(v), (vi), and (viii) as clauses (i) through
(iv), respectively;
(iii) in clause (i) (as so redesignated),
by striking ‘‘, and academic, curricula in
vocational and technical education pro-
grams,’’ and inserting ‘‘education (such as
meeting State established teacher certifi-
cation or licensing requirements)’’; and
(iv) in clause (ii) (as so redesig-
nated)—
(I) by striking ‘‘and employment
outcomes’’ 
and 
all 
that 
follows
through ‘‘including analyses of’’ and
inserting ‘‘and vocational and tech-
nical education achievement and em-
ployment outcomes of vocational and
technical education students, includ-
ing analyses of’’;
(II) in subclause (I), by striking
‘‘and tech-prep students’’ and insert-
ing ‘‘and students participating in the
activities 
described 
in 
section
135(b)(3)’’;
(III) in subclause (II), by strik-
ing ‘‘academic, and vocational and
technical, education’’ and inserting
‘‘rigorous and challenging academic
and vocational and technical edu-
cation, including a review of the effect
of integrated rigorous and challenging
academic and vocational and technical
education on the achievement of stu-
dents’’; and
(IV) in subclause (III), by insert-
ing ‘‘, particularly those in which
math and science skills are critical,’’
after ‘‘high-skill careers’’; and
(C) in subparagraph (C)—
(i) in clause (i)—
(I) by striking ‘‘the Committee
on Education and the Workforce of
the House of Representatives and the
Committee on Labor and Human Re-
sources of the Senate’’ and inserting
‘‘Congress’’; and
(II) by striking ‘‘2002’’ and in-
serting ‘‘2009’’ both places it appears;
and
(ii) in clause (ii), by striking ‘‘the
Committee on Education and the Work-
force of the House of Representatives, the
Committee on Labor and Human Re-
sources of the Senate,’’ and inserting
‘‘Congress’’;
(3) in paragraph (5)(A)—
(A) by striking ‘‘to carry out research’’
each place it appears, and inserting ‘‘to carry
out scientifically based research’’;
(B) in clause (i), by inserting ‘‘scientif-
ically based’’ after ‘‘programs, including’’;
(C) in clause (ii), by inserting ‘‘that are in-
tegrated with rigorous and challenging aca-
demic education’’ after ‘‘implementation of vo-
cational and technical education programs’’;
and
(D) in clause (iii)(I), by inserting ‘‘and the
integration of those systems with the academic
education system’’ after ‘‘technical education
systems’’;
(4) in paragraph (6)—
(A) by striking:
‘‘(6) DEMONSTRATIONS AND DISSEMINATION.—
‘‘(A) DEMONSTRATION
PROGRAM.—The’’,
and inserting:
‘‘(6) DEMONSTRATIONS AND DISSEMINATION.—
The’’; and
(B) by striking subparagraph (B); and
(5) in paragraph (8), by striking ‘‘this section’’
and all that follows and inserting ‘‘subsections (a),
(b), and (c) of this section, such sums as may be
necessary for each of fiscal years 2006 through
2011.’’.
(c) INCENTIVE GRANTS FOR ELIGIBLE AGENCIES.—
Section 114 is further amended by adding at the end the
following new subsection:
‘‘(d) INCENTIVE GRANTS
FOR ELIGIBLE AGEN-
CIES.—
‘‘(1) IN GENERAL.—From funds reserved under
section 111(a)(1)(C), the Secretary may award
grants to eligible agencies for exemplary perform-
ance in carrying out programs under this Act. Such
awards shall be based on an eligible agency exceed-
ing State adjusted levels of performance established
under section 113(b) and showing sustained or sig-
nificant improvement.
‘‘(2) SPECIAL
CONSIDERATION.—In awarding
these grants, the Secretary may consider—
‘‘(A) an eligible agency’s success in effec-
tively developing connections between secondary
education and postsecondary education and
training;
‘‘(B) an eligible agency’s integration of rig-
orous and challenging academic and technical
coursework; and
‘‘(C) an eligible agency’s progress in hav-
ing special populations participating in voca-
tional and technical education meet State ad-
justed levels of performance.
‘‘(3) USE OF FUNDS.—The funds awarded to
an eligible agency under this subsection may be used
to carry out any activities authorized under section
124, including demonstrations of innovative pro-
grams.’’.
SEC. 10. OUTLYING AREAS, NATIVE AMERICAN PROGRAMS,
AND TRIBALLY CONTROLLED INSTITUTIONS.
(a) ASSISTANCE FOR THE OUTLYING AREAS.—Sec-
tion 115 (20 U.S.C. 2325) is amended to read as follows:
‘‘SEC. 115. ASSISTANCE FOR THE OUTLYING AREAS.
‘‘(a) OUTLYING AREAS.—From funds reserved pur-
suant to section 111(a)(1)(A), the Secretary shall—
‘‘(1) make a grant in the amount of $660,000
to Guam;
‘‘(2) make a grant in the amount of $350,000
to each of American Samoa and the Commonwealth
of the Northern Mariana Islands; and
‘‘(3) make a grant in the amount of $160,000
to the Republic of Palau.
‘‘(b) REMAINDER.—Subject to the provisions of sub-
section (a), the Secretary shall make a grant of the re-
mainder 
of 
funds 
reserved 
pursuant 
to 
section
111(a)(1)(A), in equal proportion, to each of Guam,
American Samoa, and the Commonwealth of the Northern
Mariana Islands, for the purpose of providing direct voca-
tional and technical educational services, including—
‘‘(1) teacher and counselor training and retrain-
ing;
‘‘(2) curriculum development; and
‘‘(3) the improvement of vocational and tech-
nical education and training programs in secondary
schools and institutions of higher education, or im-
proving cooperative education programs involving
both secondary schools and institutions of higher
education.
‘‘(c) RESTRICTION.—The Republic of Palau shall
cease to be eligible to receive funding under this section
upon entering into an agreement for extension of United
States educational assistance under the Compact of Free
Association after the date of enactment of the Vocational
and Technical Education for the Future Act.’’.
(b) NATIVE AMERICAN PROGRAM.—Section 116 (20
U.S.C. 2326) is amended—
(1) in subsection (a), by inserting a period at
the end of paragraph (5); and
(2) in subsection (b)—
(A) in paragraph (1), by striking ‘‘sub-
section (d)’’ and inserting ‘‘subsection (c)’’; and
(B) in paragraph (2), by striking ‘‘(other
than in subsection (i))’’.
(c) TRIBALLY CONTROLLED INSTITUTIONS.—Section
117 (20 U.S.C. 2327) is amended—
(1) by amending subsection (b) to read as fol-
lows:
‘‘(b) USES OF GRANTS.—Amounts made available
under this section shall be used for vocational and tech-
nical education programs for Indian students and for in-
stitutional support costs of the grant, including the ex-
penses described in subsection (e).’’;
(2) in subsection (c), by inserting after para-
graph (2) the following:
‘‘(3) INDIRECT
COSTS.—Notwithstanding any
other provision of law or regulation, the Secretary
shall not require the use of a restricted indirect cost
rate for grants issued under this section.’’;
(3) by striking subsection (g) and redesignating
subsections (h) and (i) as subsections (g) and (h),
respectively; and
(4) in subsection (h) (as so redesignated)—
(A) by striking ‘‘$4,000,000 for fiscal year
1999 and’’; and
(B) by striking ‘‘the 4 succeeding fiscal
years’’ and inserting ‘‘fiscal years 2006 through
2011’’.
(d) OCCUPATIONAL
AND EMPLOYMENT INFORMA-
TION.—Section 118 (20 U.S.C. 2328) is amended—
(1) by amending subsection (b) to read as fol-
lows:
‘‘(b) STATE LEVEL ACTIVITIES.—
‘‘(1) DESIGNATED
ENTITY.—In order for a
State to receive a grant under this section, the eligi-
ble agency and the Governor of the State shall joint-
ly designate an entity in the State responsible for
conducting the activities in this subsection.
‘‘(2) APPLICATION.—The jointly designated
agency shall submit an application to the Secretary
at the same time the State submits its state plan
under section 122. The application shall be in such
a manner and be accompanied by such information
as the Secretary may reasonably require. At a min-
imum, the application shall describe how the jointly
designated agency will assist the eligible agency in
meeting its adjusted levels of performance under sec-
tion 113(b).
‘‘(3) ACTIVITIES.—The jointly designated agen-
cy shall conduct activities—
‘‘(A) to provide support for career guid-
ance and academic counseling programs de-
signed to promote improved career and edu-
cation decision making by students (and par-
ents, as appropriate) regarding education and
training options and preparations for high skill,
high wage occupations;
‘‘(B) to make available to students, par-
ents, teachers, administrators, and counselors,
and improve accessibility to, information and
planning resources that relate academic and vo-
cational and technical educational preparation
to career goals and expectations;
‘‘(C) to equip teachers, administrators, and
counselors with the knowledge, skills, and occu-
pational information needed to assist students
and parents with educational and other postsec-
ondary opportunities and education financing;
‘‘(D) to assist appropriate State entities in
tailoring resources and training for use by such
entities;
‘‘(E) to improve coordination and commu-
nication among administrators and planners of
programs authorized by this Act and by section
15 of the Wagner-Peyser Act (29 U.S.C. 49l–
2) at the Federal, State, and local levels to en-
sure nonduplication of efforts and the appro-
priate use of shared information and data; and
‘‘(F) to provide ongoing means for cus-
tomers, such as students and parents, to pro-
vide comments and feedback on products and
services and to update resources, as appro-
priate, to better meet customer requirements.’’;
(2) in subsection (e)(1), by striking ‘‘an identi-
fication’’ and inserting ‘‘a description’’; and
(3) in subsection (f), by striking ‘‘1999 through
2003’’ and inserting ‘‘2006 through 2011’’.
SEC. 11. STATE ADMINISTRATION.
Section 121 (20 U.S.C. 2341) is amended to read as
follows:
‘‘SEC. 121. STATE ADMINISTRATION.
‘‘(a) ELIGIBLE AGENCY RESPONSIBILITIES.—The re-
sponsibilities of an eligible agency under this title shall
include—
‘‘(1) coordination of the development, submis-
sion, and implementation of the State plan, and the
evaluation of the program, services, and activities as-
sisted under this title, including preparation for non-
traditional fields;
‘‘(2) consultation with the Governor and appro-
priate agencies, groups, and individuals including
parents, students, teachers, representatives of busi-
nesses, labor organizations, eligible recipients, State
and local officials, and local program administrators,
involved in the planning, administration, evaluation,
and coordination of programs funded under this
title;
‘‘(3) convening and meeting as an eligible agen-
cy (consistent with State law and procedure for the
conduct of such meetings) at such time as the eligi-
ble agency determines necessary to carry out the eli-
gible agency’s responsibilities under this title, but
not less than four times annually; and
‘‘(4) the adoption of such procedures as the eli-
gible agency considers necessary to—
‘‘(A) implement State level coordination
with the activities undertaken by the State
boards under section 111 of Public Law 105–
220; and
‘‘(B) make available to the service delivery
system under section 121 of Public Law 105–
220 within the State a listing of all school drop-
out, postsecondary, and adult programs assisted
under this title.
‘‘(b) EXCEPTION.—Except with respect to the re-
sponsibilities set forth in subsection (a), the eligible agen-
cy may delegate any of the other responsibilities of the
eligible agency that involve the administration, operation,
supervision of activities assisted under this title, in whole
or in part, to one or more appropriate State agencies.’’.
SEC. 12. STATE PLAN.
Section 122 (20 U.S.C. 2342) is amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking ‘‘5-year
period’’ and inserting ‘‘6-year period’’;
(B) in paragraph (2)(B), by striking ‘‘5
year State plan’’ and inserting ‘‘6-year period’’;
and
(C) in paragraph (3), by striking ‘‘(includ-
ing employers, labor organizations, and par-
ents)’’ and inserting ‘‘(including charter school
authorizers and organizers, employers, labor or-
ganizations, parents, students, and community
organizations)’’;
(2) in subsection (b)(1), by striking ‘‘teachers,
eligible recipients, parents, students, interested com-
munity members’’ and inserting ‘‘academic and vo-
cational and technical education teachers, eligible re-
cipients, charter school authorizers and organizers,
parents, students, interested community members
(including parent and community organizations), in-
stitutions of higher education’’;
(3) in subsection (c)—
(A) in paragraph (1)—
(i) by redesignating subparagraphs
(A) through (D) as subparagraphs (B)
through (E), respectively, and inserting be-
fore such subparagraphs (as so redesig-
nated) the following:
‘‘(A) the development of model sequences
of courses for vocational and technical content
areas that—
‘‘(i) incorporate both secondary and
postsecondary education elements;
‘‘(ii) include rigorous and challenging
academic content and vocational and tech-
nical content in a coordinated, nonduplica-
tive progression of courses that align sec-
ondary education with postsecondary edu-
cation to adequately prepare sudents to
succeed in postsecondary education;
‘‘(iii) lead to a postsecondary 1-year
certificate, associate or baccalaureate de-
gree, or a proficiency credential in conjunc-
tion with a secondary school diploma; and
‘‘(iv) may be adopted by local edu-
cational agencies and postsecondary insti-
tutions to be offered as an option to stu-
dents (and their parents as appropriate),
when choosing future coursework;’’;
(ii) in subparagraph (B) (as so redes-
ignated), by inserting ‘‘and how the eligible
agency will distribute information identi-
fying eligible recipients that offer elements
of the model sequences of courses’’ before
the semicolon;
(iii) by amending subparagraph (C)
(as so redesignated) to read as follows:
‘‘(C) the criteria that will be used by the
eligible agency to evaluate and approve eligible
recipients for funds under this title, including
criteria to assess the extent to which the local
plan will promote continuous and substantial
improvement in academic achievement and tech-
nical skill attainment;’’;
(iv) in subparagraph (D) (as so redes-
ignated)—
(I) by inserting ‘‘, both academi-
cally and technically,’’ after ‘‘stu-
dents’’; and
(II) by striking ‘‘; and’’ and in-
serting ‘‘, and how participating stu-
dents will be made aware of such op-
portunities;’’;
(v) in subparagraph (E) (as so redes-
ignated), by inserting ‘‘aligned with rig-
orous and challenging academic content’’
before the semicolon; and
(vi) by inserting after subparagraph
(E) (as so redesignated) the following:
‘‘(F) the process through which the eligible
agency will develop the secondary or postsec-
ondary elements of the model sequences of
courses described in subparagraph (A);
‘‘(G) the role that any eligible recipients
successfully implementing the activities de-
scribed in section 135(b)(3) will play in assist-
ing other eligible recipients in establishing
agreements and plans for coordinating the of-
fering of model sequences of courses to students
at both the secondary and postsecondary levels;
‘‘(H) how funds will be used effectively to
link secondary and postsecondary academic and
vocational and technical education in a manner
that increases student academic and vocational
and technical achievement; and
‘‘(I) how the eligible agency will report the
integration of rigorous and challenging aca-
demics in vocational and technical education
programs in order to adequately evaluate the
quality of such integration;’’;
(B) by amending paragraph (2) to read as
follows:
‘‘(2) describes how comprehensive professional
development (including initial teacher preparation
and activities that support recruitment) for voca-
tional and technical, academic, guidance, and admin-
istrative personnel will be provided, especially profes-
sional development that—
‘‘(A) promotes the integration of rigorous
and challenging academic and vocational and
technical education curriculum development;
‘‘(B) increases the percentage of teachers
that meet teacher certification or licensing re-
quirements;
‘‘(C) increases the academic and industry
knowledge of vocational and technical education
teachers; and
‘‘(D) encourages applied learning that con-
tributes to the academic and vocational and
technical knowledge of the student;’’;
(C) in paragraph (3), by inserting ‘‘aca-
demic and vocational and technical’’ after ‘‘par-
ents,’’;
(D) in paragraph (5)(A)—
(i) by inserting ‘‘(especially as per-
taining to math, science, and technology)’’
after ‘‘academic and technical skills’’; and
(ii) by striking ‘‘core academic, and
vocational and technical, subjects’’ and in-
serting ‘‘core academic subjects (as defined
in section 9101(11) of the Elementary and