593
HR 1990 IH
exchange of information on advances in
content knowledge and teaching skills;
‘‘(D) provide for the participation of para-
professionals, pupil services personnel, and
other school staff;
‘‘(E) include strategies for fostering mean-
ingful parental involvement and relations with
parents to encourage parents to become collabo-
rators in their children’s education, for improv-
ing classroom management and discipline, and
for integrating technology into a curriculum;
‘‘(F) as a whole, are regularly evaluated
for their impact on increased teacher effective-
ness and improved student achievement, with
the findings of the evaluations used to improve
the quality of activities described in this para-
graph;
‘‘(G) include, to the extent practicable, the
establishment of a partnership with an institu-
tion of higher education, another local edu-
cational agency, a teacher organization, or an-
other organization, for the purpose of carrying
out activities described in this paragraph; and
‘‘(H) include ongoing and school-based
support for activities described in this para-
594
HR 1990 IH
graph, such as support for peer review, coach-
ing, or study groups, and the provision of re-
lease time as needed for the activities; and
‘‘(2) are mentoring activities.
‘‘(b) RECRUITMENT ACTIVITIES.—Each recruitment
partnership receiving a grant under section 2805(b) shall
use the funds made available through the grant to carry
out recruitment activities described in section 2808.
‘‘(c) COVERED RECRUITMENT.—A local educational
agency receiving a grant under section 2805(a) for a fiscal
year may elect to use a portion of the funds made available
through the grant, but not more than the agency’s share
of 10 percent of the funds allotted to the State involved
under section 2801 for the fiscal year, to carry out recruit-
ment (including recruitment through the use of signing
bonuses and other financial incentives) and hiring of fully
qualified teachers.
‘‘SEC. 2808. RECRUITMENT ACTIVITIES THROUGH A TEACH-
ER CORPS PROGRAM.
‘‘(a) TEACHER CORPS PROGRAM REQUIREMENTS.—
‘‘(1) RECRUITMENT.—A recruitment partner-
ship that receives a grant under section 2805(b)
shall broadly recruit and screen for a teacher corps
a highly qualified pool of candidates who dem-
595
HR 1990 IH
onstrate the potential to become effective teachers.
Each candidate shall meet—
‘‘(A) standards to ensure that—
‘‘(i) each corps member possesses ap-
propriate, high-level credentials and pre-
sents the likelihood of becoming an effec-
tive teacher; and
‘‘(ii) each group of corps members in-
cludes people who have expertise in aca-
demic subjects and otherwise meet the spe-
cific needs of the district to be served; and
‘‘(B) any additional standard that the re-
cruitment partnership establishes to enhance
the quality and diversity of candidates and to
meet the academic and grade level needs of the
partnership.
‘‘(2) REQUIRED
CURRICULUM
AND
PLACE-
MENT.—Members of the recruitment partnership
shall work together to plan and develop a program
that includes—
‘‘(A) a rigorous curriculum that includes a
preservice training program (incorporating in-
novative approaches to preservice training, such
as distance learning), for a period not to exceed
1 year, that provides corps members with the
596
HR 1990 IH
skills and knowledge necessary to become effec-
tive teachers, by—
‘‘(i) requiring completed course work
in basic areas of teaching, such as prin-
ciples of learning and child development,
effective teaching strategies, assessments,
and classroom management, and in the
pedagogy related to the academic subjects
in which a corps member intends to teach;
‘‘(ii) providing extensive preparation
in the pedagogy of reading to corps mem-
bers, including preparation components
that focus on—
‘‘(I) 
understanding 
the 
psy-
chology of reading, and human growth
and development;
‘‘(II) understanding the structure
of the English language; and
‘‘(III) learning and applying the
best teaching methods to all aspects
of reading instruction;
‘‘(iii) providing training in the use of
technology as a tool to enhance a corps
member’s effectiveness as a teacher and
597
HR 1990 IH
improve the achievement of the corps mem-
ber’s students; and
‘‘(iv) focusing on the teaching skills
and knowledge that corps members need to
enable all students to meet the State’s
highest challenging content and student
performance standards;
‘‘(B) placement of a corps member with
the local educational agency participating in the
recruitment partnership, in a teaching intern-
ship that—
‘‘(i) includes intensive mentoring;
‘‘(ii) provides a reduced teaching load;
and
‘‘(iii) provides regular opportunities
for the corps member to co-teach with a
mentor teacher, observe other teachers,
and be observed and coached by other
teachers;
‘‘(C) individualized inservice training over
the course of the corps member’s first 2 years
of full-time teaching that provides—
‘‘(i) high-quality professional develop-
ment, coordinated jointly by members of
the recruitment partnership, and the
598
HR 1990 IH
course work necessary to provide additional
or supplementary knowledge to meet the
specific needs of the corps member; and
‘‘(ii) ongoing mentoring by a teacher
who meets the criteria for a mentor teach-
er described in paragraph (4)(B), including
the requirements of section 2812(10); and
‘‘(D) collaboration between the recruitment
partnership and local community student and
parent groups, to assist corps members in en-
hancing their understanding of the community
in which the members are placed.
‘‘(3) EVALUATION.—A recruitment partnership
shall evaluate a corps member’s progress in course
study and classroom practice at regular intervals.
Each recruitment partnership shall have a formal
process to identify corps members who seem unlikely
to become effective teachers and terminate their par-
ticipation in the program.
‘‘(4) MENTOR TEACHERS.—
‘‘(A) IN
GENERAL.—A recruitment part-
nership shall develop a plan for the program,
which shall include strategies for identifying, re-
cruiting, training, and providing ongoing sup-
599
HR 1990 IH
port to individuals who will serve as mentor
teachers to corps members.
‘‘(B) 
MENTOR
TEACHER
REQUIRE-
MENTS.—The plan described in subparagraph
(A) shall specify the criteria that the recruit-
ment partnership will use to identify and select
mentor teachers and, at a minimum, shall—
‘‘(i) require a mentor teacher to meet
the requirements of section 2812(10); and
‘‘(ii) require that consideration be
given to teachers with national board cer-
tification.
‘‘(C) COMPENSATION.—The plan shall
specify the compensation—
‘‘(i) for mentor teachers, including
monetary compensation, release time, or a
reduced work load to ensure that mentor
teachers can provide ongoing support for
corps members; and
‘‘(ii) for corps members, including sal-
ary levels and the stipends, if any, that will
be provided during a corps member’s
preservice training.
‘‘(5) ASSURANCES.—The plan shall include as-
surances that—
600
HR 1990 IH
‘‘(A) a corps member will be assigned to
teach only academic subjects and grade levels
for which the member is fully qualified;
‘‘(B) corps members, to the extent prac-
ticable, will be placed in schools with teams of
corps members; and
‘‘(C) every mentor teacher will be provided
sufficient time to meet the needs of the corps
members assigned to the mentor teacher.
‘‘(b) CORPS MEMBER QUALIFICATIONS.—
‘‘(1) CANDIDATES INTENDING TO TEACH IN EL-
EMENTARY SCHOOLS.—At a minimum, to be accept-
ed by a teacher corps program, a candidate who in-
tends to teach at the elementary school level shall—
‘‘(A) have a bachelor’s degree;
‘‘(B) possess an outstanding commitment
to working with children and youth;
‘‘(C) possess a strong professional or post-
secondary record of achievement; and
‘‘(D) pass all basic skills and subject mat-
ter tests required by the State for teacher cer-
tification or licensure.
‘‘(2) CANDIDATES
INTENDING
TO
TEACH
IN
SECONDARY SCHOOLS.—At a minimum, to be ac-
601
HR 1990 IH
cepted by a teacher corps program, a candidate who
intends to teach at the secondary school level shall—
‘‘(A) meet the requirements described in
paragraph (1); and
‘‘(B)(i) possess at least an academic major
or postsecondary degree in each academic sub-
ject in which the candidate intends to teach; or
‘‘(ii) if the candidate did not major or earn
a postsecondary degree in an academic subject
in which the candidate intends to teach, have
completed a rigorous course of instruction in
that subject that is equivalent to having ma-
jored in the subject.
‘‘(3) SPECIAL
RULE.—Notwithstanding para-
graph (2)(B), the recruitment partnership may con-
sider the candidate to be an eligible corps member
and accept the candidate for a teacher corps pro-
gram if the candidate has worked successfully and
directly in a field and in a position that provided the
candidate with direct and substantive knowledge in
the academic subject in which the candidate intends
to teach.
‘‘(c) THREE-YEAR COMMITMENT TO TEACHING IN
ELIGIBLE DISTRICTS.—
602
HR 1990 IH
‘‘(1) IN GENERAL.—In return for acceptance to
a teacher corps program, a corps member shall com-
mit to 3 years of full-time teaching in a school or
district served by a local educational agency partici-
pating in a recruitment partnership receiving funds
under this part.
‘‘(2) REIMBURSEMENT.—
‘‘(A) IN
GENERAL.—If a corps member
leaves the school district to which the corps
member has been assigned prior to the end of
the 3-year period described in paragraph (1),
the corps member shall be required to reim-
burse the Secretary for the amount of the Fed-
eral share of the cost of the corps member’s
participation in the teacher corps program.
‘‘(B) PARTNERSHIP
CLAIMS.—A recruit-
ment partnership that provides a teacher corps
program to a corps member who leaves the
school district, as discussed in subparagraph
(A), may submit a claim to the corps member
requiring the corps member to reimburse the
recruitment partnership for the amount of the
partnership’s share of the cost described in sub-
paragraph (A).
603
HR 1990 IH
‘‘(C) REDUCTION.—Reimbursements re-
quired under this paragraph may be reduced
proportionally based on the amount of time a
corps member remained in the teacher corps
program beyond the corps member’s initial 2
years of service.
‘‘(D) WAIVER.—The Secretary may waive
reimbursements required under subparagraph
(A) in the case of severe hardship to a corps
member who leaves the school district, as de-
scribed in subparagraph (A).
‘‘(d) FEDERAL SHARE; NON-FEDERAL SHARE.—
‘‘(1) PAYMENT OF FEDERAL SHARE.—The Sec-
retary shall pay to each recruitment partnership car-
rying out a teacher corps program under this section
the Federal share of the cost of the activities de-
scribed in the partnership’s application under section
2806(c).
‘‘(2) NON-FEDERAL
SHARE.—A recruitment
partnership’s share of the cost of the activities de-
scribed in the partnership’s application under section
2806(c)—
‘‘(A) may be provided in cash or in kind,
fairly evaluated, including plant, equipment, or
services; and
604
HR 1990 IH
‘‘(B)(i) for the first year for which the
partnership receives assistance under this part,
shall be not less than 10 percent;
‘‘(ii) for the second such year, shall be not
less than 20 percent;
‘‘(iii) for the third year such year, shall be
not less than 30 percent;
‘‘(iv) for the fourth such year, shall be not
less than 40 percent; and
‘‘(v) for the fifth such year, shall be not
less than 50 percent.
‘‘SEC. 2809. GRANTS TO PARTNERSHIPS OF INSTITUTIONS
OF HIGHER EDUCATION AND LOCAL EDU-
CATIONAL AGENCIES.
‘‘(a) ADMINISTRATION.—A State agency for higher
education may use, from the funds made available to the
agency under section 2803(a)(4) for any fiscal year, not
more than 31⁄3 percent for the expenses of the agency in
administering this section, including conducting evalua-
tions of activities on the performance measures described
in section 2804(a)(2).
‘‘(b) GRANTS TO PARTNERSHIPS.—
‘‘(1) IN GENERAL.—The State agency for high-
er education shall use the remainder of the funds, in
cooperation with the State educational agency, to
605
HR 1990 IH
make grants to (including entering into contracts or
cooperative agreements with) partnerships of—
‘‘(A) institutions of higher education that
are in full compliance with all reporting require-
ments of title II of the Higher Education Act
of 1965 or nonprofit organizations of dem-
onstrated effectiveness in providing professional
development and mentoring in the core aca-
demic subjects; and
‘‘(B) eligible local educational agencies (as
defined in section 2805(b)(2)), to carry out ac-
tivities (and only activities) described in sub-
section (e).
‘‘(2) SIZE; DURATION.—Each grant made under
this section shall be—
‘‘(A) in a sufficient amount to carry out
the objectives of this section effectively; and
‘‘(B) for a period of 3 years, which the
State agency for higher education may extend
for an additional 2 years if the agency deter-
mines that the partnership is making substan-
tial progress toward meeting the specific goals
set out in the written agreement required in
subsection (c) and on the performance meas-
ures described in section 2804(a)(2).
606
HR 1990 IH
‘‘(3) APPLICATIONS.—To be eligible to receive a
grant under this section, a partnership shall submit
an application to the State agency for higher edu-
cation at such time, in such manner, and containing
such information as the agency may reasonably re-
quire.
‘‘(4) AWARD PROCESS AND BASIS.—The State
agency for higher education shall make the grants
on a competitive basis, using a peer review process.
‘‘(5) PRIORITY.—In making the grants, the
State agency for higher education shall give priority
to partnerships submitting applications for projects
that focus on mentoring programs for beginning
teachers.
‘‘(6) CONSIDERATIONS.—In making such a
grant for a partnership, the State agency for higher
education shall consider—
‘‘(A) the need of the local educational
agency involved for the professional develop-
ment and mentoring activities proposed in the
application;
‘‘(B) the quality of the program proposed
in the application and the likelihood of success
of the program in improving classroom instruc-
tion and student academic achievement; and
607
HR 1990 IH
‘‘(C) such other criteria as the agency
finds to be appropriate.
‘‘(c) AGREEMENTS.—
‘‘(1) IN GENERAL.—No partnership may receive
a grant under this section unless the institution of
higher education or nonprofit organization involved
enters into a written agreement with at least 1 eligi-
ble local educational agency (as defined in section
2805(b)(2)) to provide professional development and
mentoring for elementary school and secondary
school teachers in the schools served by that agency
in the core academic subjects.
‘‘(2) GOALS.—Each such agreement shall iden-
tify specific measurable annual goals concerning how
the professional development and mentoring that the
partnership provides will enhance the ability of the
teachers to prepare all students to meet challenging
State and local content and student performance
standards.
‘‘(d) JOINT EFFORTS WITHIN INSTITUTIONS
OF
HIGHER EDUCATION.—Each professional development
and mentoring activity assisted under this section by a
partnership containing an institution of higher education
shall involve the joint effort of the institution of higher
education’s school or department of education and the
608
HR 1990 IH
schools or departments of the institution in the specific
disciplines in which the professional development and men-
toring will be provided.
‘‘(e) USES OF FUNDS.—A partnership that receives
funds under this section shall use the funds for activities
(and only for activities) that consist of—
‘‘(1) professional development and mentoring in
the core academic subjects, aligned with State or
local content standards, for teams of teachers from
a school or school district and, where appropriate,
administrators and paraprofessionals;
‘‘(2) research-based professional development
and mentoring programs to assist beginning teach-
ers, which may include—
‘‘(A) mentoring and coaching by trained
mentor teachers that lasts at least 2 years;
‘‘(B) team teaching with veteran teachers
who have a consistent record of helping their
students make substantial academic gains;
‘‘(C) provision of time for observation of,
and consultation with, veteran teachers;
‘‘(D) provision of reduced teaching loads;
and
‘‘(E) provision of additional time for prep-
aration;
609
HR 1990 IH
‘‘(3) the provision of technical assistance to
school and agency staff for planning, implementing,
and evaluating professional development and men-
toring;
‘‘(4) the provision of training for teachers to
help the teachers develop the skills necessary to
work most effectively with parents; and
‘‘(5) in appropriate cases, the provision of
training to address areas of teacher and adminis-
trator shortages.
‘‘(f) COORDINATION.—Any partnership that carries
out professional development and mentoring activities
under this section shall coordinate the activities with ac-
tivities carried out under title II of the Higher Education
Act of 1965, if a local educational agency or institution
of higher education in the partnership is participating in
programs funded under that title.
‘‘(g) ANNUAL REPORTS.—
‘‘(1) IN GENERAL.—Beginning with fiscal year
2002, each partnership that receives a grant under
this section shall prepare and submit to the appro-
priate State agency for higher education, by a date
set by that agency, an annual report on the progress
of the partnership on the performance measures de-
scribed in section 2804(a)(2).
610
HR 1990 IH
‘‘(2) CONTENTS.—Each such report shall—
‘‘(A) include a copy of each written agree-
ment required by subsection (c) that is entered
into by the partnership; and
‘‘(B) describe how the members of the
partnership have collaborated to achieve the
specific goals set out in the agreement, and the
results of that collaboration.
‘‘(3) COPY.—The State agency for higher edu-
cation shall provide the State educational agency
with a copy of each such report.
‘‘SEC. 2810. STATE APPLICATION ACCOUNTABILITY PROVI-
SIONS.
‘‘(a) ASSURANCES.—Each State application sub-
mitted under section 2802 shall contain assurances that—
‘‘(1) beginning on the date of enactment of the
Leave No Child Behind Act of 2001, no school in
the State that is served under this part will use
funds received under this part to hire a teacher who
is not a fully qualified teacher; and
‘‘(2) not later than 4 years after the date of en-
actment of the Leave No Child Behind Act of 2001,
each teacher in the State who provides services to
students served under this part shall be a fully
qualified teacher.
611
HR 1990 IH
‘‘(b) WITHHOLDING.—If a State fails to meet the re-
quirements described in subsection (a)(2) for a fiscal year
in which the requirements apply—
‘‘(1) the Secretary shall withhold, for the fol-
lowing fiscal year, a portion of the funds that would
otherwise be available to the State under section
2803(a)(1) for the administration of this part; and
‘‘(2) the State shall be subject to such other
penalties as are provided by law for a violation of
this Act.
‘‘(c) ASSISTANCE BY STATE EDUCATIONAL AGEN-
CY.—Each State application submitted under section
2802 shall describe how the State educational agency will
help each local educational agency and school in the State
develop the capacity to comply with the requirements of
this section.
‘‘SEC. 2811. LOCAL APPLICATION ACCOUNTABILITY PROVI-
SIONS.
‘‘Each local application submitted under section 2806
shall contain assurances that—
‘‘(1) the agency will not hire a teacher with
funds made available to the agency under this part,
unless the teacher is a fully qualified teacher;
‘‘(2) the local educational agency and schools
served by the agency will work to ensure, through
612
HR 1990 IH
voluntary agreements and incentive programs, that
elementary school and secondary school teachers in
high-poverty schools served by the local educational
agency will be at least as well qualified, in terms of
experience and credentials, as the instructional staff
in schools served by the same local educational agen-
cy that are not high-poverty schools;
‘‘(3) any teacher who receives certification from
the National Board for Professional Teaching
Standards will be considered fully qualified to teach
in the academic subjects in which the teacher is cer-
tified in high-poverty schools in any school district
or community served by the local educational agen-
cy; and
‘‘(4) the agency will—
‘‘(A) make available, on request and in an
understandable and uniform format, to any par-
ent of a student attending any school served by
the local educational agency, information re-
garding the professional qualifications of the
student’s classroom teachers with regard to—
‘‘(i) whether the teacher has met
State certification or licensing criteria for
the academic subjects and grade level in
which the teacher teaches the student;
613
HR 1990 IH
‘‘(ii) whether the teacher is teaching
with emergency credentials or whether any
State certification or licensing standard
has been waived for the teacher; and
‘‘(iii) the academic qualifications of
the teacher in the academic subjects and
grade levels in which the teacher teaches;
and
‘‘(B) inform parents that the parents are
entitled to receive the information upon request.
‘‘SEC. 2812. DEFINITIONS.
‘‘In this part:
‘‘(1) BEGINNING TEACHER.—The term ‘begin-
ning teacher’ means a fully qualified teacher who
has taught for 3 years or less.
‘‘(2) CORE
ACADEMIC
SUBJECTS.—The term
‘core academic subjects’ means—
‘‘(A) mathematics;
‘‘(B) science;
‘‘(C) reading (or language arts) and
English;
‘‘(D) social studies (consisting of history,
civics, government, geography, and economics);
‘‘(E) foreign languages; and
614
HR 1990 IH
‘‘(F) fine arts (consisting of music, dance,
drama, and the visual arts).
‘‘(3) COVERED RECRUITMENT.—The term ‘cov-
ered recruitment’ means activities described in sec-
tion 2807(c).
‘‘(4) FULLY QUALIFIED.—
‘‘(A) IN GENERAL.—The term ‘fully quali-
fied’, used with respect to a teacher, means a
teacher who—
‘‘(i)(I) is certified or licensed and has
demonstrated the academic subject knowl-
edge, teaching knowledge, and teaching
skills necessary to teach effectively in the
academic subject in which the teacher
teaches, according to the standards de-
scribed in subparagraph (B) or (C), as ap-
propriate; and
‘‘(II) shall not be a teacher for whom
State certification or licensing require-
ments have been waived or who is teaching
under emergency credentials; or
‘‘(ii) meets the standards of the Na-
tional Board for Professional Teaching
Standards.
615
HR 1990 IH
‘‘(B) 
ELEMENTARY
SCHOOL
INSTRUC-
TIONAL
STAFF.—For purposes of complying
with subparagraph (A)(i), each elementary
school teacher (other than a middle school
teacher) in the State shall, at a minimum—
‘‘(i) have State certification or a State
license to teach (which may include certifi-
cation or licensing obtained through alter-
native routes); and
‘‘(ii) hold a bachelor’s degree and
demonstrate the academic subject knowl-
edge, teaching knowledge, and teaching
skills required to teach effectively in read-
ing, writing, mathematics, social studies,
science, and other academic subjects.
‘‘(C) MIDDLE
SCHOOL
AND
SECONDARY
SCHOOL INSTRUCTIONAL STAFF.—For purposes
of complying with subparagraph (A)(i), each
middle school or secondary school teacher in the
State shall, at a minimum—
‘‘(i) have State certification or a State
license to teach (which may include certifi-
cation or licensing obtained through alter-
native routes); and
616
HR 1990 IH
‘‘(ii) hold a bachelor’s degree or high-
er degree and demonstrate a high level of
competence in all academic subjects in
which the teacher teaches through—
‘‘(I) achievement of a high level
of performance on rigorous academic
subject tests;
‘‘(II) completion of an academic
major (or courses totaling an equiva-
lent number of credit hours) in each
of the academic subjects in which the
teacher teaches; or
‘‘(III) for a teacher hired prior to
the date of enactment of the Leave
No Child Behind Act of 2001, comple-
tion of appropriate course work for
mastery of such academic subjects.
‘‘(5) HIGH-POVERTY.—The term ‘high-poverty’,
used with respect to a school, means a school that
serves a high number or percentage of children from
families with incomes below the poverty line, as de-
termined by the State in which the school is located.
‘‘(6) 
HIGH-POVERTY
LOCAL
EDUCATIONAL
AGENCY.—The term ‘high-poverty local educational
agency’ means a local educational agency for which
617
HR 1990 IH
the number of children served by the agency who are
age 5 through 17, and from families with incomes
below the poverty line—
‘‘(A) is not less than 20 percent of the
number of all children served by the agency; or
‘‘(B) is more than 10,000.
‘‘(7) INSTITUTION OF HIGHER EDUCATION.—
The term ‘institution of higher education’—
‘‘(A) has the meaning given the term in
section 101(a) of the Higher Education Act of
1965; and
‘‘(B) if such an institution prepares teach-
ers and receives Federal funds, means such an
institution that—
‘‘(i) is in full compliance with the re-
quirements of section 207 of the Higher
Education Act of 1965; and
‘‘(ii) does not have a teacher prepara-
tion program identified by a State as low-
performing.
‘‘(8) LOW-PERFORMING
SCHOOL.—The term
‘low-performing school’ means—
‘‘(A) a school identified by a local edu-
cational agency for school improvement under
section 1116(c); or
618
HR 1990 IH
‘‘(B) a school in which the great majority
of students, as determined by the State in
which the school is located, fail to meet State
student performance standards based on assess-
ments the local educational agency is using
under part A of title I.
‘‘(9) 
MENTORING.—The 
term 
‘mentoring’
means activities that—
‘‘(A) consist of structured guidance and
regular and ongoing support for beginning
teachers, that—
‘‘(i) is designed to help the teachers
continue to improve their practice of teach-
ing and to develop their instructional skills;
and
‘‘(ii)(I) is part of a multiyear, develop-
mental induction process;
‘‘(II) involves the assistance of a men-
tor teacher and other appropriate individ-
uals from a school, local educational agen-
cy, or institution of higher education; and
‘‘(III) may include coaching, class-
room observation, team teaching, and re-
duced teaching loads; and
619
HR 1990 IH
‘‘(B) may include the establishment of a
partnership by a local educational agency with
an institution of higher education, another local
educational agency, teacher organization, or an-
other organization, for the purpose of carrying
out the activities described in subparagraph
(A).
‘‘(10) MENTOR TEACHER.—The term ‘mentor
teacher’ means a fully qualified teacher who—
‘‘(A) is a highly competent classroom
teacher who is formally selected and trained to
work effectively with beginning teachers (includ-
ing corps members described in section 2808);
‘‘(B) is full-time, and is assigned and
qualified to teach in the content area or grade
level in which a beginning teacher (including a
corps member described in section 2808), to
whom the teacher provides mentoring, intends
to teach;
‘‘(C) has been consistently effective in
helping diverse groups of students make sub-
stantial achievement gains; and
‘‘(D) has been selected to provide men-
toring through a peer review process that uses,
as the primary selection criterion for the proc-
620
HR 1990 IH
ess, the teacher’s ability to help students
achieve academic gains.
‘‘(11) POVERTY LINE.—The term ‘poverty line’
means the poverty line (as defined by the Office of
Management and Budget, and revised annually in
accordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2))) ap-
plicable to a family of the size involved.
‘‘(12) 
PROFESSIONAL
DEVELOPMENT.—The
term ‘professional development’ means activities that
are—
‘‘(A)(i) 
an 
integral 
part 
of 
broad
schoolwide and districtwide educational im-
provement plans and enhance the ability of
teachers and other staff to help all students, in-
cluding females, students with disabilities, stu-
dents with limited English proficiency, and stu-
dents who have economic and educational dis-
advantages, meet high State and local content
and student performance standards;
‘‘(ii) sustained, intensive, school-embedded,
tied to State standards, and of high quality and
sufficient duration to have a positive and last-
ing impact on classroom instruction (not one-
time workshops); and
621
HR 1990 IH
‘‘(iii) based on the best available research
on teaching and learning; and
‘‘(B) described in subparagraphs (A)
through (F) of section 2807(a)(1).
‘‘(13) RECRUITMENT
ACTIVITIES.—The term
‘recruitment activities’ means activities carried out
through a teacher corps program as described in sec-
tion 2808 to attract highly qualified individuals, in-
cluding individuals taking nontraditional routes to
teaching, to enter teaching and support the individ-
uals during necessary certification and licensure ac-
tivities.
‘‘(14) RECRUITMENT PARTNERSHIP.—The term
‘recruitment partnership’ means a partnership de-
scribed in section 2805(b)(2).
‘‘SEC. 2813. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this part, $1,730,000,000 for fiscal year 2002 and for
each of the 4 succeeding fiscal years.’’.
Subchapter B—National Board Certification
Program
SEC. 3471. PURPOSE.
It is the purpose of this subchapter to assist 105,000
elementary school or secondary school teachers in becom-
ing board certified by the year 2006.
622
HR 1990 IH
SEC. 3472. GRANTS TO EXPAND PARTICIPATION IN THE NA-
TIONAL BOARD CERTIFICATION PROGRAM.
(a) DEFINITIONS.—The terms used in this section
have the meanings given the terms in section 14101 of
the Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801).
(b) GRANTS AUTHORIZED.—From amounts appro-
priated under subsection (f), the Secretary shall award
grants to States to enable such States to provide subsidies
to elementary school and secondary school teachers who
enroll in the certification program of the National Board
for Professional Teaching Standards.
(c) APPLICATION.—To be eligible to receive a grant
under subsection (b), a State shall prepare and submit to
the Secretary an application at such time, in such manner,
and containing such information as the Secretary may re-
quire.
(d) AMOUNT OF GRANT.—The amount of a grant
awarded to a State under subsection (b) shall be deter-
mined by the Secretary.
(e) USE OF FUNDS.—
(1) IN GENERAL.—A State shall use amounts
received under a grant under this section to provide
a subsidy to an eligible teacher who enrolls and com-
pletes the teaching certification program of the Na-
tional Board for Professional Teaching Standards.
623
HR 1990 IH
(2) ELIGIBILITY.—
(A) IN GENERAL.—To be eligible to receive
a subsidy under this section an individual
shall—
(i) be a teacher in an elementary
school or secondary school, served by a
local educational agency that meets the eli-
gibility requirements described in subpara-
graph (B), in the State involved;
(ii) prepare and submit to the State
an application at such time, in such man-
ner, and containing such information as
the State may require; and
(iii) certify to the State that the indi-
vidual intends to enroll and complete the
teaching certification program of the Na-
tional Board for Professional Teaching
Standards.
(B) LOCAL
EDUCATIONAL
AGENCY.—A
local educational agency described in subpara-
graph (A)(i) is a local educational agency
that—
(i) serves low achieving students as
measured by low graduation rates or low
scores on assessment exams;
624
HR 1990 IH
(ii) has a low teacher retention rate in
the schools served by the local educational
agency;
(iii) has a high rate of out-of-field
placement of teachers in the schools served
by the local educational agency; and
(iv) has a shortage of teachers of
mathematics or physical science in the
schools served by the local educational
agency.
(3) AMOUNT
OF
SUBSIDY.—Subject to the
availability of funds, a State shall provide a teacher
who has an application approved under paragraph
(2) with a subsidy in an amount equal to 90 percent
of the cost of enrollment in the program described
in paragraph (2)(A)(iii).
(f) APPROPRIATIONS.—There are authorized to be
appropriated to carry out this section, $37,800,000 for
each of the fiscal years 2002 through 2006.
Subchapter C—Student Loan Forgiveness for
Teachers
SEC. 3481. STUDENT LOAN FORGIVENESS FOR TEACHERS.
(a) GUARANTEED LOANS.—Section 428J of the
Higher Education Act of 1965 (20 U.S.C. 1078–10) is
amended to read as follows:
625
HR 1990 IH
‘‘SEC. 428J. LOAN FORGIVENESS FOR TEACHERS.
‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of
this section to encourage individuals to enter and continue
in the teaching profession.
‘‘(b) PROGRAM AUTHORIZED.—The Secretary shall
carry out a program, through the holder of the loan, of
assuming the obligation to repay in accordance with sub-
section (c) a qualified loan amount for a loan made under
section 428 or 428H for any borrower who—
‘‘(1) is employed as a full-time teacher during
the academic year beginning in calendar year 2001
or during any subsequent academic year—
‘‘(A) in a school that qualifies under sec-
tion 465(a)(2)(A) for loan cancellation for Per-
kins loan recipients who teach in such schools;
‘‘(B) if employed as a secondary school
teacher, is teaching—
‘‘(i) a subject area that is relevant to
the borrower’s academic major as certified
by the chief administrative officer of the
public or nonprofit private secondary
school in which the borrower is employed;
or
‘‘(ii) special education or bilingual
education;
626
HR 1990 IH
‘‘(C) if employed as an elementary school
teacher, has demonstrated, as certified by the
chief administrative officer of the public or non-
profit private elementary school in which the
borrower is employed, knowledge and teaching
skills in reading, writing, mathematics, special
education, bilingual education, or other areas of
the elementary school curriculum; and
‘‘(D) is fully qualified, as such term is de-
fined in section 2812(4)(A) of the Elementary
and Secondary Education Act of 1965; and
‘‘(2) is not in default on a loan for which the
borrower seeks forgiveness.
‘‘(c) QUALIFIED LOANS AMOUNT.—
‘‘(1) IN GENERAL.—Of the aggregate loan obli-
gations of a borrower on loans made under section
428 or 428H that are outstanding after the comple-
tion of the first complete school year of teaching de-
scribed in subsection (b)(1) for which the borrower
applies for repayment under this section, the Sec-
retary shall repay not more than—
‘‘(A) $3,000 for each of the first and sec-
ond such complete school years;
‘‘(B) $4,000 for the third such complete
school year; and
627
HR 1990 IH
‘‘(C) $5,000 for each of the fourth and
fifth such complete school years.
‘‘(2) TREATMENT OF CONSOLIDATION LOANS.—
A loan amount for a loan made under section 428C
may be a qualified loan amount for the purposes of
this subsection only to the extent that such loan
amount was used to repay a Federal Direct Stafford
Loan, a Federal Direct Unsubsidized Stafford Loan,
or a loan made under section 428 or 428H for a
borrower who meets the requirements of subsection
(b), as determined in accordance with regulations
prescribed by the Secretary.
‘‘(d) REGULATIONS.—The Secretary is authorized to
issue such regulations as may be necessary to carry out
the provisions of this section.
‘‘(e) CONSTRUCTION.—Nothing in this section shall
be construed to authorize any refunding of any repayment
of a loan.
‘‘(f) LIST.—If the list of schools in which a teacher
may perform service pursuant to subsection (b) is not
available before May 1 of any year, the Secretary may use
the list for the year preceding the year for which the deter-
mination is made to make such service determination.
‘‘(g) ADDITIONAL ELIGIBILITY PROVISIONS.—
628
HR 1990 IH
‘‘(1) CONTINUED
ELIGIBILITY.—Any teacher
who performs service in a school that—
‘‘(A) meets the requirements of subsection
(b)(1)(A) in any year during such service; and
‘‘(B) in a subsequent year fails to meet the
requirements of such subsection,
may continue to teach in such school and shall be
eligible for loan forgiveness pursuant to subsection
(b).
‘‘(2) PREVENTION OF DOUBLE BENEFITS.—No
borrower may, for the same service, receive a benefit
under both this subsection and subtitle D of title I
of the National and Community Service Act of 1990
(42 U.S.C. 12571 et seq.). No borrower may receive
a reduction of loan obligations under both this sec-
tion and section 460.
‘‘(h) DEFINITION.—For purposes of this section, the
term ‘year’, where applied to service as a teacher, means
an academic year as defined by the Secretary.’’.
(b) DIRECT LOANS.—Section 460 of such Act (20
U.S.C. 1087j) is amended to read as follows:
‘‘SEC. 460. LOAN FORGIVENESS FOR TEACHERS.
‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of
this section to encourage individuals to enter and continue
in the teaching profession.
629
HR 1990 IH
‘‘(b) PROGRAM AUTHORIZED.—The Secretary shall
carry out a program of canceling the obligation to repay
a qualified loan amount in accordance with subsection (c)
for Federal Direct Stafford Loans and Federal Direct Un-
subsidized Stafford Loans made under this part for any
borrower who—
‘‘(1) is employed as a full-time teacher during
the academic year beginning in calendar year 2001
or during any subsequent academic year—
‘‘(A) in a school that qualifies under sec-
tion 465(a)(2)(A) for loan cancellation for Per-
kins loan recipients who teach in such schools;
‘‘(B) if employed as a secondary school
teacher, is teaching—
‘‘(i) a subject area that is relevant to
the borrower’s academic major as certified
by the chief administrative officer of the
public or nonprofit private secondary
school in which the borrower is employed;
or
‘‘(ii) special education or bilingual
education;
‘‘(C) if employed as an elementary school
teacher, has demonstrated, as certified by the
chief administrative officer of the public or non-
630
HR 1990 IH
profit private elementary school in which the
borrower is employed, knowledge and teaching
skills in reading, writing, mathematics, special
education, bilingual education, and other areas
of the elementary school curriculum; and
‘‘(D) is fully qualified, as such term is de-
fined in section 2812(4)(A) of the Elementary
and Secondary Education Act of 1965; and
‘‘(2) is not in default on a loan for which the
borrower seeks forgiveness.
‘‘(c) QUALIFIED LOANS AMOUNT.—
‘‘(1) IN GENERAL.—Of the aggregate loan obli-
gations of a borrower on Federal Direct Stafford
Loans and Federal Direct Unsubsidized Stafford
Loans made under this part that are outstanding
after the completion of the first complete school year
of teaching described in subsection (b)(1) for which
the borrower applies for cancellation under this sec-
tion, the Secretary shall cancel not more than—
‘‘(A) $3,000 for each of the first and sec-
ond such complete school years;
‘‘(B) $4,000 for the third such complete
school year; and
‘‘(C) $5,000 for each of the fourth and
fifth such complete school years.
631
HR 1990 IH
‘‘(2) TREATMENT OF CONSOLIDATION LOANS.—
A loan amount for a Federal Direct Consolidation
Loan may be a qualified loan amount for the pur-
poses of this subsection only to the extent that such
loan amount was used to repay a Federal Direct
Stafford Loan, a Federal Direct Unsubsidized Staf-
ford Loan, or a loan made under section 428 or
428H, for a borrower who meets the requirements of
subsection (b), as determined in accordance with
regulations prescribed by the Secretary.
‘‘(d) REGULATIONS.—The Secretary is authorized to
issue such regulations as may be necessary to carry out
the provisions of this section.
‘‘(e) CONSTRUCTION.—Nothing in this section shall
be construed to authorize any refunding of any repayment
of a loan.
‘‘(f) LIST.—If the list of schools in which a teacher
may perform service pursuant to subsection (b) is not
available before May 1 of any year, the Secretary may use
the list for the year preceding the year for which the deter-
mination is made to make such service determination.
‘‘(g) ADDITIONAL ELIGIBILITY PROVISIONS.—
‘‘(1) CONTINUED
ELIGIBILITY.—Any teacher
who performs service in a school that—
632
HR 1990 IH
‘‘(A) meets the requirements of subsection
(b)(1)(A) in any year during such service; and
‘‘(B) in a subsequent year fails to meet the
requirements of such subsection,
may continue to teach in such school and shall be
eligible for loan forgiveness pursuant to subsection
(b).
‘‘(2) PREVENTION OF DOUBLE BENEFITS.—No
borrower may, for the same service, receive a benefit
under both this subsection and subtitle D of title I
of the National and Community Service Act of 1990
(42 U.S.C. 12571 et seq.). No borrower may receive
a reduction of loan obligations under both this sec-
tion and section 428J.
‘‘(h) DEFINITION.—For purposes of this section, the
term ‘year’, where applied to service as a teacher, means
an academic year as defined by the Secretary.’’.
CHAPTER 6—SCHOOL CONSTRUCTION
Subchapter A—School Modernization Bonds
SEC. 3501. SHORT TITLE.
This subchapter may be cited as the ‘‘America’s Bet-
ter Classroom Act of 2001’’.
633
HR 1990 IH
SEC. 
3502. 
EXPANSION 
OF 
INCENTIVES 
FOR 
PUBLIC
SCHOOLS.
(a) IN GENERAL.—Chapter 1 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the
following:
‘‘Subchapter Y—Public School Modernization
Provisions
‘‘Sec. 1400K. Credit to holders of qualified public school moderniza-
tion bonds.
‘‘Sec. 1400L. Qualified school construction bonds.
‘‘Sec. 1400M. Qualified zone academy bonds.
‘‘SEC. 1400K. CREDIT TO HOLDERS OF QUALIFIED PUBLIC
SCHOOL MODERNIZATION BONDS.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax-
payer who holds a qualified public school modernization
bond on a credit allowance date of such bond which occurs
during the taxable year, there shall be allowed as a credit
against the tax imposed by this chapter for such taxable
year an amount equal to the sum of the credits determined
under subsection (b) with respect to credit allowance dates
during such year on which the taxpayer holds such bond.
‘‘(b) AMOUNT OF CREDIT.—
‘‘(1) IN GENERAL.—The amount of the credit
determined under this subsection with respect to any
credit allowance date for a qualified public school
modernization bond is 25 percent of the annual
credit determined with respect to such bond.
634
HR 1990 IH
‘‘(2) ANNUAL CREDIT.—The annual credit de-
termined with respect to any qualified public school
modernization bond is the product of—
‘‘(A) the applicable credit rate, multiplied
by
‘‘(B) the outstanding face amount of the
bond.
‘‘(3) APPLICABLE CREDIT RATE.—For purposes
of paragraph (1), the applicable credit rate with re-
spect to an issue is the rate equal to an average
market yield (as of the day before the date of
issuance of the issue) on outstanding long-term cor-
porate debt obligations (determined under regula-
tions prescribed by the Secretary).
‘‘(4) SPECIAL RULE FOR ISSUANCE AND RE-
DEMPTION.—In the case of a bond which is issued
during the 3-month period ending on a credit allow-
ance date, the amount of the credit determined
under this subsection with respect to such credit al-
lowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-
month period during which the bond is outstanding.
A similar rule shall apply when the bond is re-
deemed.
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—
635
HR 1990 IH
‘‘(1) IN GENERAL.—The credit allowed under
subsection (a) for any taxable year shall not exceed
the excess of—
‘‘(A) the sum of the regular tax liability
(as defined in section 26(b)) plus the tax im-
posed by section 55, over
‘‘(B) the sum of the credits allowable
under part IV of subchapter A (other than sub-
part C thereof, relating to refundable credits).
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the
credit allowable under subsection (a) exceeds the
limitation imposed by paragraph (1) for such taxable
year, such excess shall be carried to the succeeding
taxable year and added to the credit allowable under
subsection (a) for such taxable year.
‘‘(d) QUALIFIED PUBLIC SCHOOL MODERNIZATION
BOND; CREDIT ALLOWANCE DATE.—For purposes of this
section—
‘‘(1) QUALIFIED PUBLIC SCHOOL MODERNIZA-
TION BOND.—The term ‘qualified public school mod-
ernization bond’ means—
‘‘(A) a qualified zone academy bond, and
‘‘(B) a qualified school construction bond.
‘‘(2) CREDIT
ALLOWANCE
DATE.—The term
‘credit allowance date’ means—
636
HR 1990 IH
‘‘(A) March 15,
‘‘(B) June 15,
‘‘(C) September 15, and
‘‘(D) December 15.
Such term includes the last day on which the bond
is outstanding.
‘‘(e) OTHER DEFINITIONS.—For purposes of this
subchapter—
‘‘(1) LOCAL EDUCATIONAL AGENCY.—The term
‘local educational agency’ has the meaning given to
such term by section 14101 of the Elementary and
Secondary Education Act of 1965. Such term in-
cludes the local educational agency that serves the
District of Columbia but does not include any other
State agency.
‘‘(2) BOND.—The term ‘bond’ includes any ob-
ligation.
‘‘(3) STATE.—The term ‘State’ includes the
District of Columbia and any possession of the
United States.
‘‘(4) PUBLIC
SCHOOL
FACILITY.—The term
‘public school facility’ shall not include—
‘‘(A) any stadium or other facility pri-
marily used for athletic contests or exhibitions
637
HR 1990 IH
or other events for which admission is charged
to the general public, or
‘‘(B) any facility which is not owned by a
State or local government or any agency or in-
strumentality of a State or local government.
‘‘(f) CREDIT INCLUDED IN GROSS INCOME.—Gross
income includes the amount of the credit allowed to the
taxpayer under this section (determined without regard to
subsection (c)) and the amount so included shall be treat-
ed as interest income.
‘‘(g) BONDS HELD
BY REGULATED INVESTMENT
COMPANIES.—If any qualified public school modernization
bond is held by a regulated investment company, the credit
determined under subsection (a) shall be allowed to share-
holders of such company under procedures prescribed by
the Secretary.
‘‘(h) CREDITS MAY BE STRIPPED.—Under regula-
tions prescribed by the Secretary—
‘‘(1) IN GENERAL.—There may be a separation
(including at issuance) of the ownership of a quali-
fied public school modernization bond and the enti-
tlement to the credit under this section with respect
to such bond. In case of any such separation, the
credit under this section shall be allowed to the per-
son who on the credit allowance date holds the in-
638
HR 1990 IH
strument evidencing the entitlement to the credit
and not to the holder of the bond.
‘‘(2) CERTAIN RULES TO APPLY.—In the case
of a separation described in paragraph (1), the rules
of section 1286 shall apply to the qualified public
school modernization bond as if it were a stripped
bond and to the credit under this section as if it
were a stripped coupon.
‘‘(i) TREATMENT FOR ESTIMATED TAX PURPOSES.—
Solely for purposes of sections 6654 and 6655, the credit
allowed by this section to a taxpayer by reason of holding
a qualified public school modernization bonds on a credit
allowance date shall be treated as if it were a payment
of estimated tax made by the taxpayer on such date.
‘‘(j) CREDIT MAY BE TRANSFERRED.—Nothing in
any law or rule of law shall be construed to limit the trans-
ferability of the credit allowed by this section through sale
and repurchase agreements.
‘‘(k) REPORTING.—Issuers of qualified public school
modernization bonds shall submit reports similar to the
reports required under section 149(e).
‘‘(l) TERMINATION.—This section shall not apply to
any bond issued after September 30, 2006.
639
HR 1990 IH
‘‘SEC. 1400L. QUALIFIED SCHOOL CONSTRUCTION BONDS.
‘‘(a) QUALIFIED SCHOOL CONSTRUCTION BOND.—
For purposes of this subchapter, the term ‘qualified school
construction bond’ means any bond issued as part of an
issue if—
‘‘(1) 95 percent or more of the proceeds of such
issue are to be used for the construction, rehabilita-
tion, or repair of a public school facility or for the
acquisition of land on which such a facility is to be
constructed with part of the proceeds of such issue,
‘‘(2) the bond is issued by a State or local gov-
ernment within the jurisdiction of which such school
is located,
‘‘(3) the issuer designates such bond for pur-
poses of this section, and
‘‘(4) the term of each bond which is part of
such issue does not exceed 15 years.
‘‘(b) LIMITATION
ON AMOUNT
OF BONDS DES-
IGNATED.—The maximum aggregate face amount of
bonds issued during any calendar year which may be des-
ignated under subsection (a) by any issuer shall not exceed
the sum of—
‘‘(1) the limitation amount allocated under sub-
section (d) for such calendar year to such issuer,
and
640
HR 1990 IH
‘‘(2) if such issuer is a large local educational
agency (as defined in subsection (e)(4)) or is issuing
on behalf of such an agency, the limitation amount
allocated under subsection (e) for such calendar year
to such agency.
‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS
DESIGNATED.—There is a national qualified school con-
struction bond limitation for each calendar year. Such lim-
itation is—
‘‘(1) $11,000,000,000 for 2002,
‘‘(2) $11,000,000,000 for 2003, and
‘‘(3) except as provided in subsection (f), zero
after 2003.
‘‘(d) 60 PERCENT
OF
LIMITATION
ALLOCATED
AMONG STATES.—
‘‘(1) IN GENERAL.—60 percent of the limitation
applicable under subsection (c) for any calendar year
shall be allocated by the Secretary among the States
in proportion to the respective numbers of children
in each State who have attained age 5 but not age
18 for the most recent fiscal year ending before such
calendar year. The limitation amount allocated to a
State under the preceding sentence shall be allocated
by the State to issuers within such State and such
641
HR 1990 IH
allocations may be made only if there is an approved
State application.
‘‘(2) MINIMUM ALLOCATIONS TO STATES.—
‘‘(A) IN
GENERAL.—The Secretary shall
adjust the allocations under this subsection for
any calendar year for each State to the extent
necessary to ensure that the sum of—
‘‘(i) the amount allocated to such
State under this subsection for such year,
and
‘‘(ii) the aggregate amounts allocated
under subsection (e) to large local edu-
cational agencies in such State for such
year,
is not less than an amount equal to such
State’s minimum percentage of the amount to
be allocated under paragraph (1) for the cal-
endar year.
‘‘(B) MINIMUM
PERCENTAGE.—A State’s
minimum percentage for any calendar year is
the minimum percentage described in section
1124(d) of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6334(d)) for
such State for the most recent fiscal year end-
ing before such calendar year.
642
HR 1990 IH
‘‘(3) 
ALLOCATIONS
TO
CERTAIN
POSSES-
SIONS.—The amount to be allocated under para-
graph (1) to any possession of the United States
other than Puerto Rico shall be the amount which
would have been allocated if all allocations under
paragraph (1) were made on the basis of respective
populations of individuals below the poverty line (as
defined by the Office of Management and Budget).
In making other allocations, the amount to be allo-
cated under paragraph (1) shall be reduced by the
aggregate amount allocated under this paragraph to
possessions of the United States.
‘‘(4) ALLOCATIONS FOR INDIAN SCHOOLS.—In
addition to the amounts allocated under this sub-
section, $200,000,000 for calendar year 2002, and
$200,000,000 for calendar year 2003, shall be allo-
cated by the Secretary of the Interior for purposes
of the construction, rehabilitation, and repair of
schools funded by the Bureau of Indian Affairs. In
the case of amounts allocated under the preceding
sentence, Indian tribal governments (as defined in
section 7871) shall be treated as qualified issuers for
purposes of this subchapter.
‘‘(5) APPROVED
STATE
APPLICATION.—For
purposes of paragraph (1), the term ‘approved State
643
HR 1990 IH
application’ means an application which is approved
by the Secretary of Education and which includes—
‘‘(A) the results of a recent publicly-avail-
able survey (undertaken by the State with the
involvement of local education officials, mem-
bers of the public, and experts in school con-
struction and management) of such State’s
needs for public school facilities, including de-
scriptions of—
‘‘(i) health and safety problems at
such facilities,
‘‘(ii) the capacity of public schools in
the State to house projected enrollments,
and
‘‘(iii) the extent to which the public
schools in the State offer the physical in-
frastructure needed to provide a high-qual-
ity education to all students, and
‘‘(B) a description of how the State will al-
locate to local educational agencies, or other-
wise use, its allocation under this subsection to
address the needs identified under subpara-
graph (A), including a description of how it
will—
644
HR 1990 IH
‘‘(i) ensure that the needs of both
rural and urban areas will be recognized,
‘‘(ii) give highest priority to localities
with the greatest needs, as demonstrated
by inadequate school facilities coupled with
a low level of resources to meet those
needs,
‘‘(iii) use its allocation under this sub-
section to assist localities that lack the fis-
cal capacity to issue bonds on their own,
and
‘‘(iv) ensure that its allocation under
this subsection is used only to supplement,
and not supplant, the amount of school
construction, rehabilitation, and repair in
the State that would have occurred in the
absence of such allocation.
Any allocation under paragraph (1) by a State shall
be binding if such State reasonably determined that
the allocation was in accordance with the plan ap-
proved under this paragraph.
‘‘(e) 40 PERCENT
OF
LIMITATION
ALLOCATED
AMONG LARGEST SCHOOL DISTRICTS.—
‘‘(1) IN GENERAL.—40 percent of the limitation
applicable under subsection (c) for any calendar year
645
HR 1990 IH
shall be allocated under paragraph (2) by the Sec-
retary among local educational agencies which are
large local educational agencies for such year. No
qualified school construction bond may be issued by
reason of an allocation to a large local educational
agency under the preceding sentence unless such
agency has an approved local application.
‘‘(2) ALLOCATION FORMULA.—The amount to
be allocated under paragraph (1) for any calendar
year shall be allocated among large local educational
agencies in proportion to the respective amounts
each such agency received for Basic Grants under
subpart 2 of part A of title I of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6331
et seq.) for the most recent fiscal year ending before
such calendar year.
‘‘(3) ALLOCATION OF UNUSED LIMITATION TO
STATE.—The amount allocated under this subsection
to a large local educational agency for any calendar
year may be reallocated by such agency to the State
in which such agency is located for such calendar
year. Any amount reallocated to a State under the
preceding sentence may be allocated as provided in
subsection (d)(1).
646
HR 1990 IH
‘‘(4) LARGE LOCAL EDUCATIONAL AGENCY.—
For purposes of this section, the term ‘large local
educational agency’ means, with respect to a cal-
endar year, any local educational agency if such
agency is—
‘‘(A) among the 100 local educational
agencies with the largest numbers of children
aged 5 through 17 from families living below
the poverty level, as determined by the Sec-
retary using the most recent data available
from the Department of Commerce that are
satisfactory to the Secretary, or
‘‘(B) 1 of not more than 25 local edu-
cational agencies (other than those described in
subparagraph (A)) that the Secretary of Edu-
cation determines (based on the most recent
data available satisfactory to the Secretary) are
in particular need of assistance, based on a low
level of resources for school construction, a high
level of enrollment growth, or such other factors
as the Secretary deems appropriate.
‘‘(5) APPROVED
LOCAL
APPLICATION.—For
purposes of paragraph (1), the term ‘approved local
application’ means an application which is approved
by the Secretary of Education and which includes—
647
HR 1990 IH
‘‘(A) the results of a recent publicly-avail-
able survey (undertaken by the local educational
agency or the State with the involvement of
school officials, members of the public, and ex-
perts in school construction and management)
of such agency’s needs for public school facili-
ties, including descriptions of—
‘‘(i) the overall condition of the local
educational agency’s school facilities, in-
cluding health and safety problems,
‘‘(ii) the capacity of the agency’s
schools to house projected enrollments, and
‘‘(iii) the extent to which the agency’s
schools offer the physical infrastructure
needed to provide a high-quality education
to all students,
‘‘(B) a description of how the local edu-
cational agency will use its allocation under this
subsection to address the needs identified under
subparagraph (A), and
‘‘(C) a description of how the local edu-
cational agency will ensure that its allocation
under this subsection is used only to supple-
ment, and not supplant, the amount of school
construction, rehabilitation, or repair in the lo-
648
HR 1990 IH
cality that would have occurred in the absence
of such allocation.
A rule similar to the rule of the last sentence of sub-
section (d)(5) shall apply for purposes of this para-
graph.
‘‘(f) CARRYOVER OF UNUSED LIMITATION.—If for
any calendar year—
‘‘(1) the amount allocated under subsection (d)
to any State, exceeds
‘‘(2) the amount of bonds issued during such
year which are designated under subsection (a) pur-
suant to such allocation,
the limitation amount under such subsection for such
State for the following calendar year shall be increased
by the amount of such excess. A similar rule shall apply
to the amounts allocated under subsection (d)(5) or (e).
‘‘(g) SPECIAL RULES RELATING TO ARBITRAGE.—
‘‘(1) IN GENERAL.—A bond shall not be treated
as failing to meet the requirement of subsection
(a)(1) solely by reason of the fact that the proceeds
of the issue of which such bond is a part are in-
vested for a temporary period (but not more than 36
months) until such proceeds are needed for the pur-
pose for which such issue was issued.
649
HR 1990 IH
‘‘(2) BINDING COMMITMENT REQUIREMENT.—
Paragraph (1) shall apply to an issue only if, as of
the date of issuance, there is a reasonable expecta-
tion that—
‘‘(A) at least 10 percent of the proceeds of
the issue will be spent within the 6-month pe-
riod beginning on such date for the purpose for
which such issue was issued, and
‘‘(B) the remaining proceeds of the issue
will be spent with due diligence for such pur-
pose.
‘‘(3) EARNINGS ON PROCEEDS.—Any earnings
on proceeds during the temporary period shall be
treated as proceeds of the issue for purposes of ap-
plying subsection (a)(1) and paragraph (1) of this
subsection.
‘‘SEC. 1400M. QUALIFIED ZONE ACADEMY BONDS.
‘‘(a) QUALIFIED ZONE ACADEMY BOND.—For pur-
poses of this subchapter—
‘‘(1) IN GENERAL.—The term ‘qualified zone
academy bond’ means any bond issued as part of an
issue if—
‘‘(A) 95 percent or more of the proceeds of
such issue are to be used for a qualified pur-
650
HR 1990 IH
pose with respect to a qualified zone academy
established by a local educational agency,
‘‘(B) the bond is issued by a State or local
government within the jurisdiction of which
such academy is located,
‘‘(C) the issuer—
‘‘(i) designates such bond for purposes
of this section,
‘‘(ii) certifies that it has written as-
surances that the private business con-
tribution requirement of paragraph (2) will
be met with respect to such academy, and
‘‘(iii) certifies that it has the written
approval of the local educational agency
for such bond issuance, and
‘‘(D) the term of each bond which is part
of such issue does not exceed 15 years.
Rules similar to the rules of section 1400L(g) shall
apply for purposes of paragraph (1).
‘‘(2) PRIVATE
BUSINESS
CONTRIBUTION
RE-
QUIREMENT.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the private business contribution re-
quirement of this paragraph is met with respect
to any issue if the local educational agency that
651
HR 1990 IH
established the qualified zone academy has writ-
ten commitments from private entities to make
qualified contributions having a present value
(as of the date of issuance of the issue) of not
less than 10 percent of the proceeds of the
issue.
‘‘(B) QUALIFIED
CONTRIBUTIONS.—For
purposes of subparagraph (A), the term ‘quali-
fied contribution’ means any contribution (of a
type and quality acceptable to the local edu-
cational agency) of—
‘‘(i) equipment for use in the qualified
zone academy (including state-of-the-art
technology and vocational equipment),
‘‘(ii) technical assistance in developing
curriculum or in training teachers in order
to promote appropriate market driven tech-
nology in the classroom,
‘‘(iii) services of employees as volun-
teer mentors,
‘‘(iv) internships, field trips, or other
educational opportunities outside the acad-
emy for students, or
‘‘(v) any other property or service
specified by the local educational agency.
652
HR 1990 IH
‘‘(3) QUALIFIED
ZONE
ACADEMY.—The term
‘qualified zone academy’ means any public school (or
academic program within a public school) which is
established by and operated under the supervision of
a local educational agency to provide education or
training below the postsecondary level if—
‘‘(A) such public school or program (as the
case may be) is designed in cooperation with
business to enhance the academic curriculum,
increase graduation and employment rates, and
better prepare students for the rigors of college
and the increasingly complex workforce,
‘‘(B) students in such public school or pro-
gram (as the case may be) will be subject to the
same academic standards and assessments as
other students educated by the local educational
agency,
‘‘(C) the comprehensive education plan of
such public school or program is approved by
the local educational agency, and
‘‘(D)(i) such public school is located in an
empowerment zone or enterprise community
(including any such zone or community des-
ignated after the date of the enactment of this
section), or
653
HR 1990 IH
‘‘(ii) there is a reasonable expectation (as
of the date of issuance of the bonds) that at
least 35 percent of the students attending such
school or participating in such program (as the
case may be) will be eligible for free or reduced-
cost lunches under the school lunch program es-
tablished under the National School Lunch Act.
‘‘(4) QUALIFIED PURPOSE.—The term ‘quali-
fied purpose’ means, with respect to any qualified
zone academy—
‘‘(A) constructing, rehabilitating, or repair-
ing the public school facility in which the acad-
emy is established,
‘‘(B) acquiring the land on which such fa-
cility is to be constructed with part of the pro-
ceeds of such issue,
‘‘(C) providing equipment for use at such
academy,
‘‘(D) developing course materials for edu-
cation to be provided at such academy, and
‘‘(E) training teachers and other school
personnel in such academy.
‘‘(b) LIMITATIONS
ON AMOUNT
OF BONDS DES-
IGNATED.—
654
HR 1990 IH
‘‘(1) IN GENERAL.—There is a national zone
academy bond limitation for each calendar year.
Such limitation is—
‘‘(A) $400,000,000 for 1998,
‘‘(B) $400,000,000 for 1999,
‘‘(C) $400,000,000 for 2000,
‘‘(D) $400,000,000 for 2001,
‘‘(E) $1,400,000,000 for 2002,
‘‘(F) $1,400,000,000 for 2003, and
‘‘(G) except as provided in paragraph (3),
zero after 2003.
‘‘(2) ALLOCATION OF LIMITATION.—
‘‘(A) ALLOCATION AMONG STATES.—
‘‘(i) 1998, 1999, 2000, AND 2001 LIMI-
TATIONS.—The national zone academy
bond limitations for calendar years 1998,
1999, 2000, and 2001 shall be allocated by
the Secretary among the States on the
basis of their respective populations of in-
dividuals below the poverty line (as defined
by the Office of Management and Budget).
‘‘(ii) LIMITATION
AFTER
2001.—The
national zone academy bond limitation for
any calendar year after 2001 shall be allo-
cated by the Secretary among the States in
655
HR 1990 IH
proportion to the respective amounts each
such State received for Basic Grants under
subpart 2 of part A of title I of the Ele-
mentary and Secondary Education Act of
1965 (20 U.S.C. 6331 et seq.) for the
most recent fiscal year ending before such
calendar year.
‘‘(B) 
ALLOCATION
TO
LOCAL
EDU-
CATIONAL
AGENCIES.—The limitation amount
allocated to a State under subparagraph (A)
shall be allocated by the State to qualified zone
academies within such State.
‘‘(C) DESIGNATION SUBJECT TO LIMITA-
TION AMOUNT.—The maximum aggregate face
amount of bonds issued during any calendar
year which may be designated under subsection
(a) with respect to any qualified zone academy
shall not exceed the limitation amount allocated
to such academy under subparagraph (B) for
such calendar year.
‘‘(3) CARRYOVER OF UNUSED LIMITATION.—If
for any calendar year—
‘‘(A) the limitation amount under this sub-
section for any State, exceeds
656
HR 1990 IH
‘‘(B) the amount of bonds issued during
such year which are designated under sub-
section (a) (or the corresponding provisions of
prior law) with respect to qualified zone acad-
emies within such State,
the limitation amount under this subsection for such
State for the following calendar year shall be in-
creased by the amount of such excess.’’
(b) REPORTING.—Subsection (d) of section 6049 of
the Internal Revenue Code of 1986 (relating to returns
regarding payments of interest) is amended by adding at
the end the following:
‘‘(8) REPORTING
OF
CREDIT
ON
QUALIFIED
PUBLIC SCHOOL MODERNIZATION BONDS.—
‘‘(A) IN GENERAL.—For purposes of sub-
section (a), the term ‘interest’ includes amounts
includible in gross income under section
1400K(f) and such amounts shall be treated as
paid on the credit allowance date (as defined in
section 1400K(d)(2)).
‘‘(B) 
REPORTING
TO
CORPORATIONS,
ETC.—Except as otherwise provided in regula-
tions, in the case of any interest described in
subparagraph (A) of this paragraph, subsection
(b)(4) of this section shall be applied without
657
HR 1990 IH
regard to subparagraphs (A), (H), (I), (J), (K),
and (L)(i).
‘‘(C) REGULATORY AUTHORITY.—The Sec-
retary may prescribe such regulations as are
necessary or appropriate to carry out the pur-
poses of this paragraph, including regulations
which require more frequent or more detailed
reporting.’’
(c) CONFORMING AMENDMENTS.—
(1) Subchapter U of chapter 1 of the Internal
Revenue Code of 1986 is amended by striking part
IV, by redesignating part V as part IV, and by re-
designating section 1397F as section 1397E.
(2) The table of subchapters for chapter 1 of
the Internal Revenue Code of 1986 is amended by
adding at the end the following:
‘‘Subchapter Y. Public school modernization provisions.’’
(3) The table of parts of subchapter U of chap-
ter 1 of the Internal Revenue Code of 1986 is
amended by striking the last 2 items and inserting
the following:
‘‘Part IV. Regulations.’’
(e) EFFECTIVE DATES.—
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by
658
HR 1990 IH
this section shall apply to obligations issued after
December 31, 2001.
(2) REPEAL OF RESTRICTION ON ZONE ACAD-
EMY
BOND
HOLDERS.—In the case of bonds to
which section 1397E of the Internal Revenue Code
of 1986 (as in effect before the date of enactment
of this Act) applies, the limitation of such section to
eligible taxpayers (as defined in subsection (d)(6) of
such section) shall not apply after the date of enact-
ment of this Act.
SEC. 3503. APPLICATION OF CERTAIN LABOR STANDARDS
ON 
CONSTRUCTION 
PROJECTS 
FINANCED
UNDER PUBLIC SCHOOL MODERNIZATION
PROGRAM.
Section 439 of the General Education Provisions Act
(relating to labor standards) (20 U.S.C. 1232b) is
amended—
(1) by inserting ‘‘(a)’’ before ‘‘All laborers and
mechanics’’; and
(2) by adding at the end the following:
‘‘(b)(1) For purposes of this section, the term ‘appli-
cable program’ also includes the qualified zone academy
bond provisions enacted by section 226 of the Taxpayer
Relief Act of 1997 and the program established by section
3502 of the America’s Better Classroom Act of 2001.
659
HR 1990 IH
‘‘(2) A State or local government participating in a
program described in paragraph (1) shall—
‘‘(A) in the awarding of contracts, give priority
to contractors with substantial numbers of employ-
ees residing in the local education area to be served
by the school being constructed; and
‘‘(B) include in the construction contract for
such school a requirement that the contractor give
priority in hiring new workers to individuals residing
in such local education area.
‘‘(3) In the case of a program described in paragraph
(1), nothing in this subsection or subsection (a) shall be
construed to deny any tax credit allowed under such pro-
gram. If amounts are required to be withheld from con-
tractors to pay wages to which workers are entitled, such
amounts shall be treated as expended for construction pur-
poses in determining whether the requirements of such
program are met.’’.
Subchapter B—Schools as Centers of the
Community
SEC. 3551. FINDINGS.
Congress makes the following findings:
(1) Communities across the Nation need to
build and modernize thousands of public elementary
schools and secondary schools in the coming decade
660
HR 1990 IH
in ways that reflect new approaches to teaching and
learning, and in ways that reflect the fact that learn-
ing is a lifelong process for persons of all ages.
These schools can make an enduring difference for
these communities by affecting not just students but
entire neighborhoods for generations.
(2) The National Symposium on School Design
has recommended that local educational agencies
hold community dialogues that discuss the planning
and design of their new school buildings. Community
partnerships of parents, educators, architects, urban
planners, students, and other interested parties can
assist local educational agencies to design new
schools that better meet the needs of their commu-
nities now and in the future.
(3) Establishing such community partnerships
for the purpose of broadening public participation in
the planning and design of schools encourages
broader community involvement in the schools, gen-
erates creativity in the planning process, and pro-
motes savings, cost-sharing, and the most effective
use of the school building by the entire community.
Such partnerships can help create schools that are
centers of teaching and learning for the entire com-
munity.
661
HR 1990 IH
SEC. 3552. PURPOSE.
The purpose of this subchapter is to assist local edu-
cational agencies and their communities to increase the
involvement of parents, teachers, students, and community
groups in the planning and design of new and renovated
public elementary school and secondary school buildings
that—
(1) enhance teaching and learning, and accom-
modate the needs of all learners;
(2) serve as a center of the community;
(3) promote health, safety, and security;
(4) effectively use all available resources; and
(5) are flexible and can accommodate changing
community needs.
SEC. 3553. PROGRAM AUTHORIZED.
(a) GRANTS AUTHORIZED.—
(1) IN
GENERAL.—From funds appropriated
under section 3556, the Secretary shall award
grants to local educational agencies participating in
eligible consortia to enable the eligible consortia to
support the planning and design of—
(A) new elementary school or secondary
school buildings; or
(B) the renovation of existing elementary
school or secondary school buildings.
662
HR 1990 IH
(2) DEFINITION OF ELIGIBLE CONSORTIUM.—
In this subchapter, the term ‘‘eligible consortium’’
means a consortium that—
(A) shall include at least 1 local edu-
cational agency; and
(B) may include such organizations and in-
dividuals as a State educational agency, a com-
munity-based organization, a local government,
a business or industry, an architect, a parent,
teacher, or senior citizen group, a library, or a
museum.
(b) REQUIREMENTS.—
(1) DURATION.—Grants under this subchapter
shall be awarded for not more than 1 year.
(2) LIMITATION.—Not more than 1 grant pro-
vided under this subchapter may be used to plan or
design the same school.
(3) MATCHING.—A grant under this subchapter
shall not be used to pay for more than 50 percent
of the cost of a planning or design project. A recipi-
ent of a grant under this subchapter shall provide at
least 50 percent of the cost of the planning or design
project from non-Federal sources, which may include
in-kind contributions, fairly evaluated.
663
HR 1990 IH
(c) 
GEOGRAPHIC
DISTRIBUTION.—In 
awarding
grants under this subchapter, the Secretary is authorized
to take such steps as are necessary to ensure an equitable
geographic distribution of the grants, including distrib-
uting the grants among rural, urban, and suburban local
educational agencies.
SEC. 3554. USE OF FUNDS.
A grant under this subchapter shall be used by a local
educational agency to support the planning or design of
a new school building, or of the renovation of an existing
school building, and may be used for activities such as—
(1) community outreach activities (including the
development and circulation of explanatory materials
and the cost of meetings) designed to encourage
greater participation by the community;
(2) the development, with the involvement of all
stakeholders, of a master plan for a school district;
and
(3) necessary administrative support for the eli-
gible consortium.
SEC. 3555. APPLICATIONS.
(a) IN GENERAL.—Each local educational agency de-
siring a grant under this subchapter shall submit to the
Secretary an application at such time, and containing such
information, as the Secretary may require.
664
HR 1990 IH
(b) CONTENTS.—Each application submitted under
this subchapter shall describe—
(1) the community to be served by the new or
renovated school, including the needs of that com-
munity with respect to such school;
(2) the individuals and groups that compose the
eligible consortium and their respective functions;
(3) the project activities to be supported by the
grant and how the activities will help meet the needs
of that community and the purpose of this sub-
chapter; and
(4) the availability of resources for the project,
and how the resources will be obtained.
SEC. 3556. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out
this subchapter $10,000,000 for fiscal year 2002, and
such sums as may be necessary for each of the 4 suc-
ceeding fiscal years.
Chapter 7—Child Opportunity Zone Family
Centers
SEC. 3571. CHILD OPPORTUNITY ZONE FAMILY CENTERS.
Title X of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 8001 et seq.), as amended by sec-
tion 3401, is further amended by inserting after part L
the following: