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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1567 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1567

  To amend title II of the Elementary and Secondary Education Act of 
                     1965, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 15, 2011

Mr. Alexander (for himself, Mr. Isakson, Mr. Kirk, Mr. Roberts, and Mr. 
    Wicker) introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

 
  To amend title II of the Elementary and Secondary Education Act of 
                     1965, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Teacher and Principal Improvement 
Act''.

SEC. 2. HIGH-QUALITY TEACHERS AND PRINCIPALS.

    The Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 
et seq.) is amended--
            (1) by redesignating subpart 5 of part C of title II as 
        subpart 3 of part E of title IX and moving that subpart to the 
        end of part E of title IX;
            (2) by redesignating sections 2361 through 2368 as sections 
        9541 through 9548, respectively;
            (3) by striking the subpart heading of subpart 3 of part E 
        of title IX, as redesignated by paragraph (1), and inserting 
        the following:

              ``Subpart 3--Teacher Liability Protection'';

            (4) in section 9546, as redesignated by paragraph (2), in 
        subsection (b), by striking the matter following paragraph (2) 
        and inserting the following:
            ``(3) A State law that makes a limitation of liability 
        inapplicable if the civil action was brought by an officer of a 
        State or local government pursuant to State or local law.'';
            (5) by redesignating subpart 4 of part D of title II as 
        subpart 4 of part E of title IX and moving that subpart to the 
        end of part E of title IX;
            (6) by redesignating section 2441 as section 9551;
            (7) by striking the subpart heading of subpart 4 of title 
        IX, as redesignated by paragraph (5), and inserting the 
        following:

                    ``Subpart 4--Internet Safety'';

        and
            (8) by striking title II and inserting the following:

 ``TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH-QUALITY TEACHERS 
                             AND PRINCIPALS

``SEC. 2001. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Grants to States and Local Educational Agencies.--There are 
authorized to be appropriated to carry out this title $3,285,993,842 
for each of fiscal years 2012 through 2016.
    ``(b) National Activities.--From amounts appropriated under 
subsection (a) for each fiscal year, the Secretary shall reserve not 
more than 5 percent to carry out activities authorized under subpart 4 
of part A.
    ``(c) Teacher Incentive Fund.--From amounts appropriated under 
subsection (a) for each fiscal year that remain after making the 
reservation under subsection (b), the Secretary shall reserve not less 
than 20 percent to carry out activities authorized under part B.

     ``PART A--TEACHER AND PRINCIPAL TRAINING AND RECRUITMENT FUND

``SEC. 2101. PURPOSE.

    ``The purpose of this part is to improve student academic 
achievement by improving teacher and principal quality and 
effectiveness and increasing the number of teachers and principals who 
are effective in improving student academic achievement in schools.

``SEC. 2102. DEFINITIONS.

    ``In this title:
            ``(1) Core academic subjects.--The term `core academic 
        subjects' means English, reading or language arts, writing, 
        science, technology, engineering, mathematics, foreign 
        languages, civics and government, economics, arts, history, and 
        geography.
            ``(2) State.--The term `State' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of Puerto Rico.

                     ``Subpart 1--Grants to States

``SEC. 2111. ALLOTMENTS TO STATES.

    ``(a) In General.--The Secretary shall make grants to States with 
applications approved under section 2112 to pay for the Federal share 
of the cost of carrying out the activities specified in section 2113. 
Each grant shall consist of the allotment determined for a State under 
subsection (b).
    ``(b) Determination of Allotments.--
            ``(1) Reservation of funds.--From the total amount 
        appropriated under section 2001(a) for a fiscal year, the 
        Secretary shall reserve--
                    ``(A) one-half of 1 percent for allotments for the 
                United States Virgin Islands, Guam, American Samoa, and 
                the Commonwealth of the Northern Mariana Islands, to be 
                distributed among those outlying areas on the basis of 
                their relative need, as determined by the Secretary, in 
                accordance with the purpose of this part; and
                    ``(B) one-half of 1 percent for the Secretary of 
                the Interior for programs under this part in schools 
                operated or funded by the Bureau of Indian Education.
            ``(2) State allotments.--
                    ``(A) In general.--Subject to subparagraph (B), 
                from the amount appropriated under section 2001(a) for 
                a fiscal year that remains after the Secretary makes 
                the reservations under paragraph (1), the Secretary 
                shall allot to each State with an approved application 
                for such fiscal year the sum of--
                            ``(i) an amount that bears the same 
                        relationship to 20 percent of the remaining 
                        amount as the number of individuals age 5 
                        through 17 in the State, as determined by the 
                        Secretary on the basis of the most recent 
                        satisfactory data, bears to the number of those 
                        individuals in all such States, as so 
                        determined; and
                            ``(ii) an amount that bears the same 
                        relationship to 80 percent of the remaining 
                        amount as the number of individuals age 5 
                        through 17 from families with incomes below the 
                        poverty line, in the State, as determined by 
                        the Secretary on the basis of the most recent 
                        satisfactory data, bears to the number of those 
                        individuals in all such States, as so 
                        determined.
                    ``(B) Exception.--No State receiving an allotment 
                under clause (A) may receive less than one-half of 1 
                percent of the total remaining amount allotted under 
                such subparagraph for a fiscal year.

``SEC. 2112. STATE APPLICATIONS.

    ``(a) In General.--For a State to be eligible to receive a grant 
under this part, the State educational agency shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may reasonably require.
    ``(b) Contents.--Each application submitted under this section 
shall include the following:
            ``(1) An assurance that the activities to be carried out by 
        the State educational agency under this subpart will be based 
        on a review of scientifically valid research and an explanation 
        of why the activities are expected to improve student academic 
        achievement.
            ``(2) An assurance that the State educational agency will 
        use funds under this part to improve the quality of the State's 
        teachers and principals.
            ``(3) An assurance that the State educational agency will 
        coordinate professional development activities authorized under 
        this part with professional development activities provided 
        under other Federal, State, and local programs.
            ``(4) An assurance that the State educational agency will 
        work in consultation with the entity responsible for teacher 
        professional standards, certification, and licensing, to ensure 
        that the State activities carried out under this subpart are 
        carried out in conjunction with the entity responsible for such 
        standards, certification, and licensing under State law.
            ``(5) An assurance that the State educational agency will 
        comply with section 9501 (regarding participation by private 
        school children and teachers).
            ``(6) A description of how the State educational agency 
        will use funds received under this title for State-level 
        activities described in section 2113(b).
    ``(c) Deemed Approval.--An application submitted by a State 
educational agency pursuant to subsection (a) shall be deemed to be 
approved by the Secretary unless the Secretary makes a written 
determination, prior to the expiration of the 120-day period beginning 
on the date on which the Secretary received the application, that the 
application fails to meet the requirements of this subpart.
    ``(d) Disapproval.--The Secretary shall not finally disapprove an 
application submitted under this section, except after giving the State 
educational agency notice and an opportunity for a hearing.
    ``(e) Notification.--If the Secretary finds that an application 
submitted under this section is not in compliance, in whole or in part, 
with this subpart, the Secretary shall--
            ``(1) give the State educational agency notice and an 
        opportunity for a hearing; and
            ``(2) notify the State educational agency of the finding of 
        noncompliance and, in such notification, shall--
                    ``(A) cite the specific provisions in the 
                application that are not in compliance; and
                    ``(B) request additional information, only as to 
                the noncompliant provisions, needed to make the 
                application compliant.
    ``(f) Response.--If the State educational agency responds to the 
Secretary's notification described in subsection (e)(2) during the 45-
day period beginning on the date on which the agency received the 
notification, and resubmits the application with the requested 
information described in subsection (e)(2)(B), the Secretary shall 
approve or disapprove such application prior to the later of--
            ``(1) the expiration of the 45-day period beginning on the 
        date on which the application is resubmitted; or
            ``(2) the expiration of the 120-day period described in 
        subsection (c).
    ``(g) Failure To Respond.--If the State educational agency does not 
respond to the Secretary's notification described in subsection (e)(2) 
during the 45-day period beginning on the date on which the agency 
received the notification, such application shall be deemed to be 
disapproved.

``SEC. 2113. STATE USE OF FUNDS.

    ``(a) In General.--A State that receives a grant under section 2111 
shall--
            ``(1) reserve 98.5 percent of the funds made available 
        through the grant to make subgrants to local educational 
        agencies as described in subpart 2; and
            ``(2) use the remainder of the funds for State activities 
        described in subsection (b).
    ``(b) State Activities.--The State educational agency for a State 
that receives a grant under section 2111 shall use the funds described 
in subsection (a)(2) to carry out 1 or more of the following 
activities, which may be carried out through a grant or contract with a 
for-profit or nonprofit entity:
            ``(1) Reforming teacher and principal certification or 
        licensing requirements to ensure that--
                    ``(A) teachers have the necessary subject matter 
                knowledge and teaching skills in the academic subjects 
                that the teachers teach to help students meet 
                challenging State standards;
                    ``(B) principals have the instructional leadership 
                skills to help teachers teach and to help students meet 
                challenging State standards; and
                    ``(C) teacher certification or licensing 
                requirements are aligned with challenging State 
                standards.
            ``(2) Developing or improving teacher and principal 
        evaluation systems that shall be based in significant part on 
        evidence of student achievement.
            ``(3) Carrying out programs that establish, expand, or 
        improve alternative routes for State certification of teachers 
        and principals, especially in the areas of mathematics and 
        science, for highly qualified individuals with a bachelor's or 
        master's degree, including mid-career professionals from other 
        occupations, paraprofessionals, former military personnel, and 
        recent college or university graduates with records of academic 
        distinction who demonstrate the potential to become highly 
        effective teachers or principals.
            ``(4) Developing and implementing mechanisms to assist 
        local educational agencies and schools in effectively 
        recruiting and retaining teachers and principals who are 
        effective in improving student academic achievement.
            ``(5) Reforming tenure systems.
            ``(6) Fulfilling the State educational agency's 
        responsibilities concerning proper and efficient administration 
        and monitoring of the programs carried out under this part, 
        including provision of technical assistance to local 
        educational agencies.
            ``(7) Developing, or assisting local educational agencies 
        in developing, performance-based pay systems, and strategies 
        that provide differential and bonus pay for teachers in high-
        need academic subjects and teachers or principals in high-
        poverty schools and districts.
            ``(8) Developing, or assisting local educational agencies 
        in developing, teacher advancement initiatives that promote 
        professional growth and emphasize multiple career paths and pay 
        differentiation.
            ``(9) Providing assistance to local educational agencies 
        for the development and implementation of professional 
        development programs for principals that enable the principals 
        to be effective school leaders and prepare all students to meet 
        challenging State academic content and student academic 
        achievement standards, and the development and support of 
        school leadership academies to develop educational leaders.
            ``(10) Other activities identified by the State that meet 
        the purpose of this part.
    ``(c) Supplement, Not Supplant.--Funds received under this subpart 
shall be used to supplement, and not supplant, non-Federal funds that 
would otherwise be used for activities authorized under this subpart.

          ``Subpart 2--Subgrants to Local Educational Agencies

``SEC. 2121. ALLOCATIONS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) In General.--The Secretary may make a grant to a State under 
subpart 1 only if the State educational agency agrees to distribute the 
funds described in section 2113(a)(1) as subgrants to local educational 
agencies under this subpart.
    ``(b) Allocation of Funds.--
            ``(1) In general.--A State educational agency that receives 
        a grant under this part shall use the funds described in 
        section 2113(a)(1) for a fiscal year to award subgrants to 
        local educational agencies from allocations described in 
        paragraph (2).
            ``(2) Allocation formula.--From the funds described in 
        paragraph (1), the State educational agency shall allocate to 
        each of the eligible local educational agencies in the State 
        for a fiscal year the sum of--
                    ``(A) an amount that bears the same relationship to 
                20 percent of the funds for such fiscal year as the 
                number of individuals age 5 through 17 in the 
                geographic area served by the agency, as determined by 
                the Secretary on the basis of the most recent 
                satisfactory data, bears to the number of those 
                individuals in the geographic areas served by all the 
                local educational agencies in the State, as so 
                determined; and
                    ``(B) an amount that bears the same relationship to 
                80 percent of the funds for such fiscal year as the 
                number of individuals age 5 through 17 from families 
                with incomes below the poverty line in the geographic 
                area served by the agency, as determined by the 
                Secretary on the basis of the most recent satisfactory 
                data, bears to the number of those individuals in the 
                geographic areas served by all the local educational 
                agencies in the State, as so determined.

``SEC. 2122. LOCAL APPLICATIONS AND NEEDS ASSESSMENT.

    ``(a) In General.--To be eligible to receive a subgrant under this 
subpart, a local educational agency shall submit an application to the 
State educational agency at such time, in such manner, and containing 
such information as the State educational agency may reasonably 
require.
    ``(b) Needs Assessment.--
            ``(1) In general.--To be eligible to receive a subgrant 
        under this subpart, a local educational agency shall conduct a 
        comprehensive needs assessment, based on student academic 
        achievement, identified by the local educational agency and 
        school staff, including--
                    ``(A) increasing the number of teachers and 
                principals who are effective in improving student 
                academic achievement;
                    ``(B) ensuring that low-income and minority 
                students are served by effective teachers and 
                principals and have access to a high-quality 
                instructional program in the core academic subjects;
                    ``(C) hiring, retention, and promotion;
                    ``(D) understanding and using data and assessments 
                to improve student learning and classroom practice;
                    ``(E) improving student behavior in the classroom 
                and school, including the identification of early and 
                appropriate interventions; and
                    ``(F) teaching students who are English language 
                learners and students with disabilities.
            ``(2) Consultation.--
                    ``(A) In general.--In conducting a needs assessment 
                as described in paragraph (1), a local educational 
                agency shall--
                            ``(i) involve teachers, principals, pupil 
                        services personnel, parents, community-based 
                        organizations, and others with relevant and 
                        demonstrated expertise in programs and 
                        activities designed to meet the purpose of this 
                        part; and
                            ``(ii) take into account the activities 
                        that need to be conducted in order to give 
                        teachers and principals the skills to provide 
                        students with the opportunity to meet 
                        challenging State standards.
                    ``(B) Continued consultation.--A local educational 
                agency shall consult with such individuals and 
                organizations described in subparagraph (A) on an 
                ongoing basis in order to--
                            ``(i) seek advice regarding how best to 
                        improve the local educational agency's 
                        activities to meet the purpose of this part; 
                        and
                            ``(ii) coordinate the local educational 
                        agency's activities under this part with other 
                        related strategies, programs, and activities 
                        being conducted in the community.
    ``(c) Contents.--Each application submitted under this section 
shall be based on the results of the needs assessment required under 
subsection (b) and shall include the following:
            ``(1) A description of the results of the comprehensive 
        needs assessment carried out under subsection (b).
            ``(2) A description of the activities to be carried out by 
        the local educational agency under this subpart and how these 
        activities will be aligned with State standards and 
        assessments.
            ``(3) A description of how the activities will be based on 
        a review of scientifically valid research and an explanation of 
        why the activities are expected to improve student academic 
        achievement.
            ``(4) A description of how the activities will have a 
        substantial, measurable, and positive impact on student 
        academic achievement and how the activities will be used as 
        part of a broader strategy to eliminate the achievement gap.
            ``(5) A description of the program activities to be 
        conducted in the schools served by the local educational 
        agency.
            ``(6) A description of the professional development 
        activities that will be made available to teachers and 
        principals to meet needs identified by the needs assessment 
        described in subsection (b).
            ``(7) A description of how the local educational agency 
        will support efforts to train teachers and principals to 
        effectively integrate technology into curricula and 
        instruction.
            ``(8) An assurance that the local educational agency will 
        comply with section 9501 (regarding participation by private 
        school children and teachers).
            ``(9) An assurance that the local educational agency will 
        target funds to schools served by the agency that are 
        identified under section 1114(a)(1)(B) and have the highest 
        percentage or number of children counted under section 1124(c).
            ``(10) An assurance that the local educational agency will 
        coordinate professional development activities authorized under 
        this subpart with professional development activities provided 
        through other Federal, State, and local programs.

``SEC. 2123. LOCAL USE OF FUNDS.

    ``(a) In General.--A local educational agency that receives a 
subgrant under section 2121 shall use the funds made available through 
the subgrant to carry out 1 or more of the following activities, which 
may be carried out through a grant or contract with a for-profit or 
nonprofit entity:
            ``(1) Meeting the needs identified in the needs assessment 
        described in 2122(b).
            ``(2) Developing or improving a rigorous, transparent, and 
        fair evaluation system for teachers and principals that shall 
        be based in significant part on evidence of student 
        achievement.
            ``(3) Developing and implementing initiatives to assist in 
        recruiting, hiring, and retaining effective teachers and 
        principals, particularly in high-poverty schools with high 
        percentages of ineffective teachers and high percentages of 
        students who do not meet State-determined proficient levels of 
        achievement in the core academic subjects, including 
        initiatives that provide--
                    ``(A) differential, incentive, or bonus pay for 
                teachers in high-need academic subject areas and 
                specialty areas;
                    ``(B) performance-based pay systems for teachers 
                and principals;
                    ``(C) teacher advancement, professional growth, and 
                emphasis on multiple career paths and pay 
                differentiation; and
                    ``(D) new teacher and principal induction and 
                mentoring programs that are designed to improve 
                instruction, student learning and achievement, and to 
                increase teacher and principal retention.
            ``(4) Recruiting qualified individuals from other fields, 
        including mid-career professionals from other occupations, 
        former military personnel, and recent graduates of an 
        institution of higher education with a record of academic 
        distinction who demonstrate potential to become effective 
        teachers or principals.
            ``(5) Establishing, improving, or expanding model 
        instructional programs in the core academic subjects to ensure 
        that all children receive a well-rounded and complete 
        education.
            ``(6) Providing high-quality professional development for 
        teachers and principals focused on improving teaching and 
        student learning and achievement in the core academic subjects, 
        including supporting efforts to train teachers and principals 
        to effectively integrate technology into curricula and 
        instruction.
            ``(7) Developing programs and activities that increase the 
        ability of teachers to effectively teach students with 
        disabilities, including students with significant cognitive 
        disabilities, which may include the use of response to 
        intervention and positive behavioral intervention and supports, 
        and students who are English language learners so that such 
        students can meet State academic content and student academic 
        achievement standards.
            ``(8) Providing students with increased access to up-to-
        date school library materials, a well-equipped, technologically 
        advanced school library media center, and well-trained 
        professionally certified school library media specialists.
            ``(9) Providing programs and activities to help students 
        prepare for postsecondary level coursework in the core academic 
        subjects, including early college or dual enrollment programs, 
        Advanced Placement and International Baccalaureate programs, 
        and other advanced learning programs, including programs to 
        meet the educational needs of gifted and talented students.
            ``(10) Providing programs that support extended learning 
        opportunities in the core academic subjects, including before 
        and after school programs, summer school programs, and programs 
        that extend the school day, week, or school-year calendar.
            ``(11) Carrying out other activities identified by the 
        local educational agencies that meet the purpose of this part.
    ``(b) Administrative Costs.--A local educational agency that 
receives a subgrant under section 2121 may use not more than 2 percent 
of the subgrant funds for the direct administrative costs of carrying 
out its responsibilities under this subpart.
    ``(c) Supplement, Not Supplant.--Funds received under this subpart 
shall be used to supplement, and not supplant, non-Federal funds that 
would otherwise be used for activities authorized under this subpart.

                      ``Subpart 3--Accountability

``SEC. 2141. REPORTING.

    ``(a) In General.--Each State educational agency receiving funds 
under this part shall submit to the Secretary a report that provides--
            ``(1) the number of teachers and principals in the State 
        who are licensed and certified;
            ``(2) the number of teachers in the State who are licensed 
        and certified to teach in their field of study;
            ``(3) the number of teachers and principals in the State 
        who have received emergency licensure;
            ``(4) the passage rate of teacher and principal licensure 
        examinations; and
            ``(5) if applicable, results of teacher and principal 
        evaluation systems.
    ``(b) Local Educational Agency Report.--Each local educational 
agency receiving funds under this subpart shall submit to the State 
educational agency such information that the State requires, which 
shall include the information listed in subsection (a).
    ``(c) Availability.--The reports and information provided under 
subsections (a) and (b) shall be made readily available to the public.

                    ``Subpart 4--National Activities

``SEC. 2151. NATIONAL ACTIVITIES OF DEMONSTRATED EFFECTIVENESS.

    ``(a) Technical Assistance and National Evaluation.--From the funds 
reserved by the Secretary under section 2001(b) to carry out this 
subpart, the Secretary may reserve not more than 20 percent to carry 
out directly or through grants and contracts--
            ``(1) technical assistance to States and local educational 
        agencies carrying out activities under this part; and
            ``(2) national evaluations of activities carried out by 
        States and local educational agencies under this part.
    ``(b) Programs of National Significance.--From the funds reserved 
by the Secretary under section 2001(b), the Secretary shall award 
grants, on a competitive basis, to national nonprofit organizations 
with a demonstrated record of meeting the purpose of this part for 
teacher or principal preparation and professional development 
activities and programs.
    ``(c) Cost-Sharing.--
            ``(1) In general.--A national nonprofit organization that 
        receives a grant under this section, shall provide, from non-
        Federal sources, not less than 50 percent of the funds for the 
        total cost for each year of activities carried out under this 
        section.
            ``(2) Acceptable contributions.--A national nonprofit 
        organization that receives a grant under this section may meet 
        the requirement of paragraph (1) by providing contributions in 
        cash or in kind, fairly evaluated, including plant, equipment, 
        and services.
            ``(3) Waivers.--The Secretary may waive or modify the 
        requirement of paragraph (1) in cases of demonstrated financial 
        hardship.

``SEC. 2152. PROHIBITION AGAINST FEDERAL MANDATES, DIRECTION, OR 
              CONTROL.

    ``Nothing in this part shall be construed to authorize the 
Secretary or any other officer or employee of the Federal Government to 
mandate, direct, control, or exercise any direction or supervision over 
a State, local educational agency, or school's instructional content or 
materials, curriculum, program of instruction, academic content and 
student academic achievement standards, or academic assessments.

                    ``PART B--TEACHER INCENTIVE FUND

``SEC. 2201. PURPOSES; DEFINITIONS.

    ``(a) Purposes.--The purposes of this part are--
            ``(1) to assist States, local educational agencies, and 
        nonprofit organizations to develop, implement, improve, or 
        expand comprehensive performance-based compensation systems for 
        teachers and principals, especially for teachers and principals 
        in high-need schools, who raise student academic achievement 
        and close the achievement gap; and
            ``(2) to study and review performance-based compensation 
        systems for teachers and principals to evaluate the 
        effectiveness, fairness, quality, consistency, and reliability 
        of the systems.
    ``(b) Definitions.--In this part:
            ``(1) Eligible entity.--The term `eligible entity' means--
                    ``(A) a local educational agency or a consortium of 
                local educational agencies, including a charter school 
                that is a local educational agency;
                    ``(B) a State educational agency, or other State 
                agency designated by the chief executive of a State to 
                participate under this part; or
                    ``(C) a partnership consisting of--
                            ``(i) one or more agencies described in 
                        subparagraph (A) or (B); and
                            ``(ii) at least 1 nonprofit or for-profit 
                        organization.
            ``(2) High-need local educational agency.--The term `high-
        need local educational agency' means a local educational 
        agency--
                    ``(A)(i) that serves not fewer than 10,000 children 
                from families with incomes below the poverty line; or
                    ``(ii) for which not less than 20 percent of the 
                children served by the agency are from families with 
                incomes below the poverty line; and
                    ``(B)(i) for which there is a high percentage of 
                teachers not teaching in the academic subjects or grade 
                levels that the teachers were trained to teach; or
                    ``(ii) for which there is a high percentage of 
                teachers with emergency, provisional, or temporary 
                certification or licensing.
            ``(3) High-need school.--The term `high-need school' means 
        a school that--
                    ``(A) is located in an area in which the percentage 
                of students from families with incomes below the 
                poverty line is 30 percent or more; or
                    ``(B)(i) has a high percentage of out-of-field 
                teachers;
                    ``(ii) is within the top quartile of elementary 
                schools and secondary schools statewide, as ranked by 
                the number of unfilled, available teaching positions at 
                the schools;
                    ``(iii) has a high teacher turnover rate; or
                    ``(iv) has a high percentage of teachers who are 
                not certified or licensed.
            ``(4) Performance-based compensation system.--The term 
        `performance-based compensation system' means a system of 
        compensation for teachers and principals that--
                    ``(A) differentiates levels of compensation 
                primarily on the basis of measurable increases in 
                student academic achievement; and
                    ``(B) may include--
                            ``(i) differentiated levels of compensation 
                        on the basis of effective teachers' and 
                        principals' employment and success in hard-to-
                        staff schools or high-need subject areas; and
                            ``(ii) recognition of the skills and 
                        knowledge of teachers and principals as 
                        demonstrated through--
                                    ``(I) successful fulfillment of 
                                additional responsibilities or job 
                                functions; and
                                    ``(II) evidence of high achievement 
                                and mastery of content knowledge and 
                                superior teaching skills.

``SEC. 2202. TEACHER INCENTIVE FUND GRANTS.

    ``(a) In General.--From the amounts appropriated to carry out this 
part, the Secretary is authorized to award grants, on a competitive 
basis, to eligible entities to enable the eligible agencies to develop, 
implement, improve, or expand a performance-based compensation system 
in a school served by a project under this part.
    ``(b) Priority.--In awarding a grant under this part, the Secretary 
shall give priority to an eligible entity that concentrates the 
activities proposed to be assisted under the grant on teachers and 
principals serving in high-need schools.
    ``(c) Applications.--To be eligible to receive a grant under this 
part, an eligible entity shall submit an application to the Secretary, 
at such time and in such manner as the Secretary may reasonably 
require. The application shall include--
            ``(1) a description of the performance-based compensation 
        system that the eligible entity proposes to develop, implement, 
        improve, or expand;
            ``(2) a description and evidence of the support and 
        commitment, from teachers and principals in the school to be 
        served by the project, the community, and the local educational 
        agency, for the performance-based compensation system, 
        including a demonstration of consultation with teachers and 
        principals on the development and implementation of the 
        performance-based compensation system;
            ``(3) a description of how the eligible entity will develop 
        and implement a fair, rigorous, and objective process to 
        evaluate teacher, principal, and student performance under the 
        project, including the baseline performance against which 
        evaluations of improved performance will be made;
            ``(4) a description of the local educational agency or 
        school to be served by the project, including such student 
        academic achievement, demographic, and socioeconomic 
        information as the Secretary may request;
            ``(5) a description of the quality of teachers and 
        principals in the local educational agency and the schools to 
        be served by the project and how the project will increase the 
        quality of teachers and principals in a high-need school;
            ``(6) a description of how the eligible entity will use 
        grant funds under this part in each year of the grant;
            ``(7) a description of how the eligible entity will 
        continue the performance-based compensation system assisted 
        under the grant after the grant ends;
            ``(8) a description, if applicable, of how the eligible 
        entity will define effective for the purposes of section 
        2201(b)(4)(B)(i), through the use of measurable indicators, 
        that are based in significant part on measures of student 
        academic achievement; and
            ``(9) a description of the State, local, or other public or 
        private funds that will be used to supplement the grant and 
        sustain the activities assisted under the grant at the end of 
        the grant period.
    ``(d) Use of Funds.--
            ``(1) In general.--An eligible entity that receives a grant 
        under this part shall use the grant funds to develop, 
        implement, improve, or expand, in collaboration with teachers, 
        principals, other school administrators, and members of the 
        public, a performance-based compensation system consistent with 
        this part.
            ``(2) Authorized activities.--Grant funds under this part 
        may be used for the following:
                    ``(A) Developing appraisal systems that reflect 
                clear and fair measures of teacher and principal 
                performance based on demonstrated improvements in 
                student academic achievement.
                    ``(B) Conducting outreach within a local 
                educational agency or a State to gain input on how to 
                construct the appraisal system and to develop support 
                for the appraisal system.
                    ``(C) Paying, as part of a comprehensive 
                performance-based compensation system, bonuses and 
                increased salaries, if the eligible entity uses an 
                increasing share of non-Federal funds to pay the 
                bonuses and increased salaries each year of the grant, 
                to--
                            ``(i) teachers and principals who raise 
                        student academic achievement;
                            ``(ii) teachers who--
                                    ``(I) raise student academic 
                                achievement; and
                                    ``(II)(aa) teach in high-need 
                                schools; or
                                    ``(bb) teach subjects that are 
                                difficult to staff; or
                            ``(iii) principals who raise student 
                        academic achievement in the school and serve in 
                        high-need schools.
    ``(e) Duration of Grants.--
            ``(1) In general.--The Secretary may award a grant under 
        this part for a period of not more than 5 years.
            ``(2) Limitation.--A local educational agency may receive 
        (whether individually or as part of a consortium or 
        partnership) a grant under this part only once.
    ``(f) Equitable Distribution.--To the extent practicable, the 
Secretary shall ensure an equitable geographic distribution of grants 
under this part.
    ``(g) Matching Requirement.--Each eligible entity that receives a 
grant under this part shall provide, from non-Federal sources, an 
amount equal to 50 percent of the amount of the grant (which may be 
provided in cash or in-kind) to carry out the activities supported by 
the grant.
    ``(h) Supplement, Not Supplement.--Grant funds provided under this 
part shall be used to supplement, not supplant, other Federal or State 
funds available to carry out activities described in this part.

``SEC. 2203. REPORTS AND EVALUATIONS.

    ``(a) Activities Summary.--Each eligible entity receiving a grant 
under this part shall provide to the Secretary a summary of the 
activities assisted under the grant.
    ``(b) Report.--The Secretary shall provide to Congress an annual 
report on the implementation of the program assisted under this part, 
including--
            ``(1) information on eligible entities that received grant 
        funds under this part, including--
                    ``(A) information provided by eligible entities to 
                the Secretary in the applications submitted under 
                section 2202(c);
                    ``(B) the summaries received under subsection (a); 
                and
                    ``(C) grant award amounts;
            ``(2) student academic achievement data; and
            ``(3) such other information as the Secretary may include.
    ``(c) Evaluation.--
            ``(1) In general.--The Secretary shall, through a grant or 
        contract, carry out an independent evaluation to measure the 
        effectiveness of the program assisted under this part.
            ``(2) Contents.--The evaluation under paragraph (1) shall 
        measure--
                    ``(A) the effectiveness of the program in improving 
                student academic achievement;
                    ``(B) the satisfaction of the participating 
                teachers or principals; and
                    ``(C) the extent to which the program assisted the 
                eligible entities in recruiting and retaining high-
                quality teachers and principals, especially in hard-to-
                staff subject areas.

``SEC. 2204. RESERVATION OF FUNDS.

    ``Of the total amount reserved under section 2001(c) for this part 
for a fiscal year, the Secretary may reserve for such fiscal year not 
more than 1 percent for the cost of the evaluation under section 
2203(c) and for technical assistance in carrying out this part.''.
                                 <all>
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