
     530(d)(2)'' and inserting ``sections 529(c)(3)(B)(i) and 
     530(d)(2)''.
       (B) Section 221(e)(2)(A) is amended by inserting ``529,'' 
     after ``135,''.
       (c) Rollover to Different Program for Benefit of Same 
     Designated Beneficiary.--Section 529(c)(3)(C) (relating to 
     change in beneficiaries) is amended--
       (1) by striking ``transferred to the credit'' in clause (i) 
     and inserting ``transferred--

       ``(I) to another qualified tuition program for the benefit 
     of the designated beneficiary, or
       ``(II) to the credit'',

       (2) by adding at the end the following new clause:
       ``(iii) Limitation on certain rollovers.--Clause (i)(I) 
     shall only apply to the first 3 transfers with respect to a 
     designated beneficiary.'', and
       (3) by inserting ``or programs'' after ``beneficiaries'' in 
     the heading.
       (d) Member of Family Includes First Cousin.--Section 
     529(e)(2) (defining member

[[Page 2035]]

     of family) is amended by striking ``and'' at the end of 
     subparagraph (B), by striking the period at the end of 
     subparagraph (C) and by inserting ``; and'', and by adding at 
     the end the following new subparagraph:
       ``(D) any first cousin of such beneficiary.''
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

                    TITLE II--EDUCATIONAL ASSISTANCE

     SEC. 201. PERMANENT EXTENSION OF EXCLUSION FOR EMPLOYER-
                   PROVIDED EDUCATIONAL ASSISTANCE.

       (a) In General.--Section 127 (relating to exclusion for 
     educational assistance programs) is amended by striking 
     subsection (d).
       (b) Repeal of Limitation on Graduate Education.--
       (1) In general.--The last sentence of section 127(c)(1) is 
     amended by striking ``, and such term also does not include 
     any payment for, or the provision of any benefits with 
     respect to, any graduate level course of a kind normally 
     taken by an individual pursuing a program leading to a law, 
     business, medical, or other advanced academic or professional 
     degree''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply with respect to expenses relating to courses 
     beginning after December 31, 2000.

     SEC. 202. ELIMINATION OF 60-MONTH LIMIT ON STUDENT LOAN 
                   INTEREST DEDUCTION.

       (a) In General.--Section 221 (relating to interest on 
     education loans) is amended by striking subsection (d) and by 
     redesignating subsections (e), (f), and (g) as subsections 
     (d), (e), and (f), respectively.
       (b) Conforming Amendment.--Section 6050S(e) is amended by 
     striking ``section 221(e)(1)'' and inserting ``section 
     221(d)(1)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to any loan interest paid after 
     December 31, 2000.

     SEC. 203. EXCLUSION OF CERTAIN AMOUNTS RECEIVED UNDER THE 
                   NATIONAL HEALTH SERVICE CORPS SCHOLARSHIP 
                   PROGRAM AND THE F. EDWARD HEBERT ARMED FORCES 
                   HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL 
                   ASSISTANCE PROGRAM.

       (a) In General.--Section 117(c) (relating to the exclusion 
     from gross income amounts received as a qualified 
     scholarship) is amended--
       (1) by striking ``Subsections (a)'' and inserting the 
     following:
       ``(1) In general.--Except as provided in paragraph (2), 
     subsections (a)'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Exceptions.--Paragraph (1) shall not apply to any 
     amount received by an individual under--
       ``(A) the National Health Service Corps Scholarship Program 
     under section 338A(g)(1)(A) of the Public Health Service Act, 
     or
       ``(B) the Armed Forces Health Professions Scholarship and 
     Financial Assistance program under subchapter I of chapter 
     105 of title 10, United States Code.''
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to amounts received in taxable years beginning 
     after December 31, 1993.

     SEC. 204. 2-PERCENT FLOOR ON MISCELLANEOUS ITEMIZED 
                   DEDUCTIONS NOT TO APPLY TO QUALIFIED 
                   PROFESSIONAL DEVELOPMENT EXPENSES OF ELEMENTARY 
                   AND SECONDARY SCHOOL TEACHERS.

       (a) In General.--Section 67(b) (defining miscellaneous 
     itemized deductions) is amended by striking ``and'' at the 
     end of paragraph (11), by striking the period at the end of 
     paragraph (12) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(13) any deduction allowable for the qualified 
     professional development expenses paid or incurred by an 
     eligible teacher.''.
       (b) Definitions.--Section 67 (relating to 2-percent floor 
     on miscellaneous itemized deductions) is amended by adding at 
     the end the following new subsection:
       ``(g) Qualified Professional Development Expenses of 
     Eligible Teachers.--For purposes of subsection (b)(13)--
       ``(1) Qualified professional development expenses.--
       ``(A) In general.--The term `qualified professional 
     development expenses' means expenses--
       ``(i) for tuition, fees, books, supplies, equipment, and 
     transportation required for the enrollment or attendance of 
     an individual in a qualified course of instruction, and
       ``(ii) with respect to which a deduction is allowable under 
     section 162 (determined without regard to this section).
       ``(B) Qualified course of instruction.--The term `qualified 
     course of instruction' means a course of instruction which--
       ``(i) is--

       ``(I) directly related to the curriculum and academic 
     subjects in which an eligible teacher provides instruction, 
     or
       ``(II) designed to enhance the ability of an eligible 
     teacher to understand and use State standards for the 
     academic subjects in which such teacher provides instruction,

       ``(ii) may--

       ``(I) provide instruction in how to teach children with 
     different learning styles, particularly children with 
     disabilities and children with special learning needs 
     (including children who are gifted and talented), or
       ``(II) provide instruction in how best to discipline 
     children in the classroom and identify early and appropriate 
     interventions to help children described in subclause (I) to 
     learn,

       ``(iii) is tied to challenging State or local content 
     standards and student performance standards,
       ``(iv) is tied to strategies and programs that demonstrate 
     effectiveness in increasing student academic achievement and 
     student performance, or substantially increasing the 
     knowledge and teaching skills of an eligible teacher,
       ``(v) is of sufficient intensity and duration to have a 
     positive and lasting impact on the performance of an eligible 
     teacher in the classroom (which shall not include 1-day or 
     short-term workshops and conferences), except that this 
     clause shall not apply to an activity if such activity is 1 
     component described in a long-term comprehensive professional 
     development plan established by an eligible teacher and the 
     teacher's supervisor based upon an assessment of the needs of 
     the teacher, the students of the teacher, and the local 
     educational agency involved, and
       ``(vi) is part of a program of professional development 
     which is approved and certified by the appropriate local 
     educational agency as furthering the goals of the preceding 
     clauses.
       ``(C) Local educational agency.--The term `local 
     educational agency' has the meaning given such term by 
     section 14101 of the Elementary and Secondary Education Act 
     of 1965, as in effect on the date of the enactment of this 
     subsection.
       ``(2) Eligible teacher.--
       ``(A) In general.--The term `eligible teacher' means an 
     individual who is a kindergarten through grade 12 classroom 
     teacher in an elementary or secondary school.
       ``(B) Elementary or secondary school.--The terms 
     `elementary school' and `secondary school' have the meanings 
     given such terms by section 14101 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8801), as so in 
     effect.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. 205. CREDIT TO ELEMENTARY AND SECONDARY SCHOOL TEACHERS 
                   WHO PROVIDE CLASSROOM MATERIALS.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     section:

     ``SEC. 30B. CREDIT TO ELEMENTARY AND SECONDARY SCHOOL 
                   TEACHERS WHO PROVIDE CLASSROOM MATERIALS.

       ``(a) Allowance of Credit.--In the case of an eligible 
     teacher, there shall be allowed as a credit against the tax 
     imposed by this chapter for such taxable year an amount equal 
     to the qualified elementary and secondary education expenses 
     which are paid or incurred by the taxpayer during such 
     taxable year.
       ``(b) Maximum Credit.--The credit allowed by subsection (a) 
     for any taxable year shall not exceed $100.
       ``(c) Definitions.--
       ``(1) Eligible teacher.--The term `eligible teacher' means 
     an individual who is a kindergarten through grade 12 
     classroom teacher, instructor, counselor, aide, or principal 
     in an elementary or secondary school on a full-time basis for 
     an academic year ending during a taxable year.
       ``(2) Qualified elementary and secondary education 
     expenses.--The term `qualified elementary and secondary 
     education expenses' means expenses for books, supplies (other 
     than nonathletic supplies for courses of instruction in 
     health or physical education), computer equipment (including 
     related software and services) and other equipment, and 
     supplementary materials used by an eligible teacher in the 
     classroom.
       ``(3) Elementary or secondary school.--The term `elementary 
     or secondary school' means any school which provides 
     elementary education or secondary education (through grade 
     12), as determined under State law.
       ``(d) Special Rules.--
       ``(1) Denial of double benefit.--No deduction shall be 
     allowed under this chapter for any expense for which credit 
     is allowed under this section.
       ``(2) Application with other credits.--The credit allowable 
     under subsection (a) for any taxable year shall not exceed 
     the excess (if any) of--
       ``(A) the regular tax for the taxable year, reduced by the 
     sum of the credits allowable under subpart A and the 
     preceding sections of this subpart, over
       ``(B) the tentative minimum tax for the taxable year.
       ``(e) Election To Have Credit Not Apply.--A taxpayer may 
     elect to have this section not apply for any taxable year.''.
       (b) Clerical Amendment.--The table of sections for subpart 
     B of part IV of subchapter A of chapter 1 is amended by 
     adding at the end the following new item:

``Sec. 30B. Credit to elementary and secondary school teachers who 
              provide classroom materials.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

[[Page 2036]]



  TITLE III--LIBERALIZATION OF TAX-EXEMPT FINANCING RULES FOR PUBLIC 
                          SCHOOL CONSTRUCTION

     SEC. 301. ADDITIONAL INCREASE IN ARBITRAGE REBATE EXCEPTION 
                   FOR GOVERNMENTAL BONDS USED TO FINANCE 
                   EDUCATIONAL FACILITIES.

       (a) In General.--Section 148(f)(4)(D)(vii) (relating to 
     increase in exception for bonds financing public school 
     capital expenditures) is amended by striking ``$5,000,000'' 
     the second place it appears and inserting ``$10,000,000''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to obligations issued in calendar years beginning 
     after December 31, 2000.

     SEC. 302. TREATMENT OF QUALIFIED PUBLIC EDUCATIONAL FACILITY 
                   BONDS AS EXEMPT FACILITY BONDS.

       (a) Treatment as Exempt Facility Bond.--Subsection (a) of 
     section 142 (relating to exempt facility bond) is amended by 
     striking ``or'' at the end of paragraph (11), by striking the 
     period at the end of paragraph (12) and inserting ``, or'', 
     and by adding at the end the following new paragraph:
       ``(13) qualified public educational facilities.''
       (b) Qualified Public Educational Facilities.--Section 142 
     (relating to exempt facility bond) is amended by adding at 
     the end the following new subsection:
       ``(k) Qualified Public Educational Facilities.--
       ``(1) In general.--For purposes of subsection (a)(13), the 
     term `qualified public educational facility' means any school 
     facility which is--
       ``(A) part of a public elementary school or a public 
     secondary school, and
       ``(B) owned by a private, for-profit corporation pursuant 
     to a public-private partnership agreement with a State or 
     local educational agency described in paragraph (2).
       ``(2) Public-private partnership agreement described.--A 
     public-private partnership agreement is described in this 
     paragraph if it is an agreement--
       ``(A) under which the corporation agrees--
       ``(i) to do 1 or more of the following: construct, 
     rehabilitate, refurbish, or equip a school facility, and
       ``(ii) at the end of the term of the agreement, to transfer 
     the school facility to such agency for no additional 
     consideration, and
       ``(B) the term of which does not exceed the term of the 
     issue to be used to provide the school facility.
       ``(3) School facility.--For purposes of this subsection, 
     the term `school facility' means--
       ``(A) school buildings,
       ``(B) functionally related and subordinate facilities and 
     land with respect to such buildings, including any stadium or 
     other facility primarily used for school events, and
       ``(C) any property, to which section 168 applies (or would 
     apply but for section 179), for use in the facility.
       ``(4) Public schools.--For purposes of this subsection, the 
     terms `elementary school' and `secondary school' have the 
     meanings given such terms by section 14101 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 8801), as in 
     effect on the date of the enactment of this subsection.
       ``(5) Annual aggregate face amount of tax-exempt 
     financing.--
       ``(A) In general.--An issue shall not be treated as an 
     issue described in subsection (a)(13) if the aggregate face 
     amount of bonds issued by the State pursuant thereto (when 
     added to the aggregate face amount of bonds previously so 
     issued during the calendar year) exceeds an amount equal to 
     the greater of--
       ``(i) $10 multiplied by the State population, or
       ``(ii) $5,000,000.
       ``(B) Allocation rules.--
       ``(i) In general.--Except as otherwise provided in this 
     subparagraph, the State may allocate the amount described in 
     subparagraph (A) for any calendar year in such manner as the 
     State determines appropriate.
       ``(ii) Rules for carryforward of unused limitation.--A 
     State may elect to carry forward an unused limitation for any 
     calendar year for 3 calendar years following the calendar 
     year in which the unused limitation arose under rules similar 
     to the rules of section 146(f), except that the only purpose 
     for which the carryforward may be elected is the issuance of 
     exempt facility bonds described in subsection (a)(13).''
       (c) Exemption From General State Volume Caps.--Paragraph 
     (3) of section 146(g) (relating to exception for certain 
     bonds) is amended--
       (1) by striking ``or (12)'' and inserting ``(12), or 
     (13)'', and
       (2) by striking ``and environmental enhancements of 
     hydroelectric generating facilities'' and inserting 
     ``environmental enhancements of hydroelectric generating 
     facilities, and qualified public educational facilities''.
       (d) Exemption From Limitation on Use for Land 
     Acquisition.--Section 147(h) (relating to certain rules not 
     to apply to mortgage revenue bonds, qualified student loan 
     bonds, and qualified 501(c)(3) bonds) is amended by adding at 
     the end the following new paragraph:
       ``(3) Exempt facility bonds for qualified public-private 
     schools.--Subsection (c) shall not apply to any exempt 
     facility bond issued as part of an issue described in section 
     142(a)(13) (relating to qualified public educational 
     facilities).''
       (e) Conforming Amendment.--The heading for section 147(h) 
     is amended by striking ``Mortgage Revenue Bonds, Qualified 
     Student Loan Bonds, and Qualified 501(c)(3) Bonds'' and 
     inserting ``Certain Bonds''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after December 31, 2000.

     SEC. 303. FEDERAL GUARANTEE OF SCHOOL CONSTRUCTION BONDS BY 
                   FEDERAL HOUSING FINANCE BOARD.

       (a) In General.--Section 149(b)(3) (relating to exceptions) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(E) Certain guaranteed school construction bonds.--Any 
     bond issued as part of an issue 95 percent or more of the net 
     proceeds of which are used for public school construction 
     shall not be treated as federally guaranteed for any calendar 
     year by reason of any guarantee by the Federal Housing 
     Finance Board (through any Federal Home Loan Bank) under the 
     Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.), as in 
     effect on the date of the enactment of this subparagraph, to 
     the extent the face amount of such bond, when added to the 
     aggregate face amount of such bonds previously so guaranteed 
     for such year, does not exceed $500,000,000.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to bonds issued after December 31, 2000.
       At the appropriate place, add the following:

                    TITLE __--TRANSITION TO TEACHING

     SEC. __1. SHORT TITLE.

       This title may be cited as the ``Transition to Teaching 
     Act''.

     SEC. __2. FINDINGS.

       The Congress finds as follows:
       (1) School districts will need to hire more than 2,000,000 
     teachers in the next decade. The need for teachers in the 
     areas of mathematics, science, foreign languages, special 
     education, and bilingual education, and for those able to 
     teach in high-poverty school districts will be particularly 
     high. To meet this need, talented Americans of all ages 
     should be recruited to become successful, qualified teachers.
       (2) Nearly 28 percent of teachers of academic subjects have 
     neither an undergraduate major nor minor in their main 
     assignment fields. This problem is more acute in high-poverty 
     schools, where the out-of-field percentage is 39 percent.
       (3) The Third International Math and Science Study (TIMSS) 
     ranked United States high school seniors last among 16 
     countries in physics and next to last in mathematics. It is 
     also evident, mainly from the TIMSS data, that based on 
     academic scores, a stronger emphasis needs to be placed on 
     the academic preparation of our children in mathematics and 
     science.
       (4) One-fourth of high-poverty schools find it very 
     difficult to fill bilingual teaching positions, and nearly 
     half of public school teachers have students in their 
     classrooms for whom English is a second language.
       (5) Many career-changing professionals with strong content-
     area skills are interested in a teaching career, but need 
     assistance in getting the appropriate pedagogical training 
     and classroom experience.
       (6) The Troops to Teachers model has been highly successful 
     in linking high-quality teachers to teach in high-poverty 
     districts.

     SEC. __3. PURPOSE.

       The purpose of this title is to address the need of high-
     poverty school districts for highly qualified teachers in 
     particular subject areas, such as mathematics, science, 
     foreign languages, bilingual education, and special 
     education, needed by those school districts, by recruiting, 
     preparing, placing, and supporting career-changing 
     professionals who have knowledge and experience that will 
     help them become such teachers.

     SEC. __4. PROGRAM AUTHORIZED.

       (a) Authority.--The Secretary is authorized to use funds 
     appropriated under subsection (b) for each fiscal year to 
     award grants, contracts, or cooperative agreements to 
     institutions of higher education and public and private 
     nonprofit agencies or organizations to carry out programs 
     authorized by this title.
       (b) Authorization of Appropriations.--For the purpose of 
     carrying out this title, there are authorized to be 
     appropriated $25,000,000 for each of fiscal years 2001 
     through 2006.

     SEC. __5. APPLICATION.

       Each applicant that desires an award under section __4(a) 
     shall submit an application to the Secretary containing such 
     information as the Secretary requires, including--
       (1) a description of the target group of career-changing 
     professionals upon which the applicant will focus in carrying 
     out its program under this title, including a description of 
     the characteristics of that target group that shows how the 
     knowledge and experience of its members are relevant to 
     meeting the purpose of this title;
       (2) a description of how the applicant will identify and 
     recruit program participants;

[[Page 2037]]

       (3) a description of the training that program participants 
     will receive and how that training will relate to their 
     certification as teachers;
       (4) a description of how the applicant will ensure that 
     program participants are placed and teach in high-poverty 
     local educational agencies;
       (5) a description of the teacher induction services (which 
     may be provided through existing induction programs) the 
     program participants will receive throughout at least their 
     first year of teaching;
       (6) a description of how the applicant will collaborate, as 
     needed, with other institutions, agencies, or organizations 
     to recruit, train, place, and support program participants 
     under this title, including evidence of the commitment of 
     those institutions, agencies, or organizations to the 
     applicant's program;
       (7) a description of how the applicant will evaluate the 
     progress and effectiveness of its program, including--
       (A) the program's goals and objectives;
       (B) the performance indicators the applicant will use to 
     measure the program's progress; and
       (C) the outcome measures that will be used to determine the 
     program's effectiveness; and
       (8) an assurance that the applicant will provide to the 
     Secretary such information as the Secretary determines 
     necessary to determine the overall effectiveness of programs 
     under this title.

     SEC. __6. USES OF FUNDS AND PERIOD OF SERVICE.

       (a) Authorized Activities.--Funds under this title may be 
     used for--
       (1) recruiting program participants, including informing 
     them of opportunities under the program and putting them in 
     contact with other institutions, agencies, or organizations 
     that would train, place, and support them;
       (2) training stipends and other financial incentives for 
     program participants, not to exceed $5,000 per participant;
       (3) assisting institutions of higher education or other 
     providers of teacher training to tailor their training to 
     meet the particular needs of professionals who are changing 
     their careers to teaching;
       (4) placement activities, including identifying high-
     poverty local educational agencies with a need for the 
     particular skills and characteristics of the newly trained 
     program participants and assisting those participants to 
     obtain employment in those local educational agencies; and
       (5) post-placement induction or support activities for 
     program participants.
       (b) Period of Service.--A program participant in a program 
     under this title who completes his or her training shall 
     serve in a high-poverty local educational agency for at least 
     3 years.
       (c) Repayment.--The Secretary shall establish such 
     requirements as the Secretary determines appropriate to 
     ensure that program participants who receive a training 
     stipend or other financial incentive under subsection (a)(2), 
     but fail to complete their service obligation under 
     subsection (b), repay all or a portion of such stipend or 
     other incentive.

     SEC. __7. EQUITABLE DISTRIBUTION.

       To the extent practicable, the Secretary shall make awards 
     under this title that support programs in different 
     geographic regions of the Nation.

     SEC. __8. DEFINITIONS.

       In this title:
       (1) High-poverty local educational agency.--The term 
     ``high-poverty local educational agency'' means a local 
     educational agency in which the percentage of children, ages 
     5 through 17, from families below the poverty level is 20 
     percent or greater, or the number of such children exceeds 
     10,000.
       (2) Program participants.--The term ``program 
     participants'' means career-changing professionals who--
       (A) hold at least a baccalaureate degree;
       (B) demonstrate interest in, and commitment to, becoming a 
     teacher; and
       (C) have knowledge and experience that are relevant to 
     teaching a high-need subject area in a high-need local 
     educational agency.

     SEC. __. EXPANSION OF DEDUCTION FOR COMPUTER DONATIONS TO 
                   SCHOOLS.

       (a) Extension of Age of Eligible Computers.--Section 
     170(e)(6)(B)(ii) (defining qualified elementary or secondary 
     educational contribution) is amended by striking ``2 years'' 
     and inserting ``3 years''.
       (b) Reacquired Computers Eligible for Donation.--Section 
     170(e)(6)(B)(iii) (defining qualified elementary or secondary 
     educational contribution) is amended by inserting ``, the 
     person from whom the donor reacquires the property,'' after 
     ``the donor''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years ending 
     after the date of the enactment of this Act.

     SEC. __. CREDIT FOR COMPUTER DONATIONS TO SCHOOLS AND SENIOR 
                   CENTERS.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits) is amended 
     by adding at the end the following:

     ``SEC. 45D. CREDIT FOR COMPUTER DONATIONS TO SCHOOLS AND 
                   SENIOR CENTERS.

       ``(a) General Rule.--For purposes of section 38, the 
     computer donation credit determined under this section is an 
     amount equal to 30 percent of the qualified computer 
     contributions made by the taxpayer during the taxable year as 
     determined after the application of section 170(e)(6)(A).
       ``(b) Qualified Computer Contribution.--For purposes of 
     this section, the term `qualified computer contribution' has 
     the meaning given the term `qualified elementary or secondary 
     educational contribution' by section 170(e)(6)(B), except 
     that--
       ``(1) such term shall include the contribution of a 
     computer (as defined in section 168(i)(2)(B)(ii)) only if 
     computer software (as defined in section 197(e)(3)(B)) that 
     serves as a computer operating system has been lawfully 
     installed in such computer, and
       ``(2) notwithstanding clauses (i) and (iv) of section 
     170(e)(6)(B), such term shall include the contribution of 
     computer technology or equipment to multipurpose senior 
     centers (as defined in section 102(35) of the Older Americans 
     Act of 1965 (42 U.S.C. 3002(35)) described in section 
     501(c)(3) and exempt from tax under section 501(a) to be used 
     by individuals who have attained 60 years of age to improve 
     job skills in computers.
       ``(c) Increased Percentage for Contributions to Entities in 
     Empowerment Zones, Enterprise Communities, and Indian 
     Reservations.--In the case of a qualified computer 
     contribution to an entity located in an empowerment zone or 
     enterprise community designated under section 1391 or an 
     Indian reservation (as defined in section 168(j)(6)), 
     subsection (a) shall be applied by substituting `50 percent' 
     for `30 percent'.
       ``(d) Certain Rules Made Applicable.--For purposes of this 
     section, rules similar to the rules of paragraphs (1) and (2) 
     of section 41(f) shall apply.
       ``(e) Termination.--This section shall not apply to taxable 
     years beginning on or after the date which is 3 years after 
     the date of the enactment of the New Millennium Classrooms 
     Act.''
       (b) Current Year Business Credit Calculation.--Section 
     38(b) (relating to current year business credit) is amended 
     by striking ``plus'' at the end of paragraph (11), by 
     striking the period at the end of paragraph (12) and 
     inserting ``, plus'', and by adding at the end the following:
       ``(13) the computer donation credit determined under 
     section 45D(a).''
       (c) Disallowance of Deduction by Amount of Credit.--Section 
     280C (relating to certain expenses for which credits are 
     allowable) is amended by adding at the end the following:
       ``(d) Credit for Computer Donations.--No deduction shall be 
     allowed for that portion of the qualified computer 
     contributions (as defined in section 45D(b)) made during the 
     taxable year that is equal to the amount of credit determined 
     for the taxable year under section 45D(a). In the case of a 
     corporation which is a member of a controlled group of 
     corporations (within the meaning of section 52(a)) or a trade 
     or business which is treated as being under common control 
     with other trades or businesses (within the meaning of 
     section 52(b)), this subsection shall be applied under rules 
     prescribed by the Secretary similar to the rules applicable 
     under subsections (a) and (b) of section 52.''
       (d) Limitation on Carryback.--Subsection (d) of section 39 
     (relating to carryback and carryforward of unused credits) is 
     amended by adding at the end the following:
       ``(9) No carryback of computer donation credit before 
     effective date.--No amount of unused business credit 
     available under section 45D may be carried back to a taxable 
     year beginning on or before the date of the enactment of this 
     paragraph.''
       (e) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     inserting after the item relating to section 45C the 
     following:

``Sec. 45D. Credit for computer donations to schools and senior 
              centers.''
       (f) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years beginning 
     after the date of the enactment of this Act.

     SEC. __. REPORT TO CONGRESS REGARDING EXTENT AND SEVERITY OF 
                   CHILD POVERTY.

       (a) In General.--Not later than June 1, 2001 and prior to 
     any reauthorization of the temporary assistance to needy 
     families program under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.) for any fiscal year 
     after fiscal year 2002, the Secretary of Health and Human 
     Services (in this section referred to as the ``Secretary'') 
     shall report to Congress on the extent and severity of child 
     poverty in the United States. Such report shall, at a 
     minimum--
       (1) determine for the period since the enactment of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996 (Public Law 104-193; 110 Stat. 2105)--
       (A) whether the rate of child poverty in the United States 
     has increased;
       (B) whether the children who live in poverty in the United 
     States have gotten poorer; and
       (C) how changes in the availability of cash and non-cash 
     benefits to poor families have affected child poverty in the 
     United States;
       (2) identify alternative methods for defining child poverty 
     that are based on consideration of factors other than family 
     income

[[Page 2038]]

     and resources, including consideration of a family's work-
     related expenses; and
       (3) contain multiple measures of child poverty in the 
     United States that may include the child poverty gap and the 
     extreme poverty rate.
       (b) Legislative Proposal.--If the Secretary determines that 
     during the period since the enactment of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (Public Law 104-193; 110 Stat. 2105) the extent or 
     severity of child poverty in the United States has increased 
     to any extent, the Secretary shall include with the report to 
     Congress required under subsection (a) a legislative proposal 
     addressing the factors that led to such increase.

     SEC. __. CAREERS TO CLASSROOMS.

       (a) Definitions.--In this section:
       (1) In general.--The terms ``elementary school'', ``local 
     educational agency'', ``secondary school'', and ``Secretary'' 
     have the meanings given the terms in section 14101 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     8801).
       (2) Alternative certification or licensure requirements.--
     The term ``alternative certification or licensure 
     requirements'' means State or local teacher certification or 
     licensure requirements that permit a demonstrated competence 
     in appropriate subject areas gained in careers outside of 
     education to be substituted for traditional teacher training 
     course work.
       (3) Eligible individual.--The term ``eligible individual'' 
     means an individual who has received--
       (A) in the case of an individual applying for assistance 
     for placement as an elementary school or secondary school 
     teacher, a baccalaureate or advanced degree from an 
     institution of higher education; or
       (B) in the case of an individual applying for assistance 
     for placement as a teacher's aide in an elementary school or 
     secondary school, an associate, baccalaureate, or advanced 
     degree from an institution of higher education.
       (4) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 101 of the Higher Education Act of 1965 (20 
     U.S.C. 1001)
       (5) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, 
     American Samoa, the Federated States of Micronesia, Guam, the 
     Republic of the Marshall Islands, the Commonwealth of the 
     Northern Mariana Islands, the Commonwealth of Puerto Rico, 
     the Republic of Palau, and the United States Virgin Islands.
       (b) Placement Program.--The Secretary may establish a 
     program of awarding grants to States--
       (1) to enable the States to assist eligible individuals to 
     obtain--
       (A) certification or licensure as elementary school or 
     secondary school teachers; or
       (B) the credentials necessary to serve as teachers' aides; 
     and
       (2) to facilitate the employment of the eligible 
     individuals by local educational agencies identified under 
     subsection (c)(2) as experiencing a shortage of teachers or 
     teachers' aides.
       (c) States With Alternative Certification Requirements and 
     Teacher and Teacher's Aide Shortages.--Upon the establishment 
     of the placement program authorized by subsection (b), the 
     Secretary shall--
       (1) conduct a survey of States to identify those States 
     that have alternative certification or licensure requirements 
     for teachers;
       (2) periodically request information from States identified 
     under paragraph (1) to identify in these States those local 
     educational agencies that--
       (A) are receiving grants under part A of title I of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6311 et seq.) as a result of having within their 
     jurisdictions concentrations of children from low-income 
     families; and
       (B) are also experiencing a shortage of qualified teachers, 
     in particular a shortage of science, mathematics, computer 
     science, or engineering teachers; and
       (3) periodically request information from all States to 
     identify local educational agencies that--
       (A) are receiving grants under part A of title I of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6311 et seq.) as a result of having within their 
     jurisdictions concentrations of children from low-income 
     families; and
       (B) are experiencing a shortage of teachers' aides.
       (d) Selection of Eligible Individuals.--
       (1) In general.--Selection of eligible individuals to 
     participate in the placement program authorized by subsection 
     (b) shall be made on the basis of applications submitted to a 
     State. An application shall be in such form and contain such 
     information as the State may require.
       (2) Priority.--In selecting eligible individuals to receive 
     assistance for placement as elementary school or secondary 
     school teachers, the State shall give priority to eligible 
     individuals who--
       (A) have substantial, demonstrated career experience in 
     science, mathematics, computer science, or engineering and 
     agree to seek employment as science, mathematics, computer 
     science, or engineering teachers in elementary schools or 
     secondary schools; or
       (B) have substantial, demonstrated career experience in 
     another subject area identified by the State as important for 
     national educational objectives and agree to seek employment 
     in that subject area in elementary schools or secondary 
     schools.
       (e) Agreement.--An eligible individual selected to 
     participate in the placement program authorized by subsection 
     (b) shall be required to enter into an agreement with the 
     State, in which the eligible individual agrees--
       (1) to obtain, within such time as the State may require, 
     certification or licensure as an elementary school or 
     secondary school teacher or the necessary credentials to 
     serve as a teacher's aide in an elementary school or 
     secondary school; and
       (2) to accept--
       (A) in the case of an eligible individual selected for 
     assistance for placement as a teacher, an offer of full-time 
     employment as an elementary school or secondary school 
     teacher for not less than two school years with a local 
     educational agency identified under subsection (c)(2), to 
     begin the school year after obtaining that certification or 
     licensure; or
       (B) in the case of an eligible individual selected for 
     assistance for placement as a teacher's aide, an offer of 
     full-time employment as a teacher's aide in an elementary 
     school or secondary school for not less than 2 school years 
     with a local educational agency identified under subsection 
     (c)(3), to begin the school year after obtaining the 
     necessary credentials.
       (f) Stipend for Participants.--
       (1) In general.--The State shall pay to an eligible 
     individual participating in the placement program a stipend 
     in an amount equal to the lesser of--
       (A) $5,000; or
       (B) the total costs of the type described in paragraphs 
     (1), (2), (3), (8), and (9) of section 472 of the Higher 
     Education Act of 1965 (20 U.S.C. 1087ll) incurred by the 
     eligible individual while obtaining teacher certification or 
     licensure or the necessary credentials to serve as a 
     teacher's aide and employment as an elementary school or 
     secondary school teacher or teacher aide.
       (2) Relation to other assistance.--A stipend paid under 
     paragraph (1) shall be taken into account in determining the 
     eligibility of the eligible individual for Federal student 
     financial assistance provided under title IV of the Higher 
     Education Act of 1965 (20 U.S.C. 1070 et seq.).
       (g) Grants To Facilitate Placement.--
       (1) Teachers.--In the case of an eligible individual in the 
     placement program obtaining teacher certification or 
     licensure, the State may offer to enter into an agreement 
     under this subsection with the first local educational agency 
     identified under subsection (b)(2) that employs the eligible 
     individual as a full-time elementary school or secondary 
     school teacher after the eligible individual obtains teacher 
     certification or licensure.
       (2) Teacher's aides.--In the case of an eligible individual 
     in the program obtaining credentials to serve as a teacher's 
     aide, the State may offer to enter into an agreement under 
     this subsection with the first local educational agency 
     identified under subsection (b)(3) that employs the 
     participant as a full-time teacher's aide.
       (3) Agreements contracts.--Under an agreement referred to 
     in paragraph (1) or (2)--
       (A) the local educational agency shall agree to employ the 
     eligible individual full time for not less than 2 consecutive 
     school years (at a basic salary to be certified to the State) 
     in a school of the local educational agency that--
       (i) serves a concentration of children from low-income 
     families; and
       (ii) has an exceptional need for eligible individuals; and
       (B) the State shall agree to pay to the local educational 
     agency for each eligible individual, from amounts provided 
     under this section, $5,000 per year for a maximum of 2 years.
       (h) Reimbursement Under Certain Circumstances.--
       (1) In general.--If an eligible individual in the placement 
     program fails to obtain teacher certification or licensure, 
     employment as an elementary school or secondary school 
     teacher, or employment as a teacher's aide as required under 
     the agreement or voluntarily leaves, or is terminated for 
     cause, from the employment during the 2 years of required 
     service, the eligible individual shall be required to 
     reimburse the State for any stipend paid to the eligible 
     individual under subsection (f)(1) in an amount that bears 
     the same ratio to the amount of the stipend as the unserved 
     portion of required service bears to the 2 years of required 
     service. A State shall forward the proceeds of any 
     reimbursement received under this paragraph to the Secretary.
       (2) Obligation to reimburse.--The obligation to reimburse 
     the State under this subsection is, for all purposes, a debt 
     owing the United States. A discharge in bankruptcy under 
     title 11 shall not release a participant from the obligation 
     to reimburse the State. Any amount owed by an eligible 
     individual under paragraph (1) shall bear interest at the

[[Page 2039]]

     rate equal to the highest rate being paid by the United 
     States on the day on which the reimbursement is determined to 
     be due for securities having maturities of 90 days or less 
     and shall accrue from the day on which the eligible 
     individual is first notified of the amount due.
       (i) Exceptions to Reimbursement Provisions.--
       (1) In general.--An eligible individual in the placement 
     program shall not be considered to be in violation of an 
     agreement entered into under subsection (e) during any period 
     in which the participant--
       (A) is pursuing a full-time course of study related to the 
     field of teaching at an institution of higher education;
       (B) is serving on active duty as a member of the Armed 
     Forces;
       (C) is temporarily totally disabled for a period of time 
     not to exceed 3 years as established by sworn affidavit of a 
     qualified physician;
       (D) is unable to secure employment for a period not to 
     exceed 12 months by reason of the care required by a spouse 
     who is disabled;
       (E) is seeking and unable to find full-time employment as a 
     teacher or teacher's aide in an elementary school or 
     secondary school for a single period not to exceed 27 months; 
     or
       (F) satisfies the provisions of additional reimbursement 
     exceptions that may be prescribed by the Secretary.
       (2) Forgiveness.--An eligible individual shall be excused 
     from reimbursement under subsection (h) if the eligible 
     individual becomes permanently totally disabled as 
     established by sworn affidavit of a qualified physician. The 
     Secretary may also waive reimbursement in cases of extreme 
     hardship to the participant, as determined by the Secretary.
                                 ______
                                 

                       GRAHAM AMENDMENT NO. 2870

  Mr. GRAHAM proposed an amendment to amendment No. 2869 proposed by 
Mr. Roth to the bill, S. 1134, supra; as follows:

       At the end of the amendment add the following:

                      TITLE IV--REVENUE PROVISIONS

     SEC. 401. MODIFICATION TO FOREIGN TAX CREDIT CARRYBACK AND 
                   CARRYOVER PERIODS.

       (a) In General.--Section 904(c) (relating to limitation on 
     credit) is amended--
       (1) by striking ``in the second preceding taxable year,'', 
     and
       (2) by striking ``or fifth'' and inserting ``fifth, sixth, 
     or seventh''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to credits arising in taxable years beginning 
     after December 31, 2001.

     SEC. 402. LIMITATION ON USE OF NON-ACCRUAL EXPERIENCE METHOD 
                   OF ACCOUNTING.

       (a) In General.--Section 448(d)(5) (relating to special 
     rule for services) is amended--
       (1) by inserting ``in fields described in paragraph 
     (2)(A)'' after ``services by such person'', and
       (2) by inserting ``certain personal'' before ``services'' 
     in the heading.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years ending after the date of the enactment 
     of this Act.
       (2) Change in method of accounting.--In the case of any 
     taxpayer required by the amendments made by this section to 
     change its method of accounting for its first taxable year 
     ending after the date of the enactment of this Act--
       (A) such change shall be treated as initiated by the 
     taxpayer,
       (B) such change shall be treated as made with the consent 
     of the Secretary of the Treasury, and
       (C) the net amount of the adjustments required to be taken 
     into account by the taxpayer under section 481 of the 
     Internal Revenue Code of 1986 shall be taken into account 
     over a period (not greater than 4 taxable years) beginning 
     with such first taxable year.

     SEC. 403. EXTENSION OF INTERNAL REVENUE SERVICE USER FEES.

       (a) In General.--Chapter 77 (relating to miscellaneous 
     provisions) is amended by adding at the end the following new 
     section:

     ``SEC. 7527. INTERNAL REVENUE SERVICE USER FEES.

       ``(a) General Rule.--The Secretary shall establish a 
     program requiring the payment of user fees for--
       ``(1) requests to the Internal Revenue Service for ruling 
     letters, opinion letters, and determination letters, and
       ``(2) other similar requests.
       ``(b) Program Criteria.--
       ``(1) In general.--The fees charged under the program 
     required by subsection (a)--
       ``(A) shall vary according to categories (or subcategories) 
     established by the Secretary,
       ``(B) shall be determined after taking into account the 
     average time for (and difficulty of) complying with requests 
     in each category (and subcategory), and
       ``(C) shall be payable in advance.
       ``(2) Exemptions, etc.--The Secretary shall provide for 
     such exemptions (and reduced fees) under such program as the 
     Secretary determines to be appropriate.
       ``(3) Average fee requirement.--The average fee charged 
     under the program required by subsection (a) shall not be 
     less than the amount determined under the following table:

Category                                                    Average Fee
  Employee plan ruling and opinion............................$250 ....

  Exempt organization ruling..................................$350 ....

  Employee plan determination.................................$300 ....

  Exempt organization determination...........................$275 ....

  Chief counsel ruling.........................................$200....

       ``(c) Termination.--No fee shall be imposed under this 
     section with respect to requests made after September 30, 
     2009.''
       (b) Conforming Amendments.--
       (1) The table of sections for chapter 77 is amended by 
     adding at the end the following new item:

``Sec. 7527. Internal Revenue Service user fees.''

       (2) Section 10511 of the Revenue Act of 1987 is repealed.
       (c) Effective Date.--The amendments made by this section 
     shall apply to requests made after the date of the enactment 
     of this Act.

     SEC. 404. TRANSFER OF EXCESS DEFINED BENEFIT PLAN ASSETS FOR 
                   RETIREE HEALTH BENEFITS.

       (a) Extension.--
       (1) In general.--Section 420(b)(5) (relating to expiration) 
     is amended by striking ``in any taxable year beginning after 
     December 31, 2000'' and inserting ``made after September 30, 
     2009''.
       (2) Conforming amendments.--
       (A) Section 101(e)(3) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1021(e)(3)) is amended by 
     striking ``1995'' and inserting ``2001''.
       (B) Section 403(c)(1) of such Act (29 U.S.C. 1103(c)(1)) is 
     amended by striking ``1995'' and inserting ``2001''.
       (C) Paragraph (13) of section 408(b) of such Act (29 U.S.C. 
     1108(b)(13)) is amended--
       (i) by striking ``in a taxable year beginning before 
     January 1, 2001'' and inserting ``made before October 1, 
     2009'', and
       (ii) by striking ``1995'' and inserting ``2001''.
       (b) Application of Minimum Cost Requirements.--
       (1) In general.--Section 420(c)(3) is amended to read as 
     follows:
       ``(3) Minimum cost requirements.--
       ``(A) In general.--The requirements of this paragraph are 
     met if each group health plan or arrangement under which 
     applicable health benefits are provided provides that the 
     applicable employer cost for each taxable year during the 
     cost maintenance period shall not be less than the higher of 
     the applicable employer costs for each of the 2 taxable years 
     immediately preceding the taxable year of the qualified 
     transfer.
       ``(B) Applicable employer cost.--For purposes of this 
     paragraph, the term `applicable employer cost' means, with 
     respect to any taxable year, the amount determined by 
     dividing--
       ``(i) the qualified current retiree health liabilities of 
     the employer for such taxable year determined--

       ``(I) without regard to any reduction under subsection 
     (e)(1)(B), and
       ``(II) in the case of a taxable year in which there was no 
     qualified transfer, in the same manner as if there had been 
     such a transfer at the end of the taxable year, by

       ``(ii) the number of individuals to whom coverage for 
     applicable health benefits was provided during such taxable 
     year.
       ``(C) Election to compute cost separately.--An employer may 
     elect to have this paragraph applied separately with respect 
     to individuals eligible for benefits under title XVIII of the 
     Social Security Act at any time during the taxable year and 
     with respect to individuals not so eligible.
       ``(D) Cost maintenance period.--For purposes of this 
     paragraph, the term `cost maintenance period' means the 
     period of 5 taxable years beginning with the taxable year in 
     which the qualified transfer occurs. If a taxable year is in 
     2 or more overlapping cost maintenance periods, this 
     paragraph shall be applied by taking into account the highest 
     applicable employer cost required to be provided under 
     subparagraph (A) for such taxable year.''
       (2) Conforming amendments.--
       (A) Section 420(b)(1)(C)(iii) is amended by striking 
     ``benefits'' and inserting ``cost''.
       (B) Section 420(e)(1)(D) is amended by striking ``and shall 
     not be subject to the minimum benefit requirements of 
     subsection (c)(3)'' and inserting ``or in calculating 
     applicable employer cost under subsection (c)(3)(B)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to qualified transfers occurring after December 
     31, 2000, and before October 1, 2009.

     SEC. 405. LIMITATIONS ON WELFARE BENEFIT FUNDS OF 10 OR MORE 
                   EMPLOYER PLANS.

       (a) Benefits to Which Exception Applies.--Section 
     419A(f)(6)(A) (relating to exception for 10 or more employer 
     plans) is amended to read as follows:
       ``(A) In general.--This subpart shall not apply to a 
     welfare benefit fund which is part of a 10 or more employer 
     plan if the only

[[Page 2040]]

     benefits provided through the fund are 1 or more of the 
     following:
       ``(i) Medical benefits.
       ``(ii) Disability benefits.
       ``(iii) Group term life insurance benefits which do not 
     provide for any cash surrender value or other money that can 
     be paid, assigned, borrowed, or pledged for collateral for a 
     loan.
     The preceding sentence shall not apply to any plan which 
     maintains experience-rating arrangements with respect to 
     individual employers.''
       (b) Limitation on Use of Amounts for Other Purposes.--
     Section 4976(b) (defining disqualified benefit) is amended by 
     adding at the end the following new paragraph:
       ``(5) Special rule for 10 or more employer plans exempted 
     from prefunding limits.--For purposes of paragraph (1)(C), 
     if--
       ``(A) subpart D of part I of subchapter D of chapter 1 does 
     not apply by reason of section 419A(f)(6) to contributions to 
     provide 1 or more welfare benefits through a welfare benefit 
     fund under a 10 or more employer plan, and
       ``(B) any portion of the welfare benefit fund attributable 
     to such contributions is used for a purpose other than that 
     for which the contributions were made,
     then such portion shall be treated as reverting to the 
     benefit of the employers maintaining the fund.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions paid or accrued after the date 
     of the enactment of this Act, in taxable years ending after 
     such date.
                                 ______
                                 

                       DORGAN AMENDMENT NO. 2871

  Mr. DORGAN proposed an amendment to the bill S. 1134, supra; as 
follows:

       On page 2 between lines 2 and 3, add the following:

               TITLE __--STANDARDIZED SCHOOL REPORT CARDS

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``Standardized School Report 
     Card Act''.

     SEC. __02. FINDINGS.

       Congress makes the following findings:
       (1) According to the report ``Quality Counts 99'', by 
     Education Week, 36 States require the publishing of annual 
     report cards on individual schools, but the content of the 
     report cards varies widely.
       (2) The content of most of the report cards described in 
     paragraph (1) does not provide parents with the information 
     the parents need to measure how their school or State is 
     doing compared with other schools and States.
       (3) Ninety percent of taxpayers believe that published 
     information about individual schools would motivate educators 
     to work harder to improve the schools' performance.
       (4) More than 60 percent of parents and 70 percent of 
     taxpayers have not seen an individual report card for their 
     area school.
       (5) Dissemination of understandable information about 
     schools can be an important tool for parents and taxpayers to 
     measure the quality of the schools and to hold the schools 
     accountable for improving performance.

     SEC. __03. PURPOSE.

       The purpose of this title is to provide parents, taxpayers, 
     and educators with useful, understandable school report 
     cards.

     SEC. __04. REPORT CARDS.

       (a) State Report Cards.--Each State educational agency 
     receiving assistance under the Elementary and Secondary 
     Education Act of 1965 shall produce and widely disseminate an 
     annual report card for parents, the general public, teachers 
     and the Secretary of Education, in easily understandable 
     language, with respect to elementary and secondary education 
     in the State. The report card shall contain information 
     regarding--
       (1) student performance in language arts and mathematics, 
     plus any other subject areas in which the State requires 
     assessments, including comparisons with students from 
     different school districts within the State, and, to the 
     extent possible, comparisons with students throughout the 
     Nation;
       (2) attendance and graduation rates;
       (3) professional qualifications of teachers in the State, 
     the number of teachers teaching out of field, and the number 
     of teachers with emergency certification;
       (4) average class size in the State;
       (5) school safety, including the safety of school 
     facilities, incidents of school violence and drug and alcohol 
     abuse, and the number of instances in which a student was 
     determined to have brought a firearm to school under the 
     State law described in the Gun-Free Schools Act of 1994;
       (6) to the extent practicable, parental involvement, as 
     measured by the extent of parental participation in school 
     parental involvement policies described in section 1118(b) of 
     the Elementary and Secondary Education Act of 1965;
       (7) the annual school dropout rate, as calculated by 
     procedures conforming with the National Center for Education 
     Statistics Common Core of Data;
       (8) student access to technology, including the number of 
     computers for educational purposes, the number of computers 
     per classroom, and the number of computers connected to the 
     Internet; and
       (9) other indicators of school performance and quality.
       (b) School Report Cards.--Each school receiving assistance 
     under the Elementary and Secondary Education Act of 1965, or 
     the local educational agency serving that school, shall 
     produce and widely disseminate an annual report card for 
     parents, the general public, teachers and the State 
     educational agency, in easily understandable language, with 
     respect to elementary or secondary education, as appropriate, 
     in the school. The report card shall contain information 
     regarding--
       (1) student performance in the school in language arts and 
     mathematics, plus any other subject areas in which the State 
     requires assessments, including comparisons with other 
     students within the school district, in the State, and, to 
     the extent possible, in the Nation;
       (2) attendance and graduation rates;
       (3) professional qualifications of the school's teachers, 
     the number of teachers teaching out of field, and the number 
     of teachers with emergency certification;
       (4) average class size in the school;
       (5) school safety, including the safety of the school 
     facility, incidents of school violence and drug and alcohol 
     abuse, and the number of instances in which a student was 
     determined to have brought a firearm to school under the 
     State law described in the Gun-Free Schools Act of 1994;
       (6) parental involvement, as measured by the extent of 
     parental participation in school parental involvement 
     policies described in section 1118(b) of the Elementary and 
     Secondary Education Act of 1965;
       (7) the annual school dropout rate, as calculated by 
     procedures conforming with the National Center for Education 
     Statistics Common Core of Data;
       (8) student access to technology, including the number of 
     computers for educational purposes, the number of computers 
     per classroom, and the number of computers connected to the 
     Internet; and
       (9) other indicators of school performance and quality.
       (c) Model School Report Cards.--The Secretary of Education 
     shall use funds made available to the Office of Educational 
     Research and Improvement to develop a model school report 
     card for dissemination, upon request, to a school, local 
     educational agency, or State educational agency.
       (d) Disaggregation of Data.--Each State educational agency 
     or school producing an annual report card under this section 
     shall disaggregate the student performance data reported 
     under section __4(a)(1) or __4(b)(1), as appropriate, in the 
     same manner as results are disaggregated under section 
     1111(b)(3)(I) of the Elementary and Secondary Education Act 
     of 1965.
                                 ______
                                 

                       KENNEDY AMENDMENT NO. 2872

  Mr. Kennedy proposed an amendment to the bill, S. 1134, supra; as 
follows:

       Strike section 101 and insert the following:

     SEC. 101. TEACHER QUALITY.

       (a) In General.--Title II of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6601 et seq.) is amended by 
     striking the title heading and all that follows through the 
     end of part B and inserting the following:

            ``TITLE II--QUALIFIED TEACHER IN EVERY CLASSROOM

                       ``PART A--TEACHER QUALITY

     ``SEC. 2001. PURPOSES.

       ``The purposes of this part are the following:
       ``(1) To improve student achievement in order to help every 
     student meet State content and student performance standards.
       ``(2) To--
       ``(A) enable States, local educational agencies, and 
     schools to improve the quality and success of the teaching 
     force by providing all teachers, including beginning and 
     veteran teachers, with the support those teachers need to 
     succeed and stay in teaching, by providing professional 
     development and mentoring programs for teachers, by offering 
     incentives for additional qualified individuals to go into 
     teaching, by reducing out-of-field placement of teachers, and 
     by reducing the number of teachers with emergency 
     credentials; and
       ``(B) hold the States, agencies, and schools accountable 
     for such improvements.
       ``(3) To support State and local efforts to recruit 
     qualified teachers to address teacher shortages, particularly 
     in communities with the greatest need.

     ``SEC. 2002. DEFINITIONS.

       ``In this part:
       ``(1) Beginning teacher.--The term `beginning teacher' 
     means a teacher who has taught for 3 years or less.
       ``(2) Core academic subjects.--The term `core academic 
     subjects' means--
       ``(A) mathematics;
       ``(B) science;
       ``(C) reading (or language arts) and English;
       ``(D) social studies (consisting of history, civics, 
     government, geography, and economics);

[[Page 2041]]

       ``(E) foreign languages; and
       ``(F) fine arts (consisting of music, dance, drama, and the 
     visual arts).
       ``(3) High-poverty.--The term `high-poverty', used with 
     respect to a school, means a school that serves a high number 
     or percentage of children from families with incomes below 
     the poverty line, as determined by the State in which the 
     school is located.
       ``(4) High-poverty local educational agency.--The term 
     `high-poverty local educational agency' means a local 
     educational agency for which the number of children served by 
     the agency who are age 5 through 17, and from families with 
     incomes below the poverty line--
       ``(A) is not less than 20 percent of the number of all 
     children served by the agency; or
       ``(B) is more than 10,000.
       ``(5) Low-performing school.--The term `low-performing 
     school' means--
       ``(A) a school identified by a local educational agency for 
     school improvement under section 1116(c); or
       ``(B) a school in which the great majority of students, as 
     determined by the State in which the school is located, fail 
     to meet State student performance standards based on 
     assessments the local educational agency is using under part 
     A of title I.
       ``(6) Mentoring.--The term `mentoring' means activities 
     described in paragraphs (3) and (4) of section 2017(a).
       ``(7) Mentor teacher.--The term `mentor teacher' means a 
     teacher who--
       ``(A) is a highly competent classroom teacher who is 
     formally selected and trained to work effectively with 
     beginning teachers (including corps members described in 
     section 2018);
       ``(B) is certified or licensed, is full-time, and is 
     assigned and qualified to teach in the content area or grade 
     level in which a beginning teacher (including a corps member 
     described in section 2018), to whom the teacher provides 
     mentoring, intends to teach;
       ``(C) has been consistently effective in helping diverse 
     groups of students make substantial achievement gains; and
       ``(D) has been selected to provide mentoring through a peer 
     review process.
       ``(8) Poverty line.--The term `poverty line' means the 
     income official poverty line (as defined by the Office of 
     Management and Budget, and revised annually in accordance 
     with section 673(2) of the Community Services Block Grant Act 
     (42 U.S.C. 9902(2))) applicable to a family of the size 
     involved.
       ``(9) Professional development.--The term `professional 
     development' means activities described in paragraphs (1) and 
     (2) of section 2017(a).
       ``(10) Recruitment activities.--The term `recruitment 
     activities' means activities carried out through a teacher 
     corps program, as described in section 2018.
       ``(11) Recruitment partnership.--The term `recruitment 
     partnership' means a partnership described in section 
     2015(b)(2).

     ``SEC. 2003. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part $240,000,000 for each of fiscal years 2001 through 2005, 
     of which--
       ``(1) $207,600,000 shall be made available to carry out 
     subpart 1; and
       ``(2) $32,400,000 shall be made available to carry out 
     subparts 2, 3, and 4, of which--
       ``(A) $25,000,000 shall be made available for fiscal year 
     2001, and such sums as may be necessary shall be made 
     available for each of fiscal years 2002 through 2005, to 
     carry out subpart 3; and
       ``(B) $75,000,000 shall be made available for fiscal year 
     2001, and such sums as may be necessary shall be made 
     available for each of fiscal years 2002 through 2005, to 
     carry out subpart 4.

      ``Subpart 1--Grants to States and Local Educational Agencies

                   ``Chapter 1--Grants and Activities

     ``SEC. 2011. ALLOTMENTS TO STATES.

       ``(a) In General.--The Secretary is authorized to make 
     grants to eligible State educational agencies for the 
     improvement of teaching and learning through sustained and 
     intensive high-quality professional development, mentoring, 
     and recruitment activities at the State and local levels. 
     Each grant shall consist of the allotment determined for the 
     State under subsection (b).
       ``(b) Determination of Amount of Allotment.--
       ``(1) Reservation of funds.--
       ``(A) In general.--From the total amount made available to 
     carry out this subpart under section 2003(1) for any fiscal 
     year, the Secretary shall reserve--
       ``(i) \1/2\ of 1 percent for allotments for the outlying 
     areas to be distributed among those outlying areas on the 
     basis of their relative need, as determined by the Secretary, 
     for professional development and mentoring and recruitment 
     activities carried out in accordance with the purposes of 
     this part; and
       ``(ii) \1/2\ of 1 percent for the Secretary of the Interior 
     for programs carried out in accordance with the purposes of 
     this part to provide professional development and mentoring 
     and recruitment activities for teachers and other staff in 
     schools operated or funded by the Bureau of Indian Affairs.
       ``(B) Limitation.--Notwithstanding subparagraph (A), the 
     Secretary shall not reserve, for either the outlying areas 
     under subparagraph (A)(i) or the schools operated or funded 
     by the Bureau of Indian Affairs under subparagraph (A)(ii), 
     more than the amount reserved for those areas or schools for 
     fiscal year 2000 under the authority described in paragraph 
     (2)(A)(i).
       ``(2) State allotments.--
       ``(A) Hold harmless.--
       ``(i) In general.--Subject to subparagraph (B), from the 
     total amount made available to carry out this subpart for any 
     fiscal year and not reserved under paragraph (1), the 
     Secretary shall allot to each of the 50 States, the District 
     of Columbia, and the Commonwealth of Puerto Rico an amount 
     equal to the amount that the State received for fiscal year 
     2000 under section 2202(b) of this Act (as in effect on the 
     day before the date of enactment of the Affordable Education 
     Act of 1999).
       ``(ii) Ratable reduction.--If the total amount made 
     available to carry out this subpart for any fiscal year and 
     not reserved under paragraph (1) is insufficient to pay the 
     full amounts that all States are eligible to receive under 
     clause (i) for any fiscal year, the Secretary shall ratably 
     reduce such amounts for such fiscal year.
       ``(B) Allotment of additional funds.--
       ``(i) In general.--Subject to clause (ii), for any fiscal 
     year for which the total amount made available to carry out 
     this subpart and not reserved under paragraph (1) exceeds the 
     total amount made available to the 50 States, the District of 
     Columbia, and the Commonwealth of Puerto Rico for fiscal year 
     2000 under the authority described in subparagraph (A)(i), 
     the Secretary shall allot to each of those States the sum 
     of--

       ``(I) an amount that bears the same relationship to 50 
     percent of the excess amount as the number of individuals age 
     5 through 17 in the State, as determined by the Secretary on 
     the basis of the most recent satisfactory data, bears to the 
     number of those individuals in all such States, as so 
     determined; and
       ``(II) an amount that bears the same relationship to 50 
     percent of the excess amount as the number of individuals age 
     5 through 17 from families with incomes below the poverty 
     line in the State, as determined by the Secretary on the 
     basis of the most recent satisfactory data, bears to the 
     number of those individuals in all such States, as so 
     determined.

       ``(ii) Exception.--No State receiving an allotment under 
     clause (i) may receive less than \1/2\ of 1 percent of the 
     total excess amount allotted under clause (i) for a fiscal 
     year.
       ``(3) Reallotment.--If any State described in paragraph (2) 
     does not apply for an allotment under paragraph (2) for any 
     fiscal year, the Secretary shall reallot such amount to the 
     remaining such States in accordance with paragraph (2).

     ``SEC. 2012. STATE APPLICATIONS.

       ``(a) Applications Required.--
       ``(1) In general.--Each State desiring to receive a grant 
     under this subpart shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may reasonably require.
       ``(2) Development.--The State educational agency shall 
     develop the State application--
       ``(A) in consultation with the State agency for higher 
     education, community-based and other nonprofit organizations, 
     and institutions of higher education; and
       ``(B) with the extensive participation of teachers, teacher 
     educators, school administrators, and content specialists.
       ``(b) Contents.--Each such application shall include--
       ``(1) a description of the State's teacher shortages 
     relating to high-need school districts and high-need academic 
     subjects (as such districts or subjects are determined by the 
     State);
       ``(2) an assessment, developed with the involvement of 
     teachers, of the need for professional development for 
     veteran teachers in the State and the need for strong 
     induction programs for beginning teachers;
       ``(3) a description of how the State educational agency 
     will use funds made available under this part to improve the 
     quality of the State's teaching force and meet the 
     requirements of this section;
       ``(4) a description of how the State educational agency 
     will align activities assisted under this subpart with State 
     content and student performance standards, and State 
     assessments;
       ``(5) a description of how the State educational agency 
     will--
       ``(A) reduce out-of-field placement of teachers; and
       ``(B) reduce the number of teachers hired with emergency 
     certification;
       ``(6) a description of how the State educational agency 
     will coordinate activities funded under this subpart with 
     professional development and mentoring and recruitment 
     activities that are supported with funds from other relevant 
     Federal and non-Federal programs;
       ``(7) a plan, developed with the extensive participation of 
     teachers, for addressing long-term teacher recruitment, 
     retention, and professional development and mentoring needs, 
     which may include--
       ``(A) providing technical assistance to help school 
     districts reform hiring practices to support strong teacher 
     recruitment and retention; or
       ``(B) establishing State or regional partnerships to 
     address teacher shortages;

[[Page 2042]]

       ``(8) a description of how the State educational agency 
     will assist local educational agencies in implementing 
     effective and sustained professional development and 
     mentoring activities and high-quality recruitment activities 
     under this part;
       ``(9) a description of how the State educational agency 
     will work with recipients of grants awarded for recruitment 
     activities under section 2015(b) to ensure that recruits who 
     successfully complete a teacher corps program will be 
     certified or licensed; and
       ``(10) the assurances and description referred to in 
     section 2021.
       ``(c) Approval.--The Secretary shall, using a peer-review 
     process, approve a State application if the application meets 
     the requirements of this section and holds reasonable promise 
     of achieving the purposes of this part.

     ``SEC. 2013. STATE USE OF FUNDS.

       ``(a) In General.--Of the funds allotted to a State under 
     section 2011 for a fiscal year--
       ``(1) not more than 10 percent shall be used by the State 
     educational agency to carry out State activities described in 
     section 2014, or for the administration of this subpart 
     (other than the administration of section 2019 but including 
     the administration of State activities under chapter 2), 
     except that not more than 3 percent of the allotted funds may 
     be used for the administration of this subpart;
       ``(2) 56 percent shall be used by the State educational 
     agency to provide grants to local educational agencies under 
     section 2015(a) for professional development and mentoring;
       ``(3) 30 percent shall be used by the State educational 
     agency to provide grants to recruitment partnerships under 
     section 2015(b) for recruitment activities; and
       ``(4) 4 percent (or 4 percent of the amount the State would 
     have been allotted if the appropriation for this subpart were 
     $346,000,000, whichever is greater) shall be used by the 
     State agency for higher education to provide grants to 
     recruitment partnerships under section 2019.
       ``(b) Priority for Professional Development and Mentoring 
     in Mathematics and Science.--
       ``(1) Priority.--
       ``(A) Appropriations of not more than $300,000,000.--For 
     any fiscal year for which the appropriation for this subpart 
     is $300,000,000 or less, each State educational agency that 
     receives funds under this subpart, working jointly with the 
     State agency for higher education, shall ensure that all 
     funds received under this subpart are used for--
       ``(i) professional development and mentoring in mathematics 
     and science that is aligned with State content and student 
     performance standards; and
       ``(ii) recruitment activities involving mathematics and 
     science teachers.
       ``(B) Appropriation of more than $300,000,000.--For any 
     fiscal year for which the appropriation for this subpart is 
     greater than $300,000,000, the State educational agency and 
     the State agency for higher education shall jointly ensure 
     that the total amount of funds that the agencies receive 
     under this subpart and that the agencies use for activities 
     described in subparagraph (A) is at least as great as the 
     allotment the State would have received if that appropriation 
     had been $300,000,000.
       ``(2) Interdisciplinary activities.--A State may use funds 
     received under this subpart for activities that focus on more 
     than 1 core academic subject, and apply the funds toward 
     meeting the requirements of paragraph (1), if the activities 
     include a strong focus on improving instruction in 
     mathematics or science.
       ``(3) Additional funds.--Each State educational agency that 
     receives funds under this subpart and the State agency for 
     higher education shall jointly ensure that any portion of the 
     funds that exceeds the amount required by paragraph (1) to be 
     spent on activities described in paragraph (1)(A) is used to 
     provide--
       ``(A) professional development and mentoring in 1 or more 
     of the core academic subjects that is aligned with State 
     content and student performance standards; and
       ``(B) recruitment activities involving teachers of 1 or 
     more of the core academic subjects.

     ``SEC. 2014. STATE LEVEL ACTIVITIES.

       ``(a) Activities.--Each State educational agency that 
     receives a grant described in section 2011 shall use the 
     funds made available under section 2013(a)(1) to carry out 
     statewide strategies and activities to improve teacher 
     quality, including--
       ``(1) establishing, expanding, or improving alternative 
     routes to State certification or licensing of teachers, for 
     highly qualified individuals with a baccalaureate degree, 
     mid-career professionals from other occupations, or 
     paraprofessionals, that are at least as rigorous as the 
     State's standards for initial certification or licensing of 
     teachers;
       ``(2) developing or improving systems of performance 
     measures to evaluate the effectiveness of professional 
     development and mentoring and recruitment activities in 
     improving teacher quality, skills, and content knowledge, and 
     increasing student academic achievement and student 
     performance;
       ``(3) developing or improving systems to evaluate the 
     impact of teachers on student academic achievement and 
     student performance;
       ``(4) funding projects to promote reciprocity of teacher 
     certification or licensure between or among States;
       ``(5) providing assistance to local educational agencies to 
     reduce out-of-field placements and the use of emergency 
     credentials;
       ``(6) supporting certification by the National Board for 
     Professional Teaching Standards of teachers who are teaching 
     or will teach in high-poverty schools;
       ``(7) providing assistance to local educational agencies in 
     implementing effective programs of recruitment activities, 
     and professional development and mentoring, including 
     supporting efforts to encourage and train teachers to become 
     mentor teachers;
       ``(8) increasing the rigor and quality of State 
     certification and licensure tests for individuals entering 
     the field of teaching, including subject matter tests for 
     secondary school teachers; and
       ``(9) implementing teacher recognition programs.
       ``(b) Coordination.--A State that receives a grant to carry 
     out this subpart and a grant under section 202 of the Higher 
     Education Act of 1965 shall coordinate the activities carried 
     out under this section and the activities carried out under 
     that section 202.

     ``SEC. 2015. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

       ``(a) Grants for Professional Development and Mentoring 
     Activities.--
       ``(1) In general.--The State educational agency of a State 
     that receives a grant described in section 2011 shall use the 
     funds made available under section 2013(a)(2) to make grants 
     to eligible local educational agencies, from allocations made 
     under paragraph (2), to carry out the activities described in 
     section 2017(a).
       ``(2) Allocations.--The State educational agency shall 
     allocate to each eligible local educational agency the sum 
     of--
       ``(A) an amount that bears the same relationship to 25 
     percent of the funds as the number of individuals enrolled in 
     public and private nonprofit elementary schools and secondary 
     schools in the geographic area served by the agency bears to 
     the number of those individuals in the geographic areas 
     served by all the local educational agencies in the State; 
     and
       ``(B) an amount that bears the same relationship to 75 
     percent of the funds as the number of individuals age 5 
     through 17 from families with incomes below the poverty line, 
     in the geographic area served by the agency, as determined by 
     the Secretary on the basis of the most recent satisfactory 
     data, bears to the number of those individuals in the 
     geographic areas served by all the local educational agencies 
     in the State, as so determined.
       ``(3) Eligibility.--To be eligible to receive a grant from 
     a State educational agency under this subsection, a local 
     educational agency shall serve schools that include--
       ``(A) high-poverty schools;
       ``(B) schools that need support for improving teacher 
     quality based on low achievement of students served;
       ``(C) schools that have low teacher retention rates;
       ``(D) schools that need to improve or expand the knowledge 
     and skills of new and veteran teachers in high-priority 
     content areas; or
       ``(E) schools that have high out-of-field placement rates.
       ``(4) Equitable geographic distribution.--A State 
     educational agency shall ensure an equitable distribution of 
     grants under this subsection among eligible local educational 
     agencies serving urban and rural areas.
       ``(b) Grants for Recruitment Activities.--
       ``(1) In general.--The State educational agency of a State 
     that receives a grant under section 2011 shall use the funds 
     made available under section 2013(a)(3) to make grants to 
     eligible recruitment partnerships, on a competitive basis, to 
     carry out the recruitment activities described in section 
     2017(b).
       ``(2) Eligibility.--
       ``(A) In general.--To be eligible to receive a grant from a 
     State educational agency under this subsection, a recruitment 
     partnership--
       ``(i) shall include an eligible local educational agency, 
     or a consortium of eligible local educational agencies;
       ``(ii) shall include an institution of higher education, a 
     tribal college, or a community college; and
       ``(iii) may include other members, such as a nonprofit 
     organization or professional education organization.
       ``(B) Eligible local educational agency.--In subparagraph 
     (A), the term `eligible local educational agency' means a 
     local educational agency that receives assistance under part 
     A of title I, and meets any additional eligibility criteria 
     that the appropriate State educational agency may establish.
       ``(3) Equitable geographic distribution.--A State 
     educational agency shall ensure an equitable distribution of 
     grants under this subsection among eligible recruitment 
     partnerships serving urban and rural areas.

     ``SEC. 2016. LOCAL APPLICATIONS.

       ``(a) In General.--A local educational agency or a 
     recruitment partnership seeking to receive a grant from a 
     State under section

[[Page 2043]]

     2015 to carry out activities described in section 2017 shall 
     submit an application to the State at such time, in such 
     manner, and containing such information as the State may 
     reasonably require.
       ``(b) Contents Relating to Professional Development and 
     Mentoring Activities.--If the local educational agency seeks 
     a grant under section 2015(a) to carry out activities 
     described in section 2017(a), the local application described 
     in subsection (a) shall include, at a minimum, the following:
       ``(1) A description of how the local educational agency 
     intends to use the funds provided through the grant to carry 
     out activities described in section 2017(a).
       ``(2) An assurance that the local educational agency will 
     target the funds to high-poverty schools served by the local 
     educational agency that--
       ``(A) have the lowest proportions of qualified teachers;
       ``(B) are identified for school improvement and corrective 
     action under section 1116; or
       ``(C) are identified for school improvement in accordance 
     with other measures of school quality as determined and 
     documented by the local educational agency.
       ``(3) A description of how the local educational agency 
     will coordinate professional development and mentoring 
     activities described in section 2017(a) with professional 
     development and mentoring activities provided through other 
     Federal, State, and local programs, including programs 
     authorized under--
       ``(A) titles I, III, and IV, and part A of title VII; and
       ``(B) where applicable, the Individuals with Disabilities 
     Education Act, the Carl D. Perkins Vocational and Technical 
     Education Act of 1998, and title II of the Higher Education 
     Act of 1965.
       ``(4) A description of how the local educational agency 
     will integrate funds received to carry out activities 
     described in section 2017(a) with funds received under title 
     III that are used for professional development and mentoring 
     in order to carry out professional development and mentoring 
     activities that--
       ``(A) train teachers, paraprofessionals, counselors, pupil 
     services personnel, administrators, and other school staff, 
     including school library and media specialists, in how to use 
     technology to improve learning and teaching; and
       ``(B) take into special consideration the different 
     learning needs for, and exposures to, technology for all 
     students, including females, students with disabilities, 
     students who are gifted and talented, students with limited 
     English proficiency, and students who have economic and 
     educational disadvantages.
       ``(5) A description of how the local application was 
     developed with extensive participation of teachers, 
     paraprofessionals, principals, and parents.
       ``(6) A description of how the professional development and 
     mentoring activities described in section 2017(a) will 
     address the ongoing professional development and mentoring of 
     teachers, paraprofessionals, counselors, pupil services 
     personnel, administrators, and other school staff, including 
     school library and media specialists.
       ``(7) A description of how the professional development and 
     mentoring activities described in section 2017(a) will meet 
     the requirements described in section 2017(a).
       ``(8) A description of how the local educational agency 
     will address the needs of teachers of students with 
     disabilities, students with limited English proficiency, and 
     other students with special needs.
       ``(9) A description of how the local educational agency 
     will provide training to teachers to enable the teachers to 
     work with parents, involve parents in their child's 
     education, and encourage parents to become collaborators with 
     schools in promoting their child's education.
       ``(10) The assurances and description referred to in 
     section 2023, with respect to professional development and 
     mentoring activities.
       ``(c) Development and Contents Relating to Recruitment 
     Activities.--If an eligible local educational agency (as 
     defined in section 2015(b)) seeks a grant under section 
     2015(b) to carry out activities described in section 
     2017(b)--
       ``(1) the eligible local educational agency shall enter 
     into a recruitment partnership, which shall jointly prepare 
     and submit the local application described in subsection (a); 
     and
       ``(2) at a minimum, the application shall include--
       ``(A) a description of how the recruitment partnership will 
     meet the teacher corps program requirements described in 
     section 2018;
       ``(B) a description of the individual and collective 
     responsibilities of members of the recruitment partnership in 
     meeting the requirements and goals of a teacher corps program 
     described in section 2018;
       ``(C) information demonstrating that the State agency 
     responsible for teacher licensure or certification in the 
     State in which a recruitment partnership is established 
     will--
       ``(i) ensure that a corps member who successfully completes 
     a teacher corps program will have the academic requirements 
     necessary for certification or licensure as a teacher in the 
     State;
       ``(ii) ensure that the teacher corps program provides the 
     academic credentials necessary to enable a corps member to 
     obtain permanent teacher certification or licensure; and
       ``(iii) work with the recruitment partnership to ensure the 
     partnership uses high-quality methods and establishes high-
     quality requirements concerning alternative routes to 
     certification or licensing, in order to meet State 
     requirements for certification or licensure; and
       ``(D) the assurances and description referred to in section 
     2023, with respect to recruitment activities.
       ``(d) Approval.--A State educational agency shall approve a 
     local educational agency's or recruitment partnership's 
     application under this section only if the State educational 
     agency determines that the application is of high quality and 
     holds reasonable promise of achieving the purposes of this 
     part.

     ``SEC. 2017. LOCAL ACTIVITIES.

       ``(a) Professional Development and Mentoring Activities.--
     Each local educational agency receiving a grant under section 
     2015(a) shall use the funds made available through the grant 
     to carry out activities that--
       ``(1) shall include sustained and intensive activities 
     that--
       ``(A) are an integral part of broad schoolwide and 
     districtwide educational improvement plans and enhance the 
     ability of teachers and other staff to help all students, 
     including females, students with disabilities, students who 
     are gifted and talented, students with limited English 
     proficiency, and students who have economic and educational 
     disadvantages, meet high State and local content and student 
     performance standards;
       ``(B) improve teacher knowledge of--
       ``(i) 1 or more of the core academic subjects; and
       ``(ii) effective instructional strategies, methods, and 
     skills for improving student achievement in those subjects;
       ``(C) are of high quality and sufficient duration to have a 
     positive and lasting impact on classroom instruction;
       ``(D) are based on the best available research on teaching 
     and learning;
       ``(E) include--
       ``(i) activities to replicate effective instructional 
     practices that involve collaborative groups of teachers and 
     administrators from the same school or district, such as 
     provision of dedicated time for collaborative lesson planning 
     and curriculum development meetings, consultation with 
     exemplary teachers, and provision of short-term and long-term 
     visits to classrooms and schools; and
       ``(ii) ongoing and school-based support for such 
     activities, such as support for peer review, coaching, or 
     study groups, and the provision of release time as needed for 
     the activities;
       ``(F) as a whole, are regularly evaluated for their impact 
     on increased teacher effectiveness and improved student 
     achievement, with the findings of those evaluations used to 
     improve the quality of activities described in this part;
       ``(G) include strategies for improving classroom management 
     and discipline, integrating technology into a curriculum, and 
     promoting meaningful parental involvement; and
       ``(H) to the extent practicable, the establishment of a 
     partnership with an institution of higher education, another 
     local educational agency, or another organization, for the 
     purpose of carrying out activities described in this 
     paragraph;
       ``(2) may include--
       ``(A) provision of collaborative professional development 
     experiences for veteran teachers based on the standards in 
     the core academic subjects of the National Board for 
     Professional Teaching Standards;
       ``(B) the participation of teams of teachers in summer 
     institutes and summer immersion activities that are focused 
     on preparing teachers to enable all students to meet high 
     standards in 1 or more of the core academic subjects;
       ``(C) the establishment and maintenance of local 
     professional networks that provide a forum for interaction 
     among teachers and administrators and that allow for the 
     exchange of information on advances in content knowledge and 
     teaching skills;
       ``(D) instruction in the use of data and assessments to 
     inform and improve classroom practice;
       ``(E) provision of activities to train teachers in 
     innovative instructional methodologies designed to meet the 
     diverse learning needs of individual students, including 
     methodologies that integrate academic and technical skills 
     and applied learning (such as service learning), 
     methodologies for interactive and interdisciplinary team 
     teaching, and other alternative teaching strategies, such as 
     strategies for experiential learning, career-related 
     education, and environmental education, that integrate real 
     world applications into the core academic subjects; and
       ``(F) strategies for identifying and eliminating gender and 
     racial bias in instructional materials, methods, and 
     practices;
       ``(3) shall include structured guidance and regular and 
     ongoing support for beginning teachers, to help the teachers 
     continue to

[[Page 2044]]

     improve their practice of teaching and to develop their 
     instructional skills, that--
       ``(A) are part of a multiyear, developmental induction 
     process;
       ``(B) may include coaching, classroom observation, team 
     teaching, and reduced teaching loads; and
       ``(C) involve the assistance of a mentor teacher and other 
     appropriate individuals from a school, local educational 
     agency, or institution of higher education;
       ``(4) may include the establishment of a partnership with 
     an institution of higher education, another local educational 
     agency, or another organization, for the purpose of carrying 
     out activities described in paragraph (3); and
       ``(5) shall include local activities carried out under 
     chapter 2.
       ``(b) Recruitment Activities.--Each recruitment partnership 
     receiving a grant under section 2015(b) shall use the funds 
     made available through the grant to carry out recruitment 
     activities described in section 2018.

     ``SEC. 2018. RECRUITMENT ACTIVITIES THROUGH A TEACHER CORPS 
                   PROGRAM.

       ``(a) Teacher Corps Program Requirements.--
       ``(1) Recruitment.--A recruitment partnership that receives 
     a grant under section 2015(b) shall broadly recruit and 
     screen for a teacher corps a highly qualified pool of 
     candidates who demonstrate the potential to become effective 
     teachers. Each candidate shall meet--
       ``(A) standards to ensure that--
       ``(i) each corps member possesses appropriate, high-level 
     credentials and presents the likelihood of becoming an 
     effective teacher; and
       ``(ii) each group of corps members includes people who have 
     expertise in academic subjects and otherwise meet the 
     specific needs of the district to be served; and
       ``(B) any additional standard that the recruitment 
     partnership establishes to enhance the quality and diversity 
     of candidates and to meet the academic and grade level needs 
     of the partnership.
       ``(2) Required curriculum and placement.--Members of the 
     recruitment partnership shall work together to plan and 
     develop a program that includes--
       ``(A) a curriculum that includes a preservice training 
     program (incorporating innovative approaches to preservice 
     training, such as distance learning), for a period not to 
     exceed 1 year, that provides corps members with the skills 
     and knowledge necessary to become effective teachers, by--
       ``(i) requiring completed course work in basic areas of 
     teaching, such as principles of learning and child 
     development, effective teaching strategies, assessments, and 
     classroom management, and in the pedagogy related to the 
     academic subjects in which a corps member intends to teach;
       ``(ii) providing extensive preparation in the pedagogy of 
     reading to corps members who intend to teach in the early 
     elementary grades, including preparation components that 
     focus on--

       ``(I) understanding the psychology of reading, and human 
     growth and development;
       ``(II) understanding the structure of the English language; 
     and
       ``(III) learning and applying the best teaching methods to 
     all aspects of reading instruction;

       ``(iii) providing training in the use of technology as a 
     tool to enhance a corps member's effectiveness as a teacher 
     and improve the achievement of the corps member's students; 
     and
       ``(iv) focusing on the teaching skills and knowledge that 
     corps members need to enable all students to meet the State's 
     highest challenging content and student performance 
     standards;
       ``(B) placement of a corps member with the local 
     educational agency participating in the recruitment 
     partnership, in a teaching internship that--
       ``(i) includes intensive mentoring;
       ``(ii) provides a reduced teaching load; and
       ``(iii) provides regular opportunities for the corps member 
     to co-teach with a mentor teacher, observe other teachers, 
     and be observed and coached by other teachers;
       ``(C) individualized inservice training over the course of 
     the corps member's first 2 years of full-time teaching that 
     provides--
       ``(i) high-quality professional development, coordinated 
     jointly by members of the recruitment partnership, and the 
     course work necessary to provide additional or supplementary 
     knowledge to meet the specific needs of the corps member; and
       ``(ii) ongoing mentoring by a teacher who meets the 
     criteria for a mentor teacher described in paragraph (4)(B), 
     including the requirements of section 2002(7); and
       ``(D) collaboration between the recruitment partnership, 
     and local community student or parent groups, to assist corps 
     members in enhancing their understanding of the community in 
     which the members are placed.
       ``(3) Evaluation.--A recruitment partnership shall evaluate 
     a corps member's progress in course study and classroom 
     practice at regular intervals.
       ``(4) Mentor teachers.--
       ``(A) In general.--A recruitment partnership shall develop 
     a plan for the program, which shall include strategies for 
     identifying, recruiting, training, and providing ongoing 
     support to individuals who will serve as mentor teachers to 
     corps members.
       ``(B) Mentor teacher requirements.--The plan described in 
     subparagraph (A) shall specify the criteria that the 
     recruitment partnership will use to identify and select 
     mentor teachers and, at a minimum, shall--
       ``(i) require a mentor teacher to meet the requirements of 
     section 2002(7); and
       ``(ii) require that consideration be given to a teachers 
     with national board certification.
       ``(C) Compensation.--The plan shall specify the 
     compensation--
       ``(i) for mentor teachers, including monetary compensation, 
     release time, or a reduced work load to ensure that mentor 
     teachers can provide ongoing support for corps members; and
       ``(ii) for corps members, including salary levels and the 
     stipends, if any, that will be provided during a corps 
     member's summer or preservice training.
       ``(5) Assurances.--The plan shall include assurances that--
       ``(A) a corps member will be assigned to teach only 
     academic subjects and grade levels for which the member is 
     fully qualified;
       ``(B) corps members, to the extent practicable, will be 
     placed in schools with teams of corps members; and
       ``(C) every mentor teacher will be provided sufficient time 
     to meet the needs of the corps members assigned to the mentor 
     teacher.
       ``(b) Corps Member Qualifications.--
       ``(1) Candidates intending to teach in elementary 
     schools.--At a minimum, to be accepted by a teacher corps 
     program, a candidate who intends to teach at the elementary 
     school level shall--
       ``(A) have a bachelor's degree;
       ``(B) possess an outstanding commitment to working with 
     children and youth;
       ``(C) possess a strong professional or postsecondary record 
     of achievement; and
       ``(D) pass all basic skills and subject matter tests 
     required by the State for teacher certification or licensure.
       ``(2) Candidates intending to teach in secondary schools.--
     At a minimum, to be accepted by a teacher corps program, a 
     candidate who intends to teach at the secondary school level 
     shall--
       ``(A) meet the requirements described in paragraph (1); and
       ``(B)(i) possess at least an academic major or 
     postsecondary degree in each academic subject in which the 
     candidate intends to teach; or
       ``(ii) if the candidate did not major or earn a 
     postsecondary degree in an academic subject in which the 
     candidate intends to teach, have completed a rigorous course 
     of instruction in that subject that is equivalent to having 
     majored in the subject.
       ``(3) Special rule.--Notwithstanding paragraph (2)(B), the 
     recruitment partnership may consider the candidate to be an 
     eligible corps member and accept the candidate for a teacher 
     corps program if the candidate has worked successfully and 
     directly in a field and in a position that provided the 
     candidate with direct and substantive knowledge in the 
     academic subject in which the candidate intends to teach.
       ``(c) Three-Year Commitment to Teaching in Eligible 
     Districts.--
       ``(1) In general.--In return for acceptance to a teacher 
     corps program, a corps member shall commit to 3 years of 
     full-time teaching in a school or district served by a local 
     educational agency participating in a recruitment partnership 
     receiving funds under this subpart.
       ``(2) Reimbursement.--
       ``(A) In general.--If a corps member leaves the school 
     district to which the corps member has been assigned prior to 
     the end of the 3-year period described in paragraph (1), the 
     corps member shall be required to reimburse the Secretary for 
     the amount of the Federal share of the cost of the corps 
     member's participation in the teacher corps program.
       ``(B) Partnership claims.--A recruitment partnership that 
     provides a teacher corps program to a corps member who leaves 
     the school district, as discussed in subparagraph (A), may 
     submit a claim to the corps member requiring the corps member 
     to reimburse the recruitment partnership for the amount of 
     the partnership's share of the cost described in subparagraph 
     (A).
       ``(C) Reduction.--Reimbursements required under this 
     paragraph may be reduced proportionally based on the amount 
     of time a corps member remained in the teacher corps program 
     beyond the corps member's initial 2 years of service.
       ``(D) Waiver.--The Secretary may waive reimbursements 
     required under subparagraph (A) in the case of severe 
     hardship to a corps member who leaves the school district, as 
     described in subparagraph (A).
       ``(d) Federal Share; Non-Federal Share.--
       ``(1) Payment of federal share.--The Secretary shall pay to 
     each recruitment partnership carrying out a teacher corps 
     program under this section the Federal share of the cost of 
     the activities described in the partnership's application 
     under section 2016(c).

[[Page 2045]]

       ``(2) Non-federal share.--A recruitment partnership's share 
     of the cost of the activities described in the partnership's 
     application under section 2016(c)--
       ``(A) may be provided in cash or in kind, fairly evaluated, 
     including plant, equipment, or services; and
       ``(B)(i) for the first year for which the partnership 
     receives assistance under this subpart, shall be not less 
     than 10 percent;
       ``(ii) for the second such year, shall be not less than 20 
     percent;
       ``(iii) for the third year such year, shall be not less 
     than 30 percent;
       ``(iv) for the fourth such year, shall be not less than 40 
     percent; and
       ``(v) for the fifth such year, shall be not less than 50 
     percent.

     ``SEC. 2019. GRANTS TO PARTNERSHIPS OF INSTITUTIONS OF HIGHER 
                   EDUCATION AND LOCAL EDUCATIONAL AGENCIES.

       ``(a) Administration.--A State agency for higher education 
     may use, from the funds made available to the agency under 
     section 2013(a)(4) for any fiscal year, not more than 3\1/3\ 
     percent for the expenses of the agency in administering this 
     section, including conducting evaluations of activities on 
     the performance measures described in section 2014(a)(2).
       ``(b) Grants to Partnerships.--
       ``(1) In general.--The State agency for higher education 
     shall use the remainder of the funds, in cooperation with the 
     State educational agency, to make grants to (including 
     entering into contracts or cooperative agreements with) 
     partnerships of--
       ``(A) institutions of higher education or nonprofit 
     organizations of demonstrated effectiveness in providing 
     professional development and mentoring in the core academic 
     subjects; and
       ``(B) eligible local educational agencies (as defined in 
     section 2015(b)(2)),

     to carry out activities described in subsection (e).
       ``(2) Size; duration.--Each grant made under this section 
     shall be--
       ``(A) in a sufficient amount to carry out the objectives of 
     this section effectively; and
       ``(B) for a period of 3 years, which the State agency for 
     higher education may extend for an additional 2 years if the 
     agency determines that the partnership is making substantial 
     progress toward meeting the specific goals set out in the 
     written agreement required in subsection (c) and on the 
     performance measures described in section 2014(a)(2).
       ``(3) Applications.--To be eligible to receive a grant 
     under this section, a partnership shall submit an application 
     to the State agency for higher education at such time, in 
     such manner, and containing such information as the agency 
     may reasonably require.
       ``(4) Award process and basis.--The State agency for higher 
     education shall make the grants on a competitive basis, using 
     a peer review process.
       ``(5) Priority.--In making the grants, the State agency for 
     higher education shall give priority to partnerships 
     submitting applications for projects that focus on induction 
     programs for beginning teachers.
       ``(6) Considerations.--In making such a grant for a 
     partnership, the State agency for higher education shall 
     consider--
       ``(A) the need of the local educational agency involved for 
     the professional development and mentoring activities 
     proposed in the application;
       ``(B) the quality of the program proposed in the 
     application and the likelihood of success of the program in 
     improving classroom instruction and student academic 
     achievement; and
       ``(C) such other criteria as the agency finds to be 
     appropriate.
       ``(c) Agreements.--
       ``(1) In general.--No partnership may receive a grant under 
     this section unless the institution of higher education or 
     nonprofit organization involved enters into a written 
     agreement with at least 1 eligible local educational agency 
     (as defined in section 2015(b)(2)) to provide professional 
     development and mentoring for elementary and secondary school 
     teachers in the schools served by that agency in the core 
     academic subjects.
       ``(2) Goals.--Each such agreement shall identify specific 
     goals concerning how the professional development and 
     mentoring that the partnership provides will enhance the 
     ability of the teachers to prepare all students to meet 
     challenging State and local content and student performance 
     standards.
       ``(d) Joint Efforts Within Institutions of Higher 
     Education.--Each professional development and mentoring 
     activity assisted under this section by a partnership 
     containing an institution of higher education shall involve 
     the joint effort of the institution of higher education's 
     school or department of education and the schools or 
     departments of the institution in the specific disciplines in 
     which the professional development and mentoring will be 
     provided.
       ``(e) Uses of Funds.--A partnership that receives funds 
     under this section shall use the funds for--
       ``(1) professional development and mentoring in the core 
     academic subjects, aligned with State or local content 
     standards, for teams of teachers from a school or school 
     district and, where appropriate, administrators and 
     paraprofessionals on a career track;
       ``(2) research-based professional development and mentoring 
     programs to assist beginning teachers, which may include--
       ``(A) mentoring and coaching by trained mentor teachers 
     that lasts at least 2 years;
       ``(B) team teaching with veteran teachers;
       ``(C) provision of time for observation of, and 
     consultation with, veteran teachers;
       ``(D) provision of reduced teaching loads; and
       ``(E) provision of additional time for preparation;
       ``(3) the provision of technical assistance to school and 
     agency staff for planning, implementing, and evaluating 
     professional development and mentoring; and
       ``(4) in appropriate cases, the provision of training to 
     address areas of teacher and administrator shortages.
       ``(f) Coordination.--Any partnership that carries out 
     professional development and mentoring activities under this 
     section shall coordinate the activities with activities 
     carried out under title II of the Higher Education Act of 
     1965, if a local educational agency or institution of higher 
     education in the partnership is participating in programs 
     funded under that title.
       ``(g) Annual Reports.--
       ``(1) In general.--Beginning with fiscal year 2002, each 
     partnership that receives a grant under this section shall 
     prepare and submit to the appropriate State agency for higher 
     education, by a date set by that agency, an annual report on 
     the progress of the partnership on the performance measures 
     described in section 2014(a)(2).
       ``(2) Contents.--Each such report shall--
       ``(A) include a copy of each written agreement required by 
     subsection (c) that is entered into by the partnership; and
       ``(B) describe how the members of the partnership have 
     collaborated to achieve the specific goals set out in the 
     agreement, and the results of that collaboration.
       ``(3) Copy.--The State agency for higher education shall 
     provide the State educational agency with a copy of each such 
     report.

                      ``Chapter 2--Accountability

     ``SEC. 2021. STATE APPLICATION ACCOUNTABILITY PROVISIONS.

       ``(a) Assurances.--Each State application submitted under 
     section 2012 shall contain assurances that, not later than 4 
     years after the date of enactment of the Affordable Education 
     Act of 1999--
       ``(1) each teacher in the State who provides services to 
     students served under this subpart will be certified or 
     licensed and will have demonstrated the academic subject 
     knowledge, teaching knowledge, and teaching skills necessary 
     to teach effectively in the academic subject in which the 
     teacher teaches, according to the criteria described in this 
     section; and
       ``(2) funds provided to the State under this subpart will 
     not be used to support teachers for whom State qualification 
     or licensing requirements have been waived or who are 
     teaching under an emergency or other provisional credential.
       ``(b) Elementary School Instructional Staff.--For purposes 
     of complying with subsection (a)(1), a State shall provide an 
     assurance that each elementary school teacher (other than a 
     middle school teacher) in the State shall, at a minimum--
       ``(1) have State certification or a State license to teach 
     (which may include certification or licensing obtained 
     through alternative routes); and
       ``(2) hold a bachelor's degree and demonstrate the academic 
     subject knowledge, teaching knowledge, and teaching skills 
     required to teach effectively in reading, writing, 
     mathematics, social studies, science, and other academic 
     subjects.
       ``(c) Middle School and Secondary School Instructional 
     Staff.--For purposes of complying with subsection (a)(1), a 
     State shall provide an assurance that each middle school or 
     secondary school teacher in the State shall, at a minimum--
       ``(1) have State certification or a State license to teach 
     (which may include certification or licensing obtained 
     through alternative routes); and
       ``(2) hold a bachelor's degree or higher degree and 
     demonstrate a high level of competence in all academic 
     subjects in which the teacher teaches through--
       ``(A) achievement of a high level of performance on 
     rigorous academic subject tests;
       ``(B) completion of an academic major (or courses totaling 
     an equivalent number of credit hours) in each of the academic 
     subjects in which the teacher teaches; or
       ``(C) achievement of a high level of performance in 
     relevant academic subjects through other professional 
     employment experience.
       ``(d) Assistance by State Educational Agency.--Each State 
     application submitted under section 2012 shall describe how 
     the State educational agency will help each local educational 
     agency and school in the State develop the capacity to comply 
     with the requirements of this section.

     ``SEC. 2022. STATE REPORTS.

       ``(a) Report to Secretary.--
       ``(1) In General.--Each State that receives funds under 
     this subpart shall annually prepare and submit to the 
     Secretary a report containing--

[[Page 2046]]

       ``(A) information on the activities of the State under this 
     subpart;
       ``(B) information on the effectiveness of the activities, 
     and the progress of recipients of grants under this subpart, 
     on performance measures described in section 2014(a)(2); and
       ``(C) such other information as the Secretary may 
     reasonably require.
       ``(2) Deadlines.--The State shall submit the reports 
     described in paragraph (1) by such deadlines as the Secretary 
     may establish.
       ``(b) Public Accountability.--
       ``(1) In general.--Each State that receives funds under 
     this subpart--
       ``(A) in the event the State provides public State report 
     cards on education, shall include in such report cards--
       ``(i) the percentage of classes in core academic subjects 
     that are taught by out-of-field teachers; and
       ``(ii) the average statewide class size; or
       ``(B) in the event the State provides no such report card, 
     shall disseminate to the public the information described in 
     clauses (i) and (ii) of subparagraph (A) through other means.
       ``(2) Public availability.--Such information shall be made 
     widely available to the public, including parents and 
     students, throughout the State.

     ``SEC. 2023. LOCAL APPLICATION ACCOUNTABILITY PROVISIONS.

       ``Each local application submitted under section 2016 shall 
     contain assurances that--
       ``(1) the agency will not hire any teacher for a program 
     supported with funds made available to the agency under this 
     subpart, unless the teacher--
       ``(A) is certified or licensed in the field in which the 
     teacher will teach; or
       ``(B) has a bachelor's degree and is enrolled in a program 
     through which the teacher will obtain such certification or 
     licensing within 3 years;
       ``(2) the local educational agency and schools served by 
     the agency will work to ensure, through voluntary agreements 
     and incentive programs, that elementary school and secondary 
     school teachers in high-poverty schools served by the local 
     educational agency will be at least as well qualified, in 
     terms of experience and credentials, as the instructional 
     staff in schools served by the same local educational agency 
     that are not high-poverty schools;
       ``(3) any teacher who receives certification from the 
     National Board for Professional Teaching Standards will be 
     considered fully qualified to teach, in the academic subjects 
     in which the teacher is certified, in high-poverty schools in 
     any school district or community served by the local 
     educational agency; and
       ``(4) the agency will--
       ``(A) make available, on request and in an understandable 
     and uniform format, to any parent of a student attending any 
     school served by the local educational agency, information 
     regarding the qualifications of the student's classroom 
     teacher with regard to the academic subject in which the 
     teacher teaches; and
       ``(B) inform parents that the parents are entitled to 
     receive the information upon request.

     ``SEC. 2024. LOCAL CONTINUATION OF FUNDING.

       ``(a) Agencies.--If a local educational agency applies for 
     funds under this subpart for a 4th or subsequent fiscal year 
     (including applying for funds as part of a partnership), the 
     agency may receive the funds for that fiscal year only if the 
     State determines that the agency has demonstrated that the 
     agency, in carrying out activities under this subpart during 
     the past fiscal year, has--
       ``(1) improved student performance;
       ``(2) increased participation in sustained professional 
     development and mentoring programs;
       ``(3) reduced the beginning teacher attrition rate for the 
     agency; and
       ``(4) reduced the number of teachers who are not certified 
     or licensed, and the number who are out-of-field teachers, 
     for the agency.
       ``(b) Schools.--If a local educational agency applies for 
     funds under this subpart on behalf of a school for a 4th or 
     subsequent fiscal year (including applying for funds as part 
     of a partnership), the agency may receive the funds for the 
     school for that fiscal year only if the State determines that 
     the school has demonstrated that the school, in carrying out 
     activities under this subpart during the past fiscal year, 
     has met the requirements of paragraphs (1) through (4) of 
     subsection (a).
       ``(c) Recruitment Partnerships.--
       ``(1) In general.--If not more than 90 percent of the 
     graduates of a teacher corps program assisted under this 
     subpart for a fiscal year pass applicable State or local 
     initial teacher licensing or certification examinations, the 
     recruitment partnership providing the teacher corps program 
     shall be ineligible to receive grant funds for the succeeding 
     fiscal year.
       ``(2) Waiver.--The State in which the partnership is 
     located may waive the requirement described in paragraph (1) 
     for a recruitment partnership serving a school district that 
     has special circumstances, such as a district with a small 
     number of corps members.

     ``SEC. 2025. LOCAL REPORTS.

       ``(a) In General.--Each local educational agency that 
     receives funds under this subpart (including funds received 
     through a partnership) shall prepare, make publicly 
     available, and submit to the State educational agency, every 
     year, beginning in fiscal year 2002, a report on the 
     activities of the agency under this subpart, in such form and 
     containing such information as the State educational agency 
     may reasonably require.
       ``(b) Contents.--The report shall contain, at a minimum--
       ``(1) information on progress throughout the schools served 
     by the local educational agency on the performance measures 
     described in section 2014(a)(2);
       ``(2) information on progress throughout the schools served 
     by the local educational agency toward achieving the 
     objectives of this subpart;
       ``(3) data on the progress described in paragraphs (1) and 
     (2), disaggregated by school poverty level, as defined by the 
     State; and
       ``(4) a description of the methodology used to gather the 
     information and data described in paragraphs (1) through (3).

 ``Subpart 2--National Activities for the Improvement of Teaching and 
                           School Leadership

     ``SEC. 2031. PROGRAM AUTHORIZED.

       ``(a) In General.--The Secretary is authorized to make 
     grants to, and to enter into contracts and cooperative 
     agreements with, local educational agencies, educational 
     service agencies, State educational agencies, State agencies 
     for higher education, institutions of higher education, and 
     other public and private nonprofit agencies, organizations, 
     and institutions to carry out subsection (b).
       ``(b) Activities.--In making the grants, and entering into 
     the contracts and cooperative agreements, the Secretary--
       ``(1) may support activities of national significance that 
     are not supported through other sources and that the 
     Secretary determines will contribute to the improvement of 
     teaching and school leadership in the Nation's schools, such 
     as--
       ``(A) supporting collaborative efforts by States, or 
     consortia of States, to review and measure the quality, 
     rigor, and alignment of State standards and assessments;
       ``(B) supporting the development of models, at the State 
     and local levels, of innovative compensation systems that--
       ``(i) provide incentives for talented individuals who have 
     a strong knowledge of academic content to enter teaching; and
       ``(ii) reward veteran teachers who acquire new knowledge 
     and skills that are needed in the schools and districts in 
     which the teachers teach; and
       ``(C) supporting collaborative efforts by States, or 
     consortia of States, to develop performance-based systems for 
     assessing content knowledge and teaching skills of teachers 
     prior to initial certification or licensure of the teachers;
       ``(2) may support activities of national significance that 
     the Secretary determines will contribute to the recruitment 
     and retention of highly qualified teachers and principals in 
     schools served by high-poverty local educational agencies, 
     such as--
       ``(A) the development and implementation of a national 
     teacher recruitment clearinghouse and job bank, which shall 
     be coordinated and, to the extent feasible, integrated with 
     the America's Job Bank administered by the Secretary of 
     Labor, to--
       ``(i) disseminate information and resources nationwide on 
     entering the teaching profession, to persons interested in 
     becoming teachers;
       ``(ii) serve as a national resource center regarding 
     effective practices for teacher professional development and 
     mentoring, recruitment, and retention;
       ``(iii) link prospective teachers to local educational 
     agencies and training resources;
       ``(iv) provide information and technical assistance to 
     prospective teachers about certification and licensing and 
     other State and local requirements related to teaching; and
       ``(v) provide data projections concerning teacher and 
     administrator supply and demand and available teaching and 
     administrator opportunities;
       ``(B) the development and implementation, or expansion, of 
     programs that recruit talented individuals to become 
     principals, including such programs that employ alternative 
     routes to State certification or licensing that are at least 
     as rigorous as the State's standards for initial 
     certification or licensing of teachers, and that prepare both 
     new and experienced principals to serve as instructional 
     leaders, which may include the creation and operation of a 
     national center or regional centers for the preparation and 
     support of principals as leaders of school reform;
       ``(C) efforts to increase the portability of teacher 
     pensions and reciprocity of teaching credentials across State 
     lines;
       ``(D) research, evaluation, and dissemination activities 
     related to effective strategies for increasing the 
     portability of teachers' credited years of experience across 
     State and school district lines;
       ``(E) the development and implementation of national or 
     regional programs to--
       ``(i) recruit highly talented individuals to become 
     teachers, through alternative routes to certification or 
     licensing, in schools served by high-poverty local 
     educational agencies; and

[[Page 2047]]

       ``(ii) help retain the individuals for more than 3 years as 
     classroom teachers in schools served by the local educational 
     agencies; and
       ``(F) the establishment of partnerships of high-poverty 
     local educational agencies, teacher organizations, and local 
     businesses, in order to help the agencies attract and retain 
     high-quality teachers and principals through provision of 
     increased pay, combined with reforms to raise teacher 
     performance including use of regular, rigorous peer 
     evaluations and (where appropriate) student evaluations of 
     every teacher;
       ``(3)(A) shall carry out a national evaluation, not sooner 
     than 3 years after the date of enactment of the Affordable 
     Education Act of 1999, of the effect of activities carried 
     out under this title, including an assessment of changes in 
     instructional practice and objective measures of student 
     achievement; and
       ``(B) shall submit a report containing the results of the 
     evaluation to Congress;
       ``(4) shall annually submit to Congress a report on the 
     information contained in the State reports described in 
     section 2022; and
       ``(5) may support the National Board for Professional 
     Teaching Standards.

     ``SEC. 2032. EISENHOWER NATIONAL CLEARINGHOUSE FOR 
                   MATHEMATICS AND SCIENCE EDUCATION.

       ``(a) Establishment of Clearinghouse.--The Secretary shall 
     award a grant or contract, on a competitive basis, to an 
     entity to establish and operate an Eisenhower National 
     Clearinghouse for Mathematics and Science Education (referred 
     to in this section as `the Clearinghouse').
       ``(b) Authorized Activities.--
       ``(1) Application and award basis.--
       ``(A) In general.--An entity desiring to establish and 
     operate the Clearinghouse shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may reasonably require.
       ``(B) Peer review.--The Secretary shall establish a peer 
     review panel to make recommendations on the recipient of the 
     award for the Clearinghouse.
       ``(C) Basis.--The Secretary shall make the award for the 
     Clearinghouse on the basis of merit.
       ``(2) Duration.--The Secretary shall award the grant or 
     contract for the Clearinghouse for a period of 5 years.
       ``(3) Activities.--The award recipient shall use the award 
     funds to--
       ``(A) maintain a permanent collection of such mathematics 
     and science education instructional materials and programs 
     for elementary schools and secondary schools as the Secretary 
     finds appropriate, and give priority to maintaining such 
     materials and programs that have been identified as promising 
     or exemplary, through a systematic approach such as the use 
     of expert panels required under the Educational Research, 
     Development, Dissemination, and Improvement Act of 1994;
       ``(B) disseminate the materials and programs described in 
     subparagraph (A) to the public, State educational agencies, 
     local educational agencies, and schools (particularly high-
     poverty, low-performing schools), including dissemination 
     through the maintenance of an interactive national electronic 
     information management and retrieval system accessible 
     through the World Wide Web and other advanced communications 
     technologies;
       ``(C) coordinate activities with entities operating other 
     databases containing mathematics and science curriculum and 
     instructional materials, including Federal, non-Federal, and, 
     where feasible, international databases;
       ``(D) using not more than 10 percent of the amount awarded 
     under this section for any fiscal year, participate in 
     collaborative meetings of representatives of the 
     Clearinghouse and regional mathematics and science education 
     consortia to--
       ``(i) discuss issues of common interest and concern;
       ``(ii) foster effective collaboration and cooperation in 
     acquiring and distributing instructional materials and 
     programs; and
       ``(iii) coordinate and enhance computer network access to 
     the Clearinghouse and the resources of the regional 
     consortia;
       ``(E) support the development and dissemination of model 
     professional development and mentoring materials for 
     mathematics and science education;
       ``(F) contribute materials or information, as appropriate, 
     to other national repositories or networks; and
       ``(G) gather qualitative and evaluative data on submissions 
     to the Clearinghouse, and disseminate that data widely, 
     including through the use of electronic dissemination 
     networks.
       ``(4) Submission to clearinghouse.--Each Federal agency or 
     department that develops mathematics or science education 
     instructional materials or programs, including the National 
     Science Foundation and the Department, shall submit copies of 
     that materials or those programs to the Clearinghouse.
       ``(5) Steering committee.--The Secretary may appoint a 
     steering committee to recommend policies and activities for 
     the Clearinghouse.
       ``(6) Application of copyright laws.--
       ``(A) Construction.--Nothing in this section shall be 
     construed to allow the use or copying, in any medium, of any 
     material collected by the Clearinghouse that is protected 
     under the copyright laws of the United States unless the 
     Clearinghouse obtains the permission of the owner of the 
     copyright.
       ``(B) Compliance.--In carrying out this section, the 
     Clearinghouse shall ensure compliance with title 17, United 
     States Code.

                  ``Subpart 3--Transition to Teaching

     ``SEC. 2041. PURPOSE.

       ``The purpose of this subpart is to address the need of 
     high-poverty local educational agencies for highly qualified 
     teachers in particular academic subjects, such as 
     mathematics, science, foreign languages, bilingual education, 
     and special education needed by the agencies, by--
       ``(1) continuing and enhancing the Troops to Teachers model 
     for recruiting and supporting the placement of such teachers; 
     and
       ``(2) recruiting, preparing, placing, and supporting 
     career-changing professionals who have knowledge and 
     experience that will help the professionals become such 
     teachers.

     ``SEC. 2042. DEFINITIONS.

       ``In this subpart:
       ``(1) Program participant.--The term `program participant' 
     means a career-changing professional who--
       ``(A) demonstrates interest in, and commitment to, becoming 
     a teacher; and
       ``(B) has knowledge and experience that is relevant to 
     teaching a high-need academic subject for a high-poverty 
     local educational agency.
       ``(2) Secretary.--The term `Secretary' means the Secretary 
     of Education, except as otherwise determined in accordance 
     with the agreements described in section 2043(b).

     ``SEC. 2043. PROGRAM AUTHORIZED.

       ``(a) Authority.--Subject to subsection (b), using funds 
     made available to carry out this subpart under section 
     2003(2)(A) for each fiscal year, the Secretary may award 
     grants, contracts, or cooperative agreements to institutions 
     of higher education and public and private nonprofit agencies 
     or organizations to carry out programs authorized under this 
     subpart.
       ``(b) Implementation.--
       ``(1) Consultation.--Before making awards under subsection 
     (a) for any fiscal year, the Secretary of Education shall--
       ``(A) consult with the Secretary of Defense and the 
     Secretary of Transportation regarding the appropriate amount 
     of funding needed to carry out this subpart; and
       ``(B) upon agreement, transfer that amount to the 
     Department of Defense to carry out this subpart.
       ``(2) Agreement.--The Secretary of Education may enter into 
     a written agreement with the Secretary of Defense and the 
     Secretary of Transportation, or take such other steps as the 
     Secretary of Education determines are appropriate, to ensure 
     effective implementation of this subpart.

     ``SEC. 2044. APPLICATION.

       ``Each entity that desires an award under section 2043(a) 
     shall submit an application to the Secretary at such time, in 
     such manner, and containing such information as the Secretary 
     may require, including--
       ``(1) a description of the target group of career-changing 
     professionals on which the entity will focus in carrying out 
     a program under this subpart, including a description of the 
     characteristics of that target group that shows how the 
     knowledge and experience of the members of the group are 
     relevant to meeting the purpose of this subpart;
       ``(2) a description of how the entity will identify and 
     recruit program participants;
       ``(3) a description of the training that program 
     participants will receive and how that training will relate 
     to their certification or licensing as teachers;
       ``(4) a description of how the entity will ensure that 
     program participants are placed with, and teach for, high-
     poverty local educational agencies;
       ``(5) a description of the teacher induction services 
     (which may be provided through induction programs in 
     existence on the date of submission of the application) the 
     program participants will receive throughout at least their 
     first year of teaching;
       ``(6) a description of how the entity will collaborate, as 
     needed, with other institutions, agencies, or organizations 
     to recruit, train, place, and support program participants 
     under this subpart, including evidence of the commitment of 
     the institutions, agencies, or organizations to the entity's 
     program;
       ``(7) a description of how the entity will evaluate the 
     progress and effectiveness of the entity's program, including 
     a description of--
       ``(A) the program's goals and objectives;
       ``(B) the performance indicators the entity will use to 
     measure the program's progress; and
       ``(C) the outcome measures that the entity will use to 
     determine the program's effectiveness; and
       ``(8) an assurance that the entity will provide to the 
     Secretary such information as the Secretary determines to be 
     necessary to determine the overall effectiveness of programs 
     carried out under this subpart.

[[Page 2048]]



     ``SEC. 2045. USES OF FUNDS AND PERIOD OF SERVICE.

       ``(a) Authorized Activities.--Funds made available under 
     this subpart may be used for--
       ``(1) recruiting program participants, including informing 
     individuals who are potential participants of opportunities 
     available under the program and putting the individuals in 
     contact with other institutions, agencies, or organizations 
     that would train, place, and support the individuals;
       ``(2) providing training stipends and other financial 
     incentives for program participants, such as paying for 
     moving expenses, not to exceed $5,000, in the aggregate, per 
     participant;
       ``(3) assisting institutions of higher education or other 
     providers of teacher training to tailor their training to 
     meet the particular needs of professionals who are changing 
     their careers to teaching;
       ``(4) providing placement activities, including identifying 
     high-poverty local educational agencies with needs for the 
     particular skills and characteristics of the newly trained 
     program participants and assisting the participants to obtain 
     employment with the local educational agencies; and
       ``(5) providing post-placement induction or support 
     activities for program participants.
       ``(b) Period of Service.--A program participant in a 
     program under carried out under this subpart who completes 
     the participant's training shall serve in a high-poverty 
     local educational agency for at least 3 years.
       ``(c) Repayment.--The Secretary shall establish such 
     requirements as the Secretary determines to be appropriate to 
     ensure that program participants who receive a training 
     stipend or other financial incentive under subsection (a)(2), 
     but fail to complete their service obligation under 
     subsection (b), repay all or a portion of such stipend or 
     other incentive.

     ``SEC. 2046. EQUITABLE DISTRIBUTION.

       ``To the extent practicable, the Secretary shall make 
     awards under this subpart that support programs in different 
     geographic regions of the Nation.

                     ``Subpart 4--Hometown Teachers

     ``SEC. 2051. PURPOSE.

       ``The purpose of this subpart is to support the efforts of 
     high-need local educational agencies to develop and implement 
     comprehensive approaches to recruiting and retaining highly 
     qualified teachers, including recruiting such teachers 
     through Hometown Teacher programs that carry out long-term 
     strategies to expand the capacity of the communities served 
     by the agencies to produce local teachers.

     ``SEC. 2052. DEFINITION.

       ``The term `high-need local educational agency' means a 
     local educational agency that serves an elementary school or 
     secondary school located in an area in which there is--
       ``(1) a high percentage (as determined by the State in 
     which the agency is located) of individuals from families 
     with incomes below the poverty line; or
       ``(2) a high percentage (as determined by the State in 
     which the agency is located) of secondary school teachers not 
     teaching in the content area in which the teachers were 
     trained to teach.

     ``SEC. 2053. PROGRAM AUTHORIZED.

       ``From funds made available to carry out this subpart under 
     section 2003(2)(B) for each fiscal year, the Secretary may 
     award grants to high-need local educational agencies to carry 
     out Hometown Teacher programs and other activities described 
     in this subpart.

     ``SEC. 2054. APPLICATIONS.

       ``Each high-need local educational agency that desires to 
     receive a grant under section 2053 shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require, 
     including--
       ``(1) a description of the local educational agency's 
     assessment of the agency's needs for teachers, such as the 
     agency's projected shortage of qualified teachers and the 
     percentage of teachers serving the agency who lack 
     certification or licensure or who are teaching out of field;
       ``(2) a description of a Hometown Teacher program that the 
     local educational agency plans to develop and implement with 
     the funds made available through the grant, including a 
     description of--
       ``(A) strategies the agency will use to--
       ``(i) encourage secondary school and middle school students 
     in schools served by the local educational agency to consider 
     pursuing careers in the teaching profession; and
       ``(ii) provide support at the undergraduate level to those 
     students who intend to become teachers; and
       ``(B) the agency's plans to streamline the hiring practices 
     of the agency for participants in the Hometown Teacher 
     program;
       ``(3) a description of the long-term strategies that the 
     agency will use, if any, to reduce the agency's teacher 
     attrition rate, including providing mentoring programs and 
     making efforts to raise teacher salaries and create more 
     desirable working conditions for teachers;
       ``(4) a description of the agency's strategy for ensuring 
     that all secondary school teachers and middle school teachers 
     in the school district are fully certified or licensed in an 
     academic subject and are teaching the majority of their 
     classes in the subject in which the teachers are certified or 
     licensed;
       ``(5) a description of the short-term strategies the agency 
     will use, if any, to address the agency's teacher shortage 
     problem, including the strategies the agency will use to 
     ensure that the teachers that the local educational agency is 
     targeting for employment are fully certified or licensed;
       ``(6) a description of the agency's long-term plan for 
     ensuring that the agency's teachers have opportunities for 
     sustained, high-quality professional development;
       ``(7) a description of the ways in which the activities 
     proposed to be carried out through the grant are part of the 
     agency's overall plan for improving the quality of teaching 
     and student achievement;
       ``(8) a description of how the agency will collaborate, as 
     needed, with other institutions, agencies, or organizations 
     to develop and implement the strategies the agency proposes 
     in the application, including evidence of the commitment of 
     the institutions, agencies, or organizations to the agency's 
     activities;
       ``(9) a description of the strategies the agency will use 
     to coordinate activities funded under the program carried out 
     under this subpart with activities funded through other 
     Federal programs that address teacher shortages, including 
     programs carried out through grants to local educational 
     agencies under title I or this title, including subpart 3, if 
     the applicant receives funds from the programs;
       ``(10) a description of how the agency will evaluate the 
     progress and effectiveness of the Hometown Teacher program, 
     including a description of--
       ``(A) the agency's goals and objectives for the program;
       ``(B) the performance indicators that the agency will use 
     to measure the program's effectiveness; and
       ``(C) the measurable outcome measures, such as increased 
     percentages of fully certified or licensed teachers, that the 
     agency will use to determine the program's effectiveness; and
       ``(11) an assurance that the agency will provide to the 
     Secretary such information as the Secretary determines to be 
     necessary to determine the overall effectiveness of programs 
     carried out under this subpart.

     ``SEC. 2055. PRIORITY.

       ``In awarding grants under this subpart, the Secretary may 
     give priority to agencies submitting applications that--
       ``(1) focus on increasing the percentage of qualified 
     teachers in particular teaching fields, such as mathematics, 
     science, and bilingual education; and
       ``(2) focus on recruiting qualified teachers for certain 
     types of communities, such as urban and rural communities.

     ``SEC. 2056. USE OF FUNDS.

       ``(a) Mandatory Use of Funds.--A local educational agency 
     that receives a grant under this subpart shall use the funds 
     made available through the grant to develop and implement 
     long-term strategies to address the agency's teacher 
     shortage, including carrying out Hometown Teacher programs 
     such as the programs described in section 2051.
       ``(b) Permissible Use of Funds.--A local educational agency 
     that receives a grant under this subpart may use the funds 
     made available through the grant to--
       ``(1) develop and implement strategies to reduce the local 
     educational agency's teacher attrition rate, including 
     providing mentoring programs, increasing teacher salaries, 
     and creating more desirable working conditions for teachers; 
     and
       ``(2) develop and implement short-term strategies to 
     address the agency's teacher shortage, including providing 
     scholarships to undergraduates who agree to teach in the 
     school district served by the agency for a certain number of 
     years, providing signing bonuses for teachers, and 
     implementing streamlined hiring practices.
       ``(c) Supplement, Not Supplant.--Funds made available under 
     this subpart shall be used to supplement, and shall not 
     supplant, State and local funds expended to carry out 
     programs and activities authorized under this subpart.

     ``SEC. 2057. SERVICE REQUIREMENTS.

       ``(a) In General.--The Secretary shall establish such 
     requirements as the Secretary finds to be necessary to ensure 
     that a recipient of a scholarship under this subpart who 
     completes a teacher education program subsequently--
       ``(1) teaches in a school district served by a high-need 
     local educational agency, for a period of time equivalent to 
     the period for which the recipient received the scholarship; 
     or
       ``(2) repays the amount of the funds provided through the 
     scholarship.
       ``(b) Use of Repaid Funds.--The Secretary shall deposit any 
     such repaid funds in an account, and use the funds to carry 
     out additional activities under this subpart.''.
       (b) Conforming Amendment.--The Troops-to-Teachers Program 
     Act of 1999 (20 U.S.C. 9301 et seq.) is repealed.
       (c) Technical Amendments.--
       (1) Restatement of authorization language.--Part D of title 
     II of the Elementary and Secondary Education Act of 1965 (20

[[Page 2049]]

     U.S.C. 6671 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 2307. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part $3,200,000 for each of fiscal years 1995 through 
     1999.''.
       (2) Clearinghouse.--Section 13302(1) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8672(1)) is 
     amended by striking ``section 2102(b)'' and inserting 
     ``section 2032''.
       (3) References.--Sections 14101(10)(C) and 14503(b)(1)(B) 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 8801(10)(C) and 8893(b)(1)(B)) are amended by striking 
     ``section 2103 and''.
                                 ______
                                 

                 BOXER (AND OTHERS) AMENDMENT NO. 2873

  Mrs. BOXER (for herself, Mr. Schumer, Mr. Levin, Mr. Johnson, and Mr. 
Robb) proposed an amendment to the bill, S. 1134, supra; as follows:

       At the appropriate place, add the following:

     SEC.   . SENSE OF THE SENATE REGARDING A SAFE LEARNING 
                   ENVIRONMENT.

       (a) Findings.--Congress finds that--
       (1) Every school child in America has a right to a safe 
     learning environment free from guns and violence.
       (2) Any education measure passed by Congress is undermined 
     by violence in the schools.
       (3) The February 29, 2000 shooting at Buell Elementary 
     School in Mount Morris Township, Michigan, is evidence that 
     the tragic gun violence in America's schools continues.
       (4) In the last 12 months, there have been at least 50 
     people killed or injured in school shootings in America.
       (5) Every day in America, on average, between 12 and 13 
     children under the age of 18 die of gunshots from homicides, 
     accidental shootings, and suicides.
       (6) In the 10\1/2\ months since the shooting at Columbine 
     High School in Littleton, Colorado, the United States 
     Congress has failed to pass reasonable, common-sense gun 
     control measures that would help to make schools safer, 
     improve the learning environment, and stem the tide of gun 
     violence in America.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that before April 20, 2000, Congress shall make schools safe 
     for learning by implementing policies that will reduce the 
     threat of gun violence in schools.
                                 ______
                                 

                      COVERDELL AMENDMENT NO. 2874

  Mr. COVERDELL proposed an amendment to amendment No. 2873 proposed by 
Mrs. Boxer to the bill, S. 1134, supra; as follows:

       Strike all after the first work and insert the following:

     SENSE OF THE SENATE REGARDING A SAFE LEARNING ENVIRONMENT.

       (a) Findings.--Congress finds that--
       (1) Every school child in America should have a safe 
     learning environment free from violence and illegal drugs.
       (2) Violence and illegal drugs in the schools undermine a 
     safe and secure learning environment.
       (3) Any instance of violence or illegal drugs in schools is 
     unacceptable and undermines the efforts of Congress, state 
     and local governments and school boards, and parents to 
     provide American children with the best education possible.
       (4) In the last 12 months, there have been at least 50 
     people killed or injured in school shootings in America.
       (5) From 1992 through 1998, the number of referrals made by 
     the Bureau of Alcohol, Tobacco, and Firearms to the Federal 
     Bureau of Investigation for federal firearms prosecutions 
     fell 44%, which resulted in a 40% drop in prosecutions and a 
     31% decline in convictions, allowing criminals to remain on 
     the streets preying on our most vulnerable citizens, 
     including our children.
       (6) From 1996 to 1998, the Justice Department only 
     prosecuted an average of seven persons per year for illegally 
     transferring a handgun to a juvenile.
       (7) Since 1992, the percentage of 8th grade students using 
     marijuana, cocaine, and heroin in the past 30 days has 
     increased 162%, 86%, and 50%, respectively, according to the 
     respected Monitoring the Future survey.
       (8) The February 29, 2000, shooting at Buell Elementary 
     School in Mount Morris Township, Michigan, is evidence that 
     gun violence in American schools continues, that the drug 
     culture contributes to youth violence, and that the breakdown 
     of the American family has contributed to the increase in 
     violence among American children.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the reauthorization of the Safe and Drug-Free Schools 
     program that Congress soon will be considering should target 
     the elimination of illegal drugs and violence in our schools 
     and should encourage local schools to insist on zero-
     tolerance policies towards violence and illegal drug use.
                                 ______
                                 

                KENNEDY (AND OTHERS) AMENDMENT NO. 2875

  Mr. KENNEDY (for himself, Mr. Bingaman, Mr. Reed, and Mr. Wellstone) 
proposed an amendment to the bill, S. 1134, supra; as follows:

       Strike section 101 and insert the following:

     SEC. 101. FEDERAL PELL GRANTS.

       There are appropriated to carry out subpart 1 of part A of 
     title IV of the Higher Education Act of 1965 (20 U.S.C. 
     1070a) $1,200,000,000, which amount is equal to the projected 
     revenue increase resulting from striking the amendments made 
     to the Internal Revenue Code of 1986 by section 101 of this 
     Act as reported by the Committee on Finance of the Senate.
                                 ______
                                 

                      FEINSTEIN AMENDMENT NO. 2876

  Mrs. Feinstein (for herself, Mr. Sessions, Mr. Byrd, and Mr. 
Lieberman) proposed an amendment to the bill, S. 1134, supre; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. ACHIEVEMENT STANDARDS AND ASSESSMENT OF STUDENT 
                   PERFORMANCE.

       In order to receive Federal funds under the Elementary and 
     Secondary Education Act of 1965 each local educational agency 
     and State educational agency shall--
       (1) require that students served by the agency be subject 
     to State achievement standards in the core curriculum, to be 
     determined by the State, for all elementary through secondary 
     students; and
       (2) assess student performance in meeting the State 
     achievement standards at key transition points, such as 
     grades 4, 8, and 12, before promotion to the next grade 
     level.

     SEC. __. POLICY PROHIBITING SOCIAL PROMOTION.

       (a) Policy.--No education funds appropriated under the 
     Elementary and Secondary Education Act of 1965 shall be made 
     available to a local educational agency in a State unless the 
     State demonstrates to the Secretary of Education that the 
     State has adopted a policy prohibiting the practice of social 
     promotion.
       (b) Definition.--In this section, the term ``practice of 
     social promotion'' means a formal or informal practice of 
     promoting a student from the grade for which the 
     determination is made to the next grade when the student 
     fails to achieve a minimum level of achievement and 
     proficiency in the core curriculum for the grade for which 
     the determination is made.
       (c) Waiver Prohibited.--Notwithstanding any other provision 
     of law, the Secretary of Education may not waive the 
     provisions of this section.
                                 ______
                                 

                        KERRY AMENDMENT NO. 2877

  Mr. KERRY submitted an amendment intended to be proposed by him to 
the bill, S. 1134, supra; as follows:

       At the appropriate place, add the following:
        TITLE __--AMENDMENTS TO THE HIGHER EDUCATION ACT OF 1965

     SEC. __01. SCHOLARSHIPS FOR FUTURE TEACHERS.

       Part A of title IV of the Higher Education Act of 1965 (20 
     U.S.C. 1070 et seq.) is amended by adding at the end the 
     following:

             ``Subpart 9--Scholarships for Future Teachers

     ``SEC. 420L. STATEMENT OF PURPOSE.

       ``It is the purpose of this subpart to establish a 
     scholarship program to promote student excellence and 
     achievement and to encourage students to make a commitment to 
     teaching.

     ``SEC. 420M. SCHOLARSHIPS AUTHORIZED.

       ``(a) Program Authority.--The Secretary is authorized, in 
     accordance with the provisions of this subpart, to make 
     grants to States to enable the States to award scholarships 
     to individuals who have demonstrated outstanding academic 
     achievement and who make a commitment to become State 
     certified teachers in elementary schools or secondary schools 
     that are served by local educational agencies.
       ``(b) Period of Award.--Scholarships under this section 
     shall be awarded for a period of not less than 1 and not more 
     than 4 years during the first 4 years of study at any 
     institution of higher education eligible to participate in 
     any program assisted under this title. The State educational 
     agency administering the scholarship program in a State shall 
     have discretion to determine the period of the award (within 
     the limits specified in the preceding sentence).
       ``(c) Use at Any Institution Permitted.--A student awarded 
     a scholarship under this subpart may attend any institution 
     of higher education.

     ``SEC. 420N. ALLOCATION AMONG STATES.

       ``(a) Allocation Formula.--From the sums appropriated under 
     section 420U for any fiscal year, the Secretary shall 
     allocate to each State that has an agreement under section 
     420O an amount that bears the same relation to the sums as 
     the amount the State received under part A of title I of the 
     Elementary and Secondary Education Act of 1965 bears to the 
     amount received under such part A by all States.
       ``(b) Amount of Scholarships.--The Secretary shall 
     promulgate regulations setting forth the amount of 
     scholarships awarded under this subpart.

[[Page 2050]]



     ``SEC. 420O. AGREEMENTS.

       ``The Secretary shall enter into an agreement with each 
     State desiring to participate in the scholarship program 
     authorized by this subpart. Each such agreement shall include 
     provisions designed to ensure that--
       ``(1) the State educational agency will administer the 
     scholarship program authorized by this subpart in the State;
       ``(2) the State educational agency will comply with the 
     eligibility and selection provisions of this subpart;
       ``(3) the State educational agency will conduct outreach 
     activities to publicize the availability of scholarships 
     under this subpart to all eligible students in the State, 
     with particular emphasis on activities designed to assure 
     that students from low-income and moderate-income families 
     have access to the information on the opportunity for full 
     participation in the scholarship program authorized by this 
     subpart; and
       ``(4) the State educational agency will pay to each 
     individual in the State who is awarded a scholarship under 
     this subpart an amount determined in accordance with 
     regulations promulgated under section 420N(b).

     ``SEC. 420P. ELIGIBILITY OF SCHOLARS.

       ``(a) Secondary School Graduation or Equivalent and 
     Admission to Institution Required.--Each student awarded a 
     scholarship under this subpart shall--
       ``(1) have a secondary school diploma or its recognized 
     equivalent;
       ``(2) have a score on a nationally recognized college 
     entrance exam, such as the Scholastic Aptitude Test (SAT) or 
     the American College Testing Program (ACT), that is in the 
     top 20 percent of all scores achieved by individuals in the 
     secondary school graduating class of the student, or have a 
     grade point average that is in the top 20 percent of all 
     students in the secondary school graduating class of the 
     student;
       ``(3) have been admitted for enrollment at an institution 
     of higher education; and
       ``(4) make a commitment to become a State certified 
     elementary school or secondary school teacher for a period of 
     5 years.
       ``(b) Selection Based on Commitment to Teaching.--Each 
     student awarded a scholarship under this subpart shall 
     demonstrate outstanding academic achievement and show promise 
     of continued academic achievement.

     ``SEC. 420Q. SELECTION OF SCHOLARS.

       ``(a) Establishment of Criteria.--The State educational 
     agency is authorized to establish the criteria for the 
     selection of scholars under this subpart.
       ``(b) Adoption of Procedures.--The State educational agency 
     shall adopt selection procedures designed to ensure an 
     equitable geographic distribution of scholarship awards 
     within the State.
       ``(c) Consultation Requirement.--In carrying out its 
     responsibilities under subsections (a) and (b), the State 
     educational agency shall consult with school administrators, 
     local educational agencies, teachers, counselors, and 
     parents.
       ``(d) Timing of Selection.--The selection process shall be 
     completed, and the awards made, prior to the end of each 
     secondary school academic year.

     ``SEC. 420R. SCHOLARSHIP CONDITION.

       ``The State educational agency shall establish procedures 
     to assure that a scholar awarded a scholarship under this 
     subpart pursues a course of study at an institution of higher 
     education that is related to a career in teaching.

     ``SEC. 420S. RECRUITMENT.

       ``In carrying out a scholarship program under this section, 
     a State may use not less than 5 percent of the amount awarded 
     to the State under this subpart to carry out recruitment 
     programs through local educational agencies. Such programs 
     shall target liberal arts, education and technical 
     institutions of higher education in the State.

     ``SEC. 420T. INFORMATION.

       ``The Secretary shall develop additional programs or 
     strengthen existing programs to publicize information 
     regarding the programs assisted under this title and teaching 
     careers in general.

     ``SEC. 420U. APPROPRIATIONS.

       ``There are authorized to be appropriated, and there are 
     appropriated, to carry out this subpart $10,000,000 for each 
     of the fiscal years 2001 through 2005, of which not more than 
     0.5 percent shall be used by the Secretary in any fiscal year 
     to carry out section 420T.''.

     SEC. __02. LOAN FORGIVENESS AND CANCELLATION FOR TEACHERS.

       (a) Federal Stafford Loans.--Section 428J of Higher 
     Education Act of 1965 (20 U.S.C. 1078-10) is amended--
       (1) in the matter preceding subparagraph (A) of subsection 
     (b)(1), by striking ``for 5 consecutive complete school 
     years'';
       (2) by amending paragraph (1) of subsection (c) to read as 
     follows:
       ``(1) Amount.--
       ``(A) In general.--The Secretary shall repay--
       ``(i) not more than $5,000 in the aggregate of the loan 
     obligation on a loan made under section 428 or 428H that is 
     outstanding after the completion of the second complete 
     school year of teaching described in subsection (b)(1); and
       ``(ii) not more than $5,000 in the aggregate of such loan 
     obligation that is outstanding after the fifth complete 
     school year of teaching described in subsection (b)(1).
       ``(B) Special rule.--No borrower may receive a reduction of 
     loan obligations under both this section and section 460.''; 
     and
       (3) by adding at the end the following:
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated, and there are appropriated, to 
     carry out this section $50,000,000 for each of the fiscal 
     years 2001 through 2005.''.
       (b) Direct Loans.--Section 460 of the Higher Education Act 
     of 1965 (20 U.S.C. 1087j) is amended--
       (1) in the matter preceding clause (i) of subsection 
     (b)(1)(A), by striking ``for 5 consecutive complete school 
     years'';
       (2) by amending paragraph (1) of subsection (c) to read as 
     follows:
       ``(1) In general.--The Secretary shall repay--
       ``(A) not more than $5,000 in the aggregate of the loan 
     obligation on a Federal Direct Stafford Loan or a Federal 
     Direct Unsubsidized Stafford Loan that is outstanding after 
     the completion of the second complete school year of teaching 
     described in subsection (b)(1)(A); and
       ``(B) not more than $5,000 in the aggregate of such loan 
     obligation that is outstanding after the fifth complete 
     school year of teaching described in subsection (b)(1)(A).''; 
     and
       (3) by adding at the end the following:
       ``(i) Appropriations.--There are authorized to be 
     appropriated, and there are appropriated, to carry out this 
     section $50,000,000 for each of the fiscal years 2001 through 
     2005.''.
                                 ______
                                 

                      WELLSTONE AMENDMENT NO. 2878

  Mr. WELLSTONE proposed an amendment to amendment No. 2876 proposed by 
Mrs. Feinstein to the bill, S. 1134, supra; as follows:

       On page 2, after line 23, add the following:
       (d) Limitation.--
       (1) In general.--The provisions of this section shall not 
     apply to any child who was not afforded, by the State 
     educational agency or the local educational agency, an 
     opportunity to learn the material necessary to meet the State 
     achievement standards.
       (2) Opportunity.--A child shall not be considered to have 
     been afforded an opportunity to learn under paragraph (1) 
     unless--
       (A) the child was taught by fully certified or qualified 
     teachers as defined by the State;
       (B) the child's parents had multiple opportunities for 
     parental involvement;
       (C) the child had access to high quality instructional 
     materials and instructional resources to ensure that the 
     child had the opportunity to achieve to the highest 
     performance levels, regardless of disability, income, and 
     background;
       (D) the child received the services for which the child is 
     eligible under title I of the Elementary and Secondary 
     Education Act of 1965 and the Individuals with Disabilities 
     Education Act;
       (E) if necessary, the child received proper bilingual 
     education and special education services; and
       (F) the child had the opportunity to receive high quality 
     early childhood education.
                                 ______
                                 

                       DURBIN AMENDMENT NO. 2879

  Mr. DURBIN proposed an amendment to the bill, S. 1134, supra; as 
follows:

       At the appropriate place, insert the following:

     SEC.  . REDUCTION IN SCHOOL VIOLENCE.

       (a) Short Title.--This section may be cited as the ``School 
     Violence Act''.
       (b) Findings.--Congress finds that--
       (1) Every school child in America has a right to a safe 
     learning environment free from guns and violence.
       (2) The U.S. Department of Education report on the 
     Implementation of the Gun-Free Schools Act found that 3,930 
     children were expelled for bringing guns to school during the 
     1997-98 school year.
       (3) Nationwide, 57% of the expulsions were high school 
     students, 33% were in junior high and 10% were in elementary 
     school.
       (c) Grants.--The Secretary of Education shall award grants 
     to elementary and secondary schools (as such terms are 
     defined in section 14101 of the elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8801)) to enable such 
     schools to:
       (1) develop and disseminate model programs to reduce 
     violence in schools,
       (2) educate students about the dangers associated with 
     guns, and
       (3) provide violence prevention information (including 
     information about safe gun storage) to children and their 
     parents.
       (d) Application.--To be eligible to receive a grant under 
     subsection (b), an elementary or secondary school shall 
     prepare and submt to the Secretary of Education an 
     application at such time, in such manner, and containing such 
     information as the Secretary may require.
       (e) Public Service Announcements.--The Secretary of 
     Education shall provide for the development and dissemination 
     of public service announcements and other information on ways 
     to reduce violence in our Nation's schools, including safe 
     gun storage and other measures.
       (f) Authorization of Appropriations.--For the purpose of 
     carrying out this Act, there are authorized to be 
     appropriated funds of up to $7,000,000 for fiscal year 2001 
     and

[[Page 2051]]

     such sums as may be necessary for each of the four succeeding 
     fiscal years.
                                 ______
                                 

                        BOXER AMENDMENT NO. 2880

  Mrs. BOXER proposed an amendment to the bill, S. 1134, supra; as 
follows:

       At the end, add the following:

     SEC. ___. PESTICIDE APPLICATION IN SCHOOLS.

       (a) In General.--Each school that receives Federal funding 
     shall--
       (1) take steps to reduce the exposure of children to 
     pesticides on school grounds, both indoors and outdoors; and
       (2) provide parents and guardians of children that attend 
     the school with advance notification of certain pesticide 
     applications on school grounds in accordance with subsections 
     (b) and (c).
       (b) EPA List of Toxic Pesticides.--
       (1) In general.--The Administrator of the Environmental 
     Protection Agency shall distribute to each school that 
     receives Federal funding the current manual of the 
     Environmental Protection Agency that guides schools in the 
     establishment of a least toxic pesticide policy.
       (2) List.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator of the Environmental 
     Protection Agency shall provide each school that receives 
     Federal funding with a list of pesticides that contain a 
     substance that the Administrator has identified as a known or 
     probable carcinogen, a developmental or reproductive toxin, 
     or a category I or II acute nerve toxin.
       (c) Parental Notification of Toxic Pesticide Applications 
     in Schools.--
       (1) In general.--On or after the date that is 18 months 
     after the date of enactment of this Act, any school that 
     receives Federal funding shall not apply any pesticide 
     described in paragraph (b)(2) on school grounds, either 
     indoors or outdoors, unless an administrative official of the 
     school provides notice of the planned application to parents 
     and guardians of children that attend the school not later 
     than 48 hours before the application of the pesticide.
       (2) Notice.--The notice described in paragraph (1)--
       (A) shall include--
       (i) a description of the intended area of application; and
       (ii) the name of each pesticide to be applied; and
       (B) shall indicate whether the pesticide is a known or 
     probable carcinogen, a developmental or reproductive toxin, 
     or a category I or II acute nerve toxin.
       (3) Incorporation of notice.--The notice described in 
     paragraph (1) may be incorporated in any notice that is being 
     sent to parents and guardians at the time at which the 
     pesticide notice is required to be sent.
                                 ______
                                 

                        ROTH AMENDMENT NO. 2881

  Mr. COVERDELL (for Mr. Roth) proposed an amendment to the bill, S. 
1134, supra; as follows:

       On page 5, line 10, strike ``if'' and all that follows 
     through line 12, and insert ``if the homeschool operates as a 
     private school or a homeschool under State law.
       On page 9, strike lines 18 through 20, and insert the 
     following:
       (g) Renaming Education Individual Retirement Accounts as 
     Education Savings Accounts.--
       (1) In general.--
       (A) Section 530 (as amended by the preceding provisions of 
     this section) is amended by striking ``education individual 
     retirement account'' each place it appears and inserting 
     ``education savings account''.
       (B) The heading for paragraph (1) of section 530(b) is 
     amended by striking ``Education individual retirement 
     account'' and inserting ``Education savings account''.
       (C) The heading for section 530 is amended to read as 
     follows:

     ``SEC. 530. EDUCATION SAVINGS ACCOUNTS.''.

       (D) The item in the table of contents for part VII of 
     subchapter F of chapter 1 relating to section 530 is amended 
     to read as follows:

``Sec. 530. Education savings accounts.''.

       (2) Conforming amendments.--
       (A) The following provisions are each amended by striking 
     ``education individual retirement'' each place it appears and 
     inserting ``education savings'':
       (i) Section 25A(e)(2).
       (ii) Section 26(b)(2)(E).
       (iii) Section 72(e)(9).
       (iv) Section 135(c)(2)(C).
       (v) Subsections (a) and (e) of section 4973.
       (vi) Subsections (c) and (e) of section 4975.
       (vii) Section 6693(a)(2)(D).
       (B) The headings for each of the following provisions are 
     amended by striking ``education individual retirement 
     accounts'' each place it appears and inserting ``education 
     savings accounts''.
       (i) Section 72(e)(9).
       (ii) Section 135(c)(2)(C).
       (iii) Section 4973(e).
       (iv) Section 4975(c)(5).
       (h) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2000.
       (2) Subsection (g).--The amendments made by subsection (g) 
     shall take effect on the date of the enactment of this Act.
       On page 13, line 14, strike ``individual retirement'' and 
     insert ``savings''.
       On page 15, strike lines 12 through 14, and insert the 
     following:
       (e) Definition of Qualified Higher Education Expenses.--
       (1) In general.--Subparagraph (A) of section 529(e)(3) 
     (relating to definition of qualified higher education 
     expenses) is amended to read as follows:
       ``(A) In general.--The term `qualified higher education 
     expenses' means--
       ``(i) tuition and fees required for the enrollment or 
     attendance of a designated beneficiary at an eligible 
     educational institution for courses of instruction of such 
     beneficiary at such institution, and
       ``(ii) expenses for books, supplies, and equipment which 
     are incurred in connection with such enrollment or 
     attendance, but not to exceed the allowance for books and 
     supplies included in the cost of attendance (as defined in 
     section 472 of the Higher Education Act of 1965 (20 U.S.C. 
     1087ll), as in effect on the date of the enactment of the 
     Affordable Education of 2000) as determined by the eligible 
     educational institution.''.
       (f) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after December 31, 2000.
       (2) Qualified higher education expenses.--The amendments 
     made by subsection (e) shall apply to amounts paid for 
     courses beginning after December 31, 2000.
       On page 27, strike lines 5 through 7, and insert the 
     following:
       (b) Effective Date.--Subparagraph (E) of section 149(b)(3) 
     of the Internal Revenue Code of 1986, as added by the 
     amendment made by subsection (a), shall take effect upon the 
     enactment, after the date of the enactment of this Act, of 
     legislation expressly authorizing the Federal Housing Finance 
     Board to allocate authority to Federal Home Loan Banks to 
     guarantee any bond described in such subparagraph, but only 
     if such legislation makes specific reference to such 
     subparagraph.
       On page 31, after line 7, add the following:

     SEC. __. DISCLOSURE OF FIRE SAFETY STANDARDS AND MEASURES 
                   WITH RESPECT TO CAMPUS BUILDINGS.

       (a) Short Title.--This section may be cited as the ``Campus 
     Fire Safety Right to Know Act''.
       (b) Amendment.--Section 485 of the Higher Education Act of 
     1965 (20 U.S.C. 1092) is amended--
       (1) in subsection (a)(1)--
       (A) by striking ``and'' at the end of subparagraph (N);
       (B) by striking the period at the end of subparagraph (O) 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(P) the fire safety report prepared by the institution 
     pursuant to subsection (h).''; and
       (2) by adding at the end the following new subsection:
       ``(h) Disclosure of Fire Safety Standards and Measures.--
       ``(1) Fire safety reports required.--Each eligible 
     institution participating in any program under this title 
     shall, beginning in academic year 2001-2002, and each year 
     thereafter, prepare, publish, and distribute, through 
     appropriate publications or mailings, to all current students 
     and employees, and to any applicant for enrollment or 
     employment upon request, an annual fire safety report 
     containing at least the following information with respect to 
     the campus fire safety practices and standards of that 
     institution:
       ``(A) A statement that identifies each student housing 
     facility of the institution, and whether or not each such 
     facility is equipped with a fire sprinkler system or another 
     equally protective fire safety system.
       ``(B) Statistics concerning the occurrence on campus, 
     during the 2 preceding calendar years for which data are 
     available, of fires and false fire alarms.
       ``(C) For each such occurrence, a statement of the human 
     injuries or deaths and the structural damage caused by the 
     occurrence.
       ``(D) Information regarding fire alarms, smoke alarms, the 
     presence of adequate fire escape planning or protocols (as 
     defined in local fire codes), rules on portable electrical 
     appliances, smoking and open flames (such as candles), 
     regular mandatory supervised fire drills, and planned and 
     future improvement in fire safety.
       ``(2) Rule of construction.--Nothing in this subsection 
     shall be construed to authorize the Secretary to require 
     particular policies, procedures, or practices by institutions 
     of higher education with respect to fire safety.
       ``(3) Reports.--Each institution participating in any 
     program under this title shall make periodic reports to the 
     campus community on fires and false fire alarms that are 
     reported to local fire departments in a manner that will aid 
     in the prevention of similar occurrences.
       ``(4) Reports to secretary.--On an annual basis, each 
     institution participating in any program under this title 
     shall submit to the Secretary a copy of the statistics 
     required to be made available under paragraph (1)(B). The 
     Secretary shall--

[[Page 2052]]

       ``(A) review such statistics;
       ``(B) make copies of the statistics submitted to the 
     Secretary available to the public; and
       ``(C) in coordination with representatives of institutions 
     of higher education, identify exemplary fire safety policies, 
     procedures, and practices and disseminate information 
     concerning those policies, procedures, and practices that 
     have proven effective in the reduction of campus fires.
       ``(5) Definition of campus.--In this subsection the term 
     `campus' has the meaning provided in subsection (f)(6).''.
       (c) Report to Congress by Secretary of Education.--Not 
     later than 1 year after the date of enactment of this Act, 
     the Secretary of Education shall prepare and submit to the 
     Congress a report containing--
       (1) an analysis of the current status of fire safety 
     systems in college and university facilities, including 
     sprinkler systems;
       (2) an analysis of the appropriate fire safety standards to 
     apply to these facilities, which the Secretary shall prepare 
     after consultation with such fire safety experts, 
     representatives of institutions of higher education, and 
     other Federal agencies as the Secretary, in the Secretary's 
     discretion, considers appropriate;
       (3) an estimate of the cost of bringing all nonconforming 
     dormitories and other campus buildings up to current new 
     building codes; and
       (4) recommendations from the Secretary concerning the best 
     means of meeting fire safety standards in all college and 
     university facilities, including recommendations for methods 
     to fund such cost.

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