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based upon the number of children counted under
section 1124(c) in such State multiplied by the
product of—
‘‘(i) such State’s effort factor described
in paragraph (2); multiplied by
‘‘(ii) 1.30 minus such State’s equity
factor described in paragraph (3).
‘‘(B) MINIMUM.—For each fiscal year no
State shall receive under this section less than
0.5 percent of the total amount appropriated
under subsection (e) for the fiscal year.
‘‘(2) EFFORT FACTOR.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the effort factor for a State
shall be determined in accordance with the suc-
ceeding sentence, except that such factor shall not
be less than 0.95 nor greater than 1.05. The ef-
fort factor determined under this sentence shall
be a fraction the numerator of which is the prod-
uct of the 3-year average per-pupil expenditure
in the State multiplied by the 3-year average per
capita income in the United States and the de-
nominator of which is the product of the 3-year
average per capita income in such State multi-
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plied by the 3-year average per-pupil expendi-
ture in the United States.
‘‘(B) COMMONWEALTH OF PUERTO RICO.—
The effort factor for the Commonwealth of Puerto
Rico shall be equal to the lowest effort factor cal-
culated under subparagraph (A) for any State.
‘‘(3) EQUITY FACTOR.—
‘‘(A) DETERMINATION.—
‘‘(i) IN GENERAL.—Except as provided
in subparagraph (B), the Secretary shall
determine the equity factor under this sec-
tion for each State in accordance with
clause (ii).
‘‘(ii) COMPUTATION.—
‘‘(I) 
IN
GENERAL.—For 
each
State, the Secretary shall compute a
weighted coefficient of variation for the
per-pupil expenditures of local edu-
cational agencies in accordance with
subclauses (II), (III), and (IV).
‘‘(II) VARIATION.—In computing
coefficients of variation, the Secretary
shall weigh the variation between per-
pupil expenditures in each local edu-
cational agency and the average per-
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pupil expenditures in the State accord-
ing to the number of pupils served by
the local educational agency.
‘‘(III) NUMBER
OF
PUPILS.—In
determining the number of pupils
under this paragraph served by each
local educational agency and in each
State, the Secretary shall multiply the
number of children from low-income
families by a factor of 1.4.
‘‘(IV) 
ENROLLMENT
REQUIRE-
MENT.—In computing coefficients of
variation, the Secretary shall include
only those local educational agencies
with an enrollment of more than 200
students.
‘‘(B) SPECIAL RULE.—The equity factor for
a State that meets the disparity standard de-
scribed in section 222.162 of title 34, Code of
Federal Regulations (as such section was in ef-
fect on the day preceding the date of enactment
of the Better Education for Students and Teach-
ers Act) or a State with only 1 local educational
agency shall be not greater than 0.10.
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‘‘(C) REVISIONS.—The Secretary may revise
each State’s equity factor as necessary based on
the advice of independent education finance
scholars to reflect other need-based costs of local
educational agencies in addition to low-income
student enrollment, such as differing geographic
costs, costs associated with students with disabil-
ities, children with limited English-proficiency
or other meaningful educational needs, which de-
serve additional support. In addition, after ob-
taining the advice of independent education fi-
nance scholars, the Secretary may revise each
State’s equity factor to incorporate other valid
and accepted methods to achieve adequacy of
educational opportunity that may not be re-
flected in a coefficient of variation method.
‘‘(c) USE OF FUNDS.—All funds awarded to each State
under this section shall be allocated to local educational
agencies and schools on a basis consistent with the distribu-
tion of other funds to such agencies and schools under sec-
tions 1124, 1124A, and 1125 to carry out activities under
this part.
‘‘(d) MAINTENANCE OF EFFORT.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a State is entitled to receive its full allot-
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ment of funds under this section for any fiscal year
if the Secretary finds that either the combined fiscal
effort per student or the aggregate expenditures within
the State with respect to the provision of free public
education for the fiscal year preceding the fiscal year
for which the determination is made was not less
than 90 percent of such combined fiscal effort or ag-
gregate expenditures for the second fiscal year pre-
ceding the fiscal year for which the determination is
made.
‘‘(2) REDUCTION
OF
FUNDS.—The Secretary
shall reduce the amount of funds awarded to any
State under this section in any fiscal year in the
exact proportion to which the State fails to meet the
requirements of paragraph (1) by falling below 90
percent of both the fiscal effort per student and aggre-
gate expenditures (using the measure most favorable
to the State), and no such lesser amount shall be used
for computing the effort required under paragraph (1)
for subsequent years.
‘‘(3) WAIVERS.—The Secretary may waive, for 1
fiscal year only, the requirements of this subsection if
the Secretary determines that such a waiver would be
equitable due to exceptional or uncontrollable cir-
cumstances such as a natural disaster or a precipi-
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tous and unforeseen decline in the financial resources
of the State.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section
$200,000,000 for fiscal year 2002 and such sums as may
be necessary for each of the 6 succeeding fiscal years.
‘‘(f) STUDY, EVALUATION AND REPORT OF SCHOOL FI-
NANCE EQUALIZATION.—(1) The Secretary shall conduct a
study to evaluate and report to the Congress on the degree
of disparity in expenditures per pupil among local edu-
cational agencies within and across each of the fifty States
and the District of Columbia. The Secretary shall also ana-
lyze the trends in State school finance legislation and judi-
cial action requiring that States equalize resources. The
Secretary shall evaluate and report to the Congress whether
or not it can be determined if these actions have resulted
in an improvement in student performance.
‘‘(2) In preparing this report, the Secretary may also
consider the following: Various measures of determining
disparity; the relationship between education expenditures
and student performance; the effect of Federal education as-
sistance programs on the equalization of school finance re-
sources; and the effects of school finance equalization on
local and State tax burdens.
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‘‘(3) Such reports shall be submitted to the Congress
not later than one year after the date of enactment of the
Better Education for Students and Teachers Act.
‘‘SEC. 1126. SPECIAL ALLOCATION PROCEDURES.
‘‘(a) ALLOCATIONS FOR NEGLECTED CHILDREN.—
‘‘(1) IN GENERAL.—If a State educational agen-
cy determines that a local educational agency in the
State is unable or unwilling to provide for the special
educational needs of children who are living in insti-
tutions for neglected or delinquent children as de-
scribed in section 1124(c)(1)(C), the State educational
agency shall, if such agency assumes responsibility for
the special educational needs of such children, receive
the portion of such local educational agency’s alloca-
tion under sections 1124, 1124A, and 1125 that is at-
tributable to such children.
‘‘(2) SPECIAL RULE.—If the State educational
agency does not assume such responsibility, any other
State or local public agency that does assume such re-
sponsibility shall receive that portion of the local edu-
cational agency’s allocation.
‘‘(b) ALLOCATIONS
AMONG
LOCAL
EDUCATIONAL
AGENCIES.—The State educational agency may allocate the
amounts of grants under sections 1124, 1124A, and 1125
among the affected local educational agencies—
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‘‘(1) if 2 or more local educational agencies
serve, in whole or in part, the same geographical
area;
‘‘(2) if a local educational agency provides free
public education for children who reside in the school
district of another local educational agency; or
‘‘(3) to reflect the merger, creation, or change of
boundaries of 1 or more local educational agencies.
‘‘(c) REALLOCATION.—If a State educational agency
determines that the amount of a grant a local educational
agency would receive under sections 1124, 1124A, and 1125
is more than such local educational agency will use, the
State educational agency shall make the excess amount
available to other local educational agencies in the State
that need additional funds in accordance with criteria es-
tablished by the State educational agency.
‘‘SEC. 1127. CARRYOVER AND WAIVER.
‘‘(a) LIMITATION ON CARRYOVER.—Notwithstanding
section 421 of the General Education Provisions Act or any
other provision of law, not more than 15 percent of the
funds allocated to a local educational agency for any fiscal
year under this subpart (but not including funds received
through any reallocation under this subpart) may remain
available for obligation by such agency for one additional
fiscal year.
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‘‘(b) WAIVER.—A State educational agency may, once
every 3 years, waive the percentage limitation in subsection
(a) if—
‘‘(1) the agency determines that the request of a
local educational agency is reasonable and necessary;
or
‘‘(2) supplemental appropriations for this sub-
part become available.
‘‘(c) EXCLUSION.—The percentage limitation under
subsection (a) shall not apply to any local educational
agency that receives less than $50,000 under this subpart
for any fiscal year.’’.
SEC. 120E. SCHOOL YEAR EXTENSION ACTIVITIES.
Subpart 1 of part A of title I (20 U.S.C. 6311 et seq.)
is amended by adding at the end the following:
‘‘SEC. 1120C. SCHOOL YEAR EXTENSION ACTIVITIES.
‘‘(a) USE OF FUNDS.—
‘‘(1) IN GENERAL.—A local educational agency
may use funds received under this part to—
‘‘(A) to extend the length of the school year
to 210 days, including necessary increases in
compensation to employees;
‘‘(B) conduct outreach to and consult with
community members, including parents, stu-
dents, and other stakeholders, to develop a plan
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to extend learning time within or beyond the
school day or year; and
‘‘(C) research, develop, and implement
strategies, including changes in curriculum and
instruction.
‘‘(b) APPLICATION.—A local educational agency desir-
ing to use funds under this section shall submit an applica-
tion to the State educational agency at such time, in such
manner, and accompanied by such information as the agen-
cy may require. Each application shall describe—
‘‘(1) the activities to be carried out under this
section;
‘‘(2) any study or other information-gathering
project for which funds will be used;
‘‘(3) the strategies and methods the applicant
will use to enrich and extend learning time for all
students and to maximize high quality instruction in
the core academic areas during the school day, such
as block scheduling, team teaching, longer school days
or years, and extending learning time through new
distance-learning technologies;
‘‘(4) the strategies and methods the applicant
will use, including changes in curriculum and in-
struction, to challenge and engage students and to
maximize the productiveness of common core learning
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time, as well as the total time students spend in
school and in school-related enrichment activities;
‘‘(5) the strategies and methods the applicant in-
tends to employ to provide continuing financial sup-
port for the implementation of any extended school
day or school year;
‘‘(6) with respect to any application to carry out
activities described in subsection (b)(1)(A), a descrip-
tion of any feasibility or other studies demonstrating
the sustainability of a longer school year;
‘‘(7) the extent of involvement of teachers and
other school personnel in investigating, designing, im-
plementing and sustaining the activities assisted
under this section;
‘‘(8) the process to be used for involving parents
and other stakeholders in the development and imple-
mentation of the activities assistance under this sec-
tion;
‘‘(9) any cooperation or collaboration among
public housing authorities, libraries, businesses, muse-
ums, community-based organizations, and other com-
munity groups and organizations to extend engaging,
high-quality, standards-based learning time outside of
the school day or year, at the school or at some other
site;
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‘‘(10) the training and professional development
activities that will be offered to teachers and others
involved in the activities assisted under this section;
‘‘(11) the goals and objectives of the activities as-
sisted under this section, including a description of
how such activities will assist all students to reach
State standards;
‘‘(12) the methods by which the applicant will
assess progress in meeting such goals and objectives;
and
‘‘(13) how the applicant will use funds provided
under this section in coordination with funds pro-
vided under other Federal laws.
SEC. 120F. ADEQUACY OF FUNDING OF TARGETED GRANTS
TO LOCAL EDUCATIONAL AGENCIES IN FIS-
CAL YEARS AFTER FISCAL YEAR 2001.
(a) FINDINGS.—Congress makes the following findings:
(1) The current Basic Grant Formula for the
distribution of funds under part A of title I of the El-
ementary and Secondary Education Act of 1965 (20
U.S.C. 6311 et seq.), often does not provide funds for
the economically disadvantaged students for which
such funds are targeted.
(2) Any school district in which at least two per-
cent of the students live below the poverty level quali-
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fies for funding under the Basic Grant Formula. As
a result, 9 out of every 10 school districts in the coun-
try receive some form of aid under the Formula.
(3) Fifty-eight percent of all schools receive at
least some funding under title I of the Elementary
and Secondary Education Act of 1965, including
many suburban schools with predominantly well-off
students.
(4) One out of every 5 schools with concentra-
tions of poor students between 50 and 75 percent re-
ceive no funding at all under title I of the Elemen-
tary and Secondary Education Act of 1965.
(5) In passing the Improving America’s Schools
Act in 1994, Congress declared that grants under title
I of the Elementary and Secondary Education Act of
1965 would more sharply target high poverty schools
by using the Targeted Grant Formula, but annual
appropriation Acts have prevented the use of that
Formula.
(6) The advantage of the Targeted Grant For-
mula over other funding formulas under title I of the
Elementary and Secondary Education Act of 1965 is
that the Targeted Grant Formula provides increased
grants per poor child as the percentage of economi-
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cally disadvantaged children in a school district in-
creases.
(7) Studies have found that the poverty of a
child’s family is much more likely to be associated
with educational disadvantage if the family lives in
an area with large concentrations of poor families.
(8) States with large populations of high poverty
students would receive significantly more funding if
more funds under title I of the Elementary and Sec-
ondary Education Act of 1965 were allocated through
the Targeted Grant Formula.
(9) Congress has an obligation to allocate funds
under title I of the Elementary and Secondary Edu-
cation Act of 1965 so that such funds will positively
affect the largest number of economically disadvan-
taged students.
(b) LIMITATION ON ALLOCATION OF TITLE I FUNDS
CONTINGENT
ON
ADEQUATE
FUNDING
OF
TARGETED
GRANTS.—Notwithstanding any other provision of law, the
total amount allocated in any fiscal year after fiscal year
2001 for programs and activities under part A of title I
of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6311 et seq.) may not exceed the amount allo-
cated in fiscal year 2001 for such programs and activities
unless the amount available for targeted grants to local edu-
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cational agencies under section 1125 of that Act (20 U.S.C.
6335) in the applicable fiscal year is sufficient to meet the
purposes of grants under that section.
PART B—LITERACY FOR CHILDREN AND
FAMILIES
SEC. 121. READING FIRST.
Part B of title I (20 U.S.C. 6361 et seq.) is amended—
(1) by striking the part heading and inserting
the following:
‘‘PART B—LITERACY FOR CHILDREN AND
FAMILIES’’;
(2) by inserting after the part heading the fol-
lowing:
‘‘Subpart 1—William F. Goodling Even Start Family
Literacy Programs’’;
(3) in sections 1201 through 1212, by striking
‘‘this part’’ each place such term appears and insert-
ing ‘‘this subpart’’; and
(4) by adding at the end the following:
‘‘Subpart 2—Reading First’’
‘‘SEC. 1221. PURPOSES.
‘‘The purposes of this subpart are as follows:
‘‘(1) To provide assistance to States and local
educational agencies in establishing reading programs
for students in grades kindergarten through 3 that are
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grounded in scientifically based reading research, in
order to ensure that every student can read at grade
level or above by the end of the third grade.
‘‘(2) To provide assistance to States and local
educational agencies in preparing teachers, through
professional development and other support, so the
teachers can identify specific reading barriers facing
their students and so the teachers have the tools effec-
tively to help their student to learn to read.
‘‘(3) To provide assistance to States and local
educational agencies in selecting or developing screen-
ing instruments, rigorous diagnostic reading assess-
ments, and classroom-based instructional assessments.
‘‘(4) To provide assistance to States and local
educational agencies in selecting or developing effec-
tive instructional materials, programs, and strategies
to implement methods that have been proven to pre-
vent or remediate reading failure within a State or
States.
‘‘(5) To strengthen coordination among schools,
early literacy programs, and family literacy pro-
grams in order to improve reading achievement for
all children.
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‘‘SEC. 1222. FORMULA GRANTS TO STATES; COMPETITIVE
SUBGRANTS TO LOCAL AGENCIES.
‘‘(a) IN GENERAL.—In the case of each State edu-
cational agency that in accordance with section 1224 sub-
mits to the Secretary an application for a 5-year period,
the Secretary, subject to the application’s approval, shall
make a grant to the State educational agency for the uses
specified in subsections (c) and (d). The grant shall consist
of the allotment determined for the State under subsection
(b).
‘‘(b) DETERMINATION OF AMOUNT OF ALLOTMENT.—
‘‘(1) IN GENERAL.—From the total amount made
available to carry out this subpart for any fiscal year
and not reserved under section 1226, the Secretary
shall allot among each of the 50 States, the District
of Columbia, and the Commonwealth of Puerto Rico,
in accordance with paragraph (2)—
‘‘(A) 100 percent of such remaining amount
for each of the fiscal years 2002 and 2003; and
‘‘(B) 75 percent of such remaining amount
for each of the fiscal years 2004 through 2008.
‘‘(2) STATE ALLOTMENTS.—The Secretary shall
allot the amount made available under paragraph (1)
for a fiscal year among the States in proportion to
the amount all local educational agencies in a State
would receive under section 1124.
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‘‘(3) REALLOTMENT.—If any State does not
apply for an allotment under this section for any fis-
cal year, or if the State’s application is not approved,
the Secretary shall reallot such amount to the remain-
ing States in accordance with paragraph (2).
‘‘(4) RESERVATION
FROM
APPROPRIATIONS.—
From the amounts appropriated under section
1002(b)(2) to carry out this subpart for a fiscal year,
the Secretary shall—
‘‘(A) reserve 1⁄2 of 1 percent for allotments
for the Virgin Islands, Guam, American Samoa
and the Commonwealth of the Northern Mariana
Islands, to be distributed among these outlying
areas on the basis of their relative need, as deter-
mined by the Secretary in accordance with the
purposes of this subpart; and
‘‘(B) reserve 1⁄2 of 1 percent for allotments
for the Secretary of the Interior for programs
under this subpart in schools operated or funded
by the Bureau of Indian Affairs.
‘‘(c) SUBGRANTS
TO LOCAL EDUCATIONAL AGEN-
CIES.—
‘‘(1) DISTRIBUTION OF SUBGRANTS.—The Sec-
retary may make a grant to a State under this sec-
tion only if the State agrees to expend at least 80 per-
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cent of the amount of the funds provided under the
grant for the purpose of making, in accordance with
this subsection, competitive subgrants to eligible local
educational agencies.
‘‘(2) NOTICE.—A State receiving a grant under
this section shall provide notice to all eligible local
educational agencies in the State of the availability
of competitive subgrants under this subsection and of
the requirements for applying for the subgrants.
‘‘(3) LOCAL APPLICATION.—To be eligible to re-
ceive a subgrant under this subsection, an eligible
local educational agency shall submit an application
to the State at such time, in such manner, and con-
taining such information as the State may reasonably
require.
‘‘(4) DEFINITION
OF
ELIGIBLE
LOCAL
EDU-
CATIONAL AGENCY.—In this subpart the term ‘eligible
local educational agency’ means a local educational
agency that—
‘‘(A) has a high number or percentage of
students in grades kindergarten through 3 read-
ing below grade level; and
‘‘(B) has—
‘‘(i) jurisdiction over a geographic area
that includes an area designated as an em-
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powerment zone, or an enterprise commu-
nity, under part I of subchapter U of chap-
ter 1 of the Internal Revenue Code of 1986;
‘‘(ii) jurisdiction over at least 1 school
that is identified for school improvement
under section 1116(c); or
‘‘(iii) a high number or percentage of
children who are counted under section
1124(c), in comparison to other local edu-
cational agencies in the State.
‘‘(5) STATE
REQUIREMENT.—In distributing
subgrant funds to local educational agencies, a State
shall—
‘‘(A) 
provide 
the 
funds 
in 
sufficient
amounts to enable the local educational agencies
to improve reading; and
‘‘(B) provide the funds in amounts related
to the number or percentage of students in kin-
dergarten through grade 3 who are reading below
grade level.
‘‘(6) 
LOCAL
ELIGIBILITY.—In 
distributing
subgrant funds under this subsection, a local edu-
cational agency shall provide funds only to schools
that—
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‘‘(A) have a high percentage of students in
grades kindergarten through 3 reading below
grade level;
‘‘(B) are identified for school improvement
under section 1116(c); or
‘‘(C) have a high percentage of children
counted under section 1124(c).
‘‘(7) LOCAL USES OF FUNDS.—Subject to para-
graph (8), a local educational agency that receives a
subgrant under this subsection shall use the funds
provided under the subgrant to carry out the fol-
lowing activities:
‘‘(A) Selecting or developing, and admin-
istering, screening instruments, rigorous diag-
nostic reading assessments, and classroom-based
instructional assessments.
‘‘(B) Selecting or developing, and imple-
menting, a program or programs of reading in-
struction grounded on scientifically based read-
ing research that—
‘‘(i) includes the major components of
reading instruction; and
‘‘(ii) provides such instruction to all
children, including children who—
‘‘(I) may have reading difficulties;
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‘‘(II) are at risk of being referred
to special education based on these dif-
ficulties;
‘‘(III) have been evaluated under
section 614 of the Individuals with
Disabilities Education Act but, in ac-
cordance with section 614(b)(5) of such
Act, and have not been identified as
being a child with a disability (as de-
fined in section 602 of such Act);
‘‘(IV) are being served under such
Act primarily due to being identified
as being a child with a specific learn-
ing disability (as defined in section
602 of such Act) related to reading; or
‘‘(V) are identified as having lim-
ited English proficiency (as defined in
section 3501).
‘‘(C) Procuring and implementing instruc-
tional materials, including education technology
such as software and other digital curricula,
grounded on scientifically based reading re-
search.
‘‘(D) Providing professional development for
teachers of grades kindergarten through 3 that—
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‘‘(i) will prepare these teachers in all
of the major components of reading instruc-
tion;
‘‘(ii) shall include—
‘‘(I) information on instructional
materials, programs, strategies, and
approaches grounded on scientifically
based reading research, including early
intervention and reading remediation
materials, programs, and approaches;
and
‘‘(II) instruction in the use of rig-
orous diagnostic reading assessments
and other procedures that effectively
identify students who may be at risk
for reading failure or who are having
difficulty reading; and
‘‘(iii) shall be provided by eligible pro-
fessional development providers.
‘‘(E) Promoting reading and library pro-
grams that provide access to engaging reading
material.
‘‘(F) Providing training to individuals who
volunteer to be reading tutors for students to en-
able the volunteers to support instructional prac-
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tices that are based on scientific reading research
and being used by the student’s teacher.
‘‘(G) Assisting parents, through the use of
materials, programs, strategies and approaches
(including family literacy services), that are
based on scientific reading research, to help sup-
port their children’s reading development.
‘‘(H) Collecting and summarizing data—
‘‘(i) to document the effectiveness of
this subpart in individual schools and in
the local educational agency as a whole; and
‘‘(ii) to stimulate and accelerate im-
provement by identifying the schools that
produce 
significant 
gains 
in 
reading
achievement.
‘‘(I) Reporting data for all students and
categories of students identified under section
1111(b)(2)(B)(v).
‘‘(9) LOCAL PLANNING AND ADMINISTRATION.—A local
educational agency that receives a subgrant under this sub-
section may use not more than 5 percent of the funds pro-
vided under the subgrant for planning and administration.
‘‘(d) OTHER STATE USES OF FUNDS.—
‘‘(1) IN GENERAL.—A State educational agency
that receives a grant under this section may expend
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not more than a total of 20 percent of the grant funds
to carry out the activities described in paragraphs
(3), (4), and (5).
‘‘(2) PRIORITY.—A State shall give priority to
carrying out the activities described in paragraphs
(3), (4), and (5) for schools described in subsection
(c)(6).
‘‘(3) PROFESSIONAL
DEVELOPMENT.—A State
may expend not more than 100 percent of the amount
of the funds made available under paragraph (1) to
develop and implement a program of professional de-
velopment for teachers of grades kindergarten through
3 that—
‘‘(A) will prepare these teachers in all of the
major components of reading instruction;
‘‘(B) shall include—
‘‘(i) information on instructional ma-
terials, 
programs, 
strategies, 
and 
ap-
proaches grounded on scientifically based
reading research, including early interven-
tion and reading remediation materials,
programs, and approaches; and
‘‘(ii) instruction in the use of rigorous
diagnostic reading assessments and other
procedures that effectively identify students
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who may be at risk for reading failure or
who are having difficulty reading; and
‘‘(C) shall be provided by eligible profes-
sional development providers.
‘‘(4) TECHNICAL ASSISTANCE FOR LOCAL EDU-
CATIONAL AGENCIES AND SCHOOLS.—A State may ex-
pend not more than 25 percent of the amount of the
funds made available under paragraph (1) for one or
more of the following authorized State activities:
‘‘(A) Assisting local educational agencies in
accomplishing the tasks required to design and
implement a program under this subpart,
including—
‘‘(i) selecting and implementing a pro-
gram or programs of reading instruction
grounded on scientifically based reading re-
search;
‘‘(ii) selecting or developing rigorous
diagnostic reading assessments; and
‘‘(iii) identifying eligible professional
development providers to help prepare read-
ing teachers to teach students using the pro-
grams and assessments described in sub-
paragraphs (A) and (B).
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‘‘(B) Providing expanded opportunities to
students in grades kindergarten through 3 within
eligible local educational agencies for receiving
reading assistance from alternative providers
that includes—
‘‘(i) a rigorous diagnostic reading as-
sessment; and
‘‘(ii) instruction in the major compo-
nents of reading that is based on scientific
reading research.
‘‘(5) PLANNING, ADMINISTRATION, AND REPORT-
ING.—
‘‘(A) IN GENERAL.—A State may expend
not more than 25 percent of the amount of the
funds made available under paragraph (1) for
the activities described in this paragraph.
‘‘(B) PLANNING AND ADMINISTRATION.—A
State that receives a grant under this section
may expend funds made available under sub-
paragraph (A) for planning and administration
relating to the State uses of funds authorized
under this subpart, including the following:
‘‘(i) Administering the distribution of
competitive subgrants to local educational
agencies under sections 1222 and 1223.
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‘‘(ii) 
Collecting 
and 
summarizing
data—
‘‘(I) to document the effectiveness
of this subpart in individual local edu-
cational agencies and in the State as a
whole; and
‘‘(II) to stimulate and accelerate
improvement by identifying the local
educational agencies that produce sig-
nificant gains in reading achievement.
‘‘(C) ANNUAL REPORTING.—
‘‘(i) IN
GENERAL.—A State that re-
ceives a grant under this section shall ex-
pend funds provided under the grant to pro-
vide the Secretary annually with a report
on the implementation of this subpart. The
report shall include evidence that the State
is fulfilling its obligations under this sub-
part. The report shall also include the data
required under subsections (c)(7) (H) and
(I) to be reported to the State by local edu-
cational agencies. The report shall include a
specific identification of those local edu-
cational agencies that report significant
gains in reading achievement overall and
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such gains based on disaggregated data, re-
ported in the same manner as data is re-
ported under subsection (c)(7)(I).
‘‘(ii) PRIVACY PROTECTION.—Data in
the report shall be reported in a manner
that protects the privacy of individuals.
‘‘(iii) CONTRACT.—To the extent prac-
ticable, a State shall enter into a contract
with an entity that conducts scientifically
based reading research, under which con-
tract the entity will assist the State in pro-
ducing the reports required to be submitted
under this subparagraph.
‘‘(6) PRIME
TIME
FAMILY
READING
TIME.—A
State that receives a grant under this section may ex-
pend funds provided under the grant for a human-
ities-based family literacy program which bonds fam-
ilies around the acts of reading and using public li-
braries.
‘‘SEC. 1223. COMPETITIVE GRANTS TO STATES; COMPETI-
TIVE SUBGRANTS TO LOCAL AGENCIES.
‘‘(a) IN GENERAL.—For fiscal year 2004 and each suc-
ceeding fiscal year the Secretary is authorized to award
grants, on a competitive basis according to the criteria de-
scribed in subsection (b) (2) or (3), to any State educational
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agency that received a grant under section 1222, for the
use specified in subsection (c).
‘‘(b) AMOUNT AVAILABLE FOR GRANTS; CRITERIA FOR
GRANTS.—
‘‘(1) AMOUNT.—From the total amount made
available to carry out this subpart for fiscal year
2004 or any succeeding fiscal year that is not used
under section 1222 or reserved under section 1226, the
Secretary shall award grants under this section ac-
cording to the criteria described in paragraph (2) or
(3).
‘‘(2) CRITERIA
FOR
AWARDING
COMPETITIVE
GRANTS TO STATES.—In carrying out this section, the
Secretary shall award grants to those State edu-
cational agencies that—
‘‘(A) for 2 consecutive years, make or exceed
adequate yearly progress in reading for all third
graders, in the aggregate, who attend schools
served by the local educational agencies receiving
funding under this subpart;
‘‘(B) for each of the same such consecutive
2 years, demonstrate that an increasing percent-
age of third graders in each of the groups de-
scribed in section 1111(b)(2)(B)(v)(II) in the
schools served by the local educational agencies
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receiving funds under this subpart are reaching
the proficient level in reading; and
‘‘(C) for each of the same such consecutive
2 years, demonstrate that schools receiving funds
under this subpart are improving the reading
skills of students in the first and second grades
based on screening, diagnostic, or classroom-
based instructional assessments.
‘‘(3) INTERIM
CRITERIA
FOR
AWARDING
COM-
PETITIVE GRANTS TO STATES.—If a State has not de-
fined adequate yearly progress and implemented an
assessment of reading in grade 3 as required under
subsection 1111(b), then the Secretary shall award
grants to such State educational agency on the basis
of evidence supplied by the State that, for 2 consecu-
tive years, increasing percentages of students are
reading at grade level or above in grades 1 through
3 in schools receiving funds under this subpart.
‘‘(4) 
CONTINUATION
OF
PERFORMANCE
AWARDS.—For any State that receives a competitive
grant under this section, the Secretary shall make an
award for each of the following, consecutive years that
the State demonstrates it is continuing to meet the
criteria described in paragraph (2) or (3).
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‘‘(5) 
DISTRIBUTION
OF
PERFORMANCE
GRANTS.—
‘‘(A) IN
GENERAL.—The Secretary shall
make a grant to each State with an application
approved under this section in proportion to the
number of poor children determined under sec-
tion 1124(c)(1)(A) for the State as compared to
the number of such poor children in all States
with applications approved in that year.
‘‘(B) APPLICATION
CONTENTS.—A State
that desires to receive a grant under this section
shall submit an application to the Secretary at
such time, in such manner, and accompanied by
such information as the Secretary may require.
Each such application shall include the fol-
lowing:
‘‘(i) Evidence that the State has car-
ried out its obligations under this subpart.
‘‘(ii) Evidence that the State has met
the criteria described in paragraph (2) or
(3).
‘‘(iii) The amount of funds being re-
quested by the State and a description of
the criteria the State intends to use in dis-
tributing subgrants to local educational
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agencies under this section to continue or
expand activities under this subpart.
‘‘(iv) Any additional evidence that
demonstrates success in the implementation
of this subpart.
‘‘(c) SUBGRANTS
TO LOCAL EDUCATIONAL AGEN-
CIES.—
‘‘(1) IN GENERAL.—The Secretary may make a
grant to a State under this section only if the State
agrees to expend 100 percent of the amount of the
funds provided under the grant for the purpose of
making competitive subgrants in accordance with this
subsection to local educational agencies.
‘‘(2) NOTICE.—A State receiving a grant under
this section shall provide notice to all eligible local
educational agencies in the State of the availability
of competitive subgrants under this subsection and of
the requirements for applying for the subgrants.
‘‘(3) APPLICATION.—To apply for a subgrant
under this subsection, an eligible local educational
agency shall submit an application to the State at
such time, in such manner, and containing such in-
formation as the State may reasonably require.
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‘‘(4) DISTRIBUTION.—A State shall distribute
funds under this section, on a competitive basis, based
on the following criteria:
‘‘(A) Evidence that a local educational
agency has carried out its obligations under this
subpart.
‘‘(B) Evidence that a local educational
agency has, for 2 consecutive years, made or ex-
ceeded adequate yearly progress in reading for
all third graders, in the aggregate, who attend
schools receiving funds under this subpart.
‘‘(C) Evidence that a local educational
agency has, for each of the same such consecutive
2 years, demonstrated that an increasing per-
centage of the third graders in each of the groups
described in section 1111(b)(2)(B)(v)(II) in
schools receiving funds under this subpart are
reaching the proficient level in reading.
‘‘(D) Evidence that a local educational
agency has, for each of the same such consecutive
2 years, demonstrated that schools receiving
funds under this subpart are improving the
reading skills of students in the first and second
grades based on screening, diagnostic, or class-
room-based instructional assessments.
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‘‘(E) The amount of funds being requested
by a local educational agency in its application
under paragraph (3) and the description in such
application of how such funds will be used to
support the continuation or expansion of the
agency’s programs under this subpart.
‘‘(F) Evidence that the local educational
agency will work with other eligible local edu-
cational agencies in the State who have not re-
ceived a subgrant under this subsection to assist
such nonreceiving agencies in increasing the
reading achievement of students.
‘‘(G) Any additional evidence in a local
educational agency’s application under para-
graph (3) that demonstrates success in the imple-
mentation of this subpart.
‘‘(5) INTERIM
CRITERIA
FOR
DISTRIBUTING
FUNDS.—If a State has not defined adequate yearly
progress or implemented an assessment of reading in
grade 3 as required under subsection 1111(b), then
such State shall award grants, on a competitive basis
according to the criteria described in paragraphs (4)
(A), (E), (F), and (G), to local educational agencies
that for 2 consecutive years increased the percentage
of students reading at grade level or above in grades
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1 through 3 in schools receiving funds under this sub-
part.
‘‘(6) LOCAL
USES
OF
FUNDS.—A local edu-
cational agency that receives a subgrant under this
subsection shall use the funds provided under the
subgrant to carry out the activities described in sub-
paragraphs (A) through (G) of section 1222(c)(7).
‘‘SEC. 1224. STATE APPLICATIONS.
‘‘(a) APPLICATIONS.—
‘‘(1) IN GENERAL.—A State educational agency
that desires to receive a grant under section 1222
shall submit an application to the Secretary at such
time and in such form as the Secretary may require.
The application shall contain the information de-
scribed in subsection (b).
‘‘(2) SPECIAL
APPLICATION
PROVISIONS.—For
those States that have received a grant under part C
of title II (as such part was in effect on the day pre-
ceding the date of enactment of the Better Education
for Students and Teachers Act), the Secretary shall
establish a modified set of requirements for an appli-
cation under this section that takes into account the
information already submitted and approved under
that program and minimizes the duplication of effort
on the part of such States.
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‘‘(b) CONTENTS.—An application under this section
shall contain the following:
‘‘(1) An assurance that the Governor of the
State, in consultation with the State educational
agency, has established a reading and literacy part-
nership described in subsection (d), and a description
of how such partnership—
‘‘(A) coordinated the development of the ap-
plication; and
‘‘(B) will assist in the oversight and evalua-
tion of the State’s activities under this subpart.
‘‘(2) A description of a strategy to expand, con-
tinue, or modify activities commenced under part C
of title II of this Act (as such part was in effect on
the day before the date of the enactment of the Better
Education for Students and Teachers Act).
‘‘(3) An assurance that the State will submit to
the Secretary, at such time and in such manner as
the Secretary may reasonably require, a State plan
containing a description of the following:
‘‘(A) How the State will assist local edu-
cational agencies in identifying rigorous diag-
nostic reading assessments.
‘‘(B) How the State will assist local edu-
cational agencies in identifying instructional
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materials, programs, strategies, and approaches,
grounded on scientifically based reading re-
search, including early intervention and reading
remediation 
materials, 
programs 
and 
ap-
proaches.
‘‘(C) How the State educational agency will
ensure that professional development activities
related to reading instruction and provided
under this subpart are—
‘‘(i) coordinated with other Federal,
State and local level funds and used effec-
tively to improve instructional practices for
reading; and
‘‘(ii) based on scientifically based read-
ing research.
‘‘(D) How the activities assisted under this
subpart will address the needs of teachers and
other instructional staff in schools receiving as-
sistance under this subpart and will effectively
teach students to read.
‘‘(E) The extent to which the activities will
prepare teachers in all the major components of
reading instruction.
‘‘(F) How subgrants made by the State edu-
cational agency under this subpart will meet the
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requirements of this subpart, including how the
State educational agency will ensure that local
educational agencies receiving subgrants under
this subpart will use practices based on scientif-
ically based reading research.
‘‘(G) How the State educational agency
will, to the extent practicable, make grants to
subgrantees in both rural and urban areas.
‘‘(H) How the State educational agency—
‘‘(i) will build on, and promote coordi-
nation among, literacy programs in the
State (including federally funded programs
such as the Adult Education and Family
Literacy Act and the Individuals with Dis-
abilities Education Act), in order to in-
crease the effectiveness of the programs in
improving reading for adults and children
and to avoid duplication of the efforts of the
program; and
‘‘(ii) will assess and evaluate, on a reg-
ular basis, local educational agency activi-
ties assisted under this subpart, with respect
to whether they have been effective in
achieving the purposes of this subpart.
‘‘(c) APPROVAL OF APPLICATIONS.—
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‘‘(1) IN GENERAL.—The Secretary shall approve
an application of a State under this section only if
such application meets the requirement of this section.
‘‘(2) PEER REVIEW.—
‘‘(A) IN GENERAL.—The Secretary, in con-
sultation with the National Institute for Lit-
eracy, shall convene a panel to evaluate applica-
tions under this section. At a minimum, the
panel shall include—
‘‘(i) 3 individuals selected by the Sec-
retary;
‘‘(ii) 3 individuals selected by the Na-
tional Institute for Literacy;
‘‘(iii) 3 individuals selected by the Na-
tional Research Council of the National
Academy of Sciences; and
‘‘(iv) 3 individuals selected by the Na-
tional Institute of Child Health and
Human Development.
‘‘(B) EXPERTS.—The panel shall include
experts who are competent, by virtue of their
training, expertise, or experience, to evaluate ap-
plications under this section, and experts who
provide professional development to teachers of
reading to children and adults, and experts who
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provide professional development to other in-
structional staff, based on scientifically based
reading research.
‘‘(C) RECOMMENDATIONS.—The panel shall
recommend grant applications from States under
this section to the Secretary for funding or for
disapproval.
‘‘(d) READING AND LITERACY PARTNERSHIPS.—
‘‘(1) REQUIRED PARTICIPANTS.—In order for a
State to receive a grant under this subpart, the Gov-
ernor of the State, in consultation with the State edu-
cational agency, shall establish a reading and literacy
partnership consisting of at least the following par-
ticipants:
‘‘(A) The Governor of the State.
‘‘(B) The chief State school officer.
‘‘(C) The chairman and the ranking mem-
ber of each committee of the State legislature
that is responsible for education policy.
‘‘(D) A representative, selected jointly by the
Governor and the chief State school officer, of at
least one local educational agency that is eligible
to receive a subgrant under section 1222.
‘‘(E) A representative, selected jointly by the
Governor and the chief State school officer, of a
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on scientifically based reading research in the
State;
‘‘(B) a local educational agency;
‘‘(C) a private nonprofit or for-profit eligi-
ble professional development provider providing
instruction based on scientifically based reading
research;
‘‘(D) an adult education provider;
‘‘(E) a volunteer organization that is in-
volved in reading programs; or
‘‘(F) a school library or a public library
that offers reading or literacy programs for chil-
dren or families.
‘‘(3) PREEXISTING PARTNERSHIP.—If, before the
date of the enactment of the Better Education for Stu-
dents and Teachers Act, a State established a consor-
tium, partnership, or any other similar body that
was considered a reading and literacy partnership for
purposes of part C of title II of this Act (as such part
was in effect on the day before the date of the enact-
ment of the Better Education for Students and Teach-
ers Act), that consortium, partnership, or body may
be considered a reading and literacy partnership for
purposes of this subpart notwithstanding that it does
not satisfy the requirements of paragraph (1).
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‘‘SEC. 1225. ACCOUNTABILITY FOR RESULTS.
‘‘(a) STATE ACCOUNTABILITY.—
‘‘(1) REDUCTIONS.—If the Secretary makes the
determination described in paragraphs (2) or (3) for
2 consecutive years, then the Secretary shall reduce
the size of a State’s grant under this subpart for the
subsequent fiscal year.
‘‘(2) DETERMINATION.—The determination re-
ferred to in paragraph (1) is the determination, made
on the basis of data from the State assessment system
described in section 1111, that a State—
‘‘(A) failed to make adequate yearly
progress in reading (as defined in the State’s
plan under section 1111) for all third graders, in
the aggregate, who attend schools receiving funds
under this subpart; and
‘‘(B) failed to increase the percentage of
third graders within each of the groups described
in section 1111(b)(2)(B)(v)(II) who attend
schools receiving funds under this subpart in
reaching the proficient level in reading as com-
pared to the previous school year.
‘‘(3) INTERIM CRITERIA FOR DETERMINATION.—
If a State has not defined adequate yearly progress
and implemented an assessment of reading in grade
3 as required under subsection 1111(b), then the de-
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termination referred to in paragraph (1) is the deter-
mination that such State failed to increase the per-
centage of students reading at grade level or above in
grades 1 through 3 in schools receiving funds under
this subpart.
‘‘(4) CONTINUED REDUCTIONS.—If the Secretary
makes the determination described in paragraph (2)
or (3) for a third or subsequent consecutive year, then
the Secretary shall continue to reduce a States’s grant
under this subpart in each such consecutive year.
‘‘(b) 
LOCAL
EDUCATIONAL
AGENCY
ACCOUNT-
ABILITY.—
‘‘(1) REDUCTIONS.—If the State educational
agency makes the determination described in para-
graph (2) or (3) for a local educational agency receiv-
ing funds under this subpart for 2 consecutive years,
then the State shall make that local educational agen-
cy a priority for professional development and tech-
nical assistance provided under section 1222(d) (3)
and (4).
‘‘(2) DETERMINATION.—The determination re-
ferred to in paragraph (1) is the determination, made
on the basis of data from the State assessment system
described in section 1111, that a local educational
agency—
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‘‘(A) failed to make adequate yearly
progress in reading (as defined in the State plan
under section 1111) for all third graders, in the
aggregate, who attend schools that are served by
the agency and receive funds under this subpart;
and
‘‘(B) failed to increase the percentage of
third graders, within each of the groups de-
scribed in section 1111(b)(2)(B)(v)(II), who at-
tend schools that are served by the agency and
receive funds under this subpart, reaching the
proficient level in reading as compared to the
previous school year.
‘‘(3) INTERIM CRITERIA FOR DETERMINATION.—
If a State has not defined adequate yearly progress
and implemented an assessment of reading in grade
3 as required under subsection 1111(b), then the de-
termination referred to in paragraph (1) is the deter-
mination that a local educational agency failed to in-
crease the percentage of students reading at grade
level or above in grades 1 through 3 in schools receiv-
ing funds under this subpart.
‘‘(4) CONTINUED
REDUCTIONS.—If the State
makes the determination described in paragraph (2)
for a third or subsequent consecutive year, then the
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State shall continue to provide professional develop-
ment and technical assistance and may require the
local educational agency to institute a new reading
curriculum that has demonstrated success in improv-
ing the reading skills of students in kindergarten
through third grade, replace school district or school
staff involved in the planning or implementation of
the reading curriculum, or take some other action or
actions to address the cause or causes for such failure
to demonstrate progress. If the local educational agen-
cy refuses to take such action, then the State may re-
duce or eliminate the grant to that local educational
agency.
‘‘SEC. 1226. RESERVATIONS FROM APPROPRIATIONS.
‘‘From the amounts appropriated to carry out this
subpart for a fiscal year, the Secretary—
‘‘(1) may reserve not more than 1 percent to
carry out section 1227 (relating to national activi-
ties); and
‘‘(2) shall reserve $5,000,000 to carry out section
1228 (relating to information dissemination).
‘‘SEC. 1227. NATIONAL ACTIVITIES.
‘‘(a) IN GENERAL.—From funds reserved under section
1226, the Secretary—
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‘‘(1) shall contract with an independent outside
organization for a 5-year, rigorous, scientifically
valid, quantitative evaluation of this subpart;
‘‘(2) may provide technical assistance in achiev-
ing the purposes of this subpart to States, local edu-
cational agencies, and schools requesting such assist-
ance; and
‘‘(3) shall, at a minimum, evaluate the impact
of services provided to children under this subpart
with respect to their referral to and eligibility for spe-
cial education services under the Individuals with
Disabilities Education Act (based on their difficulties
learning to read).
‘‘(b) PROCESS.—Such evaluation shall be conducted by
an organization outside of the Department that is capable
of designing and carrying out an independent evaluation
that identifies the effects of specific activities carried out
by States and local educational agencies under this subpart
on improving reading instruction. Such evaluation shall
use only data relating to students served under this subpart
and shall take into account factors influencing student per-
formance that are not controlled by teachers or education
administrators.
‘‘(c) ANALYSIS.—Such evaluation shall include the fol-
lowing:
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‘‘(1) An analysis of the relationship between each
of the essential components of reading instruction and
overall reading proficiency.
‘‘(2) An analysis of whether assessment tools
used by States and local educational agencies measure
the essential components of reading instruction.
‘‘(3) An analysis of how State reading standards
correlate with the essential components of reading in-
struction.
‘‘(4) An analysis of whether the receipt of a dis-
cretionary grant under this subpart results in an in-
crease in the number of children who read pro-
ficiently.
‘‘(5) A measurement of the extent to which spe-
cific instructional materials improve reading pro-
ficiency.
‘‘(6) A measurement of the extent to which spe-
cific rigorous diagnostic reading and screening assess-
ment tools assist teachers in identifying specific read-
ing deficiencies.
‘‘(7) A measurement of the extent to which pro-
fessional development programs implemented by
States using funds received under this subpart im-
prove reading instruction.
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‘‘(8) A measurement of how well students pre-
paring to enter the teaching profession are prepared
to teach the essential components of reading instruc-
tion.
‘‘(9) An analysis of changes in students’ interest
in reading and time spent reading outside of school.
‘‘(10) Any other analysis or measurement perti-
nent to this subpart that is determined to be appro-
priate by the Secretary.
‘‘(d) PROGRAM IMPROVEMENT.—The findings of the
evaluation conducted under this section shall be provided
to States and local educational agencies on a periodic basis
for use in program improvement.
‘‘SEC. 1228. INFORMATION DISSEMINATION.
‘‘(a) IN GENERAL.—From funds reserved under section
1226(2), the National Institute for Literacy, in collabora-
tion with the Departments of Education and Health and
Human Services, including the National Institute for Child
Health and Human Development, shall—
‘‘(1) disseminate information on scientifically
based reading research pertaining to children, youth,
and adults;
‘‘(2) identify and disseminate information about
schools, local educational agencies, and States that ef-
fectively developed and implemented reading pro-
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grams that meet the requirements of this subpart, in-
cluding those effective States, local educational agen-
cies, and schools identified through the evaluation and
peer review provisions of this subpart; and
‘‘(3) support the continued identification of sci-
entifically based reading research that can lead to im-
proved reading outcomes for children, youth, and
adults through evidenced-based assessments of the sci-
entific research literature.
‘‘(b) DISSEMINATION AND COORDINATION.—At a min-
imum, the National Institute for Literacy shall disseminate
such information to recipients of Federal financial assist-
ance under titles I and III, the Head Start Act, the Individ-
uals With Disabilities Education Act, and the Adult Edu-
cation and Family Literacy Act. In carrying out this sec-
tion, the National Institute for Literacy shall, to the extent
practicable, utilize existing information and dissemination
networks developed and maintained through other public
and private entities including through the Department and
the National Center for Family Literacy.
‘‘(c) USE OF FUNDS.—The National Institute for Lit-
eracy may use not more than 5 percent of the funds made
available under section 1226(2) for administrative purposes
directly related to carrying out of activities authorized by
this section.
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‘‘SEC. 1229. IMPROVING LITERACY THROUGH SCHOOL LI-
BRARIES.
‘‘(a) IN GENERAL.—From funds made available under
subsection (d) for a fiscal year, the Secretary shall allot to
each State educational agency having an application ap-
proved under subsection (c)(1) an amount that bears the
same relation to the funds as the amount the State edu-
cational agency received under part A for the preceding fis-
cal year bears to the amount all such State educational
agencies received under part A for the preceding fiscal year,
to increase literacy and reading skills by improving school
libraries.
‘‘(b) WITHIN-STATE ALLOCATIONS.—Each State edu-
cational agency receiving an allotment under subsection (a)
for a fiscal year—
‘‘(1) may reserve not more than 3 percent to pro-
vide technical assistance, disseminate information
about school library media programs that are effective
and based on scientifically based research, and pay
administrative costs, related to activities under this
section; and
‘‘(2) shall allocate the allotted funds that remain
after making the reservation under paragraph (1) to
each local educational agency in the State having an
application approved under subsection (c)(2) (for ac-
tivities described in subsection (f)) in an amount that
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bears the same relation to such remainder as the
amount the local educational agency received under
part A for the fiscal year bears to the amount received
by all such local educational agencies in the State for
the fiscal year.
‘‘(c) APPLICATIONS.—
‘‘(1) STATE EDUCATIONAL AGENCY.—Each State
educational agency desiring assistance under this sec-
tion shall submit to the Secretary an application at
such time, in such manner, and containing such in-
formation as the Secretary shall require. The applica-
tion shall contain a description of—
‘‘(A) how the State educational agency will
assist local educational agencies in meeting the
requirements of this section and in using sci-
entifically based research to implement effective
school library media programs; and
‘‘(B) the standards and techniques the State
educational agency will use to evaluate the qual-
ity and impact of activities carried out under
this section by local educational agencies to de-
termine the need for technical assistance and
whether to continue funding the agencies under
this section.
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‘‘(2) LOCAL EDUCATIONAL AGENCY.—Each local
educational agency desiring assistance under this sec-
tion shall submit to the State educational agency an
application at such time, in such manner, and con-
taining such information as the State educational
agency shall require. The application shall contain a
description of—
‘‘(A) a needs assessment relating to the need
for school library media improvement, based on
the age and condition of school library media re-
sources, including book collections, access of
school library media centers to advanced tech-
nology, and the availability of well-trained, pro-
fessionally certified school library media special-
ists, in schools served by the local educational
agency;
‘‘(B) how the local educational agency will
extensively involve school library media special-
ists, teachers, administrators, and parents in the
activities assisted under this section, and the
manner in which the local educational agency
will carry out the activities described in sub-
section (f) using programs and materials that
are grounded in scientifically based research;
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‘‘(C) the manner in which the local edu-
cational agency will effectively coordinate the
funds and activities provided under this section
with Federal, State, and local funds and activi-
ties under this subpart and other literacy, li-
brary, technology, and professional development
funds and activities; and
‘‘(D) the manner in which the local edu-
cational agency will collect and analyze data on
the quality and impact of activities carried out
under this section by schools served by the local
educational agency.
‘‘(d) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$500,000,000 for fiscal year 2002 and such sums as may
be necessary for each of the 6 succeeding fiscal years.
‘‘(e) WITHIN-LEA DISTRIBUTION.—Each local edu-
cational agency receiving funds under this section shall
distribute—
‘‘(1) 50 percent of the funds to schools served by
the local educational agency that are in the top quar-
tile in terms of percentage of students enrolled from
families with incomes below the poverty line; and
‘‘(2) 50 percent of the funds to schools that have
the greatest need for school library media improve-
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ment based on the needs assessment described in sub-
section (c)(2)(A).
‘‘(f) LOCAL ACTIVITIES.—Funds under this section
may be used to—
‘‘(1) acquire up-to-date school library media re-
sources, including books;
‘‘(2) acquire and utilize advanced technology, in-
corporated into the curricula of the school, to develop
and enhance the information literacy, information re-
trieval, and critical thinking skills of students;
‘‘(3) facilitate Internet links and other resource-
sharing networks among schools and school library
media centers, and public and academic libraries,
where possible;
‘‘(4) provide professional development described
in 1222(c)(7)(D) for school library media specialists,
and activities that foster increased collaboration be-
tween school library media specialists, teachers, and
administrators; and
‘‘(5) provide students with access to school li-
braries during nonschool hours, including the hours
before and after school, during weekends, and during
summer vacation periods.
‘‘(g) 
ACCOUNTABILITY
AND
CONTINUATION
OF
FUNDS.—Each local educational agency that receives fund-
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ing under this section for a fiscal year shall be eligible to
continue to receive the funding for a third or subsequent
fiscal year only if the local educational agency demonstrates
to the State educational agency that the local educational
agency has increased—
‘‘(1) the availability of, and the access to, up-to-
date school library media resources in the elementary
schools and secondary schools served by the local edu-
cational agency; and
‘‘(2) the number of well-trained, professionally
certified school library media specialists in those
schools.
‘‘(h) APPLICABILITY.—The provisions of this subpart
(other than this section) shall not apply to this section.
‘‘(i) SUPPLEMENT
NOT
SUPPLANT.—Funds made
available under this section shall be used to supplement and
not supplant other Federal, State, and local funds expended
to carry out activities relating to library, technology, or
professional development activities.
‘‘(j) NATIONAL ACTIVITIES.—From the total amount
made available under subsection (d) for each fiscal year,
the Secretary shall reserve not more than 1 percent for an-
nual, independent, national evaluations of the activities as-
sisted under this section. The evaluations shall be conducted
not later than 3 years after the date of enactment of the
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Better Education for Students and Teachers Act, and each
year thereafter.
‘‘SEC. 1230. DEFINITIONS.
‘‘For purposes of this subpart:
‘‘(1) ELIGIBLE
PROFESSIONAL
DEVELOPMENT
PROVIDER.—The term ‘eligible professional develop-
ment provider’ means a provider of professional devel-
opment in reading instruction to teachers that is
based on scientifically based reading research.
‘‘(2) INSTRUCTIONAL STAFF.—The term ‘instruc-
tional staff’—
‘‘(A) means individuals who have responsi-
bility for teaching children to read; and
‘‘(B) includes principals, teachers, super-
visors of instruction, librarians, library school
media specialists, teachers of academic subjects
other than reading, and other individuals who
have responsibility for assisting children to learn
to read.
‘‘(3) MAJOR COMPONENTS OF READING INSTRUC-
TION.—The term ‘major components of reading in-
struction’ 
means 
systematic 
instruction 
that
includes—
‘‘(A) phonemic awareness;
‘‘(B) phonics;
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‘‘(C) vocabulary development;
‘‘(D) reading fluency; and
‘‘(E) reading comprehension strategies.
‘‘(4) READING.—The term ‘reading’ means a
complex system of deriving meaning from print that
requires all of the following:
‘‘(A) The skills and knowledge to under-
stand how phonemes, or speech sounds, are con-
nected to print.
‘‘(B) The ability to decode unfamiliar
words.
‘‘(C) The ability to read fluently.
‘‘(D) Sufficient background information
and vocabulary to foster reading comprehension.
‘‘(E) The development of appropriate active
strategies to construct meaning from print.
‘‘(F) The development and maintenance of a
motivation to read.
‘‘(5) RIGOROUS
DIAGNOSTIC
READING
ASSESS-
MENT.—The term ‘rigorous diagnostic reading assess-
ment’ means a diagnostic reading assessment that—
‘‘(A) is valid, reliable, and grounded in sci-
entifically based reading research;
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‘‘(B) measures progress in phonemic aware-
ness and phonics, vocabulary development, read-
ing fluency, or reading comprehension; and
‘‘(C) identifies students who may be at risk
for reading failure or who are having difficulty
reading.
‘‘(6) 
SCIENTIFICALLY
BASED
READING
RE-
SEARCH.—The term ‘scientifically based reading
research’—
‘‘(A) means research that applies rigorous,
systematic, and objective procedures to obtain
valid knowledge relevant to reading development,
reading instruction, and reading difficulties; and
‘‘(B) shall include research that—
‘‘(i) employs systematic, empirical
methods that draw on observation or experi-
ment;
‘‘(ii) involves rigorous data analyses
that are adequate to test the stated
hypotheses and justify the general conclu-
sions drawn;
‘‘(iii) relies on measurements or obser-
vational methods that provide valid data
across evaluators and observers and across
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multiple measurements and observations;
and
‘‘(iv) has been accepted by a peer-re-
viewed journal or approved by a panel of
independent experts through a comparably
rigorous, objective, and scientific review.’’.
SEC. 122. EARLY READING INITIATIVE.
Part B of title I (20 U.S.C. 6361 et seq.) is amended
further by adding at the end the following:
‘‘Subpart 3—Early Reading First
‘‘SEC. 1241. PURPOSES.
‘‘The purposes of this subpart are as follows:
‘‘(1) To support local efforts to enhance the early
language, literacy, and prereading development of
preschool age children, particularly those from low-in-
come families, through strategies and professional de-
velopment that are based on scientifically based re-
search.
‘‘(2) To provide preschool age children with cog-
nitive learning opportunities in high-quality lan-
guage and literature-rich environments, so that the
children can attain the fundamental knowledge and
skills necessary for optimal reading development in
kindergarten and beyond.
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‘‘(3) To demonstrate language and literacy ac-
tivities based on scientifically based research that
support the age-appropriate development of—
‘‘(A) spoken language and oral comprehen-
sion abilities;
‘‘(B) understanding that spoken language
can be analyzed into discrete words, and aware-
ness that words can be broken into sequences of
syllables and phonemes;
‘‘(C) automatic recognition of letters of the
alphabet and understanding that letters or
groups of letters systematically represent the
component sounds of the language; and
‘‘(D) knowledge of the purposes and conven-
tions of print.
‘‘(4) To integrate these learning opportunities
with learning opportunities at preschools, child care
agencies, and Head Start agencies, and with family
literacy services.
‘‘SEC. 1242. LOCAL EARLY READING FIRST GRANTS.
‘‘(a) PROGRAM AUTHORIZED.—From amounts appro-
priated under section 1002(b)(3), the Secretary shall award
grants, on a competitive basis, for periods of not more than
5 years, to eligible applicants to enable the eligible appli-
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cants to carry out the authorized activities described in sub-
section (e).
‘‘(b) DEFINITION OF ELIGIBLE APPLICANT.—In this
subpart the term ‘eligible applicant’ means—
‘‘(1) one or more local educational agencies that
are eligible to receive a subgrant under subpart 2;
‘‘(2) one or more public or private organizations
or agencies, acting on behalf of 1 or more programs
that serve preschool age children (such as a program
at a Head Start center, a child care program, or a
family literacy program), which organizations or
agencies shall be located in a community served by a
local educational agency described in paragraph (1);
or
‘‘(3) one or more local educational agencies de-
scribed in paragraph (1) in collaboration with one or
more organizations or agencies described in para-
graph (2).
‘‘(c) APPLICATIONS.—An eligible applicant that de-
sires to receive a grant under this section shall submit an
application to the Secretary which shall include a descrip-
tion of—
‘‘(1) the programs to be served by the proposed
project, including demographic and socioeconomic in-
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formation on the preschool age children enrolled in
the programs;
‘‘(2) how the proposed project will prepare and
provide ongoing assistance to staff in the programs,
through professional development and other support,
to provide high-quality language, literacy and
prereading activities using scientifically based re-
search, for preschool age children;
‘‘(3) how the proposed project will provide serv-
ices and utilize materials that are based on scientif-
ically based research on early language acquisition,
prereading activities, and the development of spoken
language skills;
‘‘(4) how the proposed project will help staff in
the programs to meet the diverse needs of preschool
age children in the community better, including such
children with limited English proficiency, disabilities,
or other special needs;
‘‘(5) how the proposed project will help preschool
age children, particularly such children experiencing
difficulty with spoken language, prereading, and lit-
eracy skills, to make the transition from preschool to
formal classroom instruction in school;
‘‘(6) if the eligible applicant has received a
subgrant under subpart 2, how the activities con-
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ducted under this subpart will be coordinated with
the eligible applicant’s activities under subpart 2 at
the kindergarten through third-grade level;
‘‘(7) how the proposed project will evaluate the
success of the activities supported under this subpart
in enhancing the early language, literacy, and
prereading development of preschool age children
served by the project; and
‘‘(8) such other information as the Secretary
may require.
‘‘(d) APPROVAL
OF APPLICATIONS.—The Secretary
shall select applicants for funding under this subpart on
the basis of the quality of the applications, in consultation
with the National Institute for Child Health and Human
Development, the National Institute for Literacy, and the
National Academy of Sciences. The Secretary shall select
applications for approval under this subpart on the basis
of a peer review process.
‘‘(e) AUTHORIZED ACTIVITIES.— An eligible applicant
that receives a grant under this subpart shall use the funds
provided under the grant to carry out the following activi-
ties:
‘‘(A) Providing preschool age children with
high-quality oral language and literature-rich
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environments in which to acquire language and
prereading skills.
‘‘(B) Providing professional development
that is based on scientifically based research
knowledge of early language and reading devel-
opment for the staff of the eligible applicant and
that will assist in developing the preschool age
children’s—
‘‘(i) spoken language (including vocab-
ulary, the contextual use of speech, and syn-
tax) and oral comprehension abilities;
‘‘(ii) understanding that spoken lan-
guage can be analyzed into discrete words,
and awareness that words can be broken
into sequences of syllables and phonemes;
‘‘(iii) automatic recognition of letters
of the alphabet and understanding that let-
ters or groups of letters systematically rep-
resent the component sounds of the lan-
guage; and
‘‘(iv) knowledge of the purposes and
conventions of print.
‘‘(C) Identifying and providing activities
and instructional materials that are based on
scientifically based research for use in developing
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the skills and abilities described in subparagraph
(B).
‘‘(D) Acquiring, providing training for, and
implementing screening tools or other appro-
priate measures that are based on scientifically
based research to determine whether preschool
age children are developing the skills described in
this subsection.
‘‘(E) Integrating such instructional mate-
rials, activities, tools, and measures into the pro-
grams offered by the eligible applicant.
‘‘(f) AWARD AMOUNTS.—The Secretary may establish
a maximum award amount, or ranges of award amounts,
for grants under this subpart.
‘‘SEC. 1243. FEDERAL ADMINISTRATION.
‘‘The Secretary shall consult with the Secretary of
Health and Human Services in order to coordinate the ac-
tivities undertaken under this subpart with preschool age
programs administered by the Department of Health and
Human Services.
‘‘SEC. 1244. INFORMATION DISSEMINATION.
‘‘From the funds the National Institute for Literacy
receives under section 1228, the National Institute for Lit-
eracy, in consultation with the Secretary, shall disseminate
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information regarding projects assisted under this subpart
that have proven effective.
‘‘SEC. 1245. REPORTING REQUIREMENTS.
‘‘Each eligible applicant receiving a grant under this
subpart shall report annually to the Secretary regarding
the eligible applicant’s progress in addressing the purposes
of this subpart. Such report shall include, at a minimum,
a description of—
‘‘(1) the activities, materials, tools, and measures
used by the eligible applicant;
‘‘(2) the professional development activities of-
fered to the staff of the eligible applicant who serve
preschool age children and the amount of such profes-
sional development;
‘‘(3) the types of programs and ages of children
served; and
‘‘(4) the results of the evaluation described in sec-
tion 1242(c)(7).
‘‘SEC. 1246. EVALUATIONS.
‘‘From the total amount appropriated under section
1002(b)(3) for the period beginning October 1, 2002 and
ending September 30, 2008, the Secretary shall reserve not
more than $5,000,000 to conduct an independent evaluation
of the effectiveness of this subpart.
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‘‘SEC. 1247. ADDITIONAL RESEARCH.
‘‘From the amount appropriated under section
1002(b)(3) for each of the fiscal years 2002 through 2006,
the Secretary shall reserve not more than $3,000,000 to con-
duct, in consultation with National Institute for Child
Health and Human Development, the National Institute for
Literacy, and the Department of Health and Human Serv-
ices, additional research on language and literacy develop-
ment for preschool age children.’’.
PART C—EDUCATION OF MIGRATORY CHILDREN
SEC. 131. PROGRAM PURPOSE.
Section 1301 (20 U.S.C. 6391) is amended—
(1) by redesignating paragraphs (2) through (5)
as paragraphs (3) through (7), respectively;
(2) by inserting after paragraph (1) the fol-
lowing:
‘‘(2) ensure that migratory children who move
among the States are not penalized in any manner
by disparities among the States in curriculum, grad-
uation requirements, and State student performance
and content standards;’’;
(3) in paragraph (5) (as so redesignated), by
striking ‘‘and’’ after the semicolon;
(4) in paragraph (6) (as so redesignated), by
striking the period and inserting ‘‘; and’’; and
(5) by adding at the end the following:
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‘‘(7) ensure that migratory children receive full
and appropriate opportunities to meet the same chal-
lenging State content and student performance stand-
ards that all children are expected to meet.’’.
SEC. 132. STATE APPLICATION.
Section 1304 (20 U.S.C. 6394) is amended—
(1) in subsection (b)—
(A) in paragraph (1), by striking ‘‘a com-
prehensive’’ and all that follows through ‘‘1306;’’
and inserting ‘‘the full range of services that are
available for migratory children from appro-
priate local, State, and Federal educational pro-
grams;’’;
(B) 
by 
redesignating 
paragraphs 
(2)
through (6) as paragraphs (3) through (7), re-
spectively; and
(C) by inserting after paragraph (1) the fol-
lowing:
‘‘(2) a description of joint planning efforts that
will be made with respect to programs assisted under
this Act, local, State, and Federal programs, and bi-
lingual education programs under subpart 1 of part
A of title III;’’; and
(2) in subsection (c), by amending paragraph
(3) to read as follows:
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‘‘(3) in the planning and operation of programs
and projects at both the State and local agency oper-
ating level there is consultation with parent advisory
councils for programs of one school year in duration,
and that all such programs and projects are carried
out—
‘‘(A) in a manner consistent with section
1118 unless extraordinary circumstances make
implementation with such section impractical;
and
‘‘(B) in a format and language understand-
able to the parents;’’.
SEC. 133. COMPREHENSIVE PLAN.
(a) COMPREHENSIVE PLAN.—Section 1306(a)(1) (20
U.S.C. 6396(a)(1)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘the Goals 2000: Educate
America Act,’’; and
(B) by striking ‘‘14306’’ and inserting
‘‘5506’’; and
(2) in subparagraph (B), by striking ‘‘14302;’’
and inserting ‘‘5502, if—
‘‘(i) the special needs of migratory
children are specifically addressed in the
comprehensive State plan;
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‘‘(ii) the comprehensive State plan is
developed in collaboration with parents of
migratory children; and
‘‘(iii) the comprehensive State plan-
ning is not used to supplant State efforts
regarding, or administrative funding for,
this part;’’.
(b) AUTHORIZED ACTIVITIES.—Section 1306(b)(3) (20
U.S.C. 6396(b)(3)) is amended by inserting ‘‘, and shall
meet the special educational needs of migrant children be-
fore using funds under this part for schoolwide programs
under section 1114’’ before the period.
SEC. 134. COORDINATION.
Section 1308 (20 U.S.C. 6398) is amended—
(1) by amending subsection (b) to read as fol-
lows:
‘‘(b) ACCESS
TO INFORMATION
ON MIGRANT STU-
DENTS.—
‘‘(1) INFORMATION SYSTEM.—(A) The Secretary
shall establish an information system for electroni-
cally exchanging, among the States, health and edu-
cational information regarding all students served
under this part. Such information may include—
‘‘(i) immunization records and other health
information;
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‘‘(ii) elementary and secondary academic
history (including partial credit), credit accrual,
and results from State assessments required
under this title;
‘‘(iii) other academic information essential
to ensuring that migrant children achieve to
high standards; and
‘‘(iv) eligibility for services under the Indi-
viduals with Disabilities Education Act.
‘‘(B) The Secretary shall publish, not later than
120 days after the date of enactment of the Better
Education for Students and Teachers Act, a notice in
the Federal Register seeking public comment on the
proposed data elements that each State receiving
funds under this part shall be required to collect for
purposes of electronic transfer of migrant student in-
formation, the requirements for immediate electronic
access to such information, and the educational agen-
cies eligible to access such information.
‘‘(C) Such system of electronic access to migrant
student information shall be operational not later
than 1 year after the date of enactment of the Better
Education for Students and Teachers Act.
‘‘(D) For the purpose of carrying out this sub-
section in any fiscal year, the Secretary shall reserve
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not more than $10,000,000 of the amount appro-
priated to carry out this part for such year.
‘‘(2) REPORT TO CONGRESS.—(A) Not later than
April 30, 2003, the Secretary shall report to the Com-
mittee on Health, Education, Labor, and Pensions of
the Senate and the Committee on Education and the
Workforce of the House of Representatives the Sec-
retary’s findings and recommendations regarding
services under this part, and shall include in this re-
port, recommendations for the interim measures that
may be taken to ensure continuity of services under
this part.
‘‘(B) The Secretary shall assist States in devel-
oping effective methods for the transfer of student
records and in determining the number of students or
full-time equivalent students in each State if such in-
terim measures are required.’’.
(2) in subsection (c), by striking ‘‘$6,000,000’’
and inserting ‘‘$10,000,000’’;
(3) 
in 
subsection 
(d)(1), 
by 
striking
‘‘$1,500,000’’ and inserting ‘‘$3,000,000’’; and
(4) by adding at the end the following:
‘‘(e) DATA COLLECTION.—The Secretary shall direct
the National Center for Education Statistics to collect data
on migratory children.’’.
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PART D—INITIATIVES FOR NEGLECTED,
DELINQUENT, OR AT RISK YOUTH
SEC. 141. INITIATIVES FOR NEGLECTED, DELINQUENT, OR
AT RISK YOUTH.
Part D of title I (20 U.S.C. 6421 et seq.) is amended
to read as follows:
‘‘PART D—INITIATIVES FOR NEGLECTED,
DELINQUENT, OR AT RISK STUDENTS
‘‘Subpart 1—Prevention and Intervention Programs
for Children and Youth Who Are Neglected, De-
linquent, or at Risk of Dropping Out
‘‘SEC. 1401. PURPOSE; PROGRAM AUTHORIZED.
‘‘(a) PURPOSE.—It is the purpose of this subpart—
‘‘(1) to improve educational services for children
in local and State institutions for neglected or delin-
quent children and youth so that such children and
youth have the opportunity to meet the same chal-
lenging State content standards and challenging State
student performance standards that all children in
the State are expected to meet;
‘‘(2) to provide such children and youth with the
services needed to make a successful transition from
institutionalization to further schooling or employ-
ment; and
‘‘(3) to prevent at-risk youth from dropping out
of school and to provide dropouts and youth returning
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from institutions with a support system to ensure
their continued education.
‘‘(b) PROGRAM AUTHORIZED.—In order to carry out
the purpose of this subpart the Secretary shall make grants
to State educational agencies to enable such agencies to
award subgrants to State agencies and local educational
agencies to establish or improve programs of education for
neglected or delinquent children and youth at risk of drop-
ping out of school before graduation.
‘‘SEC. 1402. PAYMENTS FOR PROGRAMS UNDER THIS SUB-
PART.
‘‘(a) AGENCY SUBGRANTS.—Based on the allocation
amount computed under section 1412, the Secretary shall
allocate to each State educational agency amounts nec-
essary to make subgrants to State agencies under chapter
1.
‘‘(b) LOCAL SUBGRANTS.—Each State shall retain, for
purposes of carrying out chapter 2, funds generated
throughout the State under part A of title I based on youth
residing in local correctional facilities, or attending com-
munity day programs for delinquent children and youth.
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‘‘Chapter 1—State Agency Programs
‘‘SEC. 1411. ELIGIBILITY.
‘‘A State agency is eligible for assistance under this
chapter if such State agency is responsible for providing
free public education for children—
‘‘(1) in institutions for neglected or delinquent
children and youth;
‘‘(2) attending community day programs for ne-
glected or delinquent children and youth; or
‘‘(3) in adult correctional institutions.
‘‘SEC. 1412. ALLOCATION OF FUNDS.
‘‘(a) SUBGRANTS TO STATE AGENCIES.—
‘‘(1) IN GENERAL.—Each State agency described
in section 1411 (other than an agency in the Com-
monwealth of Puerto Rico) is eligible to receive a
subgrant under this chapter, for each fiscal year, an
amount equal to the product of—
‘‘(A) the number of neglected or delinquent
children and youth described in section 1411
who—
‘‘(i) are enrolled for at least 15 hours
per week in education programs in adult
correctional institutions; and
‘‘(ii) are enrolled for at least 20 hours
per week—
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‘‘(I) in education programs in in-
stitutions for neglected or delinquent
children and youth; or
‘‘(II) in community day programs
for neglected or delinquent children
and youth; and
‘‘(B) 40 percent of the average per-pupil ex-
penditure in the State, except that the amount
determined under this subparagraph shall not be
less than 32 percent, nor more than 48 percent,
of the average per-pupil expenditure in the
United States.
‘‘(2) SPECIAL RULE.—The number of neglected
or delinquent children and youth determined under
paragraph (1) shall—
‘‘(A) be determined by the State agency by
a deadline set by the Secretary, except that no
State agency shall be required to determine the
number of such children and youth on a specific
date set by the Secretary; and
‘‘(B) be adjusted, as the Secretary deter-
mines is appropriate, to reflect the relative
length of such agency’s annual programs.
‘‘(b) SUBGRANTS TO STATE AGENCIES IN PUERTO
RICO.—For each fiscal year, the amount of the subgrant
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for which a State agency in the Commonwealth of Puerto
Rico is eligible under this chapter shall be equal to—
‘‘(1) the number of children and youth counted
under subsection (a)(1)(A) for the Commonwealth of
Puerto Rico; multiplied by
‘‘(2) the product of—
‘‘(A) the percentage that the average per-
pupil expenditure in the Commonwealth of Puer-
to Rico is of the lowest average per-pupil expend-
iture of any of the 50 States; and
‘‘(B) 32 percent of the average per-pupil ex-
penditure in the United States.
‘‘(c) RATABLE REDUCTIONS IN CASE OF INSUFFICIENT
APPROPRIATIONS.—If the amount appropriated for any fis-
cal year for subgrants under subsections (a) and (b) is in-
sufficient to pay the full amount for which all State agen-
cies are eligible under such subsections, the Secretary shall
ratably reduce each such amount.
‘‘SEC. 1413. STATE REALLOCATION OF FUNDS.
‘‘If a State educational agency determines that a State
agency does not need the full amount of the subgrant for
which such State agency is eligible under this chapter for
any fiscal year, the State educational agency may reallocate
the amount that will not be needed to other eligible State
agencies that need additional funds to carry out the purpose
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of this subpart, in such amounts as the State educational
agency shall determine.
‘‘SEC. 1414. STATE PLAN AND STATE AGENCY APPLICA-
TIONS.
‘‘(a) STATE PLAN.—
‘‘(1) IN
GENERAL.—Each State educational
agency that desires to receive a grant under this
chapter shall submit, for approval by the Secretary,
a plan for meeting the needs of neglected and delin-
quent children and youth and, where applicable, chil-
dren and youth at risk of dropping out of school, that
is integrated with other programs under this Act, or
other Acts, as appropriate, consistent with section
5506.
‘‘(2) CONTENTS.—Each such State plan shall—
‘‘(A) describe the program goals, objectives,
and performance measures established by the
State that will be used to assess the effectiveness
of the program in improving academic and voca-
tional skills of children in the program;
‘‘(B) provide that, to the extent feasible,
such children will have the same opportunities to
learn as such children would have if such chil-
dren were in the schools of local educational
agencies in the State; and
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‘‘(C) contain assurances that the State edu-
cational agency will—
‘‘(i) ensure that programs assisted
under this subpart will be carried out in ac-
cordance with the State plan described in
this subsection;
‘‘(ii) carry out the evaluation require-
ments of section 1431;
‘‘(iii) ensure that the State agencies re-
ceiving subgrants under this chapter comply
with all applicable statutory and regulatory
requirements; and
‘‘(iv) provide such other information as
the Secretary may reasonably require.
‘‘(3) DURATION OF THE PLAN.—Each State plan
shall—
‘‘(A) remain in effect for the duration of the
State’s participation under this subpart; and
‘‘(B) be periodically reviewed and revised
by the State, as necessary, to reflect changes in
the State’s strategies and programs under this
subpart.
‘‘(b) SECRETARIAL APPROVAL; PEER REVIEW.—
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‘‘(1) IN GENERAL.—The Secretary shall approve
each State plan that meets the requirements of this
part.
‘‘(2) PEER REVIEW.—The Secretary may review
any State plan with the assistance and advice of in-
dividuals with relevant expertise.
‘‘(c) STATE AGENCY APPLICATIONS.—Any State agen-
cy that desires to receive funds to carry out a program
under this chapter shall submit an application to the State
educational agency that—
‘‘(1) describes the procedures to be used, con-
sistent with the State plan under section 1111, to as-
sess the educational needs of the children to be served;
‘‘(2) provides assurances that in making services
available to youth in adult correctional institutions,
priority will be given to such youth who are likely to
complete incarceration within a 2-year period;
‘‘(3) describes the program, including a budget
for the first year of the program, with annual updates
to be provided to the State educational agency;
‘‘(4) describes how the program will meet the
goals and objectives of the State plan;
‘‘(5) describes how the State agency will consult
with experts and provide the necessary training for
appropriate staff, to ensure that the planning and op-
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eration of institution-wide projects under section 1416
are of high quality;
‘‘(6) describes how the agency will carry out
evaluation activities and how the results of the most
recent evaluation are used to plan and improve the
program;
‘‘(7) includes data showing that the agency has
maintained the fiscal effort required of a local edu-
cational agency, in accordance with section 4;
‘‘(8) describes how the programs will be coordi-
nated with other appropriate State and Federal pro-
grams, such as programs under title I of the Work-
force Investment Act of 1998, vocational education
programs, State and local dropout prevention pro-
grams, and special education programs;
‘‘(9) describes how appropriate professional de-
velopment will be provided to teachers and other staff;
‘‘(10) designates an individual in each affected
institution to be responsible for issues relating to the
transition of children and youth from the institution
to locally operated programs;
‘‘(11) describes how the agency will, endeavor to
coordinate with businesses for training and men-
toring for participating children and youth;
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‘‘(12) provides assurances that the agency will
assist in locating alternative programs through which
students can continue their education if students are
not returning to school after leaving the correctional
facility;
‘‘(13) provides assurances that the agency will
work with parents to secure parents’ assistance in im-
proving the educational achievement of their children
and preventing their children’s further involvement in
delinquent activities;
‘‘(14) provides assurances that the agency works
with special education youth in order to meet an ex-
isting individualized education program and an as-
surance that the agency will notify the youth’s local
school if the youth—
‘‘(A) is identified as in need of special edu-
cation services while the youth is in the facility;
and
‘‘(B) intends to return to the local school;
‘‘(15) provides assurances that the agency will
work with youth who dropped out of school before en-
tering the facility to encourage the youth to reenter
school once the term of the youth has been completed
or provide the youth with the skills necessary to gain
employment, continue the education of the youth, or
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achieve a secondary school diploma or its recognized
equivalent if the youth does not intend to return to
school;
‘‘(16) provides assurances that teachers and other
qualified staff are also trained to work with children
with disabilities and other students with special needs
taking into consideration the unique needs of such
students;
‘‘(17) describes any additional services provided
to children and youth, such as career counseling, and
assistance in securing student loans and grants; and
‘‘(18) provides assurances that the program
under this chapter will be coordinated with any pro-
grams operated under the Juvenile Justice and Delin-
quency Prevention Act of 1974 or other comparable
programs, if applicable.
‘‘SEC. 1415. USE OF FUNDS.
‘‘(a) USES.—
‘‘(1) IN
GENERAL.—A State agency shall use
funds received under this chapter only for programs
and projects that—
‘‘(A) are consistent with the State plan
under section 1414(a); and
‘‘(B) concentrate on providing participants
with the knowledge and skills needed to make a
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successful transition to secondary school comple-
tion, further education, or employment.
‘‘(2) PROGRAMS AND PROJECTS.—Such programs
and projects—
‘‘(A) may include the acquisition of equip-
ment;
‘‘(B) shall be designed to support edu-
cational services that—
‘‘(i) except for institution-wide projects
under section 1416, are provided to children
and youth identified by the State agency as
failing, or most at risk of failing, to meet
the State’s challenging State content stand-
ards and challenging State student perform-
ance standards;
‘‘(ii) supplement and improve the
quality of the educational services provided
to such children and youth by the State
agency; and
‘‘(iii) afford such children and youth
an opportunity to learn to such challenging
State standards;
‘‘(C) shall be carried out in a manner con-
sistent with section 1120A and part H of title I;
and
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‘‘(D) may include the costs of evaluation ac-
tivities.
‘‘(b) SUPPLEMENT, NOT
SUPPLANT.—A program
under this chapter that supplements the number of hours
of instruction students receive from State and local sources
shall be considered to comply with the supplement, not sup-
plant requirement of section 1120A without regard to the
subject areas in which instruction is given during those
hours.
‘‘SEC. 1416. INSTITUTION-WIDE PROJECTS.
‘‘A State agency that provides free public education
for children and youth in an institution for neglected or
delinquent children and youth (other than an adult correc-
tional institution) or attending a community-day program
for such children may use funds received under this part
to serve all children in, and upgrade the entire educational
effort of, that institution or program if the State agency
has developed, and the State educational agency has ap-
proved, a comprehensive plan for that institution or pro-
gram that—
‘‘(1) provides for a comprehensive assessment of
the educational needs of all youth in the institution
or program serving juveniles;
‘‘(2) provides for a comprehensive assessment of
the educational needs of youth aged 20 and younger
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in adult facilities who are expected to complete incar-
ceration within a two-year period;
‘‘(3) describes the steps the State agency has
taken, or will take, to provide all youth under age 21
with the opportunity to meet challenging State con-
tent standards and challenging State student perform-
ance standards in order to improve the likelihood that
the youths will complete secondary school, attain a
secondary diploma or its recognized equivalent, or
find employment after leaving the institution;
‘‘(4) describes the instructional program, pupil
services, and procedures that will be used to meet the
needs described in paragraph (1), including, to the
extent feasible, the provision of mentors for students;
‘‘(5) specifically describes how such funds will be
used;
‘‘(6) describes the measures and procedures that
will be used to assess student progress;
‘‘(7) describes how the agency has planned, and
will implement and evaluate, the institution-wide or
program-wide project in consultation with personnel
providing direct instructional services and support
services in institutions or community-day programs
for neglected or delinquent children and personnel
from the State educational agency; and
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‘‘(8) includes an assurance that the State agency
has provided for appropriate training for teachers
and other instructional and administrative personnel
to enable such teachers and personnel to carry out the
project effectively.
‘‘SEC. 1417. THREE-YEAR PROGRAMS OR PROJECTS.
‘‘If a State agency operates a program or project under
this chapter in which individual children are likely to par-
ticipate for more than 1 year, the State educational agency
may approve the State agency’s application for a subgrant
under this chapter for a period of not more than 3 years.
‘‘SEC. 1418. TRANSITION SERVICES.
‘‘(a) TRANSITION SERVICES.—Each State agency shall
reserve not less than 5 percent and not more than 30 percent
of the amount such agency receives under this chapter for
any fiscal year to support—
‘‘(1) projects that facilitate the transition of chil-
dren and youth from State-operated institutions to
local educational agencies; or
‘‘(2) the successful reentry of youth offenders,
who are age 20 or younger and have received a sec-
ondary school diploma or its recognized equivalent,
into postsecondary education and vocational training
programs through strategies designed to expose the
youth to, and prepare the youth for, postsecondary
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education and vocational training programs, such
as—
‘‘(A) preplacement programs that allow ad-
judicated or incarcerated students to audit or at-
tend courses on college, university, or community
college campuses, or through programs provided
in institutional settings;
‘‘(B) worksite schools, in which institutions
of higher education and private or public em-
ployers partner to create programs to help stu-
dents make a successful transition to postsec-
ondary education and employment;
‘‘(C) essential support services to ensure the
success of the youth, such as—
‘‘(i) personal, vocational, and aca-
demic counseling;
‘‘(ii) placement services designed to
place the youth in a university, college, or
junior college program;
‘‘(iii) health services;
‘‘(iv) information concerning, and as-
sistance in obtaining, available student fi-
nancial aid;
‘‘(v) exposure to cultural events; and
‘‘(vi) job placement services.
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‘‘(b) CONDUCT OF PROJECTS.—A project supported
under this section may be conducted directly by the State
agency, or through a contract or other arrangement with
one or more local educational agencies, other public agen-
cies, or private nonprofit organizations.
‘‘(c) CONSTRUCTION.—Nothing in this section shall be
construed to prohibit a school that receives funds under sub-
section (a) from serving neglected and delinquent children
and youth simultaneously with students with similar edu-
cational needs, in the same educational settings where ap-
propriate.
‘‘SEC. 1419. EVALUATION; TECHNICAL ASSISTANCE; ANNUAL
MODEL PROGRAM.
‘‘The Secretary shall reserve not more than 5 percent
of the amount made available to carry out this chapter for
a fiscal year—
‘‘(1) to develop a uniform model to evaluate the
effectiveness of programs assisted under this chapter;
‘‘(2) to provide technical assistance to and sup-
port the capacity building of State agency programs
assisted under this chapter; and
‘‘(3) to create an annual model correctional
youthful offender program event under which a na-
tional award is given to programs assisted under this
chapter which demonstrate program excellence in—
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‘‘(A) transition services for reentry in and
completion of regular or other education pro-
grams operated by a local educational agency;
‘‘(B) transition services to job training pro-
grams and employment, utilizing existing sup-
port programs such as One Stop Career Centers;
‘‘(C) transition services for participation in
postsecondary education programs;
‘‘(D) the successful reentry into the commu-
nity; and
‘‘(E) the impact on recidivism reduction for
juvenile and adult programs.
‘‘Chapter 2—Local Agency Programs
‘‘SEC. 1421. PURPOSE.
‘‘The purpose of this chapter is to support the oper-
ation of local educational agency programs that involve col-
laboration with locally operated correctional facilities to—
‘‘(1) carry out high quality education programs
to prepare youth for secondary school completion,
training, and employment, or further education;
‘‘(2) provide activities to facilitate the transition
of such youth from the correctional program to fur-
ther education or employment; and
‘‘(3) operate dropout prevention programs in
local schools for youth at risk of dropping out of
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school and youth returning from correctional facili-
ties.
‘‘SEC. 1422. PROGRAMS OPERATED BY LOCAL EDUCATIONAL
AGENCIES.
‘‘(a) LOCAL SUBGRANTS.—With funds made available
under section 1412(b), the State educational agency shall
award subgrants to local educational agencies with high
numbers or percentages of youth residing in locally operated
(including county operated) correctional facilities for youth
(including facilities involved in community day programs).
‘‘(b) SPECIAL RULE.—A local educational agency
which includes a correctional facility that operates a school
is not required to operate a dropout prevention program
if more than 30 percent of the youth attending such facility
will reside outside the boundaries of the local educational
agency upon leaving such facility.
‘‘(c) NOTIFICATION.—A State educational agency shall
notify local educational agencies within the State of the eli-
gibility of such agencies to receive a subgrant under this
chapter.
‘‘SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.
‘‘Eligible local educational agencies desiring assistance
under this chapter shall submit an application to the State
educational agency, containing such information as the
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State educational agency may require. Each such applica-
tion shall include—
‘‘(1) a description of the program to be assisted;
‘‘(2) 
a 
description 
of 
formal 
agreements
between—
‘‘(A) the local educational agency; and
‘‘(B) correctional facilities and alternative
school programs serving youth involved with the
juvenile justice system to operate programs for
delinquent youth;
‘‘(3) as appropriate, a description of how par-
ticipating schools will coordinate with facilities work-
ing with delinquent youth to ensure that such youth
are participating in an education program com-
parable to one operating in the local school such
youth would attend;
‘‘(4) as appropriate, a description of the dropout
prevention program operated by participating schools
and the types of services such schools will provide to
at-risk youth in participating schools and youth re-
turning from correctional facilities;
‘‘(5) as appropriate, a description of the youth
expected to be served by the dropout prevention pro-
gram and how the school will coordinate existing edu-
cational programs to meet unique education needs;
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‘‘(6) as appropriate, a description of how schools
will coordinate with existing social and health serv-
ices to meet the needs of students at risk of dropping
out of school and other participating students, includ-
ing prenatal health care and nutrition services related
to the health of the parent and child, parenting and
child development classes, child care, targeted re-entry
and outreach programs, referrals to community re-
sources, and scheduling flexibility;
‘‘(7) as appropriate, a description of any part-
nerships with local businesses to develop training and
mentoring services for participating students;
‘‘(8) as appropriate, a description of how the
program will involve parents in efforts to improve the
educational achievement of their children, assist in
dropout prevention activities, and prevent the involve-
ment of their children in delinquent activities;
‘‘(9) a description of how the program under this
chapter will be coordinated with other Federal, State,
and local programs, such as programs under title I
of the Workforce Investment Act of 1998 and voca-
tional education programs serving at-risk youth;
‘‘(10) a description of how the program will be
coordinated with programs operated under the Juve-
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nile Justice and Delinquency Prevention Act of 1974
and other comparable programs, if applicable;
‘‘(11) as appropriate, a description of how
schools will work with probation officers to assist in
meeting the needs of youth returning from correc-
tional facilities;
‘‘(12) a description of efforts participating
schools will make to ensure correctional facilities
working with youth are aware of a child’s existing in-
dividualized education program; and
‘‘(13) as appropriate, a description of the steps
participating schools will take to find alternative
placements for youth interested in continuing their
education but unable to participate in a regular pub-
lic school program.
‘‘SEC. 1424. USES OF FUNDS.
‘‘Funds provided to local educational agencies under
this chapter may be used, where appropriate, for—
‘‘(1) dropout prevention programs which serve
youth at educational risk, including pregnant and
parenting teens, youth who have come in contact with
the juvenile justice system, youth at least one year be-
hind their expected grade level, migrant youth, immi-
grant youth, students with limited-English pro-
ficiency and gang members;
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‘‘(2) the coordination of health and social serv-
ices for such individuals if there is a likelihood that
the provision of such services, including day care and
drug and alcohol counseling, will improve the likeli-
hood such individuals will complete their education;
and
‘‘(3) programs to meet the unique education
needs of youth at risk of dropping out of school, which
may include vocational education, special education,
career counseling, and assistance in securing student
loans or grants.
‘‘SEC. 1425. PROGRAM REQUIREMENTS FOR CORRECTIONAL
FACILITIES RECEIVING FUNDS UNDER THIS
SECTION.
‘‘Each correctional facility having an agreement with
a local educational agency under section 1423(2) to provide
services to youth under this chapter shall—
‘‘(1) where feasible, ensure educational programs
in juvenile facilities are coordinated with the stu-
dent’s home school, particularly with respect to spe-
cial education students with an individualized edu-
cation program;
‘‘(2) notify the local school of a youth if the
youth is identified as in need of special education
services while in the facility;
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‘‘(3) where feasible, provide transition assistance
to help the youth stay in school, including coordina-
tion of services for the family, counseling, assistance
in accessing drug and alcohol abuse prevention pro-
grams, tutoring, and family counseling;
‘‘(4) provide support programs which encourage
youth who have dropped out of school to reenter school
once their term has been completed or provide such
youth with the skills necessary for such youth to gain
employment or seek a secondary school diploma or its
recognized equivalent;
‘‘(5) work to ensure such facilities are staffed
with teachers and other qualified staff who are
trained to work with children with disabilities and
other students with special needs taking into consider-
ation the unique needs of such children and students;
‘‘(6) ensure educational programs in correctional
facilities are related to assisting students to meet high
educational standards;
‘‘(7) use, to the extent possible, technology to as-
sist in coordinating educational programs between the
juvenile facility and the community school;
‘‘(8) where feasible, involve parents in efforts to
improve the educational achievement of their children
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and prevent the further involvement of such children
in delinquent activities;
‘‘(9) coordinate funds received under this pro-
gram with other local, State, and Federal funds avail-
able to provide services to participating youth, such
as funds made available under title I of the Workforce
Investment Act of 1998, and vocational education
funds;
‘‘(10) coordinate programs operated under this
chapter with activities funded under the Juvenile Jus-
tice and Delinquency Prevention Act of 1974 and
other comparable programs, if applicable; and
‘‘(11) if appropriate, work with local businesses
to develop training and mentoring programs for par-
ticipating youth.
‘‘SEC. 1426. ACCOUNTABILITY.
‘‘The State educational agency may—
‘‘(1) reduce or terminate funding for projects
under this chapter if a local educational agency does
not show progress in reducing dropout rates for male
students and for female students over a 3-year period;
and
‘‘(2) require juvenile facilities to demonstrate,
after receiving assistance under this chapter for 3
years, that there has been an increase in the number
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of youth returning to school, obtaining a secondary
school diploma or its recognized equivalent, or obtain-
ing employment after such youth are released.
‘‘Chapter 3—General Provisions
‘‘SEC. 1431. PROGRAM EVALUATIONS.
‘‘(a) SCOPE OF EVALUATION.—Each State agency or
local educational agency that conducts a program under
chapter 1 or 2 shall evaluate the program, disaggregating
data on participation by sex, and if feasible, by race, eth-
nicity, and age, not less than once every 3 years to deter-
mine the program’s impact on the ability of participants
to—
‘‘(1) maintain and improve educational achieve-
ment;
‘‘(2) accrue school credits that meet State re-
quirements for grade promotion and secondary school
graduation;
‘‘(3) make the transition to a regular program or
other education program operated by a local edu-
cational agency;
‘‘(4) complete secondary school (or secondary
school equivalency requirements) and obtain employ-
ment after leaving the institution; and
‘‘(5) participate in postsecondary education and
job training programs.
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‘‘(b) EVALUATION MEASURES.—In conducting each
evaluation under subsection (a), a State agency or local
educational agency shall use multiple and appropriate
measures of student progress.
‘‘(c) EVALUATION RESULTS.—Each State agency and
local educational agency shall—
‘‘(1) submit evaluation results to the State edu-
cational agency and the Secretary; and
‘‘(2) use the results of evaluations under this sec-
tion to plan and improve subsequent programs for
participating children and youth.
‘‘SEC. 1432. DEFINITIONS.
‘‘In this subpart:
‘‘(1) ADULT CORRECTIONAL INSTITUTION.—The
term ‘adult correctional institution’ means a facility
in which persons are confined as a result of a convic-
tion for a criminal offense, including persons under
21 years of age.
‘‘(2) AT-RISK YOUTH.—The term ‘at-risk youth’
means school aged youth who are at risk of academic
failure, have drug or alcohol problems, are pregnant
or are parents, have come into contact with the juve-
nile justice system in the past, are at least one year
behind the expected grade level for the age of the
youth, have limited-English proficiency, are gang
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members, have dropped out of school in the past, or
have high absenteeism rates at school.
‘‘(3) COMMUNITY
DAY
PROGRAM.—The term
‘community day program’ means a regular program
of instruction provided by a State agency at a com-
munity day school operated specifically for neglected
or delinquent children and youth.
‘‘(4) INSTITUTION FOR NEGLECTED OR DELIN-
QUENT CHILDREN AND YOUTH.—The term ‘institution
for neglected or delinquent children and youth’
means—
‘‘(A) a public or private residential facility,
other than a foster home, that is operated for the
care of children who have been committed to the
institution or voluntarily placed in the institu-
tion under applicable State law, due to abandon-
ment, neglect, or death of their parents or guard-
ians; or
‘‘(B) a public or private residential facility
for the care of children who have been adju-
dicated to be delinquent or in need of super-
vision.’’.
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PART E—NATIONAL ASSESSMENT OF TITLE I
SEC. 151. NATIONAL ASSESSMENT OF TITLE I.
Section 1501 (20 U.S.C. 6491) is deleted and replaced
with the following:
‘‘SEC. 1501. NATIONAL ASSESSMENT OF TITLE I.
‘‘(a) NATIONAL ASSESSMENT.—The Secretary shall
conduct a national assessment of the impact of the policies
enacted into law under title I of the Better Education for
Students and Teachers Act on States, local educational
agencies, schools, and students.
‘‘(1) Such assessment shall be planned, reviewed,
and conducted in consultation with an independent
panel of researchers, State practitioners, local practi-
tioners, and other appropriate individuals.
‘‘(2) The assessment shall examine, at a min-
imum, how schools, local educational agencies, and
States have—
‘‘(A) made progress towards the goal of all
students reaching the proficient level in at least
reading and math based on a State’s content and
performance standards and the State assessments
required under section 1111 and on the National
Assessment of Educational Progress;
‘‘(B) implemented scientifically-based read-
ing instruction;
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‘‘(C) implemented the requirements for the
development of assessments for students in grades
3–8 and administered such assessments, includ-
ing the time and cost required for their develop-
ment and how well they meet the requirements
for assessments described in this title;
‘‘(D) defined adequate yearly progress and
what has been the impact of applying this stand-
ard for adequacy to schools, local educational
agencies, and the State in terms of the numbers
not meeting the standard and the year to year
changes in such identification for individual
schools and local educational agencies;
‘‘(E) publicized and disseminated the local
educational agencies report cards to teachers,
school staff, students, and the community;
‘‘(F) implemented the school improvement
requirements 
described 
in 
section 
1116,
including—
‘‘(i) the number of schools identified for
school improvement and how many years
schools remain in this status;
‘‘(ii) the types of support provided by
the State and local educational agencies to
schools and local educational agencies iden-
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tified as in need of improvement and the
impact of such support on student achieve-
ment;
‘‘(iii) the number of parents who take
advantage of the public school choice provi-
sions of this title, the costs associated with
implementing these provisions, and the im-
pact of attending another school on student
achievement;
‘‘(iv) the number of parents who choose
to take advantage of the supplemental serv-
ices option, the criteria used by the States
to determine the quality of providers, the
kinds of services that are available and uti-
lized, the costs associated with imple-
menting this option, and the impact of re-
ceiving supplemental services on student
achievement; and
‘‘(v) the kinds of actions that are taken
with regards to schools and local edu-
cational agencies identified for reconstitu-
tion.
‘‘(G) used funds under this title to improve
student achievement, including how schools have
provided either schoolwide improvement or tar-
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geted assistance and provided professional devel-
opment to school personnel;
‘‘(H) used funds made available under this
title to provide preschool and family literacy
services and the impact of these services on stu-
dents’ school readiness;
‘‘(I) afforded parents meaningful opportuni-
ties to be involved in the education of their chil-
dren at school and at home;
‘‘(J) distributed resources, including the
State reservation of funds for school improve-
ment, to target local educational agencies and
schools with the greatest need;
‘‘(K) used State and local educational agen-
cy funds and resources to support schools and
provide technical assistance to turn around fail-
ing schools; and,
‘‘(L) used State and local educational agen-
cy funds and resources to help schools with 50
percent or more students living in families below
the poverty line meet the requirement of having
all teachers fully qualified in four years.
‘‘(b) STUDENT ACHIEVEMENT.—As part of the na-
tional assessment, the Secretary shall evaluate the effective-
ness of the programs and services carried out under this
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title, especially part A, in improving student achievement.
Such evaluation shall—
‘‘(1) provide information on what types of pro-
grams and services are most likely to help students
reach the States’ performance standards for proficient
and advanced;
‘‘(2) examine the effectiveness of comprehensive
school reform and improvement strategies for raising
student achievement;
‘‘(3) to the extent possible, have a longitudinal
design that tracks a representative sample of students
over time; and
‘‘(4) to the extent possible, report on the achieve-
ment of the groups of students described in section
1111(b)(2)(B)(v)(II).
‘‘(c) DEVELOPMENTALLY APPROPRIATE MEASURES.—
In conducting the national assessment, the Secretary shall
use developmentally appropriate measures to assess student
performance.
‘‘(d) STUDIES AND DATA COLLECTION.—The Secretary
may conduct studies and evaluations and collect such data
as is necessary to carry out this section either directly or
through grants and contracts to—
‘‘(1) assess the implementation and effectiveness
of programs under this title;
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‘‘(2) collect the data necessary to comply with the
Government Performance and Results Act of 1993.
‘‘(e) REPORTING.—The Secretary shall provide to the
relevant committees of the Senate and House—
‘‘(1) by December 30, 2004, an interim report on
the progress and any interim results of the national
assessment of title I; and
‘‘(2) by December 30, 2007, a final report of the
results of the assessment.’’.
PART F—21st CENTURY LEARNING CENTERS;
COMPREHENSIVE SCHOOL REFORM; SCHOOL
DROPOUT PREVENTION
SEC. 161. 21st CENTURY LEARNING CENTERS; COMPREHEN-
SIVE SCHOOL REFORM.
Title I (20 U.S.C. 6301 et seq.) is amended—
(1) by redesignating part F as part I;
(2) by redesignating sections 1601 through 1604
as sections 1901 through 1904, respectively; and
(3) by inserting after part E the following:
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‘‘PART F—21st CENTURY COMMUNITY LEARNING
CENTERS
‘‘Subpart 1—21st Century Community Learning
Centers
‘‘SEC. 1601. SHORT TITLE.
‘‘This subpart may be cited as the ‘21st Century Com-
munity Learning Centers Act’.
‘‘SEC. 1602. PURPOSE.
‘‘The purpose of this subpart is to provide opportuni-
ties to communities to establish or expand activities in com-
munity learning centers that—
‘‘(1) provide opportunities for academic enrich-
ment, including providing tutorial services to help
students, particularly students who attend low-per-
forming schools, to meet State and local student per-
formance standards in core academic subjects, such as
reading and mathematics;
‘‘(2) offer students a broad array of additional
services, programs, and activities, such as youth de-
velopment activities, drug and violence prevention
programs, art, music, and recreation programs, tech-
nology education programs, and character education
programs, that are designed to reinforce and com-
plement the regular academic program of partici-
pating students; and
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‘‘(3) offer families of students enrolled in com-
munity learning centers opportunities for lifelong
learning and literacy development.
‘‘SEC. 1603. DEFINITIONS.
‘‘In this subpart:
‘‘(1) COMMUNITY LEARNING CENTER.—The term
‘community learning center’ is an entity that—
‘‘(A)(i) assists students to meet State con-
tent and student performance standards in core
academic subjects, such as reading and mathe-
matics, by primarily providing to the students,
during non-school hours or periods when school
is not in session, tutorial and other academic en-
richment services in addition to other activities
(such as youth development activities, drug and
violence prevention programs, art, music, and
recreation programs, technology education pro-
grams, and character education programs) that
reinforce and complement the regular academic
program of the students; and
‘‘(ii) offers families of students enrolled in
such center opportunities for lifelong learning
and literacy development; and
‘‘(B) is operated by 1 or more local edu-
cational agencies, community-based organiza-
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tions, units of general purpose local government,
or other public or private entities.
‘‘(2) COVERED
PROGRAM.—The term ‘covered
program’ means a program for which—
‘‘(A) the Secretary made a grant under part
I of title X (as in effect on the day before the
date of enactment of the Better Education for
Students and Teachers Act); and
‘‘(B) the grant period had not ended on that
date of enactment.
‘‘(3) ELIGIBLE ORGANIZATION.—The term ‘eligi-
ble organization’ means—
‘‘(A) a local educational agency, a commu-
nity-based organization, a unit of general pur-
pose local government, or another public or pri-
vate entity; or
‘‘(B) a consortium of entities described in
subparagraph (A).
‘‘(4) STATE.—The term ‘State’ means the State
educational agency of a State (as defined in section
3).
‘‘(5) UNIT OF GENERAL PURPOSE LOCAL GOV-
ERNMENT.—The term ‘unit of general purpose local
government’ means any city, town, township, parish,
village, or other general purpose political subdivision.
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‘‘SEC. 1604. PROGRAM AUTHORIZED.
‘‘The Secretary is authorized to award grants to States
to make awards to eligible organizations to plan, imple-
ment, or expand community learning centers that serve—
‘‘(1) students who primarily attend—
‘‘(A) schools eligible for schoolwide pro-
grams under section 1114; or
‘‘(B) schools that serve a high percentage of
students from low-income families; and
‘‘(2) the families of students described in para-
graph (1).
‘‘SEC. 1605. ALLOTMENTS TO STATES.
‘‘(a) RESERVATION.—From the funds appropriated
under section 1002(g) for any fiscal year, the Secretary
shall reserve—
‘‘(1) such amount as may be necessary to make
continuation awards for covered programs to grant
recipients under part I of title X (under the terms of
those grants), as in effect on the day before the effec-
tive date of the Better Education for Students and
Teachers Act;
‘‘(2) not more than 1 percent for national activi-
ties, which the Secretary may carry out directly or
through grants and contracts, such as providing tech-
nical assistance to organizations carrying out pro-
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grams under this subpart or conducting a national
evaluation; and
‘‘(3) not more than 1 percent for payments to the
outlying areas and the Bureau of Indian Affairs, to
be allotted in accordance with their respective needs
for assistance under this subpart, as determined by
the Secretary, to enable the areas and the Bureau to
carry out the objectives of this subpart.
‘‘(b) STATE ALLOTMENTS.—
‘‘(1) DETERMINATION.—
‘‘(A) BASIS.—From the funds appropriated
under section 1002(g) for any fiscal year and re-
maining after the Secretary makes reservations
under subsection (a), the Secretary shall allot to
each State for the fiscal year an amount that
bears the same relationship to the remainder as
the amount the State received under subpart 2 of
part A for the preceding fiscal year bears to the
amount all States received under that subpart
for the preceding fiscal year, except as provided
in subparagraph (B).
‘‘(B) EXCEPTION.—No State receiving an
allotment under subparagraph (A) may receive
less than 1⁄2 of 1 percent of the total amount al-
lotted under subparagraph (A) for a fiscal year.
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‘‘(2) DEFINITION.—In this subsection, the term ‘State’
means each of the 50 States, the District of Columbia, and
the Commonwealth of Puerto Rico.
‘‘SEC. 1606. STATE PLANS.
‘‘Each State seeking a grant under this subpart shall
submit to the Secretary a plan, which may be submitted
as part of a State’s consolidated plan under section 5502,
at such time, in such manner, and containing such infor-
mation as the Secretary may reasonably require. At a min-
imum, the plan shall—
‘‘(1) describe how the State will use funds re-
ceived under this subpart, including funds reserved
for State-level activities;
‘‘(2) contain an assurance that the State will
make awards under this subpart for eligible organiza-
tions only to eligible organizations that propose to
serve—
‘‘(A) students who primarily attend—
‘‘(i) schools eligible for schoolwide pro-
grams under section 1114; or
‘‘(ii) schools that serve a high percent-
age of students from low-income families;
and
‘‘(B) the families of students described in
subparagraph (A);
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‘‘(3) describe the procedures and criteria the
State will use for reviewing applications and award-
ing funds to eligible organizations on a competitive
basis, which shall include procedures and criteria that
take into consideration the likelihood that a proposed
center will help participating students meet local con-
tent and performance standards by increasing their
academic performance and achievement;
‘‘(4) describe how the State will ensure that
awards made under this subpart are—
‘‘(A) of sufficient size and scope to support
high-quality, effective programs that are con-
sistent with the purpose of this subpart; and
‘‘(B) in amounts that are consistent with
section 1608(b);
‘‘(5) contain an assurance that the State—
‘‘(A) will not make awards for programs
that exceed 4 years;
‘‘(B) will ensure an equitable distribution of
awards among urban and rural areas of the
State; and
‘‘(C) will require each eligible organization
seeking such an award to submit a plan describ-
ing how the center to be funded through the
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award will continue after funding under this
subpart ends;
‘‘(6) describe the State’s performance measures
for programs carried out under this subpart, includ-
ing measures relating to increased academic perform-
ance and achievement, and how the State will evalu-
ate the effectiveness of those programs;
‘‘(7) contain an assurance that funds appro-
priated to carry out this subpart will be used to sup-
plement, and not supplant, other Federal, State, and
local public funds expended to provide programs and
activities authorized under this subpart; and
‘‘(8) contain an assurance that the State will re-
quire eligible organizations to describe in their appli-
cations under section 1609 how the transportation
needs of participating students will be addressed.
‘‘SEC. 1607. STATE-LEVEL ACTIVITIES.
‘‘(a) IN GENERAL.—A State that receives an allotment
under section 1605 for a fiscal year shall use not more than
6 percent of the funds made available through the allotment
for State-level activities described in paragraphs (1) and
(2) of subsection (b).
‘‘(b) ACTIVITIES.—
‘‘(1) PLANNING, PEER
REVIEW, AND
SUPER-
VISION.—The State may use not more than 3 percent
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of the funds made available through the allotment to
pay for the costs of—
‘‘(A) establishing and implementing a peer
review process for applications described in sec-
tion 1609 (including consultation with the Gov-
ernor and other State agencies responsible for
administering youth development programs and
adult learning activities);
‘‘(B) supervising the awarding of funds to
eligible organizations (in consultation with the
Governor and other State agencies responsible for
administering youth development programs and
adult learning activities);
‘‘(C) planning and supervising the use of
funds made available under this subpart, and
processing the funds; and
‘‘(D) monitoring activities.
‘‘(2) EVALUATION, TRAINING, AND
TECHNICAL
ASSISTANCE.—The State may use not more than 3
percent of the funds made available through the allot-
ment to pay for the costs of—
‘‘(A) comprehensive evaluation (directly, or
through a grant or contract) of the effectiveness
of programs and activities provided under this
subpart; and
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‘‘(B) providing training and technical as-
sistance to eligible organizations who are appli-
cants or recipients of awards under this subpart.
‘‘SEC. 1608. AWARDS TO ELIGIBLE ORGANIZATIONS.
‘‘(a) AWARDS.—A State that receives an allotment
under section 1605 for a fiscal year shall use not less than
94 percent of the funds made available through the allot-
ment to make awards on a competitive basis to eligible or-
ganizations (including organizations and entities that
carry out projects described in section 1609(d)).
‘‘(b) AMOUNTS.—The State shall make the awards in
amounts of not less than $50,000.
‘‘SEC. 1609. LOCAL APPLICATION.
‘‘(a) APPLICATION.—To be eligible to receive an award
under this subpart, an eligible organization shall submit
an application to the State at such time, in such manner,
and including such information as the State may reason-
ably require. Each such application shall include—
‘‘(1) an evaluation of the needs, available re-
sources, and goals and objectives for the proposed
community learning center and a description of how
the program proposed to be carried out in the center
will address those needs (including the needs of work-
ing families); and
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‘‘(2) a description of the proposed community
learning center, including—
‘‘(A) a description of how the eligible orga-
nization will ensure that the program proposed
to be carried out at the center will reinforce and
complement the instructional programs of the
schools that students served by the program at-
tend;
‘‘(B) an identification of Federal, State,
and local programs that will be combined or co-
ordinated with the proposed program in order to
make the most effective use of public resources;
‘‘(C) an assurance that the proposed pro-
gram was developed, and will be carried out, in
active collaboration with the schools the students
attend;
‘‘(D) evidence that the eligible organization
has experience, or demonstrates promise of suc-
cess, in providing educational and related activi-
ties that will complement and enhance the stu-
dents’ academic performance and achievement
and positive youth development;
‘‘(E) an assurance that the program will
take place in a safe and easily accessible school
or other facility;
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‘‘(F) a description of how students partici-
pating in the program carried out by the center
will travel safely to and from the center and
home;
‘‘(G) a description of how the eligible orga-
nization will disseminate information about the
program to the community in a manner that is
understandable and accessible;
‘‘(H) a description of a preliminary plan
for how the center will continue after funding
under this subpart ends; and
‘‘(I) an assurance that the eligible organiza-
tion will, to the maximum extent practicable,
carry out the proposed program with commu-
nity-based organizations that have experience in
providing before and after school programs, such
as the Young Men’s Christian Association
(YMCA), the Police Athletic and Activities
Leagues, Boys and Girls Clubs, and Big Broth-
ers/Big Sisters of America.
‘‘(b) PRIORITY.—In making awards under this sub-
part, the State shall give equal priority to applications—
‘‘(1) submitted jointly by schools receiving fund-
ing under part A and community-based organizations
or other eligible organizations;
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‘‘(2) submitted by such schools or consortia of
such schools; and
‘‘(3) submitted by community-based organiza-
tions or other eligible organizations serving commu-
nities in which such schools are located.
‘‘(c) APPROVAL
OF
CERTAIN
APPLICATIONS.—The
State may approve an application under this subpart for
a program to be located in a facility other than an elemen-
tary school or secondary school, only if the program—
‘‘(1) will be accessible to the students proposed in
the application to be served; and
‘‘(2) will be as effective as the program would be
if the program were located in such a school.
‘‘(d) AFTER SCHOOL SERVICES.—Grant funds award-
ed under this subpart may be used by organizations or enti-
ties to implement programs to provide after school services
for limited English proficient students that emphasize lan-
guage and life skills.
‘‘Subpart 2—Community Technology Centers
‘‘SEC. 1611. PURPOSE; PROGRAM AUTHORITY.
‘‘(a) PURPOSE.—It is the purpose of this subpart to
assist eligible applicants to—
‘‘(1) create or expand community technology cen-
ters that will provide disadvantaged residents of eco-
nomically distressed urban and rural communities
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with access to information technology and related
training; and
‘‘(2) provide technical assistance and support to
community technology centers.
‘‘(b) PROGRAM AUTHORITY.—
‘‘(1) IN GENERAL.—The Secretary is authorized,
through the Office of Educational Technology, to
award grants, contracts, or cooperative agreements on
a competitive basis to eligible applicants in order to
assist such applicants in—
‘‘(A) creating or expanding community
technology centers; or
‘‘(B) providing technical assistance and
support to community technology centers.
‘‘(2) PERIOD OF AWARD.—The Secretary may
award grants, contracts, or cooperative agreements
under this subpart for a period of not more than 3
years.
‘‘(3) SERVICE OF AMERICORPS PARTICIPANTS.—
The Secretary may collaborate with the Chief Execu-
tive Officer of the Corporation for National and Com-
munity Service on the use of participants in National
Service programs carried out under subtitle C of title
I of the National and Community Service Act of 1990
in community technology centers.
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‘‘SEC. 
1612. 
ELIGIBILITY 
AND 
APPLICATION 
REQUIRE-
MENTS.
‘‘(a) ELIGIBLE APPLICANTS.—In order to be eligible
to receive an award under this subpart, an applicant
shall—
‘‘(1) have the capacity to expand significantly
access to computers and related services for disadvan-
taged residents of economically distressed urban and
rural communities (who would otherwise be denied
such access); and
‘‘(2) be—
‘‘(A) an entity such as a foundation, mu-
seum, library, for-profit business, public or pri-
vate nonprofit organization, or community-based
organization;
‘‘(B) an institution of higher education;
‘‘(C) a State educational agency;
‘‘(D) a local education agency; or
‘‘(E) a consortium of entities described in
subparagraphs (A), (B), (C), or (D).
‘‘(b) APPLICATION REQUIREMENTS.—In order to re-
ceive an award under this subpart, an eligible applicant
shall submit an application to the Secretary at such time,
and containing such information, as the Secretary may re-
quire. Such application shall include—
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‘‘(1) a description of the proposed project, in-
cluding a description of the magnitude of the need for
the services and how the project would expand access
to information technology and related services to dis-
advantaged residents of an economically distressed
urban or rural community;
‘‘(2) a demonstration of—
‘‘(A) the commitment, including the finan-
cial commitment, of entities such as institutions,
organizations, business and other groups in the
community that will provide support for the cre-
ation, expansion, and continuation of the pro-
posed project; and
‘‘(B) the extent to which the proposed
project establishes linkages with other appro-
priate agencies, efforts, and organizations pro-
viding services to disadvantaged residents of an
economically distressed urban or rural commu-
nity;
‘‘(3) a description of how the proposed project
would be sustained once the Federal funds awarded
under this subpart end; and
‘‘(4) a plan for the evaluation of the program,
which shall include benchmarks to monitor progress
toward specific project objectives.
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‘‘(c) MATCHING REQUIREMENTS.—The Federal share
of the cost of any project funded under this subpart shall
not exceed 50 percent. The non-Federal share of such project
may be in cash or in kind, fairly evaluated, including serv-
ices.
‘‘SEC. 1613. USES OF FUNDS.
‘‘(a) REQUIRED USES.—A recipient shall use funds
under this subpart for—
‘‘(1) creating or expanding community tech-
nology centers that expand access to information tech-
nology and related training for disadvantaged resi-
dents of distressed urban or rural communities; and
‘‘(2) evaluating the effectiveness of the project.
‘‘(b) PERMISSIBLE USES.—A recipient may use funds
under this subpart for activities, described in its applica-
tion, that carry out the purposes of this subpart, such as—
‘‘(1) supporting a center coordinator, and staff,
to supervise instruction and build community part-
nerships;
‘‘(2) acquiring equipment, networking capabili-
ties, and infrastructure to carry out the project; and
‘‘(3) developing and providing services and ac-
tivities for community residents that provide access to
computers, information technology, and the use of
such technology in support of pre-school preparation,
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academic achievement, lifelong learning, and work-
force development, such as the following:
‘‘(A) After-school activities in which chil-
dren and youths use software that provides aca-
demic enrichment and assistance with homework,
develop their technical skills, explore the Inter-
net, and participate in multimedia activities,
including web page design and creation.
‘‘(B) Adult education and family literacy
activities through technology and the Internet,
including—
‘‘(i) General Education Development,
English as a Second Language, and adult
basic education classes or programs;
‘‘(ii) introduction to computers;
‘‘(iii) intergenerational activities; and
‘‘(iv) lifelong learning opportunities.
‘‘(C) Career development and job prepara-
tion activities, such as—
‘‘(i) training in basic and advanced
computer skills;
‘‘(ii) resume writing workshops; and
‘‘(iii) access to databases of employ-
ment opportunities, career information, and
other online materials.
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‘‘(D) Small business activities, such as—
‘‘(i) computer-based training for basic
entrepreneurial skills and electronic com-
merce; and
‘‘(ii) access to information on business
start-up programs that is available online,
or from other sources.
‘‘(E) Activities that provide home access to
computers and technology, such as assistance
and services to promote the acquisition, installa-
tion, and use of information technology in the
home 
through 
low-cost 
solutions 
such 
as
networked computers, web-based television de-
vices, and other technology.
‘‘SEC. 1614. AUTHORIZATION OF APPROPRIATIONS.
‘‘For purposes of carrying out this subpart, there is
authorized to be appropriated $100,000,000 for fiscal year
2002 and such sums as may be necessary for each of the
6 succeeding fiscal years.
‘‘PART G—COMPREHENSIVE SCHOOL REFORM
‘‘SEC. 1701. PURPOSE.
‘‘The purpose of this part is to provide financial incen-
tives for schools to develop comprehensive school reforms
based upon promising and effective practices and scientif-
ically based research programs that emphasize basic aca-
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demics and parental involvement so that all children can
meet challenging State content and student performance
standards.
‘‘SEC. 1702. PROGRAM AUTHORIZATION.
‘‘(a) PROGRAM AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary is authorized
to award grants to State educational agencies, from
allotments under paragraph (2), to enable the State
educational agencies to award subgrants to local edu-
cational agencies to carry out the purpose described
in section 1701.
‘‘(2) ALLOTMENTS.—
‘‘(A) RESERVATIONS.—Of the amount ap-
propriated under section 1002(h) for a fiscal
year, the Secretary may reserve—
‘‘(i) not more than 1 percent to provide
assistance to schools supported by the Bu-
reau of Indian Affairs and in the United
States Virgin Islands, Guam, American
Samoa, and the Commonwealth of the
Northern Mariana Islands according to
their respective needs for assistance under
this part;
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‘‘(ii) not more than 1 percent to con-
duct national evaluation activities described
in section 1707; and
‘‘(iii) 3 percent to promote quality ini-
tiatives described in section 1708.
‘‘(B) IN GENERAL.—Of the amount appro-
priated under section 1002(h) that remains after
making the reservation under subparagraph (A)
for a fiscal year, the Secretary shall allot to each
State for the fiscal year an amount that bears
the same ratio to the remainder for that fiscal
year as the amount made available under section
1124 to the State for the preceding fiscal year
bears to the total amount made available under
section 1124 to all States for that year.
‘‘(C) REALLOTMENT.—If a State does not
apply for funds under this section, the Secretary
shall reallot such funds to other States that do
not apply in proportion to the amount allotted
to such other States under subparagraph (B).
‘‘SEC. 1703. STATE APPLICATIONS.
‘‘(a) IN GENERAL.—Each State educational agency
that desires to receive a grant under this section shall sub-
mit an application to the Secretary at such time, in such
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manner, and containing such information as the Secretary
may reasonably require.
‘‘(b) 
CONTENTS.—Each 
such 
application 
shall
describe—
‘‘(1) the process and selection criteria by which
the State educational agency, using expert review,
will select local educational agencies to receive sub-
grants under this section;
‘‘(2) how the State educational agency will en-
sure that funds under this part are limited to com-
prehensive school reform programs that—
‘‘(A) include each of the components de-
scribed in section 1706(a);
‘‘(B) have the capacity to improve the aca-
demic achievement of all students in core aca-
demic subjects within participating schools; and
‘‘(C) are supported by technical assistance
providers that have a successful track record and
the capacity to deliver high quality materials,
professional development for school personnel
and on-site support during the full implementa-
tion period of the reforms;
‘‘(3) how the State educational agency will dis-
seminate information on comprehensive school re-
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forms that are based on promising and effective prac-
tices and scientifically based research programs;
‘‘(4) how the State educational agency will an-
nually evaluate the implementation of such reforms
and measure the extent to which the reforms have re-
sulted in increased student academic performance;
and
‘‘(5) how the State educational agency will make
available technical assistance to a local educational
agency or consortia of local educational agencies in
evaluating, developing, and implementing comprehen-
sive school reform.
‘‘SEC. 1704. STATE USE OF FUNDS.
‘‘(a) IN GENERAL.—Except as provided in subsection
(e), a State educational agency that receives a grant under
this part shall use the grant funds to award subgrants, on
a competitive basis, to local educational agencies or con-
sortia of local educational agencies in the State that receive
funds under part A to support comprehensive school reforms
in schools that are eligible for funds under part A.
‘‘(b) SUBGRANT REQUIREMENTS.—A subgrant to a
local educational agency or consortium shall be—
‘‘(1) of sufficient size and scope to support the
initial costs of comprehensive school reforms selected
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or designed by each school identified in the applica-
tion of the local educational agency or consortium;
‘‘(2) in an amount not less than $50,000 for each
participating school; and
‘‘(3) renewable for 2 additional 1-year periods
after the initial 1-year grant is made if the school is
making substantial progress in the implementation of
reforms.
‘‘(c) PRIORITY.—A State educational agency, in
awarding subgrants under this part, shall give priority to
local educational agencies or consortia that—
‘‘(1) plan to use the funds in schools identified
as being in need of improvement or corrective action
under section 1116(c); and
‘‘(2) demonstrate a commitment to assist schools
with budget allocation, professional development, and
other strategies necessary to ensure the comprehensive
school reforms are properly implemented and are sus-
tained in the future.
‘‘(d) GRANT CONSIDERATION.—In awarding subgrants
under this part, the State educational agency shall take into
consideration the equitable distribution of subgrants to dif-
ferent geographic regions within the State, including urban
and rural areas, and to schools serving elementary school
and secondary students.
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‘‘(e) ADMINISTRATIVE COSTS.—A State educational
agency that receives a grant under this part may reserve
not more than 5 percent of the grant funds for administra-
tive, evaluation, and technical assistance expenses.
‘‘(f) SUPPLEMENT.—Funds made available under this
part shall be used to supplement, and not supplant, any
other Federal, State, or local funds that would otherwise
be available to carry out the activities assisted under this
part.
‘‘(g) REPORTING.—Each State educational agency
that receives a grant under this part shall provide to the
Secretary such information as the Secretary may require,
including the names of local educational agencies and
schools receiving assistance under this part, the amount of
the assistance, a description of the comprehensive school re-
forms selected and used, and a copy of the State’s evaluation
of the implementation of comprehensive school reforms sup-
ported under this part and the student results achieved.
‘‘SEC. 1705. LOCAL APPLICATIONS.
‘‘(a) IN GENERAL.—Each local educational agency or
consortium of local educational agencies desiring a
subgrant under this section shall submit an application to
the State educational agency at such time, in such manner,
and containing such information as the State educational
agency may reasonably require.
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‘‘(b) CONTENTS.—Each such application shall—
‘‘(1) identify the schools, that are eligible for as-
sistance under part A, that plan to implement a com-
prehensive school reform program, including the pro-
jected costs of such a program;
‘‘(2) describe the comprehensive school reforms
based on scientifically-based research and effective
practices that such schools will implement;
‘‘(3) describe how the local educational agency or
consortium will provide technical assistance and sup-
port for the effective implementation of the promising
and effective practices and scientifically based re-
search school reforms selected by such schools; and
‘‘(4) describe how the local educational agency or
consortium will evaluate the implementation of such
comprehensive reforms and measure the results
achieved in improving student academic performance.
‘‘SEC. 1706. LOCAL USE OF FUNDS.
‘‘(a) USES OF FUNDS.—A local educational agency or
consortium that receives a subgrant under this section shall
provide the subgrant funds to schools, that are eligible for
assistance under part A and served by the agency, to enable
the schools to implement a comprehensive school reform pro-
gram for—
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‘‘(1) employing proven strategies for student
learning, teaching, and school management that are
based on promising and effective practices and sci-
entifically based research programs and have been
replicated successfully in schools;
‘‘(2) integrating a comprehensive design for effec-
tive school functioning, including instruction, assess-
ment, classroom management, professional develop-
ment, parental involvement, and school management,
that aligns the school’s curriculum, technology, and
professional development into a comprehensive reform
plan for schoolwide change designed to enable all stu-
dents to meet challenging State content and student
performance standards and addresses needs identified
through a school needs assessment;
‘‘(3) providing high quality and continuous
teacher and staff professional development;
‘‘(4) the inclusion of measurable goals for student
performance;
‘‘(5) support for teachers, principals, adminis-
trators, and other school personnel staff;
‘‘(6) meaningful community and parental in-
volvement initiatives that will strengthen school im-
provement activities;
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‘‘(7) using high quality external technical sup-
port and assistance from an entity that has experi-
ence and expertise in schoolwide reform and improve-
ment, which may include an institution of higher
education;
‘‘(8) evaluating school reform implementation
and student performance; and
‘‘(9) identification of other resources, including
Federal, State, local, and private resources, that shall
be used to coordinate services that will support and
sustain the comprehensive school reform effort.
‘‘(b) SPECIAL RULE.—A school that receives funds to
develop a comprehensive school reform program shall not
be limited to using nationally available approaches, but
may develop the school’s own comprehensive school reform
program for schoolwide change as described in subsection
(a).
‘‘SEC. 1707. NATIONAL EVALUATION AND REPORTS.
‘‘(a) IN GENERAL.—The Secretary shall develop a plan
for a national evaluation of the programs assisted under
this part.
‘‘(b) EVALUATION.—The national evaluation shall—
‘‘(1) evaluate the implementation and results
achieved by schools after 3 years of implementing
comprehensive school reforms; and
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‘‘(2) assess the effectiveness of comprehensive
school reforms in schools with diverse characteristics.
‘‘(c) REPORTS.—Prior to the completion of the na-
tional evaluation, the Secretary shall submit an interim re-
port describing implementation activities for the Com-
prehensive School Reform Program, which began in 1998,
to the Committee on Education and the Workforce, and the
Committee on Appropriations of the House of Representa-
tives, and the Committee on Health, Education, Labor, and
Pensions, and the Committee on Appropriations of the Sen-
ate.
‘‘SEC. 1708. QUALITY INITIATIVES.
‘‘The Secretary, through grants or contracts, shall
promote—
‘‘(1) a public-private effort, in which funds are
matched by the private sector, to assist States, local
educational agencies, and schools, in making in-
formed decisions upon approving or selecting pro-
viders of comprehensive school reform, consistent with
the requirements described in section 1706(a); and
‘‘(2) activities to foster the development of com-
prehensive school reform models and to provide effec-
tive capacity building for comprehensive school re-
form providers to expand their work in more schools,
assure quality, and promote financial stability.
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‘‘PART H—SCHOOL DROPOUT PREVENTION
‘‘SEC. 1801. SHORT TITLE.
‘‘This part may be cited as the ‘Dropout Prevention
Act’.
‘‘SEC. 1802. PURPOSE.
‘‘The purpose of this part is to provide for school drop-
out prevention and reentry and to raise academic achieve-
ment levels by providing grants, to schools through State
educational agencies, that—
‘‘(1) challenge all children to attain their highest
academic potential; and
‘‘(2) ensure that all students have substantial
and 
ongoing 
opportunities 
to 
do 
so 
through
schoolwide programs proven effective in school drop-
out prevention.
‘‘Subpart 1—Coordinated National Strategy
‘‘SEC. 1811. NATIONAL ACTIVITIES.
‘‘(a) IN GENERAL.—The Secretary is authorized—
‘‘(1) to collect systematic data on the participa-
tion in the programs described in paragraph (2)(C)
of individuals disaggregated within each State, local
educational agency, and school by gender, by each
major racial and ethnic group, by English proficiency
status, by migrant status, by students with disabil-
ities as compared to nondisabled students, and by eco-
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nomically disadvantaged students as compared to stu-
dents who are not economically disadvantaged;
‘‘(2) to establish and to consult with an inter-
agency working group that shall—
‘‘(A) address inter- and intra-agency pro-
gram coordination issues at the Federal level
with respect to school dropout prevention and
middle school and secondary school reentry, and
assess the targeting of existing Federal services to
students who are most at risk of dropping out of
school, and the cost-effectiveness of various pro-
grams and approaches used to address school
dropout prevention;
‘‘(B) describe the ways in which State and
local agencies can implement effective school
dropout prevention programs using funds from a
variety of Federal programs, including the pro-
grams under this title; and
‘‘(C) address all Federal programs with
school dropout prevention or school reentry ele-
ments or objectives, including programs under
this title, programs under subtitle C of title I of
the Workforce Investment Act of 1998, and other
programs; and
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‘‘(3) carry out a national recognition program
in accordance with subsection (b) that recognizes
schools that have made extraordinary progress in low-
ering school dropout rates under which a public mid-
dle school or secondary school from each State will be
recognized.
‘‘(b) RECOGNITION PROGRAM.—
‘‘(1) NATIONAL
GUIDELINES.—The Secretary
shall develop uniform national guidelines for the rec-
ognition program that shall be used to recognize
schools from nominations submitted by State edu-
cational agencies.
‘‘(2) ELIGIBLE SCHOOLS.—The Secretary may
recognize under the recognition program any public
middle school or secondary school (including a charter
school) that has implemented comprehensive reforms
regarding the lowering of school dropout rates for all
students at that school.
‘‘(3) SUPPORT.—The Secretary may make mone-
tary awards to schools recognized under the recogni-
tion program in amounts determined by the Sec-
retary. Amounts received under this section shall be
used for dissemination activities within the school
district or nationally.
‘‘(c) CAPACITY BUILDING.—
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‘‘(1) IN
GENERAL.—The Secretary, through a
contract with a non-Federal entity, may conduct a
capacity building and design initiative in order to
increase the types of proven strategies for dropout
prevention and reentry that address the needs of an
entire school population rather than a subset of stu-
dents.
‘‘(2) NUMBER AND DURATION.—
‘‘(A) NUMBER.—The Secretary may award
not more than 5 contracts under this subsection.
‘‘(B) 
DURATION.—The 
Secretary 
may
award a contract under this subsection for a pe-
riod of not more than 5 years.
‘‘(d) SUPPORT FOR EXISTING REFORM NETWORKS.—
‘‘(1) IN GENERAL.—The Secretary may provide
appropriate support to eligible entities to enable the
eligible entities to provide training, materials, devel-
opment, and staff assistance to schools assisted under
this chapter.
‘‘(2) DEFINITION OF ELIGIBLE ENTITY.—In this
subsection, the term ‘eligible entity’ means an entity
that, prior to the date of enactment of the Dropout
Prevention Act—
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‘‘(A) provided training, technical assistance,
and materials to 100 or more elementary schools
or secondary schools; and
‘‘(B) developed and published a specific
educational program or design for use by the
schools.
‘‘Subpart 2—National School Dropout Prevention
Initiative
‘‘SEC. 1821. PROGRAM AUTHORIZED.
‘‘(a) GRANTS.—
‘‘(1) DISCRETIONARY GRANTS.—If the sum ap-
propriated under section 1002(i) for a fiscal year is
less than $250,000,000, then the Secretary shall use
such sum to award grants, on a competitive basis, to
State educational agencies to enable the State edu-
cational agencies to award grants under subsection
(b).
‘‘(2) FORMULA.—If the sum appropriated under
section 1002(i) for a fiscal year equals or exceeds
$250,000,000, then the Secretary shall use such sum
to make an allotment to each State in an amount
that bears the same relation to the sum as the amount
the State received under part A for the preceding fis-
cal year bears to the amount received by all States
under such part for the preceding fiscal year.
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‘‘(3) DEFINITION OF STATE.—In this subpart,
the term ‘State’ means each of the several States of the
United States, the District of Columbia, the Common-
wealth of Puerto Rico, the United States Virgin Is-
lands, Guam, American Samoa, the Commonwealth of
the Northern Mariana Islands, the Republic of the
Marshall Islands, the Federated States of Micronesia,
Republic of Palau, and Bureau of Indian Affairs for
purposes of serving schools funded by the Bureau.
‘‘(b) GRANTS.—From amounts made available to a
State under subsection (a), the State educational agency
may award grants to public middle schools or secondary
schools that serve students in grades 6 through 12, that have
school dropout rates that are the highest of all school drop-
out rates in the State, to enable the schools to pay only
the startup and implementation costs of effective, sustain-
able, coordinated, and whole school dropout prevention pro-
grams that involve activities such as—
‘‘(1) professional development;
‘‘(2) obtaining curricular materials;
‘‘(3) release time for professional staff;
‘‘(4) planning and research;
‘‘(5) remedial education;
‘‘(6) reduction in pupil-to-teacher ratios;
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‘‘(7) efforts to meet State student achievement
standards;
‘‘(8) counseling and mentoring for at-risk stu-
dents; and
‘‘(9) comprehensive school reform models.
‘‘(c) AMOUNT.—
‘‘(1) IN GENERAL.—Subject to subsection (d) and
except as provided in paragraph (2), a grant under
this subpart shall be awarded—
‘‘(A) in the first year that a school receives
a grant payment under this subpart, based on
factors such as—
‘‘(i) school size;
‘‘(ii) costs of the model or set of preven-
tion and reentry strategies being imple-
mented; and
‘‘(iii) local cost factors such as poverty
rates;
‘‘(B) in the second such year, in an amount
that is not less than 75 percent of the amount the
school received under this subpart in the first
such year;
‘‘(C) in the third year, in an amount that
is not less than 50 percent of the amount the
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school received under this subpart in the first
such year; and
‘‘(D) in each succeeding year in an amount
that is not less than 30 percent of the amount the
school received under this subpart in the first
such year.
‘‘(2) INCREASES.—The Secretary shall increase
the amount awarded to a school under this subpart
by 10 percent if the school creates smaller learning
communities within the school and the creation is cer-
tified by the State educational agency.
‘‘(d) DURATION.—A grant under this subpart shall be
awarded for a period of 3 years, and may be continued
for a period of 2 additional years if the State educational
agency determines, based on the annual reports described
in section 1827(a), that significant progress has been made
in lowering the school dropout rate for students partici-
pating in the program assisted under this subpart com-
pared to students at similar schools who are not partici-
pating in the program.
‘‘SEC. 1822. STRATEGIES AND CAPACITY BUILDING.
‘‘Each school receiving a grant under this subpart
shall implement scientifically based research, sustainable,
and widely replicated strategies for school dropout preven-
tion and reentry that address the needs of an entire school
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population rather than a subset of students. The strategies
may include—
‘‘(1) specific strategies for targeted purposes,
such as—
‘‘(A) effective early intervention programs
designed to identify at-risk students;
‘‘(B) effective programs encompassing tradi-
tionally underserved students, including racial
and ethnic minorities and pregnant and par-
enting teenagers, designed to prevent such stu-
dents from dropping out of school; and
‘‘(C) effective programs to identify and en-
courage youth who have already dropped out of
school to reenter school and complete their sec-
ondary education; and
‘‘(2) approaches such as breaking larger schools
down into smaller learning communities and other
comprehensive reform approaches, creating alternative
school programs, developing clear linkages to career
skills and employment, and addressing specific gate-
keeper hurdles that often limit student retention and
academic success.
‘‘SEC. 1823. SELECTION OF SCHOOLS.
‘‘(a) SCHOOL APPLICATION.—
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‘‘(1) IN GENERAL.—Each school desiring a grant
under this subpart shall submit an application to the
State educational agency at such time, in such man-
ner, and accompanied by such information as the
State educational agency may require.
‘‘(2) CONTENTS.—Each application submitted
under paragraph (1) shall—
‘‘(A) contain a certification from the local
educational agency serving the school that—
‘‘(i) the school has the highest number
or rates of school dropouts in the age group
served by the local educational agency;
‘‘(ii) the local educational agency is
committed to providing ongoing operational
support, for the school’s comprehensive re-
form plan to address the problem of school
dropouts, for a period of 5 years; and
‘‘(iii) the local educational agency will
support the plan, including—
‘‘(I) release time for teacher train-
ing;
‘‘(II) efforts to coordinate activi-
ties for feeder schools; and
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‘‘(III) encouraging other schools
served by the local educational agency
to participate in the plan;
‘‘(B) demonstrate that the faculty and ad-
ministration of the school have agreed to apply
for assistance under this subpart, and provide
evidence of the school’s willingness and ability to
use the funds under this subpart, including pro-
viding an assurance of the support of 80 percent
or more of the professional staff at the school;
‘‘(C) describe the instructional strategies to
be implemented, how the strategies will serve all
students, and the effectiveness of the strategies;
‘‘(D) describe a budget and timeline for im-
plementing the strategies;
‘‘(E) contain evidence of coordination with
existing resources;
‘‘(F) provide an assurance that funds pro-
vided under this subpart will supplement and
not supplant other Federal, State, and local
funds available for dropout prevention programs;
‘‘(G) describe how the activities to be as-
sisted conform with scientifically based research
knowledge about school dropout prevention and
reentry; and
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‘‘(H) demonstrate that the school and local
educational agency have agreed to conduct a
schoolwide program under section 1114.
‘‘(b) STATE AGENCY REVIEW AND AWARD.—The State
educational agency shall review applications and award
grants to schools under subsection (a) according to a review
by a panel of experts on school dropout prevention.
‘‘(c) ELIGIBILITY.—A school is eligible to receive a
grant under this subpart if the school is—
‘‘(1) a public school (including a public alter-
native school)—
‘‘(A) that is eligible to receive assistance
under part A, including a comprehensive sec-
ondary school, a vocational or technical sec-
ondary school, or a charter school; and
‘‘(B)(i) that serves students 50 percent or
more of whom are low-income individuals; or
‘‘(ii) with respect to which the feeder schools
that provide the majority of the incoming stu-
dents to the school serve students 50 percent or
more of whom are low-income individuals; or
‘‘(2) participating in a schoolwide program
under section 1114 during the grant period.
‘‘(d) COMMUNITY-BASED ORGANIZATIONS.—A school
that receives a grant under this subpart may use the grant
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funds to secure necessary services from a community-based
organization, including private sector entities, if—
‘‘(1) the school approves the use;
‘‘(2) the funds are used to provide school dropout
prevention and reentry activities related to schoolwide
efforts; and
‘‘(3) the community-based organization has dem-
onstrated the organization’s ability to provide effec-
tive services as described in section 122 of the Work-
force Investment Act of 1998.
‘‘(e) COORDINATION.—Each school that receives a
grant under this subpart shall coordinate the activities as-
sisted under this subpart with other Federal programs, such
as programs assisted under chapter 1 of subpart 2 of part
A of title IV of the Higher Education Act of 1965.
‘‘SEC. 1824. DISSEMINATION ACTIVITIES.
‘‘Each school that receives a grant under this part
shall provide information and technical assistance to other
schools within the school district, including presentations,
document-sharing, and joint staff development.
‘‘SEC. 1825. PROGRESS INCENTIVES.
‘‘Notwithstanding any other provision of law, each
local educational agency that receives funds under this title
shall use such funds to provide assistance to schools served
by the agency that have not made progress toward lowering
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school dropout rates after receiving assistance under this
subpart for 2 fiscal years.
‘‘SEC. 1826. SCHOOL DROPOUT RATE CALCULATION.
‘‘For purposes of calculating a school dropout rate
under this subpart, a school shall use—
‘‘(1) the annual event school dropout rate for stu-
dents leaving a school in a single year determined in
accordance with the National Center for Education
Statistics’ Common Core of Data, if available; or
‘‘(2) in other cases, a standard method for calcu-
lating the school dropout rate as determined by the
State educational agency.
‘‘SEC. 1827. REPORTING AND ACCOUNTABILITY.
‘‘(a) REPORTING.—To receive funds under this subpart
for a fiscal year after the first fiscal year that a school re-
ceives funds under this subpart, the school shall provide,
on an annual basis, to the Secretary and the State edu-
cational agency a report regarding the status of the imple-
mentation of activities funded under this subpart, the out-
come data for students at schools assisted under this subpart
disaggregated in the same manner as information under
section 1811(a) (such as dropout rates), and a certification
of progress from the eligible entity whose strategies the
school is implementing.
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‘‘(b) ACCOUNTABILITY.—On the basis of the reports
submitted under subsection (a), the Secretary shall evaluate
the effect of the activities assisted under this subpart on
school dropout prevention compared to a control group.
‘‘SEC. 1828. STATE RESPONSIBILITIES.
‘‘(a) UNIFORM DATA COLLECTION.—Within 1 year
after the date of enactment of the Dropout Prevention Act,
a State educational agency that receives funds under this
subpart shall report to the Secretary and statewide, all
school district and school data regarding school dropout
rates in the State disaggregated in the same manner as in-
formation under section 1811(a), according to procedures
that conform with the National Center for Education Sta-
tistics’ Common Core of Data.
‘‘(b) ATTENDANCE-NEUTRAL FUNDING POLICIES.—
Within 2 years after the date of enactment of the Dropout
Prevention Act, a State educational agency that receives
funds under this subpart shall develop and implement edu-
cation funding formula policies for public schools that pro-
vide appropriate incentives to retain students in school
throughout the school year, such as—
‘‘(1) a student count methodology that does not
determine annual budgets based on attendance on a
single day early in the academic year; and
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‘‘(2) specific incentives for retaining enrolled stu-
dents throughout each year.
‘‘(c) SUSPENSION AND EXPULSION POLICIES.—Within
2 years after the date of enactment of the Dropout Preven-
tion Act, a State educational agency that receives funds
under this subpart shall develop uniform, long-term suspen-
sion and expulsion policies (that in the case of a child with
a disability are consistent with the suspension and expul-
sion policies under the Individuals with Disabilities Edu-
cation Act) for serious infractions resulting in more than
10 days of exclusion from school per academic year so that
similar violations result in similar penalties.
‘‘(d) REGULATIONS.—The Secretary shall promulgate
regulations implementing subsections (a) through (c).
‘‘Subpart 3—Definitions; Authorization of
Appropriations
‘‘SEC. 1831. DEFINITIONS.
‘‘In this part:
‘‘(1) LOW-INCOME.—The term ‘low-income’, used
with respect to an individual, means an individual
determined to be low-income in accordance with
measures described in section 1113(a)(5).
‘‘(2) SCHOOL DROPOUT.—The term ‘school drop-
out’ means a youth who is no longer attending any
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school and who has not received a secondary school
diploma or its recognized equivalent.’’.
PART G—EDUCATION FOR HOMELESS CHILDREN
AND YOUTH
SEC. 171. STATEMENT OF POLICY.
Section 721(3) of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11431(3)) is amended by striking
‘‘should not be’’ and inserting ‘‘is not’’.
SEC. 172. GRANTS FOR STATE AND LOCAL ACTIVITIES.
Section 722 of such Act (42 U.S.C. 11432) is
amended—
(1) in subsection (c)—
(A) in paragraph (2)(A)—
(i) by inserting ‘‘and’’ after ‘‘Samoa,’’;
and
(ii) by striking ‘‘, and Palau’’ and all
that follows through ‘‘Palau)’’; and
(B) in paragraph (3)—
(i) by inserting ‘‘or’’ after ‘‘Samoa,’’;
and
(ii) by striking ‘‘, or Palau’’;
(2) in subsection (e), by adding at the end the
following:
‘‘(3) PROHIBITION ON SEGREGATING HOMELESS
STUDENTS.—
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‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B) and section 723(a)(2)(B)(ii),
in providing a free public education to a home-
less child or youth, no State receiving funds
under this subtitle shall segregate such child or
youth, either in a separate school, or in a sepa-
rate program within a school, based on such
child’s or youth’s status as homeless.
‘‘(B) EXCEPTION.—Notwithstanding sub-
paragraph (A), paragraphs (1)(H) and (3) of
subsection (g), section 723(a)(2), and any other
provision of this subtitle relating to the place-
ment of homeless children or youth in schools, a
State that has a separate school for homeless
children or youth that was operated in fiscal
year 2000 in a covered county shall be eligible
to receive funds under this subtitle for programs
carried out in such school if—
‘‘(i) the school meets the requirements
of subparagraph (C);
‘‘(ii) any local educational agency
serving a school that the homeless children
and youth enrolled in the separate school
are eligible to attend meets the requirements
of subparagraph (E); and
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‘‘(iii) the State is otherwise eligible to
receive funds under this subtitle.
‘‘(C) SCHOOL
REQUIREMENTS.—For the
State to be eligible to receive the funds, the school
shall—
‘‘(i) provide written notice, at the time
any child or youth seeks enrollment in such
school, and at least twice annually while the
child or youth is enrolled in such school, to
the parent or guardian of the child or youth
(or, in the case of an unaccompanied youth,
the youth) that—
‘‘(I) shall be signed by the parent
or guardian (or, in the case of an un-
accompanied youth, the youth);
‘‘(II) reviews the general rights
provided under this subtitle; and
‘‘(III) specifically states—
‘‘(aa) the choice of schools
homeless children and youth are
eligible to attend, as provided in
subsection (g)(3)(A);
‘‘(bb) that no homeless child
or youth is required to attend a
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separate school for homeless chil-
dren or youth;
‘‘(cc) that homeless children
and youth shall be provided com-
parable services described in sub-
section (g)(4), including transpor-
tation services, educational serv-
ices, and meals through school
meals programs;
‘‘(dd) that homeless children
and youth should not be stig-
matized by school personnel; and
‘‘(ee) contact information for
the local liaison for homeless chil-
dren and youth and State Coordi-
nator for Education of Homeless
Children and Youth;
‘‘(ii)(aa) provide assistance to the par-
ent or guardian of each homeless child or
youth (or, in the case of an unaccompanied
youth, the youth) to exercise the right to at-
tend the parent’s or guardian’s (or youth’s)
choice of schools, as provided in subsection
(g)(3)(A); and
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‘‘(bb) coordinate with the local edu-
cational agency with jurisdiction for the
school selected by the parent or guardian
(or youth), to provide transportation and
other necessary services;
‘‘(iii) ensure that the parent or guard-
ian (or youth) shall receive the information
required by this subparagraph in a manner
and form understandable to such parent or
guardian (or youth), including, if necessary
and to the extent feasible, in the native lan-
guage of such parent or guardian (or
youth); and
‘‘(iv) demonstrate in the school’s appli-
cation for funds under this subtitle that
such school—
‘‘(I) is complying with clauses (i)
and (ii); and
‘‘(II) is meeting (as of the date of
submission of the application) the
same Federal and State standards, reg-
ulations, and mandates as other public
schools in the State (such as complying
with sections 1111 and 1116 of the El-
ementary and Secondary Education
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Act of 1965 and providing a full range
of education and related services, in-
cluding services applicable to students
with disabilities).
‘‘(D) SCHOOL
INELIGIBILITY.—A separate
school described in subparagraph (B) that fails
to meet the standards, regulations, and mandates
described in subparagraph (C)(iv)(II) shall not
be eligible to receive funds under this subtitle for
programs carried out in such school after the
first date of such failure.
‘‘(E) LOCAL
EDUCATIONAL
AGENCY
RE-
QUIREMENTS.—For the State to be eligible to re-
ceive the funds described in subparagraph (B),
the local educational agency described in sub-
paragraph (B) shall—
‘‘(i) implement a coordinated system
for ensuring that homeless children and
youth—
‘‘(I) are advised of the choice of
schools 
provided 
in 
subsection
(g)(3)(A);
‘‘(II) are immediately enrolled in
the school selected in accordance with
subsection (g)(3)(C); and
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‘‘(III) 
are 
provided 
necessary
services, 
including 
transportation,
promptly to allow homeless children
and youth to exercise their choices of
schools in accordance with subsection
(g)(4);
‘‘(ii) document that written notice has
been provided—
‘‘(I) in accordance with subpara-
graph (C)(i) for each child or youth
enrolled in a separate school described
in subparagraph (B); and
‘‘(II) in accordance with sub-
section (g)(1)(H)(ii);
‘‘(iii) prohibit schools within the agen-
cy’s jurisdiction from referring homeless
children or youth to, or requiring homeless
children and youth to enroll in or attend, a
separate school described in subparagraph
(B);
‘‘(iv) identify and remove any barriers
that exist in schools within the agency’s ju-
risdiction that may have contributed to the
creation or existence of separate schools de-
scribed in subparagraph (B); and
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‘‘(v) not use funds received under this
subtitle to establish—
‘‘(I) new or additional separate
schools for homeless children or youth,
other than schools described in sub-
paragraph (B); or
‘‘(II) new or additional sites for
separate schools for homeless children
or youth, other than the sites occupied
by the schools described in subpara-
graph (B) in fiscal year 2000.
‘‘(F) REPORT.—
‘‘(i) PREPARATION.—
‘‘(I) IN GENERAL.—The Secretary
shall prepare a report on the separate
schools and local educational agencies
described in subparagraph (B) that re-
ceive funds under this subtitle in ac-
cordance with this paragraph.
‘‘(II) 
CONTENTS.—The 
report
shall contain, at a minimum, informa-
tion on—
‘‘(aa) compliance with all re-
quirements of this paragraph;
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‘‘(bb) barriers to school access
in the school districts served by
the local educational agencies; and
‘‘(cc) the progress the sepa-
rate schools are making in inte-
grating homeless children and
youth into the mainstream school
environment, including the aver-
age length of student enrollment
in such schools.
‘‘(ii) COMPLIANCE WITH INFORMATION
REQUESTS.—For purposes of enabling the
Secretary to prepare the report, the separate
schools and local educational agencies shall
cooperate with the Secretary and the State
Coordinators for the Education of Homeless
Children and Youth, and shall comply with
any requests for information by the Sec-
retary and State Coordinators.
‘‘(iii) SUBMISSION.—Not later than 2
years after the date of enactment of the Bet-
ter Education for Students and Teachers
Act, the Secretary shall submit the report
described in clause (i) to—
‘‘(I) the President;
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‘‘(II) the Committee on Education
and the Workforce of the House of Rep-
resentatives; and
‘‘(III) the Committee on Health,
Education, Labor, and Pensions of the
Senate.
‘‘(G) DEFINITION.—In this paragraph, the
term ‘covered county’ means—
‘‘(i) San Joaquin County, CA;
‘‘(ii) Orange County, CA;
‘‘(iii) San Diego County, CA; and
‘‘(iv) Maricopa County, AZ.’’;
(3) by amending subsection (f) to read as follows:
‘‘(f) FUNCTIONS OF THE OFFICE OF COORDINATOR.—
The Coordinator of Education of Homeless Children and
Youth established in each State shall—
‘‘(1) gather reliable, valid, and comprehensive
information on the nature and extent of the problems
homeless children and youth have in gaining access to
public preschool programs and to public elementary
schools and secondary schools, the difficulties in iden-
tifying the special needs of such children and youth,
any progress made by the State educational agency
and local educational agencies in the State in ad-
dressing such problems and difficulties, and the suc-
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cess of the program under this subtitle in allowing
homeless children and youth to enroll in, attend, and
succeed in, school;
‘‘(2) develop and carry out the State plan de-
scribed in subsection (g);
‘‘(3) collect and transmit to the Secretary, at
such time and in such manner as the Secretary may
require, such information as the Secretary deems nec-
essary to assess the educational needs of homeless chil-
dren and youth within the State;
‘‘(4) facilitate coordination between the State
educational agency, the State social services agency,
and other agencies providing services to homeless chil-
dren and youth, including homeless children and
youth who are preschool age, and families of such
children and youth;
‘‘(5) in order to improve the provision of com-
prehensive education and related services to homeless
children and youth and their families, coordinate and
collaborate with—
‘‘(A) educators, including child development
and preschool program personnel;
‘‘(B) providers of services to homeless and
runaway children and youth and homeless fami-
lies (including domestic violence agencies, shelter
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operators, transitional housing facilities, run-
away and homeless youth centers, and transi-
tional living programs for homeless youth);
‘‘(C) local educational agency liaisons for
homeless children and youth; and
‘‘(D) community organizations and groups
representing homeless children and youth and
their families; and
‘‘(6) provide technical assistance to local edu-
cational agencies in coordination with local liaisons
established under this subtitle, to ensure that local
educational agencies comply with the requirements of
section 722(e)(3).’’; and
(4) in subsection (g)—
(A) in paragraph (1)—
(i) in subparagraph (E)—
(I) by striking ‘‘the report’’ and
inserting ‘‘the information’’; and
(II) by striking ‘‘(f)(4)’’ and in-
serting ‘‘(f)(3)’’; and
(ii) by amending subparagraph (H) to
read as follows:
‘‘(H) contain assurances that—
‘‘(i) the State educational agency and
local educational agencies in the State will
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adopt policies and practices to ensure that
homeless children and youth are not seg-
regated on the basis of their status as home-
less or stigmatized; and
‘‘(ii) local educational agencies serving
school districts in which homeless children
and youth reside or attend school will—
‘‘(I) post public notice of the edu-
cational rights of such children and
youth where such children and youth
receive services under this Act (such as
family shelters and soup kitchens); and
‘‘(II) designate an appropriate
staff person, who may also be a coordi-
nator for other Federal programs, as a
liaison for homeless children and
youth.’’;
(B) by amending paragraph (3) to read as
follows:
‘‘(3) LOCAL
EDUCATIONAL
AGENCY
REQUIRE-
MENTS.—
‘‘(A) IN GENERAL.—Each local educational
agency serving a homeless child or youth assisted
under this subtitle shall, according to the child’s
or youth’s best interest—
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‘‘(i) continue the child’s or youth’s edu-
cation in the school of origin—
‘‘(I) for the duration of their
homelessness;
‘‘(II) if the child becomes perma-
nently housed, for the remainder of the
academic year; or
‘‘(III) in any case in which a
family becomes homeless between aca-
demic years, for the following academic
year; or
‘‘(ii) enroll the child or youth in any
school that nonhomeless students who live in
the attendance area in which the child or
youth is actually living are eligible to at-
tend.
‘‘(B) BEST INTEREST.—In determining the
best interest of the child or youth under subpara-
graph (A), the local educational agency shall—
‘‘(i) to the extent feasible, keep a home-
less child or youth in the school of origin,
except when doing so is contrary to the
wishes of the child’s or youth’s parent or
guardian, or in the case of an unaccom-
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panied youth, doing so is contrary to the
youth’s wish; and
‘‘(ii) provide a written explanation to
the homeless child’s or youth’s parent or
guardian when the local educational agency
sends such child or youth to a school other
than the school of origin or a school re-
quested by the parent or guardian.
‘‘(C) ENROLLMENT.—
‘‘(i) DOCUMENTATION.—The school se-
lected in accordance with this paragraph
shall immediately enroll the homeless child
or youth even if the child or youth is unable
to produce records normally required for en-
rollment, such as previous academic records,
medical records, proof of residency, or other
documentation.
‘‘(ii) SPECIAL
RULE.—The enrolling
school immediately shall contact the school
last attended by the child or youth to obtain
relevant academic and other records. If the
child or youth needs to obtain immuniza-
tions, the enrolling school shall promptly
refer the child or youth to the appropriate
authorities for such immunizations.
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‘‘(iii) DISPUTES.—If a dispute arises
over school selection or enrollment in a
school, the child or youth shall be admitted
immediately to the school in which the par-
ent or guardian (or in the case of an unac-
companied youth, the youth) seeks enroll-
ment pending resolution of the dispute.
‘‘(D) DEFINITION OF SCHOOL OF ORIGIN.—
For purposes of this paragraph, the term ‘school
of origin’ means the school that the child or
youth attended when permanently housed, or the
school in which the child or youth was last en-
rolled.
‘‘(E) PLACEMENT CHOICE.—The choice re-
garding placement shall be made regardless of
whether the child or youth lives with the home-
less parents or has been temporarily placed else-
where by the parents.’’;
(C) by amending paragraph (6) to read as
follows:
‘‘(6) COORDINATION.—
‘‘(A) IN GENERAL.—Each local educational
agency serving homeless children and youth that
receives assistance under this subtitle shall co-
ordinate the provision of services under this sub-
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title with local services agencies and other agen-
cies or programs providing services to homeless
children and youth and their families, including
services and programs funded under the Run-
away and Homeless Youth Act (42 U.S.C. 5701
et seq.).
‘‘(B) HOUSING ASSISTANCE.—If applicable,
each State and local educational agency that re-
ceives assistance under this subtitle shall coordi-
nate with State and local housing agencies re-
sponsible for developing the comprehensive hous-
ing affordability strategy described in section
105 of the Cranston-Gonzales National Afford-
able Housing Act (42 U.S.C. 12705) to minimize
educational disruption for children and youth
who become homeless.
‘‘(C) COORDINATION PURPOSE.—The coordi-
nation required under subparagraphs (A) and
(B) shall be designed to—
‘‘(i) ensure that homeless children and
youth have access to available education
and related support services; and
‘‘(ii) raise the awareness of school per-
sonnel and service providers of the effects of
short-term stays in shelters and other chal-
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lenges associated with homeless children and
youth.’’;
(D) by amending paragraph (7) to read as
follows:
‘‘(7) LIAISON.—
‘‘(A) IN GENERAL.—Each local liaison for
homeless children and youth designated pursuant
to paragraph (1)(H)(ii)(II) shall ensure that—
‘‘(i) homeless children and youth en-
roll, and have a full and equal opportunity
to succeed, in the schools of the local edu-
cational agency;
‘‘(ii) homeless families, children, and
youth receive educational services for which
such families, children, and youth are eligi-
ble, including Head Start and Even Start
programs and preschool programs adminis-
tered by the local educational agency, and
referrals to health care services, dental serv-
ices, mental health services, and other ap-
propriate services;
‘‘(iii) the parents or guardians of
homeless children and youth are informed of
the education and related opportunities
available to their children and are provided
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with meaningful opportunities to partici-
pate in the education of their children; and
‘‘(iv) public notice of the educational
rights of homeless children and youth is
posted where such children and youth re-
ceive services under this Act (such as family
shelters and soup kitchens).
‘‘(B) INFORMATION.—State coordinators in
States receiving assistance under this subtitle
and local educational agencies receiving assist-
ance under this subtitle shall inform school per-
sonnel, service providers, and advocates working
with homeless families of the duties of the liai-
sons for homeless children and youth.
‘‘(C) LOCAL AND STATE COORDINATION.—
Liaisons for homeless children and youth shall,
as a part of their duties, coordinate and collabo-
rate with State coordinators and community
and school personnel responsible for the provision
of education and related services to homeless chil-
dren and youth.
‘‘(D) DISPUTE
RESOLUTION.—Unless an-
other individual is designated by State law, the
local liaison for homeless children and youth
shall provide resource information and assist in
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resolving a dispute under this subtitle if such a
dispute arises.’’; and
(E) by striking paragraph (9).
SEC. 173. LOCAL EDUCATIONAL AGENCY GRANTS.
Section 723 of such Act (42 U.S.C. 11433) is
amended—
(1) in subsection (a), by amending paragraph
(2) to read as follows:
‘‘(2) SERVICES.—
‘‘(A) 
IN
GENERAL.—Services 
provided
under paragraph (1)—
‘‘(i) may be provided through pro-
grams on school grounds or at other facili-
ties;
‘‘(ii) shall, to the maximum extent
practicable, be provided through existing
programs and mechanisms that integrate
homeless individuals with nonhomeless indi-
viduals; and
‘‘(iii) shall be designed to expand or
improve services provided as part of a
school’s regular academic program, but not
replace that program.
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‘‘(B) SERVICES ON SCHOOL GROUNDS.—If
services under paragraph (1) are provided on
school grounds, schools—
‘‘(i) may use funds under this subtitle
to provide the same services to other chil-
dren and youth who are determined by the
local educational agency to be at risk of
failing in, or dropping out of, schools, sub-
ject to clause (ii); and
‘‘(ii) shall not provide services in set-
tings within a school that segregates home-
less children and youth from other children
and youth, except as is necessary for short
periods of time—
‘‘(I) for health and safety emer-
gencies; or
‘‘(II) to provide temporary, spe-
cial, supplementary services to meet
the unique needs of homeless children
and youth.’’;
(2) in subsection (b)—
(A) 
by 
redesignating 
paragraphs 
(1)
through (4) as paragraphs (2) through (5), re-
spectively;
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(B) by inserting before paragraph (2) (as so
redesignated) the following:
‘‘(1) an assessment of the educational and related
needs of homeless children and youth in the school
district (which may be undertaken as a part of needs
assessments for other disadvantaged groups);’’; and
(C) in paragraph (4) (as so redesignated),
by striking ‘‘(9)’’ and inserting ‘‘(8)’’; and
(3) in subsection (c)—
(A) by amending paragraph (1) to read as
follows:
‘‘(1) IN GENERAL.—The State educational agen-
cy, in accordance with the requirements of this sub-
title and from amounts made available to the State
educational agency under section 726, shall award
grants, on a competitive basis, to local educational
agencies that submit applications under subsection
(b). Such grants shall be awarded on the basis of the
need of such agencies for assistance under this subtitle
and the quality of the applications submitted.’’;
(B) by redesignating paragraph (3) as
paragraph (4); and
(C) by inserting after paragraph (2) the fol-
lowing:
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‘‘(3) QUALITY.—In determining the quality of
applications under paragraph (1), the State edu-
cational agency shall consider—
‘‘(A) the local educational agency’s needs
assessment under subsection (b)(1) and the likeli-
hood that the program to be assisted will meet
the needs;
‘‘(B) the types, intensity, and coordination
of services to be assisted under the program;
‘‘(C) the involvement of parents or guard-
ians;
‘‘(D) the extent to which homeless children
and youth will be integrated within the regular
education program;
‘‘(E) the quality of the local educational
agency’s evaluation plan for the program;
‘‘(F) the extent to which services provided
under this subtitle will be coordinated with other
available services;
‘‘(G) the extent to which the local edu-
cational agency provides case management or re-
lated services to homeless children and youth who
are unaccompanied by a parent or guardian;
and
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‘‘(H) such other measures as the State edu-
cational agency determines indicative of a high-
quality program.’’.
SEC. 174. SECRETARIAL RESPONSIBILITIES.
Section 724 of such Act (42 U.S.C. 11434) is
amended—
(1) in subsection (a), by striking ‘‘the State edu-
cational’’ and inserting ‘‘State educational’’;
(2) by striking subsection (f);
(3) by redesignating subsections (c) through (e)
as subsections (d) through (f), respectively;
(4) by inserting after subsection (b) the fol-
lowing:
‘‘(c) GUIDELINES.—The Secretary shall develop, issue,
and publish in the Federal Register, not later than 60 days
after the date of enactment of the Better Education for Stu-
dents and Teachers Act, school enrollment guidelines for
States with respect to homeless children and youth. The
guidelines shall describe—
‘‘(1) successful ways in which a State may assist
local educational agencies to enroll immediately
homeless children and youth in school; and
‘‘(2) how a State can review the State’s require-
ments regarding immunization and medical or school
records and make revisions to the requirements as are
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appropriate and necessary in order to enroll homeless
children and youth in school more quickly.’’; and
(5) by adding at the end the following:
‘‘(g) INFORMATION.—
‘‘(1) IN
GENERAL.—From funds appropriated
under section 726, the Secretary, directly or through
grants, contracts, or cooperative agreements, shall pe-
riodically collect and disseminate data and informa-
tion regarding—
‘‘(A) the number and location of homeless
children and youth;
‘‘(B) the education and related services
homeless children and youth receive;
‘‘(C) the extent to which the needs of home-
less children and youth are met; and
‘‘(D) such other data and information as
the Secretary determines necessary and relevant
to carry out this subtitle.
‘‘(2) COORDINATION.—The Secretary shall co-
ordinate such collection and dissemination with other
agencies and entities that receive assistance and ad-
minister programs under this subtitle.
‘‘(h) REPORT.—Not later than 4 years after the date
of enactment of the Better Education for Students and
Teachers Act, the Secretary shall prepare and submit to the
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President and the appropriate committees of the House of
Representatives and the Senate a report on the status of
the education of homeless children and youth, which shall
include information regarding—
‘‘(1) the education of homeless children and
youth; and
‘‘(2) the actions of the Department of Education
and the effectiveness of the programs supported under
this subtitle.’’.
SEC. 175. DEFINITIONS.
Section 725 of such Act (42 U.S.C. 11434a) is
amended—
(1) by redesignating paragraphs (1) and (2) as
paragraphs (4) and (5), respectively;
(2) by inserting before paragraph (4) (as so re-
designated) the following:
‘‘(1) the term ‘homeless children and youth’—
‘‘(A) means individuals who lack a fixed,
regular, and adequate nighttime residence (with-
in the meaning of section 103(a)(1)); and
‘‘(B) includes—
‘‘(i) children and youth who are shar-
ing the housing of other persons due to loss
of housing, economic hardship, or a similar
reason, are living in motels, hotels, trailer
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parks, or camping grounds due to the lack
of alternative adequate accommodations, are
living in emergency or transitional shelters,
are abandoned in hospitals, or are awaiting
foster care placement;
‘‘(ii) children and youth who have a
primary nighttime residence that is a pub-
lic or private place not designed for or ordi-
narily used as a regular sleeping accommo-
dation for human beings (within the mean-
ing of section 103(a)(2)(C)); and
‘‘(iii) children and youth who are liv-
ing in cars, parks, public spaces, abandoned
buildings, substandard housing, bus or
train stations, or similar settings; and
‘‘(C) migratory children (as such term is
defined in section 1309(2) of the Elementary and
Secondary Education Act of 1965) who qualify
as homeless for the purposes of this subtitle be-
cause the children are living in circumstances
described in this paragraph;
‘‘(2) the terms ‘enroll’ and ‘enrollment’ include
attending classes and participating fully in school ac-
tivities;
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‘‘(3) the terms ‘local educational agency’ and
‘State educational agency’ have the meanings given
the terms in section 3 of the Elementary and Sec-
ondary Education Act of 1965;’’;
(3) in paragraph (4) (as so redesignated), by
striking ‘‘and’’ after the semicolon;
(4) in paragraph (5) (as so redesignated), by
striking the period and inserting ‘‘; and’’; and
(5) by adding at the end the following:
‘‘(6) the term ‘unaccompanied youth’ includes a
youth not in the physical custody of a parent or
guardian.’’.
SEC. 176. AUTHORIZATION OF APPROPRIATIONS.
Section 726 of such Act (42 U.S.C. 11435) is amended
to read as follows:
‘‘SEC. 726. AUTHORIZATION OF APPROPRIATIONS.
‘‘For the purpose of carrying out this subtitle, there
are authorized to be appropriated $70,000,000 for fiscal
year 2002 and such sums as may be necessary for each of
the 6 succeeding fiscal years.’’.
SEC. 177. CONFORMING AMENDMENTS.
(a) GRANTS FOR STATE AND LOCAL ACTIVITIES.—Sec-
tion 722 of the Stewart B. McKinney Homeless Assistance
Act (42 U.S.C. 11432) is amended—
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(1) in subsection (c)(1), by striking ‘‘section
724(c)’’ and inserting ‘‘section 724(d)’’; and
(2) in subsection (g)(2), by striking ‘‘paragraphs
(3) through (9)’’ and inserting ‘‘paragraphs (3)
through (8)’’.
(b) LOCAL EDUCATIONAL AGENCY GRANTS.—Section
723(b)(3) of such Act (42 U.S.C. 11433(b)(3)) is amended
by striking ‘‘paragraphs (3) through (9) of section 722(g)’’
and inserting ‘‘paragraphs (3) through (8) of section
722(g)’’.
(c) SECRETARIAL RESPONSIBILITIES.—Section 724(f)
of such Act (as amended by section 174(3)) is amended by
striking ‘‘subsection (d)’’ and inserting ‘‘subsection (e)’’.
SEC. 178. LOCAL EDUCATIONAL AGENCY SPENDING AUDITS.
(a) AUDITS.—The Office of the Inspector General of
the Department of Education shall conduct not less than
6 audits of local education agencies that receive funds under
part A of title I of the Elementary and Secondary Edu-
cation Act of 1965 in each fiscal year to more clearly deter-
mine specifically how local education agencies are expend-
ing such funds. Such audits shall be conducted in 6 local
educational agencies that represent the size, ethnic, eco-
nomic and geographic diversity of local educational agen-
cies and shall examine the extent to which funds have been
expended for academic instruction in the core curriculum
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and activities unrelated to academic instruction in the core
curriculum, such as the payment of janitorial, utility and
other maintenance services, the purchase and lease of vehi-
cles, and the payment for travel and attendance costs at
conferences.
(b) REPORT.—Not later than 3 months after the com-
pletion of the audits under subsection (a) in each year, the
Office of the Inspector General of the Department of Edu-
cation shall submit a report on each audit to the Committee
on Education and the Workforce of the House of Representa-
tives and the Committee on Health, Education, Labor and
Pensions of the Senate.
TITLE II—TEACHERS
SEC. 201. TEACHER QUALITY.
Title II (20 U.S.C. 6601 et seq.) is amended to read
as follows:
‘‘TITLE II—TEACHERS
‘‘PART A—TEACHER QUALITY
‘‘SEC. 2101. PURPOSE.
‘‘The purpose of this part is to provide grants to State
educational agencies, local educational agencies, State
agencies for higher education, and eligible partnerships in
order to—
‘‘(1) increase student academic achievement and
student performance through such strategies as im-
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proving teacher quality and increasing the number of
highly qualified teachers in the classroom;
‘‘(2) hold local educational agencies and schools
accountable so that all teachers teaching core aca-
demic subjects in public elementary schools and sec-
ondary schools, in which not less than 50 percent of
the students are from low-income families, are highly
qualified; and
‘‘(3) hold local educational agencies and schools
accountable for improvements in student academic
achievement and student performance.
‘‘SEC. 2102. DEFINITIONS.
‘‘In this part:
‘‘(1) ALL
STUDENTS.—The term ‘all students’
means students from a broad range of backgrounds
and circumstances, including economically disadvan-
taged students, students with diverse racial, ethnic,
and cultural backgrounds, students with disabilities,
students with limited English proficiency, and aca-
demically talented students.
‘‘(2) CHARTER
SCHOOL.—The term ‘charter
school’ has the meaning given the term in section
5120.
‘‘(3) CORE ACADEMIC SUBJECTS.—The term ‘core
academic subjects’ means English, mathematics,
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science, foreign languages, civics and government, eco-
nomics, arts, history, and geography.
‘‘(4) HIGHLY
QUALIFIED.—The term ‘highly
qualified’ means—
‘‘(A) with respect to an elementary school
teacher, a teacher—
‘‘(i)(I) with an academic major in the
arts and sciences; or
‘‘(II) who can demonstrate competence
through a high level of performance in core
academic subjects; and
‘‘(ii) who is certified or licensed by the
State involved, except for a teacher in a
charter school in a State that has a charter
school law that exempts such a teacher from
State certification and licensing require-
ments;
‘‘(B) with respect to a secondary school
teacher hired before the date of enactment of the
Better Education for Students and Teachers Act,
a teacher—
‘‘(i)(I) with an academic major (or
courses totaling an equivalent number of
credit hours) in the academic subject that
the teacher teaches or a related field;
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‘‘(II) who can demonstrate a high level
of competence through rigorous academic
subject tests and achievement of a high level
of competence as described in subclause
(III); or
‘‘(III) who can demonstrate a high
level of competence through a high level of
performance in the academic subjects that
the teacher teaches, based on a high and ob-
jective uniform standard that is—
‘‘(aa) set by the State for both
grade appropriate academic subject
knowledge and teaching skills;
‘‘(bb) the same for all teachers in
the same academic subject and same
grade level throughout the State; and
‘‘(cc) a written standard that is
developed in consultation with teach-
ers, parents, principals, and school ad-
ministrators and made available to the
public upon request; and
‘‘(ii) who is certified or licensed by the
State, except for a teacher in a charter
school in a State that has a charter school
law that exempts such a teacher from State
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certification and licensing requirements;
and
‘‘(C) with respect to a secondary school
teacher hired after the date of enactment of the
Better Education for Students and Teachers Act,
a teacher that meets the requirements of sub-
clause (I) or (II) of subparagraph (B)(i).
‘‘(5) HIGH
NEED
LOCAL
EDUCATIONAL
AGEN-
CY.—The term ‘high need local educational agency’
has the meaning given the term in section 201(b) of
the Higher Education Act of 1965.
‘‘(6) INSTITUTION OF HIGHER EDUCATION.—The
term ‘institution of higher education’ has the meaning
given the term in section 101(a) of the Higher Edu-
cation Act of 1965.
‘‘(7) OUT-OF-FIELD TEACHER.—The term ‘out-of-
field teacher’ means a secondary school teacher who is
teaching an academic subject for which the teacher is
not highly qualified.
‘‘(8) POVERTY
LINE.—The term ‘poverty line’
means the poverty line (as defined by the Office of
Management and Budget and revised annually in ac-
cordance with section 673(2) of the Community Serv-
ices Block Grant Act) applicable to a family of the
size involved.