SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Career And Technical Innovation Fund 
Act of 2012''.

SEC. 2. CAREER AND TECHNICAL INNOVATION FUND.

    (a) In General.--The Carl D. Perkins Career and Technical Education 
Act of 2006 (20 U.S.C. 2301 et seq.) is amended by adding at the end 
the following:

            ``TITLE IV--CAREER AND TECHNICAL INNOVATION FUND

``SEC. 401. PURPOSES.

    ``The purposes of this title are to strengthen the ability of 
career and technical education programs to prepare students to meet the 
needs of the future workforce by--
            ``(1) funding the identification, development, evaluation, 
        and expansion of new and innovative, research- and evidence-
        based career and technical education practices, programs, and 
        strategies in order to--
                    ``(A) significantly increase student achievement on 
                the core indicators of performance as outlined in 
                section 113;
                    ``(B) reduce gaps in program participation and 
                completion rates among populations of career and 
                technical education students; and
                    ``(C) improve the effectiveness of career and 
                technical education teachers, leaders, and counselors;
            ``(2) funding the development of innovative career and 
        technical programs of study, as described in section 
        122(c)(1)(A), in new and emerging industries at the regional 
        (or local) level;
            ``(3) developing rigorous evidence of the effectiveness of 
        innovative strategies on career and technical education student 
        outcomes and career and technical education program outcomes; 
        and
            ``(4) supporting the rapid development, expansion, 
        adoption, and implementation of tools and resources that 
        improve the efficiency, effectiveness, or pace of adoption of 
        such career and technical education practices, programs, and 
        strategies.

``SEC. 402. NATIONAL ACTIVITIES.

    ``The Secretary may reserve not more than 5 percent of funds 
appropriated to carry out this title for any fiscal year to carry out 
activities of national significance. Such activities shall include--
            ``(1) capacity building;
            ``(2) technical assistance;
            ``(3) evaluation; and
            ``(4) dissemination of best practices developed with grant 
        funds provided under this title.

``SEC. 403. PROGRAM AUTHORIZED; LENGTH OF GRANTS; PRIORITIES.

    ``(a) Program Authorization.--
            ``(1) In general.--The Secretary shall use funds made 
        available to carry out this title for a fiscal year to award 
        grants, on a competitive basis, to eligible entities.
            ``(2) Eligible entity.--
                    ``(A) In general.--In this title, the term 
                `eligible entity' means a group or consortium that 
                includes not less than 2 of the following (at least 1 
                of which shall be an entity described in clause (i), 
                (ii), (iii), or (iv)):
                            ``(i) A local educational agency or a 
                        consortium of such agencies.
                            ``(ii) An area career and technical 
                        education school or a consortium of such 
                        schools.
                            ``(iii) An institution of higher education 
                        whose most common degree awarded is an 
                        associate's degree, or a consortium of such 
                        institutions.
                            ``(iv) A postsecondary vocational 
                        institution, as defined in section 102(c) of 
                        the Higher Education Act of 1965, or a 
                        consortium of such institutions.
                            ``(v) An entity that carries out 
                        apprenticeship programs registered under the 
                        Act of August 16, 1937 (commonly known as the 
                        National Apprenticeship Act (29 U.S.C. 50 et 
                        seq; 50 Stat. 664, chapter 663)).
                            ``(vi) An institution of higher education 
                        whose most common degree awarded is a 
                        bachelor's or higher degree, or a consortium of 
                        such institutions.
                            ``(vii) A business or industry 
                        representative partner that provides training.
                    ``(B) Other partners.--An eligible entity may also 
                include a State board or local board (as such terms are 
                defined in section 101 of the Workforce Investment Act 
                of 1998 (29 U.S.C. 2801)), an eligible agency, a 
                community-based organization, a nonprofit organization, 
                or other business or industry representative.
                    ``(C) Record of success.--In order to be eligible 
                to receive a grant under this title, at least 1 of the 
                members of the eligible entity shall have a recent 
                record of success in improving career and technical 
                education outcomes, career and technical education 
                program outcomes, or both, in the area addressed in the 
                application.
    ``(b) Duration of Grants.--The Secretary--
            ``(1) shall award grants under this title for a period of 
        not more than 3 years; and
            ``(2) may extend such grants for not more than an 
        additional 2-year period if the grantee demonstrates to the 
        Secretary that it is achieving its program objectives and, as 
        applicable, has improved education outcomes for career and 
        technical education students.
    ``(c) Rural Set-Aside.--The Secretary shall ensure that not less 
than 22 percent of the funds awarded under subsection (a) for any 
fiscal year are for projects that meet the following requirements, 
except that the Secretary shall not be required to make such awards 
unless a sufficient number of otherwise eligible high-quality 
applications are received:
            ``(1) Eligible entities that include local educational 
        agencies.--If the eligible entity includes a local educational 
        agency or a consortium of such agencies, both of the following 
        requirements shall be met:
                    ``(A) The eligible entity includes--
                            ``(i) a local educational agency with an 
                        urban-centric district locale code of 32, 33, 
                        41, 42, or 43, as determined by the Secretary;
                            ``(ii) a consortium of such local 
                        educational agencies; or
                            ``(iii) an educational service agency or a 
                        nonprofit organization with demonstrated 
                        expertise in serving students from rural areas.
                    ``(B) A majority of the schools to be served by the 
                project are designated with a school locale code of 41, 
                42, or 43, or a combination of such codes, as 
                determined by the Secretary, and--
                            ``(i) are served by a local educational 
                        agency serving a geographic area in which 20 
                        percent or more of the children 5 through 17 
                        years of age are from families with incomes 
                        below the poverty level;
                            ``(ii) are served by a local educational 
                        agency in which the total number of students in 
                        average daily attendance at all of the schools 
                        served by the local educational agency is fewer 
                        than 600; or
                            ``(iii) are served by a local educational 
                        agency located in a county that has a total 
                        population density of fewer than 10 persons per 
                        square mile.
            ``(2) Eligible entities that do not include local 
        educational agencies.--If the eligible entity does not include 
        a local educational agency or a consortium of such agencies, 
        the eligible entity shall demonstrate that it will serve 
        individuals--
                    ``(A) at least 20 percent of whom are from families 
                with incomes below the poverty level;
                    ``(B) who reside in an area served by a local 
                educational agency in which the total number of 
                students in average daily attendance at all of the 
                schools served by the local educational agency is fewer 
                than 600; or
                    ``(C) who reside in a county that has a total 
                population density of fewer than 10 persons per square 
                mile.
    ``(d) Standards of Evidence.--An eligible entity that desires a 
grant under this title shall demonstrate that the activities the entity 
proposes to carry out with funds under this title are likely to succeed 
in improving student outcomes. Evidence shall include a rationale based 
on research findings or a reasonable hypothesis that the activities 
proposed by the eligible entity will improve student outcomes.

``SEC. 404. APPLICATIONS.

    ``Each eligible entity that desires to receive a grant under this 
title shall submit an application to the Secretary at such time, in 
such manner, and containing such information as the Secretary may 
reasonably require. At a minimum, each application shall--
            ``(1) describe the project for which the applicant is 
        seeking a grant and how the evidence supporting that project 
        meets the standards of evidence, as described in section 
        403(d);
            ``(2) describe how the applicant will address at least 1 of 
        the areas described in section 405(a)(1);
            ``(3) describe how the project will support the goal of 
        innovation as outlined in the purposes of this title;
            ``(4) provide an estimate of the number of students that 
        the applicant plans to serve under the proposed project, 
        including the percentage of those students who are from special 
        populations;
            ``(5) describe the applicant's plan for continuing the 
        proposed project after funding under this title ends;
            ``(6) describe the applicant's partnership and 
        communication with business, industry, and labor, as 
        appropriate;
            ``(7) provide evidence of the eligible entity's ability to 
        carry out the project, which may include information on other 
        successful efforts to increase student achievement;
            ``(8) provide a description of the applicant's plan for 
        independently evaluating the effectiveness of activities 
        carried out with funds under this title;
            ``(9) provide an assurance that the applicant will--
                    ``(A) cooperate with evaluations, as requested by 
                the Secretary;
                    ``(B) make data available to third parties for 
                validation and further study, in accordance with 
                applicable data privacy laws, including section 444 of 
                the General Education Provisions Act (20 U.S.C. 1232g, 
                commonly known as the `Family Educational Rights and 
                Privacy Act of 1974');
                    ``(C) participate in communities of practice; and
                    ``(D) disseminate information about project 
                activities;
            ``(10) provide a description of how the innovative project 
        will support and coordinate with any funds received by project 
        partners under title I, and with the activities outlined in 
        State and local plans under title I; and
            ``(11) include an assurance from the applicable eligible 
        agency that the project is aligned with State goals.

``SEC. 405. USES OF FUNDS.

    ``(a) Uses of Funds.--
            ``(1) In general.--Each eligible entity that receives a 
        grant under this title shall use the grant funds to carry out 1 
        or more of the following activities:
                    ``(A) Designing and implementing programs of study 
                aligned to labor market needs in new or emerging 
                industries or occupations.
                    ``(B) More seamlessly integrating academic and 
                career and technical education components through new 
                or improved education delivery models.
                    ``(C) Implementing new assessment systems within 
                career and technical education programs that measure 
                career readiness skills for students, particularly 
                focusing on measures of employability skills and 
                industry-recognized credentials.
                    ``(D) Incorporating new and emerging workforce 
                skills into current career and technical education 
                curriculum to ensure all programs are aligned to 
                industry needs.
                    ``(E) Ensuring students have access to up-to-date 
                career pathway and labor market information through new 
                or expanded comprehensive career education programs 
                that link to existing labor market data.
                    ``(F) Developing new programs to help students 
                transition from secondary education to postsecondary 
                education, or from completion of one postsecondary 
                program to another postsecondary program awarding a 
                higher-level credential.
                    ``(G) Increasing the use of technology within 
                career and technical education programs.
                    ``(H) Redesigning current programs through the 
                comprehensive use of innovative delivery models, 
                curriculum, professional development, and other key 
                elements.
                    ``(I) Designing programs specifically targeted to 
                disadvantaged populations, such as high school dropouts 
                or dislocated workers.
                    ``(J) Incorporating comprehensive work-based 
                learning programs into the programs of study described 
                in subparagraph (A).
            ``(2) Additional uses of funds.--In addition to the 
        activities described in paragraph (1), each eligible entity 
        that receives a grant under this title may use the grant 
        funds--
                    ``(A) to improve the effectiveness of career and 
                technical education teachers, administrators, or 
                counselors through innovative recruitment, retention, 
                or professional development efforts; and
                    ``(B) for an independent evaluation of the 
                innovative practices carried out with the grant.
    ``(b) Authority to Subgrant.--
            ``(1) In general.--If an eligible entity that receives a 
        grant under this title includes a member that is a nonprofit 
        organization, such nonprofit organization may use the grant 
        funds to award subgrants to other entities to provide support 
        to 1 or more schools or local educational agencies.
            ``(2) Compliance with requirements of grantees.--Each 
        entity awarded a subgrant under paragraph (1) shall comply with 
        the requirements of this title relating to grantees, as 
        appropriate.

``SEC. 406. PERFORMANCE MEASURES.

    ``The Secretary shall establish performance measures for the 
programs and activities carried out under this title. These measures, 
at a minimum, shall track the grantee's progress in improving outcomes 
for each subgroup of students included in the definition of special 
populations that is served by the grantee, including, as applicable, 
by--
            ``(1) each of the core indicators of performance, as 
        outlined in section 113;
            ``(2) improving career and technical education teacher and 
        school leader effectiveness; or
            ``(3) any other indicator as the grantee may determine 
        relative to the specific project proposed.

``SEC. 407. REPORTING.

    ``Each eligible entity that receives a grant under this title shall 
submit to the Secretary, at such time and in such manner as the 
Secretary may require, an annual report that includes information on 
the entity's progress on the performance measures established under 
section 406, and the data supporting such progress.

``SEC. 408. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
such sums as may be necessary for each of the fiscal years 2013 through 
2017.''.
    (b) Table of Contents.--The table of contents in section 1(b) of 
the Carl D. Perkins Career and Technical Education Act of 2006 is 
amended by inserting after the item relating to section 324 the 
following:

            ``TITLE IV--CAREER AND TECHNICAL INNOVATION FUND

``Sec. 401. Purposes.
``Sec. 402. National activities.
``Sec. 403. Program authorized; length of grants; priorities.
``Sec. 404. Applications.
``Sec. 405. Uses of funds.
``Sec. 406. Performance measures.
``Sec. 407. Reporting.
``Sec. 408. Authorization of appropriations.''.
Career And Technical Innovation Fund Act of 2012 - Amends the Carl D. Perkins Career and Technical Education Act of 2006 to authorize the Secretary of Education to reserve a specified amount of funds appropriated for FY2013-FY2017 for certain activities of national significance, including: (1) capacity building, (2) technical assistance, (3) evaluation, and (4) dissemination of best practices.

Directs the Secretary to award competitive grants, for a period of three years, to local educational agencies, area career and technical education schools, postsecondary vocational institutions and institutions of higher education, entities that carry out apprenticeship programs, and other partners to carry out specified programs and activities that meet certain performance standards to improve the effectiveness of career and technical education programs and teachers as well as increase student achievement to meet the needs of the future workforce.

Requires the Secretary to set aside a specified amount of funds awarded to eligible entities for any fiscal year for projects to improve student outcomes in rural areas.

Prescribes grant eligibility requirements.
A bill to amend the Carl D. Perkins Career and Technical Education Act of 2006 to establish a career and technical innovation fund.