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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 940 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 940

     To provide grants to States to improve high schools and raise 
  graduation rates while ensuring rigorous standards, to develop and 
implement effective school models for struggling students and dropouts, 
and to improve State policies to raise graduation rates, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 14, 2013

 Mr. Udall of New Mexico introduced the following bill; which was read 
 twice and referred to the Committee on Health, Education, Labor, and 
                                Pensions

_______________________________________________________________________

                                 A BILL

 
     To provide grants to States to improve high schools and raise 
  graduation rates while ensuring rigorous standards, to develop and 
implement effective school models for struggling students and dropouts, 
and to improve State policies to raise graduation rates, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Graduation Promise 
Act of 2013''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
      TITLE I--HIGH SCHOOL IMPROVEMENT AND DROPOUT REDUCTION FUND

Sec. 101. Purposes.
Sec. 102. Definitions.
Sec. 103. Grants authorized.
Sec. 104. Secretarial peer review and approval.
Sec. 105. State plan to develop differentiated high school improvement 
                            system.
Sec. 106. Use of grant funds.
Sec. 107. Statewide differentiated high school improvement system.
Sec. 108. Subgrants to local educational agencies.
Sec. 109. Local educational agency implementation of school improvement 
                            system.
Sec. 110. School improvement activities.
Sec. 111. Evaluation and reporting.
Sec. 112. Authorization of appropriations.
            TITLE II--DEVELOPMENT OF EFFECTIVE SCHOOL MODELS

Sec. 201. Purposes.
Sec. 202. Definitions.
Sec. 203. Grants authorized.
Sec. 204. Application.
Sec. 205. Secretarial peer review and approval.
Sec. 206. Use of funds.
Sec. 207. Evaluation and reporting.
Sec. 208. Authorization of appropriations.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) In general.--The terms ``distance learning'', 
        ``educational service agency'', ``highly qualified'', ``local 
        educational agency'', ``outlying area'', ``secondary school'', 
        and ``State educational agency'' have the meanings given the 
        terms in section 9101 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 7801).
            (2) Graduation rate.--The term ``graduation rate'' has the 
        meaning given the term 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 clarified in section 200.19(b)(1) of 
        title 34, Code of Federal Regulations.
            (3) High school.--The term ``high school'' means a 
        secondary school in which the--
                    (A) entering grade of the school is not lower than 
                grade 7; and
                    (B) highest grade of the school is--
                            (i) grade 12; or
                            (ii) in the case of a secondary school 
                        approved by a State to issue a regular diploma 
                        concurrently with a postsecondary degree or 
                        with not more than 2 years' worth of 
                        postsecondary academic credit, grade 13.
            (4) Industry-recognized credential.--The term ``industry-
        recognized credential'' means a credential--
                    (A) that is sought or accepted by employers within 
                the industry or sector involved as a recognized, 
                preferred, or required credential for recruitment, 
                screening, hiring, retention, or advancement purposes;
                    (B) that, where appropriate, is endorsed by a 
                nationally recognized trade association or organization 
                representing a significant part of the industry or 
                sector; and
                    (C) earned from a program determined by the State 
                grantee to be a program of high quality.
            (5) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (7) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.

      TITLE I--HIGH SCHOOL IMPROVEMENT AND DROPOUT REDUCTION FUND

SEC. 101. PURPOSES.

    The purposes of this title are to--
            (1) improve high school student academic achievement and 
        graduation rates and prepare all students for postsecondary 
        education and the workforce;
            (2) help States and local educational agencies develop high 
        school improvement systems to deliver support and technical 
        assistance to high schools identified for whole school reform 
        or replacement, as described in clause (ii) and (iii) of 
        section 105(b)(2)(B);
            (3) ensure students graduate from high school with the 
        education and skills necessary to compete in a global economy; 
        and
            (4) help build the capacity to develop and implement 
        research-based, sustainable, and replicable high school 
        improvement models and interventions that are for high schools 
        in whole school reform and replacement and that engage the 
        whole community.

SEC. 102. DEFINITIONS.

    In this title:
            (1) Annual measurable growth.--The term ``annual measurable 
        growth'' means a rate of annual growth determined by a State 
        educational agency that is approved by the Secretary.
            (2) External partner.--The term ``external partner'' means 
        an entity--
                    (A) that is an organization such as a nonprofit 
                organization, community-based organization, local 
                education fund, service organization, educational 
                service agency, or institution of higher education; and
                    (B) that has demonstrated expertise and 
                effectiveness in providing targeted support such as 
                data analysis, professional development, or provision 
                of nonacademic support and integrated student services 
                to local educational agencies, schools, or students 
                that leads to improved teaching, learning, and outcomes 
                for students, including for those students who are 
                failing to make sufficient progress to graduate in the 
                standard amount of years or who have dropped out of 
                high school.
            (3) Low-income local educational agency.--The term ``low-
        income local educational agency'' means a local educational 
        agency--
                    (A) that serves not fewer than 10,000 children from 
                families with incomes below the poverty line; or
                    (B) for which not less than 20 percent of the 
                children served by the agency are from families with 
                incomes below the poverty line.
            (4) Middle grades.--The term ``middle grades'' means any of 
        grades 5 through 8.
            (5) Poverty line.--The term ``poverty line'' means the 
        poverty line described in section 673 of the Community Services 
        Block Grant Act (42 U.S.C. 9902), applicable to a family of the 
        size involved.
            (6) Secondary school reform partner.--The term ``secondary 
        school reform partner'' means an organization, such as a school 
        reform organization, community-based organization, local 
        education fund, educational service agency, or institution of 
        higher education, with expertise in analyzing school 
        performance data and a track record of success in improving 
        student achievement and graduation rates in low-performing high 
        schools.

SEC. 103. GRANTS AUTHORIZED.

    (a) In General.--The Secretary is authorized to make grants, 
through allotments under subsection (b), to State educational agencies 
with approved State plans that will--
            (1) improve student achievement and graduation rates;
            (2) effectively target resources and technical assistance 
        to high schools in whole school reform or replacement, as 
        described in clause (ii) or (iii) of section 105(b)(2)(B); and
            (3) ensure coordination with other Federal programs, where 
        applicable, including programs authorized under the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.), 
        the Individuals with Disabilities Education Act (20 U.S.C. 1401 
        et seq.), and the Carl D. Perkins Career and Technical 
        Education Act of 2006 (20 U.S.C. 2301 et seq.).
    (b) Determination of Allotments.--
            (1) Reservation of funds.--From the total amount 
        appropriated under section 112, the Secretary shall reserve not 
        more than--
                    (A) the lesser of 3 percent or $50,000,000, to--
                            (i) provide technical assistance and 
                        ongoing regional training programs that are 
                        equitably distributed--
                                    (I) among the different geographic 
                                regions of the United States; and
                                    (II) among State and local 
                                educational agencies serving urban and 
                                rural areas;
                            (ii) evaluate activities authorized under 
                        this title in order to determine the most 
                        effective strategies for improving student 
                        achievement and outcomes for students attending 
                        high schools identified for targeted 
                        intervention, whole school reform, or 
                        replacement under section 105(b)(2); and
                            (iii) disseminate the findings of such 
                        evaluations;
                    (B) the lesser of 4 percent or $75,000,000, to 
                build the capacity of secondary school reform partners 
                and external partners to provide services under this 
                Act that benefit high schools and support the 
                development or enhancement of research-based whole 
                secondary school reform or new secondary school models, 
                of which not less than 35 percent of such reserved 
                funds shall be awarded, on a competitive basis, to 
                secondary school reform partners or external partners 
                that will provide services under this Act that benefit 
                high schools designated with a school locale code of 
                Fringe Rural (41), Distant Rural (42), or Remote Rural 
                (43), as determined by the Secretary;
                    (C) 2 percent to the Secretary of the Interior, to 
                enable the Secretary to carry out the purposes of this 
                Act for schools operated or funded by the Bureau of 
                Indian Education of the Department of the Interior; and
                    (D) one-half of 1 percent to award assistance under 
                this title to the outlying areas according to their 
                respective needs for assistance under this title.
            (2) State allotment.--From the total amount appropriated 
        under section 112 for a fiscal year and not reserved under 
        paragraph (1), the Secretary shall make allotments as follows:
                    (A) Low-income local educational agencies.--From 
                such amount, the Secretary shall allot to each State an 
                amount that bears the same ratio to 50 percent of the 
                sums being allotted as the percentage of students 
                enrolled in schools served by low-income local 
                educational agencies in the State bears to the total of 
                such percentages for all the States.
                    (B) Lowest graduation rate calculation.--From such 
                amount, the Secretary shall allot to each State for 
                which the graduation rate is within the lowest one-
                third of the graduation rates for all States, an amount 
                that bears the same ratio to 25 percent of the sums 
                being allotted as the number of students enrolled in 
                high schools in the State bears to the total of such 
                students in all of such States with the lowest one-
                third graduation rates.
                    (C) Middle graduation rate calculation.--From such 
                amount, the Secretary shall allot to each State for 
                which the graduation rate is within the middle one-
                third of the graduation rates for all States, an amount 
                that bears the same ratio to 15 percent of the sums 
                being allotted as the number of students enrolled in 
                high schools in the State bears to the total of such 
                students in all of such States within the middle one-
                third graduation rates.
                    (D) Highest graduation rate calculation.--From such 
                amount, the Secretary shall allot to each State for 
                which the graduation rate is within the highest one-
                third of the graduation rates for all States, an amount 
                that bears the same ratio to 10 percent of the sums 
                being allotted as the number of students enrolled in 
                high schools in the State bears to the total of such 
                students in all of such States within the highest one-
                third graduation rates.
            (3) Reallotment.--If any State does not apply for an 
        allotment under this subsection for any fiscal year, the 
        Secretary shall reallot the amount of the allotment to the 
        remaining States in accordance with this subsection.
            (4) Using first-year data.--In calculating allotments under 
        this subsection for the second and each subsequent year of the 
        grant period, the Secretary shall use the data relating to low-
        income local educational agencies and graduation rates used for 
        the first year of the grant period.
            (5) Hold harmless.--Notwithstanding any other provision of 
        this subsection but subject to paragraph (6), no State shall 
        receive an allotment under this section for a fiscal year in an 
        amount that is less than the amount the State received under 
        this section for the first fiscal year of the grant period.
            (6) Ratable reduction.--If the amount appropriated in a 
        fiscal year is not sufficient to pay the minimum allotments to 
        all eligible institutions under paragraph (5), the amount of 
        the minimum allotment to each such eligible institution shall 
        be ratably reduced.
    (c) Supplement, Not Supplant.--A State educational agency that 
receives a grant under this title shall use the grant funds to 
supplement, and not supplant, Federal and non-Federal funds available 
to high schools.
    (d) Matching Funds.--
            (1) In general.--A State educational agency that receives a 
        grant under this section shall provide matching funds, from 
        non-Federal sources, in an amount equal to 25 percent of the 
        amount of grant funds provided to the State to carry out the 
        activities supported by the grant. Such matching funds may be 
        provided in cash or in-kind, except that--
                    (A) not more than 10 percent of the amount of grant 
                funds may be provided through in-kind contributions; 
                and
                    (B) any in-kind contributions shall be directed 
                toward supporting the State educational agency's 
                technical assistance efforts or the operation of the 
                State's differentiated high school improvement system 
                under section 105.
            (2) Waiver.--The Secretary may waive the requirements under 
        paragraph (1).

SEC. 104. SECRETARIAL PEER REVIEW AND APPROVAL.

    (a) In General.--The Secretary shall--
            (1) establish a peer-review process to assist in the review 
        and approval of State plans;
            (2) appoint individuals to the peer-review process who are 
        educators and experts in educational standards, assessments, 
        accountability, high school improvement, dropout prevention, 
        academic needs of English language learners, and other 
        educational needs of high school students;
            (3) approve a State plan submitted under this title not 
        later than 120 days after the date of the submission of the 
        plan unless the Secretary determines that the plan does not 
        meet the requirements of this title;
            (4) if the Secretary determines that the State plan does 
        not meet the requirements of this title, immediately notify the 
        State of such determination and the reasons for such 
        determination;
            (5) if the Secretary determines that the State does not 
        have the capacity to carry out the school improvement 
        activities described in sections 105(b)(2) and 107, offer 
        technical assistance to carry out such activities for States 
        directly or through contracts with secondary school reform 
        partners;
            (6) not deny a State's plan before--
                    (A) offering the State an opportunity to revise the 
                State's plan;
                    (B) providing the State with technical assistance 
                in order to submit a successful plan; and
                    (C) providing the State an opportunity for a 
                hearing or accepting input from the State; and
            (7) have the authority to deny a State plan for not meeting 
        the requirements of this title.
    (b) Accuracy.--In approving a State plan, the Secretary shall 
ensure that--
            (1) the process the State educational agency proposes for 
        differentiating school improvement actions under sections 
        105(b)(2) and 107, which process will assign high schools to 
        each of the school improvement categories described in section 
        105(b)(2) in such a way that accurately identifies the high 
        school and leads to the implementation of the interventions 
        necessary to meet the needs of the students attending the high 
        school; and
            (2) the annual growth targets proposed by the State 
        educational agency under section 105(b)(3)(D) are meaningful 
        and achievable, and demonstrate continuous and substantial 
        progress.

SEC. 105. STATE PLAN TO DEVELOP DIFFERENTIATED HIGH SCHOOL IMPROVEMENT 
              SYSTEM.

    (a) In General.--For a State to be eligible to receive a grant 
under this title, the State educational agency shall submit a plan to 
the Secretary at such time, in such manner, and containing such 
information as the Secretary may reasonably require.
    (b) Contents.--Each plan submitted under this section shall include 
the following:
            (1) School improvement process.--The State educational 
        agency shall describe how the State educational agency will use 
        funds authorized under this title to establish or expand a 
        statewide differentiated high school improvement system 
        described in section 107.
            (2) Statewide differentiated high school improvement.--
                    (A) Process of differentiation.--The State 
                educational agency shall describe a data-driven process 
                for categorizing high schools into the categories 
                described in subparagraph (B) using--
                            (i) the indicators used to determine annual 
                        measurable growth; and
                            (ii) data from the school performance 
                        indicators described in paragraph (3).
                    (B) Differentiated high school improvement 
                categories.--The State educational agency shall 
                describe how local educational agencies will use the 
                process established under subparagraph (A) to 
                categorize the high schools in the State that do not 
                make annual measurable growth for 2 consecutive years 
                into one of the following school improvement 
                categories:
                            (i) Schools needing targeted 
                        interventions.--High schools whose performance 
                        on the school performance indicators described 
                        in paragraph (3) demonstrate a need for 
                        targeted interventions described in section 
                        110(b) to improve student outcomes and make 
                        annual measurable growth.
                            (ii) Schools needing whole school 
                        reforms.--High schools whose performance on the 
                        school performance indicators demonstrate a 
                        need for comprehensive schoolwide reform 
                        described in section 110(c) to improve student 
                        outcomes and make annual measurable growth.
                            (iii) Schools needing replacement.--High 
                        schools whose school performance indicators 
                        demonstrate a need for replacement, as 
                        described in section 110(d).
                    (C) Special rule.--A State educational agency may 
                propose in the plan under this section additional 
                levels of differentiation within a particular school 
                improvement category described in subparagraph (B) to 
                further target and prioritize school needs and to align 
                differentiation with the State's existing State 
                accountability systems.
                    (D) Demonstration of development.--The State shall 
                demonstrate how the State plan was developed in 
                consultation with a representative group of local 
                educational agencies.
                    (E) Continuous improvement.--The State educational 
                agency shall describe how the State educational agency 
                will evaluate annually the progress of high schools to 
                ensure that each high school is making continuous and 
                substantial improvement in accordance with the annual 
                growth targets described in paragraph (3)(D) and 
                consistent with the requirements described in section 
                110.
                    (F) Automatic designation.--The process of 
                categorization proposed by the State educational agency 
                shall ensure that a high school shall be automatically 
                identified as a school in need of whole school reform 
                or as a school in need of replacement, if the high 
                school has a graduation rate of 50 percent or less in 
                the most recent year for which data are available.
            (3) School performance indicators.--
                    (A) In general.--The State educational agency shall 
                define, in consultation with representatives from urban 
                and rural local educational agencies in the State, a 
                comprehensive set of school performance indicators 
                that--
                            (i) shall be used, in addition to the 
                        indicators used to determine annual measurable 
                        growth, to--
                                    (I) analyze the performance of high 
                                schools in the State;
                                    (II) determine the amount, 
                                intensity, and type of support each 
                                high school needs; and
                                    (III) guide the school improvement 
                                process;
                            (ii) demonstrate whether a high school is 
                        making substantial and continuous progress 
                        toward the goal of graduating all of the 
                        school's students prepared for success in 
                        higher education and careers; and
                            (iii)(I) directly measure student 
                        achievement and advancement in high school; or
                            (II) have been demonstrated by research to 
                        have a direct impact on high school student 
                        achievement and advancement.
                    (B) Categories.--
                            (i) In general.--The comprehensive set of 
                        school performance indicators required by 
                        subparagraph (A) shall include indicators of--
                                    (I) high school student engagement 
                                and effort;
                                    (II) student advancement;
                                    (III) educator effectiveness; and
                                    (IV) academic learning.
                            (ii) Indicators of high school student 
                        engagement and effort.--With respect to high 
                        school student engagement and effort, the 
                        indicators--
                                    (I) shall include student 
                                attendance rates; and
                                    (II) may include--
                                            (aa) the percentage of 
                                        student suspensions and 
                                        expulsions;
                                            (bb) surveys of high school 
                                        student engagement and effort; 
                                        or
                                            (cc) other indicators of 
                                        student engagement proposed by 
                                        the State educational agency 
                                        and approved by the Secretary 
                                        as part of the peer review 
                                        process described in section 
                                        104(a).
                            (iii) Indicators of student advancement.--
                        With respect to student achievement, the 
                        indicators--
                                    (I) shall include--
                                            (aa)(AA) student-earned on-
                                        time promotion rates from grade 
                                        to grade for all grades in the 
                                        high school; or
                                            (BB) the percentage of 
                                        students who have on-time 
                                        credit accumulation at the end 
                                        of each grade; and
                                            (bb) the percentage of 
                                        students--

                                                    (AA) failing a 
                                                core, credit-bearing, 
                                                English language arts, 
                                                mathematics, or science 
                                                course; or

                                                    (BB) failing 2 or 
                                                more courses of any 
                                                type; and

                                    (II) may include--
                                            (aa) measures of 
                                        enrollment, retention, 
                                        persistence, and degree 
                                        attainment in two-year and 
                                        four-year institutions of 
                                        higher education;
                                            (bb) measures of the 
                                        employment success of students 
                                        who graduated from the high 
                                        school; or
                                            (cc) other indicators of 
                                        student advancement proposed by 
                                        the State educational agency 
                                        and approved by the Secretary 
                                        as part of the peer review 
                                        process described in section 
                                        104(a).
                            (iv) Indicators of educator 
                        effectiveness.--With respect to educator 
                        effectiveness, the indicators--
                                    (I) shall include--
                                            (aa) measures of teacher 
                                        attendance, vacancies, and 
                                        turnover; and
                                            (bb) the percentage of 
                                        highly qualified teachers by 
                                        grade level; and
                                    (II) may include--
                                            (aa) student performance 
                                        and growth, observations, and 
                                        portfolio review; and
                                            (bb) other indicators of 
                                        educator effectiveness proposed 
                                        by the State educational agency 
                                        and approved by the Secretary 
                                        as part of the peer review 
                                        process described in section 
                                        104(a).
                            (v) Indicators of academic learning.--With 
                        respect to academic learning, the indicators--
                                    (I) shall include--
                                            (aa) the percentage of 
                                        students taking a college-
                                        preparatory curriculum, which 
                                        may include the percentage of 
                                        students taking Advanced 
                                        Placement courses, 
                                        International Baccalaureate 
                                        courses, or postsecondary 
                                        courses for dual credit;
                                            (bb) the percentage of 
                                        students reaching proficiency 
                                        on the State academic 
                                        assessments in reading and 
                                        mathematics required under 
                                        section 1111 of the Elementary 
                                        and Secondary Education Act of 
                                        1965 (20 U.S.C. 6311), 
                                        disaggregated by the categories 
                                        of students identified in 
                                        section 1111(b)(2)(C)(v) of 
                                        such Act (20 U.S.C. 
                                        1111(b)(2)(C)(v));
                                            (cc) student success on 
                                        State or local educational 
                                        agency end-of-course 
                                        examinations or performance-
                                        based assessments with 
                                        standardized scoring rubrics 
                                        aligned to State standards, 
                                        where such assessments are 
                                        available; and
                                            (dd) the percentage of 
                                        students who earn a 
                                        postsecondary credential while 
                                        enrolled in secondary school 
                                        (including an industry-
                                        recognized credential); and
                                    (II) may also include--
                                            (aa) student achievement on 
                                        college entrance and placement 
                                        examinations such as the ACT or 
                                        SAT, or Advanced Placement or 
                                        International Baccalaureate 
                                        examinations; or
                                            (bb) other indicators of 
                                        academic learning proposed by 
                                        the State educational agency 
                                        and approved by the Secretary 
                                        as part of the peer-review 
                                        process described in section 
                                        104(a).
                    (C) Demonstration of capacity to collect and report 
                indicators.--The State educational agency shall 
                demonstrate its capacity to collect, report, and use 
                the indicators defined and used to meet the 
                requirements of subparagraph (A), including through the 
                use of a statewide longitudinal data system.
                    (D) Annual growth targets.--The State educational 
                agency shall set State annual growth targets that--
                            (i) include a goal and a minimum percentage 
                        of expected annual growth for each school 
                        performance indicator; and
                            (ii) demonstrate continuous and substantial 
                        progress toward the State-defined goal and 
                        making annual measurable growth.
            (4) Demonstration of capacity to support system.--The State 
        educational agency shall demonstrate capacity to support the 
        statewide differentiated high school improvement system, which 
        shall include, at a minimum, the following:
                    (A) System alignment.--
                            (i) Alignment with accountability system.--
                        The State shall demonstrate an alignment of the 
                        State accountability system described in 
                        section 1111(b)(2) of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 
                        6311(b)(2)) with other accountability systems 
                        approved by the Secretary under such section 
                        1111.
                            (ii) Additional requirements.--The State 
                        educational agency shall demonstrate, if the 
                        State's statewide differentiated high school 
                        improvement system includes additional 
                        requirements not required under section 107, 
                        how such additional requirements will lead to 
                        improved student achievement and graduation 
                        rates and system alignment.
                            (iii) Strengthening and aligning 
                        policies.--The State educational agency shall 
                        demonstrate how the State educational agency 
                        will strengthen and align policies affecting--
                                    (I) interventions in schools in 
                                whole school reform or replacement 
                                under clause (ii) or (iii) of paragraph 
                                (2)(B);
                                    (II) new school development; and
                                    (III) implementation of effective 
                                school improvement activities that 
                                address the education needs of high 
                                school students who are off-track or 
                                who have dropped out.
                    (B) Data systems.--The State educational agency 
                shall demonstrate the State educational agency's use 
                and support of a statewide longitudinal data system, 
                including demonstrating--
                            (i) that such system exists, or is being 
                        developed, and includes the elements described 
                        in section 6401(e)(2)(D) of the America 
                        COMPETES Act (20 U.S.C. 9871(e)(2)(D));
                            (ii) a commitment to the maintenance and 
                        growth of such system;
                            (iii) State policies that ensure the 
                        protection of personally identifiable 
                        information in such system and authorize such 
                        system to collect, share, and link data from 
                        multiple systems for the purposes of 
                        evaluations and continuous improvement;
                            (iv) governance structures to guide the 
                        collection, sharing and use of the data in such 
                        system; and
                            (v) that such system includes linkages 
                        between kindergarten through grade 12 data 
                        systems with early learning, postsecondary 
                        education, workforce, social services and other 
                        critical State agency data systems in order to 
                        achieve interoperability with systems in other 
                        States.
                    (C) Capacity and technical assistance.--The State 
                educational agency shall demonstrate how it will 
                support the statewide differentiated high school 
                improvement system, including--
                            (i) a description of the statewide system 
                        of support, including regional support services 
                        and how schools identified under this Act and 
                        the local educational agencies that serve such 
                        schools can utilize such supports to improve 
                        teaching, learning, and student outcomes;
                            (ii) a description of how the State 
                        educational agency will review, support, 
                        monitor, and provide technical support for 
                        local educational agency plans in accordance 
                        with paragraph (5);
                            (iii) a description of the State 
                        educational agency staffing structure that is 
                        designed to--
                                    (I) carry out the activities 
                                described in clause (ii);
                                    (II) assist local educational 
                                agency school improvement teams 
                                described in section 109(b)(2), 
                                including supporting local educational 
                                agencies and school officials in 
                                developing and implementing school 
                                improvement plans, including through 
                                the provision of resources, training 
                                and technical assistance; and
                                    (III) coordinate services across 
                                other State agencies to streamline and 
                                improve support provided to schools 
                                identified as needing targeted 
                                intervention, whole school reform, or 
                                replacement under paragraph (2)(B);
                            (iv) a description of how the State 
                        educational agency will develop and identify 
                        school improvement planning tools for use by 
                        the local educational agencies and schools, 
                        such as needs assessments; and
                            (v) a description of how the State 
                        educational agency will ensure local 
                        educational agencies with high numbers of 
                        schools in whole school reform and replacement 
                        and such schools will be prioritized and 
                        targeted with support.
                    (D) Increasing local capacity for improvement.--The 
                State educational agency shall demonstrate how the 
                State educational agency will align its resources and 
                policies to increase State and local capacity to ensure 
                comprehensive support for schools identified as needing 
                targeted intervention, whole school reform, or 
                replacement under paragraph (2)(B), including how the 
                State educational agency will--
                            (i) target resources, including resources 
                        from additional funding sources, to improve 
                        teacher and school leader quality or 
                        effectiveness in such schools including using 
                        data for decisionmaking;
                            (ii) leverage resources from other funding 
                        sources, such as school improvement funds, 
                        technology and data funds, and professional 
                        development funds;
                            (iii) provide local educational agencies 
                        with support in finding and utilizing secondary 
                        school reform partners and other external 
                        partners;
                            (iv) increase access to State and regional 
                        technical assistance services;
                            (v) ensure an equitable distribution of 
                        teachers and school leaders with a demonstrated 
                        record of improving student achievement and 
                        graduation rates among the schools in the State 
                        that are identified for targeted intervention, 
                        whole school reform, or replacement under 
                        paragraph (2)(B), particularly those schools in 
                        whole school reform or replacement, as compared 
                        to schools not identified under paragraph 
                        (2)(B);
                            (vi) ensure that local educational agencies 
                        in the State have adequate resources to serve 
                        schools;
                            (vii) support the development of effective 
                        school leaders for high schools identified for 
                        targeted intervention, whole school reform, or 
                        replacement under paragraph (2)(B);
                            (viii) assist local educational agencies in 
                        developing early warning indicator systems 
                        described in section 109(b)(6)(A); and
                            (ix) assist local educational agencies in 
                        developing education options as described in 
                        section 109(b)(6)(B).
            (5) State review of local educational agency plans.--
                    (A) Review local educational agency plans.--The 
                State educational agency shall describe how the State 
                educational agency will collect and review high school 
                improvement plans described in section 109(b)(4), 
                including a description of--
                            (i) how the State educational agency will 
                        measure and ensure local educational agencies 
                        have the capacity to carry out such high school 
                        improvement plans;
                            (ii) how a local educational agency may 
                        propose additional levels of differentiation 
                        within a particular school improvement category 
                        described in paragraph (2)(B) that are aligned 
                        with the State accountability system under 
                        section 1111(b)(2) of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 
                        6311(b)(2));
                            (iii) how the State educational agency will 
                        allow consortia of local educational agencies, 
                        particularly those in rural areas, to 
                        collaborate to develop and implement school 
                        improvement plans;
                            (iv) how the State educational agency will 
                        review plans with the assistance and advice of 
                        a peer review panel that includes educators and 
                        individuals who are experts in--
                                    (I) educational standards, 
                                assessments, and accountability;
                                    (II) high school improvement;
                                    (III) dropout prevention, 
                                intervention, and recovery;
                                    (IV) parental involvement; and
                                    (V) other educational needs of high 
                                school students;
                            (v) how the State, in consultation with the 
                        peer review panel, shall ensure the local 
                        educational agency has identified the school 
                        improvement category described in section 
                        105(b)(2) for each high school served by the 
                        local educational agency that did not make 
                        annual measurable growth for 2 consecutive 
                        years in such a way that accurately identifies 
                        the high school and leads to the implementation 
                        of the interventions necessary to meet student 
                        needs;
                            (vi) how the State will provide local 
                        educational agencies the opportunity to revise 
                        high school improvement plans, including, if 
                        the State educational agency, in consultation 
                        with the peer review panel described in clause 
                        (iv), determines that the local educational 
                        agency's plan does not meet the requirements of 
                        this title--
                                    (I) immediately notifying the local 
                                educational agency of such 
                                determination and the reasons for such 
                                determination; and
                                    (II) offering the local educational 
                                agency an opportunity to revise the 
                                plan, and technical assistance for 
                                revising the plan; and
                            (vii) how the State will make the school 
                        improvement plans available to the public.
                    (B) Allocation of subgrants.--The State educational 
                agency shall describe how it will award subgrants to 
                local educational agencies consistent with section 108.
                    (C) Monitoring of school improvement plans.--The 
                State educational agency shall describe how the State 
                educational agency will review and monitor the 
                implementation of high school improvement plans, 
                including how the State will analyze the implementation 
                of the high school improvement plans of high schools 
                that do not meet the annual growth targets set in 
                accordance with paragraph (3)(D) and defined in the 
                school improvement plan described in section 109(b)(4).
                    (D) Providing technical assistance.--The State 
                educational agency shall describe how it will provide 
                technical assistance to local educational agencies and 
                high schools that need support to develop and to 
                implement high school improvement plans described in 
                section 109(b)(4) and improve graduation rates and 
                student achievement, including through the use of 
                secondary school reform partners, where appropriate.
            (6) Evaluation of success.--The State educational agency 
        shall describe how, every 5 years, the State educational agency 
        will evaluate how the activities assisted under this title have 
        been successful in improving student achievement and outcomes 
        of the cohort of students whose year of entry into high school 
        was 4 years before the evaluation, including measurement of the 
        State educational agency's effectiveness in carrying out the 
        activities described in the application under this subsection.

SEC. 106. USE OF GRANT FUNDS.

    A State educational agency that receives a grant under this title--
            (1) shall reserve not more than 10 percent of the grant 
        funds--
                    (A) to carry out the activities described in the 
                State plan under section 105; and
                    (B) to establish or expand a statewide 
                differentiated high school improvement system described 
                in section 107; and
            (2) shall use not less than 90 percent of the grant funds 
        to make subgrants to local educational agencies in accordance 
        with section 108.

SEC. 107. STATEWIDE DIFFERENTIATED HIGH SCHOOL IMPROVEMENT SYSTEM.

    A statewide differentiated high school improvement system shall be 
designed by the State educational agency to--
            (1) use data to identify high schools for targeted 
        intervention, whole school reform, or replacement, as described 
        in section 105(b)(2)(B), within the State;
            (2) differentiate school improvement actions under section 
        105(b)(2) based on the amount and type of supports necessary to 
        improve student achievement and graduation rates in high 
        schools within the State;
            (3) provide resources to support the evidence-based 
        activities that school improvement teams choose, based on 
        school performance data, to carry out under section 110;
            (4) target resources and support to those high schools in 
        the State that are identified for whole school reform or 
        replacement;
            (5) ensure that each high school identified for targeted 
        intervention, whole school reform, or replacement that is 
        making progress on the State's school performance indicators 
        described in section 105(b)(3) continues to implement effective 
        school improvement strategies identified in the high school's 
        school improvement plan;
            (6) ensure that high schools identified for whole school 
        reform or replacement making progress on the State's school 
        performance indicators have the resources and supports 
        necessary to improve high school graduation rates and student 
        achievement;
            (7) build the capacity of the State educational agency and 
        local educational agencies to assist in improving student 
        achievement and graduation rates in high schools identified for 
        whole school reform and replacement; and
            (8) ensure that high schools identified for whole school 
        reform and replacement making progress on school performance 
        indicators continue to have the resources and support necessary 
        to further improve high school graduation rates and student 
        achievement.

SEC. 108. SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES.

    (a) Award Basis.--
            (1) Priority of whole school reform and replacement.--In 
        awarding subgrants under this section, a State educational 
        agency shall--
                    (A) before awarding any subgrants to local 
                educational agencies serving high schools identified 
                for targeted intervention under section 105(b)(2), 
                award subgrants to, on a competitive basis, local 
                educational agencies serving high schools identified as 
                needing whole school reform and replacement; and
                    (B) ensure that each subgrant awarded to a local 
                educational agency provides funding adequate to fulfill 
                the school improvement needs outlined in the local 
                educational agency's school plan, as approved by the 
                State educational agency.
            (2) Targeted interventions.--If subgrant funds remain after 
        the application of subsection (a), then the State educational 
        agency shall award remaining subgrant funds to local 
        educational agencies serving high schools needing targeted 
        interventions.
            (3) Competitive basis.--A State educational agency that 
        receives a grant under this title shall award subgrants, in 
        accordance with subsections (a) and (b), to local educational 
        agencies on the basis of--
                    (A) the quality of the school improvement plan to 
                improve student graduation rates and student 
                achievement in high schools that have not made annual 
                measurable growth for 2 consecutive years;
                    (B) the capacity of the local educational agency to 
                implement the plan; and
                    (C) the need of the local educational agency, based 
                on student high school graduation rates and the 
                percentage of students from families with incomes below 
                the poverty line.
    (b) Application.--
            (1) In general.--To be eligible to receive a subgrant under 
        this title, 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.
            (2) Contents.--Each application submitted under this 
        subsection shall include--
                    (A) a description, for each high school identified 
                pursuant to section 109(b)(1), of how the local 
                educational agency will carry out activities described 
                in section 110 for the high school;
                    (B) a description of the local educational agency 
                staffing structure that is designed to--
                            (i) carry out the activities described in 
                        section 109(a);
                            (ii) assist school improvement teams, 
                        including supporting local educational agency 
                        and school officials in developing and 
                        implementing high school improvement plans, by 
                        providing resources, training, and technical 
                        assistance, and through other means; and
                            (iii) coordinate services across other 
                        governmental agencies and nongovernmental 
                        organizations to streamline and improve support 
                        provided to schools identified for a school 
                        improvement category described in section 
                        105(b)(2);
                    (C) a description of the policies and procedures 
                the local educational agency shall implement to ensure 
                the distribution and assignment of high-quality 
                teachers and leaders in a manner that first fulfills 
                the needs of the schools identified as needing targeted 
                intervention, whole school reform, or replacement;
                    (D) an assurance that the local educational agency 
                will use subgrant funds under this title first to meet 
                the needs of high schools served by the local 
                educational agency that are identified for whole school 
                reform or replacement under clause (ii) or (iii) of 
                section 105(b)(2);
                    (E) an assurance that the local educational agency 
                shall provide ongoing support and resources to high 
                schools identified for whole school reform or 
                replacement, and are making progress on the State's 
                school performance indicators described in section 
                105(b)(3), to ensure continued improvement;
                    (F) a description of how the local educational 
                agency will increase its capacity to improve high 
                schools with low student achievement and graduation 
                rates; and
                    (G) an assurance that the local educational agency 
                will conduct the capacity and needs assessment required 
                under subsection (b)(9) and provide the results of the 
                assessment to the State educational agency.
            (3) Use of data.--The local educational agency shall 
        describe how data will be used, consistent with the 
        requirements of this section, to inform the classification of 
        high schools, and development and implementation of school 
        improvement plans, including that data described in section 
        109(b)(1)(A).
    (c) Supplement, Not Supplant.--A local educational agency that 
receives a subgrant under this section shall use the subgrant funds to 
supplement, and not supplant, other Federal and non-Federal funds 
available for high schools served by the local educational agency.
    (d) Matching Funds.--
            (1) In general.--A local educational agency receiving a 
        subgrant under this section shall provide matching funds, from 
        non-Federal sources, in an amount equal to not less than 15 
        percent of the total subgrant award for the local educational 
        agency, which may be provided in cash or in-kind.
            (2) Use of matching funds.--The matching funds shall be 
        used to provide technical assistance to high schools served by 
        the local educational agency in--
                    (A) developing the high schools' high school 
                improvement plans described in section 109(b)(4);
                    (B) conducting the capacity and needs assessments 
                described in section 109(b)(9); and
                    (C) implementing and monitoring the implementation 
                of the high school improvement plans.
            (3) Waiver.--The Secretary may waive all or part of the 
        matching requirement described in paragraph (1) for any fiscal 
        year for a local educational agency if the Secretary determines 
        that applying the matching requirement to such local 
        educational agency would result in serious hardship or an 
        inability to carry out the authorized activities described in 
        section 110.

SEC. 109. LOCAL EDUCATIONAL AGENCY IMPLEMENTATION OF SCHOOL IMPROVEMENT 
              SYSTEM.

    (a) District-Wide High School Improvement.--A local educational 
agency that receives a subgrant under section 108 shall use subgrant 
funds to develop, lead, and implement a district-wide approach to high 
school improvement that meets the requirements of subsection (b) and 
carry out the activities described in section 110.
    (b) System Requirements.--
            (1) Differentiate high schools.--The local educational 
        agency shall--
                    (A) identify the category of high school 
                improvement, as described in section 105(b)(2), using 
                data from the school performance indicators as 
                prescribed by the State educational agency in 
                accordance with section 105(b), for each high school 
                served by such agency that does not make annual 
                measurable growth for 2 consecutive years; and
                    (B) publicly identify such schools by school 
                improvement category.
            (2) School improvement teams.--
                    (A) In general.--The local educational agency shall 
                convene a school improvement team for each high school 
                served by such agency that is assigned to one of the 
                school improvement categories described in section 
                105(b)(2).
                    (B) Members.--
                            (i) Mandatory members.--The school 
                        improvement team for a high school shall 
                        include--
                                    (I) the school leader of the high 
                                school;
                                    (II) if applicable, at least 1 
                                teacher from the high school 
                                representing career and technical 
                                education;
                                    (III) at least 2 teachers from the 
                                high school representing different 
                                grade levels or disciplines;
                                    (IV) local educational agency 
                                staff;
                                    (V) a school counselor from the 
                                high school; and
                                    (VI) a local representative of the 
                                business community, with preference 
                                given to a member of a school's 
                                business advisory council, if 
                                applicable.
                            (ii) Additional members.--The school 
                        improvement team for a high school shall 
                        include at least one of the following:
                                    (I) A parent of a student in the 
                                high school.
                                    (II) A community representative, 
                                such as a representative of nonprofit 
                                organizations serving young people and 
                                the business community.
                                    (III) A pupil service 
                                representative.
                                    (IV) In the case of a school in 
                                whole school reform or replacement, 
                                secondary school reform partners.
                            (iii) Optional members.--The school 
                        improvement team for a high school may include 
                        State educational agency staff, if requested by 
                        the local educational agency or assigned by the 
                        State educational agency.
                    (C) Collaboration.--The local educational agency 
                shall ensure collaboration--
                            (i) of school improvement teams with 
                        personnel of middle grades schools served by 
                        the local educational agency whose students 
                        will attend high schools that are identified 
                        for one of the categories described in section 
                        105(b)(2), to the extent appropriate; and
                            (ii) among or between school improvement 
                        teams at schools assigned to one of the school 
                        improvement categories and school leadership 
                        and other personnel at schools served by the 
                        local educational agency that have made annual 
                        measurable growth.
            (3) Use of data.--Consistent with the requirements of this 
        section, the local educational agency shall use, at minimum, 
        data on the following to inform the classification of high 
        schools:
                    (A) School performance indicators described in 
                section 105(b)(3).
                    (B) Indicators used to determine annual measurable 
                growth.
                    (C) Information about incoming students in the 
                initial grade of the high school.
                    (D) Information about the student population, 
                including data provided through the early warning 
                indicator system described in paragraph (6)(A).
                    (E) The schools' capacity and needs, as described 
                in paragraph (9).
            (4) Develop high school improvement plans.--The school 
        improvement team convened under paragraph (2) for each school 
        shall use the data described in paragraph (3), and other 
        relevant data and knowledge regarding the school, to develop a 
        multiyear school improvement plan. Such plan shall--
                    (A) identify the school annual growth targets for 
                the State's school performance indicators described in 
                section 105(b)(3) that meet or exceed the State's 
                annual growth targets described in such section;
                    (B) define the evidence-based academic and 
                nonacademic interventions and resources necessary to 
                meet the school annual growth targets and make annual 
                measurable growth;
                    (C) identify the roles of the State educational 
                agency, the local educational agency, the school, and 
                secondary school reform partners and other external 
                partners, as appropriate, in providing such 
                interventions and the resources necessary to meet the 
                school annual growth targets and make annual measurable 
                growth;
                    (D) provide for the involvement of business and 
                community organizations and other entities, including 
                parents and institutions of higher education, in the 
                activities to be assisted under the subgrant; and
                    (E) describe and direct the use of--
                            (i) any additional funding to be provided 
                        by the State educational agency, the local 
                        educational agency, or other sources to support 
                        activities carried out under this title; and
                            (ii) in the case of a high school 
                        identified for whole school reform or 
                        replacement, secondary school reform partners 
                        and external partners.
            (5) Implement high school improvement.--The local 
        educational agency shall use funds to--
                    (A) engage in a planning period of not longer than 
                180 days to prepare to implement the school improvement 
                plan for each high school, including preparation 
                activities such as--
                            (i) creating a skilled leadership team and 
                        providing professional development in best 
                        practice and successful school models that 
                        educate similar student populations;
                            (ii) working with secondary school reform 
                        partners to identify roles and responsibilities 
                        to create a comprehensive approach and effort 
                        to implementing the school improvement plan for 
                        each school identified for targeted 
                        intervention, whole school improvement, or 
                        replacement;
                            (iii) planning and providing professional 
                        development to high school teachers in 
                        instruction, use of data, and working in the 
                        identified schools;
                            (iv) appropriately identifying teachers for 
                        each grade and course;
                            (v) establishing and implementing use of 
                        the early warning indicator system described in 
                        paragraph (6)(A); and
                            (vi) establishing a school schedule that 
                        enables the implementation of the high school 
                        improvement plan; and
                    (B) ensure the implementation of the high school 
                improvement plans for the high schools identified for 
                one of the categories described in section 105(b)(2).
            (6) Implement district-wide activities.--The local 
        educational agency shall support successful implementation of 
        high school improvement plans and district-wide improvement 
        through--
                    (A) establishing an early warning indicator system 
                to identify students who are at risk of dropping out of 
                high school and to guide preventive and recuperative 
                school improvement strategies, including--
                            (i) identifying and analyzing the academic 
                        risk factors that most reliably predict 
                        dropouts, such as by using longitudinal data of 
                        past cohorts of students;
                            (ii) identifying specific indicators of 
                        student progress and performance, such as 
                        attendance, academic performance in core 
                        courses, and credit accumulation, to guide 
                        decisionmaking;
                            (iii) identifying or developing a mechanism 
                        for regularly collecting and analyzing data 
                        about the impact of interventions on the 
                        indicators of student progress and performance; 
                        and
                            (iv) analyzing academic indicators to 
                        determine whether students are on track to 
                        graduate secondary school in the standard 
                        number of years;
                    (B) providing academically rigorous education 
                options that lead to a secondary school diploma 
                consistent with readiness for postsecondary education 
                and the workforce, based on an analysis of data 
                described in paragraph (3) and other student-level data 
                and designed to meet the students' needs and interests, 
                such as--
                            (i) effective research-based dropout 
                        prevention, credit and dropout recovery, and 
                        recuperative education programs for students 
                        who are not making sufficient progress to 
                        graduate high school in the standard number of 
                        years or have dropped out of high school;
                            (ii) providing students with post-secondary 
                        learning opportunities, such as through access 
                        to a relevant curriculum or course of study 
                        that enables a student to earn a secondary 
                        school diploma and--
                                    (I) an associate's degree;
                                    (II) an industry-recognized 
                                credential; or
                                    (III) transferable credit toward a 
                                postsecondary degree or credential;
                            (iii) combining rigorous academic education 
                        with career training, including training that 
                        leads to postsecondary or industry-recognized 
                        credentials, for students;
                            (iv) increasing access to Advanced 
                        Placement or International Baccalaureate 
                        courses and examinations;
                            (v) developing and utilizing innovative, 
                        high quality distance learning strategies to 
                        improve student academic achievement; or
                            (vi) increasing access to work-based 
                        learning opportunities;
                    (C) providing targeted research-based interventions 
                for middle schools that feed into the high schools 
                identified by the local educational agency as needing 
                whole school reform or replacement;
                    (D) identifying and implement strategies for 
                pairing academic support with integrated student 
                services and case-managed interventions for students 
                requiring intensive supports, which may include 
                partnership with other external partners;
                    (E) providing technical assistance to high schools 
                identified for 1 of the categories described in section 
                105(b)(2) through--
                            (i) streamlining and prioritizing resources 
                        to organize support for schools in whole school 
                        reform or replacement, such as through 
                        identifying and developing categories or 
                        clusters of schools with similar school 
                        improvement needs; and
                            (ii) assisting schools in identifying 
                        secondary school reform partners and other 
                        external partners; and
                    (F) supporting the use of data to improve teaching 
                and learning, including--
                            (i) improving longitudinal student data 
                        systems;
                            (ii) regularly analyzing and communicating 
                        data to educators, parents, and students that 
                        they can use; and
                            (iii) building school leaders' and 
                        teachers' data and assessment literacy.
            (7) Ensure continuous high school improvement.--
                    (A) In general.--The local educational agency shall 
                ensure the continuous improvement of high schools by--
                            (i) evaluating the progress of each high 
                        school in making continuous and substantial 
                        progress based on the high school's annual 
                        growth targets identified under paragraph (4) 
                        for the school; and
                            (ii) determining the high school's progress 
                        and taking appropriate actions, as provided in 
                        subparagraphs (B) and (C).
                    (B) On track.--Each high school that is meeting the 
                school's annual growth targets identified in the high 
                school improvement plan for the high school, shall 
                continue to implement school improvement activities in 
                accordance with the high school improvement plan.
                    (C) Not on track.--
                            (i) Annual review.--For each high school 
                        that is not meeting the high school's annual 
                        growth targets, the local educational agency 
                        shall--
                                    (I) after the first year that the 
                                high school fails to meet the high 
                                school's annual growth targets, review 
                                the high school improvement plan and 
                                develop and implement a new plan; and
                                    (II) after the high school fails to 
                                meet the high school's annual growth 
                                targets for 2 or more consecutive 
                                years, reclassify the school as a 
                                school in need of whole school reform 
                                or replacement, as appropriate based on 
                                the State educational agency's 
                                categorization system described in 
                                section 105(b)(2).
                            (ii) Resubmission of school plan.--For each 
                        high school that fails to meet the high 
                        school's annual growth targets for 2 or more 
                        consecutive years, the local educational agency 
                        may develop and submit to the State educational 
                        agency for review a new school improvement 
                        plan, as the local educational agency 
                        determines appropriate.
            (8) Assurances.--The local educational agency shall ensure 
        that high schools receiving additional students due to other 
        high schools being replaced under subsection (c) will have 
        sufficient capacity, resources, and funding to deliver a high 
        quality education to all students.
            (9) Capacity and needs assessment.--
                    (A) In general.--Each school improvement team 
                described in subsection (b)(2) and the local 
                educational agency shall conduct a high school capacity 
                and needs assessment for the high school served by the 
                team that includes--
                            (i) a description and analysis of the high 
                        school's capacity to implement the school 
                        improvement activities identified in the high 
                        school improvement plan, including an analysis 
                        of--
                                    (I) the number, experience, 
                                training level, responsibilities, and 
                                stability of existing administrative, 
                                instructional, and noninstructional 
                                staff for the high school; and
                                    (II) a review of the budget, 
                                including how Federal, State, and local 
                                funds are being spent, as of the time 
                                of the assessment, for instruction and 
                                operations at the school level for 
                                staff salaries, instructional 
                                materials, professional development, 
                                and student support services, in order 
                                to establish the extent to which 
                                existing resources need to and can be 
                                reallocated to support the needed 
                                school improvement activities;
                            (ii) additional resources and staff 
                        necessary to implement the school improvement 
                        activities identified in the high school 
                        improvement plan; and
                            (iii) an analysis of the local educational 
                        agency's capacity to provide technical 
                        assistance, additional staff, and resources to 
                        implement the high school improvement plan and 
                        to improve the high school's performance.
                    (B) Assessment requirements.--A local educational 
                agency shall use the information provided in the 
                capacity and needs assessment for a high school, in 
                coordination with the high school's school improvement 
                plan and the understanding of the reform history of 
                high schools, to--
                            (i) determine the level and direct the use 
                        of--
                                    (I) the funds requested by the 
                                local educational agency for the high 
                                school under the subgrant under this 
                                section; and
                                    (II) any additional funding to be 
                                provided by the State educational 
                                agency, the local educational agency, 
                                or other sources; and
                            (ii) to determine the number and direct the 
                        use of secondary school reform partners and 
                        external partners.
                    (C) Technical assistance.--A local educational 
                agency may request technical assistance from the State 
                educational agency in preparing the plan and the 
                capacity and needs assessment required under this 
                paragraph.
    (c) Authority To Intervene.--The State educational agency may 
intervene to develop or implement the high school improvement plans, or 
enter into contracts with secondary school reform partners to assist 
local educational agencies with the development and implementation of 
high school improvement plans, if the State educational agency 
determines that--
            (1) a local educational agency serving a high school in 
        whole school reform or replacement has not submitted an 
        application described in section 108(b); or
            (2) a local educational agency does not have the capacity 
        to implement the school improvement activities described in the 
        school improvement plan submitted under subsection (b)(4).

SEC. 110. SCHOOL IMPROVEMENT ACTIVITIES.

    (a) In General.--The school improvement team described in section 
109(b)(2) for each high school identified for a school improvement 
category described in section 105(b)(2) shall ensure that the school 
improvement activities included in the school improvement plan are 
implemented.
    (b) Targeted Interventions.--A high school identified for targeted 
interventions under section 109(b)(1) or the local educational agency 
serving such high school, shall implement research-based targeted 
interventions, using data from the school performance indicators, the 
early warning indicator system, other student indicators, and the 
capacity and needs assessment for the high school. The targeted 
interventions shall be designed, at a minimum, to address the specific 
problems identified by the indicators, including the needs of students 
who are not making sufficient progress to graduate in the standard 
number of years.
    (c) Whole School Reform.--The local educational agency or State 
educational agency, with technical assistance from secondary school 
reform partners, shall enable and assist each school identified as 
needing whole school reform pursuant to section 109(b)(1) to implement 
whole school reform based on scientifically valid research using the 
data described in section 109(b)(3). Such reform--
            (1) shall address the comprehensive aspects of high school 
        reform, including--
                    (A) schoolwide needs;
                    (B) students who need targeted assistance; and
                    (C) students who need intensive interventions, 
                including those who are not making sufficient progress 
                to graduate on time;
            (2) shall address schoolwide factors to improve student 
        achievement, including--
                    (A) setting high expectations and infusing 
                relevance into learning for all students;
                    (B) personalizing the high school experience; and
                    (C) improving school climate, including student 
                attendance and behavior;
            (3) shall include activities that--
                    (A) ensure continuous improvement by--
                            (i) ensuring the school improvement plan is 
                        supported to the extent practicable by all 
                        school staff;
                            (ii) establishing clear--
                                    (I) goals and growth targets for 
                                implementation outcomes; and
                                    (II) school annual growth targets; 
                                and
                            (iii) regularly evaluating implementation 
                        of and fidelity to the high school improvement 
                        plan, such as dedicating a staff member to 
                        support implementation of the school 
                        improvement plan;
                    (B) organize the school to improve teaching and 
                learning, including through--
                            (i) strategic use of time, such as--
                                    (I) establishing common planning 
                                time for subject area teachers and 
                                interdisciplinary teams who share 
                                common groups of students;
                                    (II) utilizing block scheduling or 
                                redesigning the school calendar year or 
                                day to create extended learning time in 
                                core subjects; or
                                    (III) creating a flexible school 
                                period to address specific student 
                                academic needs and interests such as 
                                credit recovery, electives, or service 
                                learning;
                            (ii) alignment of resources to improvement 
                        goals, such as through ensuring that students 
                        in their initial year in the high school are 
                        taught by teachers prepared to meet their 
                        specific learning needs; and
                            (iii) development of effective leadership 
                        structures, supports, and clear decisionmaking 
                        processes, such as through developing 
                        distributive leadership and leadership teams;
                    (C) improve curriculum and instruction, including 
                through--
                            (i) increasing access to rigorous and 
                        advanced coursework, including adoption and 
                        implementation of a college- and work-ready 
                        curriculum, and evidence-based, engaging 
                        instructional materials aligned with such a 
                        curriculum, for all students;
                            (ii) increasing access to contextualized 
                        learning opportunities aligned with readiness 
                        for postsecondary education and the workforce, 
                        such as--
                                    (I) providing work-based, project-
                                based, and service-learning 
                                opportunities;
                                    (II) providing a high quality, 
                                college preparatory curriculum in the 
                                context of a rigorous career and 
                                technical education core; or
                                    (III) implementing career academies 
                                or programs of study in high-demand 
                                fields leading to industry-recognized 
                                credentials or postsecondary credit;
                            (iii) regularly collecting and using data 
                        to inform instruction, such as--
                                    (I) through use of formative 
                                assessments;
                                    (II) creating and using common 
                                grading rubrics; or
                                    (III) identifying effective 
                                instructional approaches to meet 
                                student needs; and
                            (iv) emphasizing core skills instruction, 
                        such as literacy, across content areas;
                    (D) provide students with academic and social 
                support to address individual student learning needs, 
                including through--
                            (i) increasing personalization through 
                        learning structures that facilitate the 
                        development of student and staff relationships 
                        such as--
                                    (I) implementing grade 9 academies, 
                                career academies, or programs of study;
                                    (II) establishing teams of teachers 
                                who work exclusively with small groups 
                                of students; or
                                    (III) creating advisor positions to 
                                provide students with study, 
                                organizational, and social skills;
                            (ii) offering extended-learning, credit 
                        recovery, mentoring, or tutoring options of 
                        sufficient scale to meet student needs;
                            (iii) providing evidence-based accelerated 
                        learning for students with academic skill 
                        levels below grade level;
                            (iv) coordinating and increasing access to 
                        integrated services, such as providing 
                        additional counselors, social workers, and 
                        behavior and mental health providers to deliver 
                        such services;
                            (v) providing graduation and postsecondary 
                        planning and transition supports, including 
                        college awareness and planning; and
                            (vi) providing up-to-date, regionally 
                        relevant workforce information;
                    (E) increase teacher and school leader 
                effectiveness, including through--
                            (i) professional development activities 
                        that respond to student and schoolwide needs as 
                        identified through the data described in 
                        section 109(b)(3), such as--
                                    (I) training teachers, leaders, and 
                                administrators together with staff from 
                                high schools making annual measurable 
                                growth that serve similar populations 
                                and in such schools; and
                                    (II) establishing peer learning and 
                                coaching among teachers; and
                            (ii) facilitating collaboration, including 
                        through professional communities across subject 
                        area and interdisciplinary groups and similar 
                        high schools; and
                    (F) engage families and community partners, 
                including community-based organizations, organizations 
                assisting parent involvement, institutions of higher 
                education, and industry, in school improvement 
                activities through evidence-based strategies; and
            (4) may include--
                    (A) providing enabling policies, such as additional 
                flexibility regarding staffing and compensation, 
                budgeting, student credit attainment, or use of school 
                time, that support the implementation of effective 
                school improvement activities and educational options, 
                including flexibility provided under section 1114(a)(3) 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 6314(a)(3));
                    (B) implementing multiple school options or 
                effective school models that address the needs of 
                students who are not making sufficient progress to 
                graduate in the standard number of years or have 
                dropped out of high school, as informed by analysis of 
                school performance indicator data described in section 
                105(b)(3) and early warning indicator system data 
                described in section 109(b)(6)(A); and
                    (C) other activities designed to address whole 
                school needs, such as implementing a comprehensive 
                reform model for the high school.
    (d) Replacement.--The local educational agency, in consultation 
with the State educational agency, secondary school reform partners, 
and external partners, shall replace each high school that, using data 
under section 109(b)(3), is identified for replacement pursuant to 
section 109(b)(1). The local educational agency shall ensure successful 
implementation of the replacement strategy through--
            (1) closing and reopening the schools or implementing 
        multiple school options or effective school models that address 
        the needs of students in the replaced schools, including 
        students who are not making sufficient progress to graduate in 
        the standard number of years or have dropped out of high 
        school;
            (2) providing enabling policies, such as additional 
        flexibility regarding staffing and compensation, budgeting, or 
        use of school time; and
            (3) implementing activities described in subsection (c).

SEC. 111. EVALUATION AND REPORTING.

    (a) Local Educational Agency Reporting.--On an annual basis, each 
local educational agency receiving a subgrant under section 108 shall 
report to the State educational agency and to the public on--
            (1) the identified category of school improvement for each 
        high school in the school that failed to make annual measurable 
        growth for the most recent 2 consecutive years;
            (2) the school performance indicators (as described in 
        section 105(b)(3)) for each such high school, in the aggregate 
        and disaggregated by the subgroups described in 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));
            (3) each such high school's progress in meeting the high 
        school's annual growth targets under section 109(b)(4)(A); and
            (4) the use of subgrant funds in carrying out the purposes 
        of this title by the local educational agency and each such 
        school.
    (b) State Educational Agency Reporting.--On an annual basis, each 
State educational agency receiving a grant under this title shall 
prepare and submit to the Secretary, and make available to the public, 
a report on--
            (1) the school performance indicators (as described in 
        section 105(b)(3)) for each high school served by the State 
        educational agency that receives assistance under this title, 
        in the aggregate and disaggregated by the subgroups described 
        in 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));
            (2) progress in meeting the annual growth targets under 
        section 109(b)(4)(A) for each such high school;
            (3) the high schools in the State that have changed school 
        improvement categories pursuant to section 109(b)(7);
            (4) the use of funds in carrying out the purposes of this 
        title by each local educational agency and each school served 
        with such funds;
            (5) the State definition of a new school, for purposes of 
        whole school reform or replacement;
            (6) the number of schools closed for each local educational 
        agency in the State;
            (7) the number of new schools for each local educational 
        agency in the State; and
            (8) the new schools in the State that have made annual 
        measurable growth.
    (c) Report to Congress.--Not later than 2 years after the date of 
enactment of this Act, and annually thereafter, the Secretary shall 
prepare and submit to Congress and make available to the public--
            (1) a summary of the State reports under subsection (b); 
        and
            (2) a report on the use of funds by each State under this 
        title.

SEC. 112. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out the activities 
authorized under this title, $2,440,000,000 for fiscal year 2014 and 
each of the 4 succeeding fiscal years.

            TITLE II--DEVELOPMENT OF EFFECTIVE SCHOOL MODELS

SEC. 201. PURPOSES.

    The purposes of this title are--
            (1) to facilitate the development and implementation of 
        effective secondary school models for struggling students and 
        dropouts in order to raise secondary school graduation rates 
        and more effectively prepare students for postsecondary 
        education and the workforce; and
            (2) to build the capacity of State educational agencies, 
        local educational agencies, nonprofit organizations, and 
        institutions of higher education to implement effective 
        secondary school models for struggling students and dropouts.

SEC. 202. DEFINITIONS.

    In this title:
            (1) Dropout.--The term ``dropout'' means an individual 
        who--
                    (A) is not older than 21;
                    (B) is not attending any school; and
                    (C) has not received a secondary school diploma or 
                its recognized equivalent.
            (2) Effective school model.--The term ``effective school 
        model'' means--
                    (A) an existing secondary school model with 
                demonstrated effectiveness in improving student 
                academic achievement and outcomes for off-track 
                students or dropouts; or
                    (B) a proposed new secondary school model design 
                that is based on research-based organizational and 
                instructional practices for improving student academic 
                achievement and outcomes for struggling students or 
                dropouts.
            (3) Eligible entity.--The term ``eligible entity'' means--
                    (A) a local educational agency, nonprofit 
                organization, or institution of higher education--
                            (i) that proposes to enhance or expand an 
                        existing effective school model for off-track 
                        students or dropouts; or
                            (ii) that has a track record of serving 
                        struggling students or dropouts and proposes to 
                        develop a new effective school model for off-
                        track students or dropouts; or
                    (B) a partnership involving 2 or more entities 
                described in subparagraph (A).
            (4) Late entrant english language learner.--The term ``late 
        entrant English language learner'' means a high school student 
        who--
                    (A) enters a school served by a local educational 
                agency at grade 9 or higher; and
                    (B) is identified by the local educational agency 
                as being limited English proficient and as having 
                experienced interrupted formal education.
            (5) Struggling student.--The term ``struggling student''--
                    (A) means a high-school-aged student who is not 
                making sufficient progress toward graduating from 
                secondary school with a regular diploma in the standard 
                number of years; and
                    (B) includes a student who--
                            (i) has been retained in grade level;
                            (ii) is an undercredited student; or
                            (iii) is a late entrant English language 
                        learner.
            (6) Undercredited student.--The term ``undercredited 
        student'' means a high school student who lacks either the 
        necessary credits or courses, as determined by the relevant 
        local educational agency and State educational agency, to 
        graduate from secondary school with a regular diploma in the 
        standard number of years.

SEC. 203. GRANTS AUTHORIZED.

    (a) In General.--The Secretary is authorized to award grants, on a 
competitive basis, to eligible entities to enable the eligible entities 
to develop and implement, or replicate, effective school models for 
struggling students and dropouts.
    (b) Period of Grant.--A grant awarded under this section shall be 
for a period of 5 years.

SEC. 204. APPLICATION.

    (a) In General.--Each eligible entity desiring 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 
require.
    (b) Contents.--Each application submitted under this section shall 
include a description of--
            (1) how the eligible entity will carry out the mandatory 
        activities under section 206(a);
            (2) the research or evidence concerning the effective 
        school model that the eligible entity proposes to develop and 
        implement or replicate, including--
                    (A) for an existing effective school model 
                described in section 202(2)(A), the evidence that the 
                model has improved academic outcomes for struggling 
                students or dropouts; or
                    (B) for a proposed effective school model described 
                in section 202(2)(B), the research that supports the 
                key organizational and instructional practices of the 
                proposed effective school model;
            (3) the eligible entity's school design elements and 
        principles that will be used in the effective school model, 
        including--
                    (A) the academic program;
                    (B) the career and technical education program, if 
                applicable;
                    (C) the instructional practices;
                    (D) the methods of assessment; and
                    (E) student supports and services, such as the 
                supports and services provided by the school or offered 
                by other organizations and agencies in the community, 
                to support positive student academic achievement and 
                outcomes;
            (4) how the eligible entity will use student data from the 
        local educational agency or State educational agency to 
        evaluate and improve academic outcomes for struggling students 
        or dropouts;
            (5) for each school in which the eligible entity implements 
        or replicates an effective school model under this title, how 
        the eligibility entity will sustain the implementation or 
        replication of the effective school model, including the 
        financing mechanism to be used;
            (6) how the eligible entity will collect data and 
        information to assess the performance of the effective school 
        model and will make necessary adjustments to ensure continuous 
        and substantial improvement in student academic achievement and 
        outcomes; and
            (7) how the eligible entity will make the performance data 
        available to State educational agencies, local educational 
        agencies, and schools serving struggling students or dropouts.

SEC. 205. SECRETARIAL PEER REVIEW AND APPROVAL.

    The Secretary shall--
            (1) establish a peer-review process to assist in the review 
        and approval of applications submitted by eligible entities 
        under section 204; and
            (2) appoint individuals to the peer-review process who are 
        experts in high school reform, dropout prevention and recovery, 
        new school development for struggling students and dropouts, 
        and adolescent and academic development.

SEC. 206. USE OF FUNDS.

    (a) Mandatory Use of Funds.--An eligible entity receiving a grant 
under this title shall use grant funds to--
            (1) enhance and expand, or replicate an existing effective 
        school model described in section 202(2)(A), or develop a 
        proposed effective school model described in section 202(2)(B), 
        for struggling students and dropouts;
            (2) assess the progress of the implementation or 
        replication of the effective school model and make necessary 
        adjustments to ensure continuous improvement;
            (3) provide opportunities for professional development 
        associated with the continuous improvement and implementation 
        or replication of the effective school model;
            (4) collect data and information on the school model's 
        effectiveness in improving student academic achievement and 
        outcomes for struggling students and dropouts and disseminate 
        such data and information to State educational agencies, local 
        educational agencies, and schools; and
            (5) build the capacity of the eligible entity to--
                    (A) sustain the implementation or replication of 
                the effective school model assisted under paragraph (1) 
                after the grant period has ended; and
                    (B) replicate the effective school model.
    (b) Optional Use of Funds.--An eligible entity receiving a grant 
under this title may use grant funds--
            (1) to identify and create partnerships needed to improve 
        the academic achievement and outcomes of the students attending 
        a school assisted under this title;
            (2) to support family and community engagement in the 
        effective school model; and
            (3) to carry out any additional activities that the 
        Secretary determines are within the purposes described in 
        section 201.

SEC. 207. EVALUATION AND REPORTING.

    (a) Contents of Report.--Each eligible entity receiving a grant 
under this title shall annually report to the Secretary on--
            (1) the data and information being gathered to assess the 
        effective school model's effectiveness in improving student 
        academic achievement and outcomes for struggling students and 
        dropouts;
            (2) the implementation status of the models, any barriers 
        to implementation, and actions taken to overcome the barriers;
            (3) any professional development activities to build the 
        capacity of--
                    (A) the eligible entity to sustain or replicate the 
                effective school model; or
                    (B) the staff of a school assisted under this title 
                to implement or improve the effective school model;
            (4) the progress made in improving student academic 
        achievement and outcomes in the effective school models for 
        struggling students and dropouts; and
            (5) the use of grant funds by the eligible entity.
    (b) Independent Evaluations.--The Secretary shall reserve not more 
than $5,000,000 to carry out an independent evaluation of the grant 
program under this title and the progress of the eligible entities 
receiving grants under this title.
    (c) Report to Congress.--The Secretary shall submit a report to 
Congress--
            (1) on the activities carried out with grant funds under 
        this title; and
            (2) that includes, for the purpose of making publicly 
        available, effective secondary school models for struggling 
        students and dropouts developed with grant funds under this 
        title.

SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this title 
$60,000,000 for fiscal year 2014 and each of the 4 succeeding fiscal 
years.
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