formance for 2 or more consecutive years, the 
Secretary may, after notice and opportunity for 
a hearing, withhold from the eligible agency all, 
or a portion of, the eligible agency’s allotment 
under this title. 
‘‘(B) WAIVER
FOR
EXCEPTIONAL
CIR-
CUMSTANCES.—The Secretary may waive the 
sanction in subparagraph (A) due to exceptional 
or uncontrollable circumstances, such as a nat-
ural disaster or a precipitous and unforeseen 
decline in the financial resources of the State. 
‘‘(4) FUNDS RESULTING FROM REDUCED AL-
LOTMENTS.—
‘‘(A) IN
GENERAL.—The Secretary shall 
use funds withheld under paragraph (3) for a 
State served by an eligible agency, to provide 
(through alternative arrangements) services and 
activities within the State to meet the purposes 
of this Act. 
‘‘(B) REDISTRIBUTION.—If the Secretary 
cannot satisfactorily use funds withheld under 
paragraph (3), then the amount of funds re-
tained by the Secretary as a result of a reduc-
tion in an allotment made under paragraph (3)
shall be redistributed to other eligible agencies 
in accordance with section 111. 
‘‘(b) LOCAL PROGRAM IMPROVEMENT.—
‘‘(1) LOCAL EVALUATION.—Each eligible agen-
cy shall evaluate annually, using the local adjusted 
levels of performance described in section 113(b)(4), 
the vocational and technical education activities of 
each eligible recipient receiving funds under this 
title. 
‘‘(2) PLAN.—
‘‘(A) IN GENERAL.—If, after reviewing the 
evaluation, the eligible agency determines that 
an eligible recipient is not making substantial 
progress in achieving the local adjusted levels of 
performance, or that an eligible recipient dem-
onstrates under section 113(b)(4)(C) persistent 
or a widening of performance gaps between 
multiple categories of students served by the eli-
gible recipient in comparison to all students in 
the State served under the Act, the eligible 
agency shall—
‘‘(i) conduct an assessment of the 
educational needs that the eligible recipient 
shall address to overcome local perform-
ance deficiencies;
‘‘(ii) enter into an improvement plan 
agreement with an eligible recipient based 
on the results of the assessment, for the 
first program year succeeding the program 
year in which the eligible recipient failed to 
meet the local adjusted levels of perform-
ance, which plan shall demonstrate how 
the local performance deficiencies will be 
corrected and include strategies for profes-
sional development and instructional and 
other programmatic innovations of dem-
onstrated effectiveness, giving special con-
sideration to performance gaps identified 
under section 113(b)(4)(C); and 
‘‘(iii) conduct regular evaluations of 
the progress being made toward reaching 
the local adjusted levels of performance as 
described 
in 
section 
113(b)(4) 
and 
progress on implementing the improvement 
plan. 
‘‘(B) CONSULTATION.—The eligible agency 
shall conduct the activities described in para-
graph (2) in consultation with teachers, par-
ents, other school staff, appropriate agencies,
and other appropriate individuals and organiza-
tions. 
‘‘(3) TECHNICAL ASSISTANCE.—If the eligible 
agency determines that an eligible recipient is not 
properly implementing the eligible recipient’s respon-
sibilities under section 134, or is not making sub-
stantial progress in meeting the purpose of this Act, 
based on the local adjusted levels of performance, 
the eligible agency shall provide technical assistance 
to the eligible recipient to assist such recipient in 
carrying out the improvement activities consistent 
with the requirements of this Act. 
‘‘(4) SUBSEQUENT ACTION.—
‘‘(A) IN GENERAL.—If an eligible recipient 
fails to meet the local adjusted levels of per-
formance as described in section 113(b)(4) and 
the purposes of this Act, has not implemented 
an improvement plan as described in paragraph 
(2), has shown no improvement within 1 year 
after implementing an improvement plan as de-
scribed in paragraph (2), or has failed to meet 
the local adjusted levels of performance for 2 or 
more consecutive years, the eligible agency may, 
after notice and opportunity for a hearing, 
withhold from the eligible recipient all, or a por-
tion of, the eligible recipient’s allotment under 
this title. 
‘‘(B) WAIVER
FOR
EXCEPTIONAL
CIR-
CUMSTANCES.—The eligible agency may waive 
the sanction under this paragraph due to excep-
tional or uncontrollable circumstances such as a 
natural disaster or a precipitous and unforeseen 
decline in the financial resources of the State. 
‘‘(5) FUNDS RESULTING FROM REDUCED AL-
LOTMENTS.—The eligible agency shall use funds 
withheld under paragraph (4) to continue to provide 
(through alternative arrangements) services and ac-
tivities in the area served by such recipient to meet 
the purpose of this Act.’’. 
SEC. 14. STATE LEADERSHIP ACTIVITIES. 
Section 124 (20 U.S.C. 2344) is amended—
(1) in subsection (b)—
(A) in paragraph (1), by striking ‘‘learn-
ing’’ and inserting ‘‘education’’; 
(B) in paragraph (2)—
(i) by inserting ‘‘, and the required 
math and science education,’’ after ‘‘use of 
technology in vocational and technical edu-
cation’’; and 
(ii) in subparagraph (B)—
(I) by inserting ‘‘(including the 
math and science knowledge that pro-
vides a strong basis for such skills)’’ 
after ‘‘technical skills’’; and 
(II) 
by 
striking 
‘‘and 
tele-
communications field’’ and inserting 
‘‘fields, 
including 
nontraditional 
fields’’; 
(C) in paragraph (3)—
(i) by inserting ‘‘at the secondary and 
postsecondary levels’’ after ‘‘academic, 
guidance, and administrative personnel’’; 
(ii) by redesignating subparagraphs 
(A) through (D) as subparagraphs (C) 
through (F), respectively, and inserting be-
fore such subparagraphs (as so redesig-
nated) the following: 
‘‘(A) will provide inservice and preservice 
training for vocational and technical education 
teachers in the integration and use of rigorous 
and challenging academics with vocational and 
technical subjects; 
‘‘(B) are high quality, sustained, intensive, 
and classroom-focused in order to have a posi-
tive and lasting impact on classroom instruction
and the teacher’s performance in the classroom, 
and are not 1-day or short-term workshops or 
conferences;’’; 
(iii) in subparagraph (C) (as so redes-
ignated)—
(I) by inserting ‘‘scientifically 
based’’ after ‘‘based on’’; and 
(II) by striking ‘‘; and’’ and in-
serting a semicolon; 
(iv) in subparagraph (D) (as so redes-
ignated), by striking ‘‘assist students in 
meeting’’ and inserting ‘‘improve student 
achievement in order to meet’’; and 
(v) by amending subparagraph (E) 
(as so redesignated) to read as follows: 
‘‘(E) will support education programs for 
teachers of vocational and technical education 
in public schools and other public school per-
sonnel who are involved in the direct delivery of 
educational services to vocational and technical 
education students to ensure that teachers and 
personnel—
‘‘(i) stay current with the needs, ex-
pectations, and methods of industry;
‘‘(ii) meet teacher certification or li-
censing requirements, especially in core 
academic subjects as defined in section 
9101(11) of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 
7801(11)); 
‘‘(iii) effectively develop integrated 
rigorous and challenging academic and vo-
cational and technical education cur-
riculum; 
‘‘(iv) develop a high level of academic 
and industry knowledge and skills nec-
essary to provide effective instruction in 
vocational and technical education; and 
‘‘(v) effectively use applied learning 
that contributes to the academic and voca-
tional and technical knowledge of the stu-
dent;’’; 
(D) in paragraph (4), by striking ‘‘integra-
tion of academics’’ and all that follows through 
‘‘core academic,’’ and inserting ‘‘provision of 
rigorous and challenging academics that are in-
tegrated with vocational and technical education 
to ensure achievement in the core academic sub-
jects (as defined in section 9101(11) of the Ele-
mentary and Secondary Education Act of 1965 
(20 U.S.C. 7801(11))),’’; 
(E) in paragraph (5), by striking ‘‘training 
and employment’’ and inserting ‘‘fields’’; 
(F) in paragraph (6), by inserting ‘‘and 
complete a model sequence of courses, as de-
scribed in section 122(c)(1)(A)’’ after ‘‘tech-
nical skills’’; 
(G) in paragraph (7), by striking ‘‘; and’’ 
and inserting a semicolon; 
(H) in paragraph (8), by striking the pe-
riod and inserting ‘‘; and’’; and 
(I) by inserting after paragraph (8) the 
following: 
‘‘(9) technical assistance for eligible recipi-
ents.’’; and 
(2) in subsection (c)—
(A) by striking paragraph (1), and redesig-
nating paragraphs (2) through (10) as para-
graphs (1) through (9), respectively, and para-
graphs (11) and (12) as paragraphs (12) and 
(13), respectively; 
(B) in paragraph (9) (as so redesignated), 
by inserting ‘‘that prepare individuals academi-
cally and technically for current and emerging
occupations 
in 
demand’’ 
after 
‘‘education 
courses’’; and 
(C) by inserting after paragraph (9) (as so 
redesignated) the following: 
‘‘(10) awarding incentive grants to eligible re-
cipients for exemplary performance in carrying out 
programs under this Act, which awards shall be 
based on—
‘‘(A) eligible recipients exceeding chal-
lenging 
performance 
measures 
established 
under section 113(b) in a manner that reflects 
sustained or significant improvement; 
‘‘(B) eligible recipients effectively devel-
oping connections between secondary education 
and postsecondary education and training; 
‘‘(C) the adoption and integration of rig-
orous and challenging academic and technical 
coursework; 
‘‘(D) an eligible recipient’s progress in hav-
ing special populations participating in voca-
tional and technical education programs meet 
local adjusted levels of performance; or 
‘‘(E) other factors relating to the perform-
ance of the eligible recipient under this Act as 
the eligible agency determines are appropriate.
‘‘(11) providing for activities to support entre-
preneurship education and training;’’. 
SEC. 15. DISTRIBUTION OF FUNDS TO SECONDARY SCHOOL 
PROGRAMS. 
Section 131 (20 U.S.C. 2351) is amended—
(1) by striking subsection (a) and redesignating 
subsections (b) through (i) as subsections (a) 
through (h), respectively; 
(2) in subsection (a) (as so redesignated)—
(A) in the subsection heading, by striking 
‘‘Special’’ and ‘‘for Succeeding Fiscal Years’’; 
and 
(B) by striking ‘‘for fiscal year 2000 and 
succeeding fiscal years’’; and 
(3) in subsection (b) (as so redesignated)—
(A) by striking ‘‘subsection (b)’’ and in-
serting ‘‘subsection (a)’’; and 
(B) by striking ‘‘(42 U.S.C. 9902(2))’’ and 
inserting ‘‘(42 U.S.C. 9902(2)))’’. 
SEC. 16. ELIMINATION OF REDISTRIBUTION RULE. 
Section 133 (20 U.S.C. 2353) is amended by striking 
subsection (b) and redesignating subsections (c) and (d) 
as subsections (b) and (c), respectively.
SEC. 17. LOCAL PLAN FOR VOCATIONAL AND TECHNICAL 
EDUCATION PROGRAMS. 
Section 134(b) (20 U.S.C. 2354(b)) is amended—
(1) in paragraph (2), by inserting ‘‘and local’’ 
after ‘‘State’’; 
(2) in paragraph (3)—
(A) by redesignating subparagraphs (A) 
through (C) as subparagraphs (B) through (D), 
respectively, and inserting before such subpara-
graphs the following: 
‘‘(A) offer the appropriate courses of at 
least one of the model sequences of courses de-
scribed in section 124(c)(1), as appropriate to 
the eligible recipient responsible for that ele-
ment of the sequence;’’; 
(B) in subparagraph (B) (as so redesig-
nated)—
(i) by inserting ‘‘rigorous and chal-
lenging’’ after ‘‘integration of’’; and 
(ii) by inserting ‘‘subjects (as defined 
by section 9101(11) of the Elementary and 
Secondary Education Act of 1965 (20 
U.S.C. 7801(11)))’’ after ‘‘core academic’’; 
and