Secretary and each eligible agency 
shall reach agreement on the State ad-
justed levels of performance for each of 
the core indicators of performance for 
the fifth and sixth programs years cov-
ered by the State plan, taking into ac-
count the factors described in clause 
(vi). 
‘‘(III) 
AGREEMENTS
INCOR-
PORATED
INTO
STATE
PLAN.—The 
State adjusted levels of performance 
agreed to under this clause shall be 
considered the State adjusted levels of 
performance for the State for such 
years and shall be incorporated into 
the State plan.’’; 
(iii) in clause (vi)(II), by inserting 
‘‘and substantial’’ after ‘‘continuous’’; and 
(iv) in clause (vii)—
(I) by striking ‘‘clause (vi)(II)’’ 
and inserting ‘‘clause (vi)’’; and 
(II) by striking ‘‘under clause 
(iii) or (vi)’’ and inserting ‘‘under 
clause (iii) or (v)’’.
(c) LOCAL
LEVELS
OF
PERFORMANCE.—Section 
113(b) is further amended by adding at the end the fol-
lowing: 
‘‘(4) LOCAL LEVELS OF PERFORMANCE.—
‘‘(A) LOCAL
ADJUSTED
LEVELS
OF
PER-
FORMANCE FOR CORE INDICATORS OF PERFORM-
ANCE.—
‘‘(i) IN
GENERAL.—Each eligible re-
cipient shall establish in the local plan sub-
mitted under section 134, levels of perform-
ance for each of the core indicators of per-
formance described in paragraph (2)(A) 
and (B), as appropriate for the eligible re-
cipient, for vocational and technical edu-
cation activities authorized under this title. 
The levels of performance established under 
this subparagraph shall, at a minimum—
‘‘(I) be expressed in a percentage 
or numerical form, so as to be objec-
tive, quantifiable, and measurable; and 
‘‘(II) require the eligible recipient 
to make continuous and substantial 
improvement in the academic and vo-
cational and technical achievement of
vocational and technical education stu-
dents. 
‘‘(ii) IDENTIFICATION
IN
THE
LOCAL 
PLAN.—Each eligible recipient shall iden-
tify, in the local plan submitted under sec-
tion 134, levels of performance for each of 
the core indicators of performance for the 
first 2 program years covered by the local 
plan. 
‘‘(iii) AGREEMENT
ON
LOCAL
AD-
JUSTED
LEVELS
OF
PERFORMANCE
FOR 
FIRST 2 YEARS.—The eligible agency and 
each eligible recipient shall reach agreement 
on the levels of performance for each of the 
core indicators of performance, for the first 
2 program years covered by the local plan, 
taking into account the levels identified in 
the local plan under clause (ii) and the fac-
tors described in clause (v). The levels of 
performance agreed to under this clause 
shall be considered to be the local adjusted 
level of performance for the eligible recipient 
for such years and shall be incorporated 
into the local plan prior to the approval of 
such plan.
‘‘(iv) AGREEMENT
ON
LOCAL
AD-
JUSTED
LEVELS
OF
PERFORMANCE
FOR 
SUBSEQUENT YEARS.— 
‘‘(I) 3RD
AND
4TH
PROGRAM 
YEARS.—Prior to the third program 
year covered by the local plan, the eli-
gible agency and each eligible recipient 
shall reach agreement on the local ad-
justed levels of performance for each of 
the core indicators of performance for 
the third and fourth program years 
covered by the local plan, taking into 
account the factors described in clause 
(v). 
‘‘(II) 5TH
AND
6TH
PROGRAM 
YEARS.—Prior to the fifth program 
year covered by the local plan, the eli-
gible agency and each eligible recipient 
shall reach agreement on the local ad-
justed levels of performance for each of 
the core indicators of performance for 
the fifth and sixth program years cov-
ered by the local plan, taking into ac-
count the factors described in clause 
(v).
‘‘(III) 
AGREEMENTS
INCOR-
PORATED INTO LOCAL PLAN.—The local 
adjusted levels of performance agreed to 
under this clause shall be considered to 
be the local adjusted levels of perform-
ance for the eligible recipient for such 
years and shall be incorporated into 
the local plan. 
‘‘(v) FACTORS.—The agreement de-
scribed in clause (iii) or (iv) shall take into 
account—
‘‘(I) how the levels of performance 
involved compare with the local ad-
justed levels of performance established 
for other eligible recipients taking into 
account factors including the charac-
teristics of participants when the par-
ticipants entered the program and the 
services or instruction to be provided; 
and 
‘‘(II) the extent to which such lev-
els of performance promote continuous 
and substantial improvement on the 
indicators of performance by such eli-
gible recipient.
‘‘(vi) 
REVISIONS.—If 
unanticipated 
circumstances arise with respect to an eligi-
ble recipient resulting in a significant 
change in the factors described in clause (v), 
the eligible recipient may request that the 
local adjusted levels of performance agreed 
to under clause (iii) or (iv) be revised. The 
eligible agency shall issue objective criteria 
and methods for making such revisions. 
‘‘(B) LEVELS OF PERFORMANCE FOR ADDI-
TIONAL
INDICATORS.—Each eligible recipient 
may identify in the local plan, local levels of 
performance for any additional indicators of 
performance. Such levels shall be considered to be 
the local levels of performance for purposes of 
this title. 
‘‘(C) LOCAL REPORT.—
‘‘(i) CONTENT OF REPORT.—Each eli-
gible recipient that receives an allotment 
under section 111 shall annually prepare 
and submit to the eligible agency a report 
regarding—
‘‘(I) the progress of such recipient 
in achieving the local adjusted levels of
performance on the core indicators of 
performance; and 
‘‘(II) in the case of an eligible re-
cipient that receives funds described in 
section 112(a) for activities described 
in section 135(b)(3), the progress in 
achieving the local adjusted levels of 
performance on the core indicators of 
performance with respect to tech-prep 
program participants. 
‘‘(ii) DATA.—Each eligible recipient 
shall—
‘‘(I) disaggregate data for each of 
the indicators of performance under 
section 113(b)(2) for the categories of 
students enumerated under section 
1111(b)(2)(C)(v)(II) of the Elementary 
and Secondary Education Act of 1965 
that are served under this Act; and 
‘‘(II) identify and quantify any 
disparities or gaps in performance be-
tween any such category of students 
and the performance of all students 
served by the eligible recipient under 
the Act.
‘‘(iii) RULES
FOR
REPORTING
OF 
DATA.—The disaggregation of data under 
clause (ii) shall be required except in a case 
in which the number of students in a cat-
egory is insufficient to yield statistically re-
liable information or in which the results 
would reveal personally identifiable infor-
mation about an individual student. 
‘‘(iv) AVAILABILITY.—The report de-
scribed in clause (i) shall be made available 
to the public through a variety of formats, 
including electronically through the Inter-
net.’’. 
(d) STATE
REPORT.—Section 113(c) (20 U.S.C. 
2323(c)) is amended—
(1) by redesignating paragraphs (2) and (3) as 
paragraphs (4) and (5), respectively, and inserting 
after paragraph (1) the following: 
‘‘(2) DATA.—Each eligible agency under this 
subsection shall—
‘‘(A) disaggregate data for each of the indi-
cators of performance under section 113(b)(2) for 
the categories of students enumerated under sec-
tion 1111(b)(2)(C)(v)(II) of the Elementary and
Secondary Education Act of 1965 that are served 
under this Act; and 
‘‘(B) identify and quantify any disparities 
or gaps in performance between any such cat-
egory of students and the performance of all stu-
dents served by the eligible agency under the Act. 
‘‘(3) RULES
FOR
REPORTING
OF
DATA.—The 
disaggregation of data under paragraph (2) shall be 
required except in a case in which the number of stu-
dents in a category is insufficient to yield statis-
tically reliable information or in which the results 
would reveal personally identifiable information 
about an individual student.’’; and 
(2) in paragraph (4) (as so redesignated)—
(A) by striking ‘‘special populations’’ and 
inserting ‘‘each of the populations described in 
section 3(25) and the populations described in 
section 1111(h)(1)(C)(i) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 
6311(h)(1)(C)(i))’’; and 
(B) by striking ‘‘have made’’ and inserting 
‘‘has made’’.
SEC. 9. NATIONAL ACTIVITIES. 
(a) PROGRAM PERFORMANCE INFORMATION.—Section 
114(a)(3) (20 U.S.C. 2324(a)(3)) is amended by inserting 
‘‘in the aggregate’’ after ‘‘international comparisons’’. 
(b) EVALUATION AND ASSESSMENT.—Section 114(c) 
(20 U.S.C. 2324(c)) is amended—
(1) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) INDEPENDENT ADVISORY PANEL.—The Sec-
retary shall appoint an independent advisory panel, 
consisting of academic and vocational and technical 
education educators, administrators, experts in eval-
uation, research, and assessment, representatives of 
labor organizations, businesses, parents, guidance and 
counseling professionals, and other individuals with 
relevant expertise, to advise the Secretary on the im-
plementation of the assessment described in para-
graph (3), including the issues to be addressed and 
the methodology of the studies involved to ensure the 
assessment adheres to the highest standards of quality. 
The advisory panel shall transmit to the Secretary 
and to Congress an independent analysis of the find-
ings and recommendations resulting from such assess-
ment. The Federal Advisory Committee Act (5 U.S.C. 
App.) shall not apply to the panel established under 
this subsection.’’;
(2) in paragraph (3)—
(A) in subparagraph (A), by inserting ‘‘the 
implementation of the’’ after ‘‘and assessment 
of’’; 
(B) in subparagraph (B)—
(i) by inserting ‘‘but shall not be lim-
ited to’’ after ‘‘paragraph (1) shall include’’; 
(ii) by striking clauses (i), (ii), (iv), 
and (vii) and redesignating clauses (iii), 
(v), (vi), and (viii) as clauses (i) through 
(iv), respectively; 
(iii) in clause (i) (as so redesignated), 
by striking ‘‘, and academic, curricula in 
vocational and technical education 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 technical edu-
cation achievement and employment 
outcomes of vocational and technical
education students, including analyses 
of’’; 
(II) in subclause (I), by striking 
‘‘and tech-prep students’’ and inserting 
‘‘and students participating in the ac-
tivities described in section 135(b)(3)’’; 
(III) in subclause (II), by striking 
‘‘academic, and vocational and tech-
nical, education’’ and inserting ‘‘rig-
orous and challenging academic and 
vocational and technical education, in-
cluding a review of the effect of inte-
grated rigorous and challenging aca-
demic 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 Com-
mittee on Labor and Human Resources 
of the Senate’’ and inserting ‘‘Con-
gress’’; 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 Workforce 
of the House of Representatives, the Com-
mittee on Labor and Human Resources of 
the Senate,’’ and inserting ‘‘Congress’’; 
(3) in paragraph (5)(A)—
(A) by striking ‘‘to carry out research’’ each 
place it appears, and inserting ‘‘to carry out sci-
entifically based research’’; 
(B) in clause (i), by inserting ‘‘scientifically 
based’’ after ‘‘programs, including’’; 
(C) in clause (ii), by inserting ‘‘that are in-
tegrated with rigorous and challenging academic 
education’’ after ‘‘implementation of vocational 
and technical education programs’’; and 
(D) in clause (iii)(I), by inserting ‘‘and the 
integration of those systems with the academic 
education system’’ after ‘‘technical education sys-
tems’’;
(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 nec-
essary 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 AGENCIES.—
‘‘(1) IN GENERAL.—From funds reserved under 
section 111(a)(1)(C), the Secretary may award grants 
to eligible agencies for exemplary performance in car-
rying out programs under this Act. Such awards 
shall be based on an eligible agency exceeding State 
adjusted levels of performance established under sec-
tion 113(b) and showing sustained or significant im-
provement.
‘‘(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 having 
special populations participating in vocational 
and technical education meet State adjusted lev-
els of performance. 
‘‘(3) USE OF FUNDS.—The funds awarded to an 
eligible agency under this subsection may be used to 
carry out any activities authorized under section 124, 
including demonstrations of innovative programs.’’. 
SEC. 10. OUTLYING AREAS, NATIVE AMERICAN PROGRAMS, 
AND TRIBALLY CONTROLLED INSTITUTIONS. 
(a) ASSISTANCE FOR THE OUTLYING AREAS.—Section 
115 (20 U.S.C. 2325) is amended to read as follows: 
‘‘SEC. 115. ASSISTANCE FOR THE OUTLYING AREAS. 
‘‘(a) OUTLYING AREAS.—From funds reserved pursu-
ant 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 remain-
der of funds reserved pursuant to section 111(a)(1)(A), in 
equal proportion, to each of Guam, American Samoa, and 
the Commonwealth of the Northern Mariana Islands, for the 
purpose of providing direct vocational and technical edu-
cational services, including—
‘‘(1) teacher and counselor training and retrain-
ing; 
‘‘(2) curriculum development; and 
‘‘(3) the improvement of vocational and technical 
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 edu-
cation. 
‘‘(c) RESTRICTION.—The Republic of Palau shall cease 
to be eligible to receive funding under this section upon en-
tering into an agreement for extension of United States edu-
cational 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 technical 
education programs for Indian students and for institu-
tional support costs of the grant, including the expenses de-
scribed 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), re-
spectively; 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 eligible agen-
cy and the Governor of the State shall jointly des-
ignate an entity in the State responsible for con-
ducting the activities in this subsection. 
‘‘(2) APPLICATION.—The jointly designated agen-
cy shall submit an application to the Secretary at the
same time the State submits its state plan under sec-
tion 122. The application shall be in such a manner 
and be accompanied by such information as the Sec-
retary may reasonably require. At a minimum, the 
application shall describe how the jointly designated 
agency will assist the eligible agency in meeting its 
adjusted levels of performance under section 113(b). 
‘‘(3) ACTIVITIES.—The jointly designated agency 
shall conduct activities—
‘‘(A) to provide support for career guidance 
and academic counseling programs designed to 
promote improved career and education decision 
making by students (and parents, as appro-
priate) regarding education and training options 
and preparations for high skill, high wage occu-
pations; 
‘‘(B) to make available to students, parents, 
teachers, administrators, and counselors, and 
improve accessibility to, information and plan-
ning resources that relate academic and voca-
tional 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 ensure 
nonduplication of efforts and the appropriate use 
of shared information and data; and 
‘‘(F) to provide ongoing means for cus-
tomers, such as students and parents, to provide 
comments and feedback on products and services 
and to update resources, as appropriate, to better 
meet customer requirements.’’; 
(2) in subsection (e)(1), by striking ‘‘an 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 in-
clude—
‘‘(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 eligible 
agency determines necessary to carry out the eligible 
agency’s responsibilities under this title, but not less 
than four times annually; and 
‘‘(4) the adoption of such procedures as the eligi-
ble agency considers necessary to—
‘‘(A) implement State level coordination 
with the activities undertaken by the State
boards under section 111 of Public Law 105–
220; and 
‘‘(B) make available to the service delivery 
system under section 121 of Public Law 105–220 
within the State a listing of all school dropout, 
postsecondary, and adult programs assisted 
under this title. 
‘‘(b) EXCEPTION.—Except with respect to the respon-
sibilities set forth in subsection (a), the eligible agency may 
delegate any of the other responsibilities of the eligible agen-
cy 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, el-
igible recipients, parents, students, interested commu-
nity members’’ and inserting ‘‘academic and voca-
tional and technical education teachers, eligible re-
cipients, charter school authorizers and organizers, 
parents, students, interested community members (in-
cluding parent and community organizations), insti-
tutions of higher education’’; 
(3) in subsection (c)—
(A) in paragraph (1)—
(i) by redesignating subparagraphs (A) 
through (D) as subparagraphs (B) through 
(E), respectively, and inserting before such 
subparagraphs (as so redesignated) the fol-
lowing: 
‘‘(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 suc-
ceed in postsecondary education; 
‘‘(iii) lead to a postsecondary 1-year 
certificate, associate or baccalaureate degree, 
or a proficiency credential in conjunction 
with a secondary school diploma; and 
‘‘(iv) may be adopted by local edu-
cational agencies and postsecondary institu-
tions to be offered as an option to students 
(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 eli-
gible agency to evaluate and approve eligible re-
cipients for funds under this title, including cri-
teria to assess the extent to which the local plan
will promote continuous and substantial im-
provement 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 redesig-
nated), by inserting ‘‘aligned with rigorous 
and challenging academic content’’ before 
the semicolon; and 
(vi) by inserting after subparagraph 
(E) (as so redesignated) the following: 
‘‘(F) the process 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 described 
in section 135(b)(3) will play in assisting other
eligible recipients in establishing agreements and 
plans for coordinating the offering of model se-
quences of courses to students at both the sec-
ondary 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 de-
velopment (including initial teacher preparation and 
activities that support recruitment) for vocational 
and technical, academic, guidance, and administra-
tive personnel will be provided, especially professional 
development that—
‘‘(A) promotes the integration of rigorous 
and challenging academic and vocational and 
technical education curriculum development;
‘‘(B) increases the percentage of teachers 
that meet teacher certification or licensing 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 tech-
nical 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 
Secondary Education Act of 1965 (20 
U.S.C. 7801(11))), and vocational and tech-
nical subjects’’; 
(E) in paragraph (11), by inserting ‘‘and 
technology’’ after ‘‘equipment’’;
(F) by striking paragraph (19) and redesig-
nating paragraphs (12) through (18) as para-
graphs (13) through (19), respectively; 
(G) by inserting after paragraph (11) the 
following: 
‘‘(12) describes how the eligible agency will en-
sure that any entity in the State that purchases 
equipment with funds under this Act will dispose of 
that equipment in such a manner as to ensure that 
any personally identifiable information contained in 
that equipment will be totally destroyed prior to, or 
as part of, the disposition;’’; 
(H) in paragraph (18) (as so redesignated), 
by striking ‘‘training and employment’’ and in-
serting ‘‘fields’’; and 
(I) by redesignating paragraphs (20) and 
(21) as paragraphs (22) and (23), respectively, 
and inserting after paragraph (19) (as so redes-
ignated) the following: 
‘‘(20) describes how the eligible agency will 
award grants, on a competitive basis or on the basis 
of a formula determined by the eligible agency, using 
funds described in section 112 (a) (1) for activities 
described in section 135(b)(3);
‘‘(21) describes how the eligible agency will carry 
out measurable, sustainable, and coordinated tech-
prep activities in the State (as described in section 
135(b)(3)), with funds allocated under section 112(a), 
that are developed in consultation with the entities 
described in subsection (b)(1) and that effectively pre-
pare students for post-secondary education or employ-
ment in high-demand occupations through a seamless 
program of study consisting of appropriate advanced 
academic and technical courses that include a min-
imum of 2 years of secondary school preceding grad-
uation and a minimum of 2 years of higher education 
or an apprenticeship program of at least 2 years fol-
lowing secondary instruction;’’; and 
(4) by striking subsections (d) and (f) and redes-
ignating subsection (e) as subsection (d). 
SEC. 13. IMPROVEMENT PLANS. 
Section 123 (20 U.S.C. 2343) is amended to read as 
follows: 
‘‘SEC. 123. IMPROVEMENT PLANS. 
‘‘(a) STATE PROGRAM IMPROVEMENT.—
‘‘(1) PLAN.—If a State fails to meet the agreed 
upon State adjusted levels of performance required 
under section 113(b)(3), the eligible agency shall de-
velop and implement a program improvement plan
(with special consideration to performance gaps iden-
tified under section 113(c)(2)) in consultation with 
the appropriate agencies, individuals, and organiza-
tions for the first program year succeeding the pro-
gram year in which the eligible agency failed to meet 
the State adjusted levels of performance, in order to 
avoid a sanction under paragraph (3). 
‘‘(2) TECHNICAL ASSISTANCE.—If the Secretary 
determines that an eligible agency is not properly im-
plementing the eligible agency’s responsibilities under 
section 122, or is not making substantial progress in 
meeting the purposes of this Act, based on the State’s 
adjusted levels of performance, the Secretary shall 
work with the eligible agency to implement improve-
ment activities consistent with the requirements of 
this Act. 
‘‘(3) SUBSEQUENT ACTION.—
‘‘(A) IN GENERAL.—If an eligible agency 
fails to meet the State adjusted levels of perform-
ance and the purposes of this Act, has not imple-
mented an improvement plan as described in 
paragraph (1), has shown no improvement with-
in 1 year after implementing an improvement 
plan as described in paragraph (1), or has failed 
to meet the State adjusted levels of performance
and the purposes of this Act for 2 or more con-
secutive years, the Secretary may, after notice 
and opportunity for a hearing, withhold from 
the eligible agency all, or a portion of, the eligi-
ble agency’s allotment under this title. 
‘‘(B) 
WAIVER
FOR
EXCEPTIONAL
CIR-
CUMSTANCES.—The Secretary may waive the 
sanction in subparagraph (A) due to exceptional 
or uncontrollable circumstances, such as a nat-
ural disaster or a precipitous and unforeseen de-
cline in the financial resources of the State. 
‘‘(4) FUNDS RESULTING FROM REDUCED ALLOT-
MENTS.—
‘‘(A) IN GENERAL.—The Secretary shall use 
funds withheld under paragraph (3) for a State 
served by an eligible agency, to provide (through 
alternative arrangements) services and activities 
within the State to meet the purposes of this Act. 
‘‘(B) REDISTRIBUTION.—If the Secretary 
cannot satisfactorily use funds withheld under 
paragraph (3), then the amount of funds re-
tained by the Secretary as a result of a reduction 
in an allotment made under paragraph (3) shall 
be redistributed to other eligible agencies in ac-
cordance with section 111.
‘‘(b) LOCAL PROGRAM IMPROVEMENT.—
‘‘(1) LOCAL EVALUATION.—Each eligible agency 
shall evaluate annually, using the local adjusted levels 
of performance described in section 113(b)(4), the vo-
cational and technical education activities of each eli-
gible recipient receiving funds under this title. 
‘‘(2) PLAN.—
‘‘(A) IN GENERAL.—If, after reviewing the 
evaluation, the eligible agency determines that 
an eligible recipient is not making substantial 
progress in achieving the local adjusted levels of 
performance, or that an eligible recipient dem-
onstrates under section 113(b)(4)(C) persistent or 
a widening of performance gaps between mul-
tiple categories of students served by the eligible 
recipient in comparison to all students in the 
State served under the Act, the eligible agency 
shall—
‘‘(i) conduct an assessment of the edu-
cational needs that the eligible recipient 
shall address to overcome local performance 
deficiencies; 
‘‘(ii) enter into an improvement plan 
agreement with an eligible recipient based 
on the results of the assessment, for the first
program year succeeding the program year 
in which the eligible recipient failed to meet 
the local adjusted levels of performance, 
which plan shall demonstrate how the local 
performance deficiencies will be corrected 
and include strategies for professional devel-
opment and instructional and other pro-
grammatic innovations of demonstrated ef-
fectiveness, giving special consideration to 
performance gaps identified under section 
113(b)(4)(C); and 
‘‘(iii) conduct regular evaluations of 
the progress being made toward reaching 
the local adjusted levels of performance as 
described in section 113(b)(4) and progress 
on implementing the improvement plan. 
‘‘(B) CONSULTATION.—The eligible agency 
shall conduct the activities described in para-
graph (2) in consultation with teachers, parents, 
other school staff, appropriate agencies, and 
other appropriate individuals and organizations. 
‘‘(3) TECHNICAL
ASSISTANCE.—If the eligible 
agency determines that an eligible recipient is not 
properly implementing the eligible recipient’s respon-
sibilities under section 134, or is not making substan-
tial progress in meeting the purpose of this Act, based 
on the local adjusted levels of performance, the eligible 
agency shall provide technical assistance to the eligi-
ble recipient to assist such recipient in carrying out 
the improvement activities consistent with the re-
quirements of this Act. 
‘‘(4) SUBSEQUENT ACTION.—
‘‘(A) IN GENERAL.—If an eligible recipient 
fails to meet the local adjusted levels of perform-
ance as described in section 113(b)(4) and the 
purposes of this Act, has not implemented an im-
provement plan as described in paragraph (2), 
has shown no improvement within 1 year after 
implementing an improvement plan as described 
in paragraph (2), or has failed to meet the local 
adjusted levels of performance and the purposes 
of this Act for 2 or more consecutive years, the 
eligible agency may, after notice and oppor-
tunity for a hearing, withhold from the eligible 
recipient all, or a portion of, the eligible recipi-
ent’s allotment under this title. 
‘‘(B) 
WAIVER
FOR
EXCEPTIONAL
CIR-
CUMSTANCES.—The eligible agency may waive 
the sanction under this paragraph due to excep-
tional or uncontrollable circumstances such as a
natural disaster or a precipitous and unforeseen 
decline in the financial resources of the State. 
‘‘(5) FUNDS RESULTING FROM REDUCED ALLOT-
MENTS.—The eligible agency shall use funds withheld 
under paragraph (4) to continue to provide (through 
alternative arrangements) services and activities in 
the area served by such recipient to meet the purpose 
of this Act.’’. 
SEC. 14. STATE LEADERSHIP ACTIVITIES. 
Section 124 (20 U.S.C. 2344) is amended—
(1) in subsection (b)—
(A) in paragraph (1), by striking ‘‘learn-
ing’’ and inserting ‘‘education’’; 
(B) in paragraph (2)—
(i) by inserting ‘‘, and the required 
math and science education,’’ after ‘‘use of 
technology in vocational and technical edu-
cation’’; and 
(ii) in subparagraph (B)—
(I) by inserting ‘‘(including the 
math and science knowledge that pro-
vides a strong basis for such skills)’’ 
after ‘‘technical skills’’; and 
(II) 
by 
striking 
‘‘and 
tele-
communications field’’ and inserting
‘‘fields, 
including 
nontraditional 
fields’’; 
(C) in paragraph (3)—
(i) by inserting ‘‘at the secondary and 
postsecondary levels’’ after ‘‘academic, guid-
ance, and administrative personnel’’; 
(ii) by redesignating subparagraphs 
(A) through (D) as subparagraphs (C) 
through (F), respectively, and inserting be-
fore such subparagraphs (as so redesig-
nated) the following: 
‘‘(A) will provide inservice and preservice 
training for vocational and technical education 
teachers in the integration and use of rigorous 
and challenging academics with vocational and 
technical subjects; 
‘‘(B) are high quality, sustained, intensive, 
and classroom-focused in order to have a positive 
and lasting impact on classroom instruction and 
the teacher’s performance in the classroom, and 
are not 1-day or short-term workshops or con-
ferences;’’; 
(iii) in subparagraph (C) (as so redes-
ignated)—
(I) by inserting ‘‘scientifically 
based’’ after ‘‘based on’’; and 
(II) by striking ‘‘; and’’ and in-
serting a semicolon; 
(iv) in subparagraph (D) (as so redes-
ignated), by striking ‘‘assist students in 
meeting’’ and inserting ‘‘improve student 
achievement in order to meet’’; and 
(v) by amending subparagraph (E) (as 
so redesignated) to read as follows: 
‘‘(E) will support education programs for 
teachers of vocational and technical education in 
public schools and other public school personnel 
who are involved in the direct delivery of edu-
cational services to vocational and technical edu-
cation students to ensure that teachers and per-
sonnel—
‘‘(i) stay current with the needs, expec-
tations, and methods of industry; 
‘‘(ii) meet teacher certification or li-
censing requirements, especially in core aca-
demic 
subjects 
as 
defined 
in 
section 
9101(11) of the Elementary and Secondary 
Education 
Act 
of 
1965 
(20 
U.S.C. 
7801(11));
‘‘(iii) effectively develop integrated rig-
orous and challenging academic and voca-
tional and technical education curriculum; 
‘‘(iv) develop a high level of academic 
and industry knowledge and skills necessary 
to provide effective instruction in vocational 
and technical education; and 
‘‘(v) effectively use applied learning 
that contributes to the academic and voca-
tional and technical knowledge of the stu-
dent; and’’; 
(D) in paragraph (4), by striking ‘‘integra-
tion of academics’’ and all that follows through 
‘‘core academic,’’ and inserting ‘‘provision of rig-
orous and challenging academics that are inte-
grated with vocational and technical education 
to ensure achievement in the core academic sub-
jects (as defined in section 9101(11) of the Ele-
mentary and Secondary Education Act of 1965 
(20 U.S.C. 7801(11))),’’; 
(E) in paragraph (5), by striking ‘‘training 
and employment’’ and inserting ‘‘fields’’; 
(F) in paragraph (6), by inserting ‘‘and 
complete a model sequence of courses, as de-
scribed in section 122(c)(1)(A)’’ after ‘‘technical 
skills’’; 
(G) in paragraph (7), by striking ‘‘; and’’ 
and inserting a semicolon; 
(H) in paragraph (8), by striking the pe-
riod and inserting ‘‘; and’’; and 
(I) by inserting after paragraph (8) the fol-
lowing: 
‘‘(9) technical assistance for eligible recipients.’’; 
and 
(2) in subsection (c)—
(A) by striking paragraph (1), and redesig-
nating paragraphs (2) through (10) as para-
graphs (1) through (9), respectively, and para-
graphs (11) and (12) as paragraphs (12) and 
(13), respectively; 
(B) in paragraph (9) (as so redesignated), 
by inserting ‘‘that prepare individuals academi-
cally and technically for current and emerging 
occupations 
in 
demand’’ 
after 
‘‘education 
courses’’; and 
(C) by inserting after paragraph (9) (as so 
redesignated) the following: 
‘‘(10) awarding incentive grants to eligible re-
cipients for exemplary performance in carrying out
programs under this Act, which awards shall be based 
on—
‘‘(A) eligible recipients exceeding chal-
lenging performance measures established under 
section 113(b) in a manner that reflects sus-
tained or significant improvement; 
‘‘(B) eligible recipients effectively developing 
connections between secondary education and 
postsecondary education and training; 
‘‘(C) the adoption and integration of rig-
orous and challenging academic and technical 
coursework; 
‘‘(D) an eligible recipient’s progress in hav-
ing special populations participating in voca-
tional and technical education programs meet 
local adjusted levels of performance; or 
‘‘(E) other factors relating to the perform-
ance of the eligible recipient under this Act as 
the eligible agency determines are appropriate; 
‘‘(11) providing for activities to support entre-
preneurship education and training;’’. 
SEC. 15. DISTRIBUTION OF FUNDS TO SECONDARY SCHOOL 
PROGRAMS. 
Section 131 (20 U.S.C. 2351) is amended—
(1) by striking subsection (a) and redesignating 
subsections (b) through (i) as subsections (a) through 
(h), respectively; 
(2) in subsection (a) (as so redesignated)—
(A) in the subsection heading, by striking 
‘‘Special’’ and ‘‘for Succeeding Fiscal Years’’; 
and 
(B) by striking ‘‘for fiscal year 2000 and 
succeeding fiscal years’’; and 
(3) in subsection (b) (as so redesignated)—
(A) by striking ‘‘subsection (b)’’ and insert-
ing ‘‘subsection (a)’’; and 
(B) by striking ‘‘(42 U.S.C. 9902(2))’’ and 
inserting ‘‘(42 U.S.C. 9902(2)))’’. 
SEC. 16. ELIMINATION OF REDISTRIBUTION RULE. 
Section 133 (20 U.S.C. 2353) is amended by striking 
subsection (b) and redesignating subsections (c) and (d) as 
subsections (b) and (c), respectively. 
SEC. 17. LOCAL PLAN FOR VOCATIONAL AND TECHNICAL 
EDUCATION PROGRAMS. 
Section 134(b) (20 U.S.C. 2354(b)) is amended—
(1) in paragraph (2), by inserting ‘‘and local’’ 
after ‘‘State’’; 
(2) in paragraph (3)—
(A) by redesignating subparagraphs (A) 
through (C) as subparagraphs (B) through (D), 
respectively, and inserting before such subpara-
graphs the following: 
‘‘(A) offer the appropriate courses of at least 
one of the model sequences of courses described in 
section 124(c)(1), as appropriate to the eligible 
recipient responsible for that element of the se-
quence;’’; 
(B) in subparagraph (B) (as so redesig-
nated)—
(i) by inserting ‘‘rigorous and chal-
lenging’’ after ‘‘integration of’’; and 
(ii) by inserting ‘‘subjects (as defined 
by section 9101(11) of the Elementary and 
Secondary Education Act of 1965 (20 
U.S.C. 7801(11)))’’ after ‘‘core academic’’; 
and 
(C) in subparagraph (D) (as so redesig-
nated), by inserting ‘‘rigorous and’’ after ‘‘taught 
to the same’’; 
(3) by redesignating paragraphs (4) through (10) 
as paragraphs (5) through (11), respectively, and in-
serting after paragraph (3) the following:
‘‘(4) describe how comprehensive professional de-
velopment (including initial teacher preparation) for 
vocational and technical, academic, guidance, and 
administrative personnel will be provided that pro-
motes the integration of rigorous and challenging aca-
demic and technical education (including curriculum 
development);’’; 
(4) in paragraph (5) (as so redesignated)—
(A) by inserting ‘‘academic and vocational 
and technical’’ after ‘‘students,’’; and 
(B) by inserting ‘‘(including the eligible re-
cipients that offer elements of the model sequence 
of courses)’’ after ‘‘such individuals and enti-
ties’’; and 
(5) in paragraph (8) (as so redesignated)—
(A) in subparagraph (A), by striking ‘‘; 
and’’ and inserting a semicolon; 
(B) in subparagraph (B), by inserting 
‘‘and’’ after the semicolon; and 
(C) by inserting after subparagraph (B) the 
following: 
‘‘(C) will provide activities to prepare spe-
cial populations, including single parents and 
displaced homemakers, for high skill, high wage 
occupations that will lead to self-sufficiency;’’.
SEC. 18. LOCAL USE OF FUNDS. 
Section 135 (20 U.S.C. 2355) is amended—
(1) in subsection (b)—
(A) in paragraph (1), by striking ‘‘to ensure 
learning in the core academic’’ and inserting ‘‘as 
established in the State-developed model se-
quences 
of 
courses 
described 
in 
section 
122(c)(1)(A) to ensure learning in the core aca-
demic subjects (as defined by section 9101(11) of 
the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7801(11)))’’; 
(B) by striking paragraph (8); 
(C) 
by 
redesignating 
paragraphs 
(2) 
through (7) as paragraphs (4) through (9), re-
spectively, and inserting after paragraph (1) the 
following: 
‘‘(2) link secondary vocational and technical 
education and postsecondary vocational and technical 
education, including offering model sequences of 
courses and implementing tech-prep programs con-
sistent with the activities described in paragraph (3); 
‘‘(3) support tech-prep programs (if the eligible 
recipient receives the funds from the eligible agency 
under section 112(a)(1)) that—
‘‘(A) are carried out under an articulation 
agreement between the participants in a consor-
tium, which shall include—
‘‘(i) a local educational agency, an in-
termediate educational agency or area voca-
tional and technical education school serv-
ing secondary school students, or a sec-
ondary school funded by the Bureau of In-
dian Affairs; and 
‘‘(ii)(I) a nonprofit institution of high-
er education that offers—
‘‘(aa) a 2- or 4-year degree 
program, or a 2-year certificate 
program, and is qualified as an 
institution of higher education 
pursuant to section 102 of the 
Higher Education Act of 1965 (20 
U.S.C. 1002) (except those institu-
tions 
described 
in 
section 
102(a)(1)(C) of such Act), includ-
ing an institution receiving as-
sistance under the Tribally Con-
trolled College or University As-
sistance Act of 1978 (25 U.S.C. 
1801 et seq.) and a tribally con-
trolled postsecondary vocational 
and technical institution; or 
‘‘(bb) a 2-year apprentice-
ship program that follows sec-
ondary instruction, if such non-
profit institution of higher edu-
cation is not prohibited from re-
ceiving assistance under part B of 
title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1071 et 
seq.) pursuant to the provisions of 
section 435(a)(3) of such Act (20 
U.S.C. 1083(a)); or 
‘‘(II) a proprietary institution of high-
er education that offers a 2-year associate 
degree program and is qualified as an insti-
tution of higher education pursuant to sec-
tion 102 of the Higher Education Act of 
1965 (20 U.S.C. 1002), if such proprietary 
institution of higher education is not subject 
to a default management plan required by 
the Secretary, 
and may include nonprofit organizations that 
provide eligible recipients with technology and
programs to enhance math and science skills, 
employers, and labor organizations; 
‘‘(B) consist of a minimum of 2 years of 
secondary school preceding graduation and a 
minimum of 2 years of higher education, or an 
apprenticeship program of at least 2 years, fol-
lowing secondary instruction; 
‘‘(C) meet academic standards developed by 
the State, including standards developed under 
section 1111 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6311) for sec-
ondary students, and support proficiency in 
mathematics, science, reading, writing, commu-
nications, and technologies; 
‘‘(D) are comprised of model sequences of 
courses that integrate rigorous and challenging 
academics and vocational and technical edu-
cation; 
‘‘(E) provide technical preparation in a ca-
reer field such as engineering technology; applied 
science; a mechanical, industrial, or practical 
art or trade; agriculture; health occupations; 
business; applied economics; advanced manufac-
turing; or other high-skill, high-wage, high-de-
mand occupations as determined by the State;