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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4496 Introduced in House (IH)]

108th CONGRESS
  2d Session
                                H. R. 4496

To amend the Carl D. Perkins Vocational and Technical Education Act of 
        1998 to strengthen and improve programs under that Act.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              June 3, 2004

Mr. Castle (for himself, Mr. Boehner, and Mr. Wilson of South Carolina) 
 introduced the following bill; which was referred to the Committee on 
                      Education and the Workforce

_______________________________________________________________________

                                 A BILL

 
To amend the Carl D. Perkins Vocational and Technical Education Act of 
        1998 to strengthen and improve programs under that Act.

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

SECTION 1. SHORT TITLE.

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

SEC. 2. REFERENCES.

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

SEC. 3. PURPOSES AND DEFINITIONS.

    (a) Purposes.--Section 2(2) (20 U.S.C. 2301(2)) is amended by 
inserting ``rigorous and challenging'' after ``integrate''.
    (b) Definitions.--Section 3 of the Carl D. Perkins Vocational and 
Technical Education Act of 1998 (20 U.S.C. 2302) is amended--
            (1) by redesignating paragraphs (4) through (20) as 
        paragraphs (5) through (21) and paragraphs (21) through (30) as 
        paragraphs (23) through (31), respectively;
            (2) by inserting after paragraph (3) the following:
            ``(4) Articulation agreement.--The term `articulation 
        agreement' means a written commitment to a program designed to 
        provide students with a nonduplicative sequence of progressive 
        achievements leading to degrees or certificates in a tech-prep 
        education program provided by secondary schools and 
        postsecondary educational institutions linked through credit 
        transfer agreements. '';
            (3) in paragraph (5) (as so redesignated), by inserting 
        ``to students (and parents, as appropriate)'' after ``providing 
        access'';
            (4) in paragraph (6) (as so redesignated), by striking 
        ``section 5206'' and inserting ``section 5210'';
            (5) in paragraph (7) (as so redesignated)--
                    (A) by striking ``method of instruction'' and 
                inserting ``method''; and
                    (B) by inserting ``rigorous and challenging'' after 
                ``required'';
            (6) in paragraph (11)(A) (as so redesignated), by striking 
        ``an'' and inserting ``a public or nonprofit private'';
            (7) in paragraph (18) (as so redesignated)--
                    (A) in the paragraph heading, by striking 
                ``training and employment'' and inserting ``fields''; 
                and
                    (B) by striking ``training and employment'' and 
                inserting ``fields'';
            (8) in paragraph (19) (as so redesignated), by striking 
        ``the Commonwealth of the Northern'' and all that follows, and 
        inserting ``and the Commonwealth of the Northern Mariana 
        Islands.'';
            (9) by inserting after paragraph (21) (as so redesignated) 
        the following:
            ``(22) Scientifically based research.--The term 
        `scientifically based research' has the meaning given that term 
        in section 9101(37) of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 780137)).'';
            (10) in paragraph (25) (as so redesignated)--
                    (A) in subparagraph (C), by striking ``training and 
                employment'' and inserting ``fields'';
                    (B) in subparagraph (E), by striking ``and'';
                    (C) in subparagraph (F)--
                            (i) by striking ``individuals with other 
                        barriers to educational achievement, 
                        including''; and
                            (ii) by striking the period and inserting 
                        ``; and''; and
                    (D) by inserting after subparagraph (F) the 
                following:
                    ``(G) individuals with other barriers to 
                educational achievement, as determined by the State.''.
            (11) in paragraph (28) (as so redesignated), by striking 
        ``section 2'' and inserting ``section 2(a)(4)'';
            (12) in paragraph (29) (as so redesignated)--
                    (A) by inserting ``of subsection (a)'' after 
                ``paragraph (2)''; and
                    (B) by striking ``paragraph (5)(A) of such 
                section'' and inserting ``paragraph (5)(A) of such 
                subsection''; and
            (13) by amending paragraph (30)(A) (as so redesignated) to 
        read as follows:
                    ``(A) offer a sequence of course that--
                            ``(i) provides individuals with the 
                        rigorous and challenging academic and technical 
                        knowledge and skills the individuals need to 
                        prepare for further education and for careers 
                        (other than careers requiring a master's or 
                        doctoral degree) in current or emerging 
                        employment sectors; and
                            ``(ii) provides, at the postsecondary 
                        level, for a 1-year certificate, an associate 
                        degree, or industry recognized credential; 
                        and''.

SEC. 4. TRANSITION PROVISIONS.

    Section 4 (20 U.S.C. 2303) is amended--
            (1) by striking ``Applied Technology'' and inserting 
        ``Technical''; and
            (2) by striking ``the Carl D. Perkins Vocational and 
        Applied Technology Education Amendments of 1998'' and inserting 
        ``the Vocational and Technical Education for the Future Act''.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

    Section 8 (20 U.S.C. 2307) is amended by striking ``, and title II) 
such sums'' and all that follows and inserting ``) $1,307,000,000 for 
fiscal year 2005 and such sums as may be necessary for each of fiscal 
years 2006 through 2010.''.

SEC. 6. PROHIBITIONS.

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

``SEC. 9. PROHIBITIONS.

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

SEC. 7. ALLOTMENT AND ALLOCATION TO STATES.

    (a) Allotment for National Activities for 2005.--Section 111(a)(C) 
is amended to read as follows:
                    ``(C) 0.54 percent to carry out section 114(d).''.
    (b) Technical Amendments.--Section 111(a)(3) (20 U.S.C. 2321(a)(3)) 
is amended by striking ``(or in the case of fiscal year 1999'' and all 
that follows through ``Applied Amendments of 1998)'' each place it 
appears.
    (c) Within State Allocation.--Section 112 (20 U.S.C. 2322) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``85 percent'' and 
                        inserting ``88 percent'' both places it 
                        appears;
                            (ii) by striking ``10 percent'' and 
                        inserting ``18.3 percent''; and
                            (iii) by inserting ``, except as specified 
                        in subsection (d)'' before the period; and
                    (B) in paragraph (3), by striking ``5 percent'' and 
                inserting ``2 percent'';
            (2) in subsection (c)(1), by amending subparagraph (D) to 
        read as follows:
                    ``(D) situations in which eligible recipients 
                desire additional funding to carry out effectively the 
                activity described in section 135(b)(3).''; and
            (3) by amending paragraph (2) of subsection (c) to read as 
        follows:
            ``(2) Special rule.--Each eligible agency shall distribute 
        grant funds described in paragraph (1) to eligible recipients 
        for activities described in subparagraph (D) of such paragraph 
        in an amount at least equal to the amount allotted to the 
        eligible agency for fiscal year 2004 under section 203 of this 
        Act as such section was in effect on the day before the date of 
        enactment of the Vocational and Technical Education for the 
        Future Act.''.

SEC. 8. ACCOUNTABILITY.

    (a) Purpose.--Section 113(a) (20 U.S.C. 2323(a)) is amended--
            (1) by striking ``establish a State'' and inserting 
        ``support a State and local''; and
            (2) by inserting ``and its eligible recipients'' after 
        ``effectiveness of the State''.
    (b) State Performance Measures.--Section 113(b) (20 U.S.C. 2323(b)) 
is amended--
            (1) in paragraph (2)--
                    (A) by redesignating subparagraphs (B) through (D) 
                as subparagraphs (C) through (E), respectively;
                    (B) in subparagraph (A)--
                            (i) in the subparagraph heading, by 
                        inserting ``for secondary students'' after 
                        ``performance'';
                            (ii) by inserting ``of secondary students 
                        that are, to the extent practicable, valid and 
                        reliable and'' after ``indicators of 
                        performance'';
                            (iii) in clause (i)--
                                    (I) by striking ``State established 
                                academic,'' and inserting ``academic 
                                content and achievement standards, as 
                                established by the State under section 
                                1111(b)(1) of the Elementary and 
                                Secondary Education Act of 1965 (20 
                                U.S.C. 6311(b)(1)),''; and
                                    (II) by inserting ``, including 
                                secondary school student attainment of 
                                postsecondary credits'';
                            (iv) in clause (ii)--
                                    (I) by striking ``or its recognized 
                                equivalent'' and inserting ``or the 
                                General Equivalency Diploma (GED) 
                                (including recognized alternative 
                                standards for individuals with 
                                disabilities),''; and
                                    (II) by striking ``, or a 
                                postsecondary degree or credential'';
                            (v) in clause (iii), by striking 
                        ``Placement'' and inserting ``Student 
                        graduation rates (as described in section 
                        1111(b)(2)(C)(vi) of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 
                        6311(b)(2)(C)(vi)), placement''; and
                            (vi) by striking clause (iv);
                    (C) by inserting after subparagraph (A) the 
                following:
                    ``(B) Core indicators of performance for 
                postsecondary students.--Each eligible agency shall 
                identify in the State plan core indicators of 
                performance of postsecondary students that include, at 
                a minimum, measures of each of the following:
                            ``(i) Student attainment of challenging 
                        academic and vocational and technical skill 
                        proficiencies.
                            ``(ii) Student attainment of a 
                        postsecondary degree or credential.
                            ``(iii) Placement in, retention in, and 
                        completion of, postsecondary education or 
                        advanced training, placement in military 
                        service, or placement or retention in 
                        employment.
                            ``(iv) Student participation in and 
                        completion of vocational and technical 
                        education programs in nontraditional fields.''; 
                        and
                    (D) in subparagraph (D) (as so redesignated) by 
                inserting ``vocational and technical education'' after 
                ``has developed State''; and
            (2) in paragraph (3)--
                    (A) by amending the paragraph heading to read as 
                follows:
            ``(3) State levels of performance.--'';
                    (B) in subparagraph (A)(i)--
                            (i) by striking ``paragraph (2)(A)'' and 
                        inserting ``paragraphs (2)(A) and (B)''; and
                            (ii) in subclause (II), by striking ``to 
                        continually'' and all that follows through 
                        ``performance'', and inserting ``to make 
                        continuous and substantial improvement in the 
                        academic and vocational and technical 
                        achievement'';
                    (C) in subparagraph (A)(v)--
                            (i) in the clause heading by striking ``and 
                        5th'' and inserting ``5th, and 6th''; and
                            (ii) by striking ``and fifth'' and 
                        inserting, ``fifth, and sixth'';
                    (D) in subparagraph (A)(vi)(II), by inserting ``and 
                substantial'' after ``continuous''; and
                    (E) in subparagraph (A)(vii), by striking ``under 
                clause (iii) or (iv)'' and inserting ``under clause 
                (iii) or (v)''.
    (c) Local Levels of Performance.--Section 113(b) is further amended 
by adding at the end the following:
            ``(4) Local levels of performance.--
                    ``(A) Local adjusted levels of performance for core 
                indicators of performance.--
                            ``(i) In general.--Each eligible recipient 
                        shall establish in the local plan submitted 
                        under section 134, levels of performance for 
                        each of the core indicators of performance 
                        described in paragraphs (2)(A) and (B) for 
                        vocational and technical education activities 
                        authorized under this title. The levels of 
                        performance established under this subparagraph 
                        shall, at a minimum--
                                    ``(I) be expressed in a percentage 
                                or numerical form, so as to be 
                                objective, quantifiable, and 
                                measurable; and
                                    ``(II) require the eligible 
                                recipient to make continuous and 
                                substantial improvement in the academic 
                                and vocational and technical 
                                achievement of vocational and technical 
                                education students.
                            ``(ii) Identification in the local plan.--
                        Each eligible recipient shall identify, in the 
                        local plan submitted under section 134, levels 
                        of performance for each of the core indicators 
                        of performance for the first 2 program years 
                        covered by the local plan.
                            ``(iii) Agreement on local adjusted levels 
                        of performance for the first 2 years.--The 
                        eligible agency and each eligible recipient 
                        shall reach agreement on the levels of 
                        performance for each of the core indicators of 
                        performance, for the first 2 program years 
                        covered by the local plan, taking into account 
                        the levels identified in the local plan under 
                        clause (ii) and the factors described in clause 
                        (v). The levels of performance agreed to under 
                        this clause shall be considered to be the local 
                        adjusted level of performance for the eligible 
                        recipient for such years and shall be 
                        incorporated into the local plan prior to the 
                        approval of such plan.
                            ``(iv) Agreement on local adjusted levels 
                        of performance for 3rd, 4th, 5th, and 6th 
                        years.--Prior to the third program year covered 
                        by the local plan, the eligible agency and each 
                        eligible recipient shall reach agreement on the 
                        local adjusted levels of performance for each 
                        of the core indicators of performance for the 
                        third, fourth, fifth, and sixth program years 
                        covered by the local plan, taking into account 
                        the factors described in clause (v). The local 
                        adjusted levels of performance agreed to under 
                        this clause shall be considered to be the local 
                        adjusted levels of performance for the eligible 
                        recipient for such years and shall be 
                        incorporated into the local plan.
                            ``(v) Factors.--The agreement described in 
                        clause (iii) or (iv) shall take into account--
                                    ``(I) how the levels of performance 
                                involved compare with the local 
                                adjusted levels of performance 
                                established for other eligible 
                                recipients taking into account factors 
                                including the characteristics of 
                                participants when the participants 
                                entered the program and the services or 
                                instruction to be provided; and
                                    ``(II) the extent to which such 
                                levels of performance promote 
                                continuous improvement on the 
                                indicators of performance by such 
                                eligible recipient.
                            ``(vi) Revisions.--If unanticipated 
                        circumstances arise with respect to an eligible 
                        recipient resulting in a significant change in 
                        the factors described in clause (v)(II), the 
                        eligible recipient may request that the local 
                        adjusted levels of performance agreed to under 
                        clause (iii) or (iv) be revised. The eligible 
                        agency shall issue objective criteria and 
                        methods for making such revisions.
                    ``(B) Levels of performance for additional 
                indicators.--Each eligible recipient may identify in 
                the local plan, local levels of performance for any 
                additional indicators of performance. Such levels shall 
                be considered to be the local levels of performance for 
                purposes of this title.
                    ``(C) Report.--Each eligible recipient shall 
                publicly report, on an annual basis, its progress in 
                achieving its levels of performance on the core 
                indicators of performance.''.

SEC. 9. NATIONAL ACTIVITIES.

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

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

    (a) Assistance for the Outlying Areas.--Section 115 (20 U.S.C. 
2325) is amended by striking subsections (b), (c), and (d).
    (b) Native American Program.--Section 116 (20 U.S.C. 2326) is 
amended--
            (1) in subsection (a), by inserting a period at the end of 
        paragraph (5);
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``subsection 
                (d)'' and inserting ``subsection (c)'';
                    (B) in paragraph (2), by striking ``(other than in 
                subsection (i))''; and
                    (C) by amending paragraph (5) to read as follows:
            ``(5) Regulations.--If the Secretary promulgates any 
        regulations applicable to subsection (b)(2), the Secretary 
        shall confer with, and allow participation by, representatives 
        of Indian tribes, tribal organizations, and individual tribal 
        members.''; and
            (3) in subsection (c)(2)(A), by inserting ``postsecondary'' 
        after ``enrolled in''.
    (c) Needs Estimate for Tribally Controlled Institutions.--Section 
117 (20 U.S.C. 2327) is amended--
            (1) by striking subsection (g) and redesignating 
        subsections (h) and (i) as subsections (g) and (h), 
        respectively; and
            (2) in subsection (h) (as redesignated)--
                    (A) by striking ``1999'' and inserting ``2005''; 
                and
                    (B) by striking ``4 succeeding fiscal years'' and 
                inserting ``5 succeeding fiscal years''.
    (d) Occupational and Employment Information.--Section 118 (20 
U.S.C. 2328) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``individuals'' 
                and all that follows and inserting ``students (and 
                parents, as appropriate) regarding postsecondary 
                education and training and preparation for high wage, 
                high skill occupations;'';
                    (B) in paragraph (2), by inserting ``academic and 
                vocational and technical'' after ``resources that 
                relate'';
                    (C) in paragraph (3),
                            (i) by striking ``knowledge and skills'' 
                        and inserting ``knowledge, skills, and 
                        occupational information''; and
                            (ii) by striking the period at the end and 
                        inserting a semicolon; and
                    (D) in paragraph (4), by inserting 
                ``postsecondary'' after ``career-related''; and
            (2) in subsection (f), by striking ``1999 through 2003'' 
        and inserting ``2005 through 2010''.

SEC. 11. STATE ADMINISTRATION.

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

``SEC. 121. STATE ADMINISTRATION.

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

SEC. 12. STATE PLAN.

    Section 122 (20 U.S.C. 2342) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``5-year period'' 
                and inserting ``6-year period'';
                    (B) in paragraph (2)(B), by striking ``5 year State 
                plan'' and inserting ``6-year period''; and
                    (C) in paragraph (3), by striking ``(including 
                employers, labor organizations, and parents)'' and 
                inserting ``(including charter school authorizers and 
                organizers, employers, labor organizations, parents, 
                students, and community organizations)'';
            (2) in subsection (b)(1), by striking ``teachers, eligible 
        recipients, parents, students, interested community members'' 
        and inserting ``academic and vocational and technical education 
        teachers, eligible recipients, charter school authorizers and 
        organizers, parents, students, interested community members 
        (including parent and community organizations)'';
            (3) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) by redesignating subparagraphs (A) 
                        through (D) as subparagraphs (B) through (E), 
                        respectively, and inserting before such 
                        subparagraphs (as so redesignated) the 
                        following:
                    ``(A) the development of model sequences of courses 
                for vocational and technical content areas that--
                            ``(i) incorporate both secondary and 
                        postsecondary education elements;
                            ``(ii) include rigorous and challenging 
                        academic content and vocational and technical 
                        content in a coordinated, nonduplicative 
                        progression of courses;
                            ``(iii) lead to a postsecondary 1-year 
                        certificate, associate's or baccalaureate 
                        degree, or a proficiency credential in 
                        conjunction with a secondary school diploma; 
                        and
                            ``(iv) may be adopted by local educational 
                        agencies and postsecondary institutions to be 
                        offered as an option to students (and their 
                        parents as appropriate), when choosing future 
                        coursework.'';
                            (ii) in subparagraph (B) (as so 
                        redesignated), by inserting ``and how the 
                        eligible agency will distribute information 
                        identifying eligible recipients that offer 
                        elements of the model sequences of courses'' 
                        before the semicolon;
                            (iii) by amending subparagraph (C) (as so 
                        redesignated) to read as follows:
                    ``(C) the criteria that will be used by the 
                eligible agency to evaluate and approve eligible 
                recipients for funds under this title, including 
                criteria to assess the extent to which the local plan 
                will promote--
                            ``(i) levels of high academic achievement; 
                        and
                            ``(ii) levels of high technical skill 
                        attainment;'';
                            (iv) in subparagraph (D) (as so 
                        redesignated)--
                                    (I) by inserting ``, both 
                                academically and technically,'' after 
                                ``students''; and
                                    (II) by striking ``; and'' and 
                                inserting ``, and how participating 
                                students will be made aware of such 
                                opportunities;'';
                            (v) in subparagraph (E) (as so 
                        redesignated), by striking the period and 
                        inserting ``aligned with challenging and 
                        rigorous academic content;''; and
                            (vi) by inserting after subparagraph (E) 
                        (as so redesignated) the following:
                    ``(F) the process by which the eligible agency will 
                ensure that all vocational and technical education 
                programs carried out under this Act include either the 
                secondary or postsecondary elements of the model 
                sequences of courses identified by the eligible agency, 
                with an emphasis on challenging academic and technical 
                content and, through a progression of courses, leads to 
                a postsecondary 1-year certificate, associate's or 
                baccalaureate degree, or a proficiency credential in 
                conjunction with a secondary school diploma;
                    ``(G) the role that any Tech-Prep consortia 
                (established under title II of this Act before its 
                repeal by section 18 of the Vocational and Technical 
                Education for the Future Act and supported by the 
                eligible agency under this Act) will play in assisting 
                local educational agencies and postsecondary 
                educational institutions in establishing agreements and 
                plans for offering model sequences of courses to 
                students at both the secondary and postsecondary 
                levels; and
                    ``(H) how funds will be used effectively to link 
                secondary and postsecondary academic and vocational and 
                technical education in a manner that increases student 
                academic and vocational and technical achievement.'';
                    (B) by amending paragraph (2) to read as follows:
            ``(2) describes how comprehensive professional development 
        (including initial teacher preparation) for vocational and 
        technical, academic, guidance, and administrative personnel 
        will be provided, especially professional development that--
                    ``(A) promotes the integration of rigorous and 
                challenging academic and vocational and technical 
                education curriculum development; and
                    ``(B) increases the academic and vocational and 
                technical knowledge of vocational and technical 
                education teachers.'';
                    (C) in paragraph (3), by inserting ``academic and 
                technical'' after ``parents,'';
                    (D) in paragraph (5)(A)--
                            (i) by inserting ``(especially as 
                        pertaining to math, science, and technology)'' 
                        after ``academic and technical skills''; and
                            (ii) by striking ``core academic, and 
                        vocational and technical, subjects'' and 
                        inserting ``core academic subjects (as defined 
                        in section 9101(11) of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 
                        7801(11))), and vocational and technical 
                        subjects''; and
                    (E) by striking paragraph (19) and redesignating 
                paragraphs (20) and (21) as paragraphs (19) and (20), 
                respectively; and
            (4) by striking subsections (d) and (f) and redesignating 
        subsection (e) as subsection (d).

SEC. 13. IMPROVEMENT PLANS.

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

``SEC. 123. IMPROVEMENT PLANS.

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

SEC. 14. STATE LEADERSHIP ACTIVITIES.

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

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

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

SEC. 16. LOCAL PLAN FOR VOCATIONAL AND TECHNICAL EDUCATION PROGRAMS.

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

SEC. 17. LOCAL USE OF FUNDS.

    Section 135 (20 U.S.C. 2355) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``to ensure 
                learning in the core academic'' and inserting ``as 
                established in the State-developed model sequences of 
                courses described in section 122(c)(1)(A) to ensure 
                learning in the core academic subjects (as defined by 
                section 9101(11) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7801(11)))'';
                    (B) by striking paragraph (8);
                    (C) by redesignating paragraphs (2) through (7) as 
                paragraphs (4) through (9), respectively, and inserting 
                after paragraph (1) the following:
            ``(2) link secondary vocational and technical education and 
        postsecondary vocational and technical education, including 
        offering model sequences of courses and implementing Tech-Prep 
        programs;
            ``(3) support tech-prep programs (if the eligible recipient 
        receives the funds from the eligible agency under section 
        112(a)(1) that--
                    ``(A) are carried out under an articulation 
                agreement between the participants in the consortium, 
                which shall include--
                            ``(i) a local educational agency, an 
                        intermediate educational agency or area 
                        vocational and technical education school 
                        serving secondary school students, or a 
                        secondary school funded by the Bureau of Indian 
                        Affairs; and
                            ``(ii)(I) a nonprofit institution of higher 
                        education that offers--
                                    ``(aa) a 2 or 4-year degree 
                                program, or a 2-year certificate 
                                program, and is qualified as 
                                institutions of higher education 
                                pursuant to section 102 of the Higher 
                                Education Act of 1965 (20 U.S.C. 1002) 
                                (except those institutions described in 
                                section 102(a)(1)(C) of such Act), 
                                including an institution receiving 
                                assistance under the Tribally 
                                Controlled College or University 
                                Assistance Act of 1978 (25 U.S.C. 1801 
                                et seq.) and a tribally controlled 
                                postsecondary vocational and technical 
                                institution; or
                                    ``(bb) a 2-year apprenticeship 
                                program that follows secondary 
                                instruction, if such nonprofit 
                                institution of higher education is not 
                                prohibited from receiving assistance 
                                under part B of title IV of the Higher 
                                Education Act of 1965 (20 U.S.C. 1071 
                                et seq.) pursuant to the provisions of 
                                section 435(a)(3) of such Act (20 
                                U.S.C. 1083(a)); or
                                    ``(II) a proprietary institution of 
                                higher education that offers a 2-year 
                                associate degree program and is 
                                qualified as an institution of higher 
                                education pursuant to section 102 of 
                                the Higher Education Act of 1965 (20 
                                U.S.C. 1002), if such proprietary 
                                institution of higher education is not 
                                subject to a default management plan 
                                required by the Secretary,
                        and may include employers and labor 
                        organizations;
                    ``(B) consist of a minimum of 2 years of secondary 
                school preceding graduation and a minimum of 2 years of 
                higher education, or an apprenticeship program of at 
                least 2 years following secondary instruction;
                    ``(C) meet academic standards developed by the 
                State, including standards developed under section 1111 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 6311) for secondary students, and support 
                proficiency in mathematics, science, reading, writing, 
                communications, and technologies;
                    ``(D) are comprised of model sequences of courses 
                that integrate rigorous and challenging academics and 
                vocational and technical education;
                    ``(E) provide technical preparation in a career 
                field such as engineering technology, applied science, 
                a mechanical, industrial, or practical art or trade, 
                agriculture, health occupations, business, or applied 
                economics;
                    ``(F) that use, if appropriate and available, work-
                based or worksite learning in conjunction with academic 
                and vocational and technical education;
                    ``(G) that use educational technology and distance 
                learning, as appropriate, to involve all the consortium 
                partners more fully in the development and operation of 
                programs; and
                    ``(H) that facilitate and promote close working 
                relationships among eligible recipients to ensure that 
                programs within a geographic area are closely 
                integrated with Tech-Prep program activities.'';
                    (D) in paragraph (5) (as so redesignated)--
                            (i) by inserting ``, and the related math 
                        and science education,'' after ``use of 
                        technology in vocational and technical 
                        education'';
                            (ii) in subparagraph (B)--
                                    (I) by inserting ``(including the 
                                math and science knowledge that 
                                provides a strong basis for such 
                                skills)'' after ``technical skills''; 
                                and
                                    (II) by striking ``and 
                                telecommunications field'' and 
                                inserting ``fields''; and
                            (iii) in subparagraph (C)--
                                    (I) by striking ``work'' and 
                                inserting ``collaborate''; and
                                    (II) by inserting ``that improve 
                                the math and science knowledge of 
                                students'' after ``mentoring 
                                programs'';
                    (E) in paragraph (6) (as so redesignated)--
                            (i) by striking ``teachers'' and inserting 
                        ``secondary and postsecondary teachers, 
                        instructors,''; and
                            (ii) in subparagraph (A), by striking ``in 
                        effective teaching skills based on research'' 
                        and inserting ``in effective integration of 
                        rigorous and challenging academic and 
                        vocational and technical education, in 
                        effective teaching skills based on 
                        scientifically based research'';
                    (F) in paragraph (8) (as so redesignated), by 
                inserting ``and'' after the semicolon; and
                    (G) in paragraph (9) (as so redesignated), by 
                striking ``; and'' and inserting a period;
            (2) in subsection (c)--
                    (A) in paragraph (2), by inserting ``, regarding 
                postsecondary options, including for adult students who 
                are changing careers or updating skills'' before the 
                semicolon;
                    (D) in paragraph (5), by inserting ``including the 
                establishment and operation of special arrangements 
                with industry partners that allow qualified industry 
                professionals to serve as faculty in postsecondary 
                programs'' before the semicolon;
                    (F) in paragraph (9), by inserting ``that address 
                the integration of academic and vocational and 
                technical education and'' after ``teacher preparation 
                programs'';
                    (E) by redesignating paragraphs (10) through (15) 
                as paragraphs (11) through (16); and inserting after 
                paragraph (9) the following:
            ``(10) to develop and expand postsecondary program 
        offerings at times and in formats accessible by students, 
        including the use of distance education;''; and
                    (G) in paragraph (11) (as so redesignated), by 
                inserting ``, including development of new proposed 
                model sequence of courses for consideration by the 
                eligible agency'' before the semicolon; and
            (3) in subsection (d), by striking ``5 percent'' and 
        inserting ``2 percent''.

SEC. 18. REPEAL OF TECH-PREP EDUCATION ACT.

    Title II of the Carl D. Perkins Vocational and Technical Education 
Act of 1998 (20 U.S.C. 2071 et seq.) is repealed.

SEC. 19. GENERAL PROVISIONS.

    (a) Fiscal Requirements.--Section 311(b) (20 U.S.C. 2391(b)) is 
amended--
            (1) in paragraph (1)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) In general.--Except as provided in 
                subparagraphs (B), (C), and (D), a State shall receive 
                its full allotment of funds under this Act for any 
                fiscal year only if the Secretary determines that the 
                fiscal effort per student or the aggregate expenditures 
                of the State for vocational and technical education 
                programs for the fiscal year preceding the fiscal year 
                for which the determination is made was not less than 
                90 percent of the greatest such effort or expenditures 
                for any fiscal year after 2004.'';
                    (B) in subparagraph (C), by striking ``subparagraph 
                (B)'' and inserting ``subparagraph (A)''; and
                    (C) by inserting after subparagraph (C) the 
                following:
                    ``(D) Reduction of funds.--The Secretary shall 
                reduce the amount of the allotment of funds under this 
                Act for any fiscal year in the exact proportion by 
                which the State fails to meet the requirements of 
                subparagraph (A).'';
            (2) in paragraph (2), by striking ``1 percent'' and 
        inserting ``5 percent''; and
            (3) by inserting after paragraph (2) the following:
            ``(3) Definition.--For purposes of this subsection, the 
        term `preceding fiscal year' means the Federal fiscal year or 
        the 12-month fiscal period used by a State for official 
        reporting purposes, prior to the beginning of the Federal 
        fiscal year in which funds are available for obligation by the 
        Secretary.''.
    (b) Authorization of Secretary.--Section 317 (20 U.S.C. 2397) is 
repealed.
                                 <all>
```