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program for which subgrants funds were received
under this part.
‘‘(b) REPORT TO CONGRESS.—The Secretary shall
submit an annual report to Congress that evaluates the
prekindergarten programs established, enhanced, or ex-
panded under this part.
‘‘SEC. 10996G. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this 
part 
$2,000,000,000 
for 
fiscal 
year 
2002,
$4,000,000,000 for fiscal year 2003, $5,000,000,000 for
fiscal year 2004, $8,000,000,000 for fiscal year 2005, and
$10,000,000,000 for fiscal year 2006.’’.
Chapter 2—Expanding Early Literacy Efforts
SEC. 3411. EARLY LITERACY.
Part C of Title II of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6661 et seq.) is
amended—
(1) by redesignating section 2251 as section
2251A;
(2) by inserting before section 2251A (as so re-
designated) the following:
‘‘SEC. 2251. SHORT TITLE.
‘‘This part may be cited as the ‘Reading Excellence
Act’.’’;
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(3) by redesignating section 2260 as section
2261;
(4) by inserting after section 2259 the fol-
lowing:
‘‘SEC. 2260. EARLY LITERACY.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) 
EARLY
CHILDHOOD
EDUCATOR.—The
term ‘early childhood educator’ means an individual
who spends most or all of the program day working
directly with young children and who has responsi-
bility for implementing the educational components
of an early childhood education program.
‘‘(2) EARLY
CHILDHOOD
EDUCATION
PRO-
GRAM.—The term ‘early childhood education pro-
gram’ means a licensed or regulated child care cen-
ter, preschool, State-funded prekindergarten pro-
gram, or Head Start program.
‘‘(3) EARLY
LITERACY.—The term ‘early lit-
eracy’ means the development of young children’s
vocabulary, reading, and writing skills in preparation
to learn to read and write.
‘‘(4) LOCAL EARLY LITERACY PARTNERSHIP.—
The term ‘local early literacy partnership’ means a
partnership, council, or consortia that includes rep-
resentatives of—
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‘‘(A) the local educational agency;
‘‘(B) teachers in kindergarten through 3d
grade who are responsible for reading instruc-
tion, including teachers working with children
whose native language is not English and chil-
dren with disabilities;
‘‘(C) early childhood educators working in
a range of early childhood education programs
and with children in a range of ages from birth
through age 5, including educators working
with children whose native language is not
English and children with disabilities;
‘‘(D) the local child care resource and re-
ferral agency, local child care council, Head
Start agency, and other appropriate local child
care agencies;
‘‘(E) family literacy programs;
‘‘(F) public libraries;
‘‘(G) local institutions of higher education
that provide professional development in re-
search-based early literacy and scientifically
based reading instruction; and
‘‘(H) parents of children in early childhood
programs and in schools.
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‘‘(5) RESEARCH-BASED EARLY LITERACY.—The
term ‘research-based early literacy’ means the appli-
cation of rigorous, systemic and objective procedures
to obtain valid knowledge relevant to language and
literacy development and instruction that—
‘‘(A) is based on recent national reports
synthesizing research on effective practices to
support children’s literacy and prevent later
reading difficulties;
‘‘(B) draws on high quality quantitative re-
search;
‘‘(C) uses systematic methods that draw on
observation or experiment;
‘‘(D) relies on multiple measures;
‘‘(E) meets accepted standards of evidence
as judged by a panel of independent experts;
and
‘‘(F) draws on the knowledge of effective
teaching strategies for young children.
‘‘(6) YOUNG CHILDREN.—The term ‘young chil-
dren’ means children from birth through age 5 (or
until mandatory school age as determined by the
State).
‘‘(b) GRANT PROGRAM.—The Secretary shall award
grants to State educational agencies to enable such State
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educational agencies to award subgrants to local early lit-
eracy partnerships for the purpose of enhancing the early
literacy in early childhood programs serving children from
birth until kindergarten.
‘‘(c) APPLICATION.—A State educational agency de-
siring a grant under this section shall submit an applica-
tion to the Secretary at such time, in such manner, and
containing such information as the Secretary may require,
including—
‘‘(1) how the State educational agency will dis-
seminate information to a range of early childhood
education providers, organizations, local educational
agencies, and institutions of higher education re-
garding the partnership grants;
‘‘(2) how the State educational agency will pro-
vide technical assistance to local early literacy part-
nerships by disseminating information on research
regarding early literacy curricula and teaching prac-
tice; and
‘‘(3) how the State educational agency will co-
ordinate with other State agencies having responsi-
bility for early childhood education programs in the
selection of the local grantees and in providing tech-
nical assistance and information.
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‘‘(d) ADMINISTRATION.—A State educational agency
receiving a grant under this section may reserve not more
than 2 percent of the grant funds received for administra-
tive purposes.
‘‘(e) LOCAL EARLY LITERACY PARTNERSHIP APPLI-
CATION.—A local early literacy partnership desiring a
subgrant under this section shall submit an application to
the State educational agency at such time, in such man-
ner, and containing such information as the State edu-
cational agency may require. The application shall identify
the lead partner (which shall have a demonstrated history
of effective administration of large grants) that will act
as the fiscal agent and shall describe—
‘‘(1) the roles and responsibilities of each part-
ner entity in the partnership and the resources that
will be made available to each such partner entity to
carry out those roles and responsibilities;
‘‘(2) how the partnership will identify early
childhood education programs and early childhood
educators that would benefit from the services and
professional development to be provided by the part-
nership under this section;
‘‘(3) how the partnership will coordinate Fed-
eral, State, local, and private resources related to
early literacy and family literacy;
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‘‘(4) how the research-based early literacy cur-
ricula and materials will be made available to early
childhood education programs;
‘‘(5) how ongoing professional development in
research-based early literacy will be provided to early
childhood educators in a range of early childhood
education programs, including the use of technology
to deliver such professional development as appro-
priate;
‘‘(6) how the partnership will establish the pres-
ence of an early literacy specialist in the local child
care resource and referral agency or other appro-
priate early childhood education agency in order to
provide technical assistance and information to pro-
grams and early childhood educators;
‘‘(7) how the services will build on existing early
literacy and family literacy programs and profes-
sional development in the community;
‘‘(8) how the early literacy activities and profes-
sional development for early childhood educators will
be coordinated with the activities and professional
development of kindergarten teachers in the same
geographic area;
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‘‘(9) how families will participate in early lit-
eracy programs to enhance their children’s language
and literacy progress;
‘‘(10) how the partnership will collect and re-
port data as required under subsection (g); and
‘‘(11) how the professional development and
other activities and materials to be supplied by the
partnership under this section will support the early
literacy of children whose native language is not
English, children with disabilities, and other children
at risk of having reading difficulties.
‘‘(f) USES OF FUNDS.—The early literacy partner-
ship shall use funds for—
‘‘(1) providing research-based early literacy
instruction methods, strategies, and curricula to
early childhood providers serving children from birth
through age 5 in a range of settings in the commu-
nity;
‘‘(2) providing ongoing, regular, professional
development to early childhood educators in the se-
lection and use of research-based early literacy in-
struction methods, strategies, and curricula;
‘‘(3) providing a stipend or bonus of sufficient
size to each childhood educator who receives the on-
going professional development in research-based
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early literacy, and who commits to remaining in the
same early childhood education program for a min-
imum of 1 additional full year;
‘‘(4) establishing 1 or more early literacy spe-
cialists in the local child care resource and referral
agency or other appropriate local child care agency
or council to provide technical assistance and to dis-
seminate information;
‘‘(5) coordinating the delivery of early literacy
and family literacy services within the community;
and
‘‘(6) collecting and reporting information to the
State educational agency as required in subsection
(g).
‘‘(g) EVALUATIONS AND REPORTS.—Each local part-
nership that receives a grant under this section shall sub-
mit a report to the State educational agency that
includes—
‘‘(1) a description of the types of early child-
hood education programs that received services
through the grant, including disaggregated informa-
tion on the age, race, ethnicity, native language, dis-
ability status, gender, and family income of the chil-
dren served and the qualifications, by credential or
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degree, and compensation of the staff (including di-
rectors and teachers);
‘‘(2) the extent to which professional develop-
ment in research-based early literacy was made ac-
cessible and used by early childhood education staff
in the local area;
‘‘(3) how early literacy activities were coordi-
nated with family literacy programs and activities;
and
‘‘(4) how each partner carried out the partner’s
respective roles and responsibilities under the appli-
cation.’’; and
(5) by amending section 2261 (as so redesig-
nated) by adding at the end the following:
‘‘(3) FISCAL YEARS 2002 TO 2006.—There are
authorized to be appropriated to carry out this
part—
‘‘(A) $500,000,000 for fiscal year 2002;
‘‘(B) $600,000,000 for fiscal year 2003;
‘‘(C) $700,000,000 for fiscal year 2004;
‘‘(D) $850,000,000 for fiscal year 2005;
and
‘‘(E) 
$1,000,000,000 
for 
fiscal 
year
2006.’’.
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SEC. 3412. TECHNICAL AMENDMENTS.
The Elementary and Secondary Education Act of
1965 (20 U.S.C. 6301 et seq.) is amended—
(1) in section 1202(c)(1), by striking ‘‘section
2260(b)(3)’’ and inserting ‘‘section 2261(b)(3)’’;
(2) in section 2257, by striking ‘‘section
2260(b)(1)’’ and inserting ‘‘section 2261(b)(1)’’; and
(3) in section 2258, by striking ‘‘2260(b)(2)’’
and inserting ‘‘section 2261(b)(2)’’.
Chapter 3—Increasing the Availability of
Books
SEC. 3421. SHORT TITLE.
This chapter may be cited as the ‘‘Book Stamp Act’’.
SEC. 3422. FINDINGS.
Congress finds the following:
(1) Literacy is fundamental to all learning.
(2) Between 40 and 60 percent of the Nation’s
children do not read at grade level, particularly chil-
dren in families and school districts that are chal-
lenged by significant financial or social instability.
(3) Increased investments in child literacy are
needed to improve opportunities for children and the
efficacy of the Nation’s education investments.
(4) Increasing access to books in the home is
an important means of improving child literacy,
which can be accomplished nationally at modest cost.
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(5) Effective channels for book distribution al-
ready exist through child care providers.
SEC. 3423. DEFINITIONS.
In this chapter:
(1) EARLY
LEARNING
PROGRAM.—The term
‘‘early learning’’, used with respect to a program,
means a program of activities designed to facilitate
development of cognitive, language, motor, and so-
cial-emotional skills in children under age 6 as a
means of enabling the children to enter school ready
to learn, such as a Head Start or Early Head Start
program carried out under the Head Start Act (42
U.S.C. 9831 et seq.), or a State pre-kindergarten
program.
(2) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
(3) STATE.—The term ‘‘State’’ means the 50
States, the District of Columbia, the Commonwealth
of Puerto Rico, Guam, the United States Virgin Is-
lands, American Samoa, and the Commonwealth of
the Northern Mariana Islands.
(4) STATE AGENCY.—The term ‘‘State agency’’
means an agency designated under section 658D of
the Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858b).
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SEC. 3424. GRANTS TO STATE AGENCIES.
(a) ESTABLISHMENT OF PROGRAM.—The Secretary
shall establish and carry out a program to promote child
literacy and improve children’s access to books at home
and in early learning and other child care programs, by
making books available through early learning and other
child care programs.
(b) GRANTS.—
(1) IN GENERAL.—In carrying out the program,
the Secretary shall make grants to State agencies
from allotments determined under paragraph (2).
(2) ALLOTMENTS.—For each fiscal year, the
Secretary shall allot to each State an amount that
bears the same ratio to the total of the available
funds for the fiscal year as the amount the State re-
ceives under section 658O(b) of the Child Care and
Development Block Grant Act of 1990 (42 U.S.C.
9858m(b)) for the fiscal year bears to the total
amount received by all States under that section for
the fiscal year.
(c) APPLICATIONS.—To be eligible to receive an allot-
ment under this section, a State shall submit an applica-
tion to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.
(d) ACCOUNTABILITY.—The provisions of sections
658I(b) and 658K(b) of the Child Care and Development
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Block Grant Act of 1990 (42 U.S.C. 9858g(b), 9858i(b))
shall apply to States receiving grants under this chapter,
except that references in those sections—
(1) to a chapter shall be considered to be ref-
erences to this chapter; and
(2) to a plan or application shall be considered
to be references to an application submitted under
subsection (c).
(e) DEFINITION.—In this section, the term ‘‘available
funds’’, used with respect to a fiscal year, means the total
of—
(1) the funds made available under section
416(c)(1) of title 39, United States Code for the fis-
cal year; and
(2) the amounts appropriated under section
3409 for the fiscal year.
SEC. 3425. CONTRACTS TO CHILD CARE RESOURCE AND
REFERRAL AGENCIES.
A State agency that receives a grant under section
3404 shall use funds made available through the grant
to enter into contracts with local child care resource and
referral agencies to carry out the activities described in
section 3406. The State agency may reserve not more than
3 percent of the funds made available through the grant
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to support a public awareness campaign relating to the
activities.
SEC. 3426. USE OF FUNDS.
(a) ACTIVITIES.—
(1) BOOK
PAYMENTS
FOR
ELIGIBLE
PRO-
VIDERS.—A child care resource and referral agency
that receives a contract under section 3405 shall use
the funds made available through the grant to pro-
vide payments for eligible early learning program
and other child care providers, on the basis of local
needs, to enable the providers to make books avail-
able, to promote child literacy and improve chil-
dren’s access to books at home and in early learning
and other child care programs.
(2) ELIGIBLE PROVIDERS.—To be eligible to re-
ceive a payment under paragraph (1), a provider
shall—
(A)(i) be a center-based child care pro-
vider, a group home child care provider, or a
family child care provider, described in section
658P(5)(A) of the Child Care and Development
Block 
Grant 
Act 
of 
1990 
(42 
U.S.C.
9858n(5)(A)); or
(ii) be a Head Start agency designated
under section 641 of the Head Start Act (42
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U.S.C. 9836), an entity that receives assistance
under section 645A of such Act (42 U.S.C.
9840a) to carry out an Early Head Start pro-
gram or another provider of an early learning
program; and
(B) provide services in an area where chil-
dren face high risks of literacy difficulties, as
defined by the Secretary.
(b) RESPONSIBILITIES.—A child care resource and
referral agency that receives a contract under section 3405
to provide payments to eligible providers shall—
(1) consult with local individuals and organiza-
tions concerned with early literacy (including parents
and organizations carrying out the Reach Out and
Read, First Book, and Reading Is Fundamental pro-
grams) regarding local book distribution needs;
(2) make reasonable efforts to learn public de-
mographic and other information about local fami-
lies and child literacy programs carried out by the
eligible providers, as needed to inform the agency’s
decisions as the agency carries out the contract;
(3) coordinate local orders of the books made
available under this chapter;
(4) distribute, to each eligible provider that re-
ceives a payment under this chapter, not fewer than
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1 book every 6 months for each child served by the
provider for more than 3 of the preceding 6 months;
(5) use not more than 5 percent of the funds
made available through the contract to provide train-
ing and technical assistance to the eligible providers
on the effective use of books with young children at
different stages of development; and
(6) be a training resource for eligible providers
that want to offer parent workshops on developing
reading readiness.
(c) DISCOUNTS.—
(1) IN GENERAL.—Federal funds made avail-
able under this chapter for the purchase of books
may only be used to purchase books on the same
terms as are customarily available in the book indus-
try to entities carrying out nonprofit bulk book pur-
chase and distribution programs.
(2) TERMS.—An entity offering books for pur-
chase under this chapter shall be presumed to have
met the requirements of paragraph (1), absent con-
trary evidence, if the terms include a discount of 43
percent off the catalogue price of the books, with no
additional charge for shipping and handling of the
books.
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(d) ADMINISTRATION.—The child care resource and
referral agency may not use more than 6 percent of the
funds made available through the contract for administra-
tive costs.
SEC. 3427. REPORT TO CONGRESS.
Not later than 2 years of the date of enactment of
this chapter, the Secretary shall prepare and submit to
Congress a report on the implementation of the activities
carried out under this chapter.
SEC. 3428. SPECIAL POSTAGE STAMPS FOR CHILD LIT-
ERACY.
Chapter 4 of title 39, United States Code is amended
by adding at the end the following:
‘‘§ 416. Special postage stamps for child literacy
‘‘(a) In order to afford the public a convenient way
to contribute to funding for child literacy, the Postal Serv-
ice shall establish a special rate of postage for first-class
mail under this section. The stamps that bear the special
rate of postage shall promote childhood literacy and shall,
to the extent practicable, contain an image relating to a
character in a children’s book or cartoon.
‘‘(b)(1) The rate of postage established under this
section—
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‘‘(A) shall be equal to the regular first-class
rate of postage, plus a differential of not to exceed
25 percent;
‘‘(B) shall be set by the Governors in accord-
ance with such procedures as the Governors shall by
regulation prescribe (in lieu of the procedures de-
scribed in chapter 36); and
‘‘(C) shall be offered as an alternative to the
regular first-class rate of postage.
‘‘(2) The use of the special rate of postage established
under this section shall be voluntary on the part of postal
patrons.
‘‘(c)(1) Of the amounts becoming available for child
literacy pursuant to this section, the Postal Service shall
pay 100 percent to the Department of Health and Human
Services.
‘‘(2) Payments made under this subsection to the De-
partment shall be made under such arrangements as the
Postal Service shall by mutual agreement with such De-
partment establish in order to carry out the objectives of
this section, except that, under those arrangements, pay-
ments to such agency shall be made at least twice a year.
‘‘(3) In this section, the term ‘amounts becoming
available for child literacy pursuant to this section’
means—
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‘‘(A) the total amounts received by the Postal
Service that the Postal Service would not have re-
ceived but for the enactment of this section; reduced
by
‘‘(B) an amount sufficient to cover reasonable
costs incurred by the Postal Service in carrying out
this section, including costs attributable to the print-
ing, sale, and distribution of stamps under this sec-
tion,
as determined by the Postal Service under regulations that
the Postal Service shall prescribe.
‘‘(d) It is the sense of Congress that nothing in this
section should—
‘‘(1) directly or indirectly cause a net decrease
in total funds received by the Department of Health
and Human Services, or any other agency of the
Government (or any component or program of the
Government), below the level that would otherwise
have been received but for the enactment of this sec-
tion; or
‘‘(2) affect regular first-class rates of postage
or any other regular rates of postage.
‘‘(e) Special postage stamps made available under
this section shall be made available to the public beginning
on such date as the Postal Service shall by regulation pre-
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scribe, but in no event later than 12 months after the date
of enactment of this section.
‘‘(f) The Postmaster General shall include in each re-
port provided under section 2402, with respect to any pe-
riod during any portion of which this section is in effect,
information concerning the operation of this section, ex-
cept that, at a minimum, each report shall include infor-
mation on—
‘‘(1) the total amounts described in subsection
(c)(3)(A) that were received by the Postal Service
during the period covered by such report; and
‘‘(2) of the amounts described in paragraph (1),
how much (in the aggregate and by category) was
required for the purposes described in subsection
(c)(3)(B).
‘‘(g) This section shall cease to be effective at the
end of the 2-year period beginning on the date on which
special postage stamps made available under this section
are first made available to the public.’’.
SEC. 3429. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out
this chapter $50,000,000 for each of fiscal years 2002
through 2006.
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Chapter 4—Increased Accountability
SEC. 3431. LOW ACHIEVING CHILDREN MEET HIGH STAND-
ARDS.
The Elementary and Secondary Education Act of
1965 (20 U.S.C. 6301 et seq.) is amended in the heading
for title I by striking ‘‘DISADVANTAGED’’ and in-
serting ‘‘LOW-ACHIEVING’’.
SEC. 3432. PURPOSE AND INTENT.
Section 1001 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6301) is amended to read
as follows:
‘‘SEC. 1001. FINDINGS; RECOGNITION OF NEED; STATEMENT
OF PURPOSE.
‘‘(a) FINDINGS.—Congress finds the following:
‘‘(1) Schools that enroll high concentrations of
children living in poverty face the greatest chal-
lenges, but effective educational strategies based on
scientifically based research can succeed in edu-
cating children to high standards.
‘‘(2) High-poverty schools are much more likely
to be identified as failing to meet State standards
for satisfactory progress. As a result, these schools
are generally the most in need of additional re-
sources and technical assistance to build the capac-
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ity of these schools to address the many needs of
their students.
‘‘(3) The educational progress of children par-
ticipating in programs under this title is closely as-
sociated with their being taught by a fully qualified
staff, particularly in schools with the highest con-
centrations of poverty, where paraprofessionals,
uncertified teachers, and teachers teaching out of
field frequently provide instructional services.
‘‘(4) States, local educational agencies, and
schools should be held accountable for improving
student achievement, while being given appropriate
flexibility.
‘‘(5) Programs funded under this title must
demonstrate increased effectiveness in improving
schools in order to ensure all children achieve to
high standards.
‘‘(b) RECOGNITION OF NEED.—The Congress recog-
nizes the following:
‘‘(1) Educational needs are particularly great
for low-achieving children in our Nation’s highest-
poverty schools, children with limited English pro-
ficiency, children of migrant workers, children with
disabilities, Indian children, children who are ne-
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glected or delinquent, and young children and their
parents who are in need of family literacy services.
‘‘(2) Despite decades of education reform ef-
forts, a sizable achievement gap remains between
minority and nonminority students, and between dis-
advantaged students and their more advantaged
peers.
‘‘(3) States, local educational agencies and
schools should be held accountable for improving the
academic achievement of all students, and for identi-
fying and turning around low-performing schools.
‘‘(4) Federal education assistance is intended
not only to increase pupil achievement overall, but
also more specifically and importantly, to help en-
sure that all pupils, especially the disadvantaged,
meet challenging standards for curriculum content
and pupil performance. It can only be determined if
schools, local educational agencies, and States, are
reaching this goal if pupil achievement results are
disaggregated by at-risk categories.
‘‘(c) PURPOSE AND INTENT.—The purpose and in-
tent of this title are to ensure that all children have a
fair and equal opportunity to obtain a high quality edu-
cation.
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SEC. 3433. AUTHORIZATION OF APPROPRIATIONS.
(a) ADDITIONAL ASSISTANCE.—Subsection (f) of sec-
tion 1002 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6302(f)) is amended to read as
follows:
‘‘(f) SCHOOL IMPROVEMENT.—Each State may re-
serve for the purpose of carrying out its duties under sec-
tion 1116 and 1117, the greater of one-half of 1 percent
of the amount allocated under this part, or $200,000.’’.
(b) FEDERAL ACTIVITIES.—Subsection (g) of section
1002 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6302(g)) is amended by striking ‘‘1995’’
each place it appears and inserting ‘‘2002’’.
(c) STATE ADMINISTRATION.—Section 1002 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6302) is amended by adding at the end the fol-
lowing:
‘‘(h) STATE ADMINISTRATION.—
‘‘(1) STATE
RESERVATION.—Each State may
reserve, from the grants it receives under parts A,
C, and D, of this title, an amount equal to the
greater of—
‘‘(A) 1 percent of the amount it received
under parts A, C, and D; or
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‘‘(B) $400,000 ($50,000 for each outlying
area), to carry out administrative duties as-
signed under parts A, C, and D.
‘‘(2) SPECIAL RULE.—The amount reserved by
each State under this subsection may not exceed the
amount of State funds expended by the State edu-
cational agency to administer elementary and sec-
ondary education programs in such State.
‘‘(i) ASSISTANCE
FOR LOCAL SCHOOL IMPROVE-
MENT.—
‘‘(1) PROGRAM
AUTHORIZED.—The Secretary
shall award grants to States to provide subgrants to
local educational agencies for the purpose of pro-
viding assistance for school improvement consistent
with section 1116. Such grants shall be allocated
among States, the Bureau of Indian Affairs, and the
outlying areas, in the same proportion to the grants
received by each State, the Bureau of Indian Affairs,
and the outlying areas for the fiscal year under
parts A, C, and D of this title. The Secretary shall
expeditiously allocate a portion of such funds to
States for the purpose of assisting local educational
agencies and schools that were in school improve-
ment status on the date preceding the date of enact-
ment of the Leave No Child Behind Act of 2001.
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‘‘(2) REALLOCATIONS.—If a State does not
apply for funds under this subsection, the Secretary
shall reallocate such funds to other States in the
same proportion that funds are allocated under
paragraph (1).
‘‘(3) STATE APPLICATIONS.—Each State edu-
cational agency that desires to receive funds under
this subsection shall submit an application to the
Secretary at such time, and containing such infor-
mation as the Secretary shall reasonably require, ex-
cept that such requirement shall be waived if a State
educational agency has submitted such information
as part of its State plan under this part. Each State
plan shall describe how such funds will be allocated
to ensure that the State educational agency and
local educational agencies comply with school im-
provement and corrective action requirements of sec-
tion 1116.
‘‘(4) LOCAL EDUCATIONAL AGENCY GRANTS.—
A grant to a local educational agency under this
subsection shall be—
‘‘(A) of sufficient size and scope to support
the activities required under sections 1116 and
1117, but not less than $50,000 and not more
than $500,000 to each participating school;
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‘‘(B) integrated with other funds under
this Act; and
‘‘(C) renewable for 2 additional 1-year pe-
riods if schools are making yearly progress con-
sistent with State and local educational agency
plans developed under section 1116.
‘‘(5) PRIORITY.—The State, in awarding such
grants, shall give priority to local educational agen-
cies with the lowest achieving schools, that dem-
onstrate the greatest need for such funds, and that
demonstrate the strongest commitment to making
sure such funds are used to provide adequate re-
sources to enable such schools to meet the yearly
progress goals under State and local school improve-
ment and corrective action plans under section 1116.
‘‘(6) ADMINISTRATIVE
COSTS.—A State edu-
cational agency that receives a grant award under
this subsection may reserve not more than 5 percent
of such award for administration, evaluation, and
technical assistance expenses.
‘‘(7) LOCAL AWARDS.—Each local educational
agency that applies for assistance under this sub-
section shall describe how it will provide the lowest
achieving schools the resources necessary to meet
yearly progress goals under State and local school
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improvement and corrective action plans under sec-
tion 1116.
‘‘(8) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to carry out
this subsection, $250,000,000 for fiscal year 2002,
$300,000,000 for fiscal year 2003, $350,000,000 for
fiscal year 2004, $400,000,000 for fiscal year 2005,
and $450,000,000 for fiscal year 2006.’’.
SEC. 3434. RESERVATION AND ALLOCATION.
Section 1003 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6303) is repealed.
SEC. 3435. STATE PLANS.
Section 1111 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6311) is amended to read
as follows:
‘‘SEC. 1111. STATE PLANS.
‘‘(a) PLANS REQUIRED.—
‘‘(1) IN GENERAL.—Any State desiring to re-
ceive a grant under this part shall submit to the
Secretary a plan, developed in consultation with local
educational agencies, teachers, pupil services per-
sonnel, administrators (including administrators of
programs described in other parts of this title),
other staff, and parents, that satisfies the require-
ments of this section and that is coordinated with
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other programs under this Act, the Individuals with
Disabilities Education Act, the Carl D. Perkins Vo-
cational 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 10202.
‘‘(b) STANDARDS, ASSESSMENTS, AND ACCOUNT-
ABILITY.—
‘‘(1) CHALLENGING
STANDARDS.—(A) Each
State plan shall demonstrate that the State has
adopted and implemented challenging content stand-
ards and challenging student performance standards
that will be used by the State, its local educational
agencies, and its schools to carry out this part, ex-
cept that a State shall not be required to submit
such standards to the Secretary.
‘‘(B) The standards required by subparagraph
(A) shall be the same standards that the State ap-
plies to all schools and children in the State.
‘‘(C) The State shall have such standards for
elementary school and secondary school children
served under this part in subjects determined by the
State, but including at least mathematics, reading
or language arts, and science, which shall include
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the same knowledge, skills, and levels of perform-
ance expected of all children.
‘‘(D) Standards under this paragraph shall
include—
‘‘(i) challenging content standards in aca-
demic subjects that—
‘‘(I) specify what children are ex-
pected to know and be able to do;
‘‘(II) contain coherent and rigorous
content; and
‘‘(III) encourage the teaching of ad-
vanced skills; and
‘‘(ii) 
challenging 
student 
performance
standards that—
‘‘(I) are aligned with the State’s con-
tent standards;
‘‘(II) describe 2 levels of high per-
formance, proficient and advanced, that
determine how well children are mastering
the material in the State content stand-
ards; and
‘‘(III) describe a third level of per-
formance, basic, to provide complete infor-
mation about the progress of the lower
performing children toward achieving to
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the proficient and advanced levels of per-
formance.
‘‘(E) For the subjects in which students will be
served under this part, but for which a State is not
required by subparagraphs (A), (B), and (C) to de-
velop, and has not otherwise developed such stand-
ards, the State plan shall describe a strategy for en-
suring that such students are taught the same
knowledge and skills and held to the same expecta-
tions as are all children.
‘‘(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
received funds under this part toward ena-
bling all children in schools receiving as-
sistance under this part to meet the
State’s challenging student performance
standards; and
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‘‘(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 in a manner 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 gender, each major ethnic and racial
group, by English proficiency status, by
migrant status, by students with disabil-
ities as compared to nondisabled students,
and by economically disadvantaged stu-
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dents as compared 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 statis-
tically reliable information or the results
would reveal individually identifiable infor-
mation 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 levels
in the same grade in the previous school
year;
‘‘(vi) includes annual numerical goals
for improving the performance of all
groups specified in clause (iv) and nar-
rowing gaps in performance between these
groups; and
‘‘(vii) 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
section 1111 and section 1116 not later
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than 10 years after the date of enactment
of the Leave No Child Behind Act of 2001;
and
‘‘(viii) at the State’s discretion, may
also include other academic measures such
as promotion, completion of college pre-
paratory courses, and high school comple-
tion, except that inclusion of such other
measures may not change which schools or
local educational agencies would otherwise
be subject to improvement or corrective ac-
tion under section 1116 if the discretionary
indicators were not included.
‘‘(C) 
ANNUAL
IMPROVEMENT
FOR
STATES.—For a State to make adequate yearly
progress under subparagraph (A)(iii), not less
than 90 percent of the local educational agen-
cies within its jurisdiction shall meet the State’s
criteria for adequate yearly progress.
‘‘(D) ANNUAL IMPROVEMENT FOR LOCAL
EDUCATIONAL
AGENCIES.—For a local edu-
cational agency to make adequate yearly
progress under subparagraph (A)(ii), not less
than 90 percent of the schools within its juris-
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diction must meet the State’s criteria for ade-
quate yearly progress.
‘‘(E) 
ANNUAL
IMPROVEMENT
FOR
SCHOOLS.—For a 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 en-
rolled in such school are required to take the
assessments 
consistent 
with 
section
612(a)(17)(A) of the Individuals with Disabil-
ities Education Act and paragraph (4)(F)(iii)
on which adequate yearly progress is based.
The requirement of this subparagraph must be
met for such assessments to be used to deter-
mine whether a school is making adequate year-
ly progress.
‘‘(F) PUBLIC
NOTICE
AND
COMMENT.—
Each State shall ensure that in developing its
plan for adequate yearly progress, it diligently
seeks public comment from a range of institu-
tions and individuals in the State with an inter-
est in improved student achievement and that
the State makes and will continue to make a
substantial effort to ensure that information
under this part is widely known and understood
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by the public, parents, teachers, and school ad-
ministrators throughout the State. Such efforts
shall include, at a minimum, publication of such
information and explanatory text, broadly to the
public through such means as the Internet, the
media, and public agencies.
‘‘(G) REVIEW.—The Secretary shall review
the information from States on the adequate
yearly progress of schools and local educational
agencies required under subparagraphs (A) and
(B) for the purpose of determining State and
local compliance with section 1116.
‘‘(H) REVISION.—The Secretary shall re-
quire States to revise their definition of ade-
quate yearly progress, consistent with the re-
quirements of this paragraph. Such revisions
shall be submitted to the Secretary for approval
not later than 1 year after the date of enact-
ment of the Leave No Child Behind Act of
2001.
‘‘(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
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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 standards and assessments
that meet the requirements of this subsection,
on a statewide basis, limiting their applicability
to students served under this part; or
‘‘(B) adopting and implementing policies
that ensure that each local educational agency
in the State that receives grants under this part
will adopt curriculum content and student per-
formance standards, and assessments aligned
with such standards, that meet all of the cri-
teria in this subsection and any regulations re-
garding such standards and assessments that
the Secretary may publish, and that are appli-
cable to all students served by each such local
educational agency.
‘‘(4) ASSESSMENTS.—Each State plan shall
demonstrate that the State has implemented and is
administering a set of high-quality, yearly student
assessments that include, at a minimum, assess-
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ments in mathematics, reading or language arts, and
science as the primary means of determining the
yearly performance of each local educational agency
and school served under this title in enabling all
children served under this part to meet the State’s
challenging student performance standards. Such as-
sessments 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 criterion referenced and aligned
with the State’s challenging content and stu-
dent performance standards and provide coher-
ent information about student attainment of
such standards;
‘‘(C) be used for purposes for which such
assessments are valid and reliable, and be con-
sistent with relevant, nationally recognized pro-
fessional and technical standards for such as-
sessments;
‘‘(D) measure the proficiency of students
in the academic subjects in which a State has
adopted challenging content and student per-
formance standards and be administered not
less than one or more times during—
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‘‘(i) grades 3 through 5;
‘‘(ii) grades 6 through 9; and
‘‘(iii) grades 10 through 12;
‘‘(E) involve multiple up-to-date measures
of student performance, including measures
that assess higher order thinking skills and un-
derstanding;
‘‘(F) provide for—
‘‘(i) the participation in such assess-
ments of all students;
‘‘(ii) the reasonable adaptations and
accommodations for students with disabil-
ities defined under 602(3) of the Individ-
uals with Disabilities Education Act nec-
essary to measure the achievement of such
students relative to State content and
State student performance standards; and
‘‘(iii) the inclusion of limited English
proficient students who shall be assessed,
to the extent practicable, in the language
and form most likely to yield accurate and
reliable information on such students’
knowledge of, and skills in, the subject
area being assessed;
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‘‘(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,
which include assessment scores, or other infor-
mation on the attainment of student perform-
ance 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, by mi-
grant status, by students with disabilities as
compared to nondisabled students, and by eco-
nomically disadvantaged students as compared
to students who are not economically disadvan-
taged.
‘‘(5) SPECIAL RULE.—
‘‘(A) IN GENERAL.—Assessment measures
that do not meet the requirements of paragraph
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(4)(C) may be included as one of the multiple
measures, if a State includes in the State plan
information regarding the State’s efforts to
validate such measures.
‘‘(B) STUDENT LITERACY SKILLS.—States
may measure the literacy skills of students 1 or
more times during kindergarten through grade
2. Such measurement shall serve only as a diag-
nostic tool, with its sole purpose being the im-
provement of reading instruction.
‘‘(6) LANGUAGE
ASSESSMENTS.—Each State
plan shall identify the languages other than English
that are present in the participating student popu-
lation and indicate the languages for which yearly
student assessments are not available and are need-
ed. The State shall make every effort to develop
such assessments and may request assistance from
the Secretary if linguistically accessible assessment
measures are needed. Upon request, the Secretary
shall assist with the identification of appropriate as-
sessment measures in the needed languages, but
shall not mandate a specific assessment or mode of
instruction.
‘‘(7) REQUIREMENT.—Each State plan shall
describe—
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‘‘(A) how the State educational agency will
ensure that each local educational agency and
school affected by the State plan to develop the
capacity to comply with each of the require-
ments of sections 1112(c)(1)(D), 1114(c), and
1115(c) that is applicable to such agency or
school;
‘‘(B) what specific steps the State edu-
cational agency will take to assist, and provide
resources to, schools and local educational agen-
cies that receive funds under this part to ensure
that all students enrolled in such schools and
local educational agencies reach, at a minimum,
the proficient level of performance;
‘‘(C) the actions the State will take to en-
sure that critical education services and re-
sources are available in local educational agen-
cies that receive funds under this part to the
extent that such services are available in local
educational agencies that do not receive funds
under this part;
‘‘(D) whether services in local educational
agencies that receive funds under this part are
of comparable quality to the services in local
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educational agencies that do not receive funds
under this part;
‘‘(E) at a minimum—
‘‘(i) how the State will ensure, not
later than December 1, 2004, that stu-
dents from families with incomes below the
poverty line and minority students receive
instruction from fully qualified teachers at
the same rate as other students;
‘‘(ii) how the State will ensure, not
later than December 1, 2004, that stu-
dents from families with incomes below the
poverty line and minority students have
the same access to challenging curricula
and rigorous courses, including advance
placement courses, as do other students;
‘‘(iii) how the State will ensure, not
later than December 1, 2004, that the
quality and availability of instructional ma-
terials and instructional resources includ-
ing technology in local educational agencies
receiving funds under this part, is com-
parable to such quality and availability in
local educational agencies not receiving
funds under this part; and
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‘‘(F) the measures that the State edu-
cational agency will use annually to measure
and publicly report progress regarding subpara-
graph (E).
‘‘(8) EXCLUSION FROM ASSESSMENTS.—
‘‘(A) IN
GENERAL.—Local educational
agencies receiving funds under this part shall
compile information and report, by individual
school, on students who do not participate in
assessments required under paragraph (4).
Such report, which shall be distributed widely
to the public, shall include—
‘‘(i) a list of each reason that students
did not participate in any such assessment;
and
‘‘(ii) the number from each group of
students described in paragraph (2)(B)(iv)
who did not participate on any such as-
sessment for each reason.
‘‘(B) 
PROTECTION.—Reports 
required
under subparagraph (A) shall not report infor-
mation in a case in which it would reveal indi-
vidually identifiable information.
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‘‘(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 schools to carry out the State edu-
cational agency’s responsibilities under this part, in-
cluding technical assistance in providing professional
development under section 1119 and technical as-
sistance 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 notify
local educational agencies and the public of the con-
tent and student performance standards and assess-
ments developed under this section, and of the au-
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thority to operate schoolwide programs, and will ful-
fill the State educational agency’s responsibilities re-
garding local educational agency improvement and
school improvement under section 1116, including
such corrective actions as are necessary;
‘‘(4) the State educational agency will provide
the least restrictive and burdensome regulations for
local educational agencies and individual schools par-
ticipating in a program assisted under this part;
‘‘(5) if applicable, the State educational agency
will inform the Secretary and the public of how and
which Federal laws hinder the ability of States—
‘‘(A) to improve overall student achieve-
ment; and
‘‘(B) to close achievement gaps between
groups of students described in subsection
(b)(2)(B)(iv);
‘‘(6) the State educational agency will encour-
age 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 schools can easily consolidate funds from other
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Federal, State, and local sources for schoolwide pro-
grams under section 1114;
‘‘(8) the State educational agency has involved
the committee of practitioners established under sec-
tion 1603(b) in developing the plan and monitoring
its implementation; and
‘‘(9) the State educational agency will inform
local educational agencies of the local educational
agency’s authority to seek waivers under title X and,
if the State is an Ed-Flex Partnership State, waivers
under the Education Flexibility Partnership Act of
1999 (30 U.S.C. 589a et seq.).
‘‘(d) PEER REVIEW AND SECRETARIAL APPROVAL.—
‘‘(1) SECRETARIAL
DUTIES.—The Secretary
shall—
‘‘(A) establish a peer review process to as-
sist in the review of State plans;
‘‘(B) approve a State plan after its submis-
sion unless the Secretary determines that the
plan does not meet the requirements of this sec-
tion;
‘‘(C) if the Secretary determines that the
State plan does not meet the requirements of
subsection (a), (b), or (c), immediately notify
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the State of such determination and the reasons
for such determination;
‘‘(D) not decline to approve a State’s plan
before—
‘‘(i) offering the State an opportunity
to revise its plan;
‘‘(ii) providing technical assistance in
order to assist the State to meet the re-
quirements under subsections (a), (b), and
(c); and
‘‘(iii) providing a hearing;
‘‘(E) have the authority to disapprove a
State plan for not meeting the requirements of
this part, but shall not have the authority to re-
quire a State, as a condition of approval of the
State plan, to include in, or delete from, such
plan one or more specific elements of the
State’s content standards or to use specific as-
sessment instruments or items; and
‘‘(2) STATE
REVISIONS.—States shall revise
their plans if necessary to satisfy the requirements
of this section. Revised plans shall be submitted to
the Secretary for approval not later than 1 year
after the date of enactment of the Leave No Child
Behind Act of 2001.
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‘‘(e) DURATION OF THE PLAN.—
‘‘(1) IN GENERAL.—Each State plan shall—
‘‘(A) be submitted for the first year for
which this part is in effect after the date of en-
actment of the Leave No Child Behind Act of
2001;
‘‘(B) remain in effect for the duration of
the State’s participation under this part; and
‘‘(C) 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 plan, such as the
adoption of new State content standards and State
student performance standards, new assessments, or
a new definition of adequate yearly progress, the
State shall submit such information to the Sec-
retary.
‘‘(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, local educational agency, or school’s specific in-
structional content or student performance standards and
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assessments, curriculum, 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 dem-
onstrate that it has in place challenging content
standards and student performance standards and
assessments, and a system for measuring and moni-
toring adequate yearly progress which includes the
disaggregation of data by groups, as described in
subsection (b)(2)(B)(iv), the State shall be ineligible
to receive any administrative funds under section
1002(h) that exceed the amount received by the
State for such purpose in the previous year.
‘‘(2) ADDITIONAL FUNDS.—Based on the extent
to which the requirements of paragraph (1) are not
met, additional administrative funds shall be with-
held in such amount as the Secretary determines ap-
propriate, except that for each additional year that
the State fails to comply with such requirements, the
Secretary shall withhold not less than one-fifth of
the amount the State receives for administrative ex-
penses under section 1002(h).
‘‘(3) WAIVER.—Notwithstanding title X of this
Act and the Education Flexibility Partnership Act of
1999 or any other provision of law, a waiver shall
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not be granted except that a State may request a 1-
time, 1-year waiver to meet the requirements of this
section.
‘‘(h) SCHOOL REPORT CARDS; PARENTAL INFORMA-
TION.—
‘‘(1) IN GENERAL.—
‘‘(A) ANNUAL REPORT CARDS.—Not later
than the beginning of the 2002–2003 school
year, a State that receives assistance under this
Act shall prepare and publicly disseminate an
annual report card on all schools that receive
funds under this part. States and local edu-
cational agencies may issue report cards under
this section only for local educational agencies
and schools receiving funds under this part, ex-
cept that if a State or local educational agency
issues a report card for all students, the State
or local educational agency may include the in-
formation under this section as part of such re-
port card.
‘‘(B) IMPLEMENTATION.—The State shall
ensure the dissemination of this information at
all levels. Such information shall be—
‘‘(i) concise; and
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‘‘(ii) presented in a format and man-
ner, and to the extent practicable, in a lan-
guage that parents can understand.
‘‘(2) CONTENT
OF
ANNUAL
STATE
REPORT
CARDS.—
‘‘(A) 
REQUIRED
INFORMATION.—The
State shall, at a minimum, include in the an-
nual State report cards information for the
State on each local educational agency and
school regarding—
‘‘(i) student performance on statewide
assessments for the current and preceding
years in at least mathematics, reading or
language arts, and science, including—
‘‘(I) a comparison of the propor-
tions of students who performed at
‘basic’, ‘proficient’, and ‘advanced’
levels in each subject area, for each
grade level at which assessments are
required under this part, with propor-
tions in each of the same 3 categories
at the same grade levels in the pre-
vious school year; and
‘‘(II) a statement of the percent-
age of students not tested and a list-
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ing of categories of the reasons why
they were not tested;
‘‘(ii) retention in grade, completion of
advanced placement courses, and 4-year
graduation rates;
‘‘(iii) the professional qualifications of
teachers in the aggregate, including the
percentage of course sections in core aca-
demic subjects taught by teachers with
emergency or provisional credentials, and
the percentage of class sections not taught
by fully qualified teachers; and
‘‘(iv) the professional qualifications of
paraprofessionals, the number of para-
professionals in the aggregate and the
ratio of paraprofessionals to teachers in
the classroom.
‘‘(B) STUDENT
DATA.—Student data in
each report card shall contain disaggregated re-
sults for the following categories:
‘‘(i) Gender.
‘‘(ii) Racial and ethnic group.
‘‘(iii) Migrant status.
‘‘(iv) Students with disabilities, as
compared to students who are not disabled.
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‘‘(v) Economically disadvantaged stu-
dents, as compared to students who are
not economically disadvantaged.
‘‘(vi) Students with limited English
proficiency, as compared to students who
are proficient in English.
‘‘(C) OPTIONAL
INFORMATION.—A State
may include in its report card any other infor-
mation it determines appropriate to reflect
school quality and school achievement, including
information on average class size by grade level,
and information on school safety, such as the
incidence of school violence and drug and alco-
hol abuse, and the incidence of student suspen-
sions and expulsions.
‘‘(3) CONTENT OF LOCAL EDUCATIONAL AGEN-
CIES REPORTS.—
‘‘(A) 
MINIMUM
REQUIREMENTS.—The
State shall ensure that each local educational
agency collects appropriate data and publishes
and publicly disseminates an annual report card
for each of its schools that includes, at a
minimum—
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‘‘(i) the information described in para-
graphs (2)(A) and (2)(B) for each local
educational agency and school and—
‘‘(I) in the case of a local edu-
cational agency—
‘‘(aa) the number and per-
centage of schools identified for
school 
improvement, 
including
schools identified under section
1116(b) of this Act;
‘‘(bb) 
information 
that
shows how students in its schools
perform on the statewide assess-
ment compared to students in the
State as a whole; and
‘‘(II) in the case of a school—
‘‘(aa) whether it has been
identified for school improve-
ment; and
‘‘(bb) 
information 
that
shows how its students performed
on the statewide assessment com-
pared to students in the local
educational agency and the State
as a whole.
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‘‘(B) OTHER INFORMATION.—A local edu-
cational agency may include in its annual report
card any other appropriate information regard-
less of whether such information is included in
the annual State report card.
‘‘(4) DISSEMINATION
AND
ACCESSIBILITY
OF
REPORTS.—
‘‘(A) STATE
REPORT
CARDS.—State an-
nual report cards under paragraph (2) shall be
disseminated to all schools and local educational
agencies in the State, and made broadly avail-
able to the public through means such as post-
ing on the Internet, distribution to the media,
and distribution through public agencies.
‘‘(B) LOCAL
EDUCATIONAL
AGENCY
RE-
PORTS.—Local educational agency report cards
under paragraph (3) shall be disseminated to
all schools in the school district and to all par-
ents of students attending these schools and
made broadly available to the public through
means such as posting on the Internet, distribu-
tion to the media, and distribution through
public agencies.
‘‘(5) PARENT’S RIGHT-TO-KNOW.—
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‘‘(A) 
QUALIFICATIONS.—A 
local 
edu-
cational agency that receives funds under this
part shall provide, upon request, in an under-
standable and uniform format, to any parent of
a student attending any school receiving funds
under this part, information regarding the pro-
fessional qualifications of the student’s class-
room teachers, including, at a minimum, the
following:
‘‘(i) Whether the teacher has met
State qualification and licensing criteria
for the grade levels and subject areas in
which the teacher provides instruction.
‘‘(ii) Whether the teacher is teaching
under emergency or other provisional sta-
tus through which State qualification or li-
censing criteria have been waived.
‘‘(iii) The baccalaureate degree major
of the teacher and any other graduate cer-
tification or degree held by the teacher,
and the field of discipline of the certifi-
cation or degree.
‘‘(iv) Whether the child is provided
services by paraprofessionals and the quali-
fications of such paraprofessional.
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‘‘(B) ADDITIONAL INFORMATION.—In ad-
dition to the information that parents may re-
quest under subparagraph (A), and the infor-
mation provided in subsection (c), a school that
receives funds under this part shall provide to
each individual parent or guardian—
‘‘(i) information on the level of per-
formance of the individual student for
whom they are the parent or guardian in
each of the State assessments as required
under this part; and
‘‘(ii) timely notice that the student for
whom they are the parent or guardian has
been assigned or has been taught for 2 or
more consecutive weeks by a substitute
teacher or by a teacher not fully qualified.
‘‘(C) NOTIFICATION.—A local educational
agency shall notify parents of students attend-
ing any school receiving funds under this part,
on an annual basis, of their ability to request
information under this paragraph and initially
not later than 1 year after the date of enact-
ment of the Leave No Child Behind Act of
2001. A local educational agency shall provide
such notification to parents in a format, and to
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the extent practicable, in a language they can
understand.
‘‘(6) PLAN CONTENT.—A State shall include in
its plan under subsection (b) an assurance that it
has in effect a policy that meets the requirements of
this section.
‘‘(i) PRIVACY.—Information collected under this sec-
tion shall be collected and disseminated in a manner that
protects the privacy of individuals.
‘‘(j) SPECIAL RULE ON SCIENCE STANDARDS AND
ASSESSMENTS.—Notwithstanding subsections (b) and (h),
no State shall be required to meet the requirements under
this title relating to science standards or assessments until
the beginning of the 2006–2007 school year.’’.
SEC. 3436. LOCAL EDUCATIONAL AGENCY PLANS.
(a) PLANS REQUIRED.—Subsection (a) of section
1112 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6312(a)) is amended—
(1) in paragraph (1), by striking ‘‘the Goals
2000: Educate America Act’’ and all that follows
and inserting the following: ‘‘the Individuals with
Disabilities Education Act, the Carl D. Perkins Vo-
cational and Technical Education Act of 1998, the
Head Start Act, and other Acts, as appropriate.’’;
and
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(2) in paragraph (2), by striking ‘‘14304’’ and
inserting ‘‘10204’’.
(b) PLAN PROVISIONS.—Subsection (b) of section
1112 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6312(b)) is amended—
(1) by striking ‘‘Each’’ in the matter preceding
paragraph (1) and inserting ‘‘In order to help low-
achieving children achieve to high standards, each’’;
(2) in paragraph (1)—
(A) by striking ‘‘part’’ each place it ap-
pears and inserting ‘‘title’’;
(B) in subparagraph (B), by inserting
‘‘low-achieving’’ before ‘‘children’’;
(C) by striking ‘‘and’’ at the end of sub-
paragraph (B);
(D) by inserting ‘‘and’’ at the end of sub-
paragraph (C); and
(E) by adding at the end the following new
subparagraph:
‘‘(D) determine the literacy levels of first
graders and their need for interventions, and a
description of how the local educational agency
will ensure that any such assessments—
‘‘(i) are developmentally appropriate;
and
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‘‘(ii) use multiple measures to provide
information about the variety of skills that
scientifically based research has identified
as leading to early acquisition of reading
skills.’’;
(3) in paragraph (4)(B), by striking ‘‘under
part C or who were formerly eligible for services
under part C in the two-year period preceding the
date of enactment of the Improving America’s
School Act of 1994, neglected or delinquent youth
and youth at risk of dropping out served under part
D’’ and inserting ‘‘under part C, neglected or delin-
quent youth, Indian children served under title IX,’’;
(4) in paragraph (7), by striking ‘‘eligible
homeless children’’ and inserting ‘‘homeless chil-
dren’’;
(5) by striking the period at the end of para-
graph (9) and inserting ‘‘; and’’; 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 its low-performing
schools, including schools identified for improvement
under section 1116;
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‘‘(11) a description of how the agency will pro-
mote the use of extended learning time, such as an
extended school year and before and after school and
summer programs; and
‘‘(12) a description of the activity established
by the local educational agency in accordance with
section 1119(b)(1).’’.
(c) ASSURANCES.—Subsection (c) of section 1112 of
the Elementary and Secondary Education Act of 1965 (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) inform eligible schools and parents of
schoolwide project authority and the ability of
such schools to consolidate funds from Federal,
State, and local sources;
‘‘(B) provide technical assistance and sup-
port to schoolwide programs;
‘‘(C) work in consultation with schools as
the schools develop the schools’ plans pursuant
to section 1114 and assist schools as the
schools implement such plans or undertake ac-
tivities pursuant to section 1115 so that each
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school can make adequate yearly progress to-
ward meeting the State student performance
standards;
‘‘(D) fulfill such agency’s school improve-
ment responsibilities under section 1116, in-
cluding taking corrective actions under section
1116(b)(9);
‘‘(E) provide services to eligible children
attending private elementary and secondary
schools in accordance with section 1120, and
timely and meaningful consultation with private
school officials regarding such services;
‘‘(F) take into account the experience of
model programs for the educationally disadvan-
taged, and the findings of relevant scientifically
based research indicating that services may be
most effective if focused on students in the ear-
liest grades at schools that receive funds under
this part;
‘‘(G) 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
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established under section 641A(a) of the Head
Start Act;
‘‘(H) inform eligible schools of the local
educational agency’s authority to obtain waivers
on the school’s behalf under title X of this Act,
and if the State is an Ed-Flex Partnership
State, waivers under the Education Flexibility
Partnership Act of 1999;
‘‘(I) 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
families; and
‘‘(J) ensure that by not later than Decem-
ber 1, 2004, students from families with in-
comes below the poverty line and minority stu-
dents are not taught by teachers who are not
fully qualified at a greater rate than other stu-
dents.
‘‘(2) SPECIAL RULE.—The Secretary—
‘‘(A) shall consult with the Secretary of
Health and Human Services on the implemen-
tation of subparagraph (G) and shall establish
procedures (taking into consideration existing
State and local laws, and local teacher con-
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tracts) to assist local educational agencies to
comply with such subparagraph; and
‘‘(B) upon publication, shall disseminate to
local educational agencies the Head Start per-
formance standards as in effect under section
641A(a) of the Head Start Act, and such agen-
cies affected by subparagraph (G) shall plan for
the implementation of such subparagraph (tak-
ing into consideration 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.’’.
(d) PLAN DEVELOPMENT AND DURATION.—Section
1112 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6312) is amended by striking subsection
(d) and inserting the following:
‘‘(d) PLAN DEVELOPMENT AND DURATION.—
‘‘(1) CONSULTATION.—Each local educational
agency plan shall be developed in consultation with
teachers, administrators (including administrators of
programs described in other parts of this title), and
other appropriate school personnel, and with parents
of children in schools served under this part.
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‘‘(2) DURATION.—Each such plan shall be sub-
mitted for the first year for which this part is in ef-
fect following the date of enactment of the Leave No
Child Behind Act of 2001 and shall remain in effect
for the duration of the agency’s participation under
this part.
‘‘(3) REVIEW.—Each such local educational
agency shall periodically review, and as necessary,
revise its plan.’’.
(e) STATE APPROVAL.—Section 1112 of the Elemen-
tary and Secondary Education Act of 1965 (20 U.S.C.
6312(e)) is amended by striking subsection (e) and insert-
ing the following:
‘‘(e) 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 approve a local educational agency’s plan only
if the State educational agency determines that the
local educational agency’s plan—
‘‘(A) will enable schools served under this
part to substantially help children served under
this part meet the standards expected of all
children described in section 1111(b)(1); and
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‘‘(B) will meet the requirements of this
section.’’.
SEC. 3437. TARGETED ASSISTANCE SCHOOLS.
(a) 
FULLY
QUALIFIED
TEACHER.—Subsection
(c)(1)(F) of section 1115 of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6315(c)(1)(F))
is amended by striking ‘‘highly qualified staff;’’ and insert-
ing ‘‘fully qualified teachers as defined in section
2812(4)(A);’’.
(b) INTEGRATION
OF
PROFESSIONAL
DEVELOP-
MENT.—Subsection (d) of section 1115 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C.
6515(d)) is amended to read as follows:
‘‘(d) INTEGRATION
OF PROFESSIONAL DEVELOP-
MENT.—To promote the integration of staff supported
with funds under this part, public school personnel who
are paid with funds received under this part may partici-
pate in general professional development and school plan-
ning activities.’’.
SEC. 3438. SCHOOL CHOICE.
Subsection (b) of section 1115A of the Elementary
and Secondary Education Act of 1965 (20 U.S.C.
6316(b)) is amended by striking paragraphs (7) through
(10) and inserting the following:
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‘‘(7) parents of eligible students in the local
educational agency will be given prompt notice of the
existence of the public school choice program and its
availability to them, and a clear explanation of how
the program will operate;
‘‘(8) the program will include charter schools
and any other public school and shall not include a
school that is or has been identified as a school in
school improvement or is or has been in corrective
action for the past 2 consecutive years;
‘‘(9) transportation services or the costs of
transportation may be provided by the local edu-
cational agency with funds under this part; and
‘‘(10) such local educational agency will comply
with the other requirements of this part.’’.
SEC. 3439. ASSESSMENT AND LOCAL EDUCATIONAL AGEN-
CY AND SCHOOL IMPROVEMENT.
(a) LOCAL REVIEW.—Section 1116(a) of the Elemen-
tary and Secondary Education Act of 1965 (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), by striking ‘‘individual
school performance profiles’’ and inserting ‘‘school
reports’’;
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(3) in paragraph (3), by striking ‘‘and’’ after
the semicolon;
(4) in paragraph (4), by striking the period at
the end and inserting ‘‘; and’’; and
(5) 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 of the El-
ementary and Secondary Education Act of 1965 (20
U.S.C. 6317) is amended by striking subsections (b), (c),
and (d) and by inserting after subsection (a) the following:
‘‘(b) SCHOOL IMPROVEMENT.—
‘‘(1) IN GENERAL.—A local educational agency
shall identify for school improvement any 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 school improvement status
under this section on the day preceding the
date of enactment of the Leave No Child Be-
hind Act of 2001.
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‘‘(2) TRANSITION.—The 2-year period described
in paragraph (1)(A) shall include any continuous pe-
riod of time immediately preceding the date of en-
actment of the Leave No Child Behind Act of 2001
during which a school 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 such
enactment.
‘‘(3) TARGETED ASSISTANCE SCHOOLS.—To de-
termine if a school that is conducting a targeted as-
sistance program under section 1115 should be iden-
tified as in need of improvement under this sub-
section, a local educational agency may choose to re-
view the progress of only those students in such
school who are served under this part.
‘‘(4) OPPORTUNITY TO REVIEW AND PRESENT
EVIDENCE.—
‘‘(A) IN GENERAL.—Before identifying a
school for school improvement under paragraph
(1), the local educational agency shall provide
the school with an opportunity to review the
school-level data, including assessment data, on
which the proposed identification is based.
‘‘(B) 
SUPPORTING
EVIDENCE.—If 
the
school principal believes that the proposed iden-
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tification is in error for statistical or other sub-
stantive reasons, the principal may provide sup-
porting evidence to the local educational agency,
which such agency shall consider before making
a final determination.
‘‘(5) NOTIFICATION TO PARENTS.—A local edu-
cational agency shall, in an easily understandable
format, provide in writing to parents of each student
in a school identified for school improvement—
‘‘(A) an explanation of what the school im-
provement identification means and how the
school compares in terms of academic perform-
ance to other schools in the local educational
agency and State;
‘‘(B) the reasons for such identification;
‘‘(C) the data on which such identification
is based;
‘‘(D) an explanation of what the school is
doing to address the problem of low achieve-
ment;
‘‘(E) an explanation of how parents can
become involved in upgrading the quality of the
school;
‘‘(F) an explanation of the right of par-
ents, pursuant to paragraph (6), to transfer
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their child to another public school, including a
public charter school, that is not in school im-
provement, and how such transfer shall operate;
and
‘‘(G) notification to parents in a format
and, to the extent practicable, in a language
they can understand.
‘‘(6) PUBLIC SCHOOL CHOICE OPTION.—
‘‘(A) SCHOOLS IDENTIFIED FOR IMPROVE-
MENT.—After the date of enactment of the
Leave No Child Behind Act of 2001, a local
educational agency shall provide all students en-
rolled in a school identified for school improve-
ment with an option to transfer to any other
public school within the local educational agen-
cy or any public school consistent with subpara-
graph (C), including a public charter school
that has not been identified for school improve-
ment, unless such option to transfer is prohib-
ited by State law, or local law, which includes
school board-approved local educational agency
policy.
‘‘(B) CAPACITY.—If a local educational
agency described in subparagraph (A) dem-
onstrates to the satisfaction of the State edu-
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cational agency that such local educational
agency lacks the capacity to provide all students
with the option to transfer described in sub-
paragraph (A), and after giving notice to the
parents of children affected that it is not pos-
sible, consistent with State and local law, to ac-
commodate the transfer request of every stu-
dent, the local educational agency shall permit
as many students as possible (who shall be se-
lected by the local educational agency on an eq-
uitable basis) to transfer to a public school that
has not been identified for school improvement
under section 1116(b).
‘‘(C) COOPERATIVE
AGREEMENT.—If all
public schools in the local educational agency to
which a child may transfer to, are identified for
school improvement, the agency shall, to the ex-
tent practicable, establish a cooperative agree-
ment with other local educational agencies in
the area for the transfer.
‘‘(D) TRANSPORTATION.—The local edu-
cational agency in which the schools have been
identified for improvement may use up to 10
percent of the funds received under this part to
provide transportation to students whose par-
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ents choose to transfer their child or children to
a different school.
‘‘(E) WAIVER.—A local educational agency
using funds received under this part for trans-
portation consistent with subparagraph (D)
may request a waiver of the limit of the use of
such funds described in subparagraph (D) from
the Secretary.
‘‘(F) CONTINUE OPTION.—Once a school is
no longer identified for school improvement, the
local educational agency may continue to pro-
vide public school choice as an option to stu-
dents in such school for a period of not less
than 2 years.
‘‘(7) SCHOOL PLAN.—
‘‘(A) IN GENERAL.—Each school identified
under paragraph (1) for school improvement
shall, not later than 3 months after being so
identified, develop or revise a school plan, in
consultation with parents, school staff, the local
educational agency, and other outside experts
for approval by the local educational agency.
Such plan shall—
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‘‘(i) incorporate scientifically based re-
search strategies that strengthen the core
academic program in the school;
‘‘(ii) adopt policies that have the
greatest likelihood of improving the per-
formance of participating children in meet-
ing the State’s student performance stand-
ards;
‘‘(iii) address the professional develop-
ment needs of staff, particularly teachers
and principals;
‘‘(iv) establish specific goals and ob-
jectives the school will undertake for mak-
ing adequate yearly progress which include
specific numerical performance goals and
targets for each of the groups of students
identified in the disaggregated data pursu-
ant to section 1111(b)(2), consistent with
section 1111(b)(2)(B);
‘‘(v) identify how the school will pro-
vide written notification to parents, in a
format and to the extent practicable in a
language such parents can understand;
and
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‘‘(vi) specify the responsibilities of the
local educational agency and the school
under the plan.
‘‘(B) CONDITIONAL
APPROVAL.—A local
educational agency may condition approval of a
school plan, including a revised plan, on inclu-
sion of one or more of the corrective actions
specified in paragraph (9).
‘‘(C) IMPLEMENTATION.—A school shall
implement its plan or revised plan expeditiously,
but not later than the beginning of the school
year after which the school has been identified
for improvement.
‘‘(D) 
REVIEW.—The 
local 
educational
agency shall promptly review the plan, including
a revised plan, work with the school as nec-
essary, and approve the plan if it meets the re-
quirements of this section.
‘‘(8) TECHNICAL ASSISTANCE.—
‘‘(A) IN GENERAL.—For each school iden-
tified for school improvement under paragraph
(1), the local educational agency shall provide
technical assistance as the school develops and
implements its plan, including a revised plan.
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‘‘(B) SPECIFIC TECHNICAL ASSISTANCE.—
Such technical assistance—
‘‘(i) shall include effective methods
and instructional strategies that are based
upon scientifically based research that
strengthens the core academic program in
the school and addresses the specific ele-
ments of student performance problems in
the school;
‘‘(ii) may be provided directly by the
local educational agency, through mecha-
nisms authorized under section 1117, or
with the local educational agency’s ap-
proval, by an institution of higher edu-
cation, a private nonprofit organization, an
educational service agency, a comprehen-
sive regional assistance center under part
A of title XIII (as such center was in exist-
ence prior to the date of enactment of
Leave No Child Behind Act of 2001), or
other entities with experience in helping
schools improve achievement.
‘‘(C) TECHNICAL ASSISTANCE.—Technical
assistance provided under this section by the
local educational agency or an entity authorized
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by such agency shall be based upon scientif-
ically based research.
‘‘(9) CORRECTIVE
ACTION.—In order to help
students served under this part meet challenging
State standards, each local educational agency shall
implement a system of corrective action in accord-
ance with the following:
‘‘(A) IN GENERAL.—After providing tech-
nical assistance under paragraph (8) and sub-
ject to subparagraph (F), the local educational
agency—
‘‘(i) may take corrective action at any
time with respect to a school that has been
identified under paragraph (1);
‘‘(ii) shall take corrective action with
respect to any school that fails to make
adequate yearly progress, as defined by the
State, after the end of the second year fol-
lowing its identification under paragraph
(1); and
‘‘(iii) shall continue to provide tech-
nical assistance while instituting any cor-
rective action under clause (i) or (ii).