231
amount determined by multiplying the number of
children counted under subsection (a)(1)(A) for the
Commonwealth of Puerto Rico by the product of—
‘‘(A) the percentage which the average per
pupil expenditure in the Commonwealth of
Puerto Rico is of the lowest average per pupil
expenditure of any of the 50 States; and
‘‘(B) 32 percent of the average per pupil
expenditure in the United States.
‘‘(2) MINIMUM PERCENTAGE.—The percentage
in paragraph (1)(A) shall not be less than—
‘‘(A) for fiscal year 2002, 77.5 percent;
‘‘(B) for fiscal year 2003, 80.0 percent;
‘‘(C) for fiscal year 2004, 82.5 percent;
and
‘‘(D) for fiscal year 2005 and succeeding
fiscal years, 85.0 percent.
‘‘(3) LIMITATION.—If the application of para-
graph (2) would result in any of the 50 States or
the District of Columbia receiving less under this
part than it received under this part for the pre-
ceding fiscal year, the percentage in paragraph (1)
shall be the greater of the percentage in paragraph
(1)(A) or the percentage used for the preceding fis-
cal year.’’; and
232
(3) by striking subsections (d) and (e).
SEC. 122. STATE APPLICATIONS; SERVICES.
(a) PROGRAM INFORMATION.—Section 1304(b) (20
U.S.C. 6394(b)) is amended—
(1) in paragraph (1), by striking ‘‘addressed
through’’ and all that follows through the semicolon
at the end and inserting the following:
‘‘addressed through—
‘‘(A) the full range of services that are
available for migratory children from appro-
priate local, State, and Federal educational pro-
grams;
‘‘(B) joint planning among local, State,
and Federal educational programs serving mi-
grant children, including programs under part
A of title III;
‘‘(C) the integration of services available
under this part with services provided by those
other programs; and
‘‘(D) measurable program goals and out-
comes;’’;
(2) in paragraph (5), by striking ‘‘the require-
ments of paragraph (1); and’’ and inserting ‘‘the
numbers and needs of migratory children, the re-
quirements of subsection (d), and the availability of
233
funds from other Federal, State, and local pro-
grams;’’; and
(3) in paragraph (6), by striking the period at
the end and inserting ‘‘; and’’.
(b) ASSURANCES.—Section 1304(c) (20 U.S.C.
6394(c)) is amended—
(1) in paragraph (1), by striking ‘‘1306(b)(1);’’
and inserting ‘‘1306(a);’’;
(2) in paragraph (2), by striking ‘‘part F;’’ and
inserting ‘‘part H;’’
(3) in paragraph (3)—
(A) by striking ‘‘appropriate’’;
(B) by striking ‘‘out, to the extent fea-
sible,’’ and inserting ‘‘out’’; and
(C) by striking ‘‘1118;’’ and inserting
‘‘1118, 
unless 
extraordinary 
circumstances
make implementation consistent with such sec-
tion impractical;’’; and
(4) in paragraph (7), by striking ‘‘section
1303(e)’’ and inserting ‘‘paragraphs (1)(A) and
(2)(B)(i) of section 1303(a)’’.
SEC. 123. AUTHORIZED ACTIVITIES.
Section 1306 (20 U.S.C. 6396) is amended to read
as follows:
234
‘‘SEC. 1306. AUTHORIZED ACTIVITIES.
‘‘(a) IN GENERAL.—
‘‘(1) FLEXIBILITY.—Each State educational
agency, through its local educational agencies, shall
have the flexibility to determine the activities to be
provided with funds made available under this part,
except that such funds shall first be used to meet
the identified needs of migratory children that result
from their migratory lifestyle, and to permit these
children to participate effectively in school.
‘‘(2) UNADDRESSED NEEDS.—Funds provided
under this part shall be used to address the needs
of migratory children that are not addressed by serv-
ices available from other Federal or non-Federal
programs, except that migratory children who are el-
igible to receive services under part A of this title
may receive those services through funds provided
under that part, or through funds under this part
that remain after the agency addresses the needs de-
scribed in paragraph (1).
‘‘(b) CONSTRUCTION.—Nothing in this part shall be
construed to prohibit a local educational agency from serv-
ing migratory children simultaneously with students with
similar educational needs in the same educational settings,
where appropriate.
235
‘‘(c) SPECIAL RULE.—Notwithstanding section 1114,
a school that receives funds under this part shall continue
to address the identified needs described in subsection
(a)(1).’’.
SEC. 124. COORDINATION OF MIGRANT EDUCATION ACTIVI-
TIES.
(a) DURATION.—Section 1308(a)(2) (20 U.S.C.
6398(a)(2)) is amended by striking ‘‘subpart’’ and insert-
ing ‘‘subsection’’.
(b) STUDENT
RECORDS.—Section 1308(b) (20
U.S.C. 6398(b)) is amended to read as follows:
‘‘(b) STUDENT RECORDS.—
‘‘(1) ASSISTANCE.—The Secretary shall assist
States in developing effective methods for the trans-
fer of student records and in determining the num-
ber of migratory children in each State. The Sec-
retary, in consultation with the States, shall deter-
mine the minimum data elements that each State re-
ceiving funds under this part shall collect and main-
tain. The Secretary shall assist States to implement
a system of linking their student record transfer sys-
tems for the purpose of electronic records mainte-
nance and transfer for migrant students.
‘‘(2) NO COST FOR CERTAIN TRANSFERS.—A
State educational agency or local educational agency
236
receiving assistance under this part shall make stu-
dent records available to another State or local edu-
cational agency that requests the records at no cost
to the requesting agency, if the request is made in
order to meet the needs of a migratory child.’’.
(c) AVAILABILITY OF FUNDS.—Section 1308(c) (20
U.S.C. 6398(c)) is amended by striking ‘‘$6,000,000’’ and
inserting ‘‘$10,000,000’’.
(d) INCENTIVE
GRANTS.—Section 1308(d) (20
U.S.C. 6398(d)) is amended to read as follows:
‘‘(d) INCENTIVE GRANTS.—From the amounts made
available to carry out this section for any fiscal year, the
Secretary may reserve not more than $3,000,000 to award
grants of not more than $250,000 on a competitive basis
to State educational agencies that propose a consortium
arrangement with another State or other appropriate enti-
ty that the Secretary determines, pursuant to criteria that
the Secretary shall establish, will improve the delivery of
services to migratory children whose education is inter-
rupted.’’.
PART D—NEGLECTED OR DELINQUENT YOUTH
SEC. 131. NEGLECTED OR DELINQUENT YOUTH.
The heading for part D of title I is amended to read
as follows:
237
‘‘PART 
D—PREVENTION 
AND 
INTERVENTION
PROGRAMS FOR NEGLECTED OR DELIN-
QUENT CHILDREN AND YOUTH’’.
SEC. 132. FINDINGS.
Section 1401(a) (20 U.S.C. 6421(a)) is amended by
striking paragraphs (6) through (9) and inserting the fol-
lowing:
‘‘(6) Youth returning from correctional facilities
need to be involved in programs that provide them
with high-level skills and other support to help them
stay in school and complete their education.
‘‘(7) Pregnant and parenting teenagers are a
high-at-risk group for dropping out of school and
should be targeted by dropout prevention pro-
grams.’’.
SEC. 133. ALLOCATION OF FUNDS.
Section 1412(b) (20 U.S.C. 6432(b)) is amended to
read as follows:
‘‘(b) SUBGRANTS TO STATE AGENCIES IN PUERTO
RICO.—
‘‘(1) IN GENERAL.—For each fiscal year, the
amount of the subgrant which a State agency in the
Commonwealth of Puerto Rico shall be eligible to re-
ceive under this part shall be the amount determined
by multiplying the number of children counted under
238
subparagraph (a)(1)(A) for the Commonwealth of
Puerto Rico by the product of—
‘‘(A) the percentage which the average per-
pupil expenditure in the Commonwealth of
Puerto Rico is of the lowest average per-pupil
expenditure of any of the 50 States; and
‘‘(B) 32 percent of the average per-pupil
expenditure in the United States.
‘‘(2) MINIMUM PERCENTAGE.—The percentage
in paragraph (1)(A) shall not be less than—
‘‘(A) for fiscal year 2002, 77.5 percent;
‘‘(B) for fiscal year 2003, 80.0 percent;
‘‘(C) for fiscal year 2004, 82.5 percent;
and
‘‘(D) for fiscal year 2005 and succeeding
fiscal years, 85.0 percent.
‘‘(3) LIMITATION.—If the application of para-
graph (2) would result in any of the 50 States or
the District of Columbia receiving less under this
part than it received under this part for the pre-
ceding fiscal year, the percentage in paragraph (1)
shall be the greater of the percentage in paragraph
(1)(A) or the percentage used for the preceding fis-
cal year.’’.
239
SEC. 134. STATE PLAN AND STATE AGENCY APPLICATIONS.
Section 1414 (20 U.S.C. 6434) is amended to read
as follows:
‘‘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
part shall submit, for approval by the Secretary, a
plan for meeting the educational needs of neglected
and delinquent youth, for assisting in their transi-
tion from institutions to locally operated programs,
and which is integrated with other programs under
this Act or other Acts, as appropriate, consistent
with section 8306.
‘‘(2) CONTENTS.—Each such State plan shall—
‘‘(A) describe the program goals, objec-
tives, and performance measures established by
the State that will be used to assess the effec-
tiveness of the program in improving academic
and vocational and technical 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
240
children were in the schools of local educational
agencies in the State; and
‘‘(C) contain assurances that the State
educational agency will—
‘‘(i) ensure that programs assisted
under this part will be carried out in ac-
cordance with the State plan described in
this subsection;
‘‘(ii) carry out the evaluation require-
ments of section 1416;
‘‘(iii) ensure that the State agencies
receiving subgrants under this subpart
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 such
State plan shall—
‘‘(A) remain in effect for the duration of
the State’s participation under this part; and
‘‘(B) be periodically reviewed and revised
by the State, as necessary, to reflect changes in
the State’s strategies and programs under this
part.
‘‘(b) SECRETARIAL APPROVAL AND PEER REVIEW.—
241
‘‘(1) SECRETARIAL APPROVAL.—The Secretary
shall approve each State plan that meets the re-
quirements 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
agency that desires to receive funds to carry out a pro-
gram under this part 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
assess the educational needs of the children to be
served;
‘‘(2) provides assurances that in making serv-
ices available to youth in adult correctional facilities,
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 up-
dates to be provided to the State educational agency;
‘‘(4) describes how the program will meet the
goals and objectives of the State plan under this
subpart;
242
‘‘(5) describes how the State agency will consult
with experts and provide the necessary training for
appropriate staff, to ensure that the planning and
operation of institution-wide projects under section
1416 are of high quality;
‘‘(6) describes how the agency will carry out the
evaluation requirements of section 8651 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 fiscal effort required of a local edu-
cational agency, in accordance with section 8501;
‘‘(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 (29 U.S.C. 2801 et
seq.), vocational and technical education programs,
State and local dropout prevention programs, and
special education programs;
‘‘(9) describes how States will encourage correc-
tional facilities receiving funds under this subpart to
coordinate with local educational agencies or alter-
native education programs attended by incarcerated
youth prior to their incarceration to ensure that stu-
dent assessments and appropriate academic records
243
are shared jointly between the correctional facility
and the local educational agency or alternative edu-
cation program;
‘‘(10) describes how appropriate professional
development will be provided to teachers and other
staff;
‘‘(11) 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;
‘‘(12) describes how the agency will endeavor to
coordinate with businesses for training and men-
toring for participating youth;
‘‘(13) provides assurances that the agency will
assist in locating alternative programs through
which students can continue their education if stu-
dents are not returning to school after leaving the
correctional facility;
‘‘(14) provides assurances that the agency will
work with parents to secure parents’ assistance in
improving the educational achievement of their chil-
dren and preventing their children’s further involve-
ment in delinquent activities;
‘‘(15) provides assurances that the agency
works with special education youth in order to meet
244
an existing individualized education program and an
assurance that the agency will notify the youth’s
local school if such 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;
‘‘(16) provides assurances that the agency will
work with youth who dropped out of school before
entering the facility to encourage the youth to reen-
ter school once the term of incarceration has been
completed or provide the youth with the skills nec-
essary to gain employment, continue the education
of the youth, or achieve a secondary school diploma
or the recognized equivalent if the youth does not in-
tend to return to school;
‘‘(17) 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;
‘‘(18) describes any additional services to be
provided to youth, such as career counseling, dis-
tance learning, and assistance in securing student
loans and grants; and
245
‘‘(19) provides assurances that the program
under this subpart will be coordinated with any pro-
grams operated under the Juvenile Justice and De-
linquency Prevention Act of 1974 (42 U.S.C. 5601
et seq.) or other comparable programs, if applica-
ble.’’.
SEC. 135. USE OF FUNDS.
Section 1415(a) (20 U.S.C. 6435(a)) is amended—
(1) in paragraph (1)(B), by inserting ‘‘, voca-
tional and technical training,’’ after ‘‘secondary
school completion’’;
(2) in paragraph (2)(B)—
(A) in clause (i), by inserting ‘‘and’’ after
the semicolon;
(B) in clause (ii), by striking ‘‘; and’’ and
inserting a period; and
(C) by striking clause (iii);
(3) in paragraph (2)(C), by striking ‘‘part F of
this title’’ and inserting ‘‘part H’’; and
(4) in paragraph (2)(D), by striking ‘‘section
14701’’ and inserting ‘‘section 8651’’.
SEC. 136. TRANSITION SERVICES.
Section 1418(a) (20 U.S.C. 6438(a)) is amended by
striking ‘‘10 percent’’ and inserting ‘‘15 percent’’.
246
SEC. 137. PURPOSE.
Section 1421(3) (20 U.S.C. 6451(3)) is amended to
read as follows:
‘‘(3) operate programs in local schools for youth
returning from correctional facilities and programs
which may also serve youth at risk of dropping out
of school.’’.
SEC. 138. PROGRAMS OPERATED BY LOCAL EDUCATIONAL
AGENCIES.
Section 1422 (20 U.S.C. 6452) is amended—
(1) in subsection (a), by striking ‘‘retained’’;
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) SPECIAL RULE.—A local educational agency
which includes a correctional facility that operates a school
is not required to operate a program of support for chil-
dren returning from such school to a school not operated
by a correctional agency but served by such local edu-
cational agency if more than 30 percent of the youth at-
tending the school operated by the correctional facility will
reside outside the boundaries of the local educational
agency after leaving such facility.’’; and
(3) by adding at the end the following:
‘‘(d) TRANSITIONAL
AND ACADEMIC SERVICES.—
Transitional and supportive programs operated in local
educational agencies under this subpart shall be designed
247
primarily to meet the transitional and academic needs of
students returning to local educational agencies or alter-
native education programs from correctional facilities.
Services to students at risk of dropping out of school shall
not have a negative impact on meeting the transitional and
academic needs of the students returning from correc-
tional facilities.’’.
SEC. 139. LOCAL EDUCATIONAL AGENCY APPLICATIONS.
Section 1423 (20 U.S.C. 6453) is amended by strik-
ing paragraphs (4) through (9) and inserting the fol-
lowing:
‘‘(4) a description of the program operated by
participating schools for children returning from cor-
rectional facilities and the types of services that such
schools will provide such youth and other at-risk
youth;
‘‘(5) a description of the characteristics (includ-
ing learning difficulties, substance abuse problems,
and other special needs) of the youth who will be re-
turning from correctional facilities and, as appro-
priate, other at-risk youth expected to be served by
the program and how the school will coordinate ex-
isting educational programs to meet the unique edu-
cational needs of such youth;
248
‘‘(6) as appropriate, a description of how
schools will coordinate with existing social, health,
and other services to meet the needs of students re-
turning from correctional facilities, students at risk
of dropping out of school, and other participating
students, including prenatal health care and nutri-
tion services related to the health of the parent and
child, parenting and child development classes, child
care, targeted reentry and outreach programs, refer-
rals to community resources, and scheduling flexi-
bility;
‘‘(7) as appropriate, a description of any part-
nerships with local businesses to develop training,
curriculum-based youth entrepreneurship education,
and mentoring services for participating students;
‘‘(8) as appropriate, a description of how pro-
grams will involve parents in efforts to improve the
educational achievement of their children, prevent
the involvement of their children in delinquent activi-
ties, and encourage their children to remain in
school and complete their education;
‘‘(9) a description of how the program under
this subpart will be coordinated with other Federal,
State, and local programs, such as programs under
title I of the Workforce Investment Act of 1998 (29
249
U.S.C. 2801 et seq.) and vocational and technical
education programs serving this at-risk population
of youth.’’.
SEC. 140. USES OF FUNDS.
Section 1424 (20 U.S.C. 6454) is amended by strik-
ing paragraphs (1) through (3) and inserting the fol-
lowing:
‘‘(1) programs that serve youth returning from
correctional facilities to local schools, to assist in the
transition of such youth to the school environment
and help them remain in school in order to complete
their education;
‘‘(2) providing assistance to other youth at risk
of dropping out of school, including pregnant and
parenting teenagers;
‘‘(3) the coordination of social, health, and
other services, including day care, for participating
youth, if the provision of such services will improve
the likelihood that such youth will complete their
education;
‘‘(4) special programs to meet the unique aca-
demic needs of participating youth, including voca-
tional and technical education, special education, ca-
reer counseling, curriculum-based youth entrepre-
neurship education, and assistance in securing stu-
250
dent loans or grants for postsecondary education;
and
‘‘(5) programs providing mentoring and peer
mediation.’’.
SEC. 141. PROGRAM REQUIREMENTS.
Section 1425 (20 U.S.C. 6455) is amended—
(1) in the section heading, by striking ‘‘THIS
SECTION’’ and inserting ‘‘THIS SUBPART’’;
(2) in the matter preceding paragraph (1), by
striking ‘‘this section’’ and inserting ‘‘this subpart’’;
(3) in paragraph (1), by striking ‘‘where fea-
sible, ensure educational programs’’ and inserting
‘‘to the extent practicable, ensure that educational
programs’’;
(4) in paragraphs (3) and (8), by striking
‘‘where feasible,’’ and inserting ‘‘to the extent prac-
ticable,’’;
(5) in paragraph (9)—
(A) by striking ‘‘this program’’ and insert-
ing ‘‘this subpart’’;
(B) by inserting ‘‘and technical’’ after ‘‘vo-
cational’’; and
(C) by inserting ‘‘(20 U.S.C. 2801 et
seq.)’’ after ‘‘Workforce Investment Act of
1998’’;
251
(6) in paragraph (10), by inserting ‘‘(42 U.S.C.
5601 et seq.)’’ after ‘‘Juvenile Justice and Delin-
quency Prevention Act of 1974’’; and
(7) by amending paragraph (11) to read as fol-
lows:
‘‘(11) if appropriate, work with local businesses
to develop training, curriculum-based youth entre-
preneurship education, and mentoring programs for
youth.’’.
SEC. 142. PROGRAM EVALUATIONS.
Section 1431(a) (20 U.S.C. 6471(a)) is amended by
striking ‘‘sex, and if feasible,’’ and inserting ‘‘gender,’’.
PART E—FEDERAL EVALUATIONS AND
DEMONSTRATIONS
SEC. 151. EVALUATIONS.
Section 1501 (20 U.S.C. 6491) is amended to read
as follows:
‘‘SEC. 1501. EVALUATIONS.
‘‘(a) NATIONAL ASSESSMENT.—
‘‘(1) IN
GENERAL.—In accordance with this
section, the Secretary shall conduct a national as-
sessment of programs assisted under this title.
‘‘(2) ISSUES TO BE EXAMINED.—In conducting
the assessment under this subsection, the Secretary
shall examine—
252
‘‘(A) the implementation of programs as-
sisted under this title and the impact of such
implementation on increasing student academic
achievement, particularly schools with high con-
centrations of children living in poverty;
‘‘(B) the implementation of State stand-
ards, assessments, and accountability systems
developed under this title and the impact of
such implementation on educational programs
and instruction at the local level;
‘‘(C) the impact of schoolwide programs
and targeted assistance programs under this
title on improving student academic achieve-
ment;
‘‘(D) the extent to which varying models of
comprehensive school reform are funded under
this title, and the effect of the implementation
of such models on improving achievement of
disadvantaged students;
‘‘(E) the cost-effectiveness of programs as-
sisted under this title;
‘‘(F) the impact of school choice options
under section 1116 on the academic achieve-
ment of disadvantaged students and schools in
school improvement;
253
‘‘(G) the extent to which corrective actions
authorized under section 1116 of this title are
employed by State and local educational agen-
cies to improve the academic achievement of
students in low-performing schools, and the ef-
fectiveness of the implementation of such cor-
rective actions;
‘‘(H) the extent to which technical assist-
ance made available under this title is used to
improve the achievement of students in low-per-
forming schools, and the impact of such assist-
ance on such achievement;
‘‘(I) the extent to which State and local
fiscal accounting requirements under this title
limit the flexibility of schoolwide programs;
‘‘(J) the impact of the professional devel-
opment activities assisted under this title on in-
struction and student performance;
‘‘(K) the extent to which the assistance
made available under this title is targeted to
disadvantaged students and schools that need
them the most;
‘‘(L) the effectiveness of Federal adminis-
tration assistance made available under this
254
title, including monitoring and technical assist-
ance; and
‘‘(M) such other issues as the Secretary
considers appropriate.
‘‘(3) SOURCES
OF
INFORMATION.—In con-
ducting the assessment under this subsection, the
Secretary shall use information from a variety of
sources, including the National Assessment of Edu-
cational Progress (carried out under section 411 of
the National Education Statistics Act of 1994 (20
U.S.C. 9010)), state evaluations, and other research
studies.
‘‘(4) COORDINATION.—In carrying out this sub-
section, the Secretary shall—
‘‘(A) coordinate conducting the national
assessment with conducting the longitudinal
study described in subsection (c); and
‘‘(B) ensure that the independent review
panel described in subsection (d) participates in
conducting the national assessment, including
planning for and reviewing the assessment.
‘‘(5) REPORTS.—
‘‘(A) INTERIM REPORT.—Not later than 3
years after the date of enactment of the Leave
No Child Behind Act of 2001, the Secretary
255
shall transmit to the President and the Con-
gress an interim report on the national assess-
ment conducted under this subsection.
‘‘(B) FINAL REPORT.—Not later than 4
years after the date of enactment of the Leave
No Child Behind Act of 2001, the Secretary
shall transmit to the President and the Con-
gress a final report on the national assessment
conducted under this subsection.
‘‘(b) STUDIES AND DATA COLLECTION.—
‘‘(1) IN GENERAL.—In addition to other activi-
ties described in this section, the Secretary may, di-
rectly or through the making of grants to or con-
tracts with appropriate entities—
‘‘(A) conduct studies and evaluations of
the need for, and effectiveness of, each program
authorized under this title;
‘‘(B) collect the data necessary to comply
with the Government Performance and Results
Act of 1993; and
‘‘(C) provide guidance and technical assist-
ance to State education agencies and local edu-
cational agencies in developing and maintaining
management 
information 
systems 
through
which such agencies can develop program per-
256
formance indicators in order to improve services
and performance.
‘‘(2) MINIMUM INFORMATION.—Under this sub-
section, the Secretary shall collect, at a minimum,
trend information on the effect of each program au-
thorized under this title, which shall complement the
data collected and reported under subsections (a)
and (c).
‘‘(c) NATIONAL LONGITUDINAL STUDY.—
‘‘(1) IN GENERAL.—The Secretary shall con-
duct a longitudinal study of schools receiving assist-
ance under this title.
‘‘(2) ISSUES
TO
BE
EXAMINED.—In carrying
out this subsection, the Secretary shall ensure that
the study referred to in paragraph (1) provides the
Congress and educators with each of the following:
‘‘(A) An accurate description and analysis
of short-term and long-term effectiveness of the
assistance made available under this title upon
academic performance.
‘‘(B) Information that can be used to im-
prove the effectiveness of the assistance made
available under this title in enabling students to
meet challenging achievement standards.
257
‘‘(C) An analysis of educational practices
or model programs that are effective in improv-
ing the achievement of disadvantaged children.
‘‘(D) An analysis of the cost-effectiveness
of the assistance made available under this title
in improving the achievement of disadvantaged
children.
‘‘(E) An analysis of the effects of the avail-
ability of school choice options under section
1116 on the academic achievement of disadvan-
taged students and schools in school improve-
ment.
‘‘(F) Such other information as the Sec-
retary considers appropriate.
‘‘(3) SCOPE.—In conducting the study referred
to in paragraph (1), the Secretary shall ensure that
the study—
‘‘(A) bases its analysis on a nationally rep-
resentative sample of schools participating in
programs under this part;
‘‘(B) to the extent practicable, includes in
its analysis students who transfer to different
schools during the course of the study; and
‘‘(C) analyzes varying models or strategies
for delivering school services, including—
258
‘‘(i) schoolwide and targeted services;
and
‘‘(ii) comprehensive school reform
models.
‘‘(d) INDEPENDENT REVIEW PANEL.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish an independent review panel (in this subsection
referred to as the ‘Review Panel’) to advise the Sec-
retary on methodological and other issues that arise
in carrying out subsections (a) and (c).
‘‘(2) APPOINTMENT OF MEMBERS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall appoint members
of the Review Panel from among qualified indi-
viduals who are—
‘‘(i) specialists in statistics, evalua-
tion, research, and assessment;
‘‘(ii) education practitioners, including
teachers, principals, and local and State
superintendents; and
‘‘(iii) other individuals with technical
expertise who would contribute to the over-
all rigor and quality of the program eval-
uation.
260
‘‘(B) to ensure—
‘‘(i) that the final report described in
subsection (a)(5)(B) is reviewed not later
than 120 days after its completion by not
less than 2 independent experts in pro-
gram evaluation;
‘‘(ii) that such experts evaluate and
comment on the degree to which the report
complies with subsection (a); and
‘‘(iii) that the comments of such ex-
perts are transmitted with the report
under subsection (a)(5)(B).’’.
SEC. 152. DEMONSTRATIONS OF INNOVATIVE PRACTICES.
(a) IN GENERAL.—Section 1502 (20 U.S.C. 6492)
is amended—
(1) by striking subsection (b);
(2) by striking ‘‘(a) DEMONSTRATION PRO-
GRAMS’’ and all that follows through ‘‘IN
GEN-
ERAL.—From the funds’’ and inserting ‘‘(a) IN
GENERAL.—From the funds’’;
(3) by moving paragraph (2) 2 ems to the left;
(4) by redesignating paragraph (2) as sub-
section (b); and
(5) in subsection (a) (as redesignated by para-
graph (2) of this section)—
261
(A) by moving each of subparagraphs (A)
through (F) 2 ems to the left; and
(B) by redesignating subparagraphs (A)
through (F) as paragraphs (1) through (6), re-
spectively.
(b) PROMISING STRATEGIES.—Section 1502(a) (as
amended by subsection (a) of this section) is further is
amended—
(1) by inserting ‘‘charter schools,’’ after ‘‘other
public agencies,’’;
(2) in paragraph (1), by striking ‘‘accelerated
curricula’’ and all that follows through ‘‘to reach
such standards’’ and inserting ‘‘innovative instruc-
tional programs and practices based on reliable,
replicable research’’;
(3) in paragraph (2), by striking ‘‘integration of
education services’’ and all that follows through ‘‘en-
terprise communities’’ and inserting ‘‘public and pri-
vate school choice, charter schools, and other such
programs to promote school improvement’’;
(4) in paragraph (3), by striking ‘‘whole school
reform’’ and inserting ‘‘comprehensive school re-
form’’;
(5) by adding ‘‘and’’ at the end of paragraph
(4);
262
(6) by striking ‘‘; and’’ at the end of paragraph
(5) and inserting ‘‘, including the use of incentives
such as differential or performance based pay to
serve areas of high need.’’; and
(7) by striking paragraph (6).
PART F—COMPREHENSIVE SCHOOL REFORM
SEC. 161. SCHOOL REFORM.
Part F of title I is amended to read as follows:
‘‘PART F—COMPREHENSIVE SCHOOL REFORM
‘‘SEC. 1601. COMPREHENSIVE SCHOOL REFORM.
‘‘(a) FINDINGS AND PURPOSE.—
‘‘(1) FINDINGS.—Congress finds the following:
‘‘(A) A number of schools across the coun-
try have shown impressive gains in student per-
formance through the use of comprehensive
models for schoolwide change that incorporate
virtually all aspects of school operations.
‘‘(B) No single comprehensive school re-
form model may be suitable for every school,
however, schools should be encouraged to exam-
ine successful, externally developed comprehen-
sive school reform approaches as they under-
take comprehensive school reform.
‘‘(C) Comprehensive school reform is an
important means by which children are assisted
263
in meeting challenging State student perform-
ance standards.
‘‘(2) PURPOSE.—The purpose of this section is
to provide financial incentives for schools to develop
comprehensive school reforms, based upon scientif-
ically-based research and effective practices that in-
clude an emphasis on basic academics and parental
involvement so that all children can meet challenging
State content and performance standards.
‘‘(b) PROGRAM AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary is authorized
to provide grants to State educational agencies to
provide subgrants to local educational agencies to
carry out the purpose described in subsection (a)(2).
‘‘(2) ALLOCATION.—
‘‘(A) RESERVATION.—Of the amount ap-
propriated under this section, the Secretary
may reserve—
‘‘(i) not more than 1 percent for
schools supported by the Bureau of Indian
Affairs and in the United States Virgin Is-
lands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana
Islands; and
264
‘‘(ii) not more than 1 percent to con-
duct national evaluation activities de-
scribed under subsection (e).
‘‘(B) IN
GENERAL.—Of the amount of
funds remaining after the reservation under
subparagraph (A), the Secretary shall allocate
to each State for a fiscal year, an amount that
bears the same ratio to the amount appro-
priated 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 allocated under section 1124 to all
States for that year.
‘‘(C) REALLOCATION.—If a State does not
apply for funds under this section, the Sec-
retary shall reallocate such funds to other
States that do apply in proportion to the
amount allocated to such States under subpara-
graph (B).
‘‘(c) STATE AWARDS.—
‘‘(1) STATE APPLICATION.—
‘‘(A) IN
GENERAL.—Each State edu-
cational agency that desires to receive a grant
under this section shall submit an application to
the Secretary at such time, in such manner and
265
containing such other information as the Sec-
retary may reasonably require.
‘‘(B) CONTENTS.—Each State application
shall also describe—
‘‘(i) the process and selection criteria
by which the State educational agency,
using expert review, will select local edu-
cational agencies to receive subgrants
under this section;
‘‘(ii) how the agency will ensure that
only comprehensive school reforms that are
based on scientifically-based research re-
ceive funds under this section;
‘‘(iii) how the agency will disseminate
materials regarding information on com-
prehensive school reforms that are based
on scientifically-based research;
‘‘(iv) how the agency will evaluate the
implementation of such reforms and meas-
ure the extent to which the reforms re-
sulted in increased student academic per-
formance; and
‘‘(v) how the agency will provide, upon
request, technical assistance to the local
educational agency in evaluating, devel-
266
oping, and implementing comprehensive
school reform.
‘‘(2) USES OF FUNDS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (E), a State educational agency
that receives an award under this section shall
use such funds to provide competitive grants to
local educational agencies receiving funds under
part A.
‘‘(B) GRANT REQUIREMENTS.—A grant to
a local educational agency shall be—
‘‘(i) of sufficient size and scope to
support the initial costs for the particular
comprehensive school reform plan selected
or designed by each school identified in the
application of the local educational agency;
‘‘(ii) in an amount not less than
$50,000 to each participating school; and
‘‘(iii) renewable for two additional 1-
year periods after the initial 1-year grant
is made if schools are making substantial
progress in the implementation of their re-
forms.
267
‘‘(C) PRIORITY.—The State, in awarding
grants under this paragraph, shall give priority
to local educational agencies that—
‘‘(i) plan to use the funds in schools
identified as being in need of improvement
or corrective action under section 1116(c);
and
‘‘(ii) demonstrate a commitment to
assist schools with budget allocation, pro-
fessional development, and other strategies
necessary to ensure the comprehensive
school reforms are properly implemented
and are sustained in the future.
‘‘(D) GRANT CONSIDERATION.—In making
subgrant awards under this part, the State edu-
cational agency shall take into account the equi-
table distribution of awards to different geo-
graphic regions within the State, including
urban and rural areas, and to schools serving
elementary and secondary students.
‘‘(E) ADMINISTRATIVE
COSTS.—A State
educational agency that receives a grant award
under this section may reserve not more than 5
percent of such award for administrative, eval-
uation, and technical assistance expenses.
268
‘‘(F) SUPPLEMENT.—Funds made avail-
able under this section shall be used to supple-
ment, not supplant, any other Federal, State,
or local funds that would otherwise be available
to carry out this section.
‘‘(3) 
REPORTING.—Each 
State 
educational
agency that receives an award under this section
shall provide to the Secretary such information as
the Secretary may require, including the names of
local educational agencies and schools selected to re-
ceive subgrant awards under this section, the
amount of such award, and a description of the com-
prehensive school reform model selected and in use.
‘‘(d) LOCAL AWARDS.—
‘‘(1) IN
GENERAL.—Each local educational
agency that applies for a subgrant under this section
shall—
‘‘(A) identify which schools eligible for
funds under part A plan to implement a com-
prehensive school reform program, including the
projected costs of such a program;
‘‘(B) describe the scientifically-based com-
prehensive school reforms that such schools will
implement;
269
‘‘(C) describe how the agency will provide
technical assistance and support for the effec-
tive implementation of the scientifically-based
school reforms selected by such schools; and
‘‘(D) describe how the agency will evaluate
the implementation of such reforms and meas-
ure the results achieved in improving student
academic performance.
‘‘(2) COMPONENTS OF THE PROGRAM.—A local
educational agency that receives a subgrant award
under this section shall provide such funds to
schools that implement a comprehensive school re-
form program that—
‘‘(A) employs innovative strategies and
proven methods for student learning, teaching,
and school management that are based on sci-
entifically-based research and effective practices
and have been replicated successfully in schools
with diverse characteristics;
‘‘(B) integrates a comprehensive design for
effective school functioning, including instruc-
tion, assessment, classroom management, pro-
fessional development, parental involvement,
and school management, that aligns the school’s
curriculum, technology, professional develop-
270
ment into a comprehensive reform plan for
schoolwide change designed to enable all stu-
dents to meet challenging State content and
challenging student performance standards and
addresses needs identified through a school
needs assessment;
‘‘(C) provides high-quality and continuous
teacher and staff professional development;
‘‘(D) includes measurable goals for student
performance and benchmarks for meeting such
goals;
‘‘(E) is supported by teachers, principals,
administrators, and other professional staff;
‘‘(F) provides for the meaningful involve-
ment of parents and the local community in
planning and implementing school improvement
activities;
‘‘(G) uses high quality external technical
support and assistance from an entity, which
may be an institution of higher education, with
experience and expertise in schoolwide reform
and improvement;
‘‘(H) includes a plan for the evaluation of
the implementation of school reforms and the
student results achieved; and
271
‘‘(I) identifies how other resources, includ-
ing Federal, State, local, and private resources,
available to the school will be used to coordinate
services to support and sustain the school re-
form effort.
‘‘(3) SPECIAL
RULE.—A school that receives
funds to develop a comprehensive school reform pro-
gram shall not be limited to using the approaches
identified or developed by the Department of Edu-
cation, but may develop its own comprehensive
school reform programs for schoolwide change that
comply with paragraph (2).
‘‘(e) EVALUATION AND REPORT.—
‘‘(1) IN GENERAL.—The Secretary shall develop
a plan for a national evaluation of the programs de-
veloped pursuant to this section.
‘‘(2) EVALUATION.—This national evaluation
shall evaluate the implementation and results
achieved by schools after 3 years of implementing
comprehensive school reforms, and assess the effec-
tiveness of comprehensive school reforms in schools
with diverse characteristics.
‘‘(3) REPORTS.—Prior to the completion of a
national evaluation, the Secretary shall submit an
interim report outlining first year implementation
272
activities to the Committees on Education and the
Workforce and Appropriations of the House of Rep-
resentatives and the Committees on Health, Edu-
cation, Labor, and Pensions and Appropriations of
the Senate.
PART G—RURAL EDUCATION
SEC. 171. RURAL EDUCATION.
Title I is amended by adding at the end the following
new part:
‘‘PART G—RURAL EDUCATION FLEXIBILITY AND
ASSISTANCE
‘‘SEC. 1701. SHORT TITLE.
‘‘This part may be cited as the ‘Rural Education Ini-
tiative Act’.
‘‘SEC. 1702. FINDINGS.
‘‘Congress finds the following:
‘‘(1) While there are rural education initiatives
identified at the State and local level, no Federal
education policy focuses on the specific and unique
needs of rural school districts and schools.
‘‘(2) Small school districts often cannot use
Federal grant funds distributed by formula because
the formula allocation does not provide enough rev-
enue to carry out the program the grant is intended
to fund.
273
‘‘(3) Rural schools often cannot compete for
Federal funding distributed by competitive grants
because the schools lack the personnel needed to
prepare grant applications and the resources to hire
specialists in the writing of Federal grant proposals.
‘‘(4) A critical problem for rural school districts
involves the hiring and retention of qualified admin-
istrators and certified teachers (especially in read-
ing, science, and mathematics). As a result, teachers
in rural schools are almost twice as likely to provide
instruction in three or more subject areas than
teachers in urban schools. Rural schools also face
other tough challenges, such as shrinking local tax
bases, high transportation costs, aging buildings,
limited course offerings, and limited resources.
‘‘Subpart 1—Rural Education Flexibility
‘‘SEC. 1711. FORMULA GRANT PROGRAM AUTHORIZED.
‘‘(a) ALTERNATIVE USES.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, an eligible local educational agency
may use the applicable funding, that the agency is
eligible to receive from the State educational agency
for a fiscal year, to support local or statewide edu-
cation reform efforts intended to improve the aca-
demic achievement of elementary school and sec-
274
ondary school students and the quality of instruction
provided for the students.
‘‘(2) NOTIFICATION.—An eligible local edu-
cational agency shall notify the State educational
agency of the local educational agency’s intention to
use the applicable funding in accordance with para-
graph (1) not later than a date that is established
by the State educational agency for the notification.
‘‘(b) ELIGIBILITY.—
‘‘(1) IN GENERAL.—A local educational agency
shall be eligible to use the applicable funding in ac-
cordance with subsection (a) if—
‘‘(A)(i) the total number of students in av-
erage daily attendance at all of the schools
served by the local educational agency is less
than 600; and
‘‘(ii) all of the schools served by the local
educational agency are designated with a school
locale code of 6, 7, or 8 as determined by the
Secretary of Education; or
‘‘(B) the agency meets the criteria established
in subparagraph (A)(i) and the Secretary, in accord-
ance with paragraph (2), grants the local edu-
cational agency’s request to waive the criteria de-
scribed in subparagraph (A)(ii).
275
‘‘(2) CERTIFICATION.—The Secretary shall de-
termine whether or not to waive the criteria de-
scribed in paragraph (1)(A)(ii) based on certification
provided by the local educational agency, or the
State educational agency on behalf of the local edu-
cational agency, that the local educational agency is
located in an area defined as rural by a govern-
mental agency of the State.
‘‘(c) APPLICABLE FUNDING.—In this section, the
term ‘applicable funding’ means funds provided under
each of part A of title II, title III, title IV, and parts A
and B of title V.
‘‘(d) DISBURSEMENT.—Each State educational agen-
cy that receives applicable funding for a fiscal year shall
disburse the applicable funding to local educational agen-
cies for alternative uses under this section for the fiscal
year at the same time that the State educational agency
disburses the applicable funding to local educational agen-
cies that do not intend to use the applicable funding for
such alternative uses for the fiscal year.
‘‘(e) SUPPLEMENT NOT SUPPLANT.—Funds used
under this section shall be used to supplement and not
supplant any other Federal, State, or local education
funds that would otherwise be available for the purpose
of this subpart.
276
‘‘(f) SPECIAL RULE.—References in Federal law to
funds for the provisions of law set forth in subsection (c)
may be considered to be references to funds for this sec-
tion.
‘‘SEC. 1712. PROGRAM AUTHORIZED.
‘‘(a) IN GENERAL.—The Secretary is authorized to
award grants to eligible local educational agencies to en-
able the local educational agencies to support local or
statewide education reform efforts intended to improve the
academic achievement of elementary school and secondary
school students and the quality of instruction provided for
the students.
‘‘(b) ELIGIBILITY.—
‘‘(1) IN GENERAL.—A local educational agency
shall be eligible to receive a grant under this section
if—
‘‘(A)(i) the total number of students in av-
erage daily attendance at all of the schools
served by the local educational agency is less
than 600; and
‘‘(ii) all of the schools served by the local
educational agency are designated with a school
locale code of 6, 7, or 8 as determined by the
Secretary of Education; or
278
graph (1) is equal to $100 multiplied by the total
number of students, over 50 students, in average
daily attendance in such eligible agency plus
$20,000, except that the initial amount may not ex-
ceed $60,000.
‘‘(3) RATABLE ADJUSTMENT.—
‘‘(A) IN GENERAL.—If the amount made
available for this subpart for any fiscal year is
not sufficient to pay in full the amounts that
local educational agencies are eligible to receive
under paragraph (1) for such year, the Sec-
retary shall ratably reduce such amounts for
such year.
‘‘(B) ADDITIONAL
AMOUNTS.—If addi-
tional funds become available for making pay-
ments under paragraph (1) for such fiscal year,
payments that were reduced under subpara-
graph (A) shall be increased on the same basis
as such payments were reduced.
‘‘(5) CENSUS DETERMINATION.—
‘‘(A) IN GENERAL.—Each local educational
agency desiring a grant under this section shall
conduct a census not later than December 1 of
each year to determine the number of kinder-
garten through grade 12 students in average
279
daily attendance at the schools served by the
local educational agency.
‘‘(B) SUBMISSION.—Each local educational
agency shall submit the number described in
subparagraph (A) to the Secretary not later
than March 1 of each year.
‘‘(d) DISBURSAL.—The Secretary shall disburse the
funds awarded to a local educational agency under this
section for a fiscal year not later than July 1 of that year.
‘‘(e) SPECIAL RULE.—A local educational agency
that is eligible to receive a grant under this subpart for
a fiscal year shall be ineligible to receive funds for such
fiscal year under subpart 2.
‘‘(f) SUPPLEMENT NOT SUPPLANT.—Funds made
available under this section shall be used to supplement
and not supplant any other Federal, State or local edu-
cation funds.
‘‘SEC. 1713. ACCOUNTABILITY.
‘‘(a) ACADEMIC ACHIEVEMENT.—
‘‘(1) IN
GENERAL.—Each local educational
agency that uses or receives funds under section
1711 or 1712 for a fiscal year shall administer an
assessment consistent with section 1111.
‘‘(2) SPECIAL
RULE.—Each local educational
agency that uses or receives funds under section
280
1711 or 1712 shall use the same assessment de-
scribed in paragraph (1) for each year of participa-
tion in the program under such section.
‘‘(b) STATE EDUCATIONAL AGENCY DETERMINATION
REGARDING CONTINUING PARTICIPATION.—Each State
educational agency that receives funding under the provi-
sions of law described in section 1711(c) shall—
‘‘(1) after the second year that a local edu-
cational agency participates in a program under sec-
tion 1711 or 1712 and on the basis of the results
of the assessments described in subsection (a), deter-
mine whether the students served by the local edu-
cational agency participating in the program per-
formed in accordance with section 1111; and
‘‘(2) only permit those local educational agen-
cies that so participated and met the requirements
of section 1111(b)(2) to continue to so participate.
‘‘Subpart 2—Rural Education Assistance
‘‘SEC. 1721. PROGRAM AUTHORIZED.
‘‘(a) RESERVATIONS.—From amounts appropriated
under section 1732 for this subpart for a fiscal year, the
Secretary shall reserve 1⁄2 of 1 percent to make awards
to elementary or secondary schools operated or supported
by the Bureau of Indian Affairs to carry out the purpose
of this subpart.
281
‘‘(b) GRANTS TO STATES.—
‘‘(1) IN
GENERAL.—From amounts appro-
priated under section 1732 for this subpart that are
not reserved under subsection (a), the Secretary
shall award grants for a fiscal year to State edu-
cational agencies that have applications approved
under section 1723 to enable the State educational
agencies to award subgrants to eligible local edu-
cational agencies for local authorized activities de-
scribed in subsection (c)(2).
‘‘(2) 
ALLOCATION.—From 
amounts 
appro-
priated for this subpart, the Secretary shall allocate
to each State educational agency for a fiscal year an
amount that bears the same ratio to the amount of
funds appropriated under section 1732 for this sub-
part that are not reserved under subsection (a) as
the number of students in average daily attendance
served by eligible local educational agencies in the
State bears to the number of all such students
served by eligible local educational agencies in all
States for that fiscal year.
‘‘(3) DIRECT
AWARDS
TO
SPECIALLY
QUALI-
FIED AGENCIES.—
‘‘(A) NONPARTICIPATING
STATE.—If a
State educational agency elects not to partici-
282
pate in the program under this subpart or does
not have an application approved under section
1723 a specially qualified agency in such State
desiring a grant under this subpart shall apply
directly to the Secretary to receive an award
under this subpart.
‘‘(B) DIRECT
AWARDS
TO
SPECIALLY
QUALIFIED
AGENCIES.—The Secretary may
award, on a competitive basis, the amount the
State educational agency is eligible to receive
under paragraph (2) directly to specially quali-
fied agencies in the State.
‘‘(c) LOCAL AWARDS.—
‘‘(1) ELIGIBILITY.—A local educational agency
shall be eligible to receive funds under this subpart
if—
‘‘(A) 20 percent or more of the children
aged 5 to 17, inclusive, served by the local edu-
cational agency are from families with incomes
below the poverty line; and
‘‘(B) all of the schools served by the agen-
cy are designated with a school code of 6, 7, or
8 as determined by the Secretary of Education.
283
‘‘(2) USES OF FUNDS.—Grant funds awarded
to local educational agencies or made available to
schools under this subpart shall be used for—
‘‘(A) teacher recruitment and retention, in-
cluding the use of signing bonuses and other fi-
nancial incentives;
‘‘(B) teacher professional development, in-
cluding programs that train teachers to utilize
technology to improve teaching and to train
special needs teachers;
‘‘(C) educational technology, including
software and hardware as described in part B
of title V;
‘‘(D) parental involvement activities; or
‘‘(E) programs to improve student aca-
demic achievement.
‘‘SEC. 1722. STATE DISTRIBUTION OF FUNDS.
‘‘(a) AWARD BASIS.—A State educational agency
shall award grants to eligible local educational agencies—
‘‘(1) on a competitive basis; or
‘‘(2) according to a formula based on the num-
ber of students in average daily attendance served
by the eligible local educational agencies or schools
(as appropriate) in the State, as determined by the
State.
284
‘‘(b) ADMINISTRATIVE COSTS.—A State educational
agency receiving a grant under this subpart may not use
more than 5 percent of the amount of the grant for State
administrative costs.
‘‘SEC. 1723. APPLICATIONS.
‘‘Each State educational agency and specially quali-
fied agency desiring to receive a grant under this subpart
shall submit an application to the Secretary at such time,
in such manner, and accompanied by such information as
the Secretary may require. Such application shall include
specific measurable goals and objectives relating to in-
creased student academic achievement, decreased student
drop-out rates, or such other factors that the State edu-
cational agency or specially qualified agency may choose
to measure.
‘‘SEC. 1724. REPORTS.
‘‘(a) STATE
REPORTS.—Each State educational
agency that receives a grant under this subpart shall pro-
vide an annual report to the Secretary. The report shall
describe—
‘‘(1) the method the State educational agency
used to award grants to eligible local educational
agencies and to provide assistance to schools under
this subpart;
285
‘‘(2) how local educational agencies and schools
used funds provided under this subpart; and
‘‘(3) the degree to which progress has been
made toward meeting the goals and objectives de-
scribed in the application submitted under section
1723.
‘‘(b) SPECIALLY QUALIFIED AGENCY REPORT.—
Each specially qualified agency that receives a grant under
this subpart shall provide an annual report to the Sec-
retary. Such report shall describe—
‘‘(1) how such agency uses funds provided
under this subpart; and
‘‘(2) the degree to which progress has been
made toward meeting the goals and objectives de-
scribed in the application submitted under section
1721(b)(4)(A).
‘‘(c) REPORT TO CONGRESS.—The Secretary shall
prepare and submit to the Committee on Education and
the Workforce for the House of Representatives and the
Committee on Health, Education, Labor, and Pensions for
the Senate an annual report. The report shall describe—
‘‘(1) the methods the State educational agency
used to award grants to eligible local educational
agencies and to provide assistance to schools under
this subpart;
286
‘‘(2) how eligible local educational agencies and
schools used funds provided under this subpart; and
‘‘(3) progress made in meeting specific measur-
able educational goals and objectives.
‘‘SEC. 1725. PERFORMANCE REVIEW.
‘‘Three years after a State educational agency or spe-
cially qualified agency receives funds under this part, the
Secretary shall review the progress of such agency toward
achieving the goals and objectives included in its applica-
tion, to determine whether the agency has made progress
toward meeting such goals and objectives. To review the
performance of each agency, the Secretary shall—
‘‘(1) Review the use of funds of such agency
under section 1721(c)(2); and
‘‘(2) deny the provision of additional funds in
subsequent fiscal years to an agency only if the Sec-
retary determines, after notice and an opportunity
for a hearing, that the agency’s use of funds has
been inadequate to justify continuation of such fund-
ing.
‘‘SEC. 1726. DEFINITIONS.
‘‘In this subpart—
‘‘(1) The term ‘poverty line’ means the poverty
line (as defined by the Office of Management and
Budget, and revised annually in accordance with sec-
287
tion 673(2) of the Community Services Block Grant
Act (42 U.S.C. 9902(2))) applicable to a family of
the size involved.
‘‘(2) The term ‘specially qualified agency’
means an eligible local educational agency, located in
a State that does not participate in a program under
this subpart in a fiscal year, that may apply directly
to the Secretary for a grant in such year in accord-
ance with section 1721(b)(4).
‘‘Subpart 3—General Provisions
‘‘SEC. 1731. DEFINITION.
‘‘In this part, the term ‘State’ means each of the 50
States, the District of Columbia, and the Commonwealth
of Puerto Rico.’’.
PART H—GENERAL PROVISIONS OF TITLE I
SEC. 181. GENERAL PROVISIONS.
Title I is amended further by adding at the end the
following:
‘‘‘PART H—GENERAL PROVISIONS
‘‘SEC. 1801. FEDERAL REGULATIONS.
‘‘(a) IN GENERAL.—The Secretary is authorized to
issue such regulations as are necessary to ensure reason-
able compliance with this title.
‘‘(b) NEGOTIATED RULEMAKING PROCESS.—
288
‘‘(1) IN GENERAL.—Prior to publishing in the
Federal Register proposed regulations to carry out
this title, the Secretary shall obtain the advice and
recommendations of representatives of Federal,
State, and local administrators, parents, teachers,
paraprofessionals, and members of local boards of
education involved with the implementation and op-
eration of programs under this title.
‘‘(2) 
MEETINGS
AND
ELECTRONIC
EX-
CHANGE.—Such advice and recommendation may be
obtained through such mechanisms as regional meet-
ings and electronic exchanges of information.
‘‘(3) PROPOSED REGULATIONS.—After obtain-
ing such advice and recommendations, and prior to
publishing proposed regulations, the Secretary
shall—
‘‘(A) establish a negotiated rulemaking
process on a minimum of three key issues,
including—
‘‘(i) accountability;
‘‘(ii) implementation of assessments;
and
‘‘(iii) use of paraprofessionals;
‘‘(B) select individuals to participate in
such process from among individuals or groups
289
which provided advice and recommendations, in-
cluding representation from all geographic re-
gions of the United States; and
‘‘(C) prepare a draft of proposed regula-
tions that shall be provided to the individuals
selected by the Secretary under subparagraph
(B) not less than 15 days prior to the first
meeting under such process.
‘‘(4) PROCESS.—Such process—
‘‘(A) shall be conducted in a timely manner
to ensure that final regulations are issued by
the Secretary not later than 1 year after the
date of the enactment of the No Child Left Be-
hind Act of 2001; and
‘‘(B) shall not be subject to the Federal
Advisory Committee Act but shall otherwise fol-
low the provisions of the Negotiated Rule-
making Act of 1990 (5 U.S.C. 561 et seq.).
‘‘(5) EMERGENCY
SITUATION.—In an emer-
gency situation in which regulations to carry out this
title must be issued within a very limited time to as-
sist State and local educational agencies with the op-
eration of a program under this title, the Secretary
may issue proposed regulations without following
such process but shall, immediately thereafter and
290
prior to issuing final regulations, conduct regional
meetings to review such proposed regulations.
‘‘(c) LIMITATION.—Regulations to carry out this part
may not require local programs to follow a particular in-
structional model, such as the provision of services outside
the regular classroom or school program.
‘‘SEC. 1802. AGREEMENTS AND RECORDS.
‘‘(a) AGREEMENTS.—All published proposed regula-
tions shall conform to agreements that result from nego-
tiated rulemaking described in section 1601 unless the
Secretary reopens the negotiated rulemaking process or
provides a written explanation to the participants involved
in the process explaining why the Secretary decided to de-
part from and not adhere to such agreements.
‘‘(b) RECORDS.—The Secretary shall ensure that an
accurate and reliable record of agreements reached during
the negotiations process is maintained.
‘‘SEC. 1803. STATE ADMINISTRATION.
‘‘(a) RULEMAKING.—
‘‘(1) IN GENERAL.—Each State that receives
funds under this title shall—
‘‘(A) ensure that any State rules, regula-
tions, and policies relating to this title conform
to the purposes of this title and provide any
such proposed rules, regulations, and policies to
291
the committee of practitioners under subsection
(b) for their review and comment;
‘‘(B) minimize such rules, regulations, and
policies to which their local educational agencies
and schools are subject;
‘‘(C) eliminate or modify State and local
fiscal accounting requirements in order to facili-
tate the ability of schools to consolidate funds
under schoolwide programs; and
‘‘(D) identify any such rule, regulation, or
policy as a State-imposed requirement.
‘‘(2) 
SUPPORT
AND
FACILITATION.—State
rules, regulations, and policies under this title shall
support and facilitate local educational agency and
school-level systemic reform designed to enable all
children to meet the challenging State student per-
formance standards.
‘‘(b) COMMITTEE OF PRACTITIONERS.—
‘‘(1) IN
GENERAL.—Each State educational
agency shall create a State committee of practi-
tioners to advise the State in carrying out its re-
sponsibilities under this title.
292
‘‘(2) 
MEMBERSHIP.—Each 
such 
committee
shall include—
‘‘(A) as a majority of its members, rep-
resentatives from local educational agencies;
‘‘(B) administrators, including the admin-
istrators of programs described in other parts
of this title;
‘‘(C) teachers, including vocational edu-
cators;
‘‘(D) parents;
‘‘(E) members of local boards of education;
‘‘(F) representatives of private school chil-
dren; and
‘‘(G) pupil services personnel.
‘‘(3) DUTIES.—The duties of such committee
shall include a review, prior to publication, of any
proposed or final State rule or regulation pursuant
to this title. In an emergency situation where such
rule or regulation must be issued within a very lim-
ited time to assist local educational agencies with
the operation of the program under this title, the
State educational agency may issue a regulation
without prior consultation, but shall immediately
thereafter convene the State committee of practi-
293
tioners to review the emergency regulation prior to
issuance in final form.
‘‘SEC. 1804. LOCAL ADMINISTRATIVE COST LIMITATION.
‘‘(a) LOCAL ADMINISTRATIVE COST LIMITATION.—
Each local educational agency may use not more than 4
percent of funds received under part A for administrative
expenses.
‘‘(b) REGULATIONS.—The Secretary, after consulting
with State and local officials and other experts in school
finance, shall develop and issue regulations that define the
term administrative cost for purposes of this title. Such
definition shall be consistent with generally accepted ac-
counting principles. The Secretary shall publish final regu-
lations on this section not later than 1 year after the date
of the enactment of the No Child Left Behind Act of 2001.
‘‘SEC. 1805. APPLICABILITY.
‘‘Nothing in this title shall be construed to affect
home schools nor shall any home schooled student be re-
quired to participate in any assessment referenced in this
title.
‘‘SEC. 1806. PRIVATE SCHOOLS.
‘‘Nothing in this title shall be construed to affect any
private school that does not receive funds or services under
this title.
294
‘‘SEC. 1807. PRIVACY OF ASSESSMENT RESULTS.
‘‘Any results from individual assessments referenced
in this title which become part of the education records
of the student shall have the protections as provided in
section 444 of the General Education Provisions Act.’’.
TITLE 
II—PREPARING, 
TRAIN-
ING, AND RECRUITING QUAL-
ITY TEACHERS
SEC. 201. TEACHER QUALITY TRAINING AND RECRUITING
FUND; TEACHER LIABILITY.
Title II (20 U.S.C. 6601 et seq.) is amended to read
as follows:
‘‘TITLE II—PREPARING, TRAIN-
ING, AND RECRUITING QUAL-
ITY TEACHERS
‘‘PART A—TEACHER QUALITY TRAINING AND
RECRUITING FUND
‘‘SEC. 2001. PURPOSE.
‘‘The purpose of this part is to provide grants to
States and local educational agencies in order to assist
their efforts to increase student academic achievement
through such strategies as improving teacher quality and
increasing the number of highly qualified teachers in the
classroom.
295
‘‘Subpart 1—Grants to States to Prepare, Train, and
Recruit Qualified Teachers
‘‘SEC. 2011. FORMULA GRANTS TO STATES.
‘‘(a) IN GENERAL.—In the case of each State that
in accordance with section 2013 submits to the Secretary
an application for a fiscal year, the Secretary shall make
a grant for the year to the State for the uses specified
in section 2012. The grant shall consist of the allotment
determined for the State under subsection (b).
‘‘(b) DETERMINATION
OF
AMOUNT
OF
ALLOT-
MENT.—
‘‘(1) RESERVATION
OF
FUNDS.—From the
amount made available to carry out this subpart for
any fiscal year, the Secretary shall reserve—
‘‘(A) 1⁄2 of 1 percent for allotments for the
Virgin Islands, Guam, American Samoa, and
the Commonwealth of the Northern Mariana Is-
lands, to be distributed among these outlying
areas on the basis of their relative need, as de-
termined by the Secretary in accordance with
the purpose of this part; and
‘‘(B) 1⁄2 of 1 percent for the Secretary of
the Interior for programs under this part for
professional development activities for teachers,
other staff, and administrators in schools oper-
ated or funded by the Bureau of Indian Affairs.
296
‘‘(2) STATE ALLOTMENTS.—
‘‘(A) HOLD HARMLESS.—
‘‘(i) IN
GENERAL.—Subject to sub-
paragraph (B), from the total amount
made available to carry out this subpart
for any fiscal year and not reserved under
paragraph (1), the Secretary shall allot to
each of the 50 States, the District of Co-
lumbia, and the Commonwealth of Puerto
Rico an amount equal to the total amount
that such State received for fiscal year
2001 under—
‘‘(I) section 2202(b) of this Act
(as in effect on the day before the
date of the enactment of the No Child
Left Behind Act of 2001); and
‘‘(II) section 306 of the Depart-
ment of Education Appropriations
Act, 2001 (as enacted into law by sec-
tion 1(a)(1) of Public Law 106–554).
‘‘(ii) NONPARTICIPATING STATES.—In
the case of a State that did not receive any
funds for fiscal year 2001 under one or
both of the provisions referred to in sub-
clauses (I) and (II) of clause (i), the
297
amount allotted to the State under such
clause shall be the total amount that the
State would have received for fiscal year
2001 if it had elected to participate in all
of the programs for which it was eligible
under each of the provisions referred to in
such subclauses.
‘‘(iii) RATABLE
REDUCTION.—If the
total amount made available to carry out
this subpart for any fiscal year and not re-
served under paragraph (1) is insufficient
to pay the full amounts that all States are
eligible to receive under clause (i) for any
fiscal year, the Secretary shall ratably re-
duce such amounts for such fiscal year.
‘‘(B) 
ALLOTMENT
OF
ADDITIONAL
FUNDS.—
‘‘(i) IN GENERAL.—Subject to clause
(ii), for any fiscal year for which the total
amount made available to carry out this
subpart and not reserved under paragraph
(1) exceeds the total amount made avail-
able to the 50 States, the District of Co-
lumbia, and the Commonwealth of Puerto
Rico for fiscal year 2001 under the au-
298
thorities described in subparagraph (A)(i),
the Secretary shall allot such excess
amount as follows:
‘‘(I) 50 percent of such excess
amount shall be allotted among such
States on the basis of their relative
populations of individuals aged 5
through 17, as determined by the Sec-
retary on the basis of the most recent
satisfactory data.
‘‘(II) 50 percent of such excess
amount shall be allotted among such
States in proportion to the number of
children, aged 5 to 17, who reside
within the State from families with in-
comes below the poverty line (as de-
fined by the Office of Management
and Budget and revised annually in
accordance with section 673(2) of the
Community Services Block Grant Act
(42 U.S.C. 9902(2)) applicable to a
family of the size involved for the
most recent fiscal year for which sat-
isfactory data are available, compared
to the number of such individuals who
299
reside in all such States for that fiscal
year.
‘‘(ii) EXCEPTION.—No State receiving
an allotment under clause (i) may receive
less than 1⁄2 of 1 percent of the total ex-
cess amount allotted under clause (i).
‘‘(3) REALLOTMENT.—If any State does not
apply for an allotment under this subsection for any
fiscal year, the Secretary shall reallot such amount
to the remaining States in accordance with this sub-
section.
‘‘SEC. 2012. WITHIN-STATE ALLOCATIONS.
‘‘(a) USE OF FUNDS.—Each State receiving a grant
under this subpart shall use the funds provided under the
grant in accordance with this section to carry out activities
for the improvement of teaching and learning.
‘‘(b) RESERVATION OF FUNDS.—
‘‘(1) IN
GENERAL.—A State that receives a
grant under this subpart may reserve not more than
5 percent of the amount of the funds provided under
the grant for—
‘‘(A) one or more of the authorized State
activities described in subsection (e); and
‘‘(B) planning and administration related
to carrying out such activities and making sub-
300
grants to local educational agencies under sub-
parts 2 and 3.
‘‘(2) LIMITATION ON ADMINISTRATIVE COSTS.—
The amount reserved by a State under paragraph
(1)(B) may not exceed 2 percent of the total amount
authorized to be reserved under paragraph (1).
‘‘(c) MATH AND SCIENCE PARTNERSHIPS.—The Sec-
retary may make a grant to a State under this subpart
only if the State agrees to distribute at least 15 percent
of the amount of the funds provided under the grant and
not reserved under subsection (b) through a competitive
subgrant process in accordance with subpart 2.
‘‘(d) SUBGRANTS TO LOCAL EDUCATIONAL AGEN-
CIES.—
‘‘(1) IN GENERAL.—The Secretary may make a
grant to a State under this subpart only if the State
agrees to expend at least 85 percent of the amount
of the funds provided under the grant and not re-
served under subsection (b) for the purpose of mak-
ing subgrants to local educational agencies under
subpart 3.
‘‘(2) FORMULA
FOR
DISTRIBUTION
OF
SUB-
GRANTS UNDER SUBPART 3.—A State receiving a
grant under this subpart shall distribute the amount
301
described in paragraph (1) through a formula under
which—
‘‘(A) 50 percent is allocated to local edu-
cational agencies in accordance with the relative
enrollment in public and private nonprofit ele-
mentary and secondary schools within the
boundaries of such agencies; and
‘‘(B) 50 percent is allocated to local edu-
cational agencies in proportion to the number of
children, aged 5 to 17, who reside within the
geographic area served by such agency from
families with incomes below the poverty line (as
defined by the Office of Management and
Budget and revised annually in accordance with
section 673(2) of the Community Services
Block Grant Act (42 U.S.C. 9902(2))) applica-
ble to a family of the size involved for the most
recent fiscal year for which satisfactory data
are available, compared to the number of such
individuals who reside in the geographic areas
served by all the local educational agencies in
the State for that fiscal year.
‘‘(e) AUTHORIZED STATE ACTIVITIES.—The author-
ized State activities referred to in subsection (b)(1)(A) are
the following:
302
‘‘(1) Reforming teacher certification, recertifi-
cation, or licensure requirements to ensure that—
‘‘(A) teachers have the necessary teaching
skills and academic content knowledge in the
subject areas in which they are assigned to
teach;
‘‘(B) teacher certification, recertification,
or licensure requirements are aligned with the
State’s challenging State content standards;
and
‘‘(C) teachers have the knowledge and
skills necessary to help students meet chal-
lenging State student achievement standards.
‘‘(2) Carrying out programs that—
‘‘(A) include support during the initial
teaching experience, such as mentoring pro-
grams that—
‘‘(i) provide mentoring to beginning
teachers from veteran teachers with exper-
tise in the same subject matter that the
beginning teachers will be teaching;
‘‘(ii) provide mentors time for activi-
ties such as coaching, observing, and as-
sisting the teachers who are mentored; and
303
‘‘(iii) use standards or assessments
for guiding beginning teachers that are
consistent with the State’s student achieve-
ment standards and with the requirements
for 
professional 
development 
activities
under section 2033; and
‘‘(B) establish, expand, or improve alter-
native routes to State certification of teachers,
especially in the areas of mathematics and
science, for highly qualified individuals with a
baccalaureate degree, including mid-career pro-
fessionals from other occupations, paraprofes-
sionals, former military personnel, and recent
college or university graduates with records of
academic distinction who demonstrate the po-
tential to become highly effective teachers.
‘‘(3) Developing and implementing effective
mechanisms to assist local educational agencies and
schools in effectively recruiting and retaining highly
qualified and effective teachers and principals.
‘‘(4) Reforming tenure systems and imple-
menting teacher testing and other procedures to ex-
peditiously remove incompetent and ineffective
teachers from the classroom.
304
‘‘(5) Developing enhanced performance systems
to measure the effectiveness of specific professional
development programs and strategies.
‘‘(6) Providing technical assistance to local edu-
cational agencies consistent with this part.
‘‘(7) Funding projects to promote reciprocity of
teacher certification or licensure between or among
States, except that no reciprocity agreement devel-
oped under this paragraph or developed using funds
provided under this part may lead to the weakening
of any State teaching certification or licensing re-
quirement.
‘‘(8) Developing or assisting local educational
agencies or eligible partnerships (as defined in sec-
tion 2026) in the development and utilization of
proven, innovative strategies to deliver intensive pro-
fessional development programs that are both cost-
effective and easily accessible, such as through the
use of technology and distance learning.
‘‘(9) Providing assistance to local educational
agencies and eligible partnerships (as defined in sec-
tion 2026) for the development and implementation
of innovative professional development programs
that train teachers to use technology to improve
336
‘‘(4) is unable to secure employment for a pe-
riod not to exceed 12 months by reason of the care
required by a spouse who is disabled;
‘‘(5) is seeking and unable to find full-time em-
ployment as a teacher in an elementary or secondary
school or as a vocational or technical teacher for a
single period not to exceed 27 months; or
‘‘(6) satisfies the provisions of additional reim-
bursement exceptions that may be prescribed by the
Secretary.
‘‘(c) STIPEND FOR PARTICIPANTS.—
‘‘(1) STIPEND AUTHORIZED.—Subject to para-
graph (2), the Secretary may pay to a participant in
the Troops-to-Teachers Program selected under sec-
tion 2042 a stipend in an amount up to $5,000.
‘‘(2) LIMITATION.—The total number of sti-
pends that may be paid under paragraph (1) in any
fiscal year may not exceed 3,000.
‘‘(d) BONUS FOR PARTICIPANTS.—
‘‘(1) BONUS
AUTHORIZED.—Subject to para-
graph (2), the Secretary may, in lieu of paying a sti-
pend under subsection (c), pay a bonus of $10,000
to a participant in the Troops-to-Teachers Program
selected under section 2042 who agrees in the par-
ticipation agreement under subsection (a) to accept
401
‘‘(4) integrated educational services in combina-
tion with other programs that meet the needs of In-
dian children and their families;
‘‘(5) career preparation activities to enable In-
dian students to participate in programs such as the
programs supported by the Carl D. Perkins Voca-
tional and Technical Education Act of 1998, includ-
ing programs for tech-prep, mentoring, and appren-
ticeship;
‘‘(6) activities to educate individuals concerning
substance abuse and to prevent substance abuse;
‘‘(7) the acquisition of equipment, but only if
the acquisition of the equipment is essential to meet
the purposes described in section 3211; and
‘‘(8) family literacy services.
‘‘(c) 
SCHOOLWIDE
PROGRAMS.—Notwithstanding
any other provision of law, a local educational agency may
use funds made available to such agency under this chap-
ter to support a schoolwide program under section 1114
if—
‘‘(1) the committee composed of parents estab-
lished pursuant to section 3214(c)(4) approves the
use of the funds for the schoolwide program; and
‘‘(2) the schoolwide program is consistent with
the purposes described in section 3211.