I
107TH CONGRESS
1ST SESSION
H. R. 345
To amend the Elementary and Secondary Education Act of 1965, to
reauthorize and make improvements to that Act, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 31, 2001
Mr. ROEMER (for himself, Mr. DOOLEY of California, Mr. SMITH of Wash-
ington, Mr. BENTSEN, Mr. CARSON of Oklahoma, Mr. CLEMENT, Mr.
CRAMER, Mr. DAVIS of Florida, Mrs. DAVIS of California, Ms. HARMAN,
Mr. ISRAEL, Mr. KIND, Mr. LARSEN of Washington, Mrs. MCCARTHY of
New York, Mr. MORAN of Virginia, Mr. SCHIFF, and Mrs. TAUSCHER)
introduced the following bill; which was referred to the Committee on
Education and the Workforce
A BILL
To amend the Elementary and Secondary Education Act
of 1965, to reauthorize and make improvements to that
Act, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Public Education Reinvestment, Reinvention, and Re-
sponsibility Act (Three R’s)’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. Declaration of priorities.
TITLE I—STUDENT PERFORMANCE
Sec. 101. Heading.
Sec. 102. Findings, policy, and purpose.
Sec. 103. Authorization of appropriations.
Sec. 104. Reservation for school improvement.
PART A—IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL
AGENCIES
Sec. 105. State plans.
Sec. 106. Local educational agency plans.
Sec. 107. Schoolwide programs.
Sec. 108. School choice.
Sec. 109. Assessment and local educational agency and school improvement.
Sec. 110. State assistance for school support and improvement.
Sec. 111. Parental involvement changes.
Sec. 112. Qualifications for teachers and paraprofessionals.
Sec. 113. Professional development.
Sec. 114. Fiscal requirements.
Sec. 115. Coordination requirements.
Sec. 115A. Limitations on funds.
Sec. 116. Grants for the outlying areas and the Secretary of the Interior.
Sec. 122. Participation of children enrolled in private schools.
PART B—EVEN START FAMILY LITERACY PROGRAMS
Sec. 131. Program authorized.
Sec. 132. Applications.
Sec. 133. Research.
PART C—EDUCATION OF MIGRATORY CHILDREN
Sec. 141. State allocations.
Sec. 142. State applications; services.
Sec. 143. Authorized activities.
Sec. 144. Coordination of migrant education activities.
PART D—NEGLECTED OR DELINQUENT YOUTH
Sec. 151. Neglected or delinquent youth.
Sec. 152. Findings.
Sec. 153. Allocation of funds.
Sec. 154. State plan and State agency applications.
Sec. 155. Use of funds.
Sec. 156. Purpose.
Sec. 157. Transition services.
Sec. 158. Programs operated by local educational agencies.
Sec. 159. Local educational agency applications.
Sec. 160. Uses of funds.
Sec. 161. Program requirements.
Sec. 162. Program evaluations.
PART E—GENERAL PROVISIONS
Sec. 171. General provisions.
PART F—FEDERAL EVALUATIONS, DEMONSTRATIONS, AND TRANSITION
PROJECTS
Sec. 181. Evaluations.
Sec. 182. Demonstrations of innovative practices.
PART G—RURAL EDUCATION ACHIEVEMENT PROGRAM
TITLE II—TEACHER AND PRINCIPAL QUALITY, PROFESSIONAL
DEVELOPMENT, AND CLASS SIZE
Sec. 201. Teacher and principal quality, professional development, and class
size.
TITLE III—LANGUAGE MINORITY STUDENTS AND INDIAN,
NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION
Sec. 301. Language minority students.
Sec. 302. Emergency immigrant education program.
Sec. 303. Indian, Native Hawaiian, and Alaska Native education.
TITLE IV—PUBLIC SCHOOL CHOICE
Sec. 401. Public school choice.
Sec. 402. Development of public school choice programs; report cards.
TITLE V—IMPACT AID
Sec. 501. Payments relating to Federal acquisition of real property.
Sec. 502. Repeal of special rule relating to the computation of payments for eli-
gible federally connected children.
Sec. 503. Extension of authorization of appropriations.
Sec. 504. Repeals, transfers, and redesignations.
TITLE VI—HIGH PERFORMANCE AND QUALITY EDUCATION
INITIATIVES
Sec. 601. High performance and quality education initiatives.
TITLE VII—ACCOUNTABILITY
Sec. 701. Accountability.
TITLE VIII—GENERAL PROVISIONS AND REPEALS
Sec. 801. Repeals, transfers, and redesignations regarding titles VIII and XIV.
Sec. 802. Other repeals.
SEC. 2. REFERENCES.
Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6301 et seq.).
SEC. 3. DECLARATION OF PRIORITIES.
Congress declares that our national educational prior-
ities are to—
(1) introduce real accountability by making
public elementary school and secondary school edu-
cation funding performance-based rather than a
guaranteed source of revenue for States and local
educational agencies;
(2) require State educational agencies and local
educational agencies to establish high student per-
formance objectives, and to provide the State edu-
cational agencies and local educational agencies with
flexibility in using Federal resources to ensure that
the performance objectives are met;
(3) concentrate Federal funding around a small
number of central education goals, including com-
pensatory education for disadvantaged children and
youth, teacher quality and professional development,
programs for limited English proficient students,
public school choice programs, innovative educational
programs, student safety, and the incorporation of
educational technology;
(4) concentrate Federal education funding on
impoverished areas where elementary schools and
secondary schools are most likely to be in distress;
(5) sanction State educational agencies and
local educational agencies that consistently fail to
meet established performance objectives; and
(6) reward State educational agencies, local
educational agencies, and elementary schools and
secondary schools that demonstrate high perform-
ance.
TITLE I—STUDENT
PERFORMANCE
SEC. 101. HEADING.
The heading for title I (20 U.S.C. 6301 et seq.) is
amended to read as follows:
‘‘TITLE I—STUDENT
PERFORMANCE’’.
SEC. 102. FINDINGS, POLICY, AND PURPOSE.
Section 1001 (20 U.S.C. 6301) is amended to read
as follows:
‘‘SEC. 1001. FINDINGS, POLICY AND PURPOSE.
‘‘(a) FINDINGS.—Congress makes the following find-
ings:
‘‘(1) Despite more than 3 decades of Federal
assistance, a sizable achievement gap remains be-
tween low-income and middle-class students.
‘‘(2) The 1994 reauthorization of the Elemen-
tary and Secondary Education Act of 1965 was an
important step in focusing our Nation’s priorities on
closing the achievement gap between poor and afflu-
ent students in the United States. The Federal Gov-
ernment must continue to build on these improve-
ments made in 1994 by holding States and local
educational agencies accountable for student achieve-
ment.
‘‘(3) States can help close this achievement gap
by developing challenging curriculum content and
student performance standards so that all elemen-
tary school and secondary school students perform
at an advanced level. States should implement vig-
orous and comprehensive student performance as-
sessments, such as the National Assessment of Edu-
cational Progress (NAEP) so as to measure fully the
progress of our Nation’s students.
‘‘(4) In order to ensure that no child is left be-
hind in the new economy, the Federal Government
must better target Federal resources on those chil-
dren who are most at-risk for falling behind aca-
demically.
‘‘(5)(A) Title I funds have been targeted on
high-poverty areas, but not to the degree they should
be as demonstrated by the following:
‘‘(B) Although 95 percent of schools with pov-
erty levels of 75 percent to 100 percent receive title
I funding, 20 percent of schools with poverty levels
of 50 to 74 percent do not receive any title I fund-
ing.
‘‘(C) Only 64 percent of schools with poverty
levels in the 35 percent to 49 percent range receive
title I funding.
‘‘(6) Title I funding should be significantly in-
creased and more effectively targeted to ensure that
all low-income students have an opportunity to excel
academically.
‘‘(7) The Federal Government should provide
greater decisionmaking authority and flexibility to
schools and teachers in exchange for greater respon-
sibility for student performance. Federal, State, and
local efforts should be focused on raising the aca-
demic achievement of all students. Our Nation’s
children deserve nothing less than holding account-
able those responsible for shaping our childrens’ fu-
ture and our country’s future.
‘‘(b) POLICY.—Congress declares that it is the policy
of the United States to ensure that all students receive
a high-quality education by holding States, local edu-
cational agencies, and elementary schools and secondary
schools accountable for increased student academic per-
formance results, and by facilitating improved classroom
instruction.
‘‘(c) PURPOSES.—The purposes of this title are as
follows:
‘‘(1) To eliminate the existing 2-tiered edu-
cational system, which sets lower academic expecta-
tions for impoverished students than for affluent
students.
‘‘(2) To require all States to have challenging
content and student performance standards and as-
sessment measures in place.
‘‘(3) To require all States to ensure adequate
yearly progress for all students by establishing an-
nual, numerical performance objectives.
‘‘(4) To ensure that all title I students receive
educational instruction from a fully qualified teach-
er.
‘‘(5) To support State and local educational
agencies in identifying, assisting, and correcting low-
performing schools.
‘‘(6) To increase Federal funding for part A
programs for disadvantaged students in return for
increased academic performance of all students.
‘‘(7) To target Federal funding to local edu-
cational agencies serving the highest percentages of
low-income students.’’.
SEC. 103. AUTHORIZATION OF APPROPRIATIONS.
Section 1002 (20 U.S.C. 6302) is amended to read
as follows:
‘‘SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) LOCAL EDUCATIONAL AGENCY GRANTS.—For
the purpose of carrying out part A, other than section
1120(e), there are authorized to be appropriated
$13,000,000,000 for fiscal year 2002 and such sums as
may be necessary for each of the 4 succeeding fiscal years.
‘‘(b) EVEN START.—For the purpose of carrying out
part B, there are authorized to be appropriated such sums
as may be necessary for fiscal year 2002 and each of the
4 succeeding fiscal years.
‘‘(c) EDUCATION OF MIGRATORY CHILDREN.—For
the purpose of carrying out part C, there are authorized
to be appropriated such sums as may be necessary for fis-
cal year 2002 and each of the 4 succeeding fiscal years.
‘‘(d) PREVENTION AND INTERVENTION PROGRAMS
FOR YOUTH WHO ARE NEGLECTED, DELINQUENT, OR AT
RISK OF DROPPING OUT.—For the purpose of carrying
out part D, there are authorized to be appropriated such
sums as may be necessary for fiscal year 2002 and each
of the 4 succeeding fiscal years.
‘‘(e) CAPITAL EXPENSES.—For the purpose of car-
rying out section 1120(e), there are authorized to be ap-
propriated $5,000,000 for fiscal year 2002 and such sums
as may be necessary for each of the 4 succeeding fiscal
years.
‘‘(f) FEDERAL ACTIVITIES.—For the purpose of car-
rying out sections 1501 and 1502, there are authorized
to be appropriated such sums as may be necessary for fis-
cal year 2002 and each of the 4 succeeding fiscal years.’’.
SEC. 104. RESERVATION FOR SCHOOL IMPROVEMENT.
Section 1003 (20 U.S.C. 6303) is amended to read
as follows:
‘‘SEC. 1003. RESERVATION FOR SCHOOL IMPROVEMENT.
‘‘(a) STATE RESERVATIONS.—
‘‘(1) IN
GENERAL.—Each State educational
agency shall reserve 2.5 percent of the amount the
State educational agency receives under part A for
fiscal years 2002 and 2003, and 3.5 percent of that
amount for fiscal years 2004 through 2006, to carry
out paragraph (2) and to carry out the State edu-
cational agency’s responsibilities under sections 1116
and 1117, including the State educational agency’s
statewide system of technical assistance and support
for local educational agencies.
‘‘(2) USES.—Of the amount reserved under
paragraph (1) for any fiscal year, the State edu-
cational agency shall make available at least 95 per-
cent of such amount directly to local educational
agencies.
PART A—IMPROVING BASIC PROGRAMS
OPERATED BY LOCAL EDUCATIONAL AGENCIES
SEC. 105. STATE PLANS.
Section 1111 (20 U.S.C. 6311) is amended to read
as follows:
‘‘SEC. 1111. STATE PLANS.
‘‘(a) PLANS REQUIRED.—
‘‘(1) IN
GENERAL.—Any State educational
agency desiring a grant under this part shall submit
to the Secretary a plan, developed in consultation
with local educational agencies, teachers, pupil serv-
ices personnel, administrators (including administra-
tors of programs described in other parts of this
title), local school boards, other staff, parents, and
other community partners such as institutions of
higher education that satisfies the requirements of
this section and that is coordinated with other pro-
grams under this Act, the Individuals with Disabil-
ities Education Act, the Carl D. Perkins Vocational
and Technical Education Act of 1998, and the Head
Start Act.
‘‘(2) CONSOLIDATED PLAN.—A State plan sub-
mitted under paragraph (1) may be submitted as
part of a consolidated plan under section 8302.
‘‘(b) STANDARDS, ASSESSMENTS, AND ACCOUNT-
ABILITY.—
‘‘(1) CHALLENGING STANDARDS.—
‘‘(A) IN GENERAL.—Each State plan shall
demonstrate that the State has adopted chal-
lenging content standards and challenging stu-
dent performance standards that will be used
by the State, and the local educational agencies,
and elementary schools and secondary schools,
within the State to carry out this part.
‘‘(B) UNIFORMITY.—The standards re-
quired by subparagraph (A) shall be the same
standards that the State applies to all elemen-
tary schools and secondary schools within the
State and all children attending such schools.
‘‘(C) SUBJECTS.—The State shall have
such standards for elementary school and sec-
ondary school children served under this part in
subjects determined by the State, but including
at least mathematics, science, and English lan-
guage arts, and which shall include the same
knowledge, skills, and levels of performance ex-
pected of all children.
‘‘(D) STANDARDS.—Standards under this
paragraph shall include—
‘‘(i) challenging content standards in
academic subjects that—
‘‘(I) specify what children are ex-
pected to know and be able to do;
‘‘(II) contain coherent and rig-
orous content; and
‘‘(III) encourage the teaching of
advanced skills; and
‘‘(ii) challenging student performance
standards that—
‘‘(I) are aligned with the State’s
content standards;
‘‘(II) describe 2 levels of high
performance, proficient and advanced
levels of performance, that determine
how well children are mastering the
material in the State content stand-
ards; and
‘‘(III) describe a third level of
performance, a basic level of perform-
ance, to provide complete information
about the progress of the lower per-
forming children toward achieving to
the proficient and advanced levels of
performance.
‘‘(E) ADDITIONAL
SUBJECTS.—For the
subjects in which students will be served under
this part, but for which a State is not required
under subparagraphs (A), (B), and (C) to de-
velop, and has not otherwise developed, chal-
lenging content and student performance stand-
ards, the State plan shall describe a strategy
for ensuring that such students are taught the
same knowledge and skills and held to the same
expectations as are all children.
‘‘(F) SPECIAL
RULE.—In the case of a
State that allows local educational agencies to
adopt more rigorous standards than those set
by the State, local educational agencies shall be
allowed to implement such standards.
‘‘(2) ADEQUATE YEARLY PROGRESS.—
‘‘(A) IN GENERAL.—Each State plan shall
demonstrate, based on assessments described
under paragraph (4), what constitutes adequate
yearly progress of—
‘‘(i) any school served under this part
toward enabling all children to meet the
State’s challenging student performance
standards;
‘‘(ii) any local educational agency that
receives funds under this part toward ena-
bling all children in schools served by the
local educational agency and receiving as-
sistance under this part to meet the
State’s challenging student performance
standards; and
‘‘(iii) the State in enabling all children
in schools receiving assistance under this
part to meet the State’s challenging stu-
dent performance standards.
‘‘(B) 
DEFINITION.—Adequate 
yearly
progress shall be defined by the State in a man-
ner that—
‘‘(i) applies the same high standards
of academic performance to all students in
the State;
‘‘(ii) takes into account the progress
of all students in the State and in each
local educational agency and school served
under section 1114 or 1115;
‘‘(iii) uses the State challenging con-
tent and challenging student performance
standards and assessments described in
paragraphs (1) and (4);
‘‘(iv) compares separately, within each
State, local educational agency, and school,
the performance and progress of students,
by each major ethnic and racial group, by
gender, by English proficiency status, by
disability and migrant status, and by eco-
nomically disadvantaged students as com-
pared to students who are not economically
disadvantaged 
(except 
that 
such
disaggregation shall not be required in a
case in which the number of students in a
category is insufficient to yield statistically
reliable information or the results would
reveal individually identifiable information
about an individual student);
‘‘(v) compares the proportions of stu-
dents at the basic, proficient, and ad-
vanced levels of performance with the pro-
portions of students at each of the 3 per-
formance levels in the same grade in the
previous school year;
‘‘(vi) endeavors to include other aca-
demic measures such as promotion, attend-
ance, drop-out rates, completion of college
preparatory courses, college admission
tests taken, and secondary school comple-
tion, except that failure to meet another
academic measure, other than student per-
formance on State assessments aligned
with State standards, shall not provide the
sole basis for designating a district or
school as in need of improvement;
‘‘(vii) includes annual numerical ob-
jectives for improving the performance of
all groups described in clause (iv) and nar-
rowing gaps in performance between these
groups in, at least, the areas of mathe-
matics and English language arts; and
‘‘(viii) includes a timeline for ensuring
that each group of students described in
clause (iv) meets or exceeds the State’s
proficient level of performance on each
State assessment used for the purposes of
this section and section 1116 not later
than 10 years after the date of enactment
of the Public Education Reinvestment, Re-
invention, and Responsibility Act (Three
R’s).
‘‘(C) ACCOUNTABILITY.—Each State plan
shall demonstrate that the State has developed
and is implementing a statewide accountability
system that has been or will be effective in en-
suring that all local educational agencies, ele-
mentary schools, and secondary schools are
making adequate yearly progress as defined in
section 1111(b)(2)(B). Each State account-
ability system shall—
‘‘(i) be based on the standards and as-
sessments adopted under paragraphs (1)
and (4) and take into account the perform-
ance of all students required by law to be
included in such assessments;
‘‘(ii) be the same accountability sys-
tem the State uses for all schools or all
local educational agencies, if the State has
an accountability system for all schools or
all local educational agencies;
‘‘(iii) provide for the identification of
schools or local educational agencies receiv-
ing funds under this part that for 2 con-
secutive years have exceeded such schools’
or agencies’ adequate yearly progress goals
so that information about the practices
and strategies of such schools or agencies
can be disseminated to other schools in the
local educational agency and in the State
and such schools can be considered for re-
wards provided under title VII of this Act;
‘‘(iv) provide for the identification of
schools and local educational agencies in
need of improvement, as required by sec-
tion 1116, and for the provision of tech-
nical assistance, professional development,
and other capacity-building as needed, in-
cluding those measures specified in sec-
tions 1116(d)(9) and 1117, to ensure that
schools and local educational agencies so
identified have the resources, skills, and
knowledge needed to carry out their obliga-
tions under sections 1114 and 1115 and to
meet the requirements for annual improve-
ment described in paragraph (2); and
‘‘(v) provide for the identification of
schools and local educational agencies for
corrective action or actions as required by
section 1116, and for the implementation
of corrective actions against school and
school districts when such actions are re-
quired under such section.
‘‘(D) 
ANNUAL
IMPROVEMENT
FOR
STATES.—(i) For a State to make adequate
yearly progress under subparagraph (A)(iii),
not less than 90 percent of the local educational
agencies within the State shall meet the State’s
criteria for adequate yearly progress.
‘‘(ii) If 90 percent requirements of clause
(i) results in a fractured number of local edu-
cational agencies, the Secretary shall provide
guidance and modification of the percentage re-
quirement necessary to meet congressional in-
tent of this language.
‘‘(E)(i) 
ANNUAL
IMPROVEMENT
FOR
LOCAL
EDUCATIONAL
AGENCIES.—(1) For a
local educational agency to make adequate year-
ly progress under subparagraph (A)(ii), not less
than 90 percent of the schools served by the
local educational agency shall meet the State’s
criteria for adequate yearly progress.
‘‘(ii) If the 90 percent requirement of
clause (i) results in a fractured number of
schools, the Secretary shall provide guidance on
modification of the percentage requirement nec-
essary to meet congressional intent of this lan-
guage.
‘‘(F) 
ANNUAL
IMPROVEMENT
FOR
SCHOOLS.—For an elementary school or a sec-
ondary school to make adequate yearly progress
under subparagraph (A)(i), not less than 90
percent of each group of students described in
subparagraph (B)(iv) who are enrolled in such
school shall take the assessments described in
paragraph (4)(D) and in section 612(a)(17)(A)
of the Individuals with Disabilities Education
Act.
‘‘(G) PUBLIC NOTICE AND COMMENT.—
‘‘(i) IN GENERAL.—Each State shall
submit information in the State plan dem-
onstrating that in developing such plan—
‘‘(I) the State diligently sought
public comment from a range of insti-
tutions and individuals in the State
with an interest in improved student
achievement; and
‘‘(II) the State made and will
continue to make a substantial effort
to ensure that information regarding
content standards, performance stand-
ards, assessments, and the State ac-
countability system is widely known
and understood by the public, parents,
teachers, and school administrators
throughout the State.
‘‘(ii) EFFORTS.—The efforts described
in clause (i), at a minimum, shall include
annual publication of such information and
explanatory text to the public through such
means as the Internet, the media, and pub-
lic agencies. Non-English language shall be
used to communicate with parents where
appropriate.
‘‘(H) REVIEW.—The Secretary shall review
information from each State on the adequate
yearly progress of schools and local educational
agencies within the State required under sub-
paragraphs (A) and (B) for the purpose of de-
termining State and local compliance with sec-
tion 1116.
‘‘(3) STATE
AUTHORITY.—If a State edu-
cational agency provides evidence that is satisfactory
to the Secretary that neither the State educational
agency nor any other State government official,
agency, or entity has sufficient authority under
State law to adopt curriculum content and student
performance standards, and assessments aligned
with such standards, that will be applicable to all
students enrolled in the State’s public schools, then
the State educational agency may meet the require-
ments of this subsection by—
‘‘(A) adopting curriculum content and stu-
dent performance standards and assessments
that meet the requirements of this subsection,
on a statewide basis, and limiting the applica-
bility of such standards and assessments to stu-
dents served under this part; or
‘‘(B) adopting and implementing policies
that ensure that each local educational agency
within a State receiving a grant under this part
will adopt curriculum content and student per-
formance standards and assessments—
‘‘(i) that are aligned with the stand-
ards described in subparagraph (A); and
‘‘(ii) that meet the criteria in this sub-
section and any regulations regarding such
standards and assessments that the Sec-
retary may publish and that are applicable
to all students served by each such local
educational agency.
‘‘(4) ASSESSMENTS.—Each State plan shall
demonstrate that the State has implemented a set of
high quality, yearly student assessments that in-
clude, at a minimum, assessments in mathematics,
science, and English language arts, that will be
used, starting not later than the 2002–2003 school
year as the primary means of determining the yearly
performance of each local educational agency and
school served by the State under this title in ena-
bling all children to meet the State’s challenging
content and student performance standards. Such
assessments shall—
‘‘(A) be the same assessments used to
measure the performance of all children, if the
State measures the performance of all children;
‘‘(B) be aligned with the State’s chal-
lenging content and student performance stand-
ards, and provide coherent information about
the local educational agency’s contribution to
the student attainment of such standards;
‘‘(C) be used only for purposes for which
such assessments are valid and reliable, and be
consistent with relevant, nationally recognized
professional and technical standards for such
assessments;
‘‘(D) measure the performance of students
against the challenging State content and stu-
dent performance standards, and be adminis-
tered not less than once during—
‘‘(i) grades 3 through 5;
‘‘(ii) grades 6 through 9; and
‘‘(iii) grades 10 through 12;
‘‘(E) include multiple, up-to-date measures
of student performance and the local edu-
cational agency’s contribution to student per-
formance, including measures that assess high-
er order thinking skills and understanding;
‘‘(F) provide for—
‘‘(i) the participation in such assess-
ments of all students;
‘‘(ii) the reasonable adaptations and
accommodations for students with disabil-
ities as defined in 602(3) of the Individ-
uals with Disabilities Education Act nec-
essary to measure the achievement of such
students relative to State content and stu-
dent performance standards;
‘‘(iii) in the case of a student with
limited English proficiency, the assessment
of such student in the student’s native lan-
guage if such a native language assessment
is more likely than an English language
assessment to yield accurate and reliable
information on what that student knows
and is able to do; and
‘‘(iv) notwithstanding clause (iii), the
assessment (using tests written in English)
of English language arts of any student
who has attended school in the United
States (not including the Commonwealth of
Puerto Rico) for 3 or more consecutive
school years, except if the local educational
agency determines, on a case-by-case indi-
vidual basis, that assessments in another
language and form would likely yield more
accurate and reliable information on what
such students know and can do, the local
educational agency may assess such stu-
dents in the appropriate language other
than English for 1 additional consecutive
year beyond the third consecutive year;
and
‘‘(G) include students who have attended
schools in a local educational agency for a full
academic year but have not attended a single
school for a full academic year, except that the
performance of students who have attended
more than 1 school in the local educational
agency in any academic year shall be used only
in determining the progress of the local edu-
cational agency;
‘‘(H) provide individual student reports to
be submitted to parents, including assessment
scores or other information on the attainment
of student performance standards; and
‘‘(I) enable results to be disaggregated
within each State, local educational agency, and
school by gender, by each major racial and eth-
nic group, by English proficiency status, and by
economically disadvantaged students as com-
pared to students who are not economically dis-
advantaged.
‘‘(5) RIGOROUS CRITERIA.—States are encour-
aged to use rigorous criteria assessment measures.
‘‘(6) FIRST GRADE LITERACY ASSESSMENT.—In
addition to those assessments described in para-
graph (4), each State receiving funds under this
part shall describe in its State plan what reasonable
steps it is taking to assist and encourage local edu-
cational agencies—
‘‘(A) to measure literacy skills of first
graders in schools receiving funds under this
part by providing assessments of first graders
that are—
‘‘(i) developmentally appropriate;
‘‘(ii) aligned with State content and
student performance standards; and
‘‘(iii) scientifically research-based; and
‘‘(B) to assist and encourage local edu-
cational agencies receiving funds under this
part in identifying and taking developmentally
appropriate and effective interventions in any
school served under this part in which a sub-
stantial number of first graders have not dem-
onstrated grade-level literacy proficiency by the
end of the school year.
‘‘(7) LANGUAGE
ASSESSMENTS.—Each State
plan shall identify the languages other than English
and Spanish that are present in the participating
student populations in the State, and indicate the
languages for which yearly student assessments are
not available and are needed. The State may request
assistance from the Secretary if linguistically acces-
sible assessment measures are needed. Upon request,
the Secretary shall assist with the identification of
appropriate assessment measures in the needed lan-
guages, but shall not mandate a specific assessment
or mode of instruction.
‘‘(8) ASSESSMENT
DEVELOPMENT.—A State
shall develop and implement the State assessments,
including, at a minimum, mathematics and English
language arts, by the 2002–2003 school year.
‘‘(9) REQUIREMENT.—Each State plan shall
describe—
‘‘(A) how the State educational agency will
assist each local educational agency and school
affected by the State plan to develop the capac-
ity to comply with each of the requirements of
sections 1114(b), 1115(c), and 1116 that are
applicable to such agency or school;
‘‘(B) how the State educational agency
will—
‘‘(i) hold each local educational agency
affected by the State plan accountable for
improved student performance, including a
procedure for—
‘‘(I) identifying local educational
agencies and schools in need of im-
provement; and
‘‘(II) assisting local educational
agencies and schools identified under
subclause (I) to address achievement
problems, including thorough descrip-
tions of the amounts and types of pro-
fessional development to be provided
instructional staff, the amount of any
financial assistance to be provided by
the State under section 1003, and the
amount of any funds to be provided
by other sources and the activities to
be provided by those sources; and
‘‘(ii) implementing corrective action if
assistance is not effective;
‘‘(C) how the State educational agency is
providing low-performing students additional
academic instruction, such as before- and after-
school programs and summer academic pro-
grams;
‘‘(D) such other factors the State considers
appropriate to provide students an opportunity
to achieve the knowledge and skills described in
the State’s challenging content standards;
‘‘(E) the specific steps the State edu-
cational agency will take or the specific strate-
gies the State educational agency will use to en-
sure that—
‘‘(i) all teachers in both schoolwide
programs and targeted assistance pro-
grams are fully qualified not later than
December 31, 2005; and
‘‘(ii) low-income students and minor-
ity students are not taught at higher rates
than other students by unexperienced,
uncertified, or out-of-field teachers; and
‘‘(F) the measures the State educational
agency will use to evaluate and publicly report
the State’s progress in improving the quality of
instruction in the schools served by the State
educational agency and local educational agen-
cies receiving funding under this Act.
‘‘(c) OTHER PROVISIONS TO SUPPORT TEACHING
AND LEARNING.—Each State plan shall contain assur-
ances that—
‘‘(1) the State educational agency will work
with other agencies, including educational service
agencies or other local consortia and institutions to
provide technical assistance to local educational
agencies and elementary schools and secondary
schools to carry out the State educational agency’s
responsibilities under this part, including technical
assistance in providing professional development
under section 1119(A) and technical assistance
under section 1117; and
‘‘(2)(A) where educational service agencies
exist, the State educational agency will consider pro-
viding professional development and technical assist-
ance through such agencies; and
‘‘(B) where educational service agencies do not
exist, the State educational agency will consider pro-
viding professional development and technical assist-
ance through other cooperative agreements, such as
through a consortium of local educational agencies;
‘‘(3) the State educational agency will use the
disaggregated results of the student assessments re-
quired under subsection (b)(4), and other measures
or indicators available to the State, to review annu-
ally the progress of each local educational agency
and school served under this part to determine
whether each such agency and school is making the
annual progress necessary to ensure that all stu-
dents will meet the proficient level of performance
on the assessments described in subsection (b)(4)
within 10 years of the date of enactment of the Pub-
lic Education Reinvestment, Reinvention, and Re-
sponsibility Act (Three R’s);
‘‘(4) the State educational agency will provide
the least restrictive and burdensome regulations for
local educational agencies and individual elementary
schools and secondary schools participating in a pro-
gram assisted under this part;
‘‘(5) the State educational agency will regularly
inform the Secretary and the public in the State of
how Federal laws, if any, hinder the ability of States
to hold local educational agencies and schools ac-
countable for student academic performance;
‘‘(6) the State educational agency will encour-
age elementary schools and secondary schools to
consolidate funds from other Federal, State, and
local sources for schoolwide reform in schoolwide
programs under section 1114;
‘‘(7) the State educational agency will modify or
eliminate State fiscal and accounting barriers so
that elementary schools and secondary schools can
easily consolidate funds from other Federal, State,
and local sources for schoolwide programs under sec-
tion 1114;
‘‘(8) the State educational agency has involved
the committee of practitioners established under sec-
tion 1703(b) (as redesignated by section 161(2)) in
developing and monitoring the implementation of the
State plan; and
‘‘(9) the State educational agency will inform
local educational agencies of the local educational
agency’s authority to obtain waivers under title VIII
and, if the State is an Ed-Flex Partnership State,
waivers under the Education Flexibility Partnership
Act of 1999.
‘‘(d) PEER REVIEW AND SECRETARIAL APPROVAL.—
The Secretary shall—
‘‘(1) establish a peer review process to assist in
the review of State plans;
‘‘(2) only approve a State plan meeting each of
the requirements of this section;
‘‘(3) if the Secretary determines that the State
plan does not meet each of the requirements of sub-
section (a), (b), or (c), immediately notify the State
of such determination and the reasons for such de-
termination;
‘‘(4) not disapprove a State plan before—
‘‘(A) notifying the State educational agen-
cy in writing of the specific deficiencies of the
State plan;
‘‘(B) offering the State an opportunity to
revise the State plan;
‘‘(C) providing technical assistance in
order to assist the State to meet the require-
ments under subsections (a), (b), and (c); and
‘‘(D) providing a hearing;
‘‘(5) have the authority to disapprove a State
plan for not meeting the requirements of this sec-
tion, but shall not have the authority to require a
State, as a condition of approval of the State plan,
to include in, or delete from, such plan 1 or more
specific elements of the challenging State content
standards or to use specific assessment instruments
or items; and
‘‘(6) require a State to submit a revised State
plan that meets the requirements of this section to
the Secretary for approval not later than 1 year
after the date of enactment of the Public Education
Reinvestment, Reinvention, and Responsibility Act
(Three R’s).
‘‘(e) DURATION OF THE PLAN.—
‘‘(1) IN GENERAL.—Each 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.
‘‘(2) ADDITIONAL INFORMATION.—If the State
makes significant changes in its State plan, such as
the adoption of new challenging State content stand-
ards and State student performance standards, new
assessments, or a new definition of adequate yearly
progress, the State shall submit such information to
the Secretary.
‘‘(f) LIMITATION ON CONDITIONS.—Nothing in this
part shall be construed to authorize an officer or employee
of the Federal Government to mandate, direct, or control
a State’s, local educational agency’s, or elementary
school’s or secondary school’s specific challenging content
or student performance standards, assessments, curricula,
or program of instruction, as a condition of eligibility to
receive funds under this part.
‘‘(g) PENALTIES.—
‘‘(1) IN GENERAL.—If a State fails to meet the
statutory deadlines for demonstrating that the State
has in place challenging content standards and stu-
dent performance standards, assessments, a system
for measuring and monitoring adequate yearly
progress, and a statewide system for holding schools
and local educational agencies accountable for mak-
ing adequate yearly progress with each group of stu-
dents specified in subsection (b)(2)(B)(iv), the State
shall be ineligible to receive any administrative funds
under section 1703(c) that exceed the amount re-
ceived by the State for such purposes in the previous
year.
‘‘(2) ADDITIONAL FUNDS.—Based on the extent
to which challenging content standards and student
performance standards, assessments, systems for
measuring and monitoring adequate yearly progress,
and a statewide system for holding schools and local
educational agencies accountable for making ade-
quate yearly progress with each group of students
specified in subsection (b)(2)(B)(iv), are not in
place, the Secretary shall withhold additional admin-
istrative funds in such amount as the Secretary de-
termines appropriate, except that for each additional
year that the State fails to comply with such re-
quirements, the Secretary shall withhold not less
than 1⁄5 of the amount the State receives for admin-
istrative expenses under section 1703(c).
‘‘(3) WAIVER.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), notwithstanding part D of
title VIII, the Education Flexibility Partnership
Act of 1999, or any other provision of law, a
waiver of this section shall not be granted, ex-
cept that a State may request a 1-time, 1-year
waiver to meet the requirements of this section.
‘‘(B) EXCEPTION.—A waiver granted pur-
suant to subparagraph (A) shall not apply to
the requirements described under subsection
(h).
‘‘(h) SPECIAL RULE ON SCIENCE STANDARDS AND
ASSESSMENTS.—Notwithstanding subsection (b) and part
D of title IV, no State shall be required to meet the re-
quirements under this title relating to science standards
or assessments until the beginning of the 2006–2007
school year.’’.
SEC. 106. LOCAL EDUCATIONAL AGENCY PLANS.
(a) SUBGRANTS.—Section 1112(a)(1) (20 U.S.C.
6312(a)(1)) is amended by striking ‘‘’’ and all that follows
and inserting ‘‘the Individuals with Disabilities Education
Act, the Carl D. Perkins Vocational and Technical Edu-
cation Act of 1998, the Head Start Act, and other Acts,
as appropriate.’’.
(b) PLAN PROVISIONS.—Section 1112(b) (20 U.S.C.
6312(b)) is amended—
(1) by striking ‘‘Each’’ and inserting ‘‘In order
to help low-achieving children achieve high stand-
ards, each’’;
(2) in paragraph (1)—
(A) by striking ‘‘part’’ each place it ap-
pears and inserting ‘‘title’’; and
(B) in subparagraph (B), by inserting
‘‘low-achieving’’ before ‘‘children’’;
(3) in paragraph (4)—
(A) in subparagraph (A)—
(i) by striking ‘‘program,’’ and insert-
ing ‘‘programs and’’; and
(ii) by striking ‘‘, and school-to-work
transition programs’’; and
(B) in subparagraph (B), by striking
‘‘under part C’’ and all that follows through
‘‘dropping out’’ and inserting ‘‘under part C,
neglected or delinquent youth,’’;
(4) in paragraph (7), by striking ‘‘eligible’’;
(5) in paragraph (9), by striking the period and
inserting a semicolon; and
(6) by adding at the end the following new
paragraphs:
‘‘(10) a description of the actions the local edu-
cational agency will take to assist the low-per-
forming schools served by the local educational agen-
cy, including schools identified under section 1116
as in need of improvement; and
‘‘(11) a description of how the local educational
agency will promote the use of alternative instruc-
tional methods, and extended learning time, such as
an extended school year, before- and after-school
programs, and summer programs.’’.
(c) ASSURANCES.—Section 1112(c) (20 U.S.C.
6312(c)) is amended to read as follows:
‘‘(c) ASSURANCES.—
‘‘(1) IN
GENERAL.—Each local educational
agency plan shall provide assurances that the local
educational agency will—
‘‘(A) specify the steps the local educational
agency will take to ensure that all teachers in
both schoolwide programs and targeted assist-
ance are fully qualified not later than December
31, 2005, and the strategies the local edu-
cational agency will use to ensure that low-in-
come students and minority students are not
taught at higher rates than other children by
inexperienced, uncertified, or out-of-field teach-
ers, and the measures the agency will use to
evaluate and publicly report progress in improv-
ing the quality of instruction in schools served
by the local educational agency and receiving
funding under this Act;
‘‘(B) provide eligible schools and parents
with information regarding schoolwide project
authority and the ability of such schools to con-
solidate funds from Federal, State, and local
sources;
‘‘(C) provide technical assistance and sup-
port to schoolwide programs;
‘‘(D) work in consultation with schools as
the schools develop a school plan pursuant to
section 1114(b)(2), and assist schools in imple-
menting such plans or undertaking activities
pursuant to section 1115(c), so that each school
can make adequate yearly progress toward
meeting the challenging State student perform-
ance standards;
‘‘(E) use the disaggregated results of the
student assessments required under section
1111(b)(4), and other measures or indicators
available to the agency, to review annually the
progress of each school served by the agency
and receiving funds under this title to deter-
mine whether or not all schools are making the
annual progress necessary to ensure that all
students will meet the proficient level of per-
formance on the assessments described in sec-
tion 1111(b)(4) within 10 years of the date of
enactment of the Public Education Reinvest-
ment, Reinvention, and Responsibility Act;
‘‘(F) set and hold schools served by the
local educational agency accountable for meet-
ing annual numerical goals for improving the
performance of all groups of students based on
the performance standards set by the State
under section 1111(b)(1)(D)(ii);
‘‘(G) fulfill the local educational agency’s
school improvement responsibilities under sec-
tion 1116, including taking corrective actions
under section 1116(c)(9);
‘‘(H) provide the State educational agency
with—
‘‘(i) an annual, up-to-date, and accu-
rate list of all schools served by the local
educational agency that are eligible for
school improvement and corrective action;
‘‘(ii) the reasons why each school de-
scribed in clause (i) was identified for
school improvement or corrective action;
and
‘‘(iii) the specific plans for improving
student performance in each of the schools
described in clause (i), including the spe-
cific numerical achievement goals for the
succeeding 2 school years, for each group
of 
students 
specified 
in 
section
1111(b)(2)(B)(iv) enrolled in each such
school;
‘‘(I) provide services to eligible children at-
tending private elementary schools and sec-
ondary schools in accordance with section 1120,
and provide timely and meaningful consultation
with private school officials regarding such serv-
ices;
‘‘(J) take into account the experience of
model programs for the educationally disadvan-
taged and the findings of relevant scientifically
based research when developing technical assist-
ance plans for, and delivering technical assist-
ance to, schools served by the local educational
agency that are receiving funds under this part
and are in school improvement or corrective ac-
tion;
‘‘(K) in the case of a local educational
agency that chooses to use funds under this
part to provide early childhood development
services to low-income children below the age of
compulsory school attendance, ensure that such
services comply with the performance standards
established under section 641A(a) of the Head
Start Act;
‘‘(L) comply with the requirements of sec-
tion 1119 regarding the qualifications of teach-
ers and paraprofessionals;
‘‘(M) inform eligible schools served by the
local educational agency of the agency’s author-
ity to obtain waivers on such school’s behalf
under title VIII, and if the State is an Ed-Flex
Partnership State, under the Education Flexi-
bility Partnership Act of 1999; and
‘‘(N) coordinate and collaborate, to the ex-
tent feasible and necessary as determined by
the local educational agency, with other agen-
cies providing services to children, youth, and
their families.
‘‘(2) 
MODEL
PROGRAMS; 
SCIENTIFICALLY
BASED
RESEARCH.—In carrying out paragraph
(1)(K)—
‘‘(A) the Secretary shall consult with the
Secretary of Health and Human Services on the
implementation of such subparagraph, and shall
establish procedures (taking into consideration
existing State and local laws and local teacher
contracts) to assist local educational agencies to
comply with such subparagraph;
‘‘(B) the Secretary shall disseminate to
local educational agencies the Head Start per-
formance standards under section 641A(a) of
the Head Start Act upon such standard’s publi-
cation; and
‘‘(C) local educational agencies affected by
such subparagraph shall plan for the implemen-
tation of such subparagraph (taking into con-
sideration existing State and local laws, and
local teacher contracts), including pursuing the
availability of other Federal, State, and local
funding sources to assist in compliance with
such subparagraph.
‘‘(3) INAPPLICABILITY.—The provisions of this
subsection shall not apply to preschool programs
using the Even Start model or to Even Start pro-
grams.’’.
(d) PLAN DEVELOPMENT AND DURATION.—Section
1112(d) (20 U.S.C. 6312(d)) is amended to read as fol-
lows:
‘‘(d) PLAN DEVELOPMENT AND DURATION.—
‘‘(1) CONSULTATION.—Each local educational
agency plan shall be developed in consultation with
teachers, principals, local school boards, administra-
tors (including administrators of programs described
in other parts of this title), other appropriate school
personnel, and parents of children in elementary
schools and secondary schools served under this
part.
‘‘(2) DURATION.—Each plan described in para-
graph (1) shall remain in effect for the duration of
the local educational agency’s participation under
this part.
‘‘(3) REVIEW.—Each local educational agency
shall periodically review, and as necessary, revise its
plan.’’.
(e) STATE APPROVAL.—Section 1112(e) (20 U.S.C.
6312(e)) is amended to read as follows:
‘‘(e) PEER REVIEW AND STATE APPROVAL.—
‘‘(1) IN
GENERAL.—Each local educational
agency plan shall be filed according to a schedule es-
tablished by the State educational agency.
‘‘(2) APPROVAL.—The State educational agency
shall establish a peer review process to assist in the
review of local educational agency plans. The State
educational agency shall approve a local educational
agency plan only if the State educational agency de-
termines that the local educational agency plan—
‘‘(A) will enable elementary schools and
secondary schools served by the local edu-
cational agency and under this part to help all
groups 
of 
students 
specified 
in 
section
1111(b)(1) meet or exceed the proficient level
of performance on the assessments required
under section 1111(b)(4) within 10 years of the
date of enactment of the Public Education Re-
investment, Reinvention, and Responsibility Act
(Three R’s); and
‘‘(B) meets each of the requirements of
this section.
‘‘(3) STATE REVIEW.—Each State educational
agency shall at least annually review each local agen-
cy plan approved under this subsection against the
results of the disaggregated assessments required
under section 1111(b)(4) for each local educational
agency to ensure that the progress of all students in
schools served by each local educational agency
under this part is adequate to ensure that all stu-
dents in the State will meet or exceed the proficient
standard level of performance on assessments within
10 years of the date of enactment of the Public Edu-
cation Reinvestment, Reinvention, and Responsibility
Act (Three R’s).
‘‘(4) PUBLIC REVIEW.—Each State educational
agency will make publicly available each local edu-
cational agency plan.’’.
(f) PARENTAL NOTIFICATION FOR ENGLISH LAN-
GUAGE INSTRUCTION.—Section 1112 (20 U.S.C. 6312) is
amended by adding at the end the following:
‘‘(g) PARENTAL NOTIFICATION FOR ENGLISH LAN-
GUAGE INSTRUCTION.—
‘‘(1) NOTIFICATION.—If a local educational
agency uses funds under this part to provide English
language instruction to limited English proficient
students, the local educational agency shall inform a
parent or the parents of a child participating in an
English language assistance educational program as-
sisted under this part of—
‘‘(A) the reasons for the identification of
the child as being in need of English language
instruction;
‘‘(B) the child’s level of English pro-
ficiency, how such level was assessed, and the
status of the child’s academic achievement;
‘‘(C) how the English language assistance
educational program will specifically help the
child learn English and meet age-appropriate
standards for grade promotion and graduation;
‘‘(D) the specific exit requirements of the
English language assistance educational pro-
gram;
‘‘(E) the expected rate of graduation from
the English language assistance educational
program into mainstream classes; and
‘‘(F) the expected rate of graduation from
secondary school if funds under this part are
used for children in secondary schools.
‘‘(2) PARENTAL RIGHTS.—
‘‘(A) IN GENERAL.—A parent or the par-
ents of a child participating in an English lan-
guage assistance educational program under
this part shall—
‘‘(i) have the option of selecting
among methods of instruction, if more
than one method is offered in the program;
and
‘‘(ii) have the right to have their child
immediately removed from the program
upon their request.
‘‘(B) RECEIPT OF INFORMATION.—A par-
ent or the parents of a child identified for par-
ticipation in an English language assistance
educational program under this part shall re-
ceive, in a manner and form understandable to
the parent or parents, the information required
by this subsection. At a minimum, the parent
or parents shall receive—
‘‘(i) timely information about English
language assistance educational programs
for limited English proficient children as-
sisted under this part; and
‘‘(ii) if a parent of a participating
child so desires, notice of opportunities for
regular meetings of parents of limited
English proficient children participating in
English language assistance educational
programs under this part for the purpose
of formulating and responding to rec-
ommendations from such parents.
‘‘(3) BASIS FOR ADMISSION OR EXCLUSION.—
No student shall be admitted to or excluded from
any federally assisted education program solely on
the basis of a surname or language minority sta-
tus.’’.
SEC. 107. SCHOOLWIDE PROGRAMS.
(a) USE OF FUNDS FOR SCHOOLWIDE PROGRAMS.—
Section 1114(a) (20 U.S.C. 6314(a)) is amended—
(1) in paragraph (1), by striking ‘‘school de-
scribed in subparagraph (A)’’ and all that follows
through ‘‘such families.’’ the second place it appears
and inserting ‘‘school that serves an eligible school
attendance area in which—
‘‘(A) not less than 40 percent of the chil-
dren are from low-income families; or
‘‘(B) not less than 40 percent of the chil-
dren enrolled in the school are from such fami-
lies.’’; and
(2) in paragraph (2)—
(A) in subparagraph (A), by striking ‘‘sub-
sections (c)(1) and (e) of’’; and
(B) in subparagraph (B), by striking ‘‘sub-
sections (c)(1) and (e) of’’.
(b) COMPONENTS OF A SCHOOLWIDE PROGRAM.—
Section 1114(b) (20 U.S.C. 6314(b)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A), by striking ‘‘sec-
tion 
1111(b)(1)’’ 
and 
inserting 
‘‘section
1111(b)’’;
(B) in subparagraph (B)—
(i) in clause (i), by striking ‘‘section
1111(b)(1)(D)’’ and inserting ‘‘1111(b)’’;
(ii) in clause (iii)(II), by inserting
‘‘and’’ after the semicolon;
(iii) in clause (iv)(II), by striking ‘‘;
and’’ and inserting a period; and
(iv) by striking clause (vii); and
(C) in subparagraph (G), by striking ‘‘sec-
tion 1112(b)(1)’’ and inserting ‘‘section 1112’’;
and
(2) in paragraph (2)—
(A) in subparagraph (A)—
(i) by striking ‘‘Improving America’s
Schools Act of 1994’’ and inserting ‘‘Pub-
lic Education Reinvestment, Reinvention,
and Responsibility Act (Three R’s)’’;
(ii) by striking ‘‘subsections (c)(1)
and (e) of’’; and
(iii) in clause (iv), by striking ‘‘section
1111(b)(3)’’ 
and 
inserting 
‘‘section
1111(b)(4)’’;
(B) in subparagraph (B), by striking
‘‘paragraphs (1) and (3) of section 1111(b)’’
and inserting ‘‘paragraphs (1) and (4) of sec-
tion 1111(b)’’; and
(C) in subparagraph (C)(i)—
(i) in subclause (I), by striking ‘‘sub-
sections (c) and (e) of’’; and
(ii) in subclause (II), by striking ‘‘Im-
proving America’s Schools Act of 1994’’
and inserting ‘‘Public Education Reinvest-
ment, Reinvention, and Responsibility Act
(Three R’s)’’.
SEC. 108. SCHOOL CHOICE.
Section 1115A (20 U.S.C. 6316) is amended to read
as follows:
‘‘SEC. 1115A. SCHOOL CHOICE.
‘‘(a) CHOICE PROGRAMS.—A local educational agen-
cy may use funds under this part, in combination with
State, local, and private funds, to develop and implement
public school choice programs, for children eligible for as-
sistance under this part, that permit parents to select the
public school that their child will attend and are consistent
with State and local law, policy, and practice related to
public school choice and local pupil transfer.
‘‘(b) CHOICE PLAN.—A local educational agency that
chooses to implement a public school choice program
under this section shall first develop a plan that—
‘‘(1) contains an assurance that all eligible stu-
dents across grade levels served under this part will
have equal access to the program;
‘‘(2) contains an assurance that the program
does not include elementary schools or secondary
schools that follow a racially discriminatory policy;
‘‘(3) describes how elementary schools or sec-
ondary schools will use resources under this part,
and from other sources, to implement the plan;
‘‘(4) contains an assurance that the plan will be
developed with the involvement of parents and others
in the community to be served, and individuals who
will carry out the plan, including administrators,
teachers, principals, and other staff;
‘‘(5) contains an assurance that parents of eli-
gible students served by the local educational agency
will be given prompt notice of the existence of the
public school choice program, the program’s avail-
ability to such parents, and a clear explanation of
how the program will operate;
‘‘(6) contains an assurance that the public
school choice program—
‘‘(A) shall include charter schools and any
other public elementary school and secondary
school; and
‘‘(B) shall not include as a ‘receiving
school’ an elementary school or a secondary
school that—
‘‘(i) is or has been identified as a
school in, or eligible for, school improve-
ment or corrective action;
‘‘(ii) has been in school improvement
or corrective action within the last 2 con-
secutive academic years; or
‘‘(iii) is at risk of being eligible for
school improvement within the next school
year;
‘‘(7) contains an assurance that transportation
services or the costs of transportation to and from
the public school choice program—
‘‘(A) may be provided by the local edu-
cational agency with funds under this part and
from other sources; and
‘‘(B) shall not be provided from funds
made available under this part to the local edu-
cational agency that exceed 10 percent of such
funds; and
‘‘(8) contains an assurance that such local edu-
cational agency will comply with the other require-
ments of this part.’’.
SEC. 109. ASSESSMENT AND LOCAL EDUCATIONAL AGENCY
AND SCHOOL IMPROVEMENT.
(a) LOCAL REVIEW.—Section 1116(a) (20 U.S.C.
6317(a)) is amended—
(1) 
in 
paragraph 
(2), 
by 
striking
‘‘1111(b)(2)(A)(i)’’ and inserting ‘‘1111(b)(2)(B)’’;
(2) in paragraph (3)—
(A) by striking ‘‘individual school perform-
ance profiles’’ and inserting ‘‘school report
cards’’;
(B) by striking ‘‘1111(b)(3)(I)’’ and in-
serting ‘‘1111(b)(4)(I)’’; and
(C) by striking ‘‘and’’ after the semicolon;
(3) in paragraph (4), by striking the period and
inserting ‘‘; and’’; and
(4) by adding at the end the following:
‘‘(5) review the effectiveness of the actions and
activities the schools are carrying out under this
part with respect to parental involvement assisted
under this Act.’’.
(b) SCHOOL IMPROVEMENT.—Section 1116(c) (20
U.S.C. 6317(c)) is amended to read as follows:
‘‘(c) SCHOOL IMPROVEMENT.—
‘‘(1) IN GENERAL.—A local educational agency
shall identify for school improvement any elementary
school or secondary school served under this part
that—
‘‘(A) for 2 consecutive years failed to make
adequate yearly progress as defined in the
State’s plan under section 1111(b)(2); or
‘‘(B) was in, or was eligible for, school im-
provement status under this section on the day
preceding the date of the enactment of the Pub-
lic Education Reinvestment, Reinvention, and
Responsibility Act (Three R’s).
‘‘(2) TRANSITION.—The 2-year period described
in paragraph (1)(A) shall include any continuous pe-
riod of time immediately preceding the date of the
enactment of the Public Education Reinvestment,
Reinvention, and Responsibility Act (Three R’s) dur-
ing which an elementary school or a secondary
school did not make adequate yearly progress as de-
fined in the State’s plan, as such plan was in effect
on the day preceding the date of enactment of the
Public Education Reinvestment, Reinvention and
Responsibility Act (Three R’s).
‘‘(3) TARGETED ASSISTANCE SCHOOLS.—To de-
termine if an elementary school or a secondary
school that is conducting a targeted assistance pro-
gram under section 1115 should be identified as in
need of improvement under this subsection, a local
educational agency may choose to review the
progress of only those students in such school who
are served, or are eligible for services, under this
part.
‘‘(4) OPPORTUNITY TO REVIEW AND PRESENT
EVIDENCE.—(A) Before identifying an elementary
school or a secondary school for school improvement
under paragraph (1), the local educational agency
shall provide the school with an opportunity to re-
view the school level data, including assessment
data, on which the proposed identification is based.
‘‘(B) If the principal of a school proposed for
identification as in need of school improvement be-
lieves that the proposed identification is in error for
statistical or other substantive reasons, the principal
may provide supporting evidence to the local edu-
cational agency, which the agency shall consider be-
fore making a final determination.
‘‘(5) TIME
LIMITS.—Not later than 30 days
after a local educational agency makes its initial de-
termination that a school served by the agency and
receiving assistance under this part is eligible for
school improvement, the local educational agency
shall make public a final determination on the status
of the school.
‘‘(6) NOTIFICATION TO PARENTS.—A local edu-
cational agency shall, in an easily understandable
format, and in the 3 languages, other than English,
spoken by the greatest number of individuals in the
area served by the local educational agency, provide
in writing to parents of each student in an elemen-
tary school or a secondary school identified for
school improvement—
‘‘(A) an explanation of what the school im-
provement identification means, and how the
school identified for improvement compares in
terms of academic performance to other elemen-
tary schools or secondary schools served by the
local educational agency and the State edu-
cational agency;
‘‘(B) the reasons for such identification;
‘‘(C) the data on which such identification
was based;
‘‘(D) an explanation of what the school
identified for improvement is doing to address
the problem of low achievement;
‘‘(E) an explanation of what the local edu-
cational agency or State educational agency is
doing to help the school address its achievement
problems, including the amounts and types of
professional development being provided to the
instructional staff in such school, the amount of
any financial assistance being provided by the
State educational agency under section 1003,
and the activities that are being provided with
such financial assistance;
‘‘(F) an explanation of how parents de-
scribed in this paragraph can become involved
in addressing the academic issues that caused
the school to be identified as in need of im-
provement; and
‘‘(G) an explanation of the right of par-
ents, pursuant to paragraph (7), to transfer
their child to a higher performing public school,
including a public charter school or magnet
school, that is not in school improvement, and
how such transfer shall operate.
‘‘(7) PUBLIC SCHOOL CHOICE OPTION.—
‘‘(A) SCHOOLS IN IMPROVEMENT.—
‘‘(i) SCHOOLS
IN
IMPROVEMENT
ON
OR BEFORE DATE OF ENACTMENT.—In the
case of a school identified for improvement
on or before the date of enactment of the
Public Education Reinvestment, Reinven-
tion, and Responsibility Act (Three R’s), a
local educational agency shall not later
than 18 months after such date of enact-
ment provide all students enrolled in the
school an option to transfer (consistent
with State and local law, policy, and prac-
tices related to public school choice and
local pupil transfer) to any other higher
performing public school, including a pub-
lic charter or magnet school, that—
‘‘(I) has not been identified for
school improvement or corrective ac-
tion;
‘‘(II) is not at risk of being iden-
tified for school improvement or cor-
rective action within the succeeding
academic year; and
‘‘(III) has not been in improve-
ment or corrective action at any time
during the 2 preceding academic
years.
‘‘(ii) SCHOOLS
IDENTIFIED
AFTER
DATE OF ENACTMENT.—In the case of a
school identified for improvement after the
date of enactment of the Public Education
Reinvestment, Reinvention, and Responsi-
bility Act (Three R’s), a local educational
agency shall not later than 12 months
after the date on which a local educational
agency identifies the school for improve-
ment provide all students enrolled in the
school with the transfer option described in
clause (i).
‘‘(B) COOPERATIVE
AGREEMENT.—If all
public schools served by the local educational
agency to which a child may transfer under
clause (i) are identified for improvement, or, if
public schools in the agency’s jurisdiction that
are not in improvement cannot accommodate all
of the students who are eligible to transfer be-
cause of capacity, or State or local law, policy,
and practices related to public school choice and
local pupil transfer, the local educational agency
shall, to the extent practicable, establish a coop-
erative agreement with other local educational
agencies that serve geographic areas in prox-
imity to the geographic area served by the local
educational agency, to enable a child to transfer
(consistent with State and local law, policy, and
practices related to public school choice and
local pupil transfer) to a school served by such
other local educational agencies that meets the
requirements described in subparagraph (A)(i).
‘‘(C) TRANSPORTATION.—A local edu-
cational agency that serves a school that has
been identified for improvement shall provide
transportation services or the costs of such
services for children of parents who choose to
transfer their children pursuant to this para-
graph to a different school. Not more than 10
percent of the funds allocated to a local edu-
cational agency under this part may be used to
provide such transportation services or costs of
such services.
‘‘(D) CONTINUATION
OPTION.—Once a
school is no longer identified for improvement
or in corrective action, the local educational
agency shall continue to provide public school
choice as an option to students in such schools
for a period of not less than 2 years.
‘‘(8) SCHOOL PLAN.—(A) Each school identified
under paragraph (1) for school improvement shall,
not later than 3 months after being so identified, de-
velop or revise a school plan, in consultation with
parents, school staff, the local educational agency
serving the school, the local school board, and other
outside experts, for approval by such local edu-
cational agency. The school plan shall—
‘‘(i) incorporate scientifically based re-
search strategies that strengthen the core aca-
demic programs in the school and address the
specific academic issues that caused the school
to be identified for school improvement;
‘‘(ii) adopt policies and practices in the
school’s core academic program that have the
greatest likelihood of ensuring that all groups
of 
students 
specified 
in 
section
1111(b)(2)(B)(iv) enrolled in the school will
meet or exceed the State’s proficient level of
performance on the assessment required in sec-
tion 1111(b)(4) within 10 years of the date of
enactment of the Public Education Reinvest-
ment, Reinvention, and Responsibility Act
(Three R’s);
‘‘(iii) assure that the school will reserve
not less than 10 percent of the funds made
available to it under this part for each fiscal
year that the school is in school improvement
for the purpose of providing the school’s teach-
ers and principal high quality professional de-
velopment that—
‘‘(I) directly addresses the academic
achievement problem that caused the
school to be identified for school improve-
ment; and
‘‘(II) meets the requirements for pro-
fessional development activities under sec-
tion 1119;
‘‘(iv) specify how the funds described in
clause (iii) will be used to remove the school
from school improvement status;
‘‘(v) establish specific annual, numerical
progress goals for each group of students speci-
fied in section 1111(b)(2)(B)(iv) enrolled in the
school that will ensure that all such groups of
students meet or exceed the State’s proficient
standard level of performance within 10 years
of the date of enactment of the Public Edu-
cation Reinvestment, Reinvention, and Respon-
sibility Act (Three R’s);
‘‘(vi) identify how the school will provide
written notification to parents of each child en-
rolled in such school, in a format and, to the
extent practicable, in a language such parents
can understand; and
‘‘(vii) specify the responsibilities of the
school, the local educational agency, and the
State educational agency serving such school
under the plan.
‘‘(B) The local educational agency described in
subparagraph (A)(vi) may condition approval of a
school plan on inclusion of 1 or more of the correc-
tive actions specified in paragraph (10)(C).
‘‘(C) A school shall implement the school plan
or revised plan expeditiously, but not later than the
beginning of the school year following the school
year in which the school was identified for improve-
ment.
‘‘(D) The local educational agency described in
subparagraph (A)(vi) shall establish a peer review
process to assist with review of a school improve-
ment plan prepared by the school served by the local
educational agency, promptly review the school plan,
work with the school as necessary, and approve the
school plan if the school plan meets the require-
ments of this paragraph.
‘‘(9) TECHNICAL ASSISTANCE.—(A) For each
school identified for school improvement under para-
‘‘(ii) shall take corrective action with
respect to any school served by the local
educational agency that fails to make ade-
quate yearly progress, as defined by the
State under section 1111(b)(2)(B), after
the end of the second year following the
school year in which the school was identi-
fied under paragraph (1); and
‘‘(iii) shall continue to provide tech-
nical assistance while instituting any cor-
rective action under clause (i) or (ii).
‘‘(B) As used in this paragraph, the term
‘corrective action’ means action, consistent with
State and local law, that—
‘‘(i) substantially and directly re-
sponds to—
‘‘(I) the consistent academic fail-
ure of a school that caused the local
educational agency to take such ac-
tion; and
‘‘(II) any underlying staffing,
curricula, or other problem in the
school; and
‘‘(ii) is designed to increase substan-
tially the likelihood that students enrolled
in the school subject to corrective action
will perform at the proficient and advanced
performance levels.
‘‘(C) In the case of a school described in
subparagraph (A)(ii), the local educational
agency shall take not less than 1 of the fol-
lowing corrective actions:
‘‘(i) Withhold funds from the school.
‘‘(ii) Make alternative governance ar-
rangements, including reopening the school
as a public charter school.
‘‘(iii) Reconstitute the relevant school
staff.
‘‘(iv)(I) Authorize students to transfer
to other higher performing public schools
served by the local educational agency, in-
cluding public charter and magnet schools.
‘‘(II) Provide such students transpor-
tation services, or the costs of transpor-
tation, to such schools (except that such
funds used to provide transportation serv-
ices or costs of transportation shall not ex-
ceed 10 percent of the amount authorized
under section 1122(a)(2)).
‘‘(III) Take not less than 1 additional
action described under this subparagraph.
‘‘(v) Institute and fully implement a
new curriculum, including appropriate pro-
fessional development for all relevant staff,
that is based upon scientifically based re-
search and offers substantial promise of
improving educational achievement for low-
performing students.
‘‘(D) A local educational agency may delay,
for a period not to exceed 1 year, implementa-
tion of corrective action only if the failure to
make adequate yearly progress was justified
due to exceptional or uncontrollable cir-
cumstances, such as a natural disaster or a pre-
cipitous and unforeseen decline in the financial
resources of the local educational agency or
school.
‘‘(E) The local educational agency shall
publish and disseminate to the public and to
the parents of each student enrolled in a school
subject to corrective action, in a format and, to
the extent practicable, in a language that the
parents can understand, information regarding
any corrective action the local educational agen-
cy takes under this paragraph through such
means as the Internet, the media, and public
agencies.
‘‘(F)(i) Before taking corrective action
with respect to any school under this para-
graph, a local educational agency shall provide
the school an opportunity to review the school
level data, including assessment data, on which
the proposed determination is made.
‘‘(ii) If the school believes that the pro-
posed determination is in error for statistical or
other substantive reasons, the school principal
may provide supporting evidence to the local
educational agency, which shall consider such
evidence before making a final determination.
‘‘(G) TIME
LIMITS.—Not later than 30
days after the local educational agency makes
its initial determination that a school served by
the local educational agency and receiving as-
sistance under this part is eligible for corrective
action, the local educational agency shall make
a final and public determination on the status
of the school.
‘‘(11) STATE EDUCATIONAL AGENCY RESPON-
SIBILITIES.—If a State educational agency deter-
mines that a local educational agency failed to carry
out its responsibilities under this section, or deter-
mines that, after 1 year of implementation of the
corrective action, such action has not resulted in suf-
ficient progress in increased student performance,
the State educational agency shall take such action
as the agency finds necessary, including designating
a course of corrective action described in paragraph
(10)(C), consistent with this section, to improve the
affected schools and to ensure that the local edu-
cational agency carries out the local educational
agency’s responsibilities under this section.
‘‘(12) SPECIAL
RULES.—Schools that, for at
least 2 of the 3 years following identification under
paragraph (1), make adequate yearly progress to-
ward meeting the State’s proficient and advanced
levels of performance shall no longer be identified
for school improvement.’’.
(c) STATE REVIEW AND LOCAL EDUCATIONAL AGEN-
CY IMPROVEMENT.—Section 1116(d) (20 U.S.C. 6317(d))
is amended to read as follows:
‘‘(d) STATE REVIEW
AND LOCAL EDUCATIONAL
AGENCY IMPROVEMENT.—
‘‘(1) IN GENERAL.—A State educational agency
shall annually review the progress of each local edu-
cational agency within the State receiving funds
under this part to determine whether schools served
by such agencies and receiving assistance under this
part are making adequate yearly progress, as de-
fined in section 1111(b)(2), toward meeting the
State’s student performance standards and to deter-
mine whether each local educational agency is car-
rying out its responsibilities under sections 1116 and
1117.
‘‘(2) IDENTIFICATION OF LOCAL EDUCATIONAL
AGENCY FOR IMPROVEMENT.—A State educational
agency shall identify for improvement any local edu-
cational agency that—
‘‘(A) for 2 consecutive years fails to make
adequate yearly progress as defined in the
State’s plan under section 1111(b)(2); or
‘‘(B) had been identified for, or was eligi-
ble for, improvement under this section as this
section was in effect on the day preceding the
date of enactment of the Public Education Re-
investment, Reinvention, and Responsibility Act
(Three R’s).
‘‘(3) TRANSITION.—The 2-year period described
in paragraph (2)(A) shall include any continuous pe-
riod of time immediately preceding the date of the
enactment of the Public Education Reinvestment,
Reinvention, and Responsibility Act (Three R’s) dur-
ing which a local educational agency did not make
adequate yearly progress as defined in the State’s
plan, as such plan was in effect on the day preceding
the date of the enactment of the Public Education
Reinvestment, Reinvention, and Responsibility Act
(Three R’s).
‘‘(4) TARGETED
ASSISTANCE
SCHOOLS.—For
purposes of targeted assistance schools within a local
educational agency, a State educational agency may
choose to review the progress of only the students in
such schools who are served under this part.
‘‘(5) OPPORTUNITY TO REVIEW AND PRESENT
EVIDENCE.—(A) Before identifying a local edu-
cational agency for improvement under paragraph
(2), a State educational agency shall provide the
local educational agency with an opportunity to re-
view the local educational agency data, including as-
sessment data, on which the proposed identification
is based.
‘‘(B) If the local educational agency believes
that the proposed identification is in error for statis-
tical or other substantive reasons, the local edu-
cational agency may provide supporting evidence to
the State educational agency, which the State edu-
cational agency shall consider before making a final
determination.
‘‘(6) TIME
LIMITS.—Not later than 45 days
after the State educational agency makes its initial
determination that a local educational agency within
the State and receiving assistance under this part is
eligible for improvement, the State educational agen-
cy shall make public a final determination on the
status of the local educational agency.
‘‘(7) NOTIFICATION TO PARENTS.—The State
educational agency shall promptly notify parents of
each student enrolled in a school served by a local
educational agency identified for improvement, in a
format, and to the extent practicable, in a language
the parents can understand, of the reasons for such
agency’s identification and how parents can partici-
pate in upgrading the quality of the local edu-
cational agency.
‘‘(8) LOCAL
EDUCATIONAL
AGENCY
REVI-
SIONS.—
‘‘(A) IN GENERAL.—Each local educational
agency identified under paragraph (2) shall, not
later than 3 months after being so identified,
develop or revise a local educational agency
plan, in consultation with the local school
board, parents, teachers, school staff, and oth-
ers, for approval by the State educational agen-
cy. Such plan shall—
‘‘(i) incorporate scientifically based re-
search strategies that strengthen the core
academic program in the local educational
agency;
‘‘(ii) identify specific annual numerical
academic achievement objectives in at least
the areas of mathematics and English lan-
guage arts that the local educational agen-
cy will meet, with such objectives being cal-
culated in a manner such that their
achievement will ensure that each group of
students enrolled in each school served by
the local educational agency will meet or
exceed the proficient standard level of per-
formance in assessments required under
section 1111(b)(4) within 10 years of the
date of enactment of the Public Education
Reinvestment, Reinvention, and Responsi-
bility Act (Three R’s); and
‘‘(iii) assure that the local educational
agency will—
‘‘(I) reserve not less than 10 per-
cent of the funds made available to
the local educational agency under
this part for each fiscal year that the
agency is in improvement for the pur-
pose of providing high quality profes-
sional development to teachers and
principals at schools served by the
agency and receiving funds under this
part that directly address the aca-
demic 
achievement 
problem 
that
caused the local educational agency to
be identified for improvement and
shall be in keeping with the definition
of professional development provided
in section 1119; and
‘‘(II) the improvement plan shall
specify how these funds will be used
to remove the local educational agency
from improvement status;
‘‘(iv) identify how the local edu-
cational agency will provide written notifi-
cation to parents described in paragraph
(7) in a format, and to the extent prac-
ticable in a language, that the parents can
understand, pursuant to paragraph (7);
‘‘(v) specify the responsibilities of the
State educational agency and the local edu-
cational agency under the plan; and
‘‘(vi) include a review of the local edu-
cational agency budget to ensure that re-
sources are focused on those activities that
are most likely to improve student achieve-
ment and to remove the agency from im-
provement status.
‘‘(B) PEER
REVIEW.—The State edu-
cational agency shall establish a peer review
process to assist with the review of the local
educational agency improvement plan, promptly
review the plan, work with the local educational
agency as necessary, and approve the plan if
the plan meets the requirements of this para-
graph.
‘‘(C) DEADLINE FOR IMPLEMENTATION.—
The local educational agency shall implement
the local educational agency plan or revised
plan expeditiously, but not later than the begin-
ning of the school year following the school year
in which the agency was identified for improve-
ment.
‘‘(D) RESOURCES REALLOCATION.—If the
local educational agency budget fails to allocate
resources, 
consistent 
with, 
subparagraph
(A)(iv), the State educational agency may direct
the local educational agency to reallocate re-
sources to more effective activities.
‘‘(9) STATE EDUCATIONAL AGENCY RESPONSI-
BILITY.—For each local educational agency identi-
fied under paragraph (2), the State educational
agency shall provide technical or other assistance, if
requested, as authorized under section 1117, to bet-
ter enable the local educational agency—
‘‘(A) to develop and implement the local
educational agency plan or revised plan as ap-
proved by the State educational agency con-
sistent with the requirements of this section;
and
‘‘(B) to work with schools served by the
local educational agency that are identified for
improvement.
‘‘(10) TECHNICAL ASSISTANCE.—Technical as-
sistance provided by the State educational agency—
‘‘(A) shall include assistance in analyzing
data from the assessments required under sec-
tion 1111(b)(4) to identify and address instruc-
tional problems and solutions;
‘‘(B) shall include assistance in identifying
and implementing scientifically based instruc-
tional strategies and methods that have proven
effective in addressing the specific instructional
issues that caused the local educational agency
to be identified for improvement;
‘‘(C) shall include assistance in analyzing
and revising the local educational agency’s
budget such that the agency’s resources are
more effectively focused on those activities most
likely to increase student achievement and to
remove the agency from improvement status;
and
‘‘(D) may be provided by—
‘‘(i) the State educational agency; or
‘‘(ii) with the local educational agen-
cy’s approval, by an institution of higher
education (in full compliance with all the
reporting provisions of title II of the High-
er Education Act of 1965), a private not-
for-profit or for-profit organization, an
educational service agency, the recipient of
a Federal contract or cooperative agree-
ment as described under section 7005, or
any other entity with experience in helping
schools improve achievement.
‘‘(11) RESOURCES REALLOCATION.—The State
educational agency may, as a condition of providing
the local educational agency with technical assist-
ance and financial support in developing and car-
rying out an improvement plan, require that the
local educational agency reallocate resources away
from ineffective or inefficient activities to activities
that, through scientific research, have proven to
have the greatest impact on increasing student
achievement and closing the achievement gap be-
tween groups of students.
‘‘(12) CORRECTIVE ACTION.—In order to help
students served under this part meet challenging
State standards, each State educational agency shall
implement a system of corrective action in accord-
ance with the following:
‘‘(A) After providing technical assistance
under paragraph (10), and subject to subpara-
graph (D), the State educational agency—
‘‘(i) shall take corrective action with
respect to any local educational agency
that 
fails 
to 
make 
adequate 
yearly
progress, as defined by the State, after the
end of the second year following its identi-
fication under paragraph (2); and
‘‘(ii) shall continue to provide tech-
nical assistance while instituting any cor-
rective action under clause (i) or (ii).
‘‘(B) As used in this paragraph, the term
‘corrective action’ means action, consistent with
State law, that—
‘‘(i) substantially and directly re-
sponds to—
‘‘(I) the consistent academic fail-
ure of schools served by a local edu-
cational agency that caused the State
educational agency to take such action
with respect to the local educational
agency; and
‘‘(II) any underlying staffing,
curricular, or other problem in the
schools served by the local educational
agency; and
‘‘(ii) is designed to meet the goal of
having all students served under this part
perform at the proficient and advanced
performance levels.
‘‘(C) In the case of a local educational
agency described in subparagraph (A)(ii), the
State educational agency shall take not less
than 1 of the following corrective actions:
‘‘(i) Withhold funds from the local
educational agency.
‘‘(ii) Reconstitute the relevant local
educational agency personnel.
‘‘(iii) Remove particular schools from
the area served by the local educational
agency, and establish alternative arrange-
ments for public governance and super-
vision of such schools.
‘‘(iv) Appoint, through the State edu-
cational agency, a receiver or trustee to ad-
minister the affairs of the local educational
agency in place of the local educational
agency’s superintendent and school board.
‘‘(v) Abolish or restructure the local
educational agency.
‘‘(vi)(I) Authorize students to transfer
from a school operated by the local edu-
cational agency to a higher performing
public school, including a public charter or
magnet school, operated by another local
educational agency.
‘‘(II) Provide students described in
subclause (I) transportation services, or
the costs of transportation, not to exceed
10 percent of the funds allocated to a local
educational agency under this part, to such
higher performing schools or public charter
schools.
‘‘(III) Take not less than 1 additional
action described under this subparagraph.
‘‘(D) Prior to implementing any corrective
action, the State educational agency shall pro-
vide notice and an opportunity for a hearing to
the affected local educational agency, if State
law provides for such notice and opportunity.
‘‘(E) Not later than 45 days after the
State educational agency makes its initial deter-
mination that a local educational agency in the
State and receiving assistance under this part is
eligible for improvement, the State educational
agency shall make public a final determination
on the status of the local educational agency.
‘‘(F) The State educational agency shall
publish and disseminate to parents described in
paragraph (7) and the public information re-
garding any corrective action the State edu-
cational agency takes under this paragraph
through such means as the Internet, the media,
and public agencies.
‘‘(G) The State educational agency may
delay, for a period not to exceed 1 year, imple-
mentation of corrective action if the local edu-
cational agency’s failure to make adequate year-
ly progress was justified due to exceptional or
uncontrollable circumstances, such as a natural
disaster or a precipitous and unforeseen decline
in the financial resources of the local edu-
cational agency or schools served by the local
educational agency.’’.
SEC. 110. STATE ASSISTANCE FOR SCHOOL SUPPORT AND
IMPROVEMENT.
Section 1117 (20 U.S.C. 6318) is amended to read
as follows:
‘‘SEC. 1117. STATE ASSISTANCE FOR SCHOOL SUPPORT AND
IMPROVEMENT.
‘‘(a) SYSTEM FOR SUPPORT.—Using funds allocated
under section 1003(a)(1), each State educational agency
shall establish a statewide system of intensive and sus-
tained support and improvement for local educational
agencies, elementary schools, and secondary schools re-
ceiving funds under this part, in order to ensure that all
groups of students specified in section 1111 and attending
such schools meet or exceed the proficient standard level
performance on the assessments required by section
1111(b)(4) within 10 years of the date of enactment of
the Public Education Reinvestment, Reinvention, and Re-
sponsibility Act (Three R’s).
‘‘(b) PRIORITIES.—In carrying out this section, a
State educational agency shall—
‘‘(1) first, provide support and assistance to
local educational agencies and schools subject to cor-
rection action under section 1116, in accordance
with section 1116(c)(11), for which a local edu-
cational agency has failed to carry out its respon-
sibilities under section 1116(c) (9) and (10);
‘‘(2) second, provide support and assistance to
local educational agencies identified as in need of
improvement under section 1116, and assist elemen-
tary schools and secondary schools; and
‘‘(3) third, provide support and assistance to
local educational agencies and schools participating
under this part that are at risk of being identified
as being in need of improvement within the next
academic year.
‘‘(c) APPROACHES.—In order to achieve the purpose
described in subsection (a), each statewide system shall
provide technical assistance and support through ap-
proaches such as—
‘‘(1) school support teams, composed of individ-
uals who are knowledgeable about scientifically
based research, teaching and learning practices, and
particularly about strategies for improving edu-
cational results for low-achieving children; and
‘‘(2) designating and using Distinguished Edu-
cators, who are chosen from schools served under
this part that have been especially successful in im-
proving academic achievement.
‘‘(d) FUNDS.—Each State educational agency—
‘‘(1) shall use funds reserved under section
1003(a)(1), but not used under section 1003(a)(2),
to carry out this section; and
‘‘(2) may use State administrative funds au-
thorized under section 1703(c) to carry out this sec-
tion.
‘‘(e) ALTERNATIVES.—The State educational agency
may—
‘‘(1) devise additional approaches to providing
the technical assistance and support described in
subsection (c), such as providing assistance through
institutions of higher education, educational service
agencies, or other local consortia; and
‘‘(2) seek approval from the Secretary to use
funds under section 1003(a)(2) for such approaches
as part of the State plan.’’.
SEC. 111. PARENTAL INVOLVEMENT CHANGES.
(a) LOCAL EDUCATIONAL AGENCY POLICY.—Section
1118(a) (20 U.S.C. 6319(a)) is amended—
(1) in paragraph (1), by striking ‘‘programs,
activities, and procedures’’ and inserting ‘‘activities
and procedures’’;
(2) in paragraph (2), by striking subparagraphs
(E) and (F) and inserting the following:
‘‘(E) conduct, with the involvement of par-
ents, an annual evaluation of the content and
effectiveness of the parental involvement policy
in improving the academic quality of the schools
served under this part;
‘‘(F) involve parents in the activities of the
schools served under this part; and
‘‘(G) promote consumer friendly environ-
ments within the local educational agency and
schools served under this part.’’;
(3) in paragraph (3), by adding at the end the
following new subparagraph:
‘‘(C) Not less than 90 percent of the funds re-
served under subparagraph (A) shall be distributed
to schools served under this part.’’.
(b) 
NOTICE.—Section 
1118(b)(1) 
(20 
U.S.C.
6319(b)(1)) is amended by inserting after the first sen-
tence ‘‘Parents shall be notified of the policy in a format,
and to the extent practicable in a language, that the par-
ents can understand.’’.
(c) PARENTAL INVOLVEMENT.—Section 1118(c)(4)
(20 U.S.C. 6319(c)(4)) is amended—
(1) in subparagraph (B), by striking ‘‘school
performance 
profiles 
required 
under 
section
1116(a)(3)’’ and inserting ‘‘school reports described
under section 4401’’;
(2) by redesignating subparagraphs (D) and
(E) as subparagraphs (F) and (G), respectively;
(3) by inserting after subparagraph (C) the fol-
lowing:
‘‘(D) notice of the school’s designation as
a school in need of improvement under section
1116(b), if applicable, and a clear explanation
of what such designation means;
‘‘(E) notice of corrective action taken
against the school under section 1116(c)(9) and
1116(d)(12), if applicable, and a clear expla-
nation of what such action means;’’; and
(4) in subparagraph (G) (as redesignated by
paragraph (2)), by striking ‘‘subparagraph (D)’’ and
inserting ‘‘subparagraph (F)’’.
(d) BUILDING CAPACITY FOR INVOLVEMENT.—Sec-
tion 1118(e) (20 U.S.C 6319(e)) is amended—
(1) in paragraph (1), by striking ‘‘National
Educational Goals,’’;
(2) by redesignating paragraphs (14) and (15)
as paragraphs (16) and (17), respectively;
(3) by inserting after paragraph (13) the fol-
lowing:
‘‘(14) may establish a district wide parent advi-
sory council to advise on all matters related to pa-
rental involvement in programs supported under this
part;’’; and
(4) by redesignating paragraph (5) as para-
graph (15) and transferring such paragraph to fol-
low paragraph 14 (as redesignated by paragraph
(3));
(5) by inserting after paragraph (4) the fol-
lowing:
‘‘(5) shall expand the use of electronic commu-
nications among teachers, students, and parents,
such as through the use of websites and e-mail com-
munications;’’;
(6) in paragraph (8), by inserting ‘‘, to the ex-
tent practicable, in a language and format the par-
ent can understand’’ before the semicolon; and
(7) in paragraph (15) (as redesignated by para-
graph (4)), by striking ‘‘shall’’ and inserting ‘‘may’’.
(e) ACCESSIBILITY.—Section 1118(f) (20 U.S.C.
6319(f)) is amended by striking ‘‘, including’’ and all that
follows through the period and inserting ‘‘and of parents
of migratory children, including providing information and
school reports required under section 1111 and described
in section 4401 in a language and form such parents un-
derstand.’’.
SEC. 112. QUALIFICATIONS FOR TEACHERS AND PARA-
PROFESSIONALS.
Title I of the Act (20 U.S.C. 6301 et seq.) is
amended—
(1) by redesignating section 1119 (20 U.S.C.
6320) as section 1119A; and
(2) by inserting after section 1118 the fol-
lowing:
‘‘SEC. 1119. QUALIFICATIONS FOR TEACHERS AND PARA-
PROFESSIONALS.
‘‘(a) IN GENERAL.—Each State educational agency
receiving assistance under this part shall develop and sub-
mit to the Secretary a plan to ensure that all teachers
teaching within the State are fully qualified, as defined
in section 2002(1), not later than December 31, 2005.
Such plan shall include an assurance that the State edu-
cational agency will require each local educational agency
and school receiving funds under this part publicly to re-
port the annual progress with respect to the local edu-
cational agency’s and school’s performance in increasing
the percentage of classes in core academic areas taught
by fully qualified teachers.
‘‘(b) NEW PARAPROFESSIONALS.—
‘‘(1) IN
GENERAL.—Each local educational
agency receiving assistance under this part shall en-
sure that all paraprofessionals hired 1 year or more
after the effective date of the Public Education Re-
investment, Reinvention, and Responsibility Act
(Three R’s) and working in a program supported
with funds under this part shall—
‘‘(A) have completed at least 2 years of
study at an institution of higher education;
‘‘(B) have obtained an associate’s (or high-
er) degree; or
‘‘(C) have met a rigorous standard of qual-
ity that demonstrates, through a formal
assessment—
‘‘(i) knowledge of, and the ability to
assist in instructing reading, writing, and
math; or
‘‘(ii) knowledge of, and the ability to
assist in instructing reading readiness,
writing readiness, and math readiness, as
appropriate.
‘‘(2) CLARIFICATION.—For purposes of para-
graph (1)(C), the receipt of a high school diploma
(or its recognized equivalent) shall be necessary but
not by itself sufficient to satisfy the requirements of
such paragraph.
‘‘(c) EXISTING PARAPROFESSIONALS.—Each local
educational agency receiving assistance under this part
shall ensure that all paraprofessionals hired before the
date that is 1 year after the effective date of the Public
Education Reinvestment, Reinvention, and Responsibility
Act (Three R’s) and working in a program supported with
funds under this part shall, not later than 3 years after
such effective date, satisfy the requirements of subsection
(b).
‘‘(d) EXCEPTIONS FOR TRANSLATION AND PAREN-
TAL INVOLVEMENT ACTIVITIES.—Subsections (b) and (c)
shall not apply to a paraprofessional—
‘‘(A) who is proficient in English and a
language other than English and who provides
services primarily to enhance the participation
of children in programs under this part by act-
ing as a translator; or
‘‘(B) whose duties consist solely of con-
ducting parental involvement activities con-
sistent with section 1118.
‘‘(e) GENERAL
REQUIREMENT
FOR
ALL
PARA-
PROFESSIONALS.—Each local educational agency receiving
assistance under this part shall ensure that all paraprofes-
sionals working in a program supported with funds under
this part, regardless of the paraprofessional’s hiring date,
possess a high school diploma or its recognized equivalent.
‘‘(f) DUTIES OF PARAPROFESSIONALS.—
‘‘(1) IN
GENERAL.—Each local educational
agency receiving assistance under this part shall en-
sure that a paraprofessional working in a program
supported with funds under this part is not assigned
a duty inconsistent with this subsection.
‘‘(2) RESPONSIBILITIES
PARAPROFESSIONALS
MAY BE ASSIGNED.—A paraprofessional described in
paragraph (1) may only be assigned—
‘‘(A) to provide one-on-one tutoring for eli-
gible students, if the tutoring is scheduled at a
time when a student would not otherwise re-
ceive instruction from a teacher;
‘‘(B) to assist with classroom management,
such as organizing instructional and other ma-
terials;
‘‘(C) to provide assistance in a computer
laboratory;
‘‘(D) to conduct parental involvement ac-
tivities;
‘‘(E) to provide support in a library or
media center;
‘‘(F) to act as a translator; or
‘‘(G) to provide instructional services to
students;
‘‘(3) ADDITIONAL LIMITATIONS.—A paraprofes-
sional described in paragraph (1)—
‘‘(A) may not provide any instructional
service to a student unless the paraprofessional
is working under the direct supervision of a
fully qualified teacher; and
‘‘(B) may not provide instructional services
to students in the area of reading, writing, or
math unless the paraprofessional has dem-
onstrated, through a State or local assessment,
the ability effectively to carry out reading, writ-
ing, or math instruction.
‘‘(g) USE OF FUNDS.—
‘‘(1) PROFESSIONAL
DEVELOPMENT.—A local
educational agency receiving funds under this part
may use such funds to support ongoing training and
professional development to assist teachers and
paraprofessionals in satisfying the requirements of
this section.
‘‘(2) LIMITATION ON USE OF FUNDS FOR PARA-
PROFESSIONALS.—
‘‘(A) IN
GENERAL.—Beginning on and
after the effective date of the Public Education
Reinvestment, Reinvention, and Reponsibility
Act (Three R’s), a local educational agency may
not use funds received under this part to fund
any paraprofessional hired after such date un-
less the hiring is to fill a vacancy created by the
departure of another paraprofessional funded
under this part and such new paraprofessional
satisfies the requirements of subsection (b) or
(c).
‘‘(B) 
EXCEPTION.—Subparagraph 
(A)
shall not apply for a fiscal year to a local edu-
cational agency that can demonstrate to the
State that all teachers under the jurisdiction of
the agency are fully qualified.
‘‘(h) VERIFICATION OF COMPLIANCE.—
‘‘(1) IN
GENERAL.—In verifying compliance
with this section, each local educational agency at a
minimum shall require that the principal of each
school operating a program under section 1114 or
1115 annually attest in writing as to whether such
school is in compliance with the requirements of this
section.
‘‘(2) AVAILABILITY OF INFORMATION.—Copies
of attestations under paragraph (1)—
‘‘(A) shall be maintained at each school op-
erating a program under section 1114 or 1115
and at the main office of the local educational
agency; and
‘‘(B) shall be available to any member of
the general public upon request.’’.
100
SEC. 113. PROFESSIONAL DEVELOPMENT.
Section 1119A (as redesignated by section 112(a)) is
amended—
(1) by amending subsection (a) to read as fol-
lows:
‘‘(a) PURPOSE.—The purpose of this section is to as-
sist each local educational agency receiving assistance
under this part in increasing the academic achievement
of 
eligible 
children 
(as 
identified 
under 
section
1115(b)(1)(B)) (in this section referred to as eligible chil-
dren) through improved teacher quality.’’;
(2) in subsection (b)—
(A) by amending paragraph (1) to read as
follows:
‘‘(1) REQUIRED ACTIVITIES.—Each local edu-
cational agency receiving assistance under this part
shall provide professional development activities
under this section that shall—
‘‘(A) give teachers, principals, and admin-
istrators the knowledge and skills to provide eli-
gible children with the opportunity to meet
challenging State or local content standards
and student performance standards;
‘‘(B) support the recruiting, hiring, and
training of fully qualified teachers, including
101
teachers fully qualified through State and local
alternative routes;
‘‘(C) advance teacher understanding of ef-
fective instructional strategies, based on sci-
entifically based research, for improving eligible
children achievement, at a minimum, in mathe-
matics, science, and English language arts;
‘‘(D) be directly related to the curricula
and content areas in which the teacher provides
instruction;
‘‘(E) be designed to enhance the ability of
a teacher to understand and use the State’s
standards for the subject area in which the
teacher provides instruction;
‘‘(F) be tied to scientifically based research
that demonstrates the effectiveness of such pro-
fessional development activities or programs in
increasing eligible children achievement or sub-
stantially increasing the knowledge and teach-
ing skills of teachers;
‘‘(G) be of sufficient intensity and duration
(not to include 1-day or short-term workshops
and conferences) to have a positive and lasting
impact on the teacher’s performance in the
classroom, except that this subparagraph shall
102
not apply to an activity if such activity is one
component of a long-term comprehensive pro-
fessional development plan established by the
teacher and the teacher’s supervisor based upon
an assessment of their needs, their eligible chil-
dren’s needs, and the needs of the local edu-
cational agency;
‘‘(H) be developed with extensive participa-
tion of teachers, principals, parents, administra-
tors of schools, and local school boards of
schools to be served under this part;
‘‘(I) to the extent appropriate, provide
training for teachers in the use of technology so
that technology and its applications are effec-
tively used in the classroom to improve teaching
and learning in the curricula and academic con-
tent areas in which the teachers provide in-
struction;
‘‘(J) as a whole, be regularly evaluated for
such activities’ impact on increased teacher ef-
fectiveness and improved student achievement,
with the findings of such evaluations used to
improve the quality of professional development;
and
103
‘‘(K) include strategies for identifying and
eliminating gender and racial bias in instruc-
tional materials, methods, and practices.’’;
(B) in paragraph (2)—
(i) in subparagraph (A), by inserting
‘‘and data to inform and instruct class-
room practice’’ before the semicolon;
(ii) by striking subparagraphs (D)
and (G);
(iii) by redesignating subparagraphs
(E), (F), (H), and (I), as subparagraphs
(D), (E), (F) and (G), respectively; and
(iv) by inserting after subparagraph
(G) (as redesignated by clause (iii)) the
following new subparagraph:
‘‘(H) instruction in the ways that teachers,
principals, and guidance counselors can work
with parents and students from groups, such as
females and minorities, that are underrep-
resented in careers in mathematics, science, en-
gineering, and technology, to encourage and
maintain the interest of such students in those
careers.’’;
‘‘(2) OPTIONAL ACTIVITIES.—Such professional
development activities may include—
104
‘‘(A) instruction in the use of data and as-
sessments to inform and instruct classroom
practice;
‘‘(B) instruction in ways that teachers,
principals, pupil services personnel, and school
administrators may work more effectively with
parents;
‘‘(C) the forming of partnerships with in-
stitutions of higher education to establish
school-based teacher training programs that
provide prospective teachers and novice teachers
with an opportunity to work under the guidance
of experienced teachers and college faculty;
‘‘(D) the creation of career ladder pro-
grams for paraprofessionals (assisting teachers
under this part) to obtain the education nec-
essary for such paraprofessionals to become li-
censed and certified teachers;
‘‘(E) instruction in ways to teach special
needs children;
‘‘(F) joint professional development activi-
ties involving programs under this part, Head
Start, Even Start, or State-run preschool pro-
gram personnel;
105
‘‘(G) 
instruction 
in 
experiential-based
teaching methods such as service or applied
learning;
‘‘(H) mentoring programs focusing on
changing teacher behaviors and practices to
help novice teachers, including teachers who are
members of a minority group, develop and gain
confidence in their skills, to increase the likeli-
hood that they will continue in the teaching
profession, and generally to improve the quality
of their teaching; and
‘‘(I) instruction in gender-equitable meth-
ods, techniques, and practices.
(3) by striking subsections (f) through (i); and
(4) by adding after subsection (e) the following:
‘‘(f) CONSOLIDATION OF FUNDS.—Funds provided
under this part that are used for professional development
purposes may be consolidated with funds provided under
title II of this Act and other sources.
‘‘(g) DEFINITION.—The term ‘fully qualified’ has the
same meaning given such term in section 2002(1).
SEC. 114. FISCAL REQUIREMENTS.
Section 1120A(a) (20 U.S.C. 6322(a)) is amended by
striking ‘‘section 14501’’ and inserting ‘‘section 8501’’.
106
SEC. 115. COORDINATION REQUIREMENTS.
Section 1120B (20 U.S.C. 6323) is amended—
(1) in subsection (a), by striking ‘‘to the extent
feasible’’ and all that follows through the period and
inserting ‘‘in coordination with local Head Start
agencies, and if feasible, other early childhood devel-
opment programs.’’;
(2) in subsection (b)—
(A) in paragraph (3) by striking ‘‘and’’
after the semicolon;
(B) in paragraph (4) by striking the period
and inserting ‘‘; and’’; and
(C) by adding at the end, the following:
‘‘(5) linking the educational services provided in
such local educational agency with the services pro-
vided in local Head Start agencies.’’.
SEC. 115A. LIMITATIONS ON FUNDS.
Subpart 1 of part A of title I (20 U.S.C. 6311 et
seq.) is amended by inserting after section 1120B (20
U.S.C. 6321) the following:
‘‘SEC. 1120C. LIMITATIONS ON FUNDS.
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of this Act, a local educational agency shall use
funds received under this subpart only to provide instruc-
tion to students, and for services directly related to in-
struction, in preschool through grade 12 to assist eligible
107
children to improve their academic achievement and to
meet achievement standards established by the State.
‘‘(b) PERMISSIBLE AND PROHIBITED ACTIVITIES.—
In this subpart, the term ‘academic instruction’—
‘‘(1) includes—
‘‘(A) the employment of teachers and other
instructional personnel, including providing
teachers and instructional personnel with em-
ployee benefits;
‘‘(B) the extension of academic instruction
beyond the normal school day and year, includ-
ing summer school;
‘‘(C) the provision of instructional services
to pre-kindergarten children to prepare such
children for the transition to kindergarten;
‘‘(D) the purchase of instructional re-
sources, such as books, materials, computers,
and other instructional equipment and wiring to
support instructional equipment;
‘‘(E) the development and administration
of curriculum, educational materials, and as-
sessments;
‘‘(F) the implementation of—
‘‘(i) 
instructional 
interventions 
in
schools in need of improvement; and
108
‘‘(ii) corrective actions to improve stu-
dent achievement; and
‘‘(G) the transportation of students to as-
sist them in improving academic achievement,
except that not more than 10 percent of the
funds made available under this subpart to a
local educational agency shall be used to carry
out this subparagraph;
‘‘(2) but does not include—
‘‘(A) the purchase or provision of janitorial
services and utility costs;
‘‘(B) the construction or operation of fa-
cilities;
‘‘(C) the acquisition of real property;
‘‘(D) costs for food and refreshments; or
‘‘(E) the purchase or lease of vehicles.’’.
SEC. 116. GRANTS FOR THE OUTLYING AREAS AND THE
SECRETARY OF THE INTERIOR.
Section 1121 (20 U.S.C. 6331) is amended to read
as follows:
‘‘Subpart 2—Allocations
‘‘SEC. 1121. GRANTS FOR THE OUTLYING AREAS AND THE
SECRETARY OF THE INTERIOR.
‘‘(a) RESERVATION OF FUNDS.—From the amount
appropriated for payments to States for any fiscal year
109
under section 1002(a), the Secretary shall reserve a total
of 1 percent to provide assistance to—
‘‘(1) the outlying areas on the basis of their re-
spective need for such assistance according to such
criteria as the Secretary determines will best carry
out the purpose of this part; and
‘‘(2) the Secretary of the Interior in the amount
necessary to make payments pursuant to subsection
(c).
‘‘(b) ASSISTANCE TO THE OUTLYING AREAS.—
‘‘(1) IN GENERAL.—From amounts made avail-
able under subsection (a) in each fiscal year, the
Secretary shall make grants to local educational
agencies in the outlying areas (other than the out-
lying areas assisted under paragraph (2)).
‘‘(2) COMPETITIVE GRANTS.—(A) For each fis-
cal year through 2006, the Secretary shall reserve
$5,000,000 from the amounts made available under
subsection (a) to award grants on a competitive
basis, to local educational agencies in the Federated
States of Micronesia, the Republic of the Marshall
Islands, and the Republic of Palau. The Secretary
shall award such grants according to the rec-
ommendations of the Pacific Region Educational
110
Laboratory which shall conduct a competition for
such grants.
‘‘(B) Except as provided in subparagraph (D),
grant funds awarded under this part only may be
used for programs described in this Act, including
teacher training, curriculum development, instruc-
tional materials, or general school improvement and
reform.
‘‘(C) Grant funds awarded under this para-
graph only may be used to provide direct educational
services.
‘‘(D) The Secretary may provide 5 percent of
the amount made available for grants under this
paragraph to pay the administrative costs of the Pa-
cific Region Educational Laboratory regarding ac-
tivities assisted under this paragraph.
‘‘(c) ALLOTMENT TO THE SECRETARY OF THE INTE-
RIOR.—
‘‘(1) IN
GENERAL.—The amount allotted for
payments to the Secretary of the Interior under sub-
section (a)(2) for any fiscal year shall be, as deter-
mined pursuant to criteria established by the Sec-
retary, the amount necessary to meet the special
educational needs of—
111
‘‘(A) Indian children on reservations served
by elementary schools and secondary schools for
Indian children operated or supported by the
Department of the Interior; and
‘‘(B) out-of-State Indian children in ele-
mentary schools and secondary schools in local
educational agencies under special contracts
with the Department of the Interior.
‘‘(2) PAYMENTS.—From the amount allotted
for payments to the Secretary of the Interior under
subsection (a)(2), the Secretary of the Interior shall
make payments to local educational agencies, upon
such terms as the Secretary determines will best
carry out the purposes of this part, with respect to
out-of-State Indian children described in paragraph
(1). The amount of such payment may not exceed,
for each such child, the greater of—
‘‘(A) 40 percent of the average per pupil
expenditure in the State in which the agency is
located; or
‘‘(B) 48 percent of such expenditure in the
United States.
112
‘‘SEC. 1122. AMOUNTS FOR BASIC GRANTS, CONCENTRA-
TION GRANTS, AND TARGETED GRANTS.
‘‘(a) IN GENERAL.—For fiscal years 2002 through
2006, an amount of the appropriations for this part equal
to the appropriation for fiscal year 2001, for section 1124
shall be allocated in accordance with section 1124, and
an amount equal to the appropriation for fiscal year 2001
for section 1124A shall be allocated in accordance with
section 1124A. Any additional appropriations under sec-
tion 1002(a) for any fiscal year, after application of the
preceding sentence, shall be allocated in accordance with
section 1125.
‘‘(b) ADJUSTMENTS WHERE NECESSITATED BY AP-
PROPRIATIONS.—
‘‘(1) IN GENERAL.—If the sums available under
this part for any fiscal year are insufficient to pay
the full amounts that all local educational agencies
in States are eligible to receive under sections 1124,
1124A, and 1125 for such year, the Secretary shall
ratably reduce the allocations to such local edu-
cational agencies, subject to subsections (c) and (d)
of this section.
‘‘(2) ADDITIONAL FUNDS.—If additional funds
become available for making payments under sec-
tions 1124, 1124A, and 1125 for such fiscal year,
allocations that were reduced under paragraph (1)
113
shall be increased on the same basis as they were re-
duced.
‘‘(c) HOLD-HARMLESS AMOUNTS.—
‘‘(1) IN GENERAL.—For each fiscal year, except
as provided in paragraph (2) and subsection (d), the
amount made available to each local educational
agency under each of sections 1124 and 1125 shall
be not less than 95 percent of the previous year’s
amount if the number of children counted for grants
under section 1124 is at least 30 percent of the total
number of children aged 5 to 17 years, inclusive, in
the local educational agency, 90 percent of the pre-
vious year amount if this percentage is between 15
percent and 30 percent, and 85 percent if this per-
centage is below 15 percent.
‘‘(2) SUFFICIENT FUNDS.—If sufficient funds
are appropriated, the hold-homeless amounts de-
scribed in paragraph (1) shall be paid to all local
educational agencies which received grants under
section 1124, 1124A, or 1125 for the preceding fis-
cal year, regardless of whether the local educational
agency meets the minimum eligibility criteria pro-
vided in section 1124(b), 1124A(a)(1)(A), or
1125(a), respectively, except that a local educational
agency which does not meet such minimum eligibility
114
criteria for 5 consecutive years shall no longer be eli-
gible to receive a hold-harmless amount.
‘‘(3) CALCULATION.—In any fiscal year for
which the Secretary calculates grants on the basis of
population data for counties, the Secretary shall
apply the hold-harmless percentages in paragraph
(1) to counties, and, if the Secretary’s allocation for
a county is not sufficient to meet the hold-harmless
requirements of this subsection for every local edu-
cational agency within that county, then the State
educational agency shall reallocate funds proportion-
ately from all other local educational agencies in the
State that are receiving funds in excess of the hold-
harmless amounts specified in this subsection.
‘‘(d) RATABLE REDUCTIONS.—
‘‘(1) IN GENERAL.—If the sums made available
under this part for any fiscal year are insufficient to
pay the full amounts that all States are eligible to
receive under subsection (c) for such year, the Sec-
retary shall ratably reduce such amounts for such
year.
‘‘(2) ADDITIONAL FUNDS.—If additional funds
become available for making payments under sub-
section (c) for such fiscal year, amounts that were
115
reduced under paragraph (1) shall be increased on
the same basis as such amounts reduced.
‘‘(e) DEFINITION.—For the purpose of this section
and sections 1124, 1124A, and 1125, the term ‘State’
means each of the 50 States, the District of Columbia,
and the Commonwealth of Puerto Rico.
‘‘SEC. 1124. BASIC GRANTS TO LOCAL EDUCATIONAL AGEN-
CIES.
‘‘(a) AMOUNT OF GRANTS.—
‘‘(1) GRANTS FOR LOCAL EDUCATIONAL AGEN-
CIES
AND
PUERTO
RICO.—Except as provided in
paragraph (4) and in section 1126, the grant that
a local educational agency is eligible to receive under
this section for a fiscal year is the amount deter-
mined by multiplying—
‘‘(A) the number of children counted under
subsection (c); and
‘‘(B) 40 percent of the average per-pupil
expenditure in the State, except that the
amount determined under this subparagraph
shall not be less than 32 percent, and not more
than 48 percent, of the average per-pupil ex-
penditure in the United States.
‘‘(2) CALCULATION OF GRANTS.—
116
‘‘(A) 
ALLOCATIONS
TO
LOCAL
EDU-
CATIONAL AGENCIES.—The Secretary shall cal-
culate grants under this section on the basis of
the number of children counted under sub-
section (c) for local educational agencies, unless
the Secretary and the Secretary of Commerce
determine that some or all of those data are un-
reliable or that their use would be otherwise in-
appropriate, in which case—
‘‘(i) the 2 Secretaries shall publicly
disclose the reasons for their determination
in detail; and
‘‘(ii) paragraph (3) shall apply.
‘‘(B) ALLOCATIONS TO LARGE AND SMALL
LOCAL EDUCATIONAL AGENCIES.—(i) For any
fiscal year to which this paragraph applies, the
Secretary shall calculate grants under this sec-
tion for each local educational agency.
‘‘(ii) The amount of a grant under this
section for each large local educational agency
shall be the amount determined under clause
(i).
‘‘(iii) For small local educational agencies,
the State educational agency may either—
117
‘‘(I) distribute grants under this sec-
tion in amounts determined by the Sec-
retary under clause (i); or
‘‘(II) use an alternative method, devel-
oped in accordance with clause (iv), ap-
proved by the Secretary to distribute the
portion of the State’s total grants under
this section that is based on those small
agencies.
‘‘(iv) An alternative method under clause
(iii)(II) shall be based on population data that
the State educational agency determines best
reflect the current distribution of children in
poor families among the State’s small local edu-
cational agencies that meet the eligibility cri-
teria of subsection (b).
‘‘(v) If a small local educational agency is
dissatisfied with the determination of its grant
by the State educational agency under clause
(iii)(II), it may appeal that determination to the
Secretary, who shall respond within 45 days of
receiving it.
‘‘(vi) As used in this subparagraph—
‘‘(I) the term ‘large local educational
agency’ means a local educational agency
118
serving an area with a total population of
20,000 or more; and
‘‘(II) the term ‘small local educational
agency’ means a local educational agency
serving an area with a total population of
less than 20,000.
‘‘(3) ALLOCATIONS TO COUNTIES.—(A) For any
fiscal year to which this paragraph applies, the Sec-
retary shall calculate grants under this section on
the basis of the number of children counted under
section 1124(c) for counties, and State educational
agencies shall suballocate county amounts to local
educational agencies, in accordance with regulations
promulgated by the Secretary.
‘‘(B) In any State in which a large number of
local educational agencies overlap county boundaries,
or for which the State believes it has data that
would better target funds than allocating them by
county, the State educational agency may apply to
the Secretary for authority to make the allocations
under this part for a particular fiscal year directly
to local educational agencies without regard to coun-
ties.
‘‘(C) If the Secretary approves a State’s appli-
cation under subparagraph (B), the State edu-
119
cational agency shall provide the Secretary an assur-
ance that those allocations are made—
‘‘(i) using precisely the same factors for
determining a grant as are used under this
part; or
‘‘(ii) using data that the State educational
agency submits to the Secretary for approval
that more accurately target poverty.
‘‘(D) The State educational agency shall pro-
vide the Secretary an assurance that a procedure is
(or will be) established through which local edu-
cational agencies that are dissatisfied with its deter-
minations under subparagraph (B) may appeal di-
rectly to the Secretary for a final determination.
‘‘(4) PUERTO RICO.—For each fiscal year, the
Secretary shall determine the percentage which the
average per pupil expenditure in the Commonwealth
of Puerto Rico is of the lowest average per pupil ex-
penditure of any of the 50 States. The grant which
the Commonwealth of Puerto Rico shall be eligible
to receive under this section for a fiscal year shall
be the amount arrived at by multiplying the number
of children counted under subsection (c) for the
Commonwealth of Puerto Rico by the product of—
120
‘‘(A) the percentage determined under the
preceding sentence; and
‘‘(B) 32 percent of the average per pupil
expenditure in the United States.
‘‘(5) DEFINITION.—For purposes of this sub-
section, the term ‘State’ does not include Guam,
American Samoa, the Virgin Islands, the Northern
Mariana Islands, or Palau.
‘‘(b) MINIMUM NUMBER OF CHILDREN TO QUAL-
IFY.—A local educational agency is eligible for a basic
grant under this section for any fiscal year only if the
number of children counted under subsection (c) for that
agency is—
‘‘(1) 10 or more; and
‘‘(2) more than 2 percent of the total school-age
population in the agency’s jurisdiction.
‘‘(c) CHILDREN TO BE COUNTED.—
‘‘(1) CATEGORIES OF CHILDREN.—The number
of children to be counted for purposes of this section
is the aggregate of—
‘‘(A) the number of children aged 5 to 17,
inclusive, in the school district of the local edu-
cational agency from families below the poverty
level as determined under paragraph (2);
121
‘‘(B) the number of children aged 5 to 17,
inclusive, in the school district of such agency
from families above the poverty level as deter-
mined under paragraph (5); and
‘‘(C) the number of children (determined
under paragraph (4) for either the preceding
year as described in that paragraph, or for the
second preceding year, as the Secretary finds
appropriate) aged 5 to 17, inclusive, in the
school district of such agency in institutions for
neglected and delinquent children (other than
such institutions operated by the United
States), but not counted pursuant to subpart 1
of part D for the purposes of a grant to a State
agency, or being supported in foster homes with
public funds.
‘‘(2) DETERMINATION
OF
NUMBER
OF
CHIL-
DREN.—For the purposes of this section, the Sec-
retary shall determine the number of children aged
5 to 17, inclusive, from families below the poverty
level on the basis of the most recent satisfactory
data, described in paragraph (3), available from the
Department of Commerce. The District of Columbia
and the Commonwealth of Puerto Rico shall be
treated as individual local educational agencies. If a
122
local educational agency contains 2 or more counties
in their entirety, then each county will be treated as
if such county were a separate local educational
agency for purposes of calculating grants under this
part. The total of grants for such counties shall be
allocated to such a local educational agency, which
local educational agency shall distribute to schools in
each county within such agency a share of the local
educational agency’s total grant that is no less than
the county’s share of the population counts used to
calculate the local educational agency’s grant.
‘‘(3) POPULATION
UPDATES.—In fiscal year
2002 and every 2 years thereafter, the Secretary
shall use updated data on the number of children,
aged 5 to 17, inclusive, from families below the pov-
erty level for counties or local educational agencies,
published by the Department of Commerce, unless
the Secretary and the Secretary of Commerce deter-
mine that use of the updated population data would
be inappropriate or unreliable. If the Secretary and
the Secretary of Commerce determine that some or
all of the data referred to in this paragraph are in-
appropriate or unreliable, they shall publicly disclose
their reasons. In determining the families which are
below the poverty level, the Secretary shall utilize
123
the criteria of poverty used by the Bureau of the
Census in compiling the most recent decennial cen-
sus, in such form as those criteria have been up-
dated by increases in the Consumer Price Index for
all urban consumers, published by the Bureau of
Labor Statistics.
‘‘(4) OTHER CHILDREN TO BE COUNTED.—For
purposes of this section, the Secretary shall deter-
mine the number of children aged 5 to 17, inclusive,
from families above the poverty level on the basis of
the number of such children from families receiving
an annual income, in excess of the current criteria
of poverty, from payments under a State program
funded under part A of title IV of the Social Secu-
rity Act; and in making such determinations the
Secretary shall utilize the criteria of poverty used by
the Bureau of the Census in compiling the most re-
cent decennial census for a family of 4 in such form
as those criteria have been updated by increases in
the Consumer Price Index for all urban consumers,
published by the Bureau of Labor Statistics. The
Secretary shall determine the number of children
aged 5 through 17 living in institutions for neglected
or delinquent children, or being supported in foster
homes with public funds, on the basis of the case-
124
load data for the month of October of the preceding
fiscal year (using, in the case of children described
in the preceding sentence, the criteria of poverty and
the form of such criteria required by such sentence
which were determined for the calendar year pre-
ceding such month of October) or, to the extent that
such data are not available to the Secretary before
January of the calendar year in which the Sec-
retary’s determination is made, then on the basis of
the most recent reliable data available to the Sec-
retary at the time of such determination. The Sec-
retary of Health and Human Services shall collect
and transmit the information required by this sub-
paragraph to the Secretary not later than January
1 of each year. For the purpose of this section, the
Secretary shall consider all children who are in cor-
rectional institutions to be living in institutions for
delinquent children.
‘‘(5) ESTIMATE.—When requested by the Sec-
retary, the Secretary of Commerce shall make a spe-
cial updated estimate of the number of children of
such ages who are from families below the poverty
level (as determined under subparagraph (A) of this
paragraph) in each school district, and the Secretary
is authorized to pay (either in advance or by way of
125
reimbursement) the Secretary of Commerce the cost
of making this special estimate. The Secretary of
Commerce shall give consideration to any request of
the chief executive of a State for the collection of ad-
ditional census information. For purposes of this
section, the Secretary shall consider all children who
are in correctional institutions to be living in institu-
tions for delinquent children.
‘‘(d) STATE
MINIMUM.—Notwithstanding section
1122, the aggregate amount allotted for all local edu-
cational agencies within a State may not be less than the
lesser of—
‘‘(1) 0.25 percent of total grants under this sec-
tion; or
‘‘(2) the average of—
‘‘(A) one-quarter of 1 percent of the total
amount available for such fiscal year under this
section; and
‘‘(B) the number of children in such State
counted under subsection (c) in the fiscal year
multiplied by 150 percent of the national aver-
age per pupil payment made with funds avail-
able under this section for that year.
126
‘‘SEC. 1124A. CONCENTRATION GRANTS TO LOCAL EDU-
CATIONAL AGENCIES.
‘‘(a) ELIGIBILITY FOR AND AMOUNT OF GRANTS.—
‘‘(1) IN
GENERAL.—(A) Except as otherwise
provided in this paragraph, each local educational
agency, in a State other than Guam, American
Samoa, the Virgin Islands, the Commonwealth of
the Northern Mariana Islands, and Palau, which is
eligible for a grant under section 1124 for any fiscal
year is eligible for an additional grant under this
section for that fiscal year if the number of children
counted under section 1124(c) in the agency exceeds
either—
‘‘(i) 6,500; or
‘‘(ii) 15 percent of the total number of
children aged 5 through 17 in the agency.
‘‘(B) Notwithstanding section 1122, no State
described in subparagraph (A) shall receive less than
the lesser of—
‘‘(i) 0.25 percent of total grants; or
‘‘(ii) the average of—
‘‘(I) one-quarter of 1 percent of the
sums available to carry out this section for
such fiscal year; and
‘‘(II) the greater of—
‘‘(aa) $340,000; or
127
‘‘(bb) the number of children in
such State counted for purposes of
this section in that fiscal year multi-
plied by 150 percent of the national
average per pupil payment made with
funds available under this section for
that year.
‘‘(2) SPECIAL RULE.—For each county or local
educational agency eligible to receive an additional
grant under this section for any fiscal year the Sec-
retary shall determine the product of—
‘‘(A) the number of children counted under
section 1124(c) for that fiscal year; and
‘‘(B) the amount in section 1124(a)(1)(B)
for all States except Puerto Rico, and the
amount in section 1124(a)(3) for Puerto Rico.
‘‘(3) AMOUNT.—The amount of the additional
grant for which an eligible local educational agency
or county is eligible under this section for any fiscal
year shall be an amount which bears the same ratio
to the amount available to carry out this section for
that fiscal year as the product determined under
paragraph (2) for such local educational agency for
that fiscal year bears to the sum of such products
128
for all local educational agencies in the United
States for that fiscal year.
‘‘(4) 
LOCAL
ALLOCATIONS.—(A) 
Grant
amounts under this section shall be determined in
accordance with section 1124(a) (2) and (3).
‘‘(B) For any fiscal year for which the Sec-
retary allocates funds under this section on the basis
of counties, a State may reserve not more than 2
percent of its allocation under this section for any
fiscal year to make grants to local educational agen-
cies that meet the criteria of paragraph (1)(A) (i) or
(ii) but that are in ineligible counties.
‘‘(b) STATES RECEIVING MINIMUM GRANTS.—In
States that receive the minimum grant under subsection
(a)(1)(B), the State educational agency shall allocate such
funds among the local educational agencies in each State
either—
‘‘(1) in accordance with paragraphs (2) and (4)
of subsection (a); or
‘‘(2) based on their respective concentrations
and numbers of children counted under section
1124(c), except that only those local educational
agencies with concentrations or numbers of children
counted under section 1124(c) that exceed the state-
wide average percentage of such children or the
129
statewide average number of such children shall re-
ceive any funds on the basis of this paragraph.
‘‘SEC. 1125. TARGETED GRANTS TO LOCAL EDUCATIONAL
AGENCIES.
‘‘(a) ELIGIBILITY OF LOCAL EDUCATIONAL AGEN-
CIES.—A local educational agency in a State is eligible to
receive a targeted grant under this section for any fiscal
year if the number of children in the local educational
agency counted under section 1124(c), before application
of the weighting factor described in subsection (c), is at
least 10, and if the number of children counted for grants
under section 1124 is at least 5 percent of the total popu-
lation aged 5 to 17 years, inclusive, in the local edu-
cational agency. Funds made available as a result of ap-
plying this subsection shall be reallocated by the State
educational agency to other eligible local educational agen-
cies in the State in proportion to the distribution of other
funds under this section.
‘‘(b) GRANTS FOR LOCAL EDUCATIONAL AGENCIES,
THE DISTRICT OF COLUMBIA, AND PUERTO RICO.—
‘‘(1) IN GENERAL.—The amount of the grant
that a local educational agency in a State or that the
District of Columbia is eligible to receive under this
section for any fiscal year shall be the product of—
130
‘‘(A) the weighted child count determined
under subsection (c); and
‘‘(B) the amount in section 1124(a)(1).
‘‘(2) PUERTO RICO.—For each fiscal year, the
amount of the grant for which the Commonwealth of
Puerto Rico is eligible under this section shall be
equal to the number of children counted under sub-
section (c) for Puerto Rico, multiplied by the
amount determined in section 1124(a)(3).
‘‘(c) WEIGHTED CHILD COUNT.—
‘‘(1) WEIGHTS
FOR
ALLOCATIONS
TO
COUN-
TIES.—
‘‘(A) IN GENERAL.—For each fiscal year
for which the Secretary uses county population
data to calculate grants, the weighted child
count used to determine a county’s allocation
under this section is the larger of the 2
amounts determined under clause (i) or (ii), as
follows:
‘‘(i) 
BY
PERCENTAGE
OF
CHIL-
DREN.—This amount is determined by
adding—
‘‘(I) the number of children de-
termined under section 1124(c) for
that county constituting up to 12.20
131
percent, inclusive, of the county’s total
population aged 5 to 17, inclusive,
multiplied by 1.0;
‘‘(II) the number of such children
constituting more than 12.20 percent,
but not more than 17.70 percent, of
such population, multiplied by 1.75;
‘‘(III) the number of such chil-
dren constituting more than 17.70
percent, but not more than 22.80 per-
cent, of such population, multiplied by
2.5;
‘‘(IV) the number of such chil-
dren constituting more than 22.80
percent, but not more than 29.70 per-
cent, of such population, multiplied by
3.25; and
‘‘(V) the number of such children
constituting more than 29.70 percent
of such population, multiplied by 4.0.
‘‘(ii) BY
NUMBER
OF
CHILDREN.—
This amount is determined by adding—
‘‘(I) the number of children de-
termined under section 1124(c) con-
stituting up to 1,917, inclusive, of the
132
county’s total population aged 5 to
17, inclusive, multiplied by 1.0;
‘‘(II) the number of such children
between 1,918 and 5,938, inclusive, in
such population, multiplied by 1.5;
‘‘(III) the number of such chil-
dren between 5,939 and 20,199, inclu-
sive, in such population, multiplied by
2.0;
‘‘(IV) the number of such chil-
dren between 20,200 and 77,999, in-
clusive, in such population, multiplied
by 2.5; and
‘‘(V) the number of such children
in excess of 77,999 in such popu-
lation, multiplied by 3.0.
‘‘(B) 
PUERTO
RICO.—Notwithstanding
subparagraph (A), the weighting factor for
Puerto Rico under this paragraph shall not be
greater than the total number of children
counted under section 1124(c) multiplied by
1.72.
(2) WEIGHTS
FOR
ALLOCATIONS
TO
LOCAL
EDUCATIONAL AGENCIES.—
133
(A) IN GENERAL.—For each fiscal year for
which the Secretary uses local educational agen-
cy data, the weighted child count used to deter-
mine a local educational agency’s grant under
this section is the larger of the 2 amounts de-
termined under clauses (i) and (ii), as follows:
(i) BY PERCENTAGE OF CHILDREN.—
This amount is determined by adding—
(I) the number of children deter-
mined under section 1124(c) for that
local educational agency constituting
up to 14.265 percent, inclusive, of the
agency’s total population aged 5 to
17, inclusive, multiplied by 1.0;
(II) the number of such children
constituting more than 14.265 per-
cent, but not more than 21.553 per-
cent, of such population, multiplied by
1.75;
(III) the number of such children
constituting more than 21.553 per-
cent, but not more than 29.223 per-
cent, of such population, multiplied by
2.5;
134
(IV) the number of such children
constituting more than 29.223 per-
cent, but not more than 36.538 per-
cent, of such population, multiplied by
3.25; and
(V) the number of such children
constituting more than 36.538 percent
of such population, multiplied by 4.0.
(ii) BY NUMBER OF CHILDREN.—This
amount is determined by adding—
(I) the number of children deter-
mined under section 1124(c) consti-
tuting up to 575, inclusive, of the
agency’s total population aged 5 to
17, inclusive, multiplied by 1.0;
(II) the number of such children
between 576 and 1,870, inclusive, in
such population, multiplied by 1.5;
(III) the number of such children
between 1,871 and 6,910, inclusive, in
such population, multiplied by 2.0;
(IV) the number of such children
between 6,911 and 42,000, inclusive,
in such population, multiplied by 2.5;
and
135
(V) the number of such children
in excess of 42,000 in such popu-
lation, multiplied by 3.0.
(B) PUERTO RICO.—Notwithstanding sub-
paragraph (A), the weighting factor for Puerto
Rico under this paragraph shall not be greater
than the total number of children counted
under section 1124(c) multiplied by 1.72.
‘‘(d) CALCULATION OF GRANT AMOUNTS.— Grants
under this section shall be calculated in accordance with
section 1124(a) (2) and (3).
‘‘(e) STATE MINIMUM.—Notwithstanding any other
provision of this section or section 1122, from the total
amount available for any fiscal year to carry out this sec-
tion, each State shall be allotted at least the lesser of—
‘‘(1) 0.25 percent of total appropriations; or
‘‘(2) the average of—
‘‘(A) one-quarter of 1 percent of the total
amount available to carry out this section; and
‘‘(B) 150 percent of the national average
grant under this section per child described in
section 1124(c), without application of a
weighting factor, multiplied by the State’s total
number 
of 
children 
described 
in 
section
136
1124(c), without application of a weighting fac-
tor.
‘‘SEC. 1125A. EDUCATION FINANCE INCENTIVE PROGRAM.
‘‘(a) GRANTS.—The Secretary is authorized to make
grants to States from the sums appropriated pursuant to
subsection (e) to carry out the purposes of this part.
‘‘(b) DISTRIBUTION BASED UPON FISCAL EFFORT
AND EQUITY.—
‘‘(1) IN GENERAL.—Funds appropriated pursu-
ant to subsection (e) shall be allotted to each State
based upon the number of children aged 5 to 17, in-
clusive, of such State multiplied by the product of—
‘‘(A) such State’s effort factor described in
paragraph (2); multiplied by
‘‘(B) 1.30 minus such State’s equity factor
described in paragraph (3), except that for each
fiscal year no State shall receive less than 1⁄4 of
1 percent of the total amount appropriated pur-
suant to subsection (e) for such fiscal year.
‘‘(2) EFFORT FACTOR.—(A) Except as provided
in subparagraph (B), the effort factor for a State
shall be determined in accordance with the suc-
ceeding sentence, except that such factor shall not
be less than .95 nor greater than 1.05. The effort
factor determined under this sentence shall be a
137
fraction the numerator of which is the product of
the 3-year average per-pupil expenditure in the State
multiplied by the 3-year average per capita income
in the United States and the denominator of which
is the product of the 3-year average per capita in-
come in such State multiplied by the 3-year average
per-pupil expenditure in the United States.
‘‘(B) The effort factor for the Commonwealth
of Puerto Rico shall be equal to the lowest effort
factor calculated under subparagraph (A) for any
State.
‘‘(3) EQUITY FACTOR.—(A)(i) Except as pro-
vided in subparagraph (B), the Secretary shall de-
termine the equity factor under this section for each
State in accordance with clause (ii).
‘‘(ii)(I) For each State, the Secretary shall com-
pute a weighted coefficient of variation for the per-
pupil expenditures of local educational agencies in
accordance with subclauses (II), (III), (IV), and (V).
‘‘(II) In computing coefficients of variation, the
Secretary shall weigh the variation between per-pupil
expenditures in each local educational agency and
the average per-pupil expenditures in the State ac-
cording to the number of pupils in the local edu-
cational agency.
138
‘‘(III) In determining the number of pupils
under this paragraph in each local educational agen-
cy and each State, the Secretary shall multiply the
number of children from low-income families by 1.4
under this paragraph.
‘‘(IV) In computing coefficients of variation, the
Secretary shall include only those local educational
agencies with an enrollment of more than 200 stu-
dents.
‘‘(V) The Secretary shall compute separate co-
efficients of variation for elementary, secondary, and
unified local educational agencies and shall combine
such coefficients into a single weighted average coef-
ficient for the State by multiplying each coefficient
by the total enrollments of the local educational
agencies in each group, adding such products, and
dividing such sum by the total enrollments of the
local educational agencies in the State.
‘‘(B) The equity factor for a State that meets
the disparity standard described in section 222.63 of
title 34, Code of Federal Regulations (as such sec-
tion was in effect on the day preceding the date of
enactment of this Act) or a State with only 1 local
educational agency shall be not greater than 0.10.
139
‘‘(C) The Secretary may revise each State’s eq-
uity factor as necessary based on the advice of inde-
pendent education finance scholars to reflect other
need-based costs of local educational agencies in ad-
dition to low-income student enrollment, such as dif-
fering geographic costs, costs associated with stu-
dents with disabilities, children with limited English
proficiency or other meaningful educational needs,
which deserve additional support. In addition and
also with the advice of independent education fi-
nance scholars, the Secretary may revise each
State’s equity factor to incorporate other valid and
accepted methods to achieve adequacy of educational
opportunity that may not be reflected in a coefficient
of variation method.
‘‘(c) USE OF FUNDS.—All funds awarded to each
State under this section shall be allocated to local edu-
cational agencies and schools on a basis consistent with
the distribution of other funds to such agencies and
schools under sections 1124, 1124A, and 1125 to carry
out activities under this part.
‘‘(d) MAINTENANCE OF EFFORT.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a State is entitled to receive its full allot-
ment of funds under this part for any fiscal year if
140
the Secretary finds that either the combined fiscal
effort per student or the aggregate expenditures
within the State with respect to the provision of free
public education for the fiscal year preceding the fis-
cal year for which the determination is made was
not less than 90 percent of such combined fiscal ef-
fort or aggregate expenditures for the second fiscal
year preceding the fiscal year for which the deter-
mination is made.
‘‘(2) REDUCTION
OF
FUNDS.—The Secretary
shall reduce the amount of the funds awarded to any
State under this section in any fiscal year in the
exact proportion to which the State fails to meet the
requirements of paragraph (1) by falling below 90
percent of both the fiscal effort per student and ag-
gregate expenditures (using the measure most favor-
able to the State), and no such lesser amount shall
be used for computing the effort required under
paragraph (1) for subsequent years.
‘‘(3) WAIVERS.—The Secretary may waive, for
1 fiscal year only, the requirements of this sub-
section if the Secretary determines that such a waiv-
er would be equitable due to exceptional or uncon-
trollable circumstances such as a natural disaster or
141
a precipitous and unforeseen decline in the financial
resources of the State.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the
purpose of making grants under this section, there are au-
thorized to be appropriated $200,000,000 for fiscal year
2002 and such sums as may be necessary for each of the
4 succeeding fiscal years.
‘‘SEC. 1126. SPECIAL ALLOCATION PROCEDURES.
‘‘(a) ALLOCATIONS FOR NEGLECTED CHILDREN.—
‘‘(1) IN
GENERAL.—If a State educational
agency determines that a local educational agency in
the State is unable or unwilling to provide for the
special educational needs of children who are living
in institutions for neglected or delinquent children as
described in section 1124(c)(1)(B), the State edu-
cational agency shall, if such agency assumes re-
sponsibility for the special educational needs of such
children, receive the portion of such local educational
agency’s allocation under sections 1124, 1124A, and
1125 that is attributable to such children.
‘‘(2) SPECIAL RULE.—If the State educational
agency does not assume such responsibility, any
other State or local public agency that does assume
such responsibility shall receive that portion of the
local educational agency’s allocation.
142
‘‘(b) ALLOCATIONS AMONG LOCAL EDUCATIONAL
AGENCIES.—The State educational agency may allocate
the amounts of grants under sections 1124, 1124A, and
1125 among the affected local educational agencies—
‘‘(1) if 2 or more local educational agencies
serve, in whole or in part, the same geographical
area;
‘‘(2) if a local educational agency provides free
public education for children who reside in the
school district of another local educational agency;
or
‘‘(3) to reflect the merger, creation, or change
of boundaries of 1 or more local educational agen-
cies.
‘‘(c) REALLOCATION.—If a State educational agency
determines that the amount of a grant that a local edu-
cational agency would receive under sections 1124, 1124A,
and 1125 is more than such local agency will use, the
State educational agency shall make the excess amount
available to other local educational agencies in the State
that need additional funds in accordance with criteria es-
tablished by the State educational agency.’’.
143
SEC. 122. PARTICIPATION OF CHILDREN ENROLLED IN PRI-
VATE SCHOOLS.
(a) GENERAL REQUIREMENT.—Subsection (a) of sec-
tion 1120 (20 U.S.C. 6321(a)) is amended to read as fol-
lows:
‘‘(a) GENERAL REQUIREMENT.—
‘‘(1) IN
GENERAL.—To the extent consistent
with the number of eligible children identified under
section 1115(b) in a local educational agency who
are enrolled in private elementary and secondary
schools, a local educational agency shall, after timely
and meaningful consultation with appropriate pri-
vate school officials, provide such children, on an eq-
uitable basis, special educational services or other
benefits under this part (such as dual enrollment,
educational radio and television, computer equip-
ment and materials, other technology, and mobile
educational services and equipment) that address
their needs, and shall ensure that teachers and fami-
lies of these students participate, on an equitable
basis, in services and activities developed pursuant
to sections 1118 and 1119A.
‘‘(2) SECULAR, NEUTRAL, NONIDEOLOGICAL.—
Such educational services or other benefits, including
materials and equipment, shall be secular, neutral,
and nonideological.
144
‘‘(3) EQUITY.—Educational services and other
benefits for such private school children shall be eq-
uitable in comparison to services and other benefits
for public school children participating under this
part, and shall be provided in a timely manner.
‘‘(4) EXPENDITURES.—Expenditures for edu-
cational services and other benefits to eligible private
school children shall be equal to the proportion of
funds allocated to participating school attendance
areas based on the number of children from low-in-
come families who attend private schools, which the
local educational agency may determine each year or
every 2 years.
‘‘(5) PROVISION OF SERVICES.—The local edu-
cational agency shall provide services under this sec-
tion directly or through contracts with public and
private agencies, organizations, and institutions.’’.
(b) CONSULTATION.—Subsection (b) of section 1120
(20 U.S.C. 6321(b)) is amended to read as follows:
‘‘(b) CONSULTATION.—
‘‘(1) IN
GENERAL.—To ensure timely and
meaningful consultation, a local educational agency
shall consult with appropriate private school officials
during the design and development of such agency’s
programs under this part, on issues such as—
145
‘‘(A) how the children’s needs will be iden-
tified;
‘‘(B) what services will be offered;
‘‘(C) how, where, and by whom the services
will be provided;
‘‘(D) how the services will be assessed and
how the results of that assessment will be used
to improve those services;
‘‘(E) the size and scope of the equitable
services to be provided to the eligible private
school children, and the amount of funds gen-
erated by low-income private school children in
each participating attendance area;
‘‘(F) the method or sources of data that
are used under subsection (a)(4) and section
1113(c)(2) to determine the number of children
from low-income families in participating school
attendance areas who attend private schools;
and
‘‘(G) how and when the agency will make
decisions about the delivery of services to such
children, including a thorough consideration
and analysis of the views of the private school
officials on the provision of contract services
through potential third party providers. If the
146
local educational agency disagrees with the
views of the private school officials on the provi-
sion of services, through a contract, the local
educational agency shall provide in writing to
such private school officials, an analysis of the
reasons why the local educational agency has
chosen not to use a contractor.
‘‘(2) TIMING.—Such consultation shall include
meetings of agency and private school officials and
shall occur before the local educational agency
makes any decision that affects the opportunities of
eligible private school children to participate in pro-
grams under this part. Such meetings shall continue
throughout implementation and assessment of serv-
ices provided under this section.
‘‘(3) DISCUSSION.—Such consultation shall in-
clude a discussion of service delivery mechanisms a
local educational agency can use to provide equitable
services to eligible private school children.
‘‘(4) DOCUMENTATION.—Each local educational
agency shall provide to the State educational agency,
and maintain in its records, a written affirmation
signed by officials of each participating private
school that the consultation required by this section
has occurred.
147
‘‘(5) COMPLIANCE.—Private school officials
shall have the right to appeal to the State as to
whether the consultation provided for in this section
was meaningful and timely, and that due consider-
ation was given to the views of private school offi-
cials. If the private school wishes to appeal, the basis
of the claim of noncompliance with this section by
the local educational agencies shall be provided to
the State, and the local educational agency shall for-
ward the documentation provided in subsection
(b)(3) to the State.’’.
(c) STANDARDS FOR BYPASS.—Subsection (d) of sec-
tion 1120 (20 U.S.C. 6321(d)) is amended to read as fol-
lows:
‘‘(d) STANDARDS FOR A BYPASS.—If a local edu-
cational agency is prohibited by law from providing for
the participation on an equitable basis of eligible children
enrolled in private elementary and secondary schools or
if the Secretary determines that a local educational agency
has substantially failed or is unwilling to provide for such
participation, as required by this section, the Secretary
shall—
‘‘(1) waive the requirements of this section for
such local educational agency;
148
‘‘(2) arrange for the provision of services to
such children through arrangements that shall be
subject to the requirements of this section and sec-
tions 14505 and 14506; and
‘‘(3) in making the determination, consider one
or more factors, including the quality, size, scope,
and location of the program and the opportunity of
eligible children to participate.’’.
(d) CAPITAL EXPENSES.—Effective September 30,
2002, subsection (e) of section 1120 (20 U.S.C. 6321(e))
is hereby repealed.
PART B—EVEN START FAMILY LITERACY
PROGRAMS
SEC. 131. PROGRAM AUTHORIZED.
Section 1202(c) (20 U.S.C. 6362(c)) is amended—
(1) in paragraph (1), by striking ‘‘subsection
and for which’’ and all that follows through ‘‘,
whichever is less, to award grants,’’ and inserting
‘‘subsection, from funds reserved under section
7004(c), the Secretary shall award grants,’’;
(2) by striking paragraph (2)(C); and
(3) in paragraph (3)—
(A) by striking ‘‘is defined’’ and inserting
‘‘was defined’’; and
149
(B) by inserting ‘‘as such section was in
effect on the day preceding the date of enact-
ment of the Public Education Reinvestment,
Reinvention, and Responsibility Act’’ after
‘‘2252’’.
SEC. 132. APPLICATIONS.
Section 1207(c)(1)(F) (20 U.S.C. 6367(c)(1)(F)) is
amended by striking ‘‘14306’’ and inserting ‘‘8305’’.
SEC. 133. RESEARCH.
Section 1211(c) (20 U.S.C. 6396b(c)) is amended to
read as follows:
‘‘(c) DISSEMINATION.—The Secretary shall dissemi-
nate, or designate another entity to disseminate, the re-
sults of the research described in subsection (a) to States
and recipients of subgrants under this part.’’.
PART C—EDUCATION OF MIGRATORY CHILDREN
SEC. 141. STATE ALLOCATIONS.
Section 1303 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6393) is amended—
(1) by amending subsection (a) to read as follows:
‘‘(a) STATE ALLOCATIONS.—
‘‘(1) FISCAL YEAR 2002.—For fiscal year 2002,
each State (other than the Commonwealth of Puerto
Rico) is entitled to receive under this part an
amount equal to—
150
‘‘(A) the sum of the estimated number of
migratory children aged three through 21 who
reside in the State full time and the full-time
equivalent of the estimated number of migra-
tory children aged three through 21 who reside
in the State part time, as determined in accord-
ance with subsection (e); multiplied by
‘‘(B) 40 percent of the average per-pupil
expenditure in the State, except that the
amount determined under this paragraph shall
not be less than 32 percent, nor more than 48
percent, of the average expenditure per pupil in
the United States.
‘‘(2) SUBSEQUENT YEARS.—
‘‘(A) BASE AMOUNT.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in subsection (b) and clause (ii), each
State is entitled to receive under this part,
for fiscal year 2003 and succeeding fiscal
years, an amount equal to—
‘‘(I) the amount that such State
received under this part for fiscal year
2001; plus
‘‘(II) the amount allocated to the
State under subparagraph (B).
151
‘‘(ii) NONPARTICIPATING STATES.—In
the case of a State (other than the Com-
monwealth of Puerto Rico) that did not re-
ceive any funds for fiscal year 2001 under
this part, the State shall receive, for fiscal
year 2002 and succeeding fiscal years, an
amount equal to—
‘‘(I) the amount that such State
would have received under this part
for fiscal year 2001 if its application
under section 1304 for the year had
been approved; plus
‘‘(II) the amount allocated to the
State under subparagraph (B).
‘‘(B) 
ALLOCATION
OF
ADDITIONAL
AMOUNT.—For fiscal year 2002 and succeeding
fiscal years, the amount (if any) by which the
funds appropriated to carry out this part for
the year exceed such funds for fiscal year 2001
shall be allocated to a State (other than the
Commonwealth of Puerto Rico) so that the
State receives an amount equal to—
‘‘(i) the sum of—
‘‘(I) the number of identified eli-
gible migratory children, aged 3
152
through 21, residing in the State dur-
ing the previous year; and
‘‘(II) the number of identified eli-
gible migratory children, aged 3
through 21, who received services
under this part in summer or interses-
sion programs provided by the State
during such year; multiplied by
‘‘(ii) 40 percent of the average per-
pupil expenditure in the State, except that
the amount determined under this clause
may not be less than 32 percent, or more
than 48 percent, of the average expendi-
ture per-pupil in the United States.’’;
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) ALLOCATION TO PUERTO RICO.—
‘‘(1) FISCAL YEAR 2002.—For fiscal year 2002,
the grant which the Commonwealth of Puerto Rico
shall be eligible to receive under this section shall be
the amount determined by multiplying the number
of children counted under subsection (a)(1)(A) for
the Commonwealth of Puerto Rico by the product
of—
153
‘‘(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) SUBSEQUENT
FISCAL
YEARS.—For each
fiscal year after fiscal year 2002, the grant which
the Commonwealth of Puerto Rico shall be eligible
to receive under this section shall be the amount de-
termined by multiplying the number of children
counted 
under 
subsection 
(a)(2)(B)(i)(I) 
and
(a)(2)(B)(i)(II) for the Commonwealth of Puerto
Rico during the previous fiscal year, 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.
‘‘(3) MINIMUM ALLOCATION.—
‘‘(A) FISCAL YEAR 2003.—The percentage
in paragraph (1)(A) shall not be less than 75.0
percent.
154
‘‘(B) SUBSEQUENT
FISCAL
YEARS.—The
percentage in paragraph (2)(A) shall not be less
than—
‘‘(i) for fiscal year 2002, 77.5 percent;
‘‘(ii) for fiscal year 2003, 80.0 per-
cent;
‘‘(iii) for fiscal year 2004, 82.5 per-
cent; and
‘‘(iv) for fiscal year 2005 and suc-
ceeding fiscal years, 85.0 percent.
‘‘(4) SPECIAL
RULE.—If the application of
paragraph (3) would result in any of the 50 States
or the District of Columbia receiving less under this
part than it recieved under this part for the pre-
ceding fiscal year, the percentage in paragraph (1)
or (2), respectively, shall be the greater of the per-
centage in paragraph (1)(A) or (2)(A) the percent-
age used for the preceding fiscal year.’’; and
(3) by striking subsections (d) and (e).
SEC. 142. STATE APPLICATIONS; SERVICES.
(a) PROGRAM INFORMATION.—Section 1304(b) of
the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6394(b)) is amended—
155
(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 parts
A and C of title VII;
‘‘(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
funds from other Federal, State, and local pro-
grams;’’;
(3) in paragraph (6), by striking the period at
the end and inserting ‘‘; and’’; and
156
(4) by adding at the end the following:
‘‘(7) a description of how the State will encour-
age programs and projects assisted under this part
to offer family literacy services if the program or
project serves a substantial number of migratory
children who have parents who do not have a high
school diploma or its recognized equivalent or who
have low levels of literacy.’’.
(b) ASSURANCES.—Section 1304(c) of the Elemen-
tary and Secondary Education Act of 1965 (20 U.S.C.
6394(c)) is amended—
(1) in paragraph (1), by striking ‘‘1306(b)(1);’’
and inserting ‘‘1306(a);’’;
(2) 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
(3) in paragraph (7), by striking ‘‘section
1303(e)’’ and inserting ‘‘paragraphs (1)(A) and
(2)(B)(i) of section 1303(a)’’.
157
SEC. 143. AUTHORIZED ACTIVITIES.
Section 1306 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6396) is amended to read
as follows:
‘‘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-
158
ing migratory children simultaneously with students with
similar educational needs in the same educational settings,
where appropriate.
‘‘(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. 144. COORDINATION OF MIGRANT EDUCATION ACTIVI-
TIES.
(a) DURATION.—Section 1308(a)(2) of the Elemen-
tary and Secondary Education Act of 1965 (20 U.S.C.
6398(a)(2)) is amended by striking ‘‘subpart’’ and insert-
ing ‘‘subsection’’.
(b) STUDENT RECORDS.—Section 1308(b) of the El-
ementary and Secondary Education Act of 1965 (20
U.S.C. 6398(b)) is amended to read as follows:
‘‘(b) ESTABLISHING ACCESS TO INFORMATION ON
MIGRANT STUDENTS.—
‘‘(1) The Secretary shall establish a system for
electronically exchanging, among the States, health
and educational information on all students served
under this part. Such information may include—
‘‘(A) immunization records and other
health information;
159
‘‘(B) elementary and secondary academic
history (including partial credit), credit accrual,
and results from State assessments required
under this title;
‘‘(C) other academic information essential
to ensuring that migrant children achieve to
high standards; and
‘‘(D) eligibility for services under the Indi-
viduals with Disabilities Education Act.
‘‘(2) The Secretary shall publish, not later than
120 days after enactment of the Public Education
Reinvestment, Reinvention, and Responsibility Act
(Three R’s), a notice in the Federal Register seeking
public comment on the proposed data elements that
each State receiving funds under this part shall be
required to collect for purposes of electronic transfer
of migrant student information, the requirements for
immediate electronic access to such information, and
the educational agencies eligible to access such infor-
mation.
‘‘(3) Such system of electronic access to mi-
grant student information shall be operational no
later than 1 year after enactment of this Act.
‘‘(4) For the purpose of carrying out this sub-
section in any fiscal year, the Secretary shall reserve
160
not more than $10,000,000 of the amount appro-
priated to carry out this part for such year.’’.
(c) AVAILABILITY OF FUNDS.—Section 1308(c) of
the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6398(c)) is amended by striking ‘‘$6,000,000’’ and
inserting ‘‘$10,000,000’’.
(d) INCENTIVE GRANTS.—Section 1308(d) of the El-
ementary and Secondary Education Act of 1965 (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. 151. NEGLECTED OR DELINQUENT YOUTH.
The heading for part D of title I is amended to read
as follows:
161
‘‘PART 
D—PREVENTION 
AND 
INTERVENTION
PROGRAMS FOR NEGLECTED OR DELIN-
QUENT CHILDREN AND YOUTH’’.
SEC. 152. FINDINGS.
Section 1401(a) is amended by striking paragraphs
(6) through (9) and adding the following:
‘‘(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. 153. ALLOCATION OF FUNDS.
Section 1412(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 for which a State agency in
the Commonwealth of Puerto Rico shall be eligible
to receive under this part shall be the amount deter-
mined by multiplying the number of children count-
ed under subparagraph (a)(1)(A) for the Common-
wealth of Puerto Rico by the product of—
162
‘‘(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 ALLOCATION.—The percentage
in paragraph (1)(A) shall not be less than—
‘‘(A) for fiscal year 2002, 75.0 percent;
‘‘(B) for fiscal year 2003, 77.5 percent;
‘‘(C) for fiscal year 2004, 80.0 percent;
‘‘(D) for fiscal year 2005, 82.5 percent;
and
‘‘(E) for fiscal year 2006 and succeeding
fiscal years, 85.0 percent.
‘‘(3) SPECIAL
RULE.—If the application of
paragraph (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.’’.
SEC. 154. STATE PLAN AND STATE AGENCY APPLICATIONS.
Section 1414 is amended to read as follows:
163
‘‘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 14306.
‘‘(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
children were in the schools of local educational
agencies in the State; and
‘‘(C) contain assurances that the State
educational agency will—
164
‘‘(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; PEER REVIEW.—
‘‘(1) IN
GENERAL.—The Secretary shall ap-
prove each State plan that meets the requirements
of this part.
165
‘‘(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;
‘‘(5) describes how the State agency will consult
with experts and provide the necessary training for
appropriate staff, to ensure that the planning and
166
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 14701 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 14501 of
this title;
‘‘(8) describes how the programs will be coordi-
nated with other appropriate State and Federal pro-
grams, such as programs under the Job Training
Partnership Act or title I of the Workforce Invest-
ment Act of 1998, vocational and technical edu-
cation 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
are shared jointly between the correctional facility
167
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
an existing individualized education program and an
168
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 the youth has been com-
pleted or provide the youth with the skills necessary
to gain employment, continue the education of the
youth, or achieve a secondary school diploma or the
recognized equivalent if the youth does not intend 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 provided
to youth, such as career counseling, distance learn-
ing, and assistance in securing student loans and
grants; and
169
‘‘(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 or other com-
parable programs, if applicable.’’.
SEC. 155. USE OF FUNDS.
Section 1415(a) is amended—
(1) in paragraph (1)(B), by inserting ‘‘and vo-
cational and technical training’’ after ‘‘secondary
school completion’’; and
(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).
SEC. 156. PURPOSE.
Section 1421 is amended by striking paragraph (3)
and inserting the following:
‘‘(3) operate programs for youth returning from
correctional facilities in local schools which may also
serve youth at risk of dropping out of school.’’.
SEC. 157. TRANSITION SERVICES.
Section 1418(a) is amended by striking ‘‘10 percent’’
and inserting ‘‘15 percent’’.
170
SEC. 158. PROGRAMS OPERATED BY LOCAL EDUCATIONAL
AGENCIES.
Section 1422 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 of section 1422 the
following:
‘‘(d) TRANSITIONAL
AND ACADEMIC SERVICES.—
Transitional and supportive programs operated in local
educational agencies under this subpart shall be designed
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
171
academic needs of the students returning from correc-
tional facilities.’’.
SEC. 159. LOCAL EDUCATIONAL AGENCY APPLICATIONS.
Section 1423 is amended by striking paragraphs (4)
through (9) and inserting the following:
‘‘(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 youth returning from
correctional facilities and, as appropriate, other at-
risk youth expected to be served by the program and
how the school will coordinate existing educational
programs to meet the unique educational needs of
such youth;
‘‘(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 re-entry and outreach programs, re-
172
ferrals 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
the Job Training Partnership Act or title I of the
Workforce Investment Act of 1998 and vocational
and technical education programs serving this at-
risk population of youth.’’.
SEC. 160. USES OF FUNDS.
Section 1424 is amended by striking paragraphs (1)
through (3) and inserting the following:
‘‘(1) programs that serve youth returning from
correctional facilities to local schools to assist in the
transition of such youth to the school environment
173
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-
dent loans or grants for postsecondary education;
and
‘‘(5) programs providing mentoring and peer
mediation.’’.
SEC. 161. PROGRAM REQUIREMENTS.
Section 1425 is amended—
(1) in paragraph (1), by striking ‘‘where fea-
sible, ensure educational programs’’ and inserting
the following: ‘‘to the extent practicable, ensure that
educational programs’’;
174
(2) in paragraph (3), by striking ‘‘where fea-
sible,’’ and inserting the following: ‘‘to the extent
practicable,’’;
(3) in paragraph (8), by striking ‘‘where fea-
sible,’’ and inserting the following: ‘‘to the extent
practicable,’’;
(4) in paragraph (9), by inserting ‘‘and tech-
nical’’ after ‘‘vocational’’; and
(5) 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. 162. PROGRAM EVALUATIONS.
Section 1431(a) is amended by striking ‘‘sex, and if
feasible,’’ and inserting ‘‘gender,’’.
PART E—GENERAL PROVISIONS
SEC. 171. GENERAL PROVISIONS.
Part F of title I is amended to read as follows:
‘‘PART F—GENERAL PROVISIONS
‘‘SEC. 1601. FEDERAL REGULATIONS.
‘‘(a) IN GENERAL.—The Secretary is authorized to
issue such regulations as are necessary to reasonably en-
sure that there is compliance with this title.
175
‘‘(b) NEGOTIATED RULEMAKING PROCESS.—
‘‘(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;
176
‘‘(B) select individuals to participate in
such process from among individuals or groups
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 Public Education
Reinvestment, Reinvention, and Responsibility
Act (Three R’s); 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-
177
eration of a program under this title, the Secretary
may issue proposed regulations without following
such process but shall, immediately thereafter and
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. 1602. 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. 1603. STATE ADMINISTRATION.
‘‘(a) RULEMAKING.—
‘‘(1) IN GENERAL.—Each State that receives
funds under this title shall—
178
‘‘(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
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-
179
tioners to advise the State in carrying out its re-
sponsibilities under this title.
‘‘(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
180
thereafter convene the State committee of practi-
tioners to review the emergency regulation prior to
issuance in final form.
‘‘SEC. 1604. CONSTRUCTION.
‘‘(a) PROHIBITION OF FEDERAL MANDATES, DIREC-
TION, OR CONTROL.—Nothing in this title shall be con-
strued to authorize an officer or employee of the Federal
Government to mandate, direct, or control a State, local
educational agency, or school’s specific instructional con-
tent or pupil performance standards and assessments, cur-
riculum, or program of instruction as a condition of eligi-
bility to receive funds under this title.
‘‘(b) EQUALIZED SPENDING.—Nothing in this title
shall be construed to mandate equalized spending per
pupil for a State, local educational agency, or school.
‘‘(c) BUILDING STANDARDS.—Nothing in this title
shall be construed to mandate national school building
standards for a State, local educational agency, or school.
‘‘SEC. 1605. APPLICABILITY TO HOME SCHOOLS.
‘‘Nothing in this Act shall be construed to affect
home schools.
‘‘SEC. 
1606. 
GENERAL 
PROVISION 
REGARDING 
NON-
RECIPIENT NONPUBLIC SCHOOLS.
‘‘Nothing in this Act shall be construed to permit,
allow, encourage, or authorize any Federal control over
181
any aspect of any private, religious, or home school,
whether or not a home school is treated as a private school
or home school under State law. This section shall not be
construed to bar private, religious, or home schools from
participation in programs or services under this Act.
‘‘SEC. 1607. 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 Public Education Reinvestment,
Reinvention, and Responsibility Act (Three R’s).
‘‘SEC. 1608. PROHIBITION ON MANDATORY NATIONAL CER-
TIFICATION 
OF 
TEACHERS 
AND 
PARA-
PROFESSIONALS.
‘‘(a) PROHIBITION
ON MANDATORY TESTING
OR
CERTIFICATION.—Notwithstanding any other provision of
law, the Secretary is prohibited from using Federal funds
182
to plan, develop, implement, or administer any mandatory
national teacher or paraprofessional test or certification.
‘‘(b) PROHIBITION ON WITHHOLDING FUNDS.—The
Secretary is prohibited from withholding funds from any
State or local educational agency if such State or local
educational agency fails to adopt a specific method of
teacher or paraprofessional certification.
‘‘SEC. 1609. GAO STUDIES.
‘‘The General Accounting Office shall conduct a
study of paraprofessionals under part A of title I.
‘‘SEC. 1610. DEFINITIONS.
‘‘For purposes of this title—
‘‘(1) The term ‘Secretary’ means the Secretary
of Education.
‘‘(2) The term ‘scientifically-based research’—
‘‘(A) means the application of rigorous,
systematic, and objective procedures; and
‘‘(B) shall include research that—
‘‘(i) employs systematic, empirical
methods that draw on observation or ex-
periment;
‘‘(ii) involves rigorous data analyses
that are adequate to test the stated
hypotheses and justify the general conclu-
sions drawn;
183
‘‘(iii) relies on measurements or obser-
vational methods that provide valid data
across evaluators and observers and across
multiple measurements and observations;
and
‘‘(iv) has been accepted by a peer-re-
viewed journal or approved by a panel of
independent experts through a comparably
rigorous, objective, and scientific review.
PART F—FEDERAL EVALUATIONS,
DEMONSTRATIONS, AND TRANSITION PROJECTS
SEC. 181. EVALUATIONS.
Section 1501 (20 U.S.C. 6491) is amended—
(1) in subsection (a)(4)—
(A) by striking ‘‘January 1, 1996’’ and in-
serting ‘‘January 1, 2003’’; and
(B) by striking ‘‘January 1, 1999’’ and in-
serting ‘‘January 1, 2006’’;
(2) in subsection (b)(1), by striking ‘‘December
31, 1997’’ and inserting ‘‘December 31, 2004’’; and
(3) in subsection (e)(2), by striking ‘‘December
31, 1996’’ and inserting ‘‘December 31, 2003’’.
SEC. 182. DEMONSTRATIONS OF INNOVATIVE PRACTICES.
Section 1502 (20 U.S.C. 6492) is amended to read
as follows:
184
‘‘SEC. 1502. 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
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.—
185
‘‘(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
‘‘(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
186
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
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
187
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-
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—
188
‘‘(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.
‘‘(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.
189
‘‘(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.
‘‘(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.
190
‘‘(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;
‘‘(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—
191
‘‘(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-
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 performance objectives for
meeting such goals;
‘‘(E) is supported by teachers, principals,
administrators, and other professional staff;
192
‘‘(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
‘‘(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.—