[House Report 108-659]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-659

======================================================================



 
         VOCATIONAL AND TECHNICAL EDUCATION FOR THE FUTURE ACT

                                _______
                                

 September 7, 2004.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    Mr. Boehner, from the Committee on Education and the Workforce, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 4496]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 4496) to amend the Carl D. Perkins 
Vocational and Technical Education Act of 1998 to strengthen 
and improve programs under that Act, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Vocational and Technical Education for 
the Future Act''.

SEC. 2. REFERENCES.

  Wherever in this Act an amendment is expressed in terms of an 
amendment to or repeal of a section or other provision, the amendment 
or repeal shall be considered to be made to a section or other 
provision of the Carl D. Perkins Vocational and Technical Education Act 
of 1998 (20 U.S.C. 2301 et seq.).

SEC. 3. PURPOSES AND DEFINITIONS.

  (a) Purposes.--Section 2(2) (20 U.S.C. 2301(2)) is amended by 
inserting ``rigorous and challenging'' after ``integrate''.
  (b) Definitions.--Section 3 (20 U.S.C. 2302) is amended--
          (1) by striking paragraph (26) and redesignating paragraphs 
        (21) through (25) as paragraphs (23) through (27), and 
        paragraphs (27) through (30) as paragraphs (29) through (32), 
        respectively;
          (2) by redesignating paragraphs (4) through (20) as 
        paragraphs (5) through (21), respectively, and inserting after 
        paragraph (3) the following:
          ``(4) Articulation agreement.--The term `articulation 
        agreement' means a written commitment, agreed upon at the State 
        level or approved annually and facilitated by the lead 
        administrators of the secondary and postsecondary consortia 
        members as described in section 135(b)(3)(A), to a program 
        designed to provide students with a nonduplicative sequence of 
        progressive achievements leading to degrees, certificates, or 
        credentials in a tech-prep education program linked through 
        credit transfer agreements.'';
          (3) in paragraph (5) (as so redesignated), by inserting ``to 
        students (and parents, as appropriate)'' after ``providing 
        access'';
          (4) in paragraph (6) (as so redesignated), by striking 
        ``section 5206'' and inserting ``section 5210'';
          (5) in paragraph (7) (as so redesignated)--
                  (A) by striking ``method of instruction'' and 
                inserting ``method''; and
                  (B) by inserting ``rigorous and challenging'' after 
                ``required'';
          (6) in paragraph (11)(A) (as so redesignated), by striking 
        ``an'' and inserting ``a public or nonprofit private'';
          (7) in paragraph (18) (as so redesignated)--
                  (A) in the paragraph heading, by striking ``training 
                and employment'' and inserting ``fields'';
                  (B) by striking ``training and employment'' and 
                inserting ``fields''; and
                  (C) by inserting ``current and'' after ``technology, 
                and other'';
          (8) in paragraph (19) (as so redesignated), by striking ``the 
        Republic of the Marshall Islands, the Federated States of 
        Micronesia,'';
          (9) by inserting after paragraph (21) (as so redesignated) 
        the following:
          ``(22) Scientifically based research.--The term 
        `scientifically based research' has the meaning given that term 
        in section 9101(37) of the Elementary and Secondary education 
        Act of 1965 (20 U.S.C. 780137).'';
          (10) in paragraph (25) (as so redesignated)--
                  (A) in subparagraph (C), by striking ``training and 
                employment'' and inserting ``fields'';
                  (B) in subparagraph (E), by striking ``and'';
                  (C) in subparagraph (F)--
                          (i) by striking ``individuals with other 
                        barriers to educational achievement, 
                        including''; and
                          (ii) by striking the period and inserting ``; 
                        and''; and
                  (D) by inserting after subparagraph (F) the 
                following:
                  ``(G) individuals with other barriers to educational 
                achievement, as determined by the State.'';
          (11) by inserting after paragraph (27) (as so redesignated) 
        the following:
          ``(28) Supportive services.--The term `supportive services' 
        means services such as transportation, child care, dependent 
        care, and needs-based payments, that are necessary to enable an 
        individual to participate in activities authorized under this 
        Act.'';
          (12) in paragraph (29) (as so redesignated), by striking 
        ``section 2'' and inserting ``section 2(a)(4)'';
          (13) in paragraph (30) (as so redesignated)--
                  (A) by inserting ``of subsection (a)'' after 
                ``paragraph (2)''; and
                  (B) by striking ``paragraph (5)(A) of such section'' 
                and inserting ``paragraph (5)(A) of such subsection''; 
                and
          (14) by amending paragraph (31)(A) (as so redesignated) to 
        read as follows:
                  ``(A) offer a sequence of courses that--
                          ``(i) provides individuals with the rigorous 
                        and challenging academic and technical 
                        knowledge and skills the individuals need to 
                        prepare for further education and for careers 
                        (other than careers requiring a master's or 
                        doctoral degree) in current or emerging 
                        employment sectors;
                          ``(ii) may include the provision of skills or 
                        courses necessary to enroll in a sequence of 
                        courses that meet the requirements of this 
                        subparagraph; and
                          ``(iii) provides, at the postsecondary level, 
                        for a 1-year certificate, an associate degree, 
                        or industry recognized credential; and''.

SEC. 4. TRANSITION PROVISIONS.

  Section 4 (20 U.S.C. 2303) is amended--
          (1) by striking ``the Carl D. Perkins Vocational and Applied 
        Technology Education Act'' and inserting `` the `Carl D. 
        Perkins Vocational and Technical Education Act of 1998' ''; and
          (2) by striking ``the Carl D. Perkins Vocational and Applied 
        Technology Education Amendments of 1998'' and inserting ``the 
        Vocational and Technical Education for the Future Act. Each 
        eligible agency shall be assured 1 full fiscal year for 
        transition, to plan for and implement the requirements of this 
        Act''.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

  Section 8 (20 U.S.C. 2307) is amended to read as follows:

``SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

  ``There is authorized to be appropriated to carry out this Act (other 
than subsection (a), (b), and (c) of section 114, and sections 117 and 
118) $1,307,000,000 for fiscal year 2005 and such sums as may be 
necessary for each of fiscal years 2006 through 2010.''.

SEC. 6. PROHIBITIONS.

  (a) In General.--The Carl D. Perkins Vocational and Technical 
Education Act of 1998 (20 U.S.C. 2301 et seq.) is amended by adding 
after section 8 the following new section:

``SEC. 9. PROHIBITIONS.

  ``(a) Local Control.--Nothing in this Act shall be construed to 
authorize an officer or employee of the Federal government to mandate, 
direct, or control a State, local educational agency, or school's 
curriculum, program of instruction, or allocation of State or local 
resources, or mandate a State or any subdivision thereof to spend any 
funds or incur any costs not paid for under this Act.
  ``(b) No Preclusion of Other Assistance.--Any State that declines to 
submit an application to the Secretary for assistance under this Act 
shall not be precluded from applying for assistance under any other 
program administered by the Secretary.
  ``(c) Prohibition on Requiring Federal Approval or Certification of 
Standards.--Notwithstanding any other provision of Federal law, no 
State shall be required to have academic and vocational and technical 
content or student academic and vocational and technical achievement 
standards approved or certified by the Federal government, in order to 
receive assistance under this Act.
  ``(d) Rule of Construction.--Nothing in this section shall be 
construed to affect requirements under section 113.''.
  (b) Conforming Amendment.--The table of contents in section 1(b) is 
amended by inserting after the item relating to section 8, the 
following new item:

``Sec. 9. Prohibitions.''.

SEC. 7. ALLOTMENT AND ALLOCATION TO STATES.

  (a) Allotment for National Activities for 2005.--Section 111(a)(1) 
(20 U.S.C. 2321(a)(1)) is amended to read as follows:
          ``(1) Reservations.--From the sum appropriated under section 
        8 for each fiscal year, the Secretary shall reserve--
                  ``(A) 0.12 percent to carry out section 115;
                  ``(B) 1.50 percent to carry out section 116, of 
                which--
                          ``(i) 1.25 percent of the sum shall be 
                        available to carry out section 116(b); and
                          ``(ii) 0.25 percent of the sum shall be 
                        available to carry out section 116(h); and
                  ``(C) 0.54 percent to carry out section 114(d).''.
  (b) Minimum Allotments.--Section 111(a) (20 U.S.C. 2321(a)) is 
further amended--
          (1) in paragraph (3), by striking ``(or in the case of fiscal 
        year 1999'' and all that follows through ``Amendments of 
        1998)'' each place it appears and inserting ``(or in the case 
        of fiscal year 2005 only, under this section and under title II 
        of this Act, as such section and title were in effect on the 
        day before the date of enactment of the Vocational and 
        Technical Education for the Future Act)''; and
          (2) by amending paragraph (4)(A) to read as follows:
                  ``(A) In general.--No State shall receive an 
                allotment under this section for a fiscal year that is 
                less than the allotment the State received for fiscal 
                year 2004 under this section and under title II of this 
                Act (as such section and title were in effect on the 
                day before the date of enactment of the Vocational and 
                Technical Education for the Future Act).''.
  (c) Within State Allocation.--Section 112 (20 U.S.C. 2322) is 
amended--
          (1) by amending subsection (a) to read as follows:
  ``(a) Allocation Formula.--From the amount allotted to each State 
under section 111 for a fiscal year, the State board (hereinafter 
referred to as the `eligible agency') shall allocate such amount as 
follows:
          ``(1) Subject to paragraph (4), not less than 88 percent 
        shall be made available for distribution under section 131 or 
        132, of which the eligible agency shall first make available 
        for the activities described in section 135(b)(3) not less than 
        the amount allotted in fiscal year 2004 to such eligible agency 
        under title II of this Act (as such title was in effect on the 
        day before the date of enactment of the Vocational and 
        Technical Education for the Future Act), reduced by the 
        percentage by which the amount allotted to the State under 
        section 111 for the fiscal year is less than the amount 
        allotted under such section to such State for fiscal year 2004. 
        Of the remainder of the 88 percent, not more than 10 percent 
        may be used in accordance with subsection (c).
          ``(2) Subject to paragraph (4), not more than 10 percent 
        shall be made available to carry out State leadership 
        activities described in section 124, of which--
                  ``(A) an amount equal to not more than 1 percent of 
                the amount allotted to the State under section 111 for 
                the fiscal year shall be made available to serve 
                individuals in State institutions, such as State 
                correctional institutions and institutions that serve 
                individuals with disabilities; and
                  ``(B) not less than $60,000 and not more than 
                $150,000 shall be available for services that prepare 
                individuals for nontraditional fields.
          ``(3) An amount equal to not more than 2 percent, or 
        $250,000, whichever is greater, shall be made available for 
        administration of the State plan, which may be used for the 
        costs of--
                  ``(A) developing the State plan;
                  ``(B) reviewing the local plan;
                  ``(C) monitoring and evaluating program 
                effectiveness;
                  ``(D) assuring compliance with all applicable Federal 
                laws; and
                  ``(E) providing technical assistance.
          ``(4) If the amount allocated for any fiscal year under 
        paragraph (2) shall be less than the amount allocated under 
        such paragraph for fiscal year 2004, additional amounts may be 
        made available from the amount allocated under paragraph (1) 
        for the purposes described in paragraph (2). If such additional 
        amounts are made available under this paragraph, the percentage 
        of the total amount allotted under section 111 that is 
        allocated for the purposes described in paragraph (2) shall not 
        exceed the percentage of the total amount allotted under 
        section 111 for fiscal year 2004 that was allocated under 
        paragraph (2) for fiscal year 2004.''; and
          (2) in subsection (c)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (B), by striking the 
                        semicolon and inserting ``; and'';
                          (ii) in subparagraph (C), by striking ``; 
                        and'' and inserting a period; and
                          (iii) by striking subparagraph (D); and
                  (B) in paragraph (2), by striking ``through (D)'' and 
                inserting ``through (C)''.

SEC. 8. ACCOUNTABILITY.

  (a) Purpose.--Section 113(a) (20 U.S.C. 2323(a)) is amended--
          (1) by striking ``establish a State'' and inserting ``support 
        a State and local''; and
          (2) by inserting ``and its eligible recipients'' after 
        ``effectiveness of the State''.
  (b) State Performance Measures.--Section 113(b) (20 U.S.C. 2323(b)) 
is amended--
          (1) in paragraph (2)--
                  (A) by redesignating subparagraphs (B) through (D) as 
                subparagraphs (C) through (E), respectively;
                  (B) in subparagraph (A)--
                          (i) in the subparagraph heading, by inserting 
                        ``for secondary students'' after 
                        ``performance'';
                          (ii) by inserting ``of secondary students 
                        that are, to the extent practicable, valid and 
                        reliable and'' after ``indicators of 
                        performance'';
                          (iii) in clause (i), by striking ``State 
                        established academic,'' and inserting 
                        ``academic content and achievement standards, 
                        as established by the State under section 
                        1111(b)(1) of the Elementary and Secondary 
                        Education Act of 1965 (20 U.S.C. 
                        6311(b)(1)),'';
                          (iv) in clause (ii)--
                                  (I) by striking ``or its recognized 
                                equivalent'' and inserting ``or the 
                                General Educational Development 
                                credential (including recognized 
                                alternative standards for individuals 
                                with disabilities)''; and
                                  (II) by striking ``, or a 
                                postsecondary degree or credential'';
                          (v) by amending clause (iii) to read as 
                        follows:
                          ``(iii) Student graduation rates (as 
                        described in section 111(b)(2)(C)(vi) of the 
                        Elementary and Secondary Education Act of 1965 
                        (20 U.S.C. 6311(b)(2)(C)(vi))), placement in 
                        postsecondary education or advanced training, 
                        placement in military service, or placement in 
                        employment.''; and
                          (vi) in clause (iv), by striking ``training 
                        and employment'' and inserting ``fields'';
                  (C) by inserting after subparagraph (A) the 
                following:
                  ``(B) Core indicators of performance for 
                postsecondary students.--Each eligible agency shall 
                identify in the State plan core indicators of 
                performance of postsecondary students that are, to the 
                extent practicable, valid and reliable, and that 
                include, at a minimum, measures of each of the 
                following:
                          ``(i) Student attainment of challenging 
                        academic and vocational and technical skill 
                        proficiencies.
                          ``(ii) Student retention in postsecondary 
                        education, attainment of an associate degree or 
                        postsecondary credential, or transfer to a 
                        baccalaureate degree program.
                          ``(iii) Placement in military service or 
                        placement or retention in employment.
                          ``(iv) Student participation in and 
                        completion of vocational and technical 
                        education programs in nontraditional fields.'';
                  (D) in subparagraph (C) (as so redesignated), by 
                striking ``under the title'' and inserting ``under this 
                title''; and
                  (E) in subparagraph (D) (as so redesignated), by 
                inserting ``vocational and technical education'' after 
                ``has developed State''; and
          (2) in paragraph (3)--
                  (A) by amending the paragraph heading to read as 
                follows:
          ``(3) State levels of performance.--''; and
                  (B) in subparagraph (A)--
                          (i) in clause (i)--
                                  (I) by striking ``paragraph (2)(A)'' 
                                and inserting ``subparagraphs (A) and 
                                (B) of paragraph (2)''; and
                                  (II) in subclause (II), by striking 
                                ``to continually'' and all that follows 
                                through ``performance'', and inserting 
                                ``to make continuous and substantial 
                                improvement in the academic and 
                                vocational and technical achievement'';
                          (ii) by amending clause (v) to read as 
                        follows:
                          ``(v) Agreement on state adjusted levels of 
                        performance for subsequent years.--
                                  ``(I) 3rd and 4th program years.--
                                Prior to the third program year covered 
                                by the State plan, the Secretary and 
                                each eligible agency shall reach 
                                agreement on the State adjusted levels 
                                of performance for each of the core 
                                indicators of performance for the third 
                                and fourth programs years covered by 
                                the State plan, taking into account the 
                                factors described in clause (vi).
                                  ``(II) 5th and 6th program years.--
                                Prior to the fifth program year covered 
                                by the State plan, the Secretary and 
                                each eligible agency shall reach 
                                agreement on the State adjusted levels 
                                of performance for each of the core 
                                indicators of performance for the fifth 
                                and sixth programs years covered by the 
                                State plan, taking into account the 
                                factors described in clause (vi).
                                  ``(III) Agreements incorporated into 
                                state plan.--The State adjusted levels 
                                of performance agreed to under this 
                                clause shall be considered the State 
                                adjusted levels of performance for the 
                                State for such years and shall be 
                                incorporated into the State plan.'';
                          (iii) in clause (vi)(II), by inserting ``and 
                        substantial'' after ``continuous''; and
                          (iv) in clause (vii), by striking ``under 
                        clause (iii) or (iv)'' and inserting ``under 
                        clause (iii) or (v)''.
  (c) Local Levels of Performance.--Section 113(b) is further amended 
by adding at the end the following:
          ``(4) Local levels of performance.--
                  ``(A) Local adjusted levels of performance for core 
                indicators of performance.--
                          ``(i) In general.--Each eligible recipient 
                        shall establish in the local plan submitted 
                        under section 134, levels of performance for 
                        each of the core indicators of performance 
                        described in paragraph (2)(A) and (B), as 
                        appropriate for the eligible recipient, for 
                        vocational and technical education activities 
                        authorized under this title. The levels of 
                        performance established under this subparagraph 
                        shall, at a minimum--
                                  ``(I) be expressed in a percentage or 
                                numerical form, so as to be objective, 
                                quantifiable, and measurable; and
                                  ``(II) require the eligible recipient 
                                to make continuous and substantial 
                                improvement in the academic and 
                                vocational and technical achievement of 
                                vocational and technical education 
                                students.
                          ``(ii) Identification in the local plan.--
                        Each eligible recipient shall identify, in the 
                        local plan submitted under section 134, levels 
                        of performance for each of the core indicators 
                        of performance for the first 2 program years 
                        covered by the local plan.
                          ``(iii) Agreement on local adjusted levels of 
                        performance for first 2 years.--The eligible 
                        agency and each eligible recipient shall reach 
                        agreement on the levels of performance for each 
                        of the core indicators of performance, for the 
                        first 2 program years covered by the local 
                        plan, taking into account the levels identified 
                        in the local plan under clause (ii) and the 
                        factors described in clause (v). The levels of 
                        performance agreed to under this clause shall 
                        be considered to be the local adjusted level of 
                        performance for the eligible recipient for such 
                        years and shall be incorporated into the local 
                        plan prior to the approval of such plan.
                          ``(iv) Agreement on local adjusted levels of 
                        performance for subsequent years.--
                                  ``(I) 3rd and 4th program years.--
                                Prior to the third program year covered 
                                by the local plan, the eligible agency 
                                and each eligible recipient shall reach 
                                agreement on the local adjusted levels 
                                of performance for each of the core 
                                indicators of performance for the third 
                                and fourth program years covered by the 
                                local plan, taking into account the 
                                factors described in clause (v).
                                  ``(II) 5th and 6th program years.--
                                Prior to the fifth program year covered 
                                by the local plan, the eligible agency 
                                and each eligible recipient shall reach 
                                agreement on the local adjusted levels 
                                of performance for each of the core 
                                indicators of performance for the fifth 
                                and sixth program years covered by the 
                                local plan, taking into account the 
                                factors described in clause (v).
                                  ``(III) Agreements incorporated into 
                                local plan.--The local adjusted levels 
                                of performance agreed to under this 
                                clause shall be considered to be the 
                                local adjusted levels of performance 
                                for the eligible recipient for such 
                                years and shall be incorporated into 
                                the local plan.
                          ``(v) Factors.--The agreement described in 
                        clause (iii) or (iv) shall take into account--
                                  ``(I) how the levels of performance 
                                involved compare with the local 
                                adjusted levels of performance 
                                established for other eligible 
                                recipients taking into account factors 
                                including the characteristics of 
                                participants when the participants 
                                entered the program and the services or 
                                instruction to be provided; and
                                  ``(II) the extent to which such 
                                levels of performance promote 
                                continuous and substantial improvement 
                                on the indicators of performance by 
                                such eligible recipient.
                          ``(vi) Revisions.--If unanticipated 
                        circumstances arise with respect to an eligible 
                        recipient resulting in a significant change in 
                        the factors described in clause (v)(II), the 
                        eligible recipient may request that the local 
                        adjusted levels of performance agreed to under 
                        clause (iii) or (iv) be revised. The eligible 
                        agency shall issue objective criteria and 
                        methods for making such revisions.
                  ``(B) Levels of performance for additional 
                indicators.--Each eligible recipient may identify in 
                the local plan, local levels of performance for any 
                additional indicators of performance. Such levels shall 
                be considered to be the local levels of performance for 
                purposes of this title.
                  ``(C) Local report.--
                          ``(i) Content of report.--Each eligible 
                        recipient that receives an allotment under 
                        section 111 shall annually prepare and submit 
                        to the eligible agency a report, regarding--
                                  ``(I) the progress of such recipient 
                                in achieving the local adjusted levels 
                                of performance on the core indicators 
                                of performance; and
                                  ``(II) in the case of an eligible 
                                recipient that receives funds described 
                                in section 112(a) for activities 
                                described in section 135(b)(3), the 
                                progress in achieving the local 
                                adjusted levels of performance on the 
                                core indicators with respect to tech 
                                prep program participants.
                          ``(ii) Disaggregation of data.--Each eligible 
                        recipient shall--
                                  ``(I) disaggregate data for each of 
                                the indicators of performance under 
                                section 113(b)(2) for the categories of 
                                students enumerated under section 
                                1111(b)(2)(C)(v)(II) of the Elementary 
                                and Secondary Education Act of 1965 
                                that are served under this Act; and
                                  ``(II) identify and quantify any 
                                disparities or gaps in performance 
                                between any such category of students 
                                and the performance of all students 
                                served by the eligible recipient under 
                                the Act.
                          ``(iii) Rules for reporting of data.--The 
                        disaggregation of data under clause (ii) shall 
                        be required except in a case in which the 
                        number of students in a category is 
                        insufficient to yield statistically reliable 
                        information or in which the results would 
                        reveal personally identifiable information 
                        about an individual student.
                          ``(iv) Availability.--The report described in 
                        clause (i) shall be made available to the 
                        public through a variety of formats, including 
                        electronically or through the Internet.''.
  (d) State Report.--Section 113(c) (20 U.S.C. 2323(c)) is amended--
          (1) by redesignating paragraphs (2) and (3) as paragraphs (4) 
        and (5), respectively, and inserting after paragraph (1) the 
        following:
          ``(2) Disaggregation of data.--Each eligible agency under 
        this subsection shall--
                  ``(A) disaggregate data for each of the indicators of 
                performance under section 113(b)(2) for the categories 
                of students enumerated under section 
                1111(b)(2)(C)(v)(II) of the Elementary and Secondary 
                Education Act of 1965 that are served under this Act; 
                and
                  ``(B) identify and quantify any disparities or gaps 
                in performance between any such category of students 
                and the performance of all students served by the 
                eligible agency under the Act.
          ``(3) Rules for reporting of data.--The disaggregation of 
        data under paragraph (2) shall be required except in a case in 
        which the number of students in a category is insufficient to 
        yield statistically reliable information or in which the 
        results would reveal personally identifiable information about 
        an individual student.''; and
          (2) in paragraph (4) (as so redesignated)--
                  (A) by striking ``special populations'' and inserting 
                ``each of the populations described in section 3(25) 
                and the populations described in section 
                1111(h)(1)(C)(i) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6311(h)(1)(C)(i))''; 
                and
                  (B) by striking ``have made'' and inserting ``has 
                made''.

SEC. 9. NATIONAL ACTIVITIES.

  (a) Program Performance Information.--Section 114(a)(3) (20 U.S.C. 
2324(a)(3)) is amended by inserting ``in the aggregate'' after 
``international comparisons''.
  (b) Evaluation and Assessment.--Section 114(c) (20 U.S.C. 2324(c)) is 
amended--
          (1) by amending paragraph (2) to read as follows:
          ``(2) Independent advisory panel.--The Secretary shall 
        appoint an independent advisory panel, consisting of academic 
        and vocational and technical education educators, 
        administrators, experts in evaluation, research, and 
        assessment, representatives of labor organizations, businesses, 
        parents, guidance and counseling professionals, and other 
        individuals with relevant expertise, to advise the Secretary on 
        the implementation of the assessment described in paragraph 
        (3), including the issues to be addressed and the methodology 
        of the studies involved to ensure the assessment adheres to the 
        highest standards of quality. The advisory panel shall transmit 
        to the Secretary and to Congress an independent analysis of the 
        findings and recommendations resulting from such assessment. 
        The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
        apply to the panel established under this subsection.'';
          (2) in paragraph (3)--
                  (A) in subparagraph (A), by inserting ``the 
                implementation of the'' after ``and assessment of'';
                  (B) in subparagraph (B)--
                          (i) by inserting ``but shall not be limited 
                        to'' after ``paragraph (1) shall include'';
                          (ii) by striking clauses (i), (ii), (iv), and 
                        (vii) and redesignating clauses (iii), (v), 
                        (vi), and (viii) as clauses (i) through (iv), 
                        respectively;
                          (iii) in clause (i) (as so redesignated), by 
                        striking ``, and academic, curricula in 
                        vocational and technical education programs,'' 
                        and inserting ``education (such as meeting 
                        State established teacher certification or 
                        licensing requirements)''; and
                          (iv) in clause (ii) (as so redesignated)--
                                  (I) by striking ``and employment 
                                outcomes'' and all that follows through 
                                ``including analyses of'' and inserting 
                                ``and vocational and technical 
                                education achievement and employment 
                                outcomes of vocational and technical 
                                education students, including analyses 
                                of'';
                                  (II) in subclause (I), by striking 
                                ``and tech-prep students'' and 
                                inserting ``and students participating 
                                in the activities described in section 
                                135(b)(3)'' ;
                                  (III) in subclause (II), by striking 
                                ``academic, and vocational and 
                                technical, education'' and inserting 
                                ``rigorous and challenging academic and 
                                vocational and technical education, 
                                including a review of the effect of 
                                integrated rigorous and challenging 
                                academic and vocational and technical 
                                education on the achievement of 
                                students''; and
                                  (IV) in subclause (III), by inserting 
                                ``, particularly those in which math 
                                and science skills are critical,'' 
                                after ``high-skill careers''; and
                  (C) in subparagraph (C)--
                          (i) in clause (i)--
                                  (I) by striking ``the Committee on 
                                Education and the Workforce of the 
                                House of Representatives and the 
                                Committee on Labor and Human Resources 
                                of the Senate'' and inserting 
                                ``Congress''; and
                                  (II) by striking ``2002'' and 
                                inserting ``2008'' both places it 
                                appears; and
                          (ii) in clause (ii), by striking ``the 
                        Committee on Education and the Workforce of the 
                        House of Representatives, the Committee on 
                        Labor and Human Resources of the Senate,'' and 
                        inserting ``Congress'';
          (3) in paragraph (5)(A)--
                  (A) by striking ``to carry out research'' each place 
                it appears, and inserting ``to carry out scientifically 
                based research'';
                  (B) in clause (i), by inserting ``scientifically 
                based'' after ``programs, including'';
                  (C) in clause (ii), by inserting ``that are 
                integrated with rigorous and challenging academic 
                education'' after ``implementation of vocational and 
                technical education programs''; and
                  (D) in clause (iii)(I), by inserting ``and the 
                integration of those systems with the academic 
                education system'' after ``technical education 
                systems'';
          (4) in paragraph (6)--
                  (A) by striking:
          ``(6) Demonstrations and dissemination.--
                  ``(A) Demonstration program.--The'', and inserting:
          ``(6) Demonstrations and dissemination.--The''; and
                  (B) by striking subparagraph (B); and
          (5) in paragraph (8), by striking ``this section'' and all 
        that follows and inserting ``subsections (a), (b), and (c) of 
        this section, such sums as may be necessary for each of fiscal 
        years 2005 through 2010.''
  (c) Incentive Grants for Eligible Agencies.--Section 114 is further 
amended by adding at the end the following new subsection:
  ``(d) Incentive Grants for Eligible Agencies.--
          ``(1) In general.--From funds reserved under section 
        111(a)(1)(C), the Secretary may award grants to eligible 
        agencies for exemplary performance in carrying out programs 
        under this Act. Such awards shall be based on an eligible 
        agency exceeding State adjusted levels of performance 
        established under section 113(b) and showing sustained or 
        significant improvement.
          ``(2) Special consideration.--In awarding these grants, the 
        Secretary may consider--
                  ``(A) an eligible agency's success in effectively 
                developing connections between secondary education and 
                postsecondary education and training;
                  ``(B) an eligible agency's integration of rigorous 
                and challenging academic and technical coursework; and
                  ``(C) an eligible agency's progress in having special 
                populations participating in vocational and technical 
                education meet State adjusted levels of performance.
          ``(3) Use of funds.--The funds awarded to an eligible agency 
        under this subsection may be used to carry out any activities 
        authorized under section 124, including demonstrations of 
        innovative programs.''.

SEC. 10. OUTLYING AREAS, NATIVE AMERICAN PROGRAMS, AND TRIBALLY 
                    CONTROLLED INSTITUTIONS.

  (a) Assistance for the Outlying Areas.--Section 115 (20 U.S.C. 2325) 
is amended to read as follows:

``SEC. 115. ASSISTANCE FOR THE OUTLYING AREAS.

  ``(a) Outlying Areas.--From funds reserved pursuant to section 
111(a)(1)(A), the Secretary shall--
          ``(1) make a grant in the amount of $660,000 to Guam;
          ``(2) make a grant in the amount of $350,000 to each of 
        American Samoa and the Commonwealth of the Northern Mariana 
        Islands; and
          ``(3) make a grant in the amount of $160,000 to the Republic 
        of Palau.
  ``(b) Remainder.--Subject to the provisions of subsection (a), the 
Secretary shall make a grant of the remainder of funds reserved 
pursuant to section 111(a)(1)(A), in equal proportion, to each of Guam, 
American Samoa, and the Commonwealth of the Northern Mariana Islands, 
for the purpose of providing direct vocational and technical 
educational services, including--
          ``(1) teacher and counselor training and retraining;
          ``(2) curriculum development; and
          ``(3) the improvement of vocational and technical education 
        and training programs in secondary schools and institutions of 
        higher education, or improving cooperative education programs 
        involving both secondary schools and institutions of higher 
        education.
  ``(c) Restriction.--The Republic of Palau shall cease to be eligible 
to receive funding under this section upon entering into an agreement 
for extension of United States educational assistance under the Compact 
of Free Association after the date of enactment of the Vocational and 
Technical Education for the Future Act.''.
  (b) Native American Program.--Section 116 (20 U.S.C. 2326) is 
amended--
          (1) in subsection (a), by inserting a period at the end of 
        paragraph (5); and
          (2) in subsection (b)--
                  (A) in paragraph (1), by striking ``subsection (d)'' 
                and inserting ``subsection (c)''; and
                  (B) in paragraph (2), by striking ``(other than in 
                subsection (i))''.
  (c) Tribally Controlled Institutions.--Section 117 (20 U.S.C. 2327) 
is amended--
          (1) by amending subsection (b) to read as follows:
  ``(b) Uses of Grants.--Amounts made available under this section 
shall be used for vocational and technical education programs for 
Indian students and for instructional support costs of the grant, 
including the expenses described in subsection (e).'';
          (2) in subsection (c), by inserting after paragraph (2) the 
        following:
          ``(3) Indirect costs.--Notwithstanding any other provision of 
        law or regulation, the Secretary shall not require the use of a 
        restricted indirect cost rate for grants issued under this 
        section.'';
          (3) by striking subsection (g) and redesignating subsections 
        (h) and (i) as subsections (g) and (h), respectively; and
          (4) in subsection (h) (as so redesignated)--
                  (A) by striking ``$4,000,000 for fiscal year 1999 
                and''; and
                  (B) by striking ``the 4 succeeding fiscal years'' and 
                inserting ``fiscal years 2005 through 2010''.
  (d) Occupational and Employment Information.--Section 118 (20 U.S.C. 
2328) is amended--
          (1) by amending subsection (b) to read as follows:
  ``(b) State Level Activities.--
          ``(1) Designated entity.--In order for a State to receive a 
        grant under this section, the eligible agency and the Governor 
        of the State shall jointly designate an entity in the State 
        responsible for conducting the activities in this subsection.
          ``(2) Application.--The jointly designated agency shall 
        submit an application to the Secretary at the same time the 
        State submits its state plan under section 122. The application 
        shall be in such a manner and be accompanied by such 
        information as the Secretary may reasonably require. At a 
        minimum, the application shall describe how the jointly 
        designated agency will assist the eligible agency in meeting 
        its adjusted levels of performance under section 113(b).
          ``(3) Activities.--The jointly designated agency shall 
        conduct activities--
                  ``(A) to provide support for a career guidance and 
                academic counseling programs designed to promote 
                improved career and education decision making by 
                students (and parents, as appropriate) regarding 
                education and training options and preparations for 
                high skill, high wage occupations;
                  ``(B) to make available to students, parents, 
                teachers, administrators, and counselors, and to 
                improve accessibility with respect to, information and 
                planning resources that relate academic and vocational 
                and technical educational preparation to career goals 
                and expectations;
                  ``(C) to equip teachers, administrators, and 
                counselors with the knowledge, skills, and occupational 
                information needed to assist students and parents with 
                educational and other postsecondary opportunities and 
                education financing;
                  ``(D) to assist appropriate State entities in 
                tailoring resources and training for use by such 
                entities;
                  ``(E) to improve coordination and communication among 
                administrators and planners of programs authorized by 
                this Act and by section 15 of the Wagner-Peyser Act (29 
                U.S.C. 49l-2) at the Federal, State, and local levels 
                to ensure nonduplication of efforts and the appropriate 
                use of shared information and data; and
                  ``(F) to provide ongoing means for customers, such as 
                students and parents, to provide comments and feedback 
                on products and services and to update resources, as 
                appropriate, to better meet customer requirements.'';
          (2) in subsection (e)(1), by striking ``an identification'' 
        and inserting ``a description''; and
          (3) in subsection (f), by striking ``1999 through 2003'' and 
        inserting ``2005 through 2010''.

SEC. 11. STATE ADMINISTRATION.

   Section 121 (20 U.S.C. 2341) is amended to read as follows:

``SEC. 121. STATE ADMINISTRATION.

  ``(a) Eligible Agency Responsibilities.--The responsibilities of an 
eligible agency under this title shall include--
          ``(1) coordination of the development, submission, and 
        implementation of the State plan, and the evaluation of the 
        program, services, and activities assisted under this title, 
        including preparation for nontraditional fields;
          ``(2) consultation with the Governor and appropriate 
        agencies, groups, and individuals including parents, students, 
        teachers, representatives of businesses, labor organizations, 
        eligible recipients, State and local officials, and local 
        program administrators, involved in the planning, 
        administration, evaluation, and coordination of programs funded 
        under this title;
          ``(3) convening and meeting as an eligible agency (consistent 
        with State law and procedure for the conduct of such meetings) 
        at such time as the eligible agency determines necessary to 
        carry out the eligible agency's responsibilities under this 
        title, but not less than four times annually; and
          ``(4) the adoption of such procedures as the eligible agency 
        considers necessary to--
                  ``(A) implement State level coordination with the 
                activities undertaken by the State boards under section 
                111 of Public Law 105-220; and
                  ``(B) make available to the service delivery system 
                under section 121 of Public Law 105-220 within the 
                State a listing of all school dropout, postsecondary, 
                and adult programs assisted under this title.
  ``(b) Exception.--Except with respect to the responsibilities set 
forth in subsection (a), the eligible agency may delegate any of the 
other responsibilities of the eligible agency that involve the 
administration, operation, supervision of activities assisted under 
this title, in whole or in part, to one or more appropriate State 
agencies.''.

SEC. 12. STATE PLAN.

  Section 122 (20 U.S.C. 2342) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1), by striking ``5-year period'' 
                and inserting ``6-year period'';
                  (B) in paragraph (2)(B), by striking ``5 year State 
                plan'' and inserting ``6-year period''; and
                  (C) in paragraph (3), by striking ``(including 
                employers, labor organizations, and parents)'' and 
                inserting ``(including charter school authorizers and 
                organizers, employers, labor organizations, parents, 
                students, and community organizations)'';
          (2) in subsection (b)(1), by striking ``teachers, eligible 
        recipients, parents, students, interested community members'' 
        and inserting ``academic and vocational and technical education 
        teachers, eligible recipients, charter school authorizers and 
        organizers, parents, students, interested community members 
        (including parent and community organizations), institutions of 
        higher education'';
          (3) in subsection (c)--
                  (A) in paragraph (1)--
                          (i) by redesignating subparagraphs (A) 
                        through (D) as subparagraphs (B) through (E), 
                        respectively, and inserting before such 
                        subparagraphs (as so redesignated) the 
                        following:
                  ``(A) the development of model sequences of courses 
                for vocational and technical content areas that--
                          ``(i) incorporate both secondary and 
                        postsecondary education elements;
                          ``(ii) include rigorous and challenging 
                        academic content and vocational and technical 
                        content in a coordinated, nonduplicative 
                        progression of courses;
                          ``(iii) lead to a postsecondary 1-year 
                        certificate, associate or baccalaureate degree, 
                        or a proficiency credential in conjunction with 
                        a secondary school diploma; and
                          ``(iv) may be adopted by local educational 
                        agencies and postsecondary institutions to be 
                        offered as an option to students (and their 
                        parents as appropriate), when choosing future 
                        coursework;'';
                          (ii) in subparagraph (B) (as so 
                        redesignated), by inserting ``and how the 
                        eligible agency will distribute information 
                        identifying eligible recipients that offer 
                        elements of the model sequences of courses'' 
                        before the semicolon;
                          (iii) by amending subparagraph (C) (as so 
                        redesignated) to read as follows:
                  ``(C) the criteria that will be used by the eligible 
                agency to evaluate and approve eligible recipients for 
                funds under this title, including criteria to assess 
                the extent to which the local plan will promote 
                continuous and substantial improvement in academic 
                achievement and technical skill attainment;'';
                          (iv) in subparagraph (D) (as so 
                        redesignated)--
                                  (I) by inserting ``, both 
                                academically and technically,'' after 
                                ``students''; and
                                  (II) by striking ``; and'' and 
                                inserting ``, and how participating 
                                students will be made aware of such 
                                opportunities;'';
                          (v) in subparagraph (E) (as so redesignated), 
                        by inserting ``aligned with rigorous and 
                        challenging academic content'' before the 
                        semicolon; and
                          (vi) by inserting after subparagraph (E) (as 
                        so redesignated) the following:
                  ``(F) the process by which, for vocational and 
                technical education programs carried out under this 
                Act, the eligible agency will develop the secondary or 
                postsecondary elements of the model sequences of 
                courses identified by the eligible agency, with an 
                emphasis on rigorous and challenging academic and 
                technical content that, through a progression of 
                courses, leads to a postsecondary 1-year certificate, 
                associate's or baccalaureate degree, or a proficiency 
                credential in conjunction with a secondary school 
                diploma;
                  ``(G) the role that any eligible recipients 
                successfully implementing the activities described in 
                section 135(b)(3) will play in assisting other eligible 
                recipients in establishing agreements and plans for 
                coordinating the offering of model sequences of courses 
                to students at both the secondary and postsecondary 
                levels; and
                  ``(H) how funds will be used effectively to link 
                secondary and postsecondary academic and vocational and 
                technical education in a manner that increases student 
                academic and vocational and technical achievement;
                  ``(I) how the eligible agency will report the 
                integration of rigorous and challenging academics in 
                vocational and technical education programs in order to 
                adequately evaluate the quality of such integration;'';
                  (B) by amending paragraph (2) to read as follows:
          ``(2) describes how comprehensive professional development 
        (including initial teacher preparation and activities that 
        support recruitment) for vocational and technical, academic, 
        guidance, and administrative personnel will be provided, 
        especially professional development that--
                  ``(A) promotes the integration of rigorous and 
                challenging academic and vocational and technical 
                education curriculum development;
                  ``(B) increases the percentage of teachers that meet 
                teacher certification or licensing requirements;
                  ``(C) increases the academic and industry knowledge 
                of vocational and technical education teachers; and
                  ``(D) encourages applied learning that contributes to 
                the academic and vocational and technical knowledge of 
                the student;'';
                  (C) in paragraph (3), by inserting ``academic and 
                vocational and technical'' after ``parents,'';
                  (D) in paragraph (5)(A)--
                          (i) by inserting ``(especially as pertaining 
                        to math, science, and technology)'' after 
                        ``academic and technical skills''; and
                          (ii) by striking ``core academic, and 
                        vocational and technical, subjects'' and 
                        inserting ``core academic subjects (as defined 
                        in section 9101(11) of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 
                        7801(11))), and vocational and technical 
                        subjects'';
                  (E) in paragraph (11), by inserting ``and 
                technology'' after ``equipment'';
                  (F) by striking paragraph (19) and redesignating 
                paragraphs (12) through (18) as paragraphs (13) through 
                (19), respectively;
                  (G) by inserting after paragraph (11) the following:
          ``(12) provides an assurance that when disposing of equipment 
        acquired with funds under this Act, any personally identifiable 
        information contained in such equipment will be totally 
        destroyed prior to or as part of the disposition;'';
                  (H) in paragraph (18) (as so redesignated), by 
                striking ``training and employment'' and inserting 
                ``fields''; and
                  (I) by redesignating paragraphs (20) and (21) as 
                paragraphs (22) and (23), respectively, and inserting 
                after paragraph (19) (as so redesignated) the 
                following:
          ``(20) describes how the eligible agency will award grants, 
        on a competitive basis or on the basis of a formula determined 
        by the eligible agency, using funds described in section 112 
        (a) (1) for activities described in section 135(b)(3);
          ``(21) describes how the eligible agency will carry out 
        measurable, sustainable, and coordinated tech-prep activities 
        in the State (as described in section 135(b)(3)), with funds 
        allocated under section 112(a), that are developed in 
        consultation with the entities described in subsection (b)(1) 
        and that effectively prepare students for post-secondary 
        education or employment in high demand occupations through a 
        seamless program of study consisting of appropriate advanced 
        academic and technical courses that include a minimum of 2 
        years of secondary school preceding graduation and a minimum of 
        2 years of higher education or an apprenticeship program of at 
        least 2 years following secondary instruction;''; and
          (4) by striking subsections (d) and (f) and redesignating 
        subsection (e) as subsection (d).

SEC. 13. IMPROVEMENT PLANS.

  Section 123 (20 U.S.C. 2343) is amended to read as follows:

``SEC. 123. IMPROVEMENT PLANS.

  ``(a) State Program Improvement.--
          ``(1) Plan.--If a State fails to meet the agreed upon State 
        adjusted levels of performance required under section 
        113(b)(3), the eligible agency shall develop and implement a 
        program improvement plan (with special consideration to 
        performance gaps identified under section 113(c)(2)) in 
        consultation with the appropriate agencies, individuals, and 
        organizations for the first program year succeeding the program 
        year in which the eligible agency failed to meet the State 
        adjusted levels of performance, in order to avoid a sanction 
        under paragraph (3).
          ``(2) Technical assistance.--If the Secretary determines that 
        an eligible agency is not properly implementing the eligible 
        agency's responsibilities under section 122, or is not making 
        substantial progress in meeting the purpose of this Act, based 
        on the State's adjusted levels of performance, the Secretary 
        shall work with the eligible agency to implement improvement 
        activities consistent with the requirements of this Act.
          ``(3) Subsequent action.--
                  ``(A) In general.--If an eligible agency fails to 
                meet the State adjusted levels of performance and the 
                purposes of this Act, has not implemented an 
                improvement plan as described in paragraph (1), has 
                shown no improvement within 1 year after implementing 
                an improvement plan as described in paragraph (1), or 
                has failed to meet the State adjusted levels of 
                performance for 2 or more consecutive years, the 
                Secretary may, after notice and opportunity for a 
                hearing, withhold from the eligible agency all, or a 
                portion of, the eligible agency's allotment under this 
                title.
                  ``(B) Waiver for exceptional circumstances.--The 
                Secretary may waive the sanction in subparagraph (A) 
                due to exceptional or uncontrollable circumstances such 
                as a natural disaster or a precipitous and unforeseen 
                decline in the financial resources of the State.
          ``(4) Funds resulting from reduced allotments.--
                  ``(A) In general.--The Secretary shall use funds 
                withheld under paragraph (3) for a State served by an 
                eligible agency, to provide (through alternative 
                arrangements) services and activities within the State 
                to meet the purposes of this Act.
                  ``(B) Redistribution.--If the Secretary cannot 
                satisfactorily use funds withheld under paragraph (3), 
                then the amount of funds retained by the Secretary as a 
                result of a reduction in an allotment made under 
                paragraph (3) shall be redistributed to other eligible 
                agencies in accordance with section 111.
  ``(b) Local Program Improvement.--
          ``(1) Local evaluation.--Each eligible agency shall evaluate 
        annually, using the local adjusted levels of performance 
        described in section 113(b)(4), the vocational and technical 
        education activities of each eligible recipient receiving funds 
        under this title.
          ``(2) Plan.--
                  ``(A) In general.--If, after reviewing the 
                evaluation, the eligible agency determines that an 
                eligible recipient is not making substantial progress 
                in achieving the local adjusted levels of performance, 
                or that an eligible recipient demonstrates under 
                section 113(b)(4)(C) a widening of performance gaps 
                between multiple categories of students served by the 
                eligible recipient in comparison to all students in the 
                State served under the Act, the eligible agency shall--
                          ``(i) conduct an assessment of the 
                        educational needs that the eligible recipient 
                        shall address to overcome local performance 
                        deficiencies;
                          ``(ii) enter into an improvement plan 
                        agreement with an eligible recipient based on 
                        the results of the assessment, for the first 
                        program year succeeding the program year in 
                        which the eligible recipient failed to meet the 
                        local adjusted levels of performance, which 
                        plan shall demonstrate how the local 
                        performance deficiencies will be corrected and 
                        include strategies for professional development 
                        and instructional and other programmatic 
                        innovations of demonstrated effectiveness, 
                        giving special consideration to performance 
                        gaps identified under section 113(b)(4)(C); and
                          ``(iii) conduct regular evaluations of the 
                        progress being made toward reaching the local 
                        adjusted levels of performance as described in 
                        section 113(b)(4) and progress on implementing 
                        the improvement plan.
                  ``(B) Consultation.--The eligible agency shall 
                conduct the activities described in paragraph (2) in 
                consultation with teachers, parents, other school 
                staff, appropriate agencies, and other appropriate 
                individuals and organizations.
          ``(3) Technical assistance.--If the eligible agency 
        determines that an eligible recipient is not properly 
        implementing the eligible recipient's responsibilities under 
        section 134, or is not making substantial progress in meeting 
        the purpose of this Act, based on the local adjusted levels of 
        performance, the eligible agency shall provide technical 
        assistance to the eligible recipient to assist such recipient 
        in carrying out the improvement activities consistent with the 
        requirements of this Act.
          ``(4) Subsequent action.--
                  ``(A) In general.--If an eligible recipient fails to 
                meet the local adjusted levels of performance as 
                described in section 113(b)(4) and the purposes of this 
                Act, has not implemented an improvement plan as 
                described in paragraph (2), has shown no improvement 
                within 1 year after implementing an improvement plan as 
                described in paragraph (2), or has failed to meet the 
                local adjusted levels of performance for 2 or more 
                consecutive years, the eligible agency may, after 
                notice and opportunity for a hearing, withhold from the 
                eligible recipient all, or a portion of, the eligible 
                recipient's allotment under this title.
                  ``(B) Waiver for exceptional circumstances.--The 
                eligible agency may waive the sanction under this 
                paragraph due to exceptional or uncontrollable 
                circumstances such as a natural disaster or a 
                precipitous and unforeseen decline in the financial 
                resources of the State.
          ``(5) Funds resulting from reduced allotments.--The eligible 
        agency shall use funds withheld under paragraph (4) to continue 
        to provide (through alternative arrangements) services and 
        activities in the area served by such recipient to meet the 
        purpose of this Act.''.

SEC. 14. STATE LEADERSHIP ACTIVITIES.

  Section 124 (20 U.S.C. 2344) is amended--
          (1) in subsection (b)--
                  (A) in paragraph (1), by striking ``learning'' and 
                inserting ``education'';
                  (B) in paragraph (2)--
                          (i) by inserting ``, and the required math 
                        and science education,'' after ``use of 
                        technology in vocational and technical 
                        education''; and
                          (ii) in subparagraph (B)--
                                  (I) by inserting ``(including the 
                                math and science knowledge that 
                                provides a strong basis for such 
                                skills)'' after ``technical skills''; 
                                and
                                  (II) by striking ``and 
                                telecommunications field'' and 
                                inserting ``fields, including 
                                nontraditional fields'';
                  (C) in paragraph (3)--
                          (i) by inserting ``at the secondary and 
                        postsecondary levels'' after ``academic, 
                        guidance, and administrative personnel'';
                          (ii) by redesignating subparagraphs (A) 
                        through (D) as subparagraphs (C) through (F), 
                        respectively, and inserting before such 
                        subparagraphs (as so redesignated) the 
                        following:
                  ``(A) will provide inservice and preservice training 
                for vocational and technical education teachers in the 
                integration and use of rigorous and challenging 
                academics with vocational and technical subjects;
                  ``(B) are high quality, sustained, intensive, and 
                classroom-focused in order to have a positive and 
                lasting impact on classroom instruction and the 
                teacher's performance in the classroom, and are not 1 
                day or short-term workshops or conferences;'';
                          (iii) in subparagraph (C) (as so 
                        redesignated)--
                                  (I) by inserting ``scientifically 
                                based'' after ``based on''; and
                                  (II) by striking ``; and'' and 
                                inserting a semicolon;
                          (iv) in subparagraph (D) (as so 
                        redesignated), by striking ``assist students in 
                        meeting'' and inserting ``improve student 
                        achievement in order to meet''; and
                          (v) by amending subparagraph (E) (as so 
                        redesignated) to read as follows:
                  ``(E) will support education programs for teachers of 
                vocational and technical education in public schools 
                and other public school personnel who are involved in 
                the direct delivery of educational services to 
                vocational and technical education students to ensure 
                that teachers and personnel--
                          ``(i) stay current with the needs, 
                        expectations, and methods of industry;
                          ``(ii) meet teacher certification or 
                        licensing requirements, especially in core 
                        academic subjects as defined in section 
                        9101(11) of the Elementary and Secondary 
                        Education Act of 1965 (20 U.S.C. 7801(11));
                          ``(iii) effectively develop integrated 
                        rigorous and challenging academic and 
                        vocational and technical education curriculum;
                          ``(iv) develop a high level of academic and 
                        industry knowledge and skills of vocational and 
                        technical education; and
                          ``(v) effectively use applied learning that 
                        contributes to the academic and vocational and 
                        technical knowledge of the student;'';
                  (D) in paragraph (4), by striking ``integration of 
                academics'' and all that follows through ``core 
                academic,'' and inserting ``provision of rigorous and 
                challenging academics that are integrated with 
                vocational and technical education to ensure 
                achievement in the core academic subjects (as defined 
                in section 9101(11) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7801(11))),'';
                  (E) in paragraph (5), by striking ``training and 
                employment'' and inserting ``fields'';
                  (F) in paragraph (6), by inserting ``and complete a 
                model sequence of courses, as described in section 
                122(c)(1)(A)'' after ``technical skills'';
                  (G) in paragraph (7), by striking ``; and'' and 
                inserting a semicolon;
                  (H) in paragraph (8), by striking the period and 
                inserting ``; and''; and
                  (I) by inserting after paragraph (8) the following:
          ``(9) technical assistance for eligible recipients.''; and
          (2) in subsection (c)--
                  (A) by striking paragraph (1), and redesignating 
                paragraphs (2) through (10) as paragraphs (1) through 
                (9), respectively, and paragraphs (11) and (12) as 
                paragraphs (12) and (13), respectively;
                  (B) in paragraph (9) (as so redesignated), by 
                inserting ``that prepare individuals academically and 
                technically for current and emerging occupations in 
                demand'' after ``education courses''; and
                  (C) by inserting after paragraph (9) (as so 
                redesignated) the following:
          ``(10) awarding incentive grants to eligible recipients for 
        exemplary performance in carrying out programs under this Act, 
        which awards shall be based on--
                  ``(A) eligible recipients exceeding challenging 
                performance measures established under section 113(b) 
                that reflect sustained or significant improvement;
                  ``(B) eligible recipients effectively developing 
                connections between secondary education and 
                postsecondary education and training;
                  ``(C) the adoption and integration of rigorous and 
                challenging academic and technical coursework;
                  ``(D) an eligible recipient's progress in having 
                special populations participating in vocational and 
                technical education programs meet local adjusted levels 
                of performance; or
                  ``(E) other factors relating to the performance of 
                the eligible recipient under this Act as the eligible 
                agency determines are appropriate.
          ``(11) providing for activities to support entrepreneurship 
        education and training;''.

SEC. 15. DISTRIBUTION OF FUNDS TO SECONDARY SCHOOL PROGRAMS.

  Section 131 (20 U.S.C. 2351) is amended--
          (1) by striking subsection (a) and redesignating subsections 
        (b) through (i) as subsections (a) through (h), respectively;
          (2) in subsection (a) (as so redesignated)--
                  (A) in the subsection heading, by striking 
                ``Special'' and ``for Succeeding Fiscal Years''; and
                  (B) by striking ``for fiscal year 2000 and succeeding 
                fiscal years''; and
          (3) in subsection (b) (as so redesignated)--
                  (A) by striking ``subsection (b)'' and inserting 
                ``subsection (a)''; and
                  (B) by striking ``(42 U.S.C. 9902(2))'' and inserting 
                ``(42 U.S.C. 9902(2)))''.

SEC. 16. ELIMINATION OF REDISTRIBUTION RULE.

  Section 133 (20 U.S.C. 2353) is amended by striking subsection (b) 
and redesignating subsections (c) and (d) as subsections (b) and (c), 
respectively.

SEC. 17. LOCAL PLAN FOR VOCATIONAL AND TECHNICAL EDUCATION PROGRAMS.

  Section 134(b) (20 U.S.C. 2354(b)) is amended--
          (1) in paragraph (2), by inserting ``and local'' after 
        ``State'';
          (2) in paragraph (3)--
                  (A) by redesignating subparagraphs (A) through (C) as 
                subparagraphs (B) through (D), respectively, and 
                inserting before such subparagraphs the following:
                  ``(A) offer the appropriate courses of at least one 
                of the model sequences of courses described in section 
                124(c)(1), as appropriate to the eligible recipient 
                responsible for that element of the sequence;'';
                  (B) in subparagraph (B) (as so redesignated)--
                          (i) by inserting ``rigorous and challenging'' 
                        after ``integration of''; and
                          (ii) by inserting ``subjects (as defined by 
                        section 9101(11) of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 
                        7801(11)))'' after ``core academic''; and
                  (C) in subparagraph (D) (as so redesignated), by 
                inserting ``rigorous and'' after ``taught to the 
                same'';
          (3) by redesignating paragraphs (4) through (10) as 
        paragraphs (5) through (11), respectively, and inserting after 
        paragraph (3) the following:
          ``(4) describe how comprehensive professional development 
        (including initial teacher preparation) for vocational and 
        technical, academic, guidance, and administrative personnel 
        will be provided that promotes the integration of rigorous and 
        challenging academic and technical education (including 
        curriculum development);'';
          (4) in paragraph (5) (as so redesignated)--
                  (A) by inserting ``academic and vocational and 
                technical'' after ``students,''; and
                  (B) by inserting ``, including the eligible 
                recipients that offer elements of the model sequence of 
                courses'' after ``of this title''; and
          (5) in paragraph (8) (as so redesignated)--
                  (A) in subparagraph (A), by striking ``; and'' and 
                inserting a semicolon;
                  (B) in subparagraph (B), by inserting ``and'' after 
                the semicolon; and
                  (C) by inserting after subparagraph (B) the 
                following:
                  ``(C) will provide activities to prepare special 
                populations, including single parents and displaced 
                homemakers, for high skill, high wage occupations that 
                will lead to self-sufficiency;''.

SEC. 18. LOCAL USE OF FUNDS.

  Section 135 (20 U.S.C. 2355) is amended--
          (1) in subsection (b)--
                  (A) in paragraph (1), by striking ``to ensure 
                learning in the core academic'' and inserting ``as 
                established in the State-developed model sequences of 
                courses described in section 122(c)(1)(A) to ensure 
                learning in the core academic subjects (as defined by 
                section 9101(11) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7801(11)))'';
                  (B) by striking paragraph (8);
                  (C) by redesignating paragraphs (2) through (7) as 
                paragraphs (4) through (9), respectively, and inserting 
                after paragraph (1) the following:
          ``(2) link secondary vocational and technical education and 
        postsecondary vocational and technical education, including 
        offering model sequences of courses and implementing tech-prep 
        programs consistent with the activities described in paragraph 
        (3);
          ``(3) support tech-prep programs (if the eligible recipient 
        receives the funds from the eligible agency under section 
        112(a)(1)) that--
                  ``(A) are carried out under an articulation agreement 
                between the participants in a consortium, which shall 
                include--
                          ``(i) a local educational agency, an 
                        intermediate educational agency or area 
                        vocational and technical education school 
                        serving secondary school students, or a 
                        secondary school funded by the Bureau of Indian 
                        Affairs; and
                          ``(ii)(I) a nonprofit institution of higher 
                        education that offers--
                                  ``(aa) a 2 or 4-year degree program, 
                                or a 2-year certificate program, and is 
                                qualified as an institution of higher 
                                education pursuant to section 102 of 
                                the Higher Education Act of 1965 (20 
                                U.S.C. 1002) (except those institutions 
                                described in section 102(a)(1)(C) of 
                                such Act), including an institution 
                                receiving assistance under the Tribally 
                                Controlled College or University 
                                Assistance Act of 1978 (25 U.S.C. 1801 
                                et seq.) and a tribally controlled 
                                postsecondary vocational and technical 
                                institution; or
                                  ``(bb) a 2-year apprenticeship 
                                program that follows secondary 
                                instruction, if such nonprofit 
                                institution of higher education is not 
                                prohibited from receiving assistance 
                                under part B of title IV of the Higher 
                                Education Act of 1965 (20 U.S.C. 1071 
                                et seq.) pursuant to the provisions of 
                                section 435(a)(3) of such Act (20 
                                U.S.C. 1083(a)); or
                                  ``(II) a proprietary institution of 
                                higher education that offers a 2-year 
                                associate degree program and is 
                                qualified as an institution of higher 
                                education pursuant to section 102 of 
                                the Higher Education Act of 1965 (20 
                                U.S.C. 1002), if such proprietary 
                                institution of higher education is not 
                                subject to a default management plan 
                                required by the Secretary,
                        and may include nonprofit organizations that 
                        provide eligible recipients with technology and 
                        programs to enhance math and science skills, 
                        employers, and labor organizations;
                  ``(B) consist of a minimum of 2 years of secondary 
                school preceding graduation and a minimum of 2 years of 
                higher education, or an apprenticeship program of at 
                least 2 years following secondary instruction;
                  ``(C) meet academic standards developed by the State, 
                including standards developed under section 1111 of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6311) for secondary students, and support 
                proficiency in mathematics, science, reading, writing, 
                communications, and technologies;
                  ``(D) are comprised of model sequences of courses 
                that integrate rigorous and challenging academics and 
                vocational and technical education;
                  ``(E) provide technical preparation in a career field 
                such as engineering technology; applied science; a 
                mechanical, industrial, or practical art or trade; 
                agriculture; health occupations; business; applied 
                economics; advanced manufacturing; or other high-demand 
                occupations as determined by the State;
                  ``(F) use, if appropriate and available, work-based 
                or worksite learning in conjunction with academic and 
                vocational and technical education;
                  ``(G) use educational technology and distance 
                learning, as appropriate, to involve all the consortium 
                partners more fully in the development and operation of 
                programs;
                  ``(H) facilitate and promote close working 
                relationships among eligible recipients to ensure that 
                programs within a geographic area are closely 
                integrated with tech-prep program activities;
                  ``(I) are sustainable and use performance indicator 
                data, described in section 113, to inform program 
                quality;
                  ``(J) include academic and career counseling for 
                participants that provide information to students (and 
                parents, as appropriate) regarding tech-prep programs 
                and support student progress in completing tech-prep 
                programs;
                  ``(K) include in-service training for teachers that--
                          ``(i) provides for joint training for 
                        teachers in tech-prep programs; and
                          ``(ii) is designed to ensure that teachers 
                        and administrators stay current with the needs, 
                        expectations, and methods of business and all 
                        aspects of an industry; and
                  ``(L) provide students with transferable credit 
                between the consortium members, as described in 
                subparagraph (A), including through programs that allow 
                secondary programs to be co-located on postsecondary 
                campuses;'';
                  (D) in paragraph (5) (as so redesignated)--
                          (i) by inserting ``, and the related math and 
                        science education'' after ``use of technology 
                        in vocational and technical education'';
                          (ii) in subparagraph (B)--
                                  (I) by inserting ``(including the 
                                math and science knowledge that 
                                provides a strong basis for such 
                                skills)'' after ``technical skills''; 
                                and
                                  (II) by striking ``and 
                                telecommunications field'' and 
                                inserting ``fields''; and
                          (iii) in subparagraph (C)--
                                  (I) by striking ``work'' and 
                                inserting ``collaborate''; and
                                  (II) by inserting ``that improve the 
                                math and science knowledge of 
                                students'' after ``mentoring 
                                programs'';
                  (E) in paragraph (6) (as so redesignated)--
                          (i) by striking ``teachers,'' and inserting 
                        ``secondary and postsecondary teachers, 
                        instructors,''; and
                          (ii) in subparagraph (A), by striking ``in 
                        effective teaching skills based on research'' 
                        and inserting ``in effective integration of 
                        rigorous and challenging academic and 
                        vocational and technical education, in 
                        effective teaching skills based on 
                        scientifically based research''; and
                  (F) by inserting after paragraph (9) (as so 
                redesignated) the following:
          ``(10) provide activities to prepare special populations, 
        including single parents and displaced homemakers, for high 
        skill, high wage occupations that will lead to self 
        sufficiency.''; and
          (2) in subsection (c)--
                  (A) in paragraph (2), by inserting ``, regarding the 
                range of postsecondary options available, including for 
                adult students who are changing careers or updating 
                skills'' before the semicolon;
                  (B) in paragraph (5), by inserting ``, including the 
                establishment and operation of special arrangements 
                with industry partners that allow qualified industry 
                professionals to serve as faculty in postsecondary 
                programs'' before the semicolon;
                  (C) in paragraph (8), by striking ``aides'' and 
                inserting ``aids'';
                  (D) in paragraph (9), by inserting ``that address the 
                integration of academic and vocational and technical 
                education and'' after ``teacher preparation programs'';
                  (E) by redesignating paragraphs (10) through (14) as 
                paragraphs (12) through (16), and paragraph (15) as 
                paragraph (19), respectively, and inserting after 
                paragraph (9) the following:
          ``(10) to develop and expand postsecondary program offerings 
        that are accessible by students, including the use of distance 
        education;
          ``(11) to provide activities to support entrepreneurship 
        education and training;'';
                  (F) in paragraph (12) (as so redesignated), by 
                inserting ``, including development of new proposed 
                model sequences of courses for consideration by the 
                eligible agency and courses that prepare individuals 
                academically and technically for current and emerging 
                occupations that are in demand'' before the semicolon;
                  (G) in paragraph (16) (as so redesignated), by 
                striking ``; and'' and inserting a semicolon, and 
                inserting after such paragraph the following:
          ``(17) to provide accurate information relating to the 
        availability of supportive services available in an area served 
        by the eligible recipient , and referral to such services, as 
        appropriate;
          ``(18) to support the activities described in subsection 
        (b)(3); and''.

SEC. 19. REPEAL OF TECH-PREP EDUCATION ACT.

  Title II (20 U.S.C. 2071 et seq.) is repealed.

SEC. 20. GENERAL PROVISIONS.

  (a) Redesignation of Title III.--
          (1) Redesignation.--Title III of the Carl D. Perkins 
        Vocational and Technical Education Act of 1998 (20 U.S.C. 2391 
        et seq.) is amended by redesignating such title as title II of 
        such Act. Such title is further amended by redesignating 
        sections 311 through 318 as section 211 through 218, 
        respectively, and sections 321 through 325 as sections 221 
        through 225, respectively.
          (2) Table of contents amendment.--The table of contents of 
        the Carl D. Perkins Vocational and Technical Education Act of 
        1998 is amended--
                  (A) by striking the items relating to title III; and
                  (B) by amending the items relating to title II to 
                read as follows:

                     ``TITLE II--GENERAL PROVISIONS

              ``Part A--Federal Administrative Provisions

``Sec. 211. Fiscal requirements.
``Sec. 212. Authority to make payments.
``Sec. 213. Construction.
``Sec. 214. Voluntary selection and participation.
``Sec. 215. Limitation for certain students.
``Sec. 216. Federal laws guaranteeing civil rights.
``Sec. 217. Participation of private school children.
``Sec. 218. Participation of private school personnel.

               ``Part B--State Administrative Provisions

``Sec. 221. Joint funding.
``Sec. 222. Prohibition on use of funds to induce out-of-State 
relocation of businesses.
``Sec. 223. State administrative costs.
``Sec. 224. Limitation on Federal regulations.
``Sec. 225. Student assistance and other Federal programs.''.

  (b) Fiscal Requirements.--Section 211(b) (20 U.S.C. 2391(b)) (as so 
redesignated) is amended by inserting after paragraph (2) the 
following:
          ``(3) Definition.--For purposes of this subsection, the term 
        `preceding fiscal year' means the Federal fiscal year or the 
        12-month fiscal period used by a State for official reporting 
        purposes, prior to the beginning of the Federal fiscal year in 
        which funds are available for obligation by the Secretary.''.
  (c) Participation of Private School Children.--Section 217 (as so 
redesignated) is amended to read as follows:

``SEC. 217. PARTICIPATION OF PRIVATE SCHOOL CHILDREN.

  ``(a) Participation on Equitable Basis.--
          ``(1) In general.--To the extent consistent with the number 
        of children in the school district of a local educational 
        agency that is eligible to receive funds under this Act, or 
        that serves the area in which a program assisted under this Act 
        is located, who are enrolled in private nonprofit elementary 
        schools and secondary schools, or, with respect to 
        instructional or personnel training programs funded by an 
        eligible agency, the local educational agency, after 
        consultation with appropriate private school officials--
                  ``(A) shall provide, on an equitable basis and as may 
                be necessary, for the benefit of such children in such 
                schools, secular, neutral, and nonideological services 
                (or other benefits), materials, and equipment, 
                including the participation of the teachers of such 
                children (and other educational personnel serving such 
                children) in training programs; or
                  ``(B) if such services, materials, and equipment are 
                not feasible or necessary in one or more such private 
                schools (as determined by the local educational agency 
                after consultation with the appropriate private school 
                officials), shall provide such other arrangements as 
                will assure equitable participation of such children in 
                the purposes and benefits of this Act.
          ``(2) Application of requirements.--The requirements of this 
        section relating to the participation of children, teachers, 
        and other personnel serving such children shall apply to 
        programs carried out under this Act by an eligible agency or 
        local educational agency, whether directly or through grants 
        to, or contracts with, other public or private agencies, 
        institutions, or organizations.
  ``(b) Equal Expenditures.--
          ``(1) In general.--Expenditures for programs under subsection 
        (a) shall be equal (consistent with the number of children to 
        be served) to expenditures for programs under this Act for 
        children enrolled in the public schools of the local 
        educational agency.
          ``(2) Concentrated programs.--When funds available to a local 
        educational agency under this Act are used to concentrate 
        programs on a particular group, attendance area, or grade or 
        age level, the local educational agency shall, after 
        consultation with the appropriate private school officials, 
        assure the equitable participation in both the purposes and 
        benefits of such programs for children enrolled in private 
        schools who are included within the group, attendance area, or 
        grade or age level selected for such concentration shall, 
        taking into account the needs of the individual children and 
        other factors that relate to the expenditures referred to in 
        paragraph (1).
  ``(c) Administrative Requirements.--
          ``(1) Funds, materials and equipment.--
                  ``(A) Funds.--The control of funds expended under 
                this section shall be administered by a public agency.
                  ``(B) Materials and equipment.--The title to 
                materials and equipment provided under this section, 
                shall remain with a public agency for the uses and 
                purposes provided in this Act
          ``(2) Provision of services.--Services provided under this 
        Act shall be provided by employees of a public agency or 
        through contract by such a public agency with a person, 
        association, agency, organization, institution or corporation 
        that, in the provision of such services, is independent of the 
        private school and of any religious organizations, and such 
        employment or contract shall be under the control and 
        supervision of such a public agency. The funds utilized under 
        this section shall not be commingled with State or local funds.
          ``(3) Timing and content of consultation.--The consultation 
        required under this section shall include meetings of agency 
        and private school officials and shall occur before the 
        eligible agency and local educational agency makes any decision 
        that affects the opportunities of eligible private school 
        children to participate in programs under this Act. Such 
        meetings shall include a discussion of service delivery 
        mechanisms (including third party contractors) and shall 
        continue throughout implementation and assessment of services 
        under this Act.
  ``(d) Waiver and Bypass Procedures.--
          ``(1) State prohibition.--If an eligible agency or local 
        educational agency is prohibited, by reason of any provision of 
        law, from providing for the participation in programs of 
        children enrolled in private elementary schools and secondary 
        schools as required by subsections (a) through (c), the 
        Secretary shall waive such requirements for the agency involved 
        and shall arrange for the provision of services to such 
        children through arrangements that shall be subject to the 
        requirements of this section.
          ``(2) Failure to comply.--If the Secretary determines that an 
        eligible agency or a local educational agency has substantially 
        failed, or is unwilling, to provide for the participation on an 
        equitable basis of children enrolled in private elementary 
        schools and secondary schools as required by subsections (a) 
        through (c), the Secretary may waive such requirements and 
        shall arrange for the provision of services to such children 
        through arrangements that shall be subject to the requirements 
        of this section.
          ``(3) Payment from state allotment.--When the Secretary 
        arranges for services under this subsection, the Secretary 
        shall, after consultation with the appropriate public school 
        and private school officials, pay the cost of such services, 
        including the administrative costs of arranging for those 
        services, from the appropriate allotment of the eligible agency 
        under this Act.
          ``(4) Duration of determination.--Any determination by the 
        Secretary under this section shall continue in effect until the 
        Secretary determines that there will no longer be any failure 
        or inability on the Act of the eligible agency or local 
        educational agency to meet the requirements of subsections (a) 
        through (c).
          ``(5) Review of determination.--The Secretary shall not take 
        any final action under this section until the eligible agency 
        and the local educational agency affected by such action have 
        had an opportunity, for not less than 45 days after receiving 
        written notice thereof, to submit written objections and to 
        appear before the Secretary or the Secretary's designee to show 
        cause why that action should not be taken.
  ``(e) Withholding of Allotment or Allocation.--Pending final 
resolution of any investigation or complaint that could result in a 
waiver under subsection (d)(1) or (d)(2), the Secretary may withhold 
from the allotment or allocation of the affected eligible agency or 
local educational agency the amount estimated by the Secretary to be 
necessary to pay the cost of services to be provided by the Secretary 
under such subsection.
  ``(f) Prior Determination.--Any bypass determination by the Secretary 
under Title I or Title IX of the Elementary and Secondary Education Act 
of 1965 shall, to the extent consistent with the purposes of this Act, 
apply to programs under this Act until such determinations terminate or 
expire.''.

                                Purpose

    H.R. 4496, the Vocational and Technical Education for the 
Future Act, strengthens and improves the Carl D. Perkins 
Vocational and Technical Education Act by enhancing local 
accountability, introducing model sequences of courses that 
incorporate both secondary and postsecondary elements in a non-
duplicative progression of courses, and merging the stand-alone 
Tech-Prep program with the Basic State Grant program. The bill 
reauthorizes the Act through 2010.

                            Committee Action


                         SUBCOMMITTEE HEARINGS

    On April 27, 2004, the Subcommittee on Education Reform 
held a hearing on Examining Success in Vocational Education. 
This hearing was the first hearing in preparation for the 
reauthorization of vocational and technical education, and it 
highlighted successful local vocational and technical education 
programs under the Carl D. Perkins Vocational and Technical 
Education Act. The testifying witnesses included Ms. Sandy 
Walls-Culotta, Principal, Sussex Technical High School, 
Georgetown, Delaware; Dr. Robin White, President/CEO, Great 
Oaks Institute of Technology and Career Development, 
Cincinnati, Ohio; Dr. Carl Wong, Superintendent of Schools, 
Sonoma County Office of Education, Santa Rosa, California; Dr. 
Thomas E. Barton, Jr., President, Greenville Technical and 
Community College, Greenville, South Carolina; and Ms. Marie 
Zwickert, Area Academy Manager for New England and Ohio Valley, 
CISCO Systems, Columbia, Maryland.
    On May 4, 2004, the Subcommittee on Education Reform held a 
hearing on Strengthening Vocational Education. This hearing was 
the second of the vocational and technical education hearings, 
and examined vocational and technical education programs from a 
State and national perspective. Ms. Betsy Brand, Co-Director of 
the American Youth Policy Forum, Washington, DC; Mrs. Jean C. 
Stevens, Assistant Commissioner for the Office of Curriculum 
and Instructional Support, New York State Education Department, 
Albany, New York; Ms. Sandy Dunkel, Division Administrator for 
the Career Development Division, Illinois State Board of 
Education, Springfield, Illinois; Dr. Bill A. Ihlenfeldt, 
President, Chippewa Valley Technical College, Eau Claire, 
Wisconsin; and Ms. Brenda Quinn, Chief Executive Officer, 
Intelitek, Inc., Manchester, New Hampshire, testified before 
the Subcommittee.
    On June 14, 2004, the Subcommittee on Education Reform held 
a hearing on H.R. 4496, the Vocational and Technical Education 
for the Future Act. The hearing allowed the Subcommittee to 
gather input and comments from the vocational education 
community on the major provisions in the bill. Dr. Robert D. 
Sommers, CEO, Butler Technology and Career Development Schools, 
Fairfield Township, Ohio; Ms. Mimi Lufkin, Executive Director, 
National Alliance for Partnerships in Equity, Cochranville, 
Pennsylvania; Mrs. Katherine Oliver, Assistant State 
Superintendent for Career, Technology and Adult Learning, 
Maryland State Department of Education, Baltimore, Maryland; 
and Ms. Robin White, Senior Program and Policy Director, 
Academy for Educational Development, National Institute for 
Work and Learning, Washington, DC, testified before the 
Subcommittee.

                           LEGISLATIVE ACTION

    On June 3, 2004 Education Reform Subcommittee Chairman 
Michael Castle (R-DE), along with Chairman John Boehner (R-OH) 
and Representative Joe Wilson (R-SC), introduced H.R. 4496, the 
Vocational and Technical Education for the Future Act, a bill 
to strengthen, and improve the Carl D. Perkins Vocational and 
Technical Education Act.
    On July 14, 2004 the Subcommittee on Education Reform 
considered H.R. 4496 in legislative session and favorably 
reported the bill, as amended, by voice vote to the Committee 
on Education and the Workforce. The Subcommittee considered 
three amendments and adopted the following two amendments:
     The Subcommittee adopted by voice vote an 
amendment in the nature of a substitute offered by Subcommittee 
Chairman Castle. The substitute amendment contained the 
following changes:
           Updates the hold-harmless provision in 
        current law to ensure that each state receives at least 
        as much as the state received in FY 2004 under the 
        basic state grant and the previous stand-alone Tech-
        Prep program, and ensures that states will have 
        available at least as much state leadership funds as in 
        2004;
           Alters the requirement specifying how tech-
        prep activities will continue to receive funding;
           Improves the provision of tech-prep 
        services, including requiring a description of such 
        services in the state plan, updating the definition of 
        articulation agreements, and tying tech-prep activities 
        to the state-developed performance indicators;
           Requires that local recipients of Perkins 
        funding provide activities to prepare special 
        populations, including displaced homemakers, for high-
        skill, high wage occupations that will lead to self-
        sufficiency, and requires local recipients to describe 
        such activities in their local plan;
           Permits local recipients of Perkins funds to 
        provide students with information about and referral to 
        supportive services;
           Allows the Department of Education and 
        states to consider the performance of special 
        populations as one of several factors used to award 
        incentive grants;
           Requires local recipients to report (with 
        data disag- 
        gregated for disadvantaged, race/ethnicity, disability, 
        LEP) on their progress in achieving local adjusted 
        levels of performance on core indicators in the same 
        manner as in the No Child Left Behind Act;
           Improves the professional development of 
        vocational and technical education teachers;
           Retains current law maintenance of effort; 
        and,
           Makes other technical and clarifying 
        amendments.
     The Subcommittee adopted, by voice vote, an 
amendment offered by Representative Tom Osborne (R-NE), which 
would allow local recipients of federal vocational and 
technical education to offer entrepreneurial education 
activities.
    On July 21, 2004 the Committee on Education and the 
Workforce considered H.R. 4496 in legislative session and 
favorably reported the bill, as amended, by voice vote to the 
House of Representatives. The Committee considered ten 
amendments and adopted the following two amendments:
     The Committee adopted, by voice vote, a substitute 
amendment offered by Subcommittee Chairman Castle. The 
substitute amendment contained the following changes:
         Provides for the equitable participation of 
        private school students in federally funded vocational 
        and technical education programs;
         Restores local administrative funds to five 
        percent of the local recipient's grant, as in current 
        law;
         Ensures that any personally identifiable 
        information is totally destroyed before the sale or 
        destruction of equipment;
         Allows nonprofit organizations that provide 
        technology and operate programs to enhance math and 
        science skills to participate in tech-prep consortia; 
        and,
         Makes other clarifying and technical 
        amendments.
     The Committee adopted, by a vote of 46-0, an 
amendment offered by Chairman Boehner to allow programs for 
advanced manufacturing to be included in local tech-prep 
activities.

                                Summary

    The Vocational and Technical Education for the Future Act 
reauthorizes the programs under the Carl D. Perkins Vocational 
and Technical Education Act through 2010, and helps state and 
local communities strengthen vocational and technical education 
and improve educational opportunities for students.
    H.R. 4496 supports student academic and vocational and 
technical achievement. It requires that academic courses for 
vocational and technical students be rigorous and challenging. 
The bill emphasizes student achievement in core academic 
subjects, as defined by the No Child Left Behind Act, and math 
and science education that incorporates the use of technology. 
In addition, local recipients of federal Perkins funds may 
offer vocational and technical education programs to provide 
entrepreneurial education and activities, enhancing learning 
opportunities for students.
    The bill requires states to develop model sequences of 
courses for vocational and technical program areas. Sequences 
of courses would incorporate both secondary and postsecondary 
elements, and include rigorous and challenging academic and 
vocational and technical content in a coordinated, non-
duplicative progression of courses. Model sequences of courses 
should lead to a degree or credential and may be adopted by 
local educational agencies and postsecondary institutions as an 
option to offer students, and their parents as appropriate to 
the age of the student. The bill specifies that local 
recipients will offer the courses (appropriate to the type of 
recipient) of at least one model sequence of courses.
    H.R. 4496 allows equitable participation of private school 
students in vocational and technical education programs, making 
the Act consistent with other education programs such as the No 
Child Left Behind Act and the House-passed Individuals with 
Disabilities Education Act.
    The Vocational and Technical Education for the Future Act 
seeks to improve program quality and results through state and 
local accountability. The bill would establish separate 
performance indicators for secondary and postsecondary 
vocational and technical education students. Local recipients 
of Perkins funding would establish local adjusted levels of 
performance, just as states currently develop statewide 
expected levels of performance for each indicator.
    H.R. 4496 establishes incentive grants to states that 
exceed their own state-developed, challenging performance 
measures and reflect sustained or significant improvement. The 
incentive grants are rewarded to states that have developed 
connections between secondary and postsecondary education, 
integrated rigorous academic and technical coursework, or 
achieved successful outcomes for special populations. The bill 
would also permit states to award incentive grants to local 
recipients for exemplary performance in carrying out vocational 
and technical education programs.
    The bill insists states make continuous and substantial 
improvement in the academic and vocational and technical 
achievement of students. Local recipients would establish local 
improvement plans if they are not making substantial progress 
in achieving local levels of performance. The bill would permit 
states to apply sanctions to local recipients that, after 
receiving technical assistance, fail to show improvement within 
one year of implementing an improvement plan or fail to meet 
the local adjusted levels of performance for two or more 
consecutive years.
    The bill streamlines and targets federal funding while 
maintaining local control. The Vocational and Technical 
Education for the Future Act would combine funding for the 
Perkins state grant and Tech-Prep programs into one program, 
and incorporate the activities of Tech-Prep into the basic 
grant program as local activities. H.R. 4496 improves the 
quality of tech-prep activities by increasing articulation and 
credit transfer agreements between secondary schools and 
postsecondary education institutions, through identified 
progressions of courses that culminate in a postsecondary 
degree, credential or certificate.
    H.R. 4496 is authorized at $1,307,000,000 for fiscal year 
2005 and such sums as may be necessary for each of fiscal years 
2006 through 2010. The bill provides a hold harmless at the 
state level by specifying that states will receive at least the 
amount received in combined Tech-Prep and basic grant funds in 
FY 04. H.R. 4496 targets more funds directly for services to 
students by limiting to two percent or $250,000, whichever is 
greater, the share of state grant dollars that may be used for 
state administration. As a result, 88 percent of a state's 
funds would be spent at the local level. States must spend at a 
minimum the amount previously provided in 2004 through the 
Tech-Prep program to support tech-prep activities. Under the 
bill, states areallowed to spend not more than ten percent, or 
at least as much as they did in FY 04, on state leadership activities.
    The bill clarifies that nothing in the law shall authorize 
the federal government to mandate or control a state, local 
educational agency, or school's instructional content, and 
curriculum; specifies that states are not required to have 
academic content or student academic achievement standards 
approved or certified by the federal government in order to 
receive funds under this law; and ensures a state's refusal to 
apply for funds under the Perkins Act does not prevent that 
state from receiving funds under other federal education 
programs.
    The Vocational and Technical Education for the Future Act 
would enhance professional development for teachers. It 
emphasizes in-service and pre-service professional development 
opportunities for vocational and technical education teachers 
for the integration of academics and technical subjects; 
ensures professional development programs are high quality, 
sustained, intensive, and classroom focused and are not one-day 
or short-term sessions; and supports professional development 
programs to ensure an increasing number of vocational and 
technical education teachers meet teacher certification and 
licensing requirements, especially in core academic subjects. 
These changes are consistent with professional development 
provisions in the No Child Left Behind Act.

                            Committee Views

    The Vocational and Technical Education for the Future Act 
builds on reforms made to the Perkins Act in 1998. The 1998 
reforms increased the focus on ensuring that participating 
students at both the secondary and postsecondary levels 
acquired academic and technical skills, as well as completed 
their respective programs and transitioned into further 
education and successful employment. H.R. 4496 would emphasize 
student achievement, increase accountability, strengthen 
opportunities for coordination between secondary and 
postsecondary vocational and technical education, and help 
states better utilize federal funds for secondary and 
postsecondary vocational and technical education programs. 
These reforms would enhance educational opportunities for the 
millions of students participating in these programs.

Model sequences of courses

    H.R. 4496 emphasizes student academic and vocational and 
technical achievement by establishing a provision for the state 
development of model sequences of courses for vocational and 
technical program areas. Sequences of courses, which are a 
current law concept, incorporate both secondary and 
postsecondary education elements, and include rigorous and 
challenging academic and vocational and technical content in a 
coordinated, non-duplicative progression of courses. Sequences 
of courses lead to a degree or credential and may be adopted by 
local educational agencies and postsecondary institutions as an 
option to offer students and their parents. The bill specifies 
that local recipients will offer the appropriate courses of at 
least one model sequence of courses as developed by the state. 
This change aims to ensure that students are offered both 
rigorous and challenging academic and vocational and technical 
education courses for the vocational and technical program area 
of their choice as well as clearly make students aware of the 
postsecondary education and training options they have 
available to them following secondary school graduation. The 
Committee does not intend that students be required to complete 
any sequence of courses; as with all classes, it intends that 
students and parents be offered choices and participation is 
voluntary. The Committee believes that model sequences of 
courses will promote rigorous course-taking and increase 
linkages between secondary and postsecondary education. As a 
framework for instruction, model sequences of courses can 
improve transitions between secondary and postsecondary 
education by aligning coursework and reducing remediation. The 
sequences of courses also ensure that students understand the 
education they will need in order to complete an appropriate 
postsecondary education, including one-year certificates and 
associates degrees. The National Assessment of Vocational 
Education 2004 finds that achieving these postsecondary 
education goals provides better results for individuals.
    During the June 14, 2004 Education Reform subcommittee 
hearing, Mrs. Katharine Oliver, Assistant State Superintendent 
for Career Technology and Adult Learning for the Maryland 
Department of Education, applauded the model sequences of 
courses concept and explained how a similar initiative has been 
successful in her state.

          Model sequences of courses highlight career and 
        educational options and prepare students and their 
        parents to make informed decisions. They help students 
        navigate the world of opportunity by highlighting what 
        courses to take to reach diverse career and educational 
        goals. Model sequences of courses are like road maps 
        that display the various routes for the journey to 
        one's destination. They outline the classes necessary 
        for high school graduation and highlight additional 
        academic and [career and technical education] courses, 
        as well as recommend other experiences, such as 
        internships, that supplement classroom learning. They 
        also help high school students focus on their own 
        future and provide the information needed to make 
        decisions about high school and college.

Strengthened accountability

    Current law requires states to create a ``performance 
accountability system.'' The basis of the system is the core 
indicators of performance, which are specified in the Act, and 
the adjusted levels of performance, which are negotiated 
between the state and the Secretary of Education. H.R. 4496 
contains a provision that establishes separate performance 
indicators appropriate for secondary and postsecondary 
education students. This change allows secondary schools and 
postsecondary institutions to report on results more suitable 
to either secondary or postsecondary education students.
    Accountability is further strengthened in the bill by new 
language that requires local recipients of Perkins funding to 
establish local adjusted levels of performance, just as states 
currently do. The bill provides for local improvement plans for 
local recipients not making substantial progress in achieving 
local levels of performance and permits sanctions for repeated 
failure to achieve these levels. This new language mirrors what 
currently goes on between the states and the Secretary and sets 
up a similar system between states and locals. Under current 
law and practice, locals continue to receive Perkins funding 
even if their programs are very low quality. The Committee 
believes this change will drive program improvement and 
increase academic achievement for vocational and technical 
education students.
    If a local recipient fails to meet its local adjusted 
levels of performance, section 123(b)(2) of the bill requires 
the eligible agency to enter into an improvement plan agreement 
with the recipient that demonstrates how its performance will 
be improved through professional development and other 
strategies. The agreement must be made for the ``first program 
year succeeding the program year in which the eligible 
recipient failed to meet the local adjusted levels of 
performance.''
    The Committee recognizes that, because funding and 
reporting cycles are not aligned, an eligible agency generally 
will not know at the time it awards subgrants whether a local 
recipient has met its local adjusted levels of performance for 
the prior year. The state generally will award subgrants for 
the next school year before eligible recipients have reported 
performance data on the preceding school year. For example, an 
eligible agency will award subgrants for the 2005-06 school 
year during the summer of 2005, but will not receive local 
performance reports for the 2004-05 school year until the fall 
of 2005. For this reason, there will be a one-year lag in 
implementing improvement plans. If an eligible recipient did 
not meets its local adjusted levels of performance during the 
2004-05 school year, for example, the state would begin working 
with local officials to develop an improvement plan during 
early 2006 and a plan must be agreed upon at the time the state 
awards subgrants during the summer of 2006. The plan would be 
implemented during the 2006-07 school year.
    Section 123(b)(4) authorizes an eligible agency to 
withhold, after notice and an opportunity for a hearing, all or 
a portion of an eligible recipient's allotment under certain 
circumstances: (1) if the recipient has not implemented an 
agreed-upon improvement plan; or (2) if the recipient has 
failed to meet its adjusted levels of performance for two or 
more consecutive years. The Committee expects that eligible 
agencies will follow the example of the Department in 
implementing this program by considering the performance of 
local recipients on all the performance indicators and in 
meeting the purposes of the Act. Again, because the funding and 
reporting cycles are different, there will be a one-year lag in 
implementing any sanctions. If, for example, a local recipient 
failed to meet its local adjusted levels of performance for the 
2004-05 and 2005-06 school years, the eligible agency would 
have the discretion to withhold all or a portion of the 
subgrant that would be awarded to the recipient for 2007-08 
school year. Local recipients are thus provided considerable 
time to improve their performance before the state may apply 
any sanctions and sanctions should reflect the degree of 
inadequate performance.
    Dr. Bob Sommers, CEO of the Butler Technology and Career 
Development Schools in Fairfield Township, Ohio, succinctly 
summarized the benefit of strengthened accountability for local 
programs and vocational and technical education in general. He 
testified at a hearing on June 15, that,

        [t]he establishment of consequences for poor 
        performance at the state and local level are critical 
        to moving career-technical education quality forward. 
        It is not a popular issue among educators, but it must 
        occur if we are to disinvest in poor quality 
        programming and support high quality programming. It 
        further refines the legislation's already solid focus 
        on student performance. Establishing annual performance 
        targets at the local level are a positive and useful 
        part of this provision. Local education providers must 
        learn to set clear performance improvement targets 
        annually. This provision in the bill will support this 
        process and is consistent with major continuous 
        improvement concepts.

Reporting

    To help ensure local accountability, H.R. 4496 requires 
each eligible recipient that receives federal vocational and 
technical education funding to submit a report to the eligible 
state agency that specifies the progress of the recipient in 
achieving its local adjusted levels of performance on the core 
indicators. In addition, any recipient that receives funding 
from the state specifically for tech-prep activities must 
report to the state the progress that tech prep program 
participants are making in achieving the local adjusted levels 
of performance on the core indicators.
    Local recipients must disaggregate the data for the report 
by the same categories for which data is disaggregated in the 
Elementary and Secondary Education Act (ESEA), as amended by 
the No Child Left Behind Act (NCLB). These categories include 
disadvantaged individuals, race and ethnicity, disability, and 
limited English proficiency. Data is not reported for 
individual students. Such recipients then must identify any 
disparities or gaps in performance between any categories of 
students and the performance of all students served by the 
eligible recipient. Because states and local educational 
agencies already disaggregate data for these categories under 
the ESEA, this requirement should place no new burden on 
eligible recipients. Disaggregation shall not be required if 
the number of students in a category is insufficient to yield 
statistically reliable information or which the results would 
reveal personally identifiable information about an individual 
student. Local recipients shall make the report available 
through a variety of formats, including the Internet.
    Similarly, current law requires each state to report to the 
Secretary on the progress of the state in achieving the state 
adjusted levels of performance on the core indicators. The bill 
requires states to disaggregate this data in the same way local 
eligible recipients must, also using the categories specified 
in the ESEA.
    Current law also requires that the annual report each state 
submits to the Secretary shall include a quantifiable 
description of the progress special populations participating 
in vocational and technical education have made in meeting the 
state adjusted levels of performance. H.R. 4496 builds upon 
this report by requiring that the state report include the 
progress that each of the special populations and the 
populations for which states report data on their annual state 
report card under the ESEA has made on the performance 
indicators. This reporting requirement should help states 
identify successes or weaknesses in serving the needs of 
special populations through vocational and technical education, 
just as the state report cards created through the NCLB help 
states identify academic challenges faced by such populations, 
so that performance gaps can be recognized and addressed.

Tech-Prep and Basic State Grant merger

    The most recent National Assessment for Vocational 
Education (NAVE) reported that the Tech-Prep program has yet to 
produce a seamless vocational and technical education 
programthat coordinates both secondary and postsecondary educational 
activities. Research indicates that the program has experienced a 
haphazard implementation and that few programs can be identified in the 
field as ``Tech-Prep'' as defined in current law. The Committee 
believes that Tech-Prep funding has been used at times more for loosely 
held articulation agreements rather then non-duplicative, secondary and 
postsecondary education linked programs for students. According to the 
research, funds are rarely focused on developing the well-defined 
programs that link secondary school with at least two years of 
postsecondary education, commonly called 2+2 or 2+4 programs. One of 
the Key Findings of the NAVE states:

          Tech-Prep is rarely implemented as comprehensive 
        program of study; implementation focuses on individual 
        components of Tech-Prep, some of which are becoming 
        more common in vocational education in general.
          Few consortia or schools implement Tech-Prep as a 
        structured program with at least two years of clearly 
        linked high school course work and at least two years 
        of related postsecondary course work (the ``two-plus-
        two'' design). More typically schools implement 
        components of the Tech-Prep model--maintaining 
        articulation agreements, providing professional 
        development on integration to academic or vocational 
        teachers, and improving career guidance and planning. 
        Many of these activities are becoming part of secondary 
        vocational education more broadly, and little change 
        has occurred at the postsecondary level to accommodate 
        Tech-Prep students. As a result, Tech-Prep efforts have 
        become less distinct from those of regular vocational 
        education. (NAVE Page 172)

    While articulation agreements exist on paper, there is a 
dearth of coherent, integrated programs of study. Programs are 
often defined by articulation agreements; however, they are 
rarely used by participating students to gain advanced 
standing, if and when they enter postsecondary institutions. 
According to the NAVE report, estimates have shown that only 15 
percent of Tech-Prep students earn articulated credit at 
postsecondary institutions (NAVE Page 185). As a result, 
students repeat instruction they already received in high 
school. Secondary and postsecondary ``partners'' are often 
connected by only a funding stream and, sometimes, a Tech-Prep 
coordinator. In some states, the federal Tech-Prep funds are 
allocated separately to secondary and postsecondary 
institutions, creating very little incentive for cross-level 
collaboration. Based on this research, the Committee believes 
that the Tech-Prep program can be improved by combining it with 
the Basic State Grant program, revising the definition, and 
requiring greater accountability within the program.
    H.R. 4496 maintains the Tech-Prep concept and offers 
several improvements. Under the bill, funding for the Perkins 
state grant and Tech-Prep programs are combined into one 
program, incorporating the activities of Tech-Prep, which was 
not intended to be a permanent program, into the Basic State 
Grant program. Local recipients must use these funds for tech-
prep activities as outlined in the bill. As in current law, 
Tech-Prep programs must establish articulation agreements that 
outline the purpose and activities of the program. The revised 
definition of ``Articulation Agreement'' in the bill requires 
that the agreement must be ``facilitated by the lead 
administrators of the secondary and postsecondary consortia 
members''. It is the Committee's intention that states use the 
development of articulation agreements to facilitate improved 
coordination and communication between secondary and 
postsecondary vocational and technical education programs. By 
improving coordination between secondary and postsecondary 
programs, students who participate in tech-prep activities can 
move seamlessly from secondary to postsecondary vocational and 
technical education programs and be assured that these programs 
lead to postsecondary academic and employment opportunities.
    H.R. 4496 also requires that tech-prep activities include 
credit transfer agreements, through identified progressions of 
courses that culminate in a postsecondary degree, credential or 
certificate, and allow for the co-location of secondary 
programs on postsecondary campuses. In addition, the bill 
includes enhanced professional development for Tech-Prep 
teachers, and requires the use of performance indicator data to 
inform program quality.
    The authorization of appropriations for the bill retains 
the combined basic state grant and Tech-Prep FY04 funding 
level. States must spend the same amount of money on Tech-Prep 
activities as was done in FY04. States will distribute these 
funds to eligible recipients before distributing the remainder 
of the local portion of the basic state grants.

Professional development

    The Vocational and Technical Education for the Future Act 
continues the effort started in the 1998 reauthorization of the 
Perkins Act to promote greater integration of rigorous and 
challenging academics into vocational and technical education 
programs. Vocational and technical education teachers and 
academic teachers are critical to this effort. The Committee 
believes that vocational and technical education teachers 
should not only teach their students industry content and 
skills, but they should also increase student knowledge of the 
underlying academic disciplines that are a part of each field. 
However, it is clear that most professional development 
activities are not focused on how to achieve integration and do 
not promote collaboration between academic and vocational and 
technical education teachers.
    H.R. 4496 amends the professional development requirements 
in sections 122, 124, and 134 of current law, providing a 
stronger focus on the integration of academic and vocational 
and technical education. The Committee believes that 
integration can be achieved when collaborative opportunities 
exist for academic and vocational and technical education 
teachers in professional development activities. Additionally, 
the Committee strongly encourages states through state 
leadership activities to direct attention to increasing the 
percentage of vocational and technical education teachers that 
meet teacher certification or licensing requirements and 
increasing teachers' knowledge of the effective use of applied 
learning that contributes to the academic and vocational and 
technical knowledge of students.

Program improvements

    H.R. 4496 makes various other improvements to current law. 
One such improvement is removing the requirement in current law 
that maintains an eligible recipient must expend all its 
Perkins funding within the fiscal year the grant has been 
allocated. States will have one additional year in which to 
expend their funds. The Committee believes this change will 
give locals more flexibility to use Perkins funds in a manner 
that best responds to their needs.
    Additionally, the bill clarifies that nothing in the law 
shall authorize the federal government to mandate or control a 
state, local educational agency, or school's instructional 
content, and curriculum. This language mirrors provisions found 
in the NCLB Act. H.R. 4496 also specifies that states are not 
required to have academic content or student academic 
achievement standards approved or certified by the federal 
government in order to receive funds under the law. Thirdly, 
the bill ensures a state's refusal to apply for funds under the 
Perkins Act does not prevent that state from receiving funds 
from other federal education programs.
    The Committee is committed to improving the participation 
of special populations, including single parents and displaced 
homemakers, in vocational and technical education programs that 
lead to high skill, high wage occupations. H.R. 4496 contains 
provisions to improve the success of special populations in 
vocational and technical education. The bill requires local 
recipients to use funds for activities that prepare single 
parents, including pregnant and parenting teens, and displaced 
homemakers for high skill, high wage occupations that will lead 
to self sufficiency, and to describe these activities in their 
local plan. The Committee believes examples of such activities 
include outreach, recruitment, counseling, life skills 
development, vocational assessment and testing, supportive 
services, financial literacy training, and job readiness 
preparation.
    The bill includes a new section that provides for the 
equitable participation of private school students in federally 
funded vocational education programs. This section includes 
proportional funding, equitable participation, consultation 
requirements and bypass procedures. The addition of this 
language brings the Perkins program in line with the other 
major federal education laws which also ensure equitable 
participation. Currently the No Child Left Behind Act, 
including programs under Title I, Reading First, Even Start, 
Migrant Children, Teacher and Principal Training and 
Recruitment Fund, Math and Science Partnerships, Enhancing 
Education through Technology grants, Title III programs for 
limited English proficient and immigrant students, Safe and 
Drug Free Schools, 21st Century Learning Centers, Title V 
Innovative Programs, and the Gifted and Talented Program, as 
well as the Individuals with Disabilities Education Act, ensure 
that eligible students and teachers in private schools are 
allowed to participate on an equitable basis.

National activities

    The Vocational and Technical Education for the Future Act 
focuses and streamlines the scientifically based research, 
dissemination, evaluation, and assessment required by the Act. 
Under the bill, the independent evaluation must include an 
evaluation and assessment of the implementation of vocational 
and technical education programs under the Act. The evaluation 
also must include a review of the effect of integrated rigorous 
and challenging academic and vocational and technical education 
on the achievement of students participating in vocational and 
technical education programs. The assessment must also include 
a description of the extent to which vocational and technical 
education programs prepare students for employment in high-
wage, high-skill fields, with an emphasis on math and science 
skills. These changes have been made in response to the 2004 
National Assessment for Vocational Education (NAVE). The report 
was sent to Congress nearly two years late and the Committee 
believes that it is necessary to streamline expectations and 
send a clear message of what information is to be gathered and 
researched. Therefore, the breadth of what is to be researched 
and reported on has been significantly reduced in the bill. The 
Committee expects that future NAVE reports will be submitted in 
a timely manner so that future reviews of the Perkins Act 
authorization can be fully informed of the current status of 
vocational and technical education.
    H.R. 4496 creates new national incentive grants to 
encourage and reward exemplary state performance under this 
Act. Under current law, incentive grants are awarded through 
section 503 of the Workforce Investment Act. The pending 
reauthorization of that Act creates a stand-alone incentive 
system for the WIA programs only. Consequently, the Committee 
has created in H.R. 4496 a separate incentive structure for 
vocational and technical education.
    Using the 0.54 percent of federal funding set-aside for 
this purpose, the Secretary may award grants to eligible 
agencies. The Secretary shall base the awards on an eligible 
agency exceeding the state adjusted levels of performance 
established for both secondary and postsecondary vocational and 
technical education students and showing sustained or 
significant improvement. While the Committee believes that 
states' attainment of its performance measures is most 
critical, the Committee also encourages specific programmatic 
efforts that can help drive program achievement. Therefore, the 
Secretary, when awarding incentive grants, also may consider an 
eligible agency's success in effectively developing connections 
between secondary education and postsecondary education and 
training, integration of rigorous and challenging academic and 
technical coursework, and progress in having special 
populations participating in vocational and technical education 
meet state adjusted levels of performance. (Similarly, states 
may provide incentive grants to local eligible recipients, 
based on similar criteria.)
    To reflect the desire to improve outcomes for special 
populations, including through the promotion of nontraditional 
fields, H.R. 4496 includes the progress of special populations 
in meeting the performance indicators as a factor in awarding 
both the state and local incentive grants.

Guidance and counseling

    Under current law, the Perkins law authorizes federal 
funding to support state career guidance and academic 
counseling programs. The Committee believes these activities 
should be tied directly to and support the provision of 
vocational and technical education activities of the Act. 
Therefore, H.R. 4496 requires the Governor and the eligible 
agency in a state to designate an entity responsible for the 
provision of occupational and employment information. The 
jointly designated entity shall submit an application to the 
Secretary at the same time the state submits its state plan for 
vocational and technical education. At a minimum, the 
application shall describe how the jointly designated agency 
will assist the eligible agency in meeting its adjusted levels 
of performance for the performance indicators established for 
secondary and postsecondary vocational and technical education 
students. The Committee anticipates that the activities 
provided through these grants can and should impact state 
program performance under the basic state grant. For instance, 
career guidance and academic counseling can help educate 
students, and their parents, about education and training 
options available to them. When students, assisted by their 
parents, make choices regarding secondary and 
postsecondaryeducation options with the full knowledge of the kinds of 
academic and technical coursework necessary for completion, and the 
postsecondary options and occupations available to them upon 
completion, the Committee believes that more students will complete 
secondary and appropriate postsecondary education.

Updated terminology

    H.R. 4496 ensures that the academic education for 
vocational and technical education students will be rigorous 
and challenging, and emphasizes student achievement in core 
academic subjects, as defined by the No Child Left Behind Act 
(NCLB). The Committee believes that the emphasis on rigorous 
and challenging academics will help to better serve students 
enrolled in vocational and technical education programs. 
Additionally, the bill requires that research be 
``scientifically based research,'' also as defined in NCLB.
    The Committee updated the definition of ``vocational and 
technical education'' with new language that emphasizes that 
vocational and technical education courses should provide 
students with the rigorous and challenging academic and 
technical knowledge and skills they need in preparation for 
further education or the workplace. The Committee believes that 
this preparation can certainly be for fields that require a 
baccalaureate degree. The definition therefore permits 
vocational and technical education to include programs that 
culminate in a baccalaureate degree and not just those which 
have an associate's degree as the highest degree attainable. 
The definition is further updated to clarify that vocational 
and technical education may ``include the provision of skills 
or courses necessary to enroll in a sequence of courses.'' This 
language was added to ensure that students, particularly adult 
learners, can receive instruction in basic skills and refresher 
courses that they might need in order to take a sequence of 
courses that ``provides, at the postsecondary level, for a 1-
year certificate, an associate degree, or industry recognized 
credential.''
    The bill replaces the term ``nontraditional training and 
employment'' with ``nontraditional fields.'' While the 
definition remains largely unchanged from current law, the 
Committee has included the phrase ``current high skill 
occupations.'' Current law only specifies ``emerging high skill 
occupations.''
    The Committee added ``supportive services'' as a defined 
term in the law. Supportive services include such services as 
transportation, child care, dependent care, and needs-based 
payments that are necessary to enable an individual to 
participate in vocational and technical education activities. 
The Committee recognizes that special populations, including 
single parents and displaced homemakers, may need supportive 
services, such as child care and transportation, to be able to 
participate successfully in vocational and technical education. 
The Committee does not believe that Perkins money should pay 
for these services, since numerous other federal, state, and 
local programs provide supportive services. However, H.R. 4496 
allows the provision of information relating to supportive 
services, and referral to providers of these types of services, 
as a permissive use of local funds in order to reduce the 
barriers faced by special populations.

Conclusion

    The Committee believes that vocational and technical 
education plays a critical role in America's secondary and 
postsecondary education systems. It is a fundamental part of 
the Committee's efforts to improve education at all levels. The 
Vocational and Technical Education for the Future Act bolsters 
the focus on rigorous and challenging academics coupled with 
vocational and technical education. The Committee believes that 
all vocational and technical education should also provide 
clear connections with the options beyond high school that most 
Americans need for continued success. H.R. 4496 fulfills those 
high standards.

                      Section-by-Section Analysis

    Section 1--Short Title. Cites the short title as the 
Vocational and Technical Education for the Future Act.
    Section 2--References. States that any amendment in this 
Act to repeal or amend a section or a provision repeals or 
amends a section or provision of the Carl D. Perkins Vocational 
and Technical Education Act of 1998 (20 U.S.C. 2301 et seq.).
    Section 3--Purposes and Definitions. Amends Section 2(2) 
and Section 3 of the Carl D. Perkins Vocational and Technical 
Education Act of 1998 (20 U.S.C. 2301(2) and 2302). Inserts 
``rigorous and challenging'' to strengthen the academic, 
vocational, and technical instruction. Removes the separate 
definition of the term ``Tech-Prep Program,'' and defines or 
modifies the current definition of the following terms: 
``Articulation Agreement,'' ``Career Guidance and Academic 
Counseling,'' ``Cooperative Education,'' ``Eligible 
Institution,'' ``Scientifically Based Research,'' ``Special 
Populations,'' ``Supportive Services,'' and ``Vocational and 
Technical Education.'' Replaces ``Nontraditional Training and 
Employment'' with ``Nontraditional Fields.'' Adds language 
making technical corrections to current law.
    Section 4--Transition Provisions. Amends Section 4 of the 
Carl D. Perkins Vocational and Technical Education Act of 1998 
(20 U.S.C. 2303). Changes outdated reference language referring 
to past and current law, and allows 1 full fiscal year for 
planning and implementation.
    Section 5--Authorization of Appropriations. Amends Section 
8 of the Carl D. Perkins Vocational and Technical Education Act 
of 1998 (20 U.S.C. 2307). Authorizes $1,307,000,000 for fiscal 
year 2005 and such sums for fiscal years 2006 through 2010. 
This authorization does not pertain to Sections 114, 117, and 
118.
    Section 6--Prohibitions. Amends the Carl D. Perkins 
Vocational and Technical Education Act of 1998 (20 U.S.C. 2301 
et seq.). Adds a new section prohibiting the following: 
unfunded federal mandates, preclusion of States from other 
available services provided by the Secretary of Education, the 
requirement of federal standards of academic content or student 
academic achievement for assistance under this Act (precluding 
any other provision of federal law), and language stating that 
this section does not affect requirements under Section 113.
    Section 7--Allotment and Allocation to States. Amends 
Section 111(a) and Section 112 of the Carl D. Perkins 
Vocational and Technical Education Act of 1998 (20 U.S.C. 2321 
and 2322). Requires the Secretary to reserve certain 
percentages of appropriated funds under Section 8 of the Carl 
D. Perkins Vocational and Technical Education Act of 1998 (20 
U.S.C. 2301 et seq.) for carrying out National Activities, 
Assistance for the Outlying Areas, and Native American 
Programs. Adds language updating a hold harmless for certain 
State allotments and providing a technical correction. Updates 
the funding allocation formula.
    Section 8--Accountability. Amends Section 113 of the Carl 
D. Perkins Vocational and Technical Education Act of 1998 (20 
U.S.C. 2323). Adds language including a local performance 
accountability system. Adds language focusing the core 
indicators of performance for secondary students and tying them 
to the standards established by the State under Section 
1111(b)(1) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6311(b)(1). Includes allowances for individuals 
with disabilities and special characteristics, and adds student 
graduation rates as described in Section 1111(b)(2)(C)(vi) of 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
6311(b)(2)(C)(vi) as an indicator of performance. Adds a new 
subparagraph establishing core indicators of performance for 
postsecondary students. Adds language that requires States to 
make ``continuous and substantial improvement,'' and that 
outlines specific State and local levels of performance for 
subsequent years, to be included in the State and local plans. 
Requires eligible agencies to submit an annual report, in which 
the data is disaggregated and according to categories 
enumerated under Section 1111(b)(2)(C)(v)(II) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 
6311(b)(2)(C)(v)(II)), except when the data would not be useful 
due to sample size or would reveal personally identifiable 
information. Requires the State report to disaggregate the data 
in the same manner, and modifies ``special populations'' to 
include populations described in Section 3(25) of this Act and 
in Section 1111(h)(1)(C)(i) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6311(h)(1)(C)(i)). Requires 
States and locals to identify and quantify any disparities or 
gaps in performance between any of the categories of students 
and the remainder of students served by the eligible recipient. 
Adds language updating antiquated terms and making technical 
corrections.
    Section 9--National Activities. Amends Section 114 of the 
Carl D. Perkins Vocational and Technical Education Act of 1998 
(20 U.S.C. 2324). Continues to allow the National Center for 
Education Statistics to internationally compare its collected 
data, but now in the aggregate. Adds language modifying the 
Independent Advisory Panel and the Evaluation and Assessment, 
eliminating the Demonstration Partnership but continuing the 
Demonstration Program, as well as making clarifying and 
technical changes. Authorizes appropriations for subsections a, 
b, and c of this section at such sums for fiscal years 2005 
through 2010. Adds a new subsection instituting incentive 
grants for eligible agencies that demonstrate exemplary 
performance in carrying out programs under this Act.
    Section 10--Outlying Areas, Native American Programs, and 
Tribally Controlled Institutions. Amends Section 115, Section 
116, Section 117, and Section 118 of the Carl D. Perkins 
Vocational and Technical Education Act of 1998 (20 U.S.C. 2325, 
2326, 2327, and 2328). Specifies dollar amounts for grants to 
Guam, American Samoa, the Commonwealth of the Northern Mariana 
Islands, and the Republic of Palau. Redistributes excess funds 
in equal proportion to Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands, for the purposes 
of providing direct vocational and technical education 
services. Restricts the Republic of Palau from receiving funds 
under this section upon entering into agreement for extension 
of United States educational assistance under the Compact of 
Free Association. Requires the Secretary to confer and allow 
participation of representatives of Indian tribes, tribal 
organizations, and individual tribe members. Directs assistance 
to students enrolled in postsecondary vocational and technical 
education programs. Requires the Governor of the State and the 
eligible entity to designate an entity in the State responsible 
for conducting the State Level Activities, and requires that 
agency to submit an application to the Secretary. Specifies the 
activities that agency will conduct. Removes an outdated 
provision and makes clarifying and technical changes.
    Section 11--State Administration. Amends Section 121 of the 
Carl D. Perkins Vocational and Technical Education Act of 1998 
(20 U.S.C. 2341). Specifies the duties and responsibilities of 
an Eligible Agency, and allows for the delegation of 
responsibilities that involve administration operation and 
supervision of activities to one or more appropriate State 
agencies.
    Section 12--State Plan. Amends Section 122 of the Carl D. 
Perkins Vocational and Technical Education Act of 1998 (20 
U.S.C. 2342). Extends the plan from covering a 5 year period to 
a 6 year period. Expands the groups involved in the Hearing 
Process and Plan Development, as well as in vocational and 
technical education programs. Adds to the plan contents 
language regarding the development of model sequences of 
courses, how information is distributed, how integration 
quality is reported, and the criteria that will be used to 
evaluate and approve eligible recipients. Requires for the 
destruction of personal information during equipment disposal 
process. Modifies existing language to strengthen the plan, to 
clarify the role of the eligible recipients and the use of 
funds, to specify results of comprehensive professional 
development, to define ``core academic subjects'' as they are 
described in Section 9101(11) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7801(11)), and to focus 
student improvement. Removes outdated language from the plan 
and replaces it with language describing how eligible agencies 
will award grants for local activities, and how eligible 
agencies will carry out measurable, sustainable, and 
coordinated tech-prep activities. Updates antiquated terms.
    Section 13--Improvement Plans. Amends Section 123 of the 
Carl D. Perkins Vocational and Technical Education Act of 1998 
(20 U.S.C. 2343). Modifies existing State Program Improvement 
subsection to allow for technical assistance to eligible 
agencies failing to meet adjusted levels of performance, to 
allow the sanction of eligible agencies that need to but have 
not implemented an improvement plan, to create a waiver for 
special circumstances, and to direct the funds withheld due to 
sanctions. Modifies the existing Local Program Improvement 
subsection to provide for the annual evaluation of the adjusted 
levels of performance, to create an improvement plan if 
performance gaps exist, to allow for technical assistance and 
sanctions, to create a waiver for special circumstances, and to 
direct funds resulting from reduced allotments.
    Section 14--State Leadership Activities. Amends Section 124 
of the Carl D. Perkins Vocational and Technical Education Act 
of 1998 (20 U.S.C. 2344). Adds language to the required use of 
funds that does the following: places an emphasis on learning, 
math and science education, scientifically based research, and 
improving student achievement; enhances 
professionaldevelopment; enhances academic integration; supports 
partnerships and completion of model sequences of courses; supports 
entrepreneurship education and training; and changes technical 
assistance from a permissible use of funds to a required use of funds. 
Adds language to the permissible use of funds subsection that focuses 
education courses on current and emerging occupations in demand and 
allows for the awarding of incentive grants to eligible recipients for 
exemplary performance. Updates antiquated language.
    Section 15--Distribution of Funds to Secondary School 
Programs. Amends Section 131 of the Carl D. Perkins Vocational 
and Technical Education Act of 1998 (20 U.S.C. 2351). Removes 
outdated language, and updates existing language.
    Section 16--Elimination of Redistribution Rule. Amends 
Section 133 of the Carl D. Perkins Vocational and Technical 
Education Act of 1998 (20 U.S.C. 2353). Removes the subsection 
requiring eligible recipients to return funds that were not 
able to be spent within one academic year.
    Section 17--Local Plan for Vocational and Technical 
Education Programs. Amends Section 134(b) of the Carl D. 
Perkins Vocational and Technical Education Act of 1998 (20 
U.S.C. 2354(b)). Adds to or modifies the contents of the local 
plan to do the following: update and strengthen it, include 
model sequences of courses, describe how comprehensive 
professional development will be provided, integrate rigorous 
and challenging academics and vocational and technical 
education, and provide opportunities to special populations, 
including single parents and displaced homemakers, for high 
skill, high wage occupations that will lead to self-
sufficiency.
    Section 18--Local Use of Funds. Amends Section 135 of the 
Carl D. Perkins Vocational and Technical Education Act of 1998 
(20 U.S.C. 2355). Updates Requirements for Uses of Funds to 
specify that funds are to be used to support vocational and 
technical education programs that link secondary and 
postsecondary vocational and technical education and that 
reflect the inclusion of model sequences of courses, the 
implementation of tech prep programs, and the integration of 
core academic subjects as they are described in Section 
9101(11) of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7801(11)). Programs are also to develop, improve, or 
expand the use of technology and math and science knowledge and 
education in vocational and technical education. Other required 
uses of funds include strengthening teacher training and the 
provision of activities for special populations and displaced 
homemakers. Language in this section adds the following as 
activities under permissive use of funds: career guidance and 
academic counseling regarding postsecondary options (including 
for some adults), local education and business partnerships 
(including special arrangements allowing qualified industry 
professionals to serve as faculty in postsecondary programs), 
the support of entrepreneurship education and training, the 
expansion of postsecondary options (including distance 
education), the development of new model sequences of courses, 
and the provision of information regarding supportive services. 
Also makes clarifying and technical changes and updates 
antiquated terms.
    Section 19--Repeal of Tech-Prep Education Act. Repeals 
Title II of the Carl D. Perkins Vocational and Technical 
Education Act of 1998 (20 U.S.C. 2071 et seq.).
    Section 20--General Provisions. Repeals Title II of the 
Carl D. Perkins Vocational and Technical Education Act of 1998 
(20 U.S.C. 2071 et seq.). Redesignates Title III of the Carl D. 
Perkins Vocational and Technical Education Act of 1998 (20 
U.S.C. 2391 et seq.) as Title II and redesignates sections 
accordingly. Amends Sections 211(b) and 217 (20 U.S.C. 2391) 
(as so redesignated) of the Carl D. Perkins Vocational and 
Technical Education Act of 1998. Adds a new subsection defining 
the term ``the preceding fiscal year.'' Adds language to 
provide for the equal participation of students enrolled in 
private, non-profit elementary and secondary schools in the 
general and concentrated services and programs funded under the 
Act. Requires that the provision of services be carried out by 
employees of a public agency or contracted entities of a public 
agency, acting separately from any private school or religious 
organization, and outlines actions to be taken when the 
eligible agency does not or cannot provide these services. 
Makes clarifying and technical changes.

                       Explanation of Amendments

    The Amendment in the Nature of a Substitute is explained in 
the body of this report.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. This bill, H.R. 4496, the ``Vocational and Technical 
Education for the Future Act,'' strengthens and improves the 
Carl D. Perkins Vocational and Technical Education Act by 
enhancing local accountability, introducing model sequences of 
courses that incorporate both secondary and postsecondary 
elements in a non-duplicative progression of courses, and 
merging the stand-alone Tech-Prep program with the Basic State 
Grant program. This bill does not prevent legislative branch 
employees from receiving the benefits of this legislation.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement of 
whether the provisions of the reported bill include unfunded 
mandates. H.R. 4496 strengthens and improves the Carl D. 
Perkins Vocational and Technical Education Act by enhancing 
local accountability, introducing model sequences of courses 
that incorporate both secondary and postsecondary elements in a 
non-duplicative progression of courses, and merging the stand-
alone Tech-Prep program with the Basic State Grant program. As 
such, the bill does not contain any unfunded mandates.
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  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the body of this report.

   New Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974 and with respect to 
requirements of 3(c)(3) of rule XIII of the House of 
Representatives and section 402 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for H.R. 4496 from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 12, 2004.
Hon. John A. Boehner,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4496, the 
Vocational and Technical Education for the Future Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Justin 
Humphrey.
            Sincerely,
                                         Elizabeth Robinson
                               (For Douglas Holtz-Eakin, Director).
    Enclosure.

H.R. 4496--Vocational and Technical Education for the Future Act

    Summary: H.R. 4496 would amend the Carl D. Perkins 
Vocational and Technical Education Act of 1998 and reauthorize 
secondary and postsecondary vocational education programs 
through fiscal year 2011. These programs are currently 
authorized through 2004 by the General Education Provisions Act 
(GEPA). The bill would authorize appropriations of $1.3 billion 
for these purposes for fiscal year 2005 and an estimated $10 
billion for fiscal years 2005 through 2011, assuming 
adjustments for inflation. Assuming the appropriation of the 
necessary funds, the resulting outlays would total $67 million 
of for 2005 and $7.4 billion for the seven-year period. The 
bill would not affect direct spending or revenues.
    H.R. 4496 would repeal Title II, the Tech-Prep Education 
Act, of the Carl D. Perkins Vocational and Technical Education 
Act of 1998, and merge funding for Tech Prep programs with the 
state grant program. A ``hold harmless'' provision would ensure 
that states receive the same amount of funding for Tech-Prep 
programs in fiscal year 2005 as they did in the previous year, 
and Tech-Prep would be added to the list of local uses for the 
reserve fund.
    H.R. 4496 contains no private-sector or intergovernmental 
mandates as defined in the Unfunded Mandates Reform Act (UMRA), 
and any costs to state, local, or tribal governments would 
result from complying with conditions of federal assistance.
    Estimated cost to the Federal Government: The estimated 
federal budgetary impact of H.R. 4496 is shown in the following 
table. The costs of this legislation fall within budget 
function 500 (education, training, employment, and social 
services).

----------------------------------------------------------------------------------------------------------------
                                                             By fiscal year, in millions of dollars--
                                                 ---------------------------------------------------------------
                                                   2004    2005    2006    2007    2008    2009    2010    2011
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law for Vocational
 Education:
    Budget Authority \1\........................   1,335       0       0       0       0       0       0       0
    Estimated Outlays...........................   1,326   1,294     334      67       0       0       0       0
Proposed Changes:
    Section 5--State Grants:
        Estimated Authorization Level...........       0   1,307   1,333   1,361   1,389   1,420   1,451   1,483
        Estimated Outlays.......................       0      39     981   1,262   1,354   1,382   1,412   1,443
    Section 9--National Activities:
        Estimated Authorization Level...........       0      12      12      12      13      13      13      14
        Estimated Outlays.......................       0       *       9      12      12      13      13      13
    Section 10--Tribally Controlled
     Postsecondary Vocational Institutions:
        Estimated Authorization Level...........       0       7       7       7       7       8       8       8
        Estimated Outlays.......................       0       *       5       7       7       7       8       8
    Section 10--Occupational and Employment
     Information:
        Estimated Authorization Level...........       0       9       9       9      10      10      10      10
        Estimated Outlays.......................       0       *       7       9       9      10      10      10
Total Changes:
    Estimated Authorization Level...............       0   1,335   1,361   1,390   1,419   1,451   1,482   1,515
    Estimated Outlays...........................       0      40   1,002   1,289   1,383   1,411   1,442   1,474
Spending under H.R. 4496 for Vocational
 Education:
    Estimated Authorization Level \1\...........   1,335   1,335   1,361   1,390   1,419   1,451   1,482   1,515
    Estimated Outlays...........................   1,326   1,334   1,336   1,356   1,383   1,411   1,442   1,474
----------------------------------------------------------------------------------------------------------------
\1\ The 2004 amount is the total appropriated that year for vocational and technical education.

Notes.--Components may not sum to totals because of rounding. *=Less than $500,000.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
4496 will be enacted this fall and that the necessary amounts 
will be appropriated for each year. Estimated outlays are based 
on the historical spending of programs authorized by the Carl 
D. Perkins Vocational Education Act.

State grants

    Section 5 of H.R. 4496 would authorize $1.3 billiion for 
state grants for fiscal year 2005 and such sums as may be 
necessary for fiscal years 2006 through 2011. CBO estimates 
that this provision would authorize $9.7 billion for fiscal 
years 2005 through 2011. Appropriations for state grants 
totaled $1.2 billion in 2004.
    These formula grants would be used for vocational programs 
in high schools, technical schools, and community colleges. The 
2005 authorization level would include funding for Tech-Prep 
Education, which is currently authorized under Title II of the 
Carl D. Perkins Vocational and Technical Education Act of 1998. 
(Section 19 of H.R. 4496 would repeal that title of the Carl D. 
Perkins Vocational and Technical Education Act of 1998.) Under 
H.R. 4496, states would still receive the same level of 
appropriations for Tech-Prep programs in fiscal year 2005 that 
they received in 2004.
    The bill also would alter the formula for allotment of the 
state reserve fund established with funding from the state 
grants. H.R. 4496 would reduce state reserve funds for 
vocational education assistance for outlying areas such as Guam 
and American Samoa (from 0.2 percent of appropriations of state 
grants to 0.12 percent). It would allot 0.54 percent of 
appropriations to incentive grants for agencies that exceed 
state performance measures on vocational education. Previously, 
these reserve funds had been used for incentive grants under 
the Workforce Investment Act of 1998.
    In addition, H.R. 4496 would increase from 85 percent to 88 
percent the minimum amount of the State grant funds to be 
distributed to localities and would reduce from 5 percent to 2 
percent the funds provided to states to administer the program.

National activities

    Section 9 would authorize such sums as may be necessary for 
fiscal years 2005 through 2011 to collect data on vocational 
education performance and to support research on the 
effectiveness of vocational and technical education. CBO 
estimates that this section would authorize $12 million in 
fiscal year 2005 and $89 million over the seven-year period. 
Thisestimate is based on previous appropriations for National 
Activities, which received $12 million in 2004. This section of H.R. 
4496 also would eliminate the Demonstration Partnership, which has 
never received funding.

Tribally controlled postsecondary vocational and technical institutions

    Section 10 of H.R. 4496 would authorize the appropriation 
of such sums as may be necessary for fiscal years 2005 through 
2011 to fund tribally controlled postsecondary vocational and 
technical institutions. Based on historical funding levels for 
these activities, CBO estimates this section would authorize $7 
million in funding for fiscal year 2005 and an additional $45 
million for fiscal years 2006 through 2011. Tribally controlled 
postsecondary vocational and technical institutions received $7 
million in fiscal year 2004.

Occupational and employment information

    Section 10 also would authorize the appropriation of such 
sums as may be necessary for fiscal years 2005 through 2011 to 
improve vocational education counseling services and career 
guidance. CBO estimates an authorization level of $9 million 
for fiscal year 2005, similar to the funding provided in 2004, 
and a total of $67 million for the entire seven-year period.
    Intergovernmental and private-sector impact: H.R. 4496 
contains no private-sector or intergovernmental mandates as 
defined in UMRA, and any costs to state, local, or tribal 
governments would result from complying with conditions of 
federal assistance.
    Estimate prepared by: Federal Costs: Justin Humphrey; 
Impact on State, Local, and Tribal Governments: Sarah Puro; and 
Impact on the Private Sector: Meena Fernandes.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

         Statement of General Performance Goals and Objectives

    In accordance with Clause (3)(c) of House Rule XIII, the 
goal of H.R. 4496 is to strengthen and improve the Carl D. 
Perkins Vocational and Technical Education Act by enhancing 
local accountability, introducing model sequences of courses 
that incorporate both secondary and postsecondary elements in a 
non-duplicative progression of courses, and merging the stand-
alone Tech-Prep program with the Basic State Grant program. The 
Committee expects the Department of Education to comply with 
H.R. 4496 and implement the changes to the law in accordance 
with the changes.

                   Constitutional Authority Statement

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress in the 
Constitution to enact the law proposed by H.R. 4496. The 
Committee believes that the amendments made by this bill, which 
authorize appropriations for vocational education, are within 
Congress' authority under Article I, section 8, clause 1 of the 
Constitution.

                           Committee Estimate

    Clauses 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 4496. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

     CARL D. PERKINS VOCATIONAL AND TECHNICAL EDUCATION ACT OF 1998


SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) * * *
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

Sec. 1. Short title; table of contents.
     * * * * * * *
Sec. 9. Prohibitions.
     * * * * * * *

                     [TITLE II--TECH-PREP EDUCATION

[Sec. 201. Short title.
[Sec. 202. Definitions.
[Sec. 203. State allotment and application.
[Sec. 204. Tech-prep education.
[Sec. 205. Consortium applications.
[Sec. 206. Report.
[Sec. 207. Demonstration program.
[Sec. 208. Authorization of appropriations.

                     [TITLE III--GENERAL PROVISIONS

               [Part A--Federal Administrative Provisions

[Sec. 311. Fiscal requirements.
[Sec. 312. Authority to make payments.
[Sec. 313. Construction.
[Sec. 314. Voluntary selection and participation.
[Sec. 315. Limitation for certain students.
[Sec. 316. Federal laws guaranteeing civil rights.
[Sec. 317. Authorization of Secretary.
[Sec. 318. Participation of private school personnel.

                [Part B--State Administrative Provisions

[Sec. 321. Joint funding.
[Sec. 322. Prohibition on use of funds to induce out-of-State relocation 
          of businesses.
[Sec. 323. State administrative costs.
[Sec. 324. Limitation on Federal regulations.
[Sec. 325. Student assistance and other Federal programs.]

                      TITLE II--GENERAL PROVISIONS

                Part A--Federal Administrative Provisions

Sec. 211. Fiscal requirements.
Sec. 212. Authority to make payments.
Sec. 213. Construction.
Sec. 214. Voluntary selection and participation.
Sec. 215. Limitation for certain students.
Sec. 216. Federal laws guaranteeing civil rights.
Sec. 217. Participation of private school children.
Sec. 218. Participation of private school personnel.

                 Part B--State Administrative Provisions

Sec. 221. Joint funding.
Sec. 222. Prohibition on use of funds to induce out-of-State relocation 
          of businesses.
Sec. 223. State administrative costs.
Sec. 224. Limitation on Federal regulations.
Sec. 225. Student assistance and other Federal programs.

           *       *       *       *       *       *       *


SEC. 2. PURPOSE.

  The purpose of this Act is to develop more fully the 
academic, vocational, and technical skills of secondary 
students and postsecondary students who elect to enroll in 
vocational and technical education programs, by--
          (1) * * *
          (2) promoting the development of services and 
        activities that integrate rigorous and challenging 
        academic, vocational, and technical instruction, and 
        that link secondary and postsecondary education for 
        participating vocational and technical education 
        students;

           *       *       *       *       *       *       *


SEC. 3. DEFINITIONS.

  In this Act:
          (1) * * *

           *       *       *       *       *       *       *

          (4) Articulation agreement.--The term ``articulation 
        agreement'' means a written commitment, agreed upon at 
        the State level or approved annually and facilitated by 
        the lead administrators of the secondary and 
        postsecondary consortia members as described in section 
        135(b)(3)(A), to a program designed to provide students 
        with a nonduplicative sequence of progressive 
        achievements leading to degrees, certificates, or 
        credentials in a tech-prep education program linked 
        through credit transfer agreements.
          [(4)] (5) Career guidance and academic counseling.--
        The term ``career guidance and academic counseling'' 
        means providing access to students (and parents, as 
        appropriate) to information regarding career awareness 
        and planning with respect to an individual's 
        occupational and academic future that shall involve 
        guidance and counseling with respect to career options, 
        financial aid, and postsecondary options.
          [(5)] (6) Charter school.--The term ``charter 
        school'' has the meaning given the term in section 
        [5206] 5210 of the Elementary and Secondary Education 
        Act of 1965.
          [(6)] (7) Cooperative education.--The term 
        ``cooperative education'' means a method [of 
        instruction] of education for individuals who, through 
        written cooperative arrangements between a school and 
        employers, receive instruction, including required 
        rigorous and challenging academic courses and related 
        vocational and technical education instruction, by 
        alternation of study in school with a job in any 
        occupational field, which alternation shall be planned 
        and supervised by the school and employer so that each 
        contributes to the education and employability of the 
        individual, and may include an arrangement in which 
        work periods and school attendance may be on alternate 
        half days, full days, weeks, or other periods of time 
        in fulfilling the cooperative program.
          [(7)] (8) Displaced homemaker.--The term ``displaced 
        homemaker'' means an individual who--
                  (A)(i) * * *

           *       *       *       *       *       *       *

          [(8)] (9) Educational service agency.--The term 
        ``educational service agency'' has the meaning given 
        the term in section 9101 of the Elementary and 
        Secondary Education Act of 1965.
          [(9)] (10) Eligible agency.--The term ``eligible 
        agency'' means a State board designated or created 
        consistent with State law as the sole State agency 
        responsible for the administration of vocational and 
        technical education or for supervision of the 
        administration of vocational and technical education in 
        the State.
          [(10)] (11) Eligible institution.--The term 
        ``eligible institution'' means--
                  (A) [an] a public or nonprofit private 
                institution of higher education;

           *       *       *       *       *       *       *

          [(11)] (12) Eligible recipient.--The term ``eligible 
        recipient'' means--
                  (A) * * *

           *       *       *       *       *       *       *

          [(12)] (13) Governor.--The term ``Governor'' means 
        the chief executive officer of a State or an outlying 
        area.
          [(13)] (14) Individual with limited english 
        proficiency.--The term ``individual with limited 
        English proficiency'' means a secondary school student, 
        an adult, or an out-of-school youth, who has limited 
        ability in speaking, reading, writing, or understanding 
        the English language, and--
                  (A) * * *

           *       *       *       *       *       *       *

          [(14)] (15) Individual with a disability.--
                  (A) * * *

           *       *       *       *       *       *       *

          [(15)] (16) 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.
          [(16)] (17) Local educational agency.--The term 
        ``local educational agency'' has the meaning given the 
        term in section 9101 of the Elementary and Secondary 
        Education Act of 1965.
          [(17)] (18) Nontraditional [training and employment] 
        fields.--The term ``nontraditional [training and 
        employment] fields'' means occupations or fields of 
        work, including careers in computer science, 
        technology, and other current and emerging high skill 
        occupations, for which individuals from one gender 
        comprise less than 25 percent of the individuals 
        employed in each such occupation or field of work.
          [(18)] (19) Outlying area.--The term ``outlying 
        area'' means the United States Virgin Islands, Guam, 
        American Samoa, the Commonwealth of the Northern 
        Mariana Islands, [the Republic of the Marshall Islands, 
        the Federated States of Micronesia,] and the Republic 
        of Palau.
          [(19)] (20) Postsecondary educational institution.--
        The term ``postsecondary educational institution'' 
        means--
                  (A) * * *

           *       *       *       *       *       *       *

          [(20)] (21) School dropout.--The term ``school 
        dropout'' means an individual who is no longer 
        attending any school and who has not received a 
        secondary school diploma or its recognized equivalent.
          (22) Scientifically based research.--The term 
        ``scientifically based research'' has the meaning given 
        that term in section 9101(37) of the Elementary and 
        Secondary education Act of 1965 (20 U.S.C. 780137)).
          [(21)] (23) Secondary school.--The term ``secondary 
        school'' has the meaning given the term in section 9101 
        of the Elementary and Secondary Education Act of 1965.
          [(22)] (24) Secretary.--The term ``Secretary'' means 
        the Secretary of Education.
          [(23)] (25) Special populations.--The term ``special 
        populations'' means--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) individuals preparing for nontraditional 
                [training and employment] fields;

           *       *       *       *       *       *       *

                  (E) displaced homemakers; [and]
                  (F) [individuals with other barriers to 
                educational achievement, including] individuals 
                with limited English proficiency[.]; and
                  (G) individuals with other barriers to 
                educational achievement, as determined by the 
                State.
          [(24)] (26) State.--The term ``State'', unless 
        otherwise specified, means each of the several States 
        of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, and each outlying area.
          [(25)] (27) Support services.--The term ``support 
        services'' means services related to curriculum 
        modification, equipment modification, classroom 
        modification, supportive personnel, and instructional 
        aids and devices.
          [(26) Tech-prep program.--The term ``tech-prep 
        program'' means a program of study that--
                  [(A) combines at least 2 years of secondary 
                education (as determined under State law) and 2 
                years of postsecondary education in a 
                nonduplicative sequential course of study;
                  [(B) strengthens the applied academic 
                component of vocational and technical education 
                through the integration of academic, and 
                vocational and technical, instruction;
                  [(C) provides technical preparation in an 
                area such as engineering technology, applied 
                science, a mechanical, industrial, or practical 
                art or trade, agriculture, a health occupation, 
                business, or applied economics;
                  [(D) builds student competence in 
                mathematics, science, and communications 
                (including through applied academics) in a 
                coherent sequence of courses; and
                  [(E) leads to an associate degree or a 
                certificate in a specific career field, and to 
                high skill, high wage employment, or further 
                education.]
          (28) Supportive services.--The term ``supportive 
        services'' means services such as transportation, child 
        care, dependent care, and needs-based payments, that 
        are necessary to enable an individual to participate in 
        activities authorized under this Act.
          [(27)] (29) Tribally controlled college or 
        university.--The term ``tribally controlled college or 
        university'' has the meaning given such term in section 
        [2] 2(a)(4) of the Tribally Controlled College or 
        University Assistance Act of 1978 (25 U.S.C. 
        1801(a)(4)).
          [(28)] (30) Tribally controlled postsecondary 
        vocational and technical institution.--The term 
        ``tribally controlled postsecondary vocational and 
        technical institution'' means an institution of higher 
        education (as defined in section 101 of the Higher 
        Education Act of 1965, except that paragraph (2) of 
        subsection (a) of such section shall not be applicable 
        and the reference to Secretary in paragraph (5)(A) of 
        such [section] subsection shall be deemed to refer to 
        the Secretary of the Interior) that--
                  (A) * * *

           *       *       *       *       *       *       *

          [(29)] (31) Vocational and technical education.--The 
        term ``vocational and technical education'' means 
        organized educational activities that--
                  [(A) offer a sequence of courses that 
                provides individuals with the academic and 
                technical knowledge and skills the individuals 
                need to prepare for further education and for 
                careers (other than careers requiring a 
                baccalaureate, master's, or doctoral degree) in 
                current or emerging employment sectors; and]
                  (A) offer a sequence of courses that--
                          (i) provides individuals with the 
                        rigorous and challenging academic and 
                        technical knowledge and skills the 
                        individuals need to prepare for further 
                        education and for careers (other than 
                        careers requiring a master's or 
                        doctoral degree) in current or emerging 
                        employment sectors;
                          (ii) may include the provision of 
                        skills or courses necessary to enroll 
                        in a sequence of courses that meet the 
                        requirements of this subparagraph; and
                          (iii) provides, at the postsecondary 
                        level, for a 1-year certificate, an 
                        associate degree, or industry 
                        recognized credential; and

           *       *       *       *       *       *       *

          [(30)] (32) Vocational and technical student 
        organization.--
                  (A) * * *

           *       *       *       *       *       *       *


SEC. 4. TRANSITION PROVISIONS.

  The Secretary shall take such steps as the Secretary 
determines to be appropriate to provide for the orderly 
transition to the authority of this Act from any authority 
under provisions of [the Carl D. Perkins Vocational and Applied 
Technology Education Act] ``the Carl D. Perkins Vocational and 
Technical Education Act of 1998'', as such Act was in effect on 
the day before the date of enactment of [the Carl D. Perkins 
Vocational and Applied Technology Education Amendments of 1998] 
the Vocational and Technical Education for the Future Act. Each 
eligible agency shall be assured 1 full fiscal year for 
transition, to plan for and implement the requirements of this 
Act.

           *       *       *       *       *       *       *


[SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

  [There is authorized to be appropriated to carry out this Act 
(other than sections 114, 117, and 118, and title II) such sums 
as may be necessary for each of the fiscal years 1999 through 
2003.]

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

  There is authorized to be appropriated to carry out this Act 
(other than subsection (a), (b), and (c) of section 114, and 
sections 117 and 118) $1,307,000,000 for fiscal year 2005 and 
such sums as may be necessary for each of fiscal years 2006 
through 2010.

SEC. 9. PROHIBITIONS.

  (a) Local Control.--Nothing in this Act shall be construed to 
authorize an officer or employee of the Federal government to 
mandate, direct, or control a State, local educational agency, 
or school's curriculum, program of instruction, or allocation 
of State or local resources, or mandate a State or any 
subdivision thereof to spend any funds or incur any costs not 
paid for under this Act.
  (b) No Preclusion of Other Assistance.--Any State that 
declines to submit an application to the Secretary for 
assistance under this Act shall not be precluded from applying 
for assistance under any other program administered by the 
Secretary.
  (c) Prohibition on Requiring Federal Approval or 
Certification of Standards.--Notwithstanding any other 
provision of Federal law, no State shall be required to have 
academic and vocational and technical content or student 
academic and vocational and technical achievement standards 
approved or certified by the Federal government, in order to 
receive assistance under this Act.
  (d) Rule of Construction.--Nothing in this section shall be 
construed to affect requirements under section 113.

  TITLE I--VOCATIONAL AND TECHNICAL EDUCATION ASSISTANCE TO THE STATES

                    PART A--ALLOTMENT AND ALLOCATION

SEC. 111. RESERVATIONS AND STATE ALLOTMENT.

  (a) Reservations and State Allotment.--
          [(1) Reservations.--From the sum appropriated under 
        section 8 for each fiscal year, the Secretary shall 
        reserve--
                  [(A) 0.2 percent to carry out section 115;
                  [(B) 1.50 percent to carry out section 116, 
                of which--
                          [(i) 1.25 percent of the sum shall be 
                        available to carry out section 116(b); 
                        and
                          [(ii) 0.25 percent of the sum shall 
                        be available to carry out section 
                        116(h); and
                  [(C) in the case of each of the fiscal years 
                2001 through 2003, 0.54 percent to carry out 
                section 503 of Public Law 105-220.]
          (1) Reservations.--From the sum appropriated under 
        section 8 for each fiscal year, the Secretary shall 
        reserve--
                  (A) 0.12 percent to carry out section 115;
                  (B) 1.50 percent to carry out section 116, of 
                which--
                          (i) 1.25 percent of the sum shall be 
                        available to carry out section 116(b); 
                        and
                          (ii) 0.25 percent of the sum shall be 
                        available to carry out section 116(h); 
                        and
                  (C) 0.54 percent to carry out section 114(d).

           *       *       *       *       *       *       *

          (3) Minimum allotment.--
                  (A) * * *
                  (B) Requirement.--No State, by reason of the 
                application of subparagraph (A), shall receive 
                for a fiscal year more than 150 percent of the 
                amount the State received under this subsection 
                for the preceding fiscal year [(or in the case 
                of fiscal year 1999 only, under section 101 of 
                the Carl D. Perkins Vocational and Applied 
                Technology Education Act, as such section was 
                in effect on the day before the date of 
                enactment of the Carl D. Perkins Vocational and 
                Applied Technology Education Amendments of 
                1998)] (or in the case of fiscal year 2005 
                only, under this section and under title II of 
                this Act, as such section and title were in 
                effect on the day before the date of enactment 
                of the Vocational and Technical Education for 
                the Future Act).
                  (C) Special rule.--
                          (i) In general.--Subject to paragraph 
                        (4), no State, by reason of the 
                        application of subparagraph (A), shall 
                        be allotted for a fiscal year more than 
                        the lesser of--
                                  (I) 150 percent of the amount 
                                that the State received in the 
                                preceding fiscal year [(or in 
                                the case of fiscal year 1999 
                                only, under section 101 of the 
                                Carl D. Perkins Vocational and 
                                Applied Technology Education 
                                Act, as such section was in 
                                effect on the day before the 
                                date of enactment of the Carl 
                                D. Perkins Vocational and 
                                Applied Technology Education 
                                Amendments of 1998)] (or in the 
                                case of fiscal year 2005 only, 
                                under this section and under 
                                title II of this Act, as such 
                                section and title were in 
                                effect on the day before the 
                                date of enactment of the 
                                Vocational and Technical 
                                Education for the Future Act); 
                                and
                                  (II) the amount calculated 
                                under clause (ii).
                          (ii) Amount.--The amount calculated 
                        under this clause shall be determined 
                        by multiplying--
                                  (I) the number of individuals 
                                in the State counted under 
                                paragraph (2) in the preceding 
                                fiscal year; by
                                  (II) 150 percent of the 
                                national average per pupil 
                                payment made with funds 
                                available under this section 
                                for that year [(or in the case 
                                of fiscal year 1999, only, 
                                under section 101 of the Carl 
                                D. Perkins Vocational and 
                                Applied Technology Education 
                                Act, as such section was in 
                                effect on the day before the 
                                date of enactment of the Carl 
                                D. Perkins Vocational and 
                                Applied Technology Education 
                                Amendments of 1998)] (or in the 
                                case of fiscal year 2005 only, 
                                under this section and under 
                                title II of this Act, as such 
                                section and title were in 
                                effect on the day before the 
                                date of enactment of the 
                                Vocational and Technical 
                                Education for the Future Act).
          (4) Hold harmless.--
                  [(A) In general.--No State shall receive an 
                allotment under this section for a fiscal year 
                that is less than the allotment the State 
                received under part A of title I of the Carl D. 
                Perkins Vocational and Applied Technology 
                Education Act (20 U.S.C. 2311 et seq.) (as such 
                part was in effect on the day before the date 
                of enactment of the Carl D. Perkins Vocational 
                and Applied Technology Education Amendments of 
                1998) for fiscal year 1998.]
                  (A) In general.--No State shall receive an 
                allotment under this section for a fiscal year 
                that is less than the allotment the State 
                received for fiscal year 2004 under this 
                section and under title II of this Act (as such 
                section and title were in effect on the day 
                before the date of enactment of the Vocational 
                and Technical Education for the Future Act).

           *       *       *       *       *       *       *


SEC. 112. WITHIN STATE ALLOCATION.

  [(a) In General.--From the amount allotted to each State 
under section 111 for a fiscal year, the State board 
(hereinafter referred to as the ``eligible agency'') shall make 
available--
          [(1) not less than 85 percent for distribution under 
        section 131 or 132, of which not more than 10 percent 
        of the 85 percent may be used in accordance with 
        subsection (c);
          [(2) not more than 10 percent to carry out State 
        leadership activities described in section 124, of 
        which--
                  [(A) an amount equal to not more than 1 
                percent of the amount allotted to the State 
                under section 111 for the fiscal year shall be 
                available to serve individuals in State 
                institutions, such as State correctional 
                institutions and institutions that serve 
                individuals with disabilities; and
                  [(B) not less than $60,000 and not more than 
                $150,000 shall be available for services that 
                prepare individuals for nontraditional training 
                and employment; and
          [(3) an amount equal to not more than 5 percent, or 
        $250,000, whichever is greater, for administration of 
        the State plan, which may be used for the costs of--
                  [(A) developing the State plan;
                  [(B) reviewing the local plans;
                  [(C) monitoring and evaluating program 
                effectiveness;
                  [(D) assuring compliance with all applicable 
                Federal laws; and
                  [(E) providing technical assistance.]
  (a) Allocation Formula.--From the amount allotted to each 
State under section 111 for a fiscal year, the State board 
(hereinafter referred to as the ``eligible agency'') shall 
allocate such amount as follows:
          (1) Subject to paragraph (4), not less than 88 
        percent shall be made available for distribution under 
        section 131 or 132, of which the eligible agency shall 
        first make available for the activities described in 
        section 135(b)(3) not less than the amount allotted in 
        fiscal year 2004 to such eligible agency under title II 
        of this Act (as such title was in effect on the day 
        before the date of enactment of the Vocational and 
        Technical Education for the Future Act), reduced by the 
        percentage by which the amount allotted to the State 
        under section 111 for the fiscal year is less than the 
        amount allotted under such section to such State for 
        fiscal year 2004. Of the remainder of the 88 percent, 
        not more than 10 percent may be used in accordance with 
        subsection (c).
          (2) Subject to paragraph (4), not more than 10 
        percent shall be made available to carry out State 
        leadership activities described in section 124, of 
        which--
                  (A) an amount equal to not more than 1 
                percent of the amount allotted to the State 
                under section 111 for the fiscal year shall be 
                made available to serve individuals in State 
                institutions, such as State correctional 
                institutions and institutions that serve 
                individuals with disabilities; and
                  (B) not less than $60,000 and not more than 
                $150,000 shall be available for services that 
                prepare individuals for nontraditional fields.
          (3) An amount equal to not more than 2 percent, or 
        $250,000, whichever is greater, shall be made available 
        for administration of the State plan, which may be used 
        for the costs of--
                  (A) developing the State plan;
                  (B) reviewing the local plan;
                  (C) monitoring and evaluating program 
                effectiveness;
                  (D) assuring compliance with all applicable 
                Federal laws; and
                  (E) providing technical assistance.
          (4) If the amount allocated for any fiscal year under 
        paragraph (2) shall be less than the amount allocated 
        under such paragraph for fiscal year 2004, additional 
        amounts may be made available from the amount allocated 
        under paragraph (1) for the purposes described in 
        paragraph (2). If such additional amounts are made 
        available under this paragraph, the percentage of the 
        total amount allotted under section 111 that is 
        allocated for the purposes described in paragraph (2) 
        shall not exceed the percentage of the total amount 
        allotted under section 111 for fiscal year 2004 that 
        was allocated under paragraph (2) for fiscal year 2004.

           *       *       *       *       *       *       *

  (c) Reserve.--
          (1) In general.--From amounts made available under 
        subsection (a)(1) to carry out this subsection, an 
        eligible agency may award grants to eligible recipients 
        for vocational and technical education activities 
        described in section 135 in--
                  (A) rural areas;
                  (B) areas with high percentages of vocational 
                and technical education students; and
                  (C) areas with high numbers of vocational and 
                technical students[; and].
                  [(D) communities negatively impacted by 
                changes resulting from the amendments made by 
                the Carl D. Perkins Vocational and Applied 
                Technology Education Amendments of 1998 to the 
                within State allocation under section 231 of 
                the Carl D. Perkins Vocational and Applied 
                Technology Education Act (as such section 231 
                was in effect on the day before the date of 
                enactment of the Carl D. Perkins Vocational and 
                Applied Technology Education Amendments of 
                1998).]
          (2) Special rule.--Each eligible agency awarding a 
        grant under this subsection shall use the grant funds 
        to serve at least 2 of the categories described in 
        subparagraphs (A) through [(D)] (C) of paragraph (1).

SEC. 113. ACCOUNTABILITY.

  (a) Purpose.--The purpose of this section is to [establish a 
State] support a State and local performance accountability 
system, comprised of the activities described in this section, 
to assess the effectiveness of the State and its eligible 
recipients in achieving statewide progress in vocational and 
technical education, and to optimize the return of investment 
of Federal funds in vocational and technical education 
activities.
  (b) State Performance Measures.--
          (1) * * *
          (2) Indicators of performance.--
                  (A) Core indicators of performance for 
                secondary students.--Each eligible agency shall 
                identify in the State plan core indicators of 
                performance of secondary students that are, to 
                the extent practicable, valid and reliable and 
                that include, at a minimum, measures of each of 
                the following:
                          (i) Student attainment of challenging 
                        [State established academic,] academic 
                        content and achievement standards, as 
                        established by the State under section 
                        1111(b)(1) of the Elementary and 
                        Secondary Education Act of 1965 (20 
                        U.S.C. 6311(b)(1)), and vocational and 
                        technical, skill proficiencies.
                          (ii) Student attainment of a 
                        secondary school diploma [or its 
                        recognized equivalent] or the General 
                        Educational Development credential 
                        (including recognized alternative 
                        standards for individuals with 
                        disabilities), a proficiency credential 
                        in conjunction with a secondary school 
                        diploma[, or a postsecondary degree or 
                        credential].
                          [(iii) Placement in, retention in, 
                        and completion of, postsecondary 
                        education or advanced training, 
                        placement in military service, or 
                        placement or retention in employment.]
                          (iii) Student graduation rates (as 
                        described in section 111(b)(2)(C)(vi) 
                        of the Elementary and Secondary 
                        Education Act of 1965 (20 U.S.C. 
                        6311(b)(2)(C)(vi))), placement in 
                        postsecondary education or advanced 
                        training, placement in military 
                        service, or placement in employment.
                          (iv) Student participation in and 
                        completion of vocational and technical 
                        education programs that lead to 
                        nontraditional [training and 
                        employment] fields.
                  (B) Core indicators of performance for 
                postsecondary students.--Each eligible agency 
                shall identify in the State plan core 
                indicators of performance of postsecondary 
                students that are, to the extent practicable, 
                valid and reliable, and that include, at a 
                minimum, measures of each of the following:
                          (i) Student attainment of challenging 
                        academic and vocational and technical 
                        skill proficiencies.
                          (ii) Student retention in 
                        postsecondary education, attainment of 
                        an associate degree or postsecondary 
                        credential, or transfer to a 
                        baccalaureate degree program.
                          (iii) Placement in military service 
                        or placement or retention in 
                        employment.
                          (iv) Student participation in and 
                        completion of vocational and technical 
                        education programs in nontraditional 
                        fields.
                  [(B)] (C) Additional indicators of 
                performance.--An eligible agency, with input 
                from eligible recipients, may identify in the 
                State plan additional indicators of performance 
                for vocational and technical education 
                activities authorized under [the] this title.
                  [(C)] (D) Existing indicators.--If a State 
                previously has developed State vocational and 
                technical education performance measures that 
                meet the requirements of this section, the 
                State may use such performance measures to 
                measure the progress of vocational and 
                technical education students.
                  [(D)] (E) State role.--Indicators of 
                performance described in this paragraph shall 
                be established solely by each eligible agency 
                with input from eligible recipients.
          [(3) Levels of performance.--]
          (3) State levels of performance.--
                  (A) State adjusted levels of performance for 
                core indicators of performance.--
                          (i) In general.--Each eligible 
                        agency, with input from eligible 
                        recipients, shall establish in the 
                        State plan submitted under section 122, 
                        levels of performance for each of the 
                        core indicators of performance 
                        described in [paragraph (2)(A)] 
                        subparagraphs (A) and (B) of paragraph 
                        (2) for vocational and technical 
                        education activities authorized under 
                        this title. The levels of performance 
                        established under this subparagraph 
                        shall, at a minimum--
                                  (I) be expressed in a 
                                percentage or numerical form, 
                                so as to be objective, 
                                quantifiable, and measurable; 
                                and
                                  (II) require the State [to 
                                continually make progress 
                                toward improving the 
                                performance] to make continuous 
                                and substantial improvement in 
                                the academic and vocational and 
                                technical achievement of 
                                vocational and technical 
                                education students.

           *       *       *       *       *       *       *

                          [(v) Agreement on state adjusted 
                        levels of performance for 3rd, 4th, and 
                        5th years.--Prior to the third program 
                        year covered by the State plan, the 
                        Secretary and each eligible agency 
                        shall reach agreement on the State 
                        adjusted levels of performance for each 
                        of the core indicators of performance 
                        for the third, fourth, and fifth 
                        program years covered by the State 
                        plan, taking into account the factors 
                        described in clause (vi). The State 
                        adjusted levels of performance agreed 
                        to under this clause shall be 
                        considered to be the State adjusted 
                        levels of performance for the State for 
                        such years and shall be incorporated 
                        into the State plan.]
                          (iv) Agreement on state adjusted 
                        levels of performance for subsequent 
                        years.--
                                  (I) 3rd and 4th program 
                                years.--Prior to the third 
                                program year covered by the 
                                State plan, the Secretary and 
                                each eligible agency shall 
                                reach agreement on the State 
                                adjusted levels of performance 
                                for each of the core indicators 
                                of performance for the third 
                                and fourth programs years 
                                covered by the State plan, 
                                taking into account the factors 
                                described in clause (vi).
                                  (II) 5th and 6th program 
                                years.--Prior to the fifth 
                                program year covered by the 
                                State plan, the Secretary and 
                                each eligible agency shall 
                                reach agreement on the State 
                                adjusted levels of performance 
                                for each of the core indicators 
                                of performance for the fifth 
                                and sixth programs years 
                                covered by the State plan, 
                                taking into account the factors 
                                described in clause (vi).
                                  (III) Agreements incorporated 
                                into state plan.--The State 
                                adjusted levels of performance 
                                agreed to under this clause 
                                shall be considered the State 
                                adjusted levels of performance 
                                for the State for such years 
                                and shall be incorporated into 
                                the State plan.

           *       *       *       *       *       *       *

                          (vi) Factors.--The agreement 
                        described in clause (iii) or (v) shall 
                        take into account--
                                  (I) * * *
                                  (II) the extent to which such 
                                levels of performance promote 
                                continuous and substantial 
                                improvement on the indicators 
                                of performance by such State.
                          (vii) Revisions.--If unanticipated 
                        circumstances arise in a State 
                        resulting in a significant change in 
                        the factors described in clause 
                        (vi)(II), the eligible agency may 
                        request that the State adjusted levels 
                        of performance agreed to under clause 
                        (iii) or [(vi)] (v) be revised. The 
                        Secretary shall issue objective 
                        criteria and methods for making such 
                        revisions.
          (4) Local levels of performance.--
                  (A) Local adjusted levels of performance for 
                core indicators of performance.--
                          (i) In general.--Each eligible 
                        recipient shall establish in the local 
                        plan submitted under section 134, 
                        levels of performance for each of the 
                        core indicators of performance 
                        described in paragraph (2)(A) and (B), 
                        as appropriate for the eligible 
                        recipient, for vocational and technical 
                        education activities authorized under 
                        this title. The levels of performance 
                        established under this subparagraph 
                        shall, at a minimum--
                                  (I) be expressed in a 
                                percentage or numerical form, 
                                so as to be objective, 
                                quantifiable, and measurable; 
                                and
                                  (II) require the eligible 
                                recipient to make continuous 
                                and substantial improvement in 
                                the academic and vocational and 
                                technical achievement of 
                                vocational and technical 
                                education students.
                          (ii) Identification in the local 
                        plan.--Each eligible recipient shall 
                        identify, in the local plan submitted 
                        under section 134, levels of 
                        performance for each of the core 
                        indicators of performance for the first 
                        2 program years covered by the local 
                        plan.
                          (iii) Agreement on local adjusted 
                        levels of performance for first 2 
                        years.--The eligible agency and each 
                        eligible recipient shall reach 
                        agreement on the levels of performance 
                        for each of the core indicators of 
                        performance, for the first 2 program 
                        years covered by the local plan, taking 
                        into account the levels identified in 
                        the local plan under clause (ii) and 
                        the factors described in clause (v). 
                        The levels of performance agreed to 
                        under this clause shall be considered 
                        to be the local adjusted level of 
                        performance for the eligible recipient 
                        for such years and shall be 
                        incorporated into the local plan prior 
                        to the approval of such plan.
                          (iv) Agreement on local adjusted 
                        levels of performance for subsequent 
                        years.--
                                  (I) 3rd and 4th program 
                                years.--Prior to the third 
                                program year covered by the 
                                local plan, the eligible agency 
                                and each eligible recipient 
                                shall reach agreement on the 
                                local adjusted levels of 
                                performance for each of the 
                                core indicators of performance 
                                for the third and fourth 
                                program years covered by the 
                                local plan, taking into account 
                                the factors described in clause 
                                (v).
                                  (II) 5th and 6th program 
                                years.--Prior to the fifth 
                                program year covered by the 
                                local plan, the eligible agency 
                                and each eligible recipient 
                                shall reach agreement on the 
                                local adjusted levels of 
                                performance for each of the 
                                core indicators of performance 
                                for the fifth and sixth program 
                                years covered by the local 
                                plan, taking into account the 
                                factors described in clause 
                                (v).
                                  (III) Agreements incorporated 
                                into local plan.--The local 
                                adjusted levels of performance 
                                agreed to under this clause 
                                shall be considered to be the 
                                local adjusted levels of 
                                performance for the eligible 
                                recipient for such years and 
                                shall be incorporated into the 
                                local plan.
                          (v) Factors.--The agreement described 
                        in clause (iii) or (iv) shall take into 
                        account--
                                  (I) how the levels of 
                                performance involved compare 
                                with the local adjusted levels 
                                of performance established for 
                                other eligible recipients 
                                taking into account factors 
                                including the characteristics 
                                of participants when the 
                                participants entered the 
                                program and the services or 
                                instruction to be provided; and
                                  (II) the extent to which such 
                                levels of performance promote 
                                continuous and substantial 
                                improvement on the indicators 
                                of performance by such eligible 
                                recipient.
                          (vi) Revisions.--If unanticipated 
                        circumstances arise with respect to an 
                        eligible recipient resulting in a 
                        significant change in the factors 
                        described in clause (v)(II), the 
                        eligible recipient may request that the 
                        local adjusted levels of performance 
                        agreed to under clause (iii) or (iv) be 
                        revised. The eligible agency shall 
                        issue objective criteria and methods 
                        for making such revisions.
                  (B) Levels of performance for additional 
                indicators.--Each eligible recipient may 
                identify in the local plan, local levels of 
                performance for any additional indicators of 
                performance. Such levels shall be considered to 
                be the local levels of performance for purposes 
                of this title.
                  (C) Local report.--
                          (i) Content of report.--Each eligible 
                        recipient that receives an allotment 
                        under section 111 shall annually 
                        prepare and submit to the eligible 
                        agency a report, regarding--
                                  (I) the progress of such 
                                recipient in achieving the 
                                local adjusted levels of 
                                performance on the core 
                                indicators of performance; and
                                  (II) in the case of an 
                                eligible recipient that 
                                receives funds described in 
                                section 112(a) for activities 
                                described in section 135(b)(3), 
                                the progress in achieving the 
                                local adjusted levels of 
                                performance on the core 
                                indicators with respect to tech 
                                prep program participants.
                          (ii) Disaggregation of data.--Each 
                        eligible recipient shall--
                                  (I) disaggregate data for 
                                each of the indicators of 
                                performance under section 
                                113(b)(2) for the categories of 
                                students enumerated under 
                                section 1111(b)(2)(C)(v)(II) of 
                                the Elementary and Secondary 
                                Education Act of 1965 that are 
                                served under this Act; and
                                  (II) identify and quantify 
                                any disparities or gaps in 
                                performance between any such 
                                category of students and the 
                                performance of all students 
                                served by the eligible 
                                recipient under the Act.
                          (iii) Rules for reporting of data.--
                        The disaggregation of data under clause 
                        (ii) shall be required except in a case 
                        in which the number of students in a 
                        category is insufficient to yield 
                        statistically reliable information or 
                        in which the results would reveal 
                        personally identifiable information 
                        about an individual student.
                          (iv) Availability.--The report 
                        described in clause (i) shall be made 
                        available to the public through a 
                        variety of formats, including 
                        electronically or through the Internet.
  (c) Report.--
          (1) * * *
          (2) Disaggregation of data.--Each eligible agency 
        under this subsection shall--
                  (A) disaggregate data for each of the 
                indicators of performance under section 
                113(b)(2) for the categories of students 
                enumerated under section 1111(b)(2)(C)(v)(II) 
                of the Elementary and Secondary Education Act 
                of 1965 that are served under this Act; and
                  (B) identify and quantify any disparities or 
                gaps in performance between any such category 
                of students and the performance of all students 
                served by the eligible agency under the Act.
          (3) Rules for reporting of data.--The disaggregation 
        of data under paragraph (2) shall be required except in 
        a case in which the number of students in a category is 
        insufficient to yield statistically reliable 
        information or in which the results would reveal 
        personally identifiable information about an individual 
        student.
          [(2)] (4) Special populations.--The report submitted 
        by the eligible agency in accordance with paragraph (1) 
        shall include a quantifiable description of the 
        progress [special populations] each of the populations 
        described in section 3(25) and the populations 
        described in section 1111(h)(1)(C)(i) of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 
        6311(h)(1)(C)(i)) participating in vocational and 
        technical education programs [have] has made in meeting 
        the State adjusted levels of performance established by 
        the eligible agency.
          [(3)] (5) Information dissemination.--The Secretary--
                  (A) * * *

           *       *       *       *       *       *       *


SEC. 114. NATIONAL ACTIVITIES.

  (a) Program Performance Information.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Assessments.--As a regular part of its 
        assessments, the National Center for Education 
        Statistics shall collect and report information on 
        vocational and technical education for a nationally 
        representative sample of students. Such assessment may 
        include international comparisons in the aggregate.

           *       *       *       *       *       *       *

  (c) Research, Development, Dissemination, Evaluation and 
Assessment.--
          (1) * * *
          [(2) Independent advisory panel.--The Secretary shall 
        appoint an independent advisory panel, consisting of 
        vocational and technical education administrators, 
        educators, researchers, and representatives of labor 
        organizations, businesses, parents, guidance and 
        counseling professionals, and other relevant groups, to 
        advise the Secretary on the implementation of the 
        assessment described in paragraph (3), including the 
        issues to be addressed, the methodology of the studies 
        involved, and the findings and recommendations 
        resulting from the assessment. The panel shall submit 
        to the Committee on Education and the Workforce of the 
        House of Representatives, the Committee on Labor and 
        Human Resources of the Senate, and the Secretary an 
        independent analysis of the findings and 
        recommendations resulting from the assessment described 
        in paragraph (3). The Federal Advisory Committee Act (5 
        U.S.C. App.) shall not apply to the panel established 
        under this subsection.]
          (2) Independent advisory panel.--The Secretary shall 
        appoint an independent advisory panel, consisting of 
        academic and vocational and technical education 
        educators, administrators, experts in evaluation, 
        research, and assessment, representatives of labor 
        organizations, businesses, parents, guidance and 
        counseling professionals, and other individuals with 
        relevant expertise, to advise the Secretary on the 
        implementation of the assessment described in paragraph 
        (3), including the issues to be addressed and the 
        methodology of the studies involved to ensure the 
        assessment adheres to the highest standards of quality. 
        The advisory panel shall transmit to the Secretary and 
        to Congress an independent analysis of the findings and 
        recommendations resulting from such assessment. The 
        Federal Advisory Committee Act (5 U.S.C. App.) shall 
        not apply to the panel established under this 
        subsection.
          (3) Evaluation and assessment.--
                  (A) In general.--From amounts made available 
                under paragraph (8), the Secretary shall 
                provide for the conduct of an independent 
                evaluation and assessment of the implementation 
                of the vocational and technical education 
                programs under this Act through studies and 
                analyses conducted independently through 
                grants, contracts, and cooperative agreements 
                that are awarded on a competitive basis.
                  (B) Contents.--The assessment required under 
                paragraph (1) shall include but shall not be 
                limited to descriptions and evaluations of--
                          [(i) the extent to which State, 
                        local, and tribal entities have 
                        developed, implemented, or improved 
                        State and local vocational and 
                        technical education programs and the 
                        effect of programs assisted under this 
                        Act on that development, 
                        implementation, or improvement, 
                        including the capacity of State, 
                        tribal, and local vocational and 
                        technical education systems to achieve 
                        the purpose of this Act;
                          [(ii) the extent to which 
                        expenditures at the Federal, State, 
                        tribal, and local levels address 
                        program improvement in vocational and 
                        technical education, including the 
                        impact of Federal allocation 
                        requirements (such as within-State 
                        allocation formulas) on the delivery of 
                        services;]
                          [(iii)] (i) the preparation and 
                        qualifications of teachers of 
                        vocational and technical[, and 
                        academic, curricula in vocational and 
                        technical education programs,] 
                        education (such as meeting State 
                        established teacher certification or 
                        licensing requirements) as well as 
                        shortages of such teachers;
                          [(iv) participation of students in 
                        vocational and technical education 
                        programs;]
                          [(v)] (ii) academic [and employment 
                        outcomes of vocational and technical 
                        education, including analyses of] and 
                        vocational and technical education 
                        achievement and employment outcomes of 
                        vocational and technical education 
                        students, including analyses of--
                                  (I) the number of vocational 
                                and technical education 
                                students [and tech-prep 
                                students] and students 
                                participating in the activities 
                                described in section 135(b)(3) 
                                who meet State adjusted levels 
                                of performance;
                                  (II) the extent and success 
                                of integration of [academic, 
                                and vocational and technical, 
                                education] rigorous and 
                                challenging academic and 
                                vocational and technical 
                                education, including a review 
                                of the effect of integrated 
                                rigorous and challenging 
                                academic and vocational and 
                                technical education on the 
                                achievement of students for 
                                students participating in 
                                vocational and technical 
                                education programs; and
                                  (III) the extent to which 
                                vocational and technical 
                                education programs prepare 
                                students for subsequent 
                                employment in high-wage, high-
                                skill careers, particularly 
                                those in which math and science 
                                skills are critical, or 
                                participation in postsecondary 
                                education;
                          [(vi)] (iii) employer involvement in, 
                        and satisfaction with, vocational and 
                        technical education programs;
                          [(vii) the use and impact of 
                        educational technology and distance 
                        learning with respect to vocational and 
                        technical education and tech-prep 
                        programs; and]
                          [(viii)] (iv) the effect of State 
                        adjusted levels of performance and 
                        State levels of performance on the 
                        delivery of vocational and technical 
                        education services.
                  (C) Reports.--
                          (i) In general.--The Secretary shall 
                        submit to [the Committee on Education 
                        and the Workforce of the House of 
                        Representatives and the Committee on 
                        Labor and Human Resources of the 
                        Senate] Congress--
                                  (I) an interim report 
                                regarding the assessment on or 
                                before January 1, [2002] 2008; 
                                and
                                  (II) a final report, 
                                summarizing all studies and 
                                analyses that relate to the 
                                assessment and that are 
                                completed after the assessment, 
                                on or before July 1, [2002] 
                                2008.
                          (ii) Prohibition.--Notwithstanding 
                        any other provision of law, the reports 
                        required by this subsection shall not 
                        be subject to any review outside the 
                        Department of Education before their 
                        transmittal to [the Committee on 
                        Education and the Workforce of the 
                        House of Representatives, the Committee 
                        on Labor and Human Resources of the 
                        Senate,] Congress and the Secretary, 
                        but the President, the Secretary, and 
                        the independent advisory panel 
                        established under paragraph (2) may 
                        make such additional recommendations to 
                        Congress with respect to the assessment 
                        as the President, the Secretary, or the 
                        panel determine to be appropriate.

           *       *       *       *       *       *       *

          (5) Research.--
                  (A) In general.--The Secretary, after 
                consulting with the States, shall award grants, 
                contracts, or cooperative agreements on a 
                competitive basis to an institution of higher 
                education, a public or private nonprofit 
                organization or agency, or a consortium of such 
                institutions, organizations, or agencies to 
                establish a national research center or 
                centers--
                          (i) [to carry out research] to carry 
                        out scientifically based research for 
                        the purpose of developing, improving, 
                        and identifying the most successful 
                        methods for successfully addressing the 
                        education, employment, and training 
                        needs of participants in vocational and 
                        technical education programs, including 
                        scientifically based research and 
                        evaluation in such activities as--
                                  (I) * * *

           *       *       *       *       *       *       *

                          (ii) [to carry out research] to carry 
                        out scientifically based research to 
                        increase the effectiveness and improve 
                        the implementation of vocational and 
                        technical education programs that are 
                        integrated with rigorous and 
                        challenging academic education, 
                        including conducting research and 
                        development, and studies, providing 
                        longitudinal information or formative 
                        evaluation with respect to vocational 
                        and technical education programs and 
                        student achievement;
                          (iii) [to carry out research] to 
                        carry out scientifically based research 
                        that can be used to improve teacher 
                        training and learning in the vocational 
                        and technical education classroom, 
                        including--
                                  (I) effective inservice and 
                                preservice teacher education 
                                that assists vocational and 
                                technical education systems and 
                                the integration of those 
                                systems with the academic 
                                education system; and

           *       *       *       *       *       *       *

          [(6) Demonstrations and dissemination.--
                  [(A) Demonstration program.--The]
          (6) Demonstrations and dissemination.--The Secretary 
        is authorized to carry out demonstration vocational and 
        technical education programs, to replicate model 
        vocational and technical education programs, to 
        disseminate best practices information, and to provide 
        technical assistance upon request of a State, for the 
        purposes of developing, improving, and identifying the 
        most successful methods and techniques for providing 
        vocational and technical education programs assisted 
        under this Act.
                  [(B) Demonstration partnership.--
                          [(i) In general.--The Secretary shall 
                        carry out a demonstration partnership 
                        project involving a 4-year, accredited 
                        postsecondary institution, in 
                        cooperation with local public education 
                        organizations, volunteer groups, and 
                        private sector business participants to 
                        provide program support, and facilities 
                        for education, training, tutoring, 
                        counseling, employment preparation, 
                        specific skills training in emerging 
                        and established professions, and for 
                        retraining of military medical 
                        personnel, individuals displaced by 
                        corporate or military restructuring, 
                        migrant workers, as well as other 
                        individuals who otherwise do not have 
                        access to such services, through 
                        multisite, multistate distance learning 
                        technologies.
                          [(ii) Program.--Such program may be 
                        carried out directly or through grants, 
                        contracts, cooperative agreements, or 
                        through the national center or centers 
                        established under paragraph (5).]

           *       *       *       *       *       *       *

          (8) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out [this 
        section such sums as may be necessary for fiscal year 
        1999 and each of the 4 succeeding fiscal years.] 
        subsections (a), (b), and (c) of this section, such 
        sums as may be necessary for each of fiscal years 2005 
        through 2010.
  (d) Incentive Grants for Eligible Agencies.--
          (1) In general.--From funds reserved under section 
        111(a)(1)(C), the Secretary may award grants to 
        eligible agencies for exemplary performance in carrying 
        out programs under this Act. Such awards shall be based 
        on an eligible agency exceeding State adjusted levels 
        of performance established under section 113(b) and 
        showing sustained or significant improvement.
          (2) Special consideration.--In awarding these grants, 
        the Secretary may consider--
                  (A) an eligible agency's success in 
                effectively developing connections between 
                secondary education and postsecondary education 
                and training;
                  (B) an eligible agency's integration of 
                rigorous and challenging academic and technical 
                coursework; and
                  (C) an eligible agency's progress in having 
                special populations participating in vocational 
                and technical education meet State adjusted 
                levels of performance.
          (3) Use of funds.--The funds awarded to an eligible 
        agency under this subsection may be used to carry out 
        any activities authorized under section 124, including 
        demonstrations of innovative programs.

[SEC. 115. ASSISTANCE FOR THE OUTLYING AREAS.

  [(a) Outlying Areas.--From funds reserved pursuant to section 
111(a)(1)(A), the Secretary shall--
          [(1) make a grant in the amount of $500,000 to Guam; 
        and
          [(2) make a grant in the amount of $190,000 to each 
        of American Samoa and the Commonwealth of the Northern 
        Mariana Islands.
  [(b) Remainder.--Subject to the provisions of subsection (a), 
the Secretary shall make a grant of the remainder of funds 
reserved pursuant to section 111(a)(1)(A) to the Pacific Region 
Educational Laboratory in Honolulu, Hawaii, to make grants for 
vocational and technical education and training in Guam, 
American Samoa, the Commonwealth of the Northern Mariana 
Islands, the Republic of the Marshall Islands, the Federated 
States of Micronesia, and the Republic of Palau, for the 
purpose of providing direct vocational and technical 
educational services, including--
          [(1) teacher and counselor training and retraining;
          [(2) curriculum development; and
          [(3) the improvement of vocational and technical 
        education and training programs in secondary schools 
        and institutions of higher education, or improving 
        cooperative education programs involving both secondary 
        schools and institutions of higher education.
  [(c) Limitation.--The Pacific Region Educational Laboratory 
may use not more than 5 percent of the funds received under 
subsection (b) for administrative costs.
  [(d) Restriction.--Notwithstanding any other provision of 
law, the Republic of the Marshall Islands, the Federated States 
of Micronesia, and the Republic of Palau shall not receive any 
funds under this title for any fiscal year that begins after 
September 30, 2001.]

SEC. 115. ASSISTANCE FOR THE OUTLYING AREAS.

  (a) Outlying Areas.--From funds reserved pursuant to section 
111(a)(1)(A), the Secretary shall--
          (1) make a grant in the amount of $660,000 to Guam;
          (2) make a grant in the amount of $350,000 to each of 
        American Samoa and the Commonwealth of the Northern 
        Mariana Islands; and
          (3) make a grant in the amount of $160,000 to the 
        Republic of Palau.
  (b) Remainder.--Subject to the provisions of subsection (a), 
the Secretary shall make a grant of the remainder of funds 
reserved pursuant to section 111(a)(1)(A), in equal proportion, 
to each of Guam, American Samoa, and the Commonwealth of the 
Northern Mariana Islands, for the purpose of providing direct 
vocational and technical educational services, including--
          (1) teacher and counselor training and retraining;
          (2) curriculum development; and
          (3) the improvement of vocational and technical 
        education and training programs in secondary schools 
        and institutions of higher education, or improving 
        cooperative education programs involving both secondary 
        schools and institutions of higher education.
  (c) Restriction.--The Republic of Palau shall cease to be 
eligible to receive funding under this section upon entering 
into an agreement for extension of United States educational 
assistance under the Compact of Free Association after the date 
of enactment of the Vocational and Technical Education for the 
Future Act.

SEC. 116. NATIVE AMERICAN PROGRAM.

  (a) Definitions.--In this section:
          (1) * * *

           *       *       *       *       *       *       *

          (5) Native hawaiian organization.--The term ``Native 
        Hawaiian organization'' has the meaning given the term 
        in section 7207 of the Native Hawaiian Education Act.
  (b) Program Authorized.--
          (1) Authority.--From funds reserved under section 
        111(a)(1)(B)(i), the Secretary shall make grants to and 
        enter into contracts with Indian tribes, tribal 
        organizations, and Alaska Native entities to carry out 
        the authorized programs described in [subsection (d)] 
        subsection (c), except that such grants or contracts 
        shall not be awarded to secondary school programs in 
        Bureau funded schools.
          (2) Indian tribes and tribal organizations.--The 
        grants or contracts described in this section [(other 
        than in subsection (i))] that are awarded to any Indian 
        tribe or tribal organization shall be subject to the 
        terms and conditions of section 102 of the Indian Self-
        Determination Act (25 U.S.C. 450f ) and shall be 
        conducted in accordance with the provisions of sections 
        4, 5, and 6 of the Act of April 16, 1934, which are 
        relevant to the programs administered under this 
        subsection.

           *       *       *       *       *       *       *


SEC. 117. TRIBALLY CONTROLLED POSTSECONDARY VOCATIONAL AND TECHNICAL 
                    INSTITUTIONS.

  (a) * * *
  [(b) Use of Grants.--Amounts made available pursuant to this 
section shall be used for institutional support of vocational 
and technical education programs.]
  (b) Uses of Grants.--Amounts made available under this 
section shall be used for vocational and technical education 
programs for Indian students and for instructional support 
costs of the grant, including the expenses described in 
subsection (e).
  (c) Amount of Grants.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Indirect costs.--Notwithstanding any other 
        provision of law or regulation, the Secretary shall not 
        require the use of a restricted indirect cost rate for 
        grants issued under this section.

           *       *       *       *       *       *       *

  [(g) Needs Estimate and Report on Facilities and Facilities 
Improvement.--
          [(1) Needs estimate.--The Secretary shall, based on 
        the most accurate data available from the institutions 
        and Indian tribes whose Indian students are served 
        under this section, and in consideration of employment 
        needs, economic development needs, population training 
        needs, and facilities needs, prepare an actual budget 
        needs estimate for each institution eligible under this 
        section for each subsequent program year, and submit 
        such budget needs estimate to Congress in such a timely 
        manner as will enable the appropriate committees of 
        Congress to consider such needs data for purposes of 
        the uninterrupted flow of adequate appropriations to 
        such institutions. Such data shall take into account 
        the purposes and requirements of part A of title IV of 
        the Social Security Act.
          [(2) Study of training and housing needs.--
                  [(A) In general.--The Secretary shall conduct 
                a detailed study of the training, housing, and 
                immediate facilities needs of each institution 
                eligible under this section. The study shall 
                include an examination of--
                          [(i) training equipment needs;
                          [(ii) housing needs of families whose 
                        heads of households are students and 
                        whose dependents have no alternate 
                        source of support while such heads of 
                        households are students; and
                          [(iii) immediate facilities needs.
                  [(B) Report.--The Secretary shall report to 
                Congress not later than July 1, 2000, on the 
                results of the study required by subparagraph 
                (A).
                  [(C) Contents.--The report required by 
                subparagraph (B) shall include the number, 
                type, and cost of meeting the needs described 
                in subparagraph (A), and rank each institution 
                by relative need.
                  [(D) Priority.--In conducting the study 
                required by subparagraph (A), the Secretary 
                shall give priority to institutions that are 
                receiving assistance under this section.
          [(3) Long-term study of facilities.--
                  [(A) In general.--The Secretary shall provide 
                for the conduct of a long-term study of the 
                facilities of each institution eligible for 
                assistance under this section.
                  [(B) Contents.--The study required by 
                subparagraph (A) shall include a 5-year 
                projection of training facilities, equipment, 
                and housing needs and shall consider such 
                factors as projected service population, 
                employment, and economic development 
                forecasting, based on the most current and 
                accurate data available from the institutions 
                and Indian tribes affected.
                  [(C) Submission.--The Secretary shall submit 
                to Congress a detailed report on the results of 
                such study not later than the end of the 18-
                month period beginning on the date of enactment 
                of this Act.]
  [(h)] (g) Definitions.--In this section:
          (1) Indian.--The terms ``Indian'' and ``Indian 
        tribe'' have the meanings given the terms in section 2 
        of the Tribally Controlled College or University 
        Assistance Act of 1978.
          (2) Indian student count.--The term ``Indian student 
        count'' means a number equal to the total number of 
        Indian students enrolled in each tribally controlled 
        postsecondary vocational and technical institution, 
        determined as follows:
                  (A) Registrations.--The registrations of 
                Indian students as in effect on October 1 of 
                each year.
                  (B) Summer term.--Credits or clock hours 
                toward a certificate earned in classes offered 
                during a summer term shall be counted toward 
                the computation of the Indian student count in 
                the succeeding fall term.
                  (C) Admission criteria.--Credits or clock 
                hours toward a certificate earned in classes 
                during a summer term shall be counted toward 
                the computation of the Indian student count if 
                the institution at which the student is in 
                attendance has established criteria for the 
                admission of such student on the basis of the 
                student's ability to benefit from the education 
                or training offered. The institution shall be 
                presumed to have established such criteria if 
                the admission procedures for such studies 
                include counseling or testing that measures the 
                student's aptitude to successfully complete the 
                course in which the student has enrolled. No 
                credit earned by such student for purposes of 
                obtaining a secondary school degree or its 
                recognized equivalent shall be counted toward 
                the computation of the Indian student count.
                  (D) Determination of hours.--Indian students 
                earning credits in any continuing education 
                program of a tribally controlled postsecondary 
                vocational and technical institution shall be 
                included in determining the sum of all credit 
                or clock hours.
                  (E) Continuing education.--Credits or clock 
                hours earned in a continuing education program 
                shall be converted to the basis that is in 
                accordance with the institution's system for 
                providing credit for participation in such 
                programs.
  [(i)] (h) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section 
[$4,000,000 for fiscal year 1999 and] such sums as may be 
necessary for each of [the 4 succeeding fiscal years] fiscal 
years 2005 through 2010.

SEC. 118. OCCUPATIONAL AND EMPLOYMENT INFORMATION.

  (a) * * *
  [(b) State Level Activities.--In order for a State to receive 
a grant under this section, the eligible agency and the 
Governor of the State shall jointly designate an entity in the 
State--
          [(1) to provide support for a career guidance and 
        academic counseling program designed to promote 
        improved career and education decisionmaking by 
        individuals (especially in areas of career information 
        delivery and use);
          [(2) to make available to students, parents, 
        teachers, administrators, and counselors, and to 
        improve accessibility with respect to, information and 
        planning resources that relate educational preparation 
        to career goals and expectations;
          [(3) to equip teachers, administrators, and 
        counselors with the knowledge and skills needed to 
        assist students and parents with career exploration, 
        educational opportunities, and education financing.
          [(4) to assist appropriate State entities in 
        tailoring career-related educational resources and 
        training for use by such entities;
          [(5) to improve coordination and communication among 
        administrators and planners of programs authorized by 
        this Act and by section 15 of the Wagner-Peyser Act at 
        the Federal, State, and local levels to ensure 
        nonduplication of efforts and the appropriate use of 
        shared information and data; and
          [(6) to provide ongoing means for customers, such as 
        students and parents, to provide comments and feedback 
        on products and services and to update resources, as 
        appropriate, to better meet customer requirements.]
  (b) State Level Activities.--
          (1) Designated entity.--In order for a State to 
        receive a grant under this section, the eligible agency 
        and the Governor of the State shall jointly designate 
        an entity in the State responsible for conducting the 
        activities in this subsection.
          (2) Application.--The jointly designated agency shall 
        submit an application to the Secretary at the same time 
        the State submits its state plan under section 122. The 
        application shall be in such a manner and be 
        accompanied by such information as the Secretary may 
        reasonably require. At a minimum, the application shall 
        describe how the jointly designated agency will assist 
        the eligible agency in meeting its adjusted levels of 
        performance under section 113(b).
          (3) Activities.--The jointly designated agency shall 
        conduct activities--
                  (A) to provide support for a career guidance 
                and academic counseling programs designed to 
                promote improved career and education decision 
                making by students (and parents, as 
                appropriate) regarding education and training 
                options and preparations for high skill, high 
                wage occupations;
                  (B) to make available to students, parents, 
                teachers, administrators, and counselors, and 
                to improve accessibility with respect to, 
                information and planning resources that relate 
                academic and vocational and technical 
                educational preparation to career goals and 
                expectations;
                  (C) to equip teachers, administrators, and 
                counselors with the knowledge, skills, and 
                occupational information needed to assist 
                students and parents with educational and other 
                postsecondary opportunities and education 
                financing;
                  (D) to assist appropriate State entities in 
                tailoring resources and training for use by 
                such entities;
                  (E) to improve coordination and communication 
                among administrators and planners of programs 
                authorized by this Act and by section 15 of the 
                Wagner-Peyser Act (29 U.S.C. 49l-2) at the 
                Federal, State, and local levels to ensure 
                nonduplication of efforts and the appropriate 
                use of shared information and data; and
                  (F) to provide ongoing means for customers, 
                such as students and parents, to provide 
                comments and feedback on products and services 
                and to update resources, as appropriate, to 
                better meet customer requirements.

           *       *       *       *       *       *       *

  (e) Report.--The Secretary, in consultation with appropriate 
Federal agencies, shall prepare and submit to the appropriate 
committees of Congress, an annual report that includes--
          (1) [an identification] a description of activities 
        assisted under this section during the prior program 
        year;
  (f ) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for each of the fiscal years [1999 through 2003] 
2005 through 2010.

                        PART B--STATE PROVISIONS

[SEC. 121. STATE ADMINISTRATION.

  [(a) Eligible Agency Responsibilities.--
          [(1) In general.--The responsibilities of an eligible 
        agency under this title shall include--
                  [(A) coordination of the development, 
                submission, and implementation of the State 
                plan, and the evaluation of the program, 
                services, and activities assisted under this 
                title, including preparation for nontraditional 
                training and employment;
                  [(B) consultation with the Governor and 
                appropriate agencies, groups, and individuals 
                including parents, students, teachers, 
                representatives of businesses, labor 
                organizations, eligible recipients, State and 
                local officials, and local program 
                administrators, involved in the planning, 
                administration, evaluation, and coordination of 
                programs funded under this title;
                  [(C) convening and meeting as an eligible 
                agency (consistent with State law and procedure 
                for the conduct of such meetings) at such time 
                as the eligible agency determines necessary to 
                carry out the eligible agency's 
                responsibilities under this title, but not less 
                than four times annually; and
                  [(D) the adoption of such procedures as the 
                eligible agency considers necessary to--
                          [(i) implement State level 
                        coordination with the activities 
                        undertaken by the State boards under 
                        section 111 of Public Law 105-220; and
                          [(ii) make available to the service 
                        delivery system under section 121 of 
                        Public Law 105-220 within the State a 
                        listing of all school dropout, 
                        postsecondary, and adult programs 
                        assisted under this title.
          [(2) Exception.--Except with respect to the 
        responsibilities set forth in paragraph (1), the 
        eligible agency may delegate any of the other 
        responsibilities of the eligible agency that involve 
        the administration, operation, supervision of 
        activities assisted under this title, in whole or in 
        part, to one or more appropriate State agencies.]

SEC. 121. STATE ADMINISTRATION.

  (a) Eligible Agency Responsibilities.--The responsibilities 
of an eligible agency under this title shall include--
          (1) coordination of the development, submission, and 
        implementation of the State plan, and the evaluation of 
        the program, services, and activities assisted under 
        this title, including preparation for nontraditional 
        fields;
          (2) consultation with the Governor and appropriate 
        agencies, groups, and individuals including parents, 
        students, teachers, representatives of businesses, 
        labor organizations, eligible recipients, State and 
        local officials, and local program administrators, 
        involved in the planning, administration, evaluation, 
        and coordination of programs funded under this title;
          (3) convening and meeting as an eligible agency 
        (consistent with State law and procedure for the 
        conduct of such meetings) at such time as the eligible 
        agency determines necessary to carry out the eligible 
        agency's responsibilities under this title, but not 
        less than four times annually; and
          (4) the adoption of such procedures as the eligible 
        agency considers necessary to--
                  (A) implement State level coordination with 
                the activities undertaken by the State boards 
                under section 111 of Public Law 105-220; and
                  (B) make available to the service delivery 
                system under section 121 of Public Law 105-220 
                within the State a listing of all school 
                dropout, postsecondary, and adult programs 
                assisted under this title.
  (b) Exception.--Except with respect to the responsibilities 
set forth in subsection (a), the eligible agency may delegate 
any of the other responsibilities of the eligible agency that 
involve the administration, operation, supervision of 
activities assisted under this title, in whole or in part, to 
one or more appropriate State agencies.

           *       *       *       *       *       *       *


SEC. 122. STATE PLAN.

  (a) State Plan.--
          (1) In general.--Each eligible agency desiring 
        assistance under this title for any fiscal year shall 
        prepare and submit to the Secretary a State plan for a 
        [5-year] 6-year period, together with such annual 
        revisions as the eligible agency determines to be 
        necessary.
          (2) Revisions.--Each eligible agency--
                  (A) * * *
                  (B) shall, after the second year of the [5 
                year State plan] 6-year period, conduct a 
                review of activities assisted under this title 
                and submit any revisions of the State plan that 
                the eligible agency determines necessary to the 
                Secretary.
          (3) Hearing process.--The eligible agency shall 
        conduct public hearings in the State, after appropriate 
        and sufficient notice, for the purpose of affording all 
        segments of the public and interested organizations and 
        groups [(including employers, labor organizations, and 
        parents)] (including charter school authorizers and 
        organizers, employers, labor organizations, parents, 
        students, and community organizations), an opportunity 
        to present their views and make recommendations 
        regarding the State plan. A summary of such 
        recommendations and the eligible agency's response to 
        such recommendations shall be included in the State 
        plan.
  (b) Plan Development.--
          (1) In general.--The eligible agency shall develop 
        the State plan in consultation with [teachers, eligible 
        recipients, parents, students, interested community 
        members] academic and vocational and technical 
        education teachers, eligible recipients, charter school 
        authorizers and organizers, parents, students, 
        interested community members (including parent and 
        community organizations), institutions of higher 
        education, representatives of special populations, 
        representatives of business and industry, and 
        representatives of labor organizations in the State, 
        and shall consult the Governor of the State with 
        respect to such development.

           *       *       *       *       *       *       *

  (c) Plan Contents.--The State plan shall include information 
that--
          (1) describes the vocational and technical education 
        activities to be assisted that are designed to meet or 
        exceed the State adjusted levels of performance, 
        including a description of--
                  (A) the development of model sequences of 
                courses for vocational and technical content 
                areas that--
                          (i) incorporate both secondary and 
                        postsecondary education elements;
                          (ii) include rigorous and challenging 
                        academic content and vocational and 
                        technical content in a coordinated, 
                        nonduplicative progression of courses;
                          (iii) lead to a postsecondary 1-year 
                        certificate, associate or baccalaureate 
                        degree, or a proficiency credential in 
                        conjunction with a secondary school 
                        diploma; and
                          (iv) may be adopted by local 
                        educational agencies and postsecondary 
                        institutions to be offered as an option 
                        to students (and their parents as 
                        appropriate), when choosing future 
                        coursework;
                  [(A)] (B) the secondary and postsecondary 
                vocational and technical education programs to 
                be carried out, including programs that will be 
                carried out by the eligible agency to develop, 
                improve, and expand access to quality, state-
                of-the-art technology in vocational and 
                technical education programs and how the 
                eligible agency will distribute information 
                identifying eligible recipients that offer 
                elements of the model sequences of courses;
                  [(B) the criteria that will be used by the 
                eligible agency in approving applications by 
                eligible recipients for funds under this 
                title;]
                  (C) the criteria that will be used by the 
                eligible agency to evaluate and approve 
                eligible recipients for funds under this title, 
                including criteria to assess the extent to 
                which the local plan will promote continuous 
                and substantial improvement in academic 
                achievement and technical skill attainment;
                  [(C)] (D) how such programs will prepare 
                vocational and technical education students, 
                both academically and technically, for 
                opportunities in postsecondary education or 
                entry into high skill, high wage jobs in 
                current and emerging occupations[; and], and 
                how participating students will be made aware 
                of such opportunities;
                  [(D)] (E) how funds will be used to improve 
                or develop new vocational and technical 
                education courses aligned with rigorous and 
                challenging academic content;
          [(2) describes how comprehensive professional 
        development (including initial teacher preparation) for 
        vocational and technical, academic, guidance, and 
        administrative personnel will be provided;]
                  (F) the process by which, for vocational and 
                technical education programs carried out under 
                this Act, the eligible agency will develop the 
                secondary or postsecondary elements of the 
                model sequences of courses identified by the 
                eligible agency, with an emphasis on rigorous 
                and challenging academic and technical content 
                that, through a progression of courses, leads 
                to a postsecondary 1-year certificate, 
                associate's or baccalaureate degree, or a 
                proficiency credential in conjunction with a 
                secondary school diploma;
                  (G) the role that any eligible recipients 
                successfully implementing the activities 
                described in section 135(b)(3) will play in 
                assisting other eligible recipients in 
                establishing agreements and plans for 
                coordinating the offering of model sequences of 
                courses to students at both the secondary and 
                postsecondary levels; and
                  (H) how funds will be used effectively to 
                link secondary and postsecondary academic and 
                vocational and technical education in a manner 
                that increases student academic and vocational 
                and technical achievement;
                  (I) how the eligible agency will report the 
                integration of rigorous and challenging 
                academics in vocational and technical education 
                programs in order to adequately evaluate the 
                quality of such integration;
          (2) describes how comprehensive professional 
        development (including initial teacher preparation and 
        activities that support recruitment) for vocational and 
        technical, academic, guidance, and administrative 
        personnel will be provided, especially professional 
        development that--
                  (A) promotes the integration of rigorous and 
                challenging academic and vocational and 
                technical education curriculum development;
                  (B) increases the percentage of teachers that 
                meet teacher certification or licensing 
                requirements;
                  (C) increases the academic and industry 
                knowledge of vocational and technical education 
                teachers; and
                  (D) encourages applied learning that 
                contributes to the academic and vocational and 
                technical knowledge of the student;
          (3) describes how the eligible agency will actively 
        involve parents, academic and vocational and technical 
        teachers, local businesses (including small- and 
        medium-sized businesses), and labor organizations in 
        the planning, development, implementation, and 
        evaluation of such vocational and technical education 
        programs;

           *       *       *       *       *       *       *

          (5) describes how the eligible agency will--
                  (A) improve the academic and technical skills 
                (especially as pertaining to math, science, and 
                technology) of students participating in 
                vocational and technical education programs, 
                including strengthening the academic, and 
                vocational and technical, components of 
                vocational and technical education programs 
                through the integration of academics with 
                vocational and technical education to ensure 
                learning in the [core academic, and vocational 
                and technical, subjects] core academic subjects 
                (as defined in section 9101(11) of the 
                Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7801(11))), and vocational and 
                technical subjects, and provide students with 
                strong experience in, and understanding of, all 
                aspects of an industry; and

           *       *       *       *       *       *       *

          (11) provides assurances that none of the funds 
        expended under this title will be used to acquire 
        equipment and technology (including computer software) 
        in any instance in which such acquisition results in a 
        direct financial benefit to any organization 
        representing the interests of the purchasing entity, 
        the employees of the purchasing entity, or any 
        affiliate of such an organization;
          (12) provides an assurance that when disposing of 
        equipment acquired with funds under this Act, any 
        personally identifiable information contained in such 
        equipment will be totally destroyed prior to or as part 
        of the disposition;
          [(12)] (13) describes how the eligible agency will 
        report data relating to students participating in 
        vocational and technical education in order to 
        adequately measure the progress of the students, 
        including special populations;
          [(13)] (14) describes how the eligible agency will 
        adequately address the needs of students in alternative 
        education programs, if appropriate;
          [(14)] (15) describes how the eligible agency will 
        provide local educational agencies, area vocational and 
        technical education schools, and eligible institutions 
        in the State with technical assistance;
          [(15)] (16) describes how vocational and technical 
        education relates to State and regional occupational 
        opportunities;
          [(16)] (17) describes the methods proposed for the 
        joint planning and coordination of programs carried out 
        under this title with other Federal education programs;
          [(17)] (18) describes how funds will be used to 
        promote preparation for nontraditional [training and 
        employment] fields;
          [(18)] (19) describes how funds will be used to serve 
        individuals in State correctional institutions;
          [(19) describes how funds will be used effectively to 
        link secondary and postsecondary education;]
          (20) describes how the eligible agency will award 
        grants, on a competitive basis or on the basis of a 
        formula determined by the eligible agency, using funds 
        described in section 112 (a) (1) for activities 
        described in section 135(b)(3);
          (21) describes how the eligible agency will carry out 
        measurable, sustainable, and coordinated tech-prep 
        activities in the State (as described in section 
        135(b)(3)), with funds allocated under section 112(a), 
        that are developed in consultation with the entities 
        described in subsection (b)(1) and that effectively 
        prepare students for post-secondary education or 
        employment in high demand occupations through a 
        seamless program of study consisting of appropriate 
        advanced academic and technical courses that include a 
        minimum of 2 years of secondary school preceding 
        graduation and a minimum of 2 years of higher education 
        or an apprenticeship program of at least 2 years 
        following secondary instruction;
          [(20)] (22) describes how the eligible agency will 
        ensure that the data reported to the eligible agency 
        from local educational agencies and eligible 
        institutions under this title and the data the eligible 
        agency reports to the Secretary are complete, accurate, 
        and reliable; and
          [(21)] (23) contains the description and information 
        specified in sections 112(b)(8) and 121(c) of Public 
        Law 105-220 concerning the provision of services only 
        for postsecondary students and school dropouts.
  [(d) Plan Option.--The eligible agency may fulfill the 
requirements of subsection (a) by submitting a plan under 
section 501 of Public Law 105-220.]
  [(e)] (d) Plan Approval.--
          (1) In general.--The Secretary shall approve a State 
        plan, or a revision to an approved State plan, unless 
        the Secretary determines that--
                  (A) * * *

           *       *       *       *       *       *       *

  [(f) Transition.--This section shall be subject to section 4 
for fiscal year 1999 only, with respect to activities under 
this section.]

[SEC. 123. IMPROVEMENT PLANS.

  [(a) State Program Improvement Plan.--If a State fails to 
meet the State adjusted levels of performance described in the 
report submitted under section 113(c), the eligible agency 
shall develop and implement a program improvement plan in 
consultation with appropriate agencies, individuals, and 
organizations for the first program year succeeding the program 
year in which the eligible agency failed to meet the State 
adjusted levels of performance, in order to avoid a sanction 
under subsection (d).
  [(b) Local Evaluation.--Each eligible agency shall evaluate 
annually, using the State adjusted levels of performance, the 
vocational and technical education activities of each eligible 
recipient receiving funds under this title.
  [(c) Local Improvement Plan.--
          [(1) In general.--If, after reviewing the evaluation, 
        the eligible agency determines that an eligible 
        recipient is not making substantial progress in 
        achieving the State adjusted levels of performance, the 
        eligible agency shall--
                  [(A) conduct an assessment of the educational 
                needs that the eligible recipient shall address 
                to overcome local performance deficiencies;
                  [(B) enter into an improvement plan based on 
                the results of the assessment, which plan shall 
                include instructional and other programmatic 
                innovations of demonstrated effectiveness, and 
                where necessary, strategies for appropriate 
                staffing and staff development; and
                  [(C) conduct regular evaluations of the 
                progress being made toward reaching the State 
                adjusted levels of performance.
          [(2) Consultation.--The eligible agency shall conduct 
        the activities described in paragraph (1) in 
        consultation with teachers, parents, other school 
        staff, appropriate agencies, and other appropriate 
        individuals and organizations.
  [(d) Sanctions.--
          [(1) Technical assistance.--If the Secretary 
        determines that an eligible agency is not properly 
        implementing the eligible agency's responsibilities 
        under section 122, or is not making substantial 
        progress in meeting the purpose of this Act, based on 
        the State adjusted levels of performance, the Secretary 
        shall work with the eligible agency to implement 
        improvement activities consistent with the requirements 
        of this Act.
          [(2) Failure.--If an eligible agency fails to meet 
        the State adjusted levels of performance, has not 
        implemented an improvement plan as described in 
        paragraph (1), has shown no improvement within 1 year 
        after implementing an improvement plan as described in 
        paragraph (1), or has failed to meet the State adjusted 
        levels of performance for 2 or more consecutive years, 
        the Secretary may, after notice and opportunity for a 
        hearing, withhold from the eligible agency all, or a 
        portion of, the eligible agency's allotment under this 
        title. The Secretary may waive the sanction under this 
        paragraph due to exceptional or uncontrollable 
        circumstances such as a natural disaster or a 
        precipitous and unforeseen decline in the financial 
        resources of the State.
          [(3) Funds resulting from reduced allotments.--
                  [(A) In general.--The Secretary shall use 
                funds withheld under paragraph (2), for a State 
                served by an eligible agency, to provide 
                (through alternative arrangements) services and 
                activities within the State to meet the purpose 
                of this Act.
                  [(B) Redistribution.--If the Secretary cannot 
                satisfactorily use funds withheld under 
                paragraph (2), then the amount of funds 
                retained by the Secretary as a result of a 
                reduction in an allotment made under paragraph 
                (2) shall be redistributed to other eligible 
                agencies in accordance with section 111.]

SEC. 123. IMPROVEMENT PLANS.

  (a) State Program Improvement.--
          (1) Plan.--If a State fails to meet the agreed upon 
        State adjusted levels of performance required under 
        section 113(b)(3), the eligible agency shall develop 
        and implement a program improvement plan (with special 
        consideration to performance gaps identified under 
        section 113(c)(2)) in consultation with the appropriate 
        agencies, individuals, and organizations for the first 
        program year succeeding the program year in which the 
        eligible agency failed to meet the State adjusted 
        levels of performance, in order to avoid a sanction 
        under paragraph (3).
          (2) Technical assistance.--If the Secretary 
        determines that an eligible agency is not properly 
        implementing the eligible agency's responsibilities 
        under section 122, or is not making substantial 
        progress in meeting the purpose of this Act, based on 
        the State's adjusted levels of performance, the 
        Secretary shall work with the eligible agency to 
        implement improvement activities consistent with the 
        requirements of this Act.
          (3) Subsequent action.--
                  (A) In general.--If an eligible agency fails 
                to meet the State adjusted levels of 
                performance and the purposes of this Act, has 
                not implemented an improvement plan as 
                described in paragraph (1), has shown no 
                improvement within 1 year after implementing an 
                improvement plan as described in paragraph (1), 
                or has failed to meet the State adjusted levels 
                of performance for 2 or more consecutive years, 
                the Secretary may, after notice and opportunity 
                for a hearing, withhold from the eligible 
                agency all, or a portion of, the eligible 
                agency's allotment under this title.
                  (B) Waiver for exceptional circumstances.--
                The Secretary may waive the sanction in 
                subparagraph (A) due to exceptional or 
                uncontrollable circumstances such as a natural 
                disaster or a precipitous and unforeseen 
                decline in the financial resources of the 
                State.
          (4) Funds resulting from reduced allotments.--
                  (A) In general.--The Secretary shall use 
                funds withheld under paragraph (3) for a State 
                served by an eligible agency, to provide 
                (through alternative arrangements) services and 
                activities within the State to meet the 
                purposes of this Act.
                  (B) Redistribution.--If the Secretary cannot 
                satisfactorily use funds withheld under 
                paragraph (3), then the amount of funds 
                retained by the Secretary as a result of a 
                reduction in an allotment made under paragraph 
                (3) shall be redistributed to other eligible 
                agencies in accordance with section 111.
  (b) Local Program Improvement.--
          (1) Local evaluation.--Each eligible agency shall 
        evaluate annually, using the local adjusted levels of 
        performance described in section 113(b)(4), the 
        vocational and technical education activities of each 
        eligible recipient receiving funds under this title.
          (2) Plan.--
                  (A) In general.--If, after reviewing the 
                evaluation, the eligible agency determines that 
                an eligible recipient is not making substantial 
                progress in achieving the local adjusted levels 
                of performance, or that an eligible recipient 
                demonstrates under section 113(b)(4)(C) a 
                widening of performance gaps between multiple 
                categories of students served by the eligible 
                recipient in comparison to all students in the 
                State served under the Act, the eligible agency 
                shall--
                          (i) conduct an assessment of the 
                        educational needs that the eligible 
                        recipient shall address to overcome 
                        local performance deficiencies;
                          (ii) enter into an improvement plan 
                        agreement with an eligible recipient 
                        based on the results of the assessment, 
                        for the first program year succeeding 
                        the program year in which the eligible 
                        recipient failed to meet the local 
                        adjusted levels of performance, which 
                        plan shall demonstrate how the local 
                        performance deficiencies will be 
                        corrected and include strategies for 
                        professional development and 
                        instructional and other programmatic 
                        innovations of demonstrated 
                        effectiveness, giving special 
                        consideration to performance gaps 
                        identified under section 113(b)(4)(C); 
                        and
                          (iii) conduct regular evaluations of 
                        the progress being made toward reaching 
                        the local adjusted levels of 
                        performance as described in section 
                        113(b)(4) and progress on implementing 
                        the improvement plan.
                  (B) Consultation.--The eligible agency shall 
                conduct the activities described in paragraph 
                (2) in consultation with teachers, parents, 
                other school staff, appropriate agencies, and 
                other appropriate individuals and 
                organizations.
          (3) Technical assistance.--If the eligible agency 
        determines that an eligible recipient is not properly 
        implementing the eligible recipient's responsibilities 
        under section 134, or is not making substantial 
        progress in meeting the purpose of this Act, based on 
        the local adjusted levels of performance, the eligible 
        agency shall provide technical assistance to the 
        eligible recipient to assist such recipient in carrying 
        out the improvement activities consistent with the 
        requirements of this Act.
          (4) Subsequent action.--
                  (A) In general.--If an eligible recipient 
                fails to meet the local adjusted levels of 
                performance as described in section 113(b)(4) 
                and the purposes of this Act, has not 
                implemented an improvement plan as described in 
                paragraph (2), has shown no improvement within 
                1 year after implementing an improvement plan 
                as described in paragraph (2), or has failed to 
                meet the local adjusted levels of performance 
                for 2 or more consecutive years, the eligible 
                agency may, after notice and opportunity for a 
                hearing, withhold from the eligible recipient 
                all, or a portion of, the eligible recipient's 
                allotment under this title.
                  (B) Waiver for exceptional circumstances.--
                The eligible agency may waive the sanction 
                under this paragraph due to exceptional or 
                uncontrollable circumstances such as a natural 
                disaster or a precipitous and unforeseen 
                decline in the financial resources of the 
                State.
          (5) Funds resulting from reduced allotments.--The 
        eligible agency shall use funds withheld under 
        paragraph (4) to continue to provide (through 
        alternative arrangements) services and activities in 
        the area served by such recipient to meet the purpose 
        of this Act.

SEC. 124. STATE LEADERSHIP ACTIVITIES.

  (a) * * *
  (b) Required Uses of Funds.--The State leadership activities 
described in subsection (a) shall include--
          (1) an assessment of the vocational and technical 
        education programs carried out with funds under this 
        title that includes an assessment of how the needs of 
        special populations are being met and how such programs 
        are designed to enable special populations to meet 
        State adjusted levels of performance and prepare the 
        special populations for further [learning] education or 
        for high skill, high wage careers;
          (2) developing, improving, or expanding the use of 
        technology in vocational and technical education, and 
        the required math and science education, that may 
        include--
                  (A) * * *
                  (B) providing vocational and technical 
                education students with the academic, and 
                vocational and technical skills (including the 
                math and science knowledge that provides a 
                strong basis for such skills) that lead to 
                entry into the high technology [and 
                telecommunications field] fields, including 
                nontraditional fields; or

           *       *       *       *       *       *       *

          (3) professional development programs, including 
        providing comprehensive professional development 
        (including initial teacher preparation) for vocational 
        and technical, academic, guidance, and administrative 
        personnel at the secondary and postsecondary levels, 
        that--
                  (A) will provide inservice and preservice 
                training for vocational and technical education 
                teachers in the integration and use of rigorous 
                and challenging academics with vocational and 
                technical subjects;
                  (B) are high quality, sustained, intensive, 
                and classroom-focused in order to have a 
                positive and lasting impact on classroom 
                instruction and the teacher's performance in 
                the classroom, and are not 1 day or short-term 
                workshops or conferences;
                  [(A)] (C) will provide inservice and 
                preservice training in state-of-the-art 
                vocational and technical education programs and 
                techniques, effective teaching skills based on 
                scientifically based research, and effective 
                practices to improve parental and community 
                involvement; [and]
                  [(B)] (D) will help teachers and personnel to 
                [assist students in meeting] improve student 
                achievement in order to meet the State adjusted 
                levels of performance established under section 
                113;
                  [(C) will support education programs for 
                teachers of vocational and technical education 
                in public schools and other public school 
                personnel who are involved in the direct 
                delivery of educational services to vocational 
                and technical education students to ensure that 
                such teachers stay current with the needs, 
                expectations, and methods of industry; and]
                  (E) will support education programs for 
                teachers of vocational and technical education 
                in public schools and other public school 
                personnel who are involved in the direct 
                delivery of educational services to vocational 
                and technical education students to ensure that 
                teachers and personnel--
                          (i) stay current with the needs, 
                        expectations, and methods of industry;
                          (ii) meet teacher certification or 
                        licensing requirements, especially in 
                        core academic subjects as defined in 
                        section 9101(11) of the Elementary and 
                        Secondary Education Act of 1965 (20 
                        U.S.C. 7801(11));
                          (iii) effectively develop integrated 
                        rigorous and challenging academic and 
                        vocational and technical education 
                        curriculum;
                          (iv) develop a high level of academic 
                        and industry knowledge and skills of 
                        vocational and technical education; and
                          (v) effectively use applied learning 
                        that contributes to the academic and 
                        vocational and technical knowledge of 
                        the student;
                  [(D)] (F) is integrated with the professional 
                development activities that the State carries 
                out under title II of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 6001 
                et seq.) and title II of the Higher Education 
                Act of 1965;
          (4) support for vocational and technical education 
        programs that improve the academic, and vocational and 
        technical skills of students participating in 
        vocational and technical education programs by 
        strengthening the academic, and vocational and 
        technical components of such vocational and technical 
        education programs through the [integration of 
        academics with vocational and technical education to 
        ensure learning in the core academic,] provision of 
        rigorous and challenging academics that are integrated 
        with vocational and technical education to ensure 
        achievement in the core academic subjects (as defined 
        in section 9101(11) of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7801(11))), and 
        vocational and technical subjects;
          (5) providing preparation for nontraditional 
        [training and employment] fields;
          (6) supporting partnerships among local educational 
        agencies, institutions of higher education, adult 
        education providers, and, as appropriate, other 
        entities, such as employers, labor organizations, 
        parents, and local partnerships, to enable students to 
        achieve State academic standards, and vocational and 
        technical skills and complete a model sequence of 
        courses, as described in section 122(c)(1)(A);
          (7) serving individuals in State institutions, such 
        as State correctional institutions and institutions 
        that serve individuals with disabilities; [and]
          (8) support for programs for special populations that 
        lead to high skill, high wage careers[.]; and
          (9) technical assistance for eligible recipients.
  (c) Permissible Uses of Funds.--The leadership activities 
described in subsection (a) may include--
          [(1) technical assistance for eligible recipients;]
          [(2)] (1) improvement of career guidance and academic 
        counseling programs that assist students in making 
        informed academic, and vocational and technical 
        education decisions;
          [(3)] (2) establishment of agreements between 
        secondary and postsecondary vocational and technical 
        education programs in order to provide postsecondary 
        education and training opportunities for students 
        participating in such vocational and technical 
        education programs, such as tech-prep programs;
          [(4)] (3) support for cooperative education;
          [(5)] (4) support for vocational and technical 
        student organizations, especially with respect to 
        efforts to increase the participation of students who 
        are members of special populations;
          [(6)] (5) support for public charter schools 
        operating secondary vocational and technical education 
        programs;
          [(7)] (6) support for vocational and technical 
        education programs that offer experience in, and 
        understanding of, all aspects of an industry for which 
        students are preparing to enter;
          [(8)] (7) support for family and consumer sciences 
        programs;
          [(9)] (8) support for education and business 
        partnerships;
          [(10)] (9) support to improve or develop new 
        vocational and technical education courses that prepare 
        individuals academically and technically for current 
        and emerging occupations in demand;
          (10) awarding incentive grants to eligible recipients 
        for exemplary performance in carrying out programs 
        under this Act, which awards shall be based on--
                  (A) eligible recipients exceeding challenging 
                performance measures established under section 
                113(b) that reflect sustained or significant 
                improvement;
                  (B) eligible recipients effectively 
                developing connections between secondary 
                education and postsecondary education and 
                training;
                  (C) the adoption and integration of rigorous 
                and challenging academic and technical 
                coursework;
                  (D) an eligible recipient's progress in 
                having special populations participating in 
                vocational and technical education programs 
                meet local adjusted levels of performance; or
                  (E) other factors relating to the performance 
                of the eligible recipient under this Act as the 
                eligible agency determines are appropriate.
          (11) providing for activities to support 
        entrepreneurship education and training;
          [(11)] (12) providing vocational and technical 
        education programs for adults and school dropouts to 
        complete their secondary school education; and
          [(12)] (13) providing assistance to students, who 
        have participated in services and activities under this 
        title, in finding an appropriate job and continuing 
        their education.

           *       *       *       *       *       *       *


                        PART C--LOCAL PROVISIONS

SEC. 131. DISTRIBUTION OF FUNDS TO SECONDARY SCHOOL PROGRAMS.

  [(a) Distribution for Fiscal Year 1999.--Except as provided 
in section 133 and as otherwise provided in this section, each 
eligible agency shall distribute the portion of the funds made 
available under section 112(a)(1) to carry out this section for 
fiscal year 1999 to local educational agencies within the State 
as follows:
          [(1) Seventy percent.--From 70 percent of such 
        portion, each local educational agency shall be 
        allocated an amount that bears the same relationship to 
        such 70 percent as the amount such local educational 
        agency was allocated under section 1124 of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6333) for the preceding fiscal year bears to the 
        total amount received under such section by all local 
        educational agencies in the State for such preceding 
        fiscal year.
          [(2) Twenty percent.--From 20 percent of such 
        portion, each local educational agency shall be 
        allocated an amount that bears the same relationship to 
        such 20 percent as the number of students with 
        disabilities who have individualized education programs 
        under section 614(d) of the Individuals with 
        Disabilities Education Act (20 U.S.C. 1414(d)) served 
        by such local educational agency for the preceding 
        fiscal year bears to the total number of such students 
        served by all local educational agencies in the State 
        for such preceding fiscal year.
          [(3) Ten percent.--From 10 percent of such portion, 
        each local educational agency shall be allocated an 
        amount that bears the same relationship to such 10 
        percent as the number of students enrolled in schools 
        and adults enrolled in training programs under the 
        jurisdiction of such local educational agency for the 
        preceding fiscal year bears to the number of students 
        enrolled in schools and adults enrolled in training 
        programs under the jurisdiction of all local 
        educational agencies in the State for such preceding 
        fiscal year.]
  [(b) Special] (a) Distribution Rules [for Succeeding Fiscal 
Years].--Except as provided in section 133 and as otherwise 
provided in this section, each eligible agency shall distribute 
the portion of funds made available under section 112(a)(1) to 
carry out this section [for fiscal year 2000 and succeeding 
fiscal years] to local educational agencies within the State as 
follows:
          (1) * * *

           *       *       *       *       *       *       *

  [(c)] (b) Waiver for More Equitable Distribution.--The 
Secretary may waive the application of subsection [(b)] (a) in 
the case of any eligible agency that submits to the Secretary 
an application for such a waiver that--
          (1) demonstrates that a proposed alternative formula 
        more effectively targets funds on the basis of poverty 
        (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))] (42 U.S.C. 9902(2))) to local educational 
        agencies within the State than the formula described in 
        subsection (b); and
          (2) includes a proposal for such an alternative 
        formula.
  [(d)] (c) Minimum Allocation.--
          (1) * * *

           *       *       *       *       *       *       *

  [(e)] (d) Limited Jurisdiction Agencies.--
          (1) * * *

           *       *       *       *       *       *       *

  [(f )] (e) Allocations to Area Vocational and Technical 
Education Schools and Educational Service Agencies.--
          (1) * * *

           *       *       *       *       *       *       *

  [(g)] (f) Consortium Requirements.--
          (1) * * *

           *       *       *       *       *       *       *

  [(h)] (g) Data.--The Secretary shall collect information from 
eligible agencies regarding the specific dollar allocations 
made available by the eligible agency for vocational and 
technical education programs under subsections (a), (b), (c), 
and (d) and how these allocations are distributed to local 
educational agencies, area vocational and technical education 
schools, and educational service agencies, within the State in 
accordance with this section.
  [(i)] (h) Special Rule.--Each eligible agency distributing 
funds under this section shall treat a secondary school funded 
by the Bureau of Indian Affairs within the State as if such 
school were a local educational agency within the State for the 
purpose of receiving a distribution under this section.

           *       *       *       *       *       *       *


SEC. 133. SPECIAL RULES FOR VOCATIONAL AND TECHNICAL EDUCATION.

  (a) * * *
  [(b) Redistribution.--
          [(1) In general.--In any academic year that an 
        eligible recipient does not expend all of the amounts 
        the eligible recipient is allocated for such year under 
        section 131 or 132, such eligible recipient shall 
        return any unexpended amounts to the eligible agency to 
        be reallocated under section 131 or 132, as 
        appropriate.
          [(2) Redistribution of amounts returned late in an 
        academic year.--In any academic year in which amounts 
        are returned to the eligible agency under section 131 
        or 132 and the eligible agency is unable to reallocate 
        such amounts according to such sections in time for 
        such amounts to be expended in such academic year, the 
        eligible agency shall retain such amounts for 
        distribution in combination with amounts provided under 
        section 112(a)(1) for the following academic year.]
  [(c)] (b) Construction.--Nothing in section 131 or 132 shall 
be construed--
          (1) * * *

           *       *       *       *       *       *       *

  [(d)] (c) Consistent Application.--For purposes of this 
section, the eligible agency shall provide funds to charter 
schools offering vocational and technical education programs in 
the same manner as the eligible agency provides those funds to 
other schools. Such vocational and technical education programs 
within a charter school shall be of sufficient size, scope, and 
quality to be effective.

SEC. 134. LOCAL PLAN FOR VOCATIONAL AND TECHNICAL EDUCATION PROGRAMS.

  (a) * * *
  (b) Contents.--The eligible agency shall determine 
requirements for local plans, except that each local plan 
shall--
          (1) * * *
          (2) describe how the vocational and technical 
        education activities will be carried out with respect 
        to meeting State and local adjusted levels of 
        performance established under section 113;
          (3) describe how the eligible recipient will--
                  (A) offer the appropriate courses of at least 
                one of the model sequences of courses described 
                in section 124(c)(1), as appropriate to the 
                eligible recipient responsible for that element 
                of the sequence;
                  [(A)] (B) improve the academic and technical 
                skills of students participating in vocational 
                and technical education programs by 
                strengthening the academic, and vocational and 
                technical components of such programs through 
                the integration of rigorous and challenging 
                academics with vocational and technical 
                education programs through a coherent sequence 
                of courses to ensure learning in the core 
                academic subjects (as defined by section 
                9101(11) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7801(11))), 
                and vocational and technical subjects;
                  [(B)] (C) provide students with strong 
                experience in and understanding of all aspects 
                of an industry; and
                  [(C)] (D) ensure that students who 
                participate in such vocational and technical 
                education programs are taught to the same 
                rigorous and challenging academic proficiencies 
                as are taught for all other students;
          (4) describe how comprehensive professional 
        development (including initial teacher preparation) for 
        vocational and technical, academic, guidance, and 
        administrative personnel will be provided that promotes 
        the integration of rigorous and challenging academic 
        and technical education (including curriculum 
        development);
          [(4)] (5) describe how parents, students, academic 
        and vocational and technical teachers, representatives 
        of business and industry, labor organizations, 
        representatives of special populations, and other 
        interested individuals are involved in the development, 
        implementation, and evaluation of vocational and 
        technical education programs assisted under this title, 
        and how such individuals and entities are effectively 
        informed about, and assisted in understanding, the 
        requirements of this title, including the eligible 
        recipients that offer elements of the model sequence of 
        courses;
          [(5)] (6) provide assurances that the eligible 
        recipient will provide a vocational and technical 
        education program that is of such size, scope, and 
        quality to bring about improvement in the quality of 
        vocational and technical education programs;
          [(6)] (7) describe the process that will be used to 
        independently evaluate and continuously improve the 
        performance of the eligible recipient;
          [(7)] (8) describe how the eligible recipient--
                  (A) will review vocational and technical 
                education programs, and identify and adopt 
                strategies to overcome barriers that result in 
                lowering rates of access to or lowering success 
                in the programs, for special populations[; 
                and];
                  (B) will provide programs that are designed 
                to enable the special populations to meet the 
                State adjusted levels of performance; and
                  (C) will provide activities to prepare 
                special populations, including single parents 
                and displaced homemakers, for high skill, high 
                wage occupations that will lead to self-
                sufficiency;
          [(8)] (9) describe how individuals who are members of 
        the special populations will not be discriminated 
        against on the basis of their status as members of the 
        special populations;
          [(9)] (10) describe how funds will be used to promote 
        preparation for nontraditional training and employment; 
        and
          [(10)] (11) describe how comprehensive professional 
        development (including initial teacher preparation) for 
        vocational and technical, academic, guidance, and 
        administrative personnel will be provided.

SEC. 135. LOCAL USES OF FUNDS.

  (a) * * *
  (b) Requirements for Uses of Funds.--Funds made available to 
eligible recipients under this part shall be used to support 
vocational and technical education programs that--
          (1) strengthen the academic, and vocational and 
        technical skills of students participating in 
        vocational and technical education programs by 
        strengthening the academic, and vocational and 
        technical components of such programs through the 
        integration of academics with vocational and technical 
        education programs through a coherent sequence of 
        courses [to ensure learning in the core academic] as 
        established in the State-developed model sequences of 
        courses described in section 122(c)(1)(A) to ensure 
        learning in the core academic subjects (as defined by 
        section 9101(11) of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7801(11))), and 
        vocational and technical subjects;
          (2) link secondary vocational and technical education 
        and postsecondary vocational and technical education, 
        including offering model sequences of courses and 
        implementing tech-prep programs consistent with the 
        activities described in paragraph (3);
          (3) support tech-prep programs (if the eligible 
        recipient receives the funds from the eligible agency 
        under section 112(a)(1)) that--
                  (A) are carried out under an articulation 
                agreement between the participants in a 
                consortium, which shall include--
                          (i) a local educational agency, an 
                        intermediate educational agency or area 
                        vocational and technical education 
                        school serving secondary school 
                        students, or a secondary school funded 
                        by the Bureau of Indian Affairs; and
                          (ii)(I) a nonprofit institution of 
                        higher education that offers--
                                  (aa) a 2 or 4-year degree 
                                program, or a 2-year 
                                certificate program, and is 
                                qualified as an institution of 
                                higher education pursuant to 
                                section 102 of the Higher 
                                Education Act of 1965 (20 
                                U.S.C. 1002) (except those 
                                institutions described in 
                                section 102(a)(1)(C) of such 
                                Act), including an institution 
                                receiving assistance under the 
                                Tribally Controlled College or 
                                University Assistance Act of 
                                1978 (25 U.S.C. 1801 et seq.) 
                                and a tribally controlled 
                                postsecondary vocational and 
                                technical institution; or
                                  (bb) a 2-year apprenticeship 
                                program that follows secondary 
                                instruction, if such nonprofit 
                                institution of higher education 
                                is not prohibited from 
                                receiving assistance under part 
                                B of title IV of the Higher 
                                Education Act of 1965 (20 
                                U.S.C. 1071 et seq.) pursuant 
                                to the provisions of section 
                                435(a)(3) of such Act (20 
                                U.S.C. 1083(a)); or
                                  (II) a proprietary 
                                institution of higher education 
                                that offers a 2-year associate 
                                degree program and is qualified 
                                as an institution of higher 
                                education pursuant to section 
                                102 of the Higher Education Act 
                                of 1965 (20 U.S.C. 1002), if 
                                such proprietary institution of 
                                higher education is not subject 
                                to a default management plan 
                                required by the Secretary,
                        and may include nonprofit organizations 
                        that provide eligible recipients with 
                        technology and programs to enhance math 
                        and science skills, employers, and 
                        labor organizations;
                  (B) consist of a minimum of 2 years of 
                secondary school preceding graduation and a 
                minimum of 2 years of higher education, or an 
                apprenticeship program of at least 2 years 
                following secondary instruction;
                  (C) meet academic standards developed by the 
                State, including standards developed under 
                section 1111 of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6311) for 
                secondary students, and support proficiency in 
                mathematics, science, reading, writing, 
                communications, and technologies;
                  (D) are comprised of model sequences of 
                courses that integrate rigorous and challenging 
                academics and vocational and technical 
                education;
                  (E) provide technical preparation in a career 
                field such as engineering technology; applied 
                science; a mechanical, industrial, or practical 
                art or trade; agriculture; health occupations; 
                business; applied economics; advanced 
                manufacturing; or other high-demand occupations 
                as determined by the State;
                  (F) use, if appropriate and available, work-
                based or worksite learning in conjunction with 
                academic and vocational and technical 
                education;
                  (G) use educational technology and distance 
                learning, as appropriate, to involve all the 
                consortium partners more fully in the 
                development and operation of programs;
                  (H) facilitate and promote close working 
                relationships among eligible recipients to 
                ensure that programs within a geographic area 
                are closely integrated with tech-prep program 
                activities;
                  (I) are sustainable and use performance 
                indicator data, described in section 113, to 
                inform program quality;
                  (J) include academic and career counseling 
                for participants that provide information to 
                students (and parents, as appropriate) 
                regarding tech-prep programs and support 
                student progress in completing tech-prep 
                programs;
                  (K) include in-service training for teachers 
                that--
                          (i) provides for joint training for 
                        teachers in tech-prep programs; and
                          (ii) is designed to ensure that 
                        teachers and administrators stay 
                        current with the needs, expectations, 
                        and methods of business and all aspects 
                        of an industry; and
                  (L) provide students with transferable credit 
                between the consortium members, as described in 
                subparagraph (A), including through programs 
                that allow secondary programs to be co-located 
                on postsecondary campuses;
          [(2)] (4) provide students with strong experience in 
        and understanding of all aspects of an industry;
          [(3)] (5) develop, improve, or expand the use of 
        technology in vocational and technical education, and 
        the related math and science education, which may 
        include--
                  (A) * * *
                  (B) providing vocational and technical 
                education students with the academic, and 
                vocational and technical skills (including the 
                math and science knowledge that provides a 
                strong basis for such skills) that lead to 
                entry into the high technology [and 
                telecommunications field] fields; or
                  (C) encouraging schools to [work] collaborate 
                with high technology industries to offer 
                voluntary internships and mentoring programs 
                that improve the math and science knowledge of 
                students;
          [(4)] (6) provide professional development programs 
        to [teachers,] secondary and postsecondary teachers, 
        instructors, counselors, and administrators, 
        including--
                  (A) inservice and preservice training in 
                state-of-the-art vocational and technical 
                education programs and techniques, [in 
                effective teaching skills based on research] in 
                effective integration of rigorous and 
                challenging academic and vocational and 
                technical education, in effective teaching 
                skills based on scientifically based research, 
                and in effective practices to improve parental 
                and community involvement;

           *       *       *       *       *       *       *

          [(5)] (7) develop and implement evaluations of the 
        vocational and technical education programs carried out 
        with funds under this title, including an assessment of 
        how the needs of special populations are being met;
          [(6)] (8) initiate, improve, expand, and modernize 
        quality vocational and technical education programs;
          [(7)] (9) provide services and activities that are of 
        sufficient size, scope, and quality to be effective; 
        and
          [(8) link secondary vocational and technical 
        education and postsecondary vocational and technical 
        education, including implementing tech-prep programs.]
          (10) provide activities to prepare special 
        populations, including single parents and displaced 
        homemakers, for high skill, high wage occupations that 
        will lead to self sufficiency.
  (c) Permissive.--Funds made available to an eligible 
recipient under this title may be used--
          (1) * * *
          (2) to provide career guidance and academic 
        counseling for students participating in vocational and 
        technical education programs, regarding the range of 
        postsecondary options available, including for adult 
        students who are changing careers or updating skills;

           *       *       *       *       *       *       *

          (5) for local education and business partnerships, 
        including the establishment and operation of special 
        arrangements with industry partners that allow 
        qualified industry professionals to serve as faculty in 
        postsecondary programs;

           *       *       *       *       *       *       *

          (8) for leasing, purchasing, upgrading or adapting 
        equipment, including instructional [aides] aids;
          (9) for teacher preparation programs that address the 
        integration of academic and vocational and technical 
        education and that assist individuals who are 
        interested in becoming vocational and technical 
        education instructors, including individuals with 
        experience in business and industry;
          (10) to develop and expand postsecondary program 
        offerings that are accessible by students, including 
        the use of distance education;
          (11) to provide activities to support 
        entrepreneurship education and training;
          [(10)] (12) for improving or developing new 
        vocational and technical education courses, including 
        development of new proposed model sequences of courses 
        for consideration by the eligible agency and courses 
        that prepare individuals academically and technically 
        for current and emerging occupations that are in 
        demand;
          [(11)] (13) to provide support for family and 
        consumer sciences programs;
          [(12)] (14) to provide vocational and technical 
        education programs for adults and school dropouts to 
        complete their secondary school education;
          [(13)] (15) to provide assistance to students who 
        have participated in services and activities under this 
        title in finding an appropriate job and continuing 
        their education;
          [(14)] (16) to support nontraditional training and 
        employment activities; [and]
          (17) to provide accurate information relating to the 
        availability of supportive services available in an 
        area served by the eligible recipient , and referral to 
        such services, as appropriate;
          (18) to support the activities described in 
        subsection (b)(3); and
          [(15)] (19) to support other vocational and technical 
        education activities that are consistent with the 
        purpose of this Act.

           *       *       *       *       *       *       *


                     [TITLE II--TECH-PREP EDUCATION

[SEC. 201. SHORT TITLE.

  [This title may be cited as the ``Tech-Prep Education Act''.

[SEC. 202. DEFINITIONS.

  [(a) In this title:
          [(1) Articulation agreement.--The term ``articulation 
        agreement'' means a written commitment to a program 
        designed to provide students with a nonduplicative 
        sequence of progressive achievement leading to degrees 
        or certificates in a tech-prep education program.
          [(2) Community college.--The term ``community 
        college''--
                  [(A) means an institution of higher 
                education, as defined in section 101 of the 
                Higher Education Act of 1965, that provides not 
                less than a 2-year program that is acceptable 
                for full credit toward a bachelor's degree; and
                  [(B) includes tribally controlled colleges or 
                universities.
          [(3) Tech-prep program.--The term ``tech-prep 
        program'' means a program of study that--
                  [(A) combines at a minimum 2 years of 
                secondary education (as determined under State 
                law) with a minimum of 2 years of postsecondary 
                education in a nonduplicative, sequential 
                course of study;
                  [(B) integrates academic, and vocational and 
                technical, instruction, and utilizes work-based 
                and worksite learning where appropriate and 
                available;
                  [(C) provides technical preparation in a 
                career field such as engineering technology, 
                applied science, a mechanical, industrial, or 
                practical art or trade, agriculture, health 
                occupations, business, or applied economics;
                  [(D) builds student competence in 
                mathematics, science, reading, writing, 
                communications, economics, and workplace skills 
                through applied, contextual academics, and 
                integrated instruction, in a coherent sequence 
                of courses;
                  [(E) leads to an associate or a baccalaureate 
                degree or a postsecondary certificate in a 
                specific career field; and
                  [(F) leads to placement in appropriate 
                employment or to further education.

[SEC. 203. STATE ALLOTMENT AND APPLICATION.

  [(a) In General.--For any fiscal year, the Secretary shall 
allot the amount made available under section 206 among the 
States in the same manner as funds are allotted to States under 
paragraph (2) of section 111(a).
  [(b) Payments to Eligible Agencies.--The Secretary shall make 
a payment in the amount of a State's allotment under subsection 
(a) to the eligible agency that serves the State and has an 
application approved under subsection (c).
  [(c) State Application.--Each eligible agency desiring 
assistance under this title shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may require.

[SEC. 204. TECH-PREP EDUCATION.

  [(a) Grant Program Authorized.--
          [(1) In general.--From amounts made available to each 
        eligible agency under section 203, the eligible agency, 
        in accordance with the provisions of this title, shall 
        award grants, on a competitive basis or on the basis of 
        a formula determined by the eligible agency, for tech-
        prep education programs described in subsection (c). 
        The grants shall be awarded to consortia between or 
        among--
                  [(A) a local educational agency, an 
                intermediate educational agency or area 
                vocational and technical education school 
                serving secondary school students, or a 
                secondary school funded by the Bureau of Indian 
                Affairs; and
                  [(B)(i) a nonprofit institution of higher 
                education that offers--
                          [(I) a 2-year associate degree 
                        program, or a 2-year certificate 
                        program, and is qualified as 
                        institutions of higher education 
                        pursuant to section 102 of the Higher 
                        Education Act of 1965, including an 
                        institution receiving assistance under 
                        the Tribally Controlled College or 
                        University Assistance Act of 1978 (25 
                        U.S.C. 1801 et seq.) and a tribally 
                        controlled postsecondary vocational and 
                        technical institution; or
                          [(II) a 2-year apprenticeship program 
                        that follows secondary instruction,
                if such nonprofit institution of higher 
                education is not prohibited from receiving 
                assistance under part B of title IV of the 
                Higher Education Act of 1965 (20 U.S.C. 1071 et 
                seq.) pursuant to the provisions of section 
                435(a)(3) of such Act (20 U.S.C. 1083(a)); or
                  [(ii) a proprietary institution of higher 
                education that offers a 2-year associate degree 
                program and is qualified as an institution of 
                higher education pursuant to section 102 of the 
                Higher Education Act of 1965, if such 
                proprietary institution of higher education is 
                not subject to a default management plan 
                required by the Secretary.
          [(2) Special rule.--In addition, a consortium 
        described in paragraph (1) may include 1 or more--
                  [(A) institutions of higher education that 
                award a baccalaureate degree; and
                  [(B) employer or labor organizations.
  [(b) Duration.--Each grant recipient shall use amounts 
provided under the grant to develop and operate a 4- or 6-year 
tech-prep education program described in subsection (c).
  [(c) Contents of Tech-Prep Program.--Each tech-prep program 
shall--
          [(1) be carried out under an articulation agreement 
        between the participants in the consortium;
          [(2) consist of at least 2 years of secondary school 
        preceding graduation and 2 years or more of higher 
        education, or an apprenticeship program of at least 2 
        years following secondary instruction, with a common 
        core of required proficiency in mathematics, science, 
        reading, writing, communications, and technologies 
        designed to lead to an associate's degree or a 
        postsecondary certificate in a specific career field;
          [(3) include the development of tech-prep programs 
        for both secondary and postsecondary, including 
        consortium, participants in the consortium that--
                  [(A) meets academic standards developed by 
                the State;
                  [(B) links secondary schools and 2-year 
                postsecondary institutions, and if possible and 
                practicable, 4-year institutions of higher 
                education through nonduplicative sequences of 
                courses in career fields, including the 
                investigation of opportunities for tech-prep 
                secondary students to enroll concurrently in 
                secondary and postsecondary coursework;
                  [(C) uses, if appropriate and available, 
                work-based or worksite learning in conjunction 
                with business and all aspects of an industry; 
                and
                  [(D) uses educational technology and distance 
                learning, as appropriate, to involve all the 
                consortium partners more fully in the 
                development and operation of programs;
          [(4) include in-service training for teachers that--
                  [(A) is designed to train vocational and 
                technical teachers to effectively implement 
                tech-prep programs;
                  [(B) provides for joint training for teachers 
                in the tech-prep consortium;
                  [(C) is designed to ensure that teachers and 
                administrators stay current with the needs, 
                expectations, and methods of business and all 
                aspects of an industry;
                  [(D) focuses on training postsecondary 
                education faculty in the use of contextual and 
                applied curricula and instruction; and
                  [(E) provides training in the use and 
                application of technology;
          [(5) include training programs for counselors 
        designed to enable counselors to more effectively--
                  [(A) provide information to students 
                regarding tech-prep education programs;
                  [(B) support student progress in completing 
                tech-prep programs;
                  [(C) provide information on related 
                employment opportunities;
                  [(D) ensure that such students are placed in 
                appropriate employment; and
                  [(E) stay current with the needs, 
                expectations, and methods of business and all 
                aspects of an industry;
          [(6) provide equal access, to the full range of 
        technical preparation programs, to individuals who are 
        members of special populations, including the 
        development of tech-prep program services appropriate 
        to the needs of special populations; and
          [(7) provide for preparatory services that assist 
        participants in tech-prep programs.
  [(d) Additional Authorized Activities.--Each tech-prep 
program may--
          [(1) provide for the acquisition of tech-prep program 
        equipment;
          [(2) acquire technical assistance from State or local 
        entities that have designed, established, and operated 
        tech-prep programs that have effectively used 
        educational technology and distance learning in the 
        delivery of curricula and services and in the 
        articulation process; and
          [(3) establish articulation agreements with 
        institutions of higher education, labor organizations, 
        or businesses located inside or outside the State and 
        served by the consortium, especially with regard to 
        using distance learning and educational technology to 
        provide for the delivery of services and programs.

[SEC. 205. CONSORTIUM APPLICATIONS.

  [(a) In General.--Each consortium that desires to receive a 
grant under this title shall submit an application to the 
eligible agency at such time and in such manner as the eligible 
agency shall prescribe.
  [(b) Plan.--Each application submitted under this section 
shall contain a 5-year plan for the development and 
implementation of tech-prep programs under this title, which 
plan shall be reviewed after the second year of the plan.
  [(c) Approval.--The eligible agency shall approve 
applications based on the potential of the activities described 
in the application to create an effective tech-prep program.
  [(d) Special Consideration.--The eligible agency, as 
appropriate, shall give special consideration to applications 
that--
          [(1) provide for effective employment placement 
        activities or the transfer of students to baccalaureate 
        degree programs;
          [(2) are developed in consultation with business, 
        industry, institutions of higher education, and labor 
        organizations;
          [(3) address effectively the issues of school dropout 
        prevention and reentry and the needs of special 
        populations;
          [(4) provide education and training in areas or 
        skills in which there are significant workforce 
        shortages, including the information technology 
        industry; and
          [(5) demonstrate how tech-prep programs will help 
        students meet high academic and employability 
        competencies.
  [(e) Equitable Distribution of Assistance.--In awarding 
grants under this title, the eligible agency shall ensure an 
equitable distribution of assistance between urban and rural 
consortium participants.

[SEC. 206. REPORT.

  [Each eligible agency that receives a grant under this title 
annually shall prepare and submit to the Secretary a report on 
the effectiveness of the tech-prep programs assisted under this 
title, including a description of how grants were awarded 
within the State.

[SEC. 207. DEMONSTRATION PROGRAM.

  [(a) Demonstration Program Authorized.--From funds 
appropriated under subsection (e) for a fiscal year, the 
Secretary shall award grants to consortia described in section 
204(a) to enable the consortia to carry out tech-prep education 
programs.
  [(b) Program Contents.--Each tech-prep program referred to in 
subsection (a)--
          [(1) shall--
                  [(A) involve the location of a secondary 
                school on the site of a community college;
                  [(B) involve a business as a member of the 
                consortium; and
                  [(C) require the voluntary participation of 
                secondary school students in the tech-prep 
                education program; and
          [(2) may provide summer internships at a business for 
        students or teachers.
  [(c) Application.--Each consortium desiring a grant under 
this section shall submit an application to the Secretary at 
such time, in such manner and accompanied by such information 
as the Secretary may require.
  [(d) Applicability.--The provisions of sections 203, 204, 
205, and 206 shall not apply to this section, except that--
          [(1) the provisions of section 204(a) shall apply for 
        purposes of describing consortia eligible to receive 
        assistance under this section;
          [(2) each tech-prep education program assisted under 
        this section shall meet the requirements of paragraphs 
        (1), (2), (3)(A), (3)(B), (3)(C), (3)(D), (4), (5), 
        (6), and (7) of section 204(c), except that such 
        paragraph (3)(B) shall be applied by striking ``, and 
        if possible and practicable, 4-year institutions of 
        higher education through nonduplicative sequences of 
        courses in career fields''; and
          [(3) in awarding grants under this section, the 
        Secretary shall give special consideration to consortia 
        submitting applications under subsection (c) that meet 
        the requirements of paragraphs (1), (3), (4), and (5) 
        of section 205(d), except that such paragraph (1) shall 
        be applied by striking ``or the transfer of students to 
        baccalaureate degree programs''.
  [(e) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section $25,000,000 for 
fiscal year 1999 and each of the 4 succeeding fiscal years.

[SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

  [There is authorized to be appropriated to carry out this 
title (other than section 207) such sums as may be necessary 
for fiscal year 1999 and each of the 4 succeeding fiscal 
years.]

                   TITLE [III] II--GENERAL PROVISIONS

               PART A--FEDERAL ADMINISTRATIVE PROVISIONS

SEC. [311] 211. FISCAL REQUIREMENTS.

  (a) Supplement Not Supplant.--Funds made available under this 
Act for vocational and technical education activities shall 
supplement, and shall not supplant, non-Federal funds expended 
to carry out vocational and technical education activities and 
tech-prep activities.
  (b) Maintenance of Effort.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Definition.--For purposes of this subsection, the 
        term ``preceding fiscal year'' means the Federal fiscal 
        year or the 12-month fiscal period used by a State for 
        official reporting purposes, prior to the beginning of 
        the Federal fiscal year in which funds are available 
        for obligation by the Secretary.

SEC. [312] 212. AUTHORITY TO MAKE PAYMENTS.

  Any authority to make payments or to enter into contracts 
under this Act shall be available only to such extent or in 
such amounts as are provided in advance in appropriation Acts.

SEC. [313] 213. CONSTRUCTION.

  Nothing in this Act shall be construed to permit, allow, 
encourage, or authorize any Federal control over any aspect of 
a private, religious, or home school, regardless of whether a 
home school is treated as a private school or home school under 
State law. This section shall not be construed to bar students 
attending private, religious, or home schools from 
participation in programs or services under this Act.

SEC. [314] 214. VOLUNTARY SELECTION AND PARTICIPATION.

  No funds made available under this Act shall be used--
          (1) to require any secondary school student to choose 
        or pursue a specific career path or major; and

           *       *       *       *       *       *       *


SEC. [315] 215. LIMITATION FOR CERTAIN STUDENTS.

  No funds received under this Act may be used to provide 
vocational and technical education programs to students prior 
to the seventh grade, except that equipment and facilities 
purchased with funds under this Act may be used by such 
students.

SEC. [316] 216. FEDERAL LAWS GUARANTEEING CIVIL RIGHTS.

  Nothing in this Act shall be construed to be inconsistent 
with applicable Federal law prohibiting discrimination on the 
basis of race, color, sex, national origin, age, or disability 
in the provision of Federal programs or services.

[SEC. 317. AUTHORIZATION OF SECRETARY.

  [For the purposes of increasing and expanding the use of 
technology in vocational and technical education instruction, 
including the training of vocational and technical education 
personnel as provided in this Act, the Secretary is authorized 
to receive and use funds collected by the Federal Government 
from fees for the use of property, rights-of-way, and easements 
under the control of Federal departments and agencies for the 
placement of telecommunications services that are dependent, in 
whole or in part, upon the utilization of general spectrum 
rights for the transmission or reception of such services.]

SEC. 217. PARTICIPATION OF PRIVATE SCHOOL CHILDREN.

  (a) Participation on Equitable Basis.--
          (1) In general.--To the extent consistent with the 
        number of children in the school district of a local 
        educational agency that is eligible to receive funds 
        under this Act, or that serves the area in which a 
        program assisted under this Act is located, who are 
        enrolled in private nonprofit elementary schools and 
        secondary schools, or, with respect to instructional or 
        personnel training programs funded by an eligible 
        agency, the local educational agency, after 
        consultation with appropriate private school 
        officials--
                  (A) shall provide, on an equitable basis and 
                as may be necessary, for the benefit of such 
                children in such schools, secular, neutral, and 
                nonideological services (or other benefits), 
                materials, and equipment, including the 
                participation of the teachers of such children 
                (and other educational personnel serving such 
                children) in training programs; or
                  (B) if such services, materials, and 
                equipment are not feasible or necessary in one 
                or more such private schools (as determined by 
                the local educational agency after consultation 
                with the appropriate private school officials), 
                shall provide such other arrangements as will 
                assure equitable participation of such children 
                in the purposes and benefits of this Act.
          (2) Application of requirements.--The requirements of 
        this section relating to the participation of children, 
        teachers, and other personnel serving such children 
        shall apply to programs carried out under this Act by 
        an eligible agency or local educational agency, whether 
        directly or through grants to, or contracts with, other 
        public or private agencies, institutions, or 
        organizations.
  (b) Equal Expenditures.--
          (1) In general.--Expenditures for programs under 
        subsection (a) shall be equal (consistent with the 
        number of children to be served) to expenditures for 
        programs under this Act for children enrolled in the 
        public schools of the local educational agency.
          (2) Concentrated programs.--When funds available to a 
        local educational agency under this Act are used to 
        concentrate programs on a particular group, attendance 
        area, or grade or age level, the local educational 
        agency shall, after consultation with the appropriate 
        private school officials, assure the equitable 
        participation in both the purposes and benefits of such 
        programs for children enrolled in private schools who 
        are included within the group, attendance area, or 
        grade or age level selected for such concentration 
        shall, taking into account the needs of the individual 
        children and other factors that relate to the 
        expenditures referred to in paragraph (1).
  (c) Administrative Requirements.--
          (1) Funds, materials and equipment.--
                  (A) Funds.--The control of funds expended 
                under this section shall be administered by a 
                public agency.
                  (B) Materials and equipment.--The title to 
                materials and equipment provided under this 
                section, shall remain with a public agency for 
                the uses and purposes provided in this Act
          (2) Provision of services.--Services provided under 
        this Act shall be provided by employees of a public 
        agency or through contract by such a public agency with 
        a person, association, agency, organization, 
        institution or corporation that, in the provision of 
        such services, is independent of the private school and 
        of any religious organizations, and such employment or 
        contract shall be under the control and supervision of 
        such a public agency. The funds utilized under this 
        section shall not be commingled with State or local 
        funds.
          (3) Timing and content of consultation.--The 
        consultation required under this section shall include 
        meetings of agency and private school officials and 
        shall occur before the eligible agency and local 
        educational agency makes any decision that affects the 
        opportunities of eligible private school children to 
        participate in programs under this Act. Such meetings 
        shall include a discussion of service delivery 
        mechanisms (including third party contractors) and 
        shall continue throughout implementation and assessment 
        of services under this Act.
  (d) Waiver and Bypass Procedures.--
          (1) State prohibition.--If an eligible agency or 
        local educational agency is prohibited, by reason of 
        any provision of law, from providing for the 
        participation in programs of children enrolled in 
        private elementary schools and secondary schools as 
        required by subsections (a) through (c), the Secretary 
        shall waive such requirements for the agency involved 
        and shall arrange for the provision of services to such 
        children through arrangements that shall be subject to 
        the requirements of this section.
          (2) Failure to comply.--If the Secretary determines 
        that an eligible agency or a local educational agency 
        has substantially failed, or is unwilling, to provide 
        for the participation on an equitable basis of children 
        enrolled in private elementary schools and secondary 
        schools as required by subsections (a) through (c), the 
        Secretary may waive such requirements and shall arrange 
        for the provision of services to such children through 
        arrangements that shall be subject to the requirements 
        of this section.
          (3) Payment from state allotment.--When the Secretary 
        arranges for services under this subsection, the 
        Secretary shall, after consultation with the 
        appropriate public school and private school officials, 
        pay the cost of such services, including the 
        administrative costs of arranging for those services, 
        from the appropriate allotment of the eligible agency 
        under this Act.
          (4) Duration of determination.--Any determination by 
        the Secretary under this section shall continue in 
        effect until the Secretary determines that there will 
        no longer be any failure or inability on the Act of the 
        eligible agency or local educational agency to meet the 
        requirements of subsections (a) through (c).
          (5) Review of determination.--The Secretary shall not 
        take any final action under this section until the 
        eligible agency and the local educational agency 
        affected by such action have had an opportunity, for 
        not less than 45 days after receiving written notice 
        thereof, to submit written objections and to appear 
        before the Secretary or the Secretary's designee to 
        show cause why that action should not be taken.
  (e) Withholding of Allotment or Allocation.--Pending final 
resolution of any investigation or complaint that could result 
in a waiver under subsection (d)(1) or (d)(2), the Secretary 
may withhold from the allotment or allocation of the affected 
eligible agency or local educational agency the amount 
estimated by the Secretary to be necessary to pay the cost of 
services to be provided by the Secretary under such subsection.
  (f) Prior Determination.--Any bypass determination by the 
Secretary under Title I or Title IX of the Elementary and 
Secondary Education Act of 1965 shall, to the extent consistent 
with the purposes of this Act, apply to programs under this Act 
until such determinations terminate or expire.

SEC. [318] 218. PARTICIPATION OF PRIVATE SCHOOL PERSONNEL.

  An eligible agency or eligible recipient that uses funds 
under this Act for inservice and preservice vocational and 
technical education professional development programs for 
vocational and technical education teachers, administrators, 
and other personnel may, upon request, permit the participation 
in such programs of vocational and technical education 
teachers, administrators, and other personnel in nonprofit 
private schools offering vocational and technical education 
programs located in the geographical area served by such agency 
or recipient.

                PART B--STATE ADMINISTRATIVE PROVISIONS

SEC. [321] 221. JOINT FUNDING.

  (a) General Authority.--Funds made available to eligible 
agencies under this Act may be used to provide additional funds 
under an applicable program if--
          (1) such program otherwise meets the requirements of 
        this Act and the requirements of the applicable 
        program;

           *       *       *       *       *       *       *


SEC. [322] 222. PROHIBITION ON USE OF FUNDS TO INDUCE OUT-OF-STATE 
                    RELOCATION OF BUSINESSES.

  No funds provided under this Act shall be used for the 
purpose of directly providing incentives or inducements to an 
employer to relocate a business enterprise from one State to 
another State if such relocation will result in a reduction in 
the number of jobs available in the State where the business 
enterprise is located before such incentives or inducements are 
offered.

SEC. [323] 223. STATE ADMINISTRATIVE COSTS.

  (a) General Rule.--Except as provided in subsection (b), for 
each fiscal year for which an eligible agency receives 
assistance under this Act, the eligible agency shall provide, 
from non-Federal sources for the costs the eligible agency 
incurs for the administration of programs under this Act an 
amount that is not less than the amount provided by the 
eligible agency from non-Federal sources for such costs for the 
preceding fiscal year.
  (b) Exception.--If the amount made available for 
administration of programs under this Act for a fiscal year is 
less than the amount made available for administration of 
programs under this Act for the preceding fiscal year, the 
amount the eligible agency is required to provide from non-
Federal sources for costs the eligible agency incurs for 
administration of programs under this Act shall be the same 
percentage as the amount made available for administration of 
programs under this Act.

SEC. [324] 224. LIMITATION ON FEDERAL REGULATIONS.

  The Secretary may issue regulations under this Act only to 
the extent necessary to administer and ensure compliance with 
the specific requirements of this Act.

SEC. [325] 225. STUDENT ASSISTANCE AND OTHER FEDERAL PROGRAMS.

  (a) Attendance Costs Not Treated as Income or Resources.--The 
portion of any student financial assistance received under this 
Act that is made available for attendance costs described in 
subsection (b) shall not be considered as income or resources 
in determining eligibility for assistance under any other 
program funded in whole or in part with Federal funds.

           *       *       *       *       *       *       *


                            ADDITIONAL VIEWS

    Committee Democrats view Federal support for vocational and 
technical education as a critical means of ensuring that our 
workforce is well trained for the jobs of the present and the 
future. Vocational and technical education programs funded 
under the Carl D. Perkins Vocational and Technical Education 
Act provide the training and skills for high school and 
community college students to prepare for post-secondary 
education and employment and to ensure their future financial 
success.
    While we supported H.R. 4496, we believe it is unfortunate 
that President Bush has attempted to undermine this program 
through proposals for massive spending cuts totaling nearly 
$700 million since he took office. We have lost 1.7 million 
private sector jobs since the start of the Bush Administration. 
Hundreds of thousands of American jobs have been outsourced to 
other countries. The Bush Administration's response has been to 
cut funding for vocational and technical education. Rather than 
shortchange our students and workers, we need to invest in 
them.
    Outsourcing has been one of the most persistent problems 
for the American worker. Representatives Holt and Wu offered an 
amendment intended to stem the tide of outsourcing American 
manufacturing jobs. Specifically, the amendment would establish 
a federal fund for local programs that seek to give American 
manufacturing workers additional skills and educational 
training. These funds would be used to provide competitive 
grants to states with high levels of unemployment in the 
manufacturing sector. States would then offer grants on a 
competitive basis to local consortiums of K-12 schools, 
institutions of higher education, advanced manufacturing 
industries, and employer and labor organizations. Each grant 
recipient would conduct a needs analysis of their local 
workforce, and provide training to individuals seeking to work 
in advanced manufacturing vocations. Unfortunately, the 
amendment was defeated in committee on a party line vote.
    The amendment offered by Chairman Boehner will not provide 
any new funding or collaboration for advanced manufacturing 
education. Without properly addressing this issue American 
workers and their employers will not be prepared to compete in 
the global economy. The majority's amendment will do nothing to 
stop the outsourcing of jobs and stubbornly high unemployment 
rates. As jobs go overseas and plants close, American workers 
need the proper education and training to give them the skills 
to work in advanced manufacturing industries.
    In addition, the Committee Republicans rejected Democratic 
attempts to authorize President Bush's new $250 million program 
to improve job training at community colleges. Representative 
Kind offered an amendment to establish the very program which 
President Bush proposed in his FY 2005 Budget last February. 
Rather than use this as an opportunity to reinforce the 
leadership role that many of our community colleges provide, 
Republicans, on a party-line vote, rejected President Bush's 
proposal.
    Also, the Committee bill does not adequately respond to the 
needs of those in correctional institutions, or ex-offenders. 
In 1998, this Committee voted along party lines to decrease the 
funds available to states for vocational and technical 
education in correctional institutions and institutions that 
serve individuals with disabilities. We still believe these 
cuts were unwise, especially considering that there has been a 
10% increase in the number of individuals being released from 
correctional institutions and re-entering communities. This 
number will continue to rise. It is estimated that 600,000 
individuals will be re-entering communities across the country 
each year. Representative Danny Davis (D-IL) offered an 
amendment to allow States to use up to 3% of their State 
Leadership funds, an increase of 2% over current law. This 
amendment was defeated along party lines.
    The availability of vocational and technical education 
programs in correctional institutions has a direct impact on 
public safety. The Department of Justice reported that 62% of 
individuals released from state prisons will be re-arrested 
within three years and 40% will be re-incarcerated. Due to the 
low education level of the ex-offender population, additional 
teaching and job training is needed to ensure success rather 
than failure and to decrease the likelihood that an individual 
will re-offend. Correctional institutions should have the tools 
and the flexibility they need to prepare formerly incarcerated 
individuals for return to society. It is unfortunate that the 
Majority is unwilling to provide this flexibility as an 
investment in public safety.
    Representative Hinojosa proposed an amendment allowing the 
use of Perkins funds for Graduation and Career Plans, but 
withdrew it after the Majority said it would not support the 
amendment.
    The bill does not adequately address the increasing rate of 
high school dropouts. Roughly 30 percent of all students who 
should be earning high school diplomas are not and the rate for 
African American and Hispanic students is dire. The amendment 
would help ensure that high school students graduate prepared 
for postsecondary education and the workplace.
    The record of the subcommittee hearing supports the 
Hinojosa amendment. For example, Roberta White, Ph.D., 
President and CEO, Great Oaks Institute of Technology and 
Career Development testified in support of career plans:

          Our third significant improvement is an 
        individualized Academic Plan for each student. For a 
        successful education, we are customizing each student's 
        career path, constantly measuring student progress, and 
        providing counseling and other support services. 
        Perkins funding is extremely helpful in enabling us to 
        meet students' needs for career counseling and other 
        support services. Starting with the coming year, 
        students, parents, teachers and counselors will agree 
        on a plan that outlines what that student needs to 
        graduate and continue on a specific career path. It is 
        the optimum way to ensure that students receive the 
        education they need to continue on to a productive 
        career.

(Hearing on ``Examining Success in Vocational Education,'' 
April 27, 2004).
    During the June 23rd hearing on ``No Child Left Behind: 
Raising Achievement in America's Big City Schools'', Dr. Marcus 
Newsome, superintendent of Newport News County Public Schools, 
told the Committee that Newport News reduced the percentage of 
seniors at risk of not graduating from 30 percent to 1 percent 
by instituting individualized academic plans to lead to 
graduation.
    National advocates who support including graduation and 
career plans in the Perkins reauthorization include, The 
Alliance for Excellent Education, America's Career Resource 
Network, Association for Career and Technical Education, 
Learning Disabilities Association of America, American School 
Counselor Association, National Association of State Directors 
of Career Technical, Education Consortium, National Association 
of State Directors of Special Education, National Education 
Association, Project Lead the Way, The Hispanic Education 
Coalition.
    We urge the Majority to include the Hinojosa amendment.
    Lastly, Democrats remain concerned about the consolidation 
of the Tech Prep program funding into the Basic State Grant. 
While we agree that the program faced challenges with 
implementation, we contend that the flaw in implementation 
throughout the country is due mainly to the inadequacy of the 
definition of Tech Prep in current law and the lack of program 
quality controls. H.R. 4496 requires each state to set-aside 
the same level of funding for Tech Prep as was allocated in FY 
04 and requires local recipients to use those funds for Tech-
Prep like activities. It is unclear whether the changes in H.R. 
4496 will lead to any substantive improvements to the Tech Prep 
program. Representative Tierney offered an amendment to restore 
the Tech Prep program as a separate program. The amendment 
received bipartisan support but did not pass. Democrats support 
additional oversight of the Tech Prep program at the state and 
federal level upon reauthorization of the Perkins Act.

                                   George Miller.
                                   Timothy Bishop.
                                   Rush Holt.
                                    Raul M. Grijalva.
                                   Dennis J. Kucinich.
                                   Chris Van Hollen.
                                   Betty McCollum.
                                   Carolyn McCarthy.
                                   Danny K. Davis.
                                   Denise L. Majette.
                                   Ruben Hinojosa.
                                   Lynn Woolsey.
                                   Robert C. Andrews.
                                   Donald M. Payne.
                                   Ron Kind.
                                   Dale E. Kildee.
                                   John F. Tierney.
                                   Major R. Owens.
                                   Tim Ryan.
                                   David Wu.
                                   Susan A. Davis.
                                   Ed Case.

                                  
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