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

                                                 Union Calendar No. 401
108th CONGRESS
  2d Session
                                H. R. 4496

                          [Report No. 108-659]

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

                           September 7, 2004

 Additional sponsors: Mr. McKeon, Mr. Norwood, Mr. Upton, Mr. Ehlers, 
                 Mr. Isakson, Mr. Burns, and Mr. Vitter

                           September 7, 2004

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on June 3, 
                                 2004]

_______________________________________________________________________

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

SEC. 4. TRANSITION PROVISIONS.

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

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

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

``SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 6. PROHIBITIONS.

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

``SEC. 9. PROHIBITIONS.

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

``Sec. 9. Prohibitions.''.

SEC. 7. ALLOTMENT AND ALLOCATION TO STATES.

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

SEC. 8. ACCOUNTABILITY.

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

SEC. 9. NATIONAL ACTIVITIES.

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

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

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

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

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

SEC. 11. STATE ADMINISTRATION.

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

``SEC. 121. STATE ADMINISTRATION.

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

SEC. 12. STATE PLAN.

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

SEC. 13. IMPROVEMENT PLANS.

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

``SEC. 123. IMPROVEMENT PLANS.

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

SEC. 14. STATE LEADERSHIP ACTIVITIES.

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

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

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

SEC. 16. ELIMINATION OF REDISTRIBUTION RULE.

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

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

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

SEC. 18. LOCAL USE OF FUNDS.

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

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

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

SEC. 20. GENERAL PROVISIONS.

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

                     ``TITLE II--GENERAL PROVISIONS

              ``Part A--Federal Administrative Provisions

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

               ``Part B--State Administrative Provisions

``Sec. 221. Joint funding.
``Sec. 222. Prohibition on use of funds to induce out-of-State 
                            relocation of businesses.
``Sec. 223. State administrative costs.
``Sec. 224. Limitation on Federal regulations.
``Sec. 225. Student assistance and other Federal programs.''.
    (b) Fiscal Requirements.--Section 211(b) (20 U.S.C. 2391(b)) (as so 
redesignated) is amended by inserting after paragraph (2) the 
following:
            ``(3) Definition.--For purposes of this subsection, the 
        term `preceding fiscal year' means the Federal fiscal year or 
        the 12-month fiscal period used by a State for official 
        reporting purposes, prior to the beginning of the Federal 
        fiscal year in which funds are available for obligation by the 
        Secretary.''.
    (c) Participation of Private School Children.--Section 217 (as so 
redesignated) is amended to read as follows:

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

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

                                                 Union Calendar No. 401

108th CONGRESS

  2d Session

                               H. R. 4496

                          [Report No. 108-659]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                           September 7, 2004

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
```