196
cent, of such population, multiplied by
3.25; and
‘‘(V) the number of such children
constituting more than 29.20 percent
of such population, multiplied by 4.0.
‘‘(ii) BY
NUMBER
OF
CHILDREN.—
This amount is determined by adding—
‘‘(I) the number of children de-
termined under section 1124(c) con-
stituting up to 2,311, inclusive, of the
county’s total population aged 5 to
17, inclusive, multiplied by 1.0;
‘‘(II) the number of such children
between 2,312 and 7,913, inclusive, in
such population, multiplied by 1.5;
‘‘(III) the number of such chil-
dren between 7,914 and 23,917, inclu-
sive, in such population, multiplied by
2.0;
‘‘(IV) the number of such chil-
dren between 23,918 and 93,810, in-
clusive, in such population, multiplied
by 2.5; and
197
‘‘(V) the number of such children
in excess of 93,811 in such popu-
lation, multiplied by 3.0.
‘‘(B) 
PUERTO
RICO.—Notwithstanding
subparagraph (A), the weighted child count for
Puerto Rico under this paragraph shall not be
greater than the total number of children
counted under subsection 1124(c) multiplied by
1.72.
‘‘(2) WEIGHTS
FOR
ALLOCATIONS
TO
LOCAL
EDUCATIONAL AGENCIES.—
‘‘(A) IN GENERAL.—For each fiscal year
for which the Secretary uses local educational
agency data, the weighted child count used to
determine a local educational agency’s grant
under this section is the larger of the 2
amounts determined under clauses (i) and (ii),
as follows:
‘‘(i) 
BY
PERCENTAGE
OF
CHIL-
DREN.—This amount is determined by
adding—
‘‘(I) the number of children de-
termined under section 1124(c) for
that local educational agency consti-
tuting up to 15.233 percent, inclusive,
198
of the agency’s total population aged
5 to 17, inclusive, multiplied by 1.0;
‘‘(II) the number of such children
constituting more than 15.233 per-
cent, but not more than 22.706 per-
cent, of such population, multiplied by
1.75;
‘‘(III) the number of such chil-
dren constituting more than 22.706
percent, but not more than 32.213
percent, of such population, multiplied
by 2.5;
‘‘(IV) the number of such chil-
dren constituting more than 32.213
percent, but not more than 41.452
percent, of such population, multiplied
by 3.25; and
‘‘(V) the number of such children
constituting more than 41.452 percent
of such population, multiplied by 4.0.
‘‘(ii) BY
NUMBER
OF
CHILDREN.—
This amount is determined by adding—
‘‘(I) the number of children de-
termined under section 1124(c) con-
stituting up to 710, inclusive, of the
199
agency’s total population aged 5 to
17, inclusive, multiplied by 1.0;
‘‘(II) the number of such children
between 711 and 2,384, inclusive, in
such population, multiplied by 1.5;
‘‘(III) the number of such chil-
dren between 2,385 and 9,645, inclu-
sive, in such population, multiplied by
2.0;
‘‘(IV) the number of such chil-
dren between 9,646 and 54,600, inclu-
sive, in such population, multiplied by
2.5; and
‘‘(V) the number of such children
in excess of 54,601 in such popu-
lation, multiplied by 3.0.
‘‘(B) 
PUERTO
RICO.—Notwithstanding
subparagraph (A), the weighted child count for
Puerto Rico under this paragraph shall not be
greater than the total number of children
counted under section 1124(c) multiplied by
1.72.
‘‘(d) CALCULATION OF GRANT AMOUNTS.—Grants
under this section shall be calculated in accordance with
section 1124(a)(2) and (3).
200
‘‘(e) STATE MINIMUM.—Notwithstanding any other
provision of this section or section 1122, from the total
amount available for any fiscal year to carry out this sec-
tion, each State shall be allotted at least the lesser of—
‘‘(1) 0.25 percent of total appropriations; or
‘‘(2) the average of—
‘‘(A) one-quarter of 1 percent of the total
amount available to carry out this section; and
‘‘(B) 150 percent of the national average
grant under this section per child described in
section 1124(c), without application of a
weighting factor, multiplied by the State’s total
number 
of 
children 
described 
in 
section
1124(c), without application of a weighting fac-
tor.
‘‘SEC. 1126. SPECIAL ALLOCATION PROCEDURES.
‘‘(a) ALLOCATIONS FOR NEGLECTED CHILDREN.—
‘‘(1) IN
GENERAL.—If a State educational
agency determines that a local educational agency in
the State is unable or unwilling to provide for the
special educational needs of children who are living
in institutions for neglected children as described in
subparagraph (B) of section 1124(c)(1), the State
educational agency shall, if such agency assumes re-
sponsibility for the special educational needs of such
201
children, receive the portion of such local educational
agency’s allocation under sections 1124, 1124A, and
1125 that is attributable to such children.
‘‘(2) SPECIAL RULE.—If the State educational
agency does not assume such responsibility, any
other State or local public agency that does assume
such responsibility shall receive that portion of the
local educational agency’s allocation.
‘‘(b) ALLOCATIONS AMONG LOCAL EDUCATIONAL
AGENCIES.—The State educational agency may allocate
the amounts of grants under sections 1124, 1124A, and
1125 among the affected local educational agencies—
‘‘(1) if two or more local educational agencies
serve, in whole or in part, the same geographical
area;
‘‘(2) if a local educational agency provides free
public education for children who reside in the
school district of another local educational agency;
or
‘‘(3) to reflect the merger, creation, or change
of boundaries of one or more local educational agen-
cies.
‘‘(c) REALLOCATION.—If a State educational agency
determines that the amount of a grant a local educational
agency would receive under sections 1124, 1124A, and
202
1125 is more than such local agency will use, the State
educational agency shall make the excess amount available
to other local educational agencies in the State that need
additional funds in accordance with criteria established by
the State educational agency.
‘‘SEC. 1127. CARRYOVER AND WAIVER.
‘‘(a) LIMITATION ON CARRYOVER.—Notwithstanding
section 421 of the General Education Provisions Act or
any other provision of law, not more than 15 percent of
the funds allocated to a local educational agency for any
fiscal year under this subpart (but not including funds re-
ceived through any reallocation under this subpart) may
remain available for obligation by such agency for 1 addi-
tional fiscal year.
‘‘(b) WAIVER.—A State educational agency may,
once every 3 years, waive the percentage limitation in sub-
section (a) if—
‘‘(1) the agency determines that the request of
a local educational agency is reasonable and nec-
essary; or
‘‘(2) supplemental appropriations for this sub-
part become available.
‘‘(c) EXCLUSION.—The percentage limitation under
subsection (a) shall not apply to any local educational
203
agency that receives less than $50,000 under this subpart
for any fiscal year.
‘‘SEC. 1128. SECULAR, NEUTRAL, AND NONIDEOLOGICAL.
‘‘Any school that receives funds under this part shall
ensure that educational services or other benefits provided
under this part, including materials and equipment, shall
be secular, neutral, and nonideological.’’.
PART B—STUDENT READING SKILLS
IMPROVEMENT GRANTS
SEC. 111. READING FIRST; EARLY READING FIRST.
Part B of title I (20 U.S.C. 6361 et seq.) is
amended—
(1) by striking the part heading and inserting
the following:
‘‘PART B—STUDENT READING SKILLS
IMPROVEMENT GRANTS’’;
(2) by redesignating sections 1201 through
1212 as sections 1231 through 1242, respectively;
and
(3) by inserting after the part heading the fol-
lowing:
‘‘Subpart 1—Reading First
‘‘SEC. 1201. FINDINGS.
‘‘The Congress finds as follows:
204
‘‘(1) The 2000 National Assessment of Edu-
cational Progress found that 68 percent of fourth
grade students in the United States are reading
below the proficient level.
‘‘(2) According to the 2000 National Assess-
ment of Educational Progress report on reading, 63
percent of African Americans, 58 percent of His-
panic Americans, 60 percent of children living in
poverty, and 47 percent of children in urban schools
scored ‘below basic’ in reading.
‘‘(3) More than 1⁄2 of the students placed in
special education classes are identified as learning
disabled and, for as many as 80 percent of the stu-
dents so identified, reading is the primary difficulty.
‘‘(4) It is estimated that, at a minimum,
10,000,000 children have difficulty learning to read.
10 to 15 percent of those children eventually drop
out of high school, and only 2 percent complete a 4-
year program at an institution of higher education.
‘‘(5) It is estimated that the number of children
who are typically identified as poor readers can be
significantly reduced through the implementation of
early identification and prevention programs that
are based on scientifically based reading research.
205
‘‘(6) The report issued by the National Reading
Panel in 2000 found that the course of reading in-
struction that obtains maximum benefits for stu-
dents includes explicit and systematic instruction in
phonemic awareness, phonics, vocabulary develop-
ment, reading fluency, and reading comprehension
strategies.
‘‘SEC. 1202. PURPOSES.
‘‘The purposes of this subpart are as follows:
‘‘(1) To provide assistance to States and local
educational agencies in establishing reading pro-
grams for students in grades kindergarten through
3 that are based on scientifically based reading re-
search, in order to ensure that every student can
read at grade level or above not later than the end
of the third grade.
‘‘(2) To provide assistance to States and local
educational agencies in preparing teachers, including
special education teachers, through professional de-
velopment and other support, so the teachers can
identify specific reading barriers facing their stu-
dents and so the teachers have the tools to effec-
tively help their students learn to read.
‘‘(3) To provide assistance to States and local
educational agencies in selecting and administering
206
rigorous diagnostic reading and screening assess-
ment tools that are valid and reliable, document the
effectiveness of this subpart in improving the read-
ing skills of students, and improve classroom in-
struction.
‘‘(4) To provide assistance to States and local
educational agencies in selecting or developing effec-
tive classroom instructional materials, programs, and
strategies to implement scientific research-based
methods that have been proven to prevent or reme-
diate reading failure.
‘‘(5) To strengthen coordination among schools
and early literacy programs in order to improve
reading achievement for all children.
‘‘SEC. 1203. FORMULA GRANTS TO STATES.
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORIZATION
TO
MAKE
GRANTS.—In
the case of each State that in accordance with sec-
tion 1204 submits to the Secretary an application
for a 5-year period, the Secretary, subject to the ap-
plication’s approval, shall make a grant to the State
for the uses specified in subsections (c) and (d). For
each fiscal year, the funds provided under the grant
shall equal the allotment determined for the State
under subsection (b).
207
‘‘(2) DURATION OF GRANTS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), a grant under this section shall be
awarded for a period of not more than 5 years.
‘‘(B) INTERIM REVIEW.—
‘‘(i) PROGRESS REPORT.—
‘‘(I) 
SUBMISSION.—Not 
later
than 60 days after the termination of
the third year of the grant period,
each State receiving a grant under
this section shall submit a progress
report to the Secretary.
‘‘(II) 
INFORMATION
IN-
CLUDED.—The progress report shall
include information on the progress
the State, and local educational agen-
cies within the State, are making in
reducing the number of students
served under this subpart in the first
and second grades who are reading
below grade level, as demonstrated by
such information as teacher reports
and school evaluations of mastery of
the essential components of reading
instruction. The report shall also in-
208
clude evidence from the State and its
local educational agencies that they
have significantly increased the num-
ber of students reading at grade level
or above, significantly increased the
percentages of students in ethnic, ra-
cial, and low-income populations who
are reading at grade level or above,
and successfully implemented this
subpart.
‘‘(ii) PEER
REVIEW.—The progress
report described in clause (i) shall be re-
viewed by the peer review panel convened
under section 1204(c)(2).
‘‘(iii) CONSEQUENCES
OF
INSUFFI-
CIENT PROGRESS.—After the submission of
the progress report described in clause (i),
if the Secretary determines that the State
is not making significant progress in meet-
ing the purposes of this subpart, the Sec-
retary may withhold from the State, in
whole or in part, further payments under
this section in accordance with section 455
of the General Education Provisions Act
(20 U.S.C. 1234d) or take such other ac-
209
tion authorized by law as the Secretary
deems necessary, including providing tech-
nical assistance upon request of the State.
‘‘(b) DETERMINATION
OF
AMOUNT
OF
ALLOT-
MENTS.—
‘‘(1) RESERVATIONS FROM APPROPRIATIONS.—
From the total amount made available under section
1002(b)(1) to carry out this subpart for a fiscal
year, the Secretary—
‘‘(A) shall reserve 1⁄2 of 1 percent for allot-
ments for the Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern
Mariana Islands, to be distributed among these
outlying areas on the basis of their relative
need, as determined by the Secretary in accord-
ance with the purposes of this subpart;
‘‘(B) shall reserve 1⁄2 of 1 percent for the
Secretary of the Interior for programs under
this subpart in schools operated or funded by
the Bureau of Indian Affairs;
‘‘(C) shall reserve not more than 3 percent
or $30,000,000, whichever is less, to carry out
section 1206;
‘‘(D) may reserve not more than 1 percent
to carry out section 1207; and
210
‘‘(E) shall reserve $5,000,000 to carry out
section 1208.
‘‘(2) STATE
ALLOTMENTS.—From the total
amount made available under section 1002(b)(1) to
carry out this subpart for a fiscal year and not re-
served under paragraph (1), the Secretary shall allot
80 percent under this section among each of the 50
States, the District of Columbia, and the Common-
wealth of Puerto Rico.
‘‘(3) DETERMINATION
OF
STATE
ALLOTMENT
AMOUNTS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall allot the amount
made available under paragraph (2) for a fiscal
year among the States described in such para-
graph in proportion to the number of children,
aged 5 to 17, who reside within the State from
families with incomes below 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)) applica-
ble to a family of the size involved for the most
recent fiscal year for which satisfactory data
are available, compared to the number of such
211
individuals who reside in all such States for
that fiscal year.
‘‘(B) EXCEPTIONS.—
‘‘(i) IN GENERAL.—Subject to clause
(ii), no State receiving an allotment under
subparagraph (A) may receive less than 1⁄4
of 1 percent of the total amount allotted
under such subparagraph.
‘‘(ii) PUERTO RICO.—The percentage
of the amount allotted under subparagraph
(A) that is allotted to the Commonwealth
of Puerto Rico for a fiscal year may not
exceed the percentage that was received by
the Commonwealth of Puerto Rico of the
funds allocated to all States under subpart
2 of part A for the preceding fiscal year.
‘‘(4) REALLOTMENT.—If a State described in
paragraph (2) does not apply for an allotment under
this section for any fiscal year, or if the State’s ap-
plication is not approved, the Secretary shall reallot
such amount to the remaining States in accordance
with paragraph (3).
‘‘(c) SUBGRANTS TO LOCAL EDUCATIONAL AGEN-
CIES.—
212
‘‘(1) DISTRIBUTION OF SUBGRANTS.—The Sec-
retary may make a grant to a State under this sec-
tion only if the State agrees to expend at least 80
percent of the amount of the funds provided under
the grant for the purpose of making, in accordance
with this subsection, competitive subgrants to local
educational agencies.
‘‘(2) NOTICE.—A State receiving a grant under
this section shall provide notice to all local edu-
cational agencies in the State of the availability of
competitive subgrants under this subsection and of
the requirements for applying for the subgrants.
‘‘(3) LOCAL APPLICATIONS.—To be eligible to
receive a subgrant under this subsection, a local edu-
cational agency shall submit an application to the
State at such time, in such manner, and containing
such information as the State may reasonably re-
quire.
‘‘(4) LIMITATION
TO
CERTAIN
LOCAL
AGEN-
CIES.—A State receiving a grant under this section
may award subgrants under this subsection only to
local educational agencies—
‘‘(A) that have the highest percentages of
students in grades kindergarten through 3
reading below grade level; and
213
‘‘(B) that—
‘‘(i) have jurisdiction over—
‘‘(I) a geographic area that in-
cludes an area designated as an em-
powerment zone, or an enterprise
community, under part I of sub-
chapter U of chapter 1 of the Internal
Revenue Code of 1986; or
‘‘(II) a significant number of
schools that are identified for school
improvement under section 1116(b);
or
‘‘(ii) are located in areas having the
greatest numbers or percentages of chil-
dren aged 5 through 17 from low-income
families.
‘‘(5) STATE
REQUIREMENT.—In distributing
subgrant funds to local educational agencies under
this subsection, a State shall provide funds in suffi-
cient size and scope to enable local educational agen-
cies to improve reading instruction, as determined
by rigorous diagnostic reading and screening assess-
ment tools.
‘‘(6) LIMITATION
TO
CERTAIN
SCHOOLS.—In
distributing subgrant funds under this subsection, a
214
local educational agency may provide funds only to
schools—
‘‘(A) that have the highest percentages of
students in grades kindergarten through 3
reading below grade level; and
‘‘(B) that—
‘‘(i) are identified for school improve-
ment under section 1116(b); or
‘‘(ii) have the greatest numbers or
percentages of children aged 5 through 17
from low-income families.
‘‘(7) LOCAL USES OF FUNDS.—
‘‘(A) REQUIRED USES.—Subject to para-
graph (8), a local educational agency that re-
ceives a subgrant under this subsection shall
use the funds provided under the subgrant to
carry out the following activities:
‘‘(i) Selecting and administering rig-
orous diagnostic reading and screening as-
sessment tools.
‘‘(ii) Selecting and implementing a
program or programs of classroom reading
instruction based on scientifically based
reading research that—
215
‘‘(I) includes the essential compo-
nents of reading instruction; and
‘‘(II) provides such instruction to
all children, including children who—
‘‘(aa) may have reading dif-
ficulties;
‘‘(bb) are at risk of being re-
ferred to special education based
on these difficulties;
‘‘(cc) have been evaluated
under section 614 of the Individ-
uals with Disabilities Education
Act but, in accordance with sec-
tion 614(b)(5) of such Act, have
not been identified as being a
child with a disability (as defined
in section 602 of such Act);
‘‘(dd) are being served under
such Act primarily due to being
identified as being a child with a
specific learning disability (as de-
fined in section 602 of such Act)
related to reading;
‘‘(ee) are deficient in their
phonemic 
awareness, 
phonics
216
skills, vocabulary development,
oral reading fluency, or com-
prehension strategies; or
‘‘(ff) are identified as having
limited English proficiency.
‘‘(iii) Procuring classroom instruc-
tional materials based on scientifically
based reading research.
‘‘(iv) Providing professional develop-
ment for teachers of grades kindergarten
through 3, and special education teachers
of grades kindergarten through 12, that—
‘‘(I) will prepare these teachers
in all of the essential components of
reading instruction;
‘‘(II) shall include—
‘‘(aa) information, instruc-
tional materials, programs, strat-
egies, and approaches based on
scientifically based reading re-
search, including early interven-
tion and classroom reading mate-
rials and remedial programs and
approaches; and
217
‘‘(bb) instruction in the use
of rigorous diagnostic reading
and screening assessment tools
and other procedures that effec-
tively identify students who may
be at risk for reading failure or
who are having difficulty reading;
‘‘(III) shall be provided by eligi-
ble 
professional 
development 
pro-
viders; and
‘‘(IV) will assist teachers in be-
coming fully qualified in accordance
with the requirements of section 1119.
‘‘(B) OPTIONAL USES.—Subject to para-
graph (8), a local educational agency that re-
ceives a subgrant under this subsection may use
the funds provided under the subgrant to carry
out the following activities:
‘‘(i) Providing training to parents and
other individuals who volunteer to be read-
ing tutors in the essential components of
reading instruction.
‘‘(ii) Providing family literacy serv-
ices, especially to parents enrolled in par-
ticipating schools, through the use of li-
218
brary materials and reading programs,
strategies, and approaches that are based
on scientifically based reading research, to
encourage reading and support their chil-
dren’s reading development.
‘‘(8) LOCAL
PLANNING
AND
ADMINISTRA-
TION.—A local educational agency that receives a
subgrant under this subsection may use not more
than 2 percent of the funds provided under the
subgrant for planning and administration.
‘‘(d) OTHER STATE USES OF FUNDS.—
‘‘(1) PROFESSIONAL DEVELOPMENT.—
‘‘(A) IN GENERAL.—A State that receives
a grant under this section may expend not more
than 15 percent of the amount of the funds
provided under the grant—
‘‘(i) to develop and implement a pro-
gram of in-service professional development
for teachers of kindergarten through third
grade, and special education teachers of
grades kindergarten through 12, that—
‘‘(I) will prepare these teachers
in all of the essential components of
reading instruction;
‘‘(II) shall include—
219
‘‘(aa) information on inter-
ventions, instructional materials,
programs, and approaches based
on scientifically based reading re-
search, including early interven-
tion and reading remediation ma-
terials, 
programs, 
and 
ap-
proaches; and
‘‘(bb) instruction in the use
of rigorous diagnostic reading
and screening assessment tools
and other procedures to improve
instruction and effectively iden-
tify students who may be at risk
for reading failure or who are
having difficulty reading; and
‘‘(III) shall be provided by eligi-
ble 
professional 
development 
pro-
viders;
‘‘(ii) to strengthen and enhance pro-
fessional development courses for students
preparing, at all public institutions of high-
er education in the State, to teach kinder-
garten through third grades by—
220
‘‘(I) reviewing such courses to de-
termine whether their content is con-
sistent with the findings of the most
current scientifically based reading re-
search, including findings on the es-
sential components of reading instruc-
tion;
‘‘(II) following up such reviews
with recommendations to ensure that
such institutions offer courses that
meet the highest standards; and
‘‘(III) preparing a report on the
results of such reviews, submitting it
to the reading and literacy partner-
ship for the State established under
section 1204(d), and making it avail-
able for public review via the Internet;
and
‘‘(iii) to make recommendations on
how the State’s licensure and certification
standards in the area of reading might be
improved.
‘‘(B) FUNDS
NOT
USED
FOR
PROFES-
SIONAL
DEVELOPMENT.—Any portion of the
funds described in subparagraph (A) that a
221
State does not expend in accordance with such
subparagraph shall be expended for the purpose
of making subgrants in accordance with sub-
section (c).
‘‘(2) 
OTHER
STATE-LEVEL
ACTIVITIES.—A
State that receives a grant under this section may
expend not more than 3 percent of the amount of
the funds provided under the grant for one or more
of the following authorized State activities:
‘‘(A) Assisting local educational agencies in
accomplishing the tasks required to design and
implement a classroom reading program under
this subpart, including—
‘‘(i) selecting and implementing a pro-
gram or programs of classroom reading in-
struction based on scientifically based
reading research;
‘‘(ii) 
selecting 
rigorous 
diagnostic
reading and screening assessment tools;
and
‘‘(iii) identifying eligible professional
development providers to help prepare
reading teachers to teach students using
the programs and assessments described in
clauses (i) and (ii);
222
‘‘(B) Providing to students in kindergarten
through third grades, through appropriate pro-
viders, reading instruction that includes—
‘‘(i) rigorous diagnostic reading and
screening assessment tools; and
‘‘(ii) as need is indicated by such as-
sessments, instruction based on scientif-
ically based reading research that includes
the essential components of reading in-
struction.
‘‘(3) PLANNING, ADMINISTRATION, AND
RE-
PORTING.—
‘‘(A) IN GENERAL.—A State that receives
a grant under this section shall expend not
more than 2 percent of the amount of the funds
provided under the grant for the activities de-
scribed in this paragraph.
‘‘(B) PLANNING AND ADMINISTRATION.—A
State that receives a grant under this section
may expend funds described in subparagraph
(A) for—
‘‘(i) planning and administration re-
lating to the State uses of funds author-
ized under this subpart, including admin-
istering the distribution of competitive sub-
223
grants to local educational agencies under
this section and section 1205; and
‘‘(ii) assessing and evaluating, on a
regular basis, local educational agency ac-
tivities assisted under this subpart, with
respect to whether they have been effective
in increasing the number of children in
first and second grades served under this
subpart who can read at or above grade
level.
‘‘(C) ANNUAL REPORTING.—
‘‘(i) IN GENERAL.—A State that re-
ceives a grant under this section shall ex-
pend funds provided under the grant to
provide the Secretary annually with a re-
port on the implementation of this subpart.
The report shall include evidence that the
State is fulfilling its obligations under this
subpart. The report shall include a specific
identification of those schools and local
educational agencies that report the largest
gains in reading achievement.
‘‘(ii) PRIVACY PROTECTION.—Data in
the report shall be set forth in a manner
that protects the privacy of individuals.
224
‘‘(iii) 
CONTRACT.—To 
the 
extent
practicable, a State shall enter into a con-
tract with an entity that conducts scientif-
ically based reading research, under which
contract the entity will produce the reports
required to be submitted under this sub-
paragraph.
‘‘SEC. 1204. STATE FORMULA GRANT APPLICATIONS.
‘‘(a) IN GENERAL.—A State that desires to receive
a grant under section 1203 shall submit an application
to the Secretary at such time and in such form as the
Secretary may require. The application shall contain the
information described in subsection (b).
‘‘(b) CONTENTS.—An application under this section
shall contain the following:
‘‘(1) An assurance that the Governor of the
State, in consultation with the State educational
agency, has established a reading and literacy part-
nership described in subsection (d), and a descrip-
tion of how such partnership—
‘‘(A) coordinated the development of the
application; and
‘‘(B) will assist in the oversight and eval-
uation of the State’s activities under this sub-
part.
225
‘‘(2) An assurance that the State will submit to
the Secretary, at such time and in such manner as
the Secretary may reasonably require, a State plan
containing a description of a process—
‘‘(A) to evaluate programs carried out by
local educational agencies under this subpart;
‘‘(B) to assist local educational agencies in
identifying rigorous diagnostic reading and
screening assessment tools; and
‘‘(C) to assist local educational agencies in
identifying interventions, and instructional ma-
terials, programs and approaches, based on sci-
entifically based reading research, including
early intervention and classroom reading mate-
rials and remedial programs and approaches.
‘‘(3) An assurance that the State, and local
educational agencies in the State, will participate in
all national evaluations under this subpart.
‘‘(c) APPROVAL OF APPLICATIONS.—
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the peer review panel convened under para-
graph (2), shall approve an application of a State
under this section if such application meets the re-
quirements of this section.
‘‘(2) PEER REVIEW.—
226
‘‘(A) IN GENERAL.—The Secretary, in con-
sultation with the National Institute for Lit-
eracy, shall convene a panel to evaluate applica-
tions under this section. At a minimum, the
panel shall include—
‘‘(i) three individuals selected by the
Secretary;
‘‘(ii) three individuals selected by the
National Institute for Literacy;
‘‘(iii) three individuals selected by the
National Research Council of the National
Academy of Sciences; and
‘‘(iv) three individuals selected by the
National Institute of Child Health and
Human Development.
‘‘(B) EXPERTS.—The panel shall include
experts who are competent, by virtue of their
training, expertise, or experience, to evaluate
applications under this section, and experts who
provide professional development to teachers of
reading to children and adults, and experts who
provide professional development to other in-
structional staff, based on scientifically based
reading research.
227
‘‘(C) 
RECOMMENDATIONS.—The 
panel
shall recommend grant applications from States
under this section to the Secretary for funding
or for disapproval.
‘‘(d) READING AND LITERACY PARTNERSHIPS.—
‘‘(1) IN GENERAL.—In order for a State to re-
ceive a grant under section 1203, the Governor of
the State, in consultation with the State educational
agency, shall establish a reading and literacy part-
nership.
‘‘(2) REQUIRED
PARTICIPANTS.—The reading
and literacy partnership shall include the following
participants:
‘‘(A) The Governor of the State.
‘‘(B) The chief State school officer.
‘‘(C) The chairman and the ranking mem-
ber of each committee of the State legislature
that is responsible for education policy.
‘‘(D) A representative, selected jointly by
the Governor and the chief State school officer,
of at least one local educational agency that is
eligible to receive a subgrant under section
1203.
‘‘(E) A representative, selected jointly by
the Governor and the chief State school officer,
228
of a community-based organization working
with children to improve their reading skills,
particularly a community-based organization
using tutors and scientifically based reading re-
search.
‘‘(F) State directors of appropriate Federal
or State programs with a strong reading com-
ponent.
‘‘(G) A parent of a public or private school
student or a parent who educates their child or
children in their home, selected jointly by the
Governor and the chief State school officer.
‘‘(H) A teacher, who may be a special edu-
cation teacher, who successfully teaches reading
and an instructional staff member, selected
jointly by the Governor and the chief State
school officer.
‘‘(I) A family literacy service provider se-
lected jointly by the Governor and the chief
state school officer.
‘‘(3) OPTIONAL
PARTICIPANTS.—The reading
and literacy partnership may include additional par-
ticipants, who shall be selected jointly by the Gov-
ernor and the chief State school officer, and who
may include a representative of—
229
‘‘(A) an institution of higher education op-
erating a program of teacher preparation based
on scientifically based reading research in the
State;
‘‘(B) a local educational agency;
‘‘(C) a private nonprofit or for-profit eligi-
ble professional development provider providing
instruction based on scientifically based reading
research;
‘‘(D) an adult education provider;
‘‘(E) a volunteer organization that is in-
volved in reading programs; or
‘‘(F) a school library or a public library
that offers reading or literacy programs for
children or families.
‘‘SEC. 1205. DISCRETIONARY GRANTS TO STATES.
‘‘(a) IN GENERAL.—In the case of a State that, in
accordance with sections 1203 and 1204, has received ap-
proval of an application for a 5-year formula grant, the
Secretary may make additional 2-year discretionary
grants to the State for the use specified in (d). For each
fiscal year, the funds provided under the discretionary
grant shall equal the allotment determined for the State
under subsection (b).
230
‘‘(b) DETERMINATION
OF
AMOUNT
OF
ALLOT-
MENTS.—From the total amount made available under
section 1002(b)(1) to carry out this subpart for a fiscal
year and not reserved under paragraph (1), the Secretary,
upon the recommendation of the peer review panel con-
vened under section 1204(c)(2), shall allot 20 percent
under this section among the States described in sub-
section (a)—
‘‘(1) for fiscal years 2002 and 2003, based
upon a determination of such States’ relative likeli-
hood of effectively implementing a program under
this subpart; and
‘‘(2) for fiscal year 2004 and subsequent fiscal
years, based upon such States’ applications under
subsection (c).
‘‘(c) STATE
DISCRETIONARY
GRANT
APPLICA-
TIONS.—
‘‘(1) IN GENERAL.—A State that desires to re-
ceive a grant under this section for a grant period
that includes any fiscal year after fiscal year 2003
shall submit the information described in paragraph
(3) to the Secretary at such time and in such form
as the Secretary may require.
‘‘(2) PEER
REVIEW.—The peer review panel
convened under section 1204(c)(2) shall review the
231
information submitted under this subsection. The
panel shall recommend such applications to the Sec-
retary for funding or for disapproval.
‘‘(3) 
INFORMATION.—The 
information 
de-
scribed in this paragraph is the following:
‘‘(A) An assurance that the State will
award competitive subgrants to local edu-
cational agencies consistent with subsection
(d)(4).
‘‘(B) An assurance that the State will en-
sure that local educational agencies that receive
a subgrant under subsection (d) use the funds
provided under the subgrant in accordance with
subsection (d)(5).
‘‘(C) Evidence that the State has increased
significantly the percentage of students reading
at grade level or above.
‘‘(D) Evidence that the State has been suc-
cessful in increasing the percentage of students
in ethnic, racial, and low-income populations
who are reading at grade level or above.
‘‘(E) Any additional evidence that dem-
onstrates success in the implementation of this
subpart.
232
‘‘(d) SUBGRANTS TO LOCAL EDUCATIONAL AGEN-
CIES.—
‘‘(1) IN GENERAL.—The Secretary may make a
grant to a State under this section only if the State
agrees to expend 100 percent of the amount of the
funds provided under the grant for the purpose of
making competitive subgrants in accordance with
this subsection to local educational agencies.
‘‘(2) NOTICE.—A State receiving a grant under
this section shall provide notice to all local edu-
cational agencies in the State of the availability of
competitive subgrants under this subsection and of
the requirements for applying for the subgrants.
‘‘(3) APPLICATION.—To be eligible to receive a
subgrant under this subsection, a local educational
agency shall submit an application to the State at
such time, in such manner, and containing such in-
formation as the State may reasonably require.
‘‘(4) DISTRIBUTION.—
‘‘(A) IN
GENERAL.—A State shall dis-
tribute subgrants under this section through a
competitive process based on relative need and
the evidence described in this paragraph.
‘‘(B) EVIDENCE
USED
IN
ALL
YEARS.—
For all fiscal years, a State shall distribute sub-
233
grants under this section based on evidence that
a local educational agency—
‘‘(i) satisfies the requirements of sec-
tion 1203(c)(4);
‘‘(ii) will carry out its obligations
under this subpart, particularly paragraph
(5); and
‘‘(iii) will work with other local edu-
cational agencies in the State that have
not received a subgrant under this sub-
section to assist such non-receiving agen-
cies in increasing the reading achievement
of students.
‘‘(C) EVIDENCE
USED
IN
FISCAL
YEARS
AFTER 2003.—For fiscal year 2004 and subse-
quent fiscal years, a State shall distribute sub-
grants under this section based on the evidence
described in subparagraph (B) and, in addition,
evidence that a local educational agency—
‘‘(i) has significantly increased the
percentage of all students reading at grade
level or above;
‘‘(ii) has significantly increased the
percentage of students in ethnic, racial,
234
and low-income populations who are read-
ing at grade level or above; and
‘‘(iii) has demonstrated success in the
implementation of this subpart.
‘‘(5) LOCAL
USES
OF
FUNDS.—A local edu-
cational agency that receives a subgrant under this
subsection—
‘‘(A) shall use the funds provided under
the subgrant to carry out the activities de-
scribed in section 1203(c)(7)(A); and
‘‘(B) may use such funds to carry out the
activities described in section 1203(c)(7)(B).
‘‘(e) DEFINITION.—For purposes of this section, the
term ‘State’ means each of the 50 States, the District of
Columbia, and the Commonwealth of Puerto Rico.
‘‘SEC. 1206. EXTERNAL EVALUATION.
‘‘(a) IN GENERAL.—From funds reserved under sec-
tion 1203(b)(1)(C), the Secretary shall contract with an
independent outside organization for a 5-year, rigorous,
scientifically valid, quantitative evaluation of this subpart.
‘‘(b) PROCESS.—Such evaluation shall be conducted
by an organization outside of the Department that is capa-
ble of designing and carrying out an independent evalua-
tion that identifies the effects of specific activities carried
out by States and local educational agencies under this
235
subpart on improving reading instruction. Such evaluation
shall use only data relating to students served under this
subpart and shall take into account factors influencing
student performance that are not controlled by teachers
or education administrators.
‘‘(c) ANALYSIS.—Such evaluation shall include the
following:
‘‘(1) An analysis of the relationship between
each of the essential components of reading instruc-
tion and overall reading proficiency.
‘‘(2) An analysis of whether assessment tools
used by States and local educational agencies meas-
ure the essential components of reading instruction.
‘‘(3) An analysis of how State reading stand-
ards correlate with the essential components of read-
ing instruction.
‘‘(4) An analysis of whether the receipt of a dis-
cretionary grant under section 1205 results in an in-
crease in the number of children who read pro-
ficiently.
‘‘(5) A measurement of the extent to which spe-
cific instructional materials improve reading pro-
ficiency.
‘‘(6) A measurement of the extent to which spe-
cific rigorous diagnostic reading and screening as-
236
sessment tools assist teachers in identifying specific
reading deficiencies.
‘‘(7) A measurement of the extent to which pro-
fessional development programs implemented by
States using funds received under this subpart im-
prove reading instruction.
‘‘(8) A measurement of how well students pre-
paring to enter the teaching profession are prepared
to teach the essential components of reading instruc-
tion.
‘‘(9) An analysis of changes in students’ inter-
est in reading and time spent reading outside of
school.
‘‘(10) Any other analysis or measurement perti-
nent to this subpart that is determined to be appro-
priate by the Secretary.
‘‘(d) PROGRAM IMPROVEMENT.—The findings of the
evaluation conducted under this section shall be provided
to States and local educational agencies on a periodic basis
for use in program improvement.
‘‘SEC. 1207. NATIONAL ACTIVITIES.
‘‘From funds reserved under section 1203(b)(1)(D),
the Secretary may provide technical assistance in achiev-
ing the purposes of this subpart to States, local edu-
cational agencies, and schools requesting such assistance.
237
‘‘SEC. 1208. INFORMATION DISSEMINATION.
‘‘(a) IN GENERAL.—From funds reserved under sec-
tion 1203(b)(1)(E), the National Institute for Literacy, in
collaboration with the Secretary of Education, the Sec-
retary of Health and Human Services, and the Director
of the National Institute for Child Health and Human
Development—
‘‘(1) shall disseminate information on scientif-
ically based reading research pertaining to children,
youth, and adults;
‘‘(2) shall identify and disseminate information
about schools, local educational agencies, and States
that effectively developed and implemented class-
room reading programs that meet the requirements
of this subpart, including those effective States, local
educational agencies, and schools identified through
the evaluation and peer review provisions of this
subpart; and
‘‘(3) shall support the continued identification
and dissemination of information on reading pro-
grams that contain the essential components of
reading instruction as supported by scientifically
based reading research, that can lead to improved
reading outcomes for children, youth, and adults.
‘‘(b) DISSEMINATION.—
238
‘‘(1) IN GENERAL.—At a minimum, the Na-
tional Institute for Literacy shall disseminate such
information to—
‘‘(A) recipients of Federal financial assist-
ance under part A of this title, part A of title
III, the Head Start Act, the Individuals with
Disabilities Education Act, and the Adult Edu-
cation and Family Literacy Act; and
‘‘(B) each Bureau funded school (as de-
fined in section 1141(3) of the Education
Amendments of 1978).
‘‘(2) USE
OF
EXISTING
NETWORKS.—In car-
rying out this section, the National Institute for Lit-
eracy shall, to the extent practicable, utilize existing
information and dissemination networks developed
and maintained through other public and private en-
tities.
‘‘SEC. 1209. DEFINITIONS.
‘‘For purposes of this subpart:
‘‘(1) ELIGIBLE PROFESSIONAL DEVELOPMENT
PROVIDER.—The term ‘eligible professional develop-
ment provider’ means a provider of professional de-
velopment in reading instruction to teachers, includ-
ing special education teachers, that is based on sci-
entifically based reading research.
239
‘‘(2) ESSENTIAL COMPONENTS OF READING IN-
STRUCTION.—The term ‘essential components of
reading instruction’ means explicit and systematic
instruction in—
‘‘(A) phonemic awareness;
‘‘(B) phonics;
‘‘(C) vocabulary development;
‘‘(D) oral reading fluency; and
‘‘(E) reading comprehension strategies.
‘‘(3) INSTRUCTIONAL
STAFF.—The term ‘in-
structional staff’—
‘‘(A) means individuals who have responsi-
bility for teaching children to read; and
‘‘(B) includes principals, teachers, super-
visors of instruction, librarians, library school
media specialists, teachers of academic subjects
other than reading, and other individuals who
have responsibility for assisting children to
learn to read.
‘‘(4) READING.—The term ‘reading’ means a
complex system of deriving meaning from print that
requires all of the following:
‘‘(A) The skills and knowledge to under-
stand how phonemes, or speech sounds, are
connected to print.
240
‘‘(B) The ability to decode unfamiliar
words.
‘‘(C) The ability to read fluently.
‘‘(D) Sufficient background information
and vocabulary to foster reading comprehen-
sion.
‘‘(E) The development of appropriate ac-
tive strategies to construct meaning from print.
‘‘(F) The development and maintenance of
a motivation to read.
‘‘(5) RIGOROUS
DIAGNOSTIC
READING
AND
SCREENING
ASSESSMENT
TOOLS.—The term ‘rig-
orous diagnostic reading and screening assessment
tools’ means assessments that—
‘‘(A) are valid, reliable, and based on sci-
entifically based reading research;
‘‘(B) measure progress in developing pho-
nemic awareness and phonics skills, vocabulary,
reading fluency, and reading comprehension;
‘‘(C) identify students who may be at risk
for reading failure or who are having difficulty
reading; and
‘‘(D) are used to improve instruction.
241
‘‘(6) SCIENTIFICALLY
BASED
READING
RE-
SEARCH.—The term ‘scientifically based reading
research’—
‘‘(A) means the application of rigorous,
systematic, and objective procedures to obtain
valid knowledge relevant to reading develop-
ment, reading instruction, and reading difficul-
ties; and
‘‘(B) shall include research that—
‘‘(i) employs systematic, empirical
methods that draw on observation or ex-
periment;
‘‘(ii) involves rigorous data analyses
that are adequate to test the stated
hypotheses and justify the general conclu-
sions drawn;
‘‘(iii) relies on measurements or obser-
vational methods that provide valid data
across evaluators and observers and across
multiple measurements and observations;
and
‘‘(iv) has been accepted by a peer-re-
viewed journal or approved by a panel of
independent experts through a comparably
rigorous, objective, and scientific review.
242
‘‘Subpart 2—Early Reading First
‘‘SEC. 1221. PURPOSES.
‘‘The purposes of this subpart are as follows:
‘‘(1) To improve prereading skills in children
aged 3 through 5, particularly children from low-in-
come families, in high-quality oral language and lit-
erature-rich environments.
‘‘(2) To provide professional development for
early childhood teachers that prepares them with sci-
entific research-based knowledge of early reading de-
velopment to assist in developing the children’s—
‘‘(A) automatic recognition of the letters of
the alphabet and letter sounds;
‘‘(B) understanding that spoken words are
made up of small segments of speech sounds
and that certain letters regularly represent such
speech sounds;
‘‘(C) spoken vocabulary and oral com-
prehension abilities; and
‘‘(D) understanding of semiotic concepts.
‘‘(3) To use scientific research-based screening
tools or other appropriate measures to determine
whether preschool children are developing the skills
identified in this section.
‘‘(4) To identify and provide scientific research-
based prereading language and literacy activities and
243
instructional materials that can be used to assist in
the development of prereading skills in children.
‘‘(5) To integrate such scientific research-based
instructional materials and literacy activities with
existing programs of preschools, child care agencies
and programs, and Head Start centers, and with
family literacy services.
‘‘SEC. 1222. LOCAL EARLY READING FIRST GRANTS.
‘‘(a) PROGRAM AUTHORIZED.—From amounts ap-
propriated under section 1002(b)(2), the Secretary shall
make awards, on a competitive basis and for periods of
not more than 5 years, to eligible applicants to enable such
applicants to carry out activities that are consistent with
the purposes of this subpart.
‘‘(b) DEFINITION OF ELIGIBLE APPLICANT.—In this
subpart, the term ‘eligible applicant’ means—
‘‘(1) a local educational agency;
‘‘(2) one or more public or private organizations
or agencies, acting on behalf of one or more pro-
grams that serve children aged 3 through 5 (such as
a program at a child care agency or program or
Head Start center or a family literacy program),
which organizations or agencies shall be located in a
community served by a local educational agency; or
244
‘‘(3) one or more local educational agencies in
collaboration with one or more organizations or
agencies described in paragraph (2).
‘‘(c) APPLICATIONS.—An eligible applicant that de-
sires to receive a grant under this subpart shall submit
an application to the Secretary, which shall include a de-
scription of—
‘‘(1) the programs to be served by the proposed
project, including general demographic and socio-
economic information on the communities in which
the proposed project will be administered;
‘‘(2) how the proposed project will enhance the
school readiness of children aged 3 through 5 in
high-quality oral language and literature-rich envi-
ronments;
‘‘(3) how the proposed project will provide early
childhood teachers with scientific research-based
knowledge of early reading development and assist
such teachers in developing the children’s prereading
skills;
‘‘(4) how the proposed project will provide serv-
ices and utilize instructional materials that are
based on scientifically based reading research on
early language acquisition, prereading activities, and
the development of spoken vocabulary skills;
245
‘‘(5) how the proposed project will integrate
such instructional materials and literacy activities
with existing preschool programs and family literacy
services;
‘‘(6) how the proposed project will help staff in
the programs to meet the diverse needs of children
in the community, including children with limited
English proficiency and children with learning dis-
abilities;
‘‘(7) how the proposed project will help chil-
dren, particularly children experiencing difficulty
with spoken language, prereading, and early reading
skills, to make the transition from preschool to for-
mal classroom instruction in school;
‘‘(8) how the activities conducted under this
subpart will be coordinated with the eligible appli-
cant’s activities under subpart 1, if the applicant has
received a subgrant under such subpart, at the kin-
dergarten through third grade levels;
‘‘(9) how the proposed project will evaluate the
success of the activities supported under this sub-
part in enhancing the early language and reading
development of children served by the project; and
‘‘(10) such other information as the Secretary
may require.
246
‘‘(d) APPROVAL OF LOCAL APPLICATIONS.—The Sec-
retary shall select applicants for funding under this sub-
part based on the quality of the applications and the rec-
ommendations of the peer review panel convened under
section 1204(c)(2).
‘‘(e) LOCAL USES OF FUNDS.—
‘‘(1) REQUIRED ACTIVITIES.—An eligible appli-
cant that receives a grant under this subpart shall
use the funds provided under the grant to carry out
the following activities:
‘‘(A) Providing children aged 3 through 5
with high-quality oral language and literature-
rich 
environments 
in 
which 
to 
acquire
prereading skills.
‘‘(B) Providing professional development
for early childhood teachers that prepares them
with scientific research-based knowledge of
early reading development to assist in devel-
oping the children’s—
‘‘(i) automatic recognition of the let-
ters of the alphabet and letter sounds;
‘‘(ii) understanding that spoken words
are made up of small segments of speech
sounds and that certain letters regularly
represent such speech sounds;
247
‘‘(iii) spoken vocabulary and oral com-
prehension abilities; and
‘‘(iv) understanding of semiotic con-
cepts.
‘‘(C) Identifying and providing scientific
research-based prereading language and literacy
activities and instructional materials for use in
developing the children’s—
‘‘(i) automatic recognition of the let-
ters of the alphabet;
‘‘(ii) understanding that spoken words
are made up of small segments of speech
sounds and that certain letters regularly
represent such speech sounds;
‘‘(iii) spoken vocabulary and oral com-
prehension abilities; and
‘‘(iv) understanding of semiotic con-
cepts.
‘‘(2) OPTIONAL ACTIVITIES.—An eligible appli-
cant that receives a grant under this subpart may
use the funds provided under the grant to carry out
the following activities:
‘‘(A) 
Using 
scientific 
research-based
screening tools or other appropriate measures
248
to determine whether preschool children are de-
veloping the skills identified in this subsection.
‘‘(B) Integrating such instructional mate-
rials and literacy activities with programs of ex-
isting 
child 
care 
agencies 
or 
programs,
preschools, and Head Start centers, and with
family literacy services.
‘‘(f) AWARD AMOUNTS.—The Secretary may estab-
lish a maximum award amount, or ranges of award
amounts, for grants under this subpart.
‘‘SEC. 1223. FEDERAL ADMINISTRATION.
‘‘The Secretary shall consult with the Secretary of
Health and Human Services in order to coordinate the ac-
tivities undertaken under this subpart with programs
under the Head Start Act (42 U.S.C. 9831 et seq.).
‘‘SEC. 1224. REPORTING REQUIREMENTS.
‘‘Each eligible applicant receiving a grant under this
subpart shall report annually to the Secretary regarding
the eligible applicant’s progress in addressing the purposes
of this subpart, including information on—
‘‘(1) the research-based instruction, materials,
and activities being used in the programs funded
under the grant;
249
‘‘(2) the types of programs funded under the
grant and the ages of children served by such pro-
grams;
‘‘(3) the qualifications of the program staff who
provide early literacy instruction under such pro-
grams and the type of ongoing professional develop-
ment provided to such staff; and
‘‘(4) the curricula, materials, and activities used
by the programs funded under the grant to support
children’s reading development.
‘‘SEC. 1225. EVALUATION.
‘‘From the total amount made available under section
1002(b)(2) for the period beginning October 1, 2002, and
ending September 30, 2006, the Secretary shall reserve
not more than $1,000,000 to conduct an independent eval-
uation of the effectiveness of this subpart.
‘‘SEC. 1226. ADDITIONAL RESEARCH.
‘‘From the amount made available under section
1002(b)(2) for each of the fiscal years 2002 through 2006,
the Secretary shall reserve not more than $3,000,000 to
conduct, in consultation with the National Institute for
Child Health and Human Development, the National In-
stitute for Literacy, and the Department of Health and
Human Services, additional research on language and lit-
eracy development for children aged 3 through 5.’’.
250
SEC. 112. AMENDMENTS TO EVEN START.
Part B of title I (20 U.S.C. 6361 et seq.), as amend-
ed by section 111, is further amended—
(1) by inserting before section 1231 (as so re-
designated by section 111) the following:
‘‘Subpart 3—William F. Goodling Even Start Family
Literacy Programs’’;
(2) in each of sections 1231 through 1242 (as
so redesignated by section 111)—
(A) by striking ‘‘this part’’ each place such
term appears and inserting ‘‘this subpart’’; and
(B) by striking ‘‘1002(b)’’ each place such
term appears and inserting ‘‘1002(b)(3)’’;
(3) in section 1231(4), by striking ‘‘2252)’’ and
inserting ‘‘1209)’’;
(4) in section 1232—
(A) in subsection (b)—
(i) in paragraph (1)(A), by striking
‘‘1209;’’ and inserting ‘‘1239;’’; and
(ii) in paragraph (2), by striking
‘‘1211(b)’’ each place such term appears
and inserting ‘‘1241(b)’’; and
(B) in subsection (c)—
(i) by amending paragraph (2)(C) to
read as follows:
251
‘‘(C) COORDINATION WITH SUBPART 1.—
The consortium shall coordinate its activities
with the activities of the reading and literacy
partnership for the State established under sec-
tion 1204(d), if the State receives a grant
under section 1203.’’; and
(ii) in paragraph (3), by striking
‘‘2252).’’ and inserting ‘‘1209).’’;
(5) in section 1233—
(A) by striking ‘‘1202(d)(1)’’ each place
such term appears and inserting ‘‘1232(d)(1)’’;
and
(B) by striking ‘‘1210.’’ and inserting
‘‘1240.’’;
(6) in section 1234—
(A) in subsection (b)—
(i) in paragraph (1)(A), by moving
the margins of clauses (v) and (vi) 2 ems
to the right; and
(ii) in paragraph (3), by striking
‘‘1202(a)(1)(C)’’ 
and 
inserting
‘‘1232(a)(1)(C)’’; and
(B) in subsection (c)—
(i) in paragraph (1)—
252
(I) by striking ‘‘1203(a),’’ and
inserting ‘‘1233(a),’’; and
(II) by striking ‘‘1203(b)’’ and
inserting ‘‘1233(b)’’; and
(ii) in paragraph (2), by striking
‘‘1210.’’ and inserting ‘‘1240.’’;
(7) in section 1235—
(A) in paragraph (10), by striking ‘‘2252)’’
and inserting ‘‘1209)’’;
(B) 
in 
paragraph 
(12), 
by 
striking
‘‘2252),’’ and inserting ‘‘1209),’’; and
(C) in paragraph (15), by striking ‘‘pro-
gram.’’ and inserting ‘‘program to be used for
program improvement.’’;
(8) in section 1237—
(A) in subsection (c)(1)—
(i) in subparagraph (B), by striking
‘‘1205;’’ and inserting ‘‘1235;’’; and
(ii) in subparagraph (F), by striking
‘‘14306;’’ and inserting ‘‘8306;’’; and
(B) in subsection (d), by striking ‘‘14302.’’
and inserting ‘‘8302.’’;
(9) in section 1238—
(A) in subsection (a)(1)—
253
(i) in subparagraph (A)(ii), by strik-
ing ‘‘1205;’’ and inserting ‘‘1235;’’; and
(ii) in subparagraph (F), by striking
‘‘1204(b);’’ and inserting ‘‘1234(b);’’; and
(B) in subsection (b)—
(i) in paragraph (3)—
(I) by striking ‘‘1207(c)(1)(A)’’
and inserting ‘‘1237(c)(1)(A)’’; and
(II) by striking ‘‘1210.’’ and in-
serting ‘‘1240.’’;
(ii) in paragraph (4), by striking
‘‘1210,’’ and inserting ‘‘1240,’’; and
(iii) in paragraph (5)(B), by striking
‘‘1204(b).’’ and inserting ‘‘1234(b).’’;
(10) in section 1239—
(A) by striking ‘‘1202(b)(1),’’ and insert-
ing ‘‘1232(b)(1),’’; and
(B) by striking ‘‘1205(10)’’ and inserting
‘‘1235(10)’’; and
(11) in section 1241—
(A) in subsection (b)(1)—
(i) by striking ‘‘1202(b)(2),’’ and in-
serting ‘‘1232(b)(2),’’; and
(ii) by striking ‘‘2252);’’ and inserting
‘‘1209);’’; and
254
(B) in subsection (c), by striking ‘‘2258,’’
and inserting ‘‘1208,’’.
SEC. 113. INEXPENSIVE BOOK DISTRIBUTION PROGRAM.
(a) TRANSFER
AND REDESIGNATION.—Part E of
title X (20 U.S.C. 8131) is transferred and redesignated
as subpart 4 of part B of title I. Section 10501 is redesig-
nated as section 1251.
(b) PURPOSE.—Section 1251 (as so redesignated) is
amended—
(1) by striking subsection (e);
(2) by redesignating subsection (d) as sub-
section (g);
(3) by redesignating subsections (a) through (c)
as subsections (b) through (d), respectively; and
(4) by inserting before subsection (b) (as so re-
designated) the following:
‘‘(a) PURPOSE.—The purpose of this program is to
establish and implement a model partnership between a
governmental entity and a private entity, to help prepare
young children for reading, and motivate older children
to read, through the distribution of inexpensive books.
Local reading motivation programs assisted under this
section shall use such assistance to provide books, training
for volunteers, motivational activities, and other essential
literacy resources, and shall assign the highest priority to
255
serving the youngest and neediest children in the United
States.’’.
(c) AUTHORIZATION.—Section 1251(b) (as so redes-
ignated) is amended by striking ‘‘books to students, that
motivate children to read.’’ and inserting ‘‘books to young
and school-aged children that motivate them to read.’’.
(d) REQUIREMENTS OF CONTRACT.—Section 1251(c)
(as so redesignated) is amended—
(1) in the matter preceding paragraph (1), by
striking ‘‘subsection (a)’’ and inserting ‘‘subsection
(b)’’; and
(2) in paragraph (4), by inserting ‘‘training
and’’ before ‘‘technical’’.
(e) SPECIAL RULES
FOR CERTAIN SUBCONTRAC-
TORS; MULTI-YEAR CONTRACTS.—Section 1251 (as so re-
designated) is amended by inserting after subsection (d)
the following:
‘‘(e) SPECIAL RULES FOR CERTAIN SUBCONTRAC-
TORS.—
‘‘(1) 
FUNDS
FROM
OTHER
FEDERAL
SOURCES.—Subcontractors 
operating 
programs
under this section in low-income communities with a
substantial number or percentage of children with
special needs, as described in subsection (c)(3), may
use funds from other Federal sources to pay the
256
non-Federal share of the cost of the program, if
those funds do not comprise more than 50 percent
of the non-Federal share of the funds used for the
cost of acquiring and distributing books.
‘‘(2) WAIVER
AUTHORITY.—Notwithstanding
subsection (c), the contractor may waive, in whole or
in part, the requirement in subsection (c)(1) for a
subcontractor, if the subcontractor demonstrates
that it would otherwise not be able to participate in
the program, and enters into an agreement with the
contractor with respect to the amount of the non-
Federal share to which the waiver will apply. In a
case in which such a waiver is granted, the require-
ment in subsection (c)(2) shall not apply.
‘‘(f) MULTI-YEAR CONTRACTS.—The contractor may
enter into a multi-year subcontract under this section, if—
‘‘(1) the contractor believes that such sub-
contract will provide the subcontractor with addi-
tional leverage in seeking local commitments; and
‘‘(2) the subcontract does not undermine the fi-
nances of the national program.’’.
(f) CONTINUATION
OF AWARDS.—Notwithstanding
any other provision of this Act, any person or agency that
was awarded a contract under part E of title X (20 U.S.C.
8131) prior to the date of the enactment of this Act shall
257
continue to receive funds in accordance with the terms of
such contract until the date on which the contract period
terminates under such terms.
PART C—EDUCATION OF MIGRATORY CHILDREN
SEC. 121. STATE ALLOCATIONS.
Section 1303 (20 U.S.C. 6393) is amended—
(1) by amending subsection (a) to read as fol-
lows:
‘‘(a) STATE ALLOCATIONS.—
‘‘(1) FISCAL YEAR 2002.—For fiscal year 2002,
each State (other than the Commonwealth of Puerto
Rico) is entitled to receive under this part an
amount equal to—
‘‘(A) the sum of the estimated number of
migratory children aged three through 21 who
reside in the State full time and the full-time
equivalent of the estimated number of migra-
tory children aged three through 21 who reside
in the State part time, as determined in accord-
ance with subsection (d); multiplied by
‘‘(B) 40 percent of the average per-pupil
expenditure in the State, except that the
amount determined under this paragraph shall
not be less than 32 percent, nor more than 48
258
percent, of the average expenditure per pupil in
the United States.
‘‘(2) SUBSEQUENT YEARS.—
‘‘(A) BASE AMOUNT.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in subsection (b) and clause (ii), each
State (other than the Commonwealth of
Puerto Rico) is entitled to receive under
this part, for fiscal year 2003 and suc-
ceeding fiscal years, an amount equal to—
‘‘(I) the amount that such State
received under this part for fiscal year
2002; plus
‘‘(II) the amount allocated to the
State under subparagraph (B).
‘‘(ii) NONPARTICIPATING STATES.—In
the case of a State (other than the Com-
monwealth of Puerto Rico) that did not re-
ceive any funds for fiscal year 2002 under
this part, the State shall receive, for fiscal
year 2003 and succeeding fiscal years, an
amount equal to—
‘‘(I) the amount that such State
would have received under this part
for fiscal year 2002 if its application
259
under section 1304 for the year had
been approved; plus
‘‘(II) the amount allocated to the
State under subparagraph (B).
‘‘(B) 
ALLOCATION
OF
ADDITIONAL
AMOUNT.—For fiscal year 2003 and succeeding
fiscal years, the amount (if any) by which the
funds appropriated to carry out this part for
the year exceed such funds for fiscal year 2002
shall be allocated to a State (other than the
Commonwealth of Puerto Rico) so that the
State receives an amount equal to—
‘‘(i) the sum of—
‘‘(I) the number of identified eli-
gible migratory children, aged 3
through 21, residing in the State dur-
ing the previous year; and
‘‘(II) the number of identified eli-
gible migratory children, aged 3
through 21, who received services
under this part in summer or interses-
sion programs provided by the State
during such year; multiplied by
‘‘(ii) 40 percent of the average per-
pupil expenditure in the State, except that
260
the amount determined under this clause
may not be less than 32 percent, or more
than 48 percent, of the average per-pupil
expenditure in the United States.’’;
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) ALLOCATION TO PUERTO RICO.—
‘‘(1) IN GENERAL.—For each fiscal year, the
grant which the Commonwealth of Puerto Rico shall
be eligible to receive under this part shall be the
amount determined by multiplying the number of
children counted under subsection (a)(1)(A) for the
Commonwealth of Puerto Rico by the product of—
‘‘(A) the percentage which the average per
pupil expenditure in the Commonwealth of
Puerto Rico is of the lowest average per pupil
expenditure of any of the 50 States; and
‘‘(B) 32 percent of the average per pupil
expenditure in the United States.
‘‘(2) MINIMUM PERCENTAGE.—The percentage
in paragraph (1)(A) shall not be less than—
‘‘(A) for fiscal year 2002, 77.5 percent;
‘‘(B) for fiscal year 2003, 80.0 percent;
‘‘(C) for fiscal year 2004, 82.5 percent;
and
261
‘‘(D) for fiscal year 2005 and succeeding
fiscal years, 85.0 percent.
‘‘(3) LIMITATION.—If the application of para-
graph (2) would result in any of the 50 States or
the District of Columbia receiving less under this
part than it received under this part for the pre-
ceding fiscal year, the percentage in paragraph (1)
shall be the greater of the percentage in paragraph
(1)(A) or the percentage used for the preceding fis-
cal year.’’; and
(3) by striking subsection (d) and redesignating
subsection (e) as subsection (d).
SEC. 122. STATE APPLICATIONS; SERVICES.
(a) PROGRAM INFORMATION.—Section 1304(b) (20
U.S.C. 6394(b)) is amended—
(1) in paragraph (1), by striking ‘‘addressed
through’’ and all that follows through the semicolon
at the end and inserting the following:
‘‘addressed through—
‘‘(A) the full range of services that are
available for migratory children from appro-
priate local, State, and Federal educational pro-
grams;
‘‘(B) joint planning among local, State,
and Federal educational programs serving mi-
262
grant children, including programs under part
A of title III;
‘‘(C) the integration of services available
under this part with services provided by those
other programs; and
‘‘(D) measurable program goals and out-
comes;’’; and
(2) in paragraph (5), by striking ‘‘the require-
ments of paragraph (1);’’ and inserting ‘‘the num-
bers and needs of migratory children, the require-
ments of subsection (d), and the availability of funds
from other Federal, State, and local programs;’’.
(b) ASSURANCES.—Section 1304(c) (20 U.S.C.
6394(c)) is amended—
(1) in paragraph (1), by striking ‘‘1306(b)(1);’’
and inserting ‘‘1306(a);’’;
(2) in paragraph (2), by striking ‘‘part F;’’ and
inserting ‘‘part H;’’
(3) in paragraph (3)—
(A) by striking ‘‘appropriate’’;
(B) by striking ‘‘out, to the extent fea-
sible,’’ and inserting ‘‘out’’; and
(C) by striking ‘‘1118;’’ and inserting
‘‘1118, 
unless 
extraordinary 
circumstances
263
make implementation consistent with such sec-
tion impractical;’’; and
(4) in paragraph (7), by striking ‘‘section
1303(e)’’ and inserting ‘‘paragraphs (1)(A) and
(2)(B)(i) of section 1303(a)’’.
SEC. 123. AUTHORIZED ACTIVITIES.
Section 1306 (20 U.S.C. 6396) is amended to read
as follows:
‘‘SEC. 1306. AUTHORIZED ACTIVITIES.
‘‘(a) IN GENERAL.—
‘‘(1) FLEXIBILITY.—Each State educational
agency, through its local educational agencies, shall
have the flexibility to determine the activities to be
provided with funds made available under this part,
except that such funds shall first be used to meet
the identified needs of migratory children that result
from their migratory lifestyle, and to permit these
children to participate effectively in school.
‘‘(2) UNADDRESSED NEEDS.—Funds provided
under this part shall be used to address the needs
of migratory children that are not addressed by serv-
ices available from other Federal or non-Federal
programs, except that migratory children who are el-
igible to receive services under part A of this title
may receive those services through funds provided
264
under that part, or through funds under this part
that remain after the agency addresses the needs de-
scribed in paragraph (1).
‘‘(b) CONSTRUCTION.—Nothing in this part shall be
construed to prohibit a local educational agency from serv-
ing migratory children simultaneously with students with
similar educational needs in the same educational settings,
where appropriate.
‘‘(c) SPECIAL RULE.—Notwithstanding section 1114,
a school that receives funds under this part shall continue
to address the identified needs described in subsection
(a)(1).’’.
SEC. 124. COORDINATION OF MIGRANT EDUCATION ACTIVI-
TIES.
(a) DURATION.—Section 1308(a)(2) (20 U.S.C.
6398(a)(2)) is amended by striking ‘‘subpart’’ and insert-
ing ‘‘subsection’’.
(b) STUDENT
RECORDS.—Section 1308(b) (20
U.S.C. 6398(b)) is amended to read as follows:
‘‘(b) STUDENT RECORDS.—
‘‘(1) ASSISTANCE.—The Secretary shall assist
States in developing effective methods for the trans-
fer of student records and in determining the num-
ber of migratory children in each State. The Sec-
retary, in consultation with the States, shall deter-
265
mine the minimum data elements that each State re-
ceiving funds under this part shall collect and main-
tain. The Secretary shall assist States to implement
a system of linking their student record transfer sys-
tems for the purpose of electronic records mainte-
nance and transfer for migrant students.
‘‘(2) NO COST FOR CERTAIN TRANSFERS.—A
State educational agency or local educational agency
receiving assistance under this part shall make stu-
dent records available to another State or local edu-
cational agency that requests the records at no cost
to the requesting agency, if the request is made in
order to meet the needs of a migratory child.’’.
(c) AVAILABILITY OF FUNDS.—Section 1308(c) (20
U.S.C. 6398(c)) is amended by striking ‘‘$6,000,000’’ and
inserting ‘‘$10,000,000’’.
(d) INCENTIVE
GRANTS.—Section 1308(d) (20
U.S.C. 6398(d)) is amended to read as follows:
‘‘(d) INCENTIVE GRANTS.—From the amounts made
available to carry out this section for any fiscal year, the
Secretary may reserve not more than $3,000,000 to award
grants of not more than $250,000 on a competitive basis
to State educational agencies that propose a consortium
arrangement with another State or other appropriate enti-
ty that the Secretary determines, pursuant to criteria that
266
the Secretary shall establish, will improve the delivery of
services to migratory children whose education is inter-
rupted.’’.
PART D—NEGLECTED OR DELINQUENT YOUTH
SEC. 131. NEGLECTED OR DELINQUENT YOUTH.
The heading for part D of title I is amended to read
as follows:
‘‘PART 
D—PREVENTION 
AND 
INTERVENTION
PROGRAMS FOR NEGLECTED OR DELIN-
QUENT CHILDREN AND YOUTH’’.
SEC. 132. FINDINGS.
Section 1401(a) (20 U.S.C. 6421(a)) is amended by
striking paragraphs (6) through (9) and inserting the fol-
lowing:
‘‘(6) Youth returning from correctional facilities
need to be involved in programs that provide them
with high-level skills and other support to help them
stay in school and complete their education.
‘‘(7) Pregnant and parenting teenagers are a
high-at-risk group for dropping out of school and
should be targeted by dropout prevention pro-
grams.’’.
SEC. 133. ALLOCATION OF FUNDS.
Section 1412(b) (20 U.S.C. 6432(b)) is amended to
read as follows:
267
‘‘(b) SUBGRANTS TO STATE AGENCIES IN PUERTO
RICO.—
‘‘(1) IN GENERAL.—For each fiscal year, the
amount of the subgrant which a State agency in the
Commonwealth of Puerto Rico shall be eligible to re-
ceive under this part shall be the amount determined
by multiplying the number of children counted under
subparagraph (a)(1)(A) for the Commonwealth of
Puerto Rico by the product of—
‘‘(A) the percentage which the average per-
pupil expenditure in the Commonwealth of
Puerto Rico is of the lowest average per-pupil
expenditure of any of the 50 States; and
‘‘(B) 32 percent of the average per-pupil
expenditure in the United States.
‘‘(2) MINIMUM PERCENTAGE.—The percentage
in paragraph (1)(A) shall not be less than—
‘‘(A) for fiscal year 2002, 77.5 percent;
‘‘(B) for fiscal year 2003, 80.0 percent;
‘‘(C) for fiscal year 2004, 82.5 percent;
and
‘‘(D) for fiscal year 2005 and succeeding
fiscal years, 85.0 percent.
‘‘(3) LIMITATION.—If the application of para-
graph (2) would result in any of the 50 States or
268
the District of Columbia receiving less under this
part than it received under this part for the pre-
ceding fiscal year, the percentage in paragraph (1)
shall be the greater of the percentage in paragraph
(1)(A) or the percentage used for the preceding fis-
cal year.’’.
SEC. 134. STATE PLAN AND STATE AGENCY APPLICATIONS.
Section 1414 (20 U.S.C. 6434) is amended to read
as follows:
‘‘SEC. 1414. STATE PLAN AND STATE AGENCY APPLICA-
TIONS.
‘‘(a) STATE PLAN.—
‘‘(1) IN
GENERAL.—Each State educational
agency that desires to receive a grant under this
part shall submit, for approval by the Secretary, a
plan for meeting the educational needs of neglected
and delinquent youth, for assisting in their transi-
tion from institutions to locally operated programs,
and which is integrated with other programs under
this Act or other Acts, as appropriate, consistent
with section 8306.
‘‘(2) CONTENTS.—Each such State plan shall—
‘‘(A) describe the program goals, objec-
tives, and performance measures established by
the State that will be used to assess the effec-
269
tiveness of the program in improving academic
and vocational and technical skills of children in
the program;
‘‘(B) provide that, to the extent feasible,
such children will have the same opportunities
to learn as such children would have if such
children were in the schools of local educational
agencies in the State; and
‘‘(C) contain assurances that the State
educational agency will—
‘‘(i) ensure that programs assisted
under this part will be carried out in ac-
cordance with the State plan described in
this subsection;
‘‘(ii) carry out the evaluation require-
ments of section 1416;
‘‘(iii) ensure that the State agencies
receiving subgrants under this subpart
comply with all applicable statutory and
regulatory requirements; and
‘‘(iv) provide such other information
as the Secretary may reasonably require.
‘‘(3) DURATION
OF
THE
PLAN.—Each such
State plan shall—
270
‘‘(A) remain in effect for the duration of
the State’s participation under this part; and
‘‘(B) be periodically reviewed and revised
by the State, as necessary, to reflect changes in
the State’s strategies and programs under this
part.
‘‘(b) SECRETARIAL APPROVAL AND PEER REVIEW.—
‘‘(1) SECRETARIAL APPROVAL.—The Secretary
shall approve each State plan that meets the re-
quirements of this part.
‘‘(2) PEER REVIEW.—The Secretary may review
any State plan with the assistance and advice of in-
dividuals with relevant expertise.
‘‘(c) STATE AGENCY APPLICATIONS.—Any State
agency that desires to receive funds to carry out a pro-
gram under this part shall submit an application to the
State educational agency that—
‘‘(1) describes the procedures to be used, con-
sistent with the State plan under section 1111, to
assess the educational needs of the children to be
served;
‘‘(2) provides assurances that in making serv-
ices available to youth in adult correctional facilities,
priority will be given to such youth who are likely to
complete incarceration within a 2-year period;
271
‘‘(3) describes the program, including a budget
for the first year of the program, with annual up-
dates to be provided to the State educational agency;
‘‘(4) describes how the program will meet the
goals and objectives of the State plan under this
subpart;
‘‘(5) describes how the State agency will consult
with experts and provide the necessary training for
appropriate staff, to ensure that the planning and
operation of institution-wide projects under section
1416 are of high quality;
‘‘(6) describes how the agency will carry out the
evaluation requirements of section 8651 and how the
results of the most recent evaluation are used to
plan and improve the program;
‘‘(7) includes data showing that the agency has
maintained fiscal effort required of a local edu-
cational agency, in accordance with section 8501;
‘‘(8) describes how the programs will be coordi-
nated with other appropriate State and Federal pro-
grams, such as job training programs, vocational
and technical education programs, State and local
dropout prevention programs, and special education
programs;
272
‘‘(9) describes how States will encourage correc-
tional facilities receiving funds under this subpart to
coordinate with local educational agencies or alter-
native education programs attended by incarcerated
youth prior to their incarceration to ensure that stu-
dent assessments and appropriate academic records
are shared jointly between the correctional facility
and the local educational agency or alternative edu-
cation program;
‘‘(10) describes how appropriate professional
development will be provided to teachers and other
staff;
‘‘(11) designates an individual in each affected
institution to be responsible for issues relating to the
transition of children and youth from the institution
to locally operated programs;
‘‘(12) describes how the agency will endeavor to
coordinate with businesses for training and men-
toring for participating youth;
‘‘(13) provides assurances that the agency will
assist in locating alternative programs through
which students can continue their education if stu-
dents are not returning to school after leaving the
correctional facility;
273
‘‘(14) provides assurances that the agency will
work with parents to secure parents’ assistance in
improving the educational achievement of their chil-
dren and preventing their children’s further involve-
ment in delinquent activities;
‘‘(15) provides assurances that the agency
works with special education youth in order to meet
an existing individualized education program and an
assurance that the agency will notify the youth’s
local school if such youth—
‘‘(A) is identified as in need of special edu-
cation services while the youth is in the facility;
and
‘‘(B) intends to return to the local school;
‘‘(16) provides assurances that the agency will
work with youth who dropped out of school before
entering the facility to encourage the youth to reen-
ter school once the term of incarceration has been
completed or provide the youth with the skills nec-
essary to gain employment, continue the education
of the youth, or achieve a secondary school diploma
or the recognized equivalent if the youth does not in-
tend to return to school;
‘‘(17) provides assurances that teachers and
other qualified staff are also trained to work with
274
children with disabilities and other students with
special needs, taking into consideration the unique
needs of such students;
‘‘(18) describes any additional services to be
provided to youth, such as career counseling, dis-
tance learning, and assistance in securing student
loans and grants; and
‘‘(19) provides assurances that the program
under this subpart will be coordinated with any pro-
grams operated under the Juvenile Justice and De-
linquency Prevention Act of 1974 (42 U.S.C. 5601
et seq.) or other comparable programs, if applica-
ble.’’.
SEC. 135. USE OF FUNDS.
Section 1415(a) (20 U.S.C. 6435(a)) is amended—
(1) in paragraph (1)(B), by inserting ‘‘, voca-
tional and technical training’’ after ‘‘secondary
school completion’’;
(2) in paragraph (2)(B)—
(A) in clause (i), by inserting ‘‘and’’ after
the semicolon;
(B) in clause (ii), by striking ‘‘; and’’ and
inserting a semicolon; and
(C) by striking clause (iii);
275
(3) in paragraph (2)(C), by striking ‘‘part F of
this title’’ and inserting ‘‘part H’’; and
(4) in paragraph (2)(D), by striking ‘‘section
14701’’ and inserting ‘‘section 8651’’.
SEC. 136. TRANSITION SERVICES.
Section 1418(a) (20 U.S.C. 6438(a)) is amended by
striking ‘‘10 percent’’ and inserting ‘‘15 percent’’.
SEC. 137. PURPOSE.
Section 1421(3) (20 U.S.C. 6451(3)) is amended to
read as follows:
‘‘(3) operate programs in local schools for youth
returning from correctional facilities and programs
which may also serve youth at risk of dropping out
of school.’’.
SEC. 138. PROGRAMS OPERATED BY LOCAL EDUCATIONAL
AGENCIES.
Section 1422 (20 U.S.C. 6452) is amended—
(1) in subsection (a), by striking ‘‘retained’’;
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) SPECIAL RULE.—A local educational agency
which includes a correctional facility that operates a school
is not required to operate a program of support for chil-
dren returning from such school to a school not operated
by a correctional agency but served by such local edu-
276
cational agency if more than 30 percent of the youth at-
tending the school operated by the correctional facility will
reside outside the boundaries of the local educational
agency after leaving such facility.’’; and
(3) by adding at the end the following:
‘‘(d) TRANSITIONAL
AND ACADEMIC SERVICES.—
Transitional and supportive programs operated in local
educational agencies under this subpart shall be designed
primarily to meet the transitional and academic needs of
students returning to local educational agencies or alter-
native education programs from correctional facilities.
Services to students at risk of dropping out of school shall
not have a negative impact on meeting the transitional and
academic needs of the students returning from correc-
tional facilities.’’.
SEC. 139. LOCAL EDUCATIONAL AGENCY APPLICATIONS.
Section 1423 (20 U.S.C. 6453) is amended by strik-
ing paragraphs (4) through (9) and inserting the fol-
lowing:
‘‘(4) a description of the program operated by
participating schools for children returning from cor-
rectional facilities and the types of services that such
schools will provide such youth and other at-risk
youth;
277
‘‘(5) a description of the characteristics (includ-
ing learning difficulties, substance abuse problems,
and other special needs) of the youth who will be re-
turning from correctional facilities and, as appro-
priate, other at-risk youth expected to be served by
the program and how the school will coordinate ex-
isting educational programs to meet the unique edu-
cational needs of such youth;
‘‘(6) as appropriate, a description of how
schools will coordinate with existing social, health,
and other services to meet the needs of students re-
turning from correctional facilities, students at risk
of dropping out of school, and other participating
students, including prenatal health care and nutri-
tion services related to the health of the parent and
child, parenting and child development classes, child
care, targeted reentry and outreach programs, refer-
rals to community resources, and scheduling flexi-
bility;
‘‘(7) as appropriate, a description of any part-
nerships with local businesses to develop training,
curriculum-based youth entrepreneurship education,
and mentoring services for participating students;
‘‘(8) as appropriate, a description of how pro-
grams will involve parents in efforts to improve the
278
educational achievement of their children, prevent
the involvement of their children in delinquent activi-
ties, and encourage their children to remain in
school and complete their education;
‘‘(9) a description of how the program under
this subpart will be coordinated with other Federal,
State, and local programs, such as job training pro-
grams and vocational and technical education pro-
grams serving this at-risk population of youth;’’.
SEC. 140. USES OF FUNDS.
Section 1424 (20 U.S.C. 6454) is amended by strik-
ing paragraphs (1) through (3) and inserting the fol-
lowing:
‘‘(1) programs that serve youth returning from
correctional facilities to local schools, to assist in the
transition of such youth to the school environment
and help them remain in school in order to complete
their education;
‘‘(2) providing assistance to other youth at risk
of dropping out of school, including pregnant and
parenting teenagers;
‘‘(3) the coordination of social, health, and
other services, including day care, for participating
youth, if the provision of such services will improve
279
the likelihood that such youth will complete their
education;
‘‘(4) special programs to meet the unique aca-
demic needs of participating youth, including voca-
tional and technical education, special education, ca-
reer counseling, curriculum-based youth entrepre-
neurship education, and assistance in securing stu-
dent loans or grants for postsecondary education;
and
‘‘(5) programs providing mentoring and peer
mediation.’’.
SEC. 141. PROGRAM REQUIREMENTS.
Section 1425 (20 U.S.C. 6455) is amended—
(1) in the section heading, by striking ‘‘THIS
SECTION’’ and inserting ‘‘this subpart’’;
(2) in the matter preceding paragraph (1), by
striking ‘‘this section’’ and inserting ‘‘this subpart’’;
(3) in paragraph (1), by striking ‘‘where fea-
sible, ensure educational programs’’ and inserting
‘‘to the extent practicable, ensure that educational
programs’’;
(4) in paragraphs (3) and (8), by striking
‘‘where feasible,’’ and inserting ‘‘to the extent prac-
ticable,’’;
(5) in paragraph (9)—
280
(A) by striking ‘‘this program’’ and insert-
ing ‘‘this subpart’’;
(B) by inserting ‘‘and technical’’ after ‘‘vo-
cational’’; and
(C) by striking ‘‘title I of the Workforce
Investment Act of 1998’’ and inserting ‘‘other
job training programs’’;
(6) in paragraph (10), by inserting ‘‘(42 U.S.C.
5601 et seq.)’’ after ‘‘Juvenile Justice and Delin-
quency Prevention Act of 1974’’; and
(7) by amending paragraph (11) to read as fol-
lows:
‘‘(11) if appropriate, work with local businesses
to develop training, curriculum-based youth entre-
preneurship education, and mentoring programs for
youth.’’.
SEC. 142. PROGRAM EVALUATIONS.
Section 1431(a) (20 U.S.C. 6471(a)) is amended by
striking ‘‘sex, and if feasible,’’ and inserting ‘‘gender,’’.
PART E—FEDERAL EVALUATIONS AND
DEMONSTRATIONS
SEC. 151. EVALUATIONS.
Section 1501 (20 U.S.C. 6491) is amended to read
as follows:
281
‘‘SEC. 1501. EVALUATIONS.
‘‘(a) NATIONAL ASSESSMENT.—
‘‘(1) IN
GENERAL.—In accordance with this
section, the Secretary shall conduct a national as-
sessment of programs assisted under this title.
‘‘(2) ISSUES TO BE EXAMINED.—In conducting
the assessment under this subsection, the Secretary
shall examine—
‘‘(A) the implementation of programs as-
sisted under this title and the impact of such
implementation on increasing student academic
achievement, particularly schools with high con-
centrations of children living in poverty;
‘‘(B) the implementation of State stand-
ards, assessments, and accountability systems
developed under this title and the impact of
such implementation on educational programs
and instruction at the local level;
‘‘(C) the impact of schoolwide programs
and targeted assistance programs under this
title on improving student academic achieve-
ment;
‘‘(D) the extent to which varying models of
comprehensive school reform are funded under
this title, and the effect of the implementation
282
of such models on improving achievement of
disadvantaged students;
‘‘(E) the costs as compared to the benefits
of the activities assisted under this title;
‘‘(F) the impact of school choice options
under section 1116 on the academic achieve-
ment of disadvantaged students, on schools in
school improvement, and on schools from which
students have transferred under such options;
‘‘(G) the extent to which actions author-
ized under section 1116 of this title are em-
ployed by State and local educational agencies
to improve the academic achievement of stu-
dents in low-performing schools, and the effec-
tiveness of the implementation of such actions;
‘‘(H) the extent to which technical assist-
ance made available under this title is used to
improve the achievement of students in low-per-
forming schools, and the impact of such assist-
ance on such achievement;
‘‘(I) the extent to which State and local
fiscal accounting requirements under this title
limit the flexibility of schoolwide programs;
283
‘‘(J) the impact of the professional devel-
opment activities assisted under this title on in-
struction and student performance;
‘‘(K) the extent to which the assistance
made available under this title is targeted to
disadvantaged students and schools that need
them the most;
‘‘(L) the effectiveness of Federal adminis-
tration assistance made available under this
title, including monitoring and technical assist-
ance; and
‘‘(M) such other issues as the Secretary
considers appropriate.
‘‘(3) SOURCES
OF
INFORMATION.—In con-
ducting the assessment under this subsection, the
Secretary shall use information from a variety of
sources, including the National Assessment of Edu-
cational Progress (carried out under section 411 of
the National Education Statistics Act of 1994 (20
U.S.C. 9010)), state evaluations, and other research
studies.
‘‘(4) COORDINATION.—In carrying out this sub-
section, the Secretary shall—
284
‘‘(A) coordinate conducting the national
assessment with conducting the longitudinal
study described in subsection (c); and
‘‘(B) ensure that the independent review
panel described in subsection (d) participates in
conducting the national assessment, including
planning for and reviewing the assessment.
‘‘(5) REPORTS.—
‘‘(A) INTERIM REPORT.—Not later than 3
years after the date of enactment of the Leave
No Child Behind Act of 2001, the Secretary
shall transmit to the President and the Con-
gress an interim report on the national assess-
ment conducted under this subsection.
‘‘(B) FINAL REPORT.—Not later than 4
years after the date of enactment of the Leave
No Child Behind Act of 2001, the Secretary
shall transmit to the President and the Con-
gress a final report on the national assessment
conducted under this subsection.
‘‘(b) STUDIES AND DATA COLLECTION.—
‘‘(1) IN GENERAL.—In addition to other activi-
ties described in this section, the Secretary may, di-
rectly or through the making of grants to or con-
tracts with appropriate entities—
285
‘‘(A) conduct studies and evaluations of
the need for, and effectiveness of, each program
authorized under this title;
‘‘(B) collect the data necessary to comply
with the Government Performance and Results
Act of 1993; and
‘‘(C) provide guidance and technical assist-
ance to State educational agencies and local
educational agencies in developing and main-
taining 
management 
information 
systems
through which such agencies can develop pro-
gram performance indicators in order to im-
prove services and performance.
‘‘(2) MINIMUM INFORMATION.—Under this sub-
section, the Secretary shall collect, at a minimum,
trend information on the effect of each program au-
thorized under this title, which shall complement the
data collected and reported under subsections (a)
and (c).
‘‘(c) NATIONAL LONGITUDINAL STUDY.—
‘‘(1) IN GENERAL.—The Secretary shall con-
duct a longitudinal study of schools receiving assist-
ance under this title.
‘‘(2) ISSUES
TO
BE
EXAMINED.—In carrying
out this subsection, the Secretary shall ensure that
286
the study referred to in paragraph (1) provides the
Congress and educators with each of the following:
‘‘(A) An accurate description and analysis
of short-term and long-term effectiveness of the
assistance made available under this title upon
academic performance.
‘‘(B) Information that can be used to im-
prove the effectiveness of the assistance made
available under this title in enabling students to
meet challenging achievement standards.
‘‘(C) An analysis of educational practices
or model programs that are effective in improv-
ing the achievement of disadvantaged children.
‘‘(D) An analysis of the costs as compared
to the benefits of the assistance made available
under this title in improving the achievement of
disadvantaged children.
‘‘(E) An analysis of the effects of the avail-
ability of school choice options under section
1116 on the academic achievement of disadvan-
taged students, on schools in school improve-
ment, and on schools from which students have
transferred under such options.
‘‘(F) Such other information as the Sec-
retary considers appropriate.
287
‘‘(3) SCOPE.—In conducting the study referred
to in paragraph (1), the Secretary shall ensure that
the study—
‘‘(A) bases its analysis on a nationally rep-
resentative sample of schools participating in
programs under this part;
‘‘(B) to the extent practicable, includes in
its analysis students who transfer to different
schools during the course of the study; and
‘‘(C) analyzes varying models or strategies
for delivering school services, including—
‘‘(i) schoolwide and targeted services;
and
‘‘(ii) comprehensive school reform
models.
‘‘(d) INDEPENDENT REVIEW PANEL.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish an independent review panel (in this subsection
referred to as the ‘Review Panel’) to advise the Sec-
retary on methodological and other issues that arise
in carrying out subsections (a) and (c).
‘‘(2) APPOINTMENT OF MEMBERS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall appoint members
288
of the Review Panel from among qualified indi-
viduals who are—
‘‘(i) specialists in statistics, evalua-
tion, research, and assessment;
‘‘(ii) education practitioners, including
teachers, principals, and local and State
superintendents; and
‘‘(iii) other individuals with technical
expertise who would contribute to the over-
all rigor and quality of the program eval-
uation.
‘‘(B) LIMITATIONS.—In appointing mem-
bers of the Review Panel under this subpara-
graph (A), the Secretary shall ensure that—
‘‘(i) in order to ensure diversity, a
majority of the number of individuals ap-
pointed under subparagraph (A)(i) rep-
resent disciplines or programs outside the
field of education; and
‘‘(ii) the total number of the individ-
uals appointed under subparagraph (A)(ii)
or (A)(iii) does not exceed 1⁄3 of the total
number of the individuals appointed under
this paragraph.
289
‘‘(3) FUNCTIONS.—The Review Panel shall con-
sult with and advise the Secretary—
‘‘(A) to ensure that the assessment con-
ducted under subsection (a) and the study con-
ducted under subsection (c)—
‘‘(i) adhere to the highest possible
standards of quality with respect to re-
search design, statistical analysis, and the
dissemination of findings; and
‘‘(ii) use valid and reliable measures
to document program implementation and
impacts; and
‘‘(B) to ensure—
‘‘(i) that the final report described in
subsection (a)(5)(B) is reviewed not later
than 120 days after its completion by not
less than two independent experts in pro-
gram evaluation;
‘‘(ii) that such experts evaluate and
comment on the degree to which the report
complies with subsection (a); and
‘‘(iii) that the comments of such ex-
perts are transmitted with the report
under subsection (a)(5)(B).’’.
290
SEC. 152. DEMONSTRATIONS OF INNOVATIVE PRACTICES.
(a) IN GENERAL.—Section 1502 (20 U.S.C. 6492)
is amended—
(1) by redesignating subsection (b) as sub-
section (c);
(2) by striking in subsection (a) ‘‘(2) EVALUA-
TION.—The Secretary’’ and inserting ‘‘(b) EVALUA-
TION.—The Secretary’’ and by moving such sub-
section (b) 2 ems to the left;
(3) by striking in subsection (a) ‘‘Such projects
shall include promising’’ and all that follows through
‘‘career guidance opportunities.’’;
(4) by striking ‘‘student performance stand-
ards’’ and inserting ‘‘student achievement stand-
ards’’;
(5) by inserting ‘‘academic’’ after ‘‘to meet
challenging State’’; and
(6) by striking ‘‘(a) DEMONSTRATION PRO-
GRAMS’’ and all that follows through ‘‘IN
GEN-
ERAL.—From the’’ and inserting ‘‘(a) IN GEN-
ERAL.—From the’’.
SEC. 153. ELLENDER-CLOSE UP FELLOWSHIP PROGRAM;
DROPOUT REPORTING.
(a) IN GENERAL.—Part E of title I (20 U.S.C. 6491
et seq.) is further amended by adding at the end the fol-
lowing:
291
‘‘SEC. 1503. ELLENDER-CLOSE UP FELLOWSHIP PROGRAM.
‘‘(a) FINDINGS.—Congress finds the following:
‘‘(1) It is a worthwhile goal to ensure that all
students in America are prepared for responsible
citizenship and that all students should have the op-
portunity to be involved in activities that promote
and demonstrate good citizenship.
‘‘(2) It is a worthwhile goal to ensure that
America’s educators have access to programs for the
continued improvement of their professional skills.
‘‘(3) Allen J. Ellender, a Senator from Lou-
isiana and President pro tempore of the United
States Senate, had a distinguished career in public
service characterized by extraordinary energy and
real concern for young people. Senator Ellender pro-
vided valuable support and encouragement to the
Close Up Foundation, a nonpartisan, nonprofit foun-
dation promoting knowledge and understanding of
the Federal Government among young people and
educators. Therefore, it is a fitting and appropriate
tribute to Senator Ellender to provide fellowships in
his name to students of limited economic means and
the teachers who work with such students, so that
such students and teachers may participate in the
programs supported by the Close Up Foundation.
292
‘‘(4) The Close Up Foundation is a non-
partisan, nonprofit, education foundation promoting
civic responsibility and knowledge and understanding
of the Federal Government among young people and
educators. The Congress has consistently supported
the Close Up Foundation’s work with disadvantaged
young people and their educators through the Allen
J. Ellender Fellowship Program. Therefore, it is fit-
ting and appropriate to continue support under the
successor Ellender-Close Up Fellowship Program to
students of limited economic means and the teachers
who work with such students, so that such students
and teachers may participate in the programs sup-
ported by the Close Up Foundation.
‘‘(b) PROGRAM
FOR
MIDDLE
AND
SECONDARY
SCHOOL STUDENTS.—
‘‘(1) ESTABLISHMENT.—
‘‘(A) GENERAL
AUTHORITY.—In accord-
ance with this subsection, the Secretary may
make grants to the Close Up Foundation of
Washington, District of Columbia, a non-
partisan, nonprofit foundation, for the purpose
of assisting the Close Up Foundation in car-
rying out its programs of increasing civic re-
sponsibility and understanding of the Federal
293
Government among middle and secondary
school students.
‘‘(B) USE OF FUNDS.—Grants under this
subsection shall be used only to provide finan-
cial assistance to economically disadvantaged
students who participate in the program de-
scribed in subparagraph (A). Financial assist-
ance received pursuant to this subsection by
such students shall be known as Ellender-Close
Up fellowships.
‘‘(2) APPLICATIONS.—
‘‘(A) APPLICATION REQUIRED.—No grant
under this subsection may be made except upon
an application at such time, in such manner,
and accompanied by such information as the
Secretary may reasonably require.
‘‘(B) CONTENTS OF APPLICATION.—Each
application submitted under this paragraph
shall contain provisions to assure—
‘‘(i) that fellowship grants are made
to economically disadvantaged middle and
secondary school students;
‘‘(ii) that every effort will be made to
ensure the participation of students from
rural and small town areas, as well as from
294
urban areas, and that in awarding fellow-
ships to economically disadvantaged stu-
dents, special consideration will be given to
the participation of students with special
educational needs, including students with
disabilities, ethnic minority students, re-
cent immigrants, and gifted and talented
students; and
‘‘(iii) the proper disbursement of the
funds received under this subsection.
‘‘(c) PROGRAM
FOR
MIDDLE
AND
SECONDARY
SCHOOL TEACHERS.—
‘‘(1) ESTABLISHMENT.—
‘‘(A) GENERAL
AUTHORITY.—In accord-
ance with this subsection, the Secretary may
make grants to the Close Up Foundation of
Washington, District of Columbia, a non-
partisan, nonprofit foundation, for the purpose
of assisting the Close Up Foundation in car-
rying out its programs of professional develop-
ment for middle and secondary school teachers
and to promote greater civic understanding and
responsibility among the students of such teach-
ers.
295
‘‘(B) USE OF FUNDS.—Grants under this
subsection shall be used only for financial as-
sistance to teachers who participate in the pro-
gram described in subparagraph (A). Financial
assistance received pursuant to this subpart by
such individuals shall be known as Ellender-
Close Up fellowships.
‘‘(2) APPLICATIONS.—
‘‘(A) APPLICATION REQUIRED.—No grant
under this subsection may be made except upon
an application at such time, in such manner,
and accompanied by such information as the
Secretary may reasonably require.
‘‘(B) CONTENTS OF APPLICATION.—Each
application submitted under this paragraph
shall contain provisions to assure—
‘‘(i) that fellowship grants are made
only to teachers who have worked with at
least one student from such teacher’s
school who participates in the programs
described in subsection (b);
‘‘(ii) that no teacher in each school
participating in the programs assisted
under subsection (b) may receive more
than one fellowship in any fiscal year; and
296
‘‘(iii) the proper disbursement of the
funds received under this subsection.
‘‘(d) PROGRAMS FOR RECENT IMMIGRANTS AND STU-
DENTS OF MIGRANT PARENTS.—
‘‘(1) ESTABLISHMENT.—
‘‘(A) GENERAL
AUTHORITY.—In accord-
ance with this subsection, the Secretary may
make grants to the Close Up Foundation of
Washington, District of Columbia, a non-
partisan, nonprofit foundation, for the purpose
of assisting the Close Up Foundation in car-
rying out its programs of increasing under-
standing of the Federal Government among
economically disadvantaged recent immigrants
and students of migrant parents.
‘‘(B) USE OF FUNDS.—Grants under this
subsection shall be used for financial assistance
to economically disadvantaged older Americans,
recent immigrants and students of migrant par-
ents who participate in the program described
in subsection (a). Financial assistance received
pursuant to this subpart by such individuals
shall be known as Ellender-Close Up fellow-
ships.
‘‘(2) APPLICATIONS.—
297
‘‘(A) APPLICATION REQUIRED.—No grant
under this subsection may be made except upon
application at such time, in such manner, and
accompanied by such information as the Sec-
retary may reasonably require.
‘‘(B) CONTENTS OF APPLICATION.—Each
application submitted under this paragraph
shall contain provisions—
‘‘(i) to assure that fellowship grants
are made to economically disadvantaged
recent immigrants and students of migrant
parents;
‘‘(ii) to assure that every effort will be
made to ensure the participation of recent
immigrants and students of migrant par-
ents from rural and small town areas, as
well as from urban areas, and that in
awarding fellowships, special consideration
will be given to the participation of recent
immigrants and students of migrant par-
ents with special needs, including individ-
uals with disabilities, ethnic minorities, and
gifted and talented students;
298
‘‘(iii) that fully describe the activities
to be carried out with the proceeds of the
grant; and
‘‘(iv) to assure the proper disburse-
ment of the funds received under this sub-
section.
‘‘(e) GENERAL PROVISIONS.—
‘‘(1) ADMINISTRATIVE PROVISIONS.—
‘‘(A) GENERAL
RULE.—Payments under
this section may be made in installments, in ad-
vance, or by way of reimbursement, with nec-
essary adjustments on account of underpayment
or overpayment.
‘‘(B) AUDIT RULE.—The Comptroller Gen-
eral of the United States or any of the Comp-
troller General’s duly authorized representatives
shall have access for the purpose of audit and
examination to any books, documents, papers,
and records that are pertinent to any grant
under this section.
‘‘(f) LIMITATION.—Of the funds appropriated to
carry out this section under section 1002, the Secretary
may use not more than 30 percent to carry out subsection
(c) of this section.
299
‘‘SEC. 1504. DROPOUT REPORTING.
‘‘State educational agencies receiving funds under
this title shall annually report to the National Center on
Education Statistics (established under section 403 of the
National Education Statistics Act of 1994 (20 U.S.C.
9002)) on the dropout rate of students in the State, as
defined for the Center’s Common Core of Data.’’.
(b) CONTINUATION OF AWARDS.—Notwithstanding
any other provision of this Act, any person or agency that
was awarded a grant under part G of title X (20 U.S.C.
8161 et seq.) prior to the date of the enactment of this
Act shall continue to receive funds in accordance with the
terms of such award until the date on which the award
period terminates under such terms.
PART F—COMPREHENSIVE SCHOOL REFORM
SEC. 161. SCHOOL REFORM.
Part F of title I is amended to read as follows:
‘‘PART F—COMPREHENSIVE SCHOOL REFORM
‘‘SEC. 1601. COMPREHENSIVE SCHOOL REFORM.
‘‘(a) FINDINGS AND PURPOSE.—
‘‘(1) FINDINGS.—Congress finds the following:
‘‘(A) A number of schools across the coun-
try have shown impressive gains in student per-
formance through the use of comprehensive
models for schoolwide change that incorporate
virtually all aspects of school operations.
300
‘‘(B) No single comprehensive school re-
form model may be suitable for every school,
however, schools should be encouraged to exam-
ine successful, externally developed comprehen-
sive school reform approaches as they under-
take comprehensive school reform.
‘‘(C) Comprehensive school reform is an
important means by which children are assisted
in meeting challenging State student academic
achievement standards.
‘‘(2) PURPOSE.—The purpose of this section is
to provide financial incentives for schools to develop
comprehensive school reforms, based upon scientif-
ically-based research and effective practices that in-
clude an emphasis on basic academics and parental
involvement so that all children can meet challenging
State content and academic achievement standards.
‘‘(b) PROGRAM AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary is authorized
to provide grants to State educational agencies to
provide subgrants to local educational agencies to
carry out the purpose described in subsection (a)(2).
‘‘(2) ALLOCATION.—
301
‘‘(A) RESERVATION.—Of the amount ap-
propriated under this section, the Secretary
may reserve—
‘‘(i) not more than 1 percent for
schools supported by the Bureau of Indian
Affairs and in the United States Virgin Is-
lands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana
Islands;
‘‘(ii) not more than 1 percent to con-
duct national evaluation activities de-
scribed under subsection (e); and
‘‘(iii) not more than 2 percent of the
amount appropriated in fiscal year 2002 to
carry out this part, for quality initiatives
described under subsection (f).
‘‘(B) IN
GENERAL.—Of the amount of
funds remaining after the reservation under
subparagraph (A), the Secretary shall allocate
to each State for a fiscal year, an amount that
bears the same ratio to the remainder for that
fiscal year as the amount made available under
section 1124 to the State for the preceding fis-
cal year bears to the total amount allocated
under section 1124 to all States for that year.
302
‘‘(C) REALLOCATION.—If a State does not
apply for funds under this section, the Sec-
retary shall reallocate such funds to other
States that do apply in proportion to the
amount allocated to such States under subpara-
graph (B).
‘‘(c) STATE AWARDS.—
‘‘(1) STATE APPLICATION.—
‘‘(A) IN
GENERAL.—Each State edu-
cational agency that desires to receive a grant
under this section shall submit an application to
the Secretary at such time, in such manner and
containing such other information as the Sec-
retary may reasonably require.
‘‘(B) CONTENTS.—Each State application
shall also describe—
‘‘(i) the process and selection criteria
by which the State educational agency,
using expert review, will select local edu-
cational agencies to receive subgrants
under this section;
‘‘(ii) how the agency will ensure that
funds under this part are used only for
comprehensive school reform programs
that—
303
‘‘(I) include each of the compo-
nents described in subsection (d)(2);
‘‘(II) have the capacity to im-
prove the academic achievement of all
students in core academic subjects
within participating schools; and
‘‘(III) are supported by technical
assistance providers that have a suc-
cessful track record, financial sta-
bility, and the capacity to deliver
high-quality materials and profes-
sional development for school per-
sonnel.
‘‘(iii) how the agency will disseminate
materials regarding information on com-
prehensive school reforms that are based
on scientifically-based research and effec-
tive practices;
‘‘(iv) how the agency will evaluate an-
nually the implementation of such reforms
and measure the extent to which the re-
forms resulted in increased student aca-
demic performance; and
‘‘(v) how the agency will provide, tech-
nical assistance to the local educational
304
agency or consortia of local educational
agencies, and to participating schools, in
evaluating, developing, and implementing
comprehensive school reform.
‘‘(2) USES OF FUNDS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (E), a State educational agency
that receives an award under this section shall
use such funds to provide competitive grants to
local educational agencies or consortia of local
educational agencies in the State receiving
funds under part A to support comprehensive
school reforms in schools eligible for funds
under such part.
‘‘(B) GRANT REQUIREMENTS.—A grant to
a local educational agency or consortium shall
be—
‘‘(i) of sufficient size and scope to
support the initial costs of the comprehen-
sive school reforms selected or designed by
each school identified in the application of
the local educational agency or consortium;
‘‘(ii) in an amount not less than
$50,000 to each participating school; and
305
‘‘(iii) renewable for two additional 1-
year periods after the initial 1-year grant
is made if schools are making substantial
progress in the implementation of their re-
forms.
‘‘(C) PRIORITY.—The State, in awarding
grants under this paragraph, shall give priority
to local educational agencies that—
‘‘(i) plan to use the funds in schools
identified as being in need of improvement
or corrective action under section 1116(c);
or
‘‘(ii) demonstrate a commitment to
assist schools with budget allocation, pro-
fessional development, and other strategies
necessary to ensure the comprehensive
school reforms are properly implemented
and are sustained in the future.
‘‘(D) GRANT CONSIDERATION.—In making
subgrant awards under this part, the State edu-
cational agency shall take into account the equi-
table distribution of awards to different geo-
graphic regions within the State, including
urban and rural areas, and to schools serving
elementary and secondary students.
306
‘‘(E) ADMINISTRATIVE
COSTS.—A State
educational agency that receives a grant award
under this section may reserve not more than 5
percent of such award for administrative, eval-
uation, and technical assistance expenses.
‘‘(F) SUPPLEMENT.—Funds made avail-
able under this section shall be used to supple-
ment, not supplant, any other Federal, State,
or local funds that would otherwise be available
to carry out this section.
‘‘(3) 
REPORTING.—Each 
State 
educational
agency that receives an award under this section
shall provide to the Secretary such information as
the Secretary may require, including the names of
local educational agencies and schools selected to re-
ceive subgrant awards under this section, the
amount of such award, a description of the com-
prehensive school reforms selected and in use and a
copy of the State’s annual evaluation of the imple-
mentation of comprehensive school reforms sup-
ported under this part and student achievement re-
sults.
‘‘(d) LOCAL AWARDS.—
307
‘‘(1) IN
GENERAL.—Each local educational
agency or consortium that applies for a subgrant
under this section shall—
‘‘(A) identify which schools eligible for
funds under part A plan to implement a com-
prehensive school reform program, including the
projected costs of such a program;
‘‘(B) describe the comprehensive school re-
forms based on scientifically-based research and
effective practices that such schools will imple-
ment;
‘‘(C) describe how the agency or consor-
tium will provide technical assistance and sup-
port for the effective implementation of the
school reforms based on scientifically-based re-
search and effective practices selected by such
schools; and
‘‘(D) describe how the agency or consor-
tium will evaluate the implementation of such
reforms and measure the results achieved in im-
proving student academic performance.
‘‘(2) COMPONENTS OF THE PROGRAM.—A local
educational agency that receives a subgrant award
under this section shall provide such funds to
308
schools that implement a comprehensive school re-
form program that—
‘‘(A) employs proven strategies and proven
methods for student learning, teaching, and
school management that are based on scientif-
ically-based research and effective practices and
have been replicated successfully in similar
schools;
‘‘(B) integrates a comprehensive design for
effective school functioning, including instruc-
tion, assessment, classroom management, pro-
fessional development, parental involvement,
and school management, that aligns the school’s
curriculum, technology, and professional devel-
opment into a comprehensive reform plan for
schoolwide change designed to enable all stu-
dents to meet challenging State content and
challenging student performance standards and
addresses needs identified through a school
needs assessment;
‘‘(C) provides high-quality and continuous
teacher and staff professional development;
‘‘(D) includes measurable goals for student
performance and benchmarks for meeting such
goals;
309
‘‘(E) is supported by teachers, principals,
administrators, and other professional staff;
‘‘(F) provides for the meaningful involve-
ment of parents and the local community in
planning and implementing school improvement
activities;
‘‘(G) uses high quality external technical
support and assistance from an entity, which
may be an institution of higher education, with
experience and expertise in schoolwide reform
and improvement;
‘‘(H) includes a plan for the annual eval-
uation of the implementation of school reforms
and the student results achieved;
‘‘(I) identifies how other resources, includ-
ing Federal, State, local, and private resources,
available to the school will be used to coordinate
services to support and sustain the school re-
form effort; and
‘‘(J)(i) has been found, through rigorous
field experiments in multiple sites, to signifi-
cantly improve the academic performance of
students participating in such activity or pro-
gram as compared to similar students in similar
310
schools, who have not participated in such ac-
tivity or program; or
‘‘(ii) has been found to have strong evi-
dence that such model will significantly improve
the performance of participating children.
‘‘(3) SPECIAL
RULE.—A school that receives
funds to develop a comprehensive school reform pro-
gram shall not be limited to using nationally avail-
able approaches, but may develop its own com-
prehensive school reform program for schoolwide
change that complies with paragraph (2).
‘‘(e) EVALUATION AND REPORT.—
‘‘(1) IN GENERAL.—The Secretary shall develop
a plan for a national evaluation of the programs de-
veloped pursuant to this section.
‘‘(2) EVALUATION.—This national evaluation
shall evaluate the implementation and results
achieved by schools after 3 years of implementing
comprehensive school reforms, and assess the effec-
tiveness of comprehensive school reforms in schools
with diverse characteristics.
‘‘(3) REPORTS.—Prior to the completion of a
national evaluation, the Secretary shall submit an
interim report outlining first year implementation
activities to the Committees on Education and the
311
Workforce and Appropriations of the House of Rep-
resentatives and the Committees on Health, Edu-
cation, Labor, and Pensions and Appropriations of
the Senate.
‘‘(f) QUALITY INITIATIVES.—The Secretary, through
grants or contracts, shall provide funds for the following
activities:
‘‘(1) TECHNICAL ASSISTANCE.—A joint public
and private partnership that receives matching funds
from private organizations, in order to assist States,
local educational agencies, and schools in making in-
formed decisions when approving or selecting pro-
viders of comprehensive school reform, consistent
with the requirements described in subsection (d)(3).
‘‘(2) 
OTHER
ACTIVITIES.—Other 
activities
that—
‘‘(A) encourage the development of com-
prehensive reform models;
‘‘(B) build the capacity of comprehensive
school reform providers to increase the number
of schools the providers can serve; and
‘‘(C) ensure that schools served receive
high quality services that meet the needs of
their teachers and students.’’.
312
PART G—RURAL EDUCATION FLEXIBILITY AND
ASSISTANCE
SEC. 171. RURAL EDUCATION.
Title I is amended by adding at the end the following
new part:
‘‘PART G—RURAL EDUCATION FLEXIBILITY AND
ASSISTANCE
‘‘SEC. 1701. SHORT TITLE.
‘‘This part may be cited as the ‘Rural Education Ini-
tiative Act’.
‘‘SEC. 1702. FINDINGS.
‘‘Congress finds the following:
‘‘(1) While there are rural education initiatives
identified at the State and local level, no Federal
education policy focuses on the specific and unique
needs of rural school districts and schools.
‘‘(2) Small school districts often cannot use
Federal grant funds distributed by formula because
the formula allocation does not provide enough rev-
enue to carry out the program the grant is intended
to fund.
‘‘(3) Rural schools often cannot compete for
Federal funding distributed by competitive grants
because the schools lack the personnel needed to
prepare grant applications and the resources to hire
specialists in the writing of Federal grant proposals.
313
‘‘(4) A critical problem for rural school districts
involves the hiring and retention of qualified admin-
istrators and certified teachers (especially in read-
ing, science, and mathematics). As a result, teachers
in rural schools are almost twice as likely to provide
instruction in three or more subject areas than
teachers in urban schools. Rural schools also face
other tough challenges, such as shrinking local tax
bases, high transportation costs, aging buildings,
limited course offerings, and limited resources.
‘‘Subpart 1—Rural Education Flexibility
‘‘SEC. 1711. FORMULA GRANT PROGRAM AUTHORIZED.
‘‘(a) ALTERNATIVE USES.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, an eligible local educational agency
may use the applicable funding, that the agency is
eligible to receive from the State educational agency
for a fiscal year, to carry out local activities author-
ized in part A of title I, part A of title II, part A
of title III, part A of title IV, or part A or B of title
V.
‘‘(2) NOTIFICATION.—An eligible local edu-
cational agency shall notify the State educational
agency of the local educational agency’s intention to
use the applicable funding in accordance with para-
314
graph (1) not later than a date that is established
by the State educational agency for the notification.
‘‘(b) ELIGIBILITY.—
‘‘(1) IN GENERAL.—A local educational agency
shall be eligible to use the applicable funding in ac-
cordance with subsection (a) if—
‘‘(A)(i) the total number of students in av-
erage daily attendance at all of the schools
served by the local educational agency is less
than 600; and
‘‘(ii) all of the schools served by the local
educational agency are designated with a school
locale code of 7 or 8 as determined by the Sec-
retary of Education; or
‘‘(B) the agency meets the criteria estab-
lished in subparagraph (A)(i) and the Sec-
retary, in accordance with paragraph (2),
grants the local educational agency’s request to
waive the criteria described in subparagraph
(A)(ii).
‘‘(2) CERTIFICATION.—The Secretary shall de-
termine whether or not to waive the criteria de-
scribed in paragraph (1)(A)(ii) based on a dem-
onstration by a local educational agency and concur-
rence by the State educational agency that the local
315
educational agency is located in an area defined as
rural by a governmental agency of the State.
‘‘(c) APPLICABLE FUNDING.—In this section, the
term ‘applicable funding’ means funds provided under
part A of title II, section 3106, part A of title IV, subpart
1 of part A of title V, and section 5212(a)(2)(A).
‘‘(d) DISBURSEMENT.—Each State educational agen-
cy that receives applicable funding for a fiscal year shall
disburse the applicable funding to local educational agen-
cies for alternative uses under this section for the fiscal
year at the same time that the State educational agency
disburses the applicable funding to local educational agen-
cies that do not intend to use the applicable funding for
such alternative uses for the fiscal year.
‘‘(e) SUPPLEMENT NOT SUPPLANT.—Funds used
under this section shall be used to supplement and not
supplant any other Federal, State, or local education
funds that would otherwise be available for the purpose
of this subpart.
‘‘(f) APPLICABLE RULE.—Except as otherwise pro-
vided in this subpart, funds transferred under this subpart
are subject to each of the rules and requirements applica-
ble to the funds allocated by the Secretary under the provi-
sion to which the transferred funds are transferred.
316
‘‘SEC. 1712. PROGRAM AUTHORIZED.
‘‘(a) IN GENERAL.—The Secretary is authorized to
award grants to eligible local educational agencies under
section 1711(b) to enable the local educational agencies
to support local or statewide education reform efforts in-
tended to improve the academic achievement of elementary
school and secondary school students and the quality of
instruction provided for the students.
‘‘(b) ALLOCATION.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), the Secretary shall award a grant to an
eligible local educational agency under section
1711(b) for a fiscal year in an amount equal to the
initial amount determined under paragraph (2) for
the fiscal year minus the total amount received
under the provisions of law described under section
1711(c) for the preceding fiscal year.
‘‘(2) 
DETERMINATION
OF
THE
INITIAL
AMOUNT.—The initial amount referred to in para-
graph (1) is equal to $100 multiplied by the total
number of students, over 50 students, in average
daily attendance in such eligible agency plus
$20,000, except that the initial amount may not ex-
ceed $60,000.
‘‘(3) RATABLE ADJUSTMENT.—
319
educational agency that receives funding under the provi-
sions of law described in section 1711(c) shall—
‘‘(1) after the second year that a local edu-
cational agency participates in a program under sec-
tion 1711 or 1712 and on the basis of the results
of the assessments described in subsection (a), deter-
mine whether the schools served by the local edu-
cational agency participating in the program per-
formed in accordance with section 1111; and
‘‘(2) only permit those local educational agen-
cies that so participated and make adequate yearly
progress, as described in section 1111(b)(2), to con-
tinue to so participate.
‘‘Subpart 2—Rural Education Assistance
‘‘SEC. 1721. PROGRAM AUTHORIZED.
‘‘(a) RESERVATIONS.—From amounts appropriated
under section 1002(f) for this subpart for a fiscal year,
the Secretary shall reserve 1⁄2 of 1 percent to make awards
to elementary or secondary schools operated or supported
by the Bureau of Indian Affairs to carry out the purpose
of this subpart.
‘‘(b) GRANTS TO STATES.—
‘‘(1) IN
GENERAL.—From amounts appro-
priated under section 1002(f) for this subpart that
are not reserved under subsection (a), the Secretary
320
shall award grants for a fiscal year to State edu-
cational agencies that have applications approved
under section 1723 to enable the State educational
agencies to award subgrants to eligible local edu-
cational agencies for local authorized activities de-
scribed in subsection (c)(2).
‘‘(2) 
ALLOCATION.—From 
amounts 
appro-
priated for this subpart, the Secretary shall allocate
to each State educational agency for a fiscal year an
amount that bears the same ratio to the amount of
funds appropriated under section 1002(f) for this
subpart that are not reserved under subsection (a)
as the number of students in average daily attend-
ance served by eligible local educational agencies in
the State bears to the number of all such students
served by eligible local educational agencies in all
States for that fiscal year.
‘‘(3) DIRECT
AWARDS
TO
SPECIALLY
QUALI-
FIED AGENCIES.—
‘‘(A) NONPARTICIPATING
STATE.—If a
State educational agency elects not to partici-
pate in the program under this subpart or does
not have an application approved under section
1723 a specially qualified agency in such State
desiring a grant under this subpart shall submit
321
an application under such section directly to the
Secretary to receive an award under this sub-
part.
‘‘(B) DIRECT
AWARDS
TO
SPECIALLY
QUALIFIED
AGENCIES.—The Secretary may
award, on a competitive basis, the amount the
State educational agency is eligible to receive
under paragraph (2) directly to specially quali-
fied agencies in the State.
‘‘(c) LOCAL AWARDS.—
‘‘(1) ELIGIBILITY.—A local educational agency
shall be eligible to receive funds under this subpart
if—
‘‘(A) 20 percent or more of the children
aged 5 to 17, inclusive, served by the local edu-
cational agency are from families with incomes
below the poverty line; and
‘‘(B) all of the schools served by the agen-
cy are designated with a school code of 6, 7, or
8 as determined by the Secretary of Education.
‘‘(2) USES OF FUNDS.—Grant funds awarded
to local educational agencies or made available to
schools under this subpart shall be used for—
322
‘‘(A) teacher recruitment and retention, in-
cluding the use of signing bonuses and other fi-
nancial incentives;
‘‘(B) teacher professional development, in-
cluding programs that train teachers to utilize
technology to improve teaching and to train
special needs teachers;
‘‘(C) educational technology, including
software and hardware as described in part B
of title V;
‘‘(D) parental involvement activities; or
‘‘(E) programs to improve student aca-
demic achievement.
‘‘SEC. 1722. STATE DISTRIBUTION OF FUNDS.
‘‘(a) AWARD BASIS.—A State educational agency
shall award grants to eligible local educational agencies—
‘‘(1) on a competitive basis; or
‘‘(2) according to a formula based on the num-
ber of students in average daily attendance served
by the eligible local educational agencies or schools
(as appropriate) in the State, as determined by the
State.
‘‘(b) ADMINISTRATIVE COSTS.—A State educational
agency receiving a grant under this subpart may not use
323
more than 5 percent of the amount of the grant for State
administrative costs.
‘‘SEC. 1723. APPLICATIONS.
‘‘Each State educational agency and specially quali-
fied agency desiring to receive a grant under this subpart
shall submit an application to the Secretary at such time,
in such manner, and accompanied by such information as
the Secretary may require. Such application shall include
specific measurable goals and objectives relating to in-
creased student academic achievement, decreased student
dropout rates, or such other factors that the State edu-
cational agency or specially qualified agency may choose
to measure.
‘‘SEC. 1724. REPORTS.
‘‘(a) STATE
REPORTS.—Each State educational
agency that receives a grant under this subpart shall pro-
vide an annual report to the Secretary. The report shall
describe—
‘‘(1) the method the State educational agency
used to award grants to eligible local educational
agencies and to provide assistance to schools under
this subpart;
‘‘(2) how local educational agencies and schools
used funds provided under this subpart; and
324
‘‘(3) the degree to which progress has been
made toward meeting the goals and objectives de-
scribed in the application submitted under section
1723.
‘‘(b) SPECIALLY QUALIFIED AGENCY REPORT.—
Each specially qualified agency that receives a grant under
this subpart shall provide an annual report to the Sec-
retary. Such report shall describe—
‘‘(1) how such agency uses funds provided
under this subpart; and
‘‘(2) the degree to which progress has been
made toward meeting the goals and objectives de-
scribed in the application submitted under section
1723.
‘‘(c) REPORT TO CONGRESS.—The Secretary shall
prepare and submit to the Committee on Education and
the Workforce for the House of Representatives and the
Committee on Health, Education, Labor, and Pensions for
the Senate an annual report. The report shall describe—
‘‘(1) the methods the State educational agency
used to award grants to eligible local educational
agencies and to provide assistance to schools under
this subpart;
‘‘(2) how eligible local educational agencies and
schools used funds provided under this subpart; and
325
‘‘(3) progress made in meeting specific measur-
able educational goals and objectives.
‘‘SEC. 1725. PERFORMANCE REVIEW.
‘‘Three years after a State educational agency or spe-
cially qualified agency receives funds under this part, the
Secretary shall review the progress of such agency toward
achieving the goals and objectives included in its applica-
tion, to determine whether the agency has made progress
toward meeting such goals and objectives. To review the
performance of each agency, the Secretary shall—
‘‘(1) review the use of funds of such agency
under section 1721(c)(2); and
‘‘(2) deny the provision of additional funds in
subsequent fiscal years to an agency only if the Sec-
retary determines, after notice and an opportunity
for a hearing, that the agency’s use of funds has
been inadequate to justify continuation of such fund-
ing.
‘‘SEC. 1726. DEFINITIONS.
‘‘In this subpart—
‘‘(1) The term ‘poverty line’ means the poverty
line (as defined by the Office of Management and
Budget, and revised annually in accordance with sec-
tion 673(2) of the Community Services Block Grant
326
Act (42 U.S.C. 9902(2))) applicable to a family of
the size involved.
‘‘(2) The term ‘specially qualified agency’
means an eligible local educational agency, located in
a State that does not participate in a program under
this subpart in a fiscal year, that may apply directly
to the Secretary for a grant in such year under sec-
tion 1721(b)(3)(A).
‘‘Subpart 3—General Provisions
‘‘SEC. 1731. DEFINITION.
‘‘In this part, the term ‘State’ means each of the 50
States, the District of Columbia, and the Commonwealth
of Puerto Rico.’’.
PART H—GENERAL PROVISIONS OF TITLE I
SEC. 181. GENERAL PROVISIONS.
Title I is amended further by adding at the end the
following:
‘‘PART H—GENERAL PROVISIONS
‘‘SEC. 1801. FEDERAL REGULATIONS.
‘‘(a) IN GENERAL.—The Secretary is authorized to
issue such regulations as are necessary to ensure reason-
able compliance with this title.
‘‘(b) NEGOTIATED RULEMAKING PROCESS.—
‘‘(1) IN GENERAL.—Prior to publishing in the
Federal Register proposed regulations to carry out
327
this title, the Secretary shall obtain the advice and
recommendations of representatives of Federal,
State, and local administrators, parents, teachers,
paraprofessionals, and members of local boards of
education involved with the implementation and op-
eration of programs under this title.
‘‘(2) 
MEETINGS
AND
ELECTRONIC
EX-
CHANGE.—Such advice and recommendation may be
obtained through such mechanisms as regional meet-
ings and electronic exchanges of information.
‘‘(3) PROPOSED REGULATIONS.—After obtain-
ing such advice and recommendations, and prior to
publishing proposed regulations, the Secretary
shall—
‘‘(A) establish a negotiated rulemaking
process on a minimum of three key issues,
including—
‘‘(i) accountability;
‘‘(ii) implementation of assessments;
and
‘‘(iii) use of paraprofessionals;
‘‘(B) select individuals to participate in
such process from among individuals or groups
which provided advice and recommendations, in-
328
cluding representation from all geographic re-
gions of the United States; and
‘‘(C) prepare a draft of proposed regula-
tions that shall be provided to the individuals
selected by the Secretary under subparagraph
(B) not less than 15 days prior to the first
meeting under such process.
‘‘(4) PROCESS.—Such process—
‘‘(A) shall be conducted in a timely manner
to ensure that final regulations are issued by
the Secretary not later than 1 year after the
date of the enactment of the No Child Left Be-
hind Act of 2001; and
‘‘(B) shall not be subject to the Federal
Advisory Committee Act but shall otherwise fol-
low the provisions of the Negotiated Rule-
making Act of 1990 (5 U.S.C. 561 et seq.).
‘‘(5) EMERGENCY
SITUATION.—In an emer-
gency situation in which regulations to carry out this
title must be issued within a very limited time to as-
sist State and local educational agencies with the op-
eration of a program under this title, the Secretary
may issue proposed regulations without following
such process but shall, immediately thereafter and
329
prior to issuing final regulations, conduct regional
meetings to review such proposed regulations.
‘‘(c) LIMITATION.—Regulations to carry out this part
may not require local programs to follow a particular in-
structional model, such as the provision of services outside
the regular classroom or school program.
‘‘SEC. 1802. AGREEMENTS AND RECORDS.
‘‘(a) AGREEMENTS.—All published proposed regula-
tions shall conform to agreements that result from nego-
tiated rulemaking described in section 1801 unless the
Secretary reopens the negotiated rulemaking process or
provides a written explanation to the participants involved
in the process explaining why the Secretary decided to de-
part from and not adhere to such agreements.
‘‘(b) RECORDS.—The Secretary shall ensure that an
accurate and reliable record of agreements reached during
the negotiations process is maintained.
‘‘SEC. 1803. STATE ADMINISTRATION.
‘‘(a) RULEMAKING.—
‘‘(1) IN GENERAL.—Each State that receives
funds under this title shall—
‘‘(A) ensure that any State rules, regula-
tions, and policies relating to this title conform
to the purposes of this title and provide any
such proposed rules, regulations, and policies to
330
the committee of practitioners under subsection
(b) for their review and comment;
‘‘(B) minimize such rules, regulations, and
policies to which their local educational agencies
and schools are subject;
‘‘(C) eliminate or modify State and local
fiscal accounting requirements in order to facili-
tate the ability of schools to consolidate funds
under schoolwide programs; and
‘‘(D) identify any such rule, regulation, or
policy as a State-imposed requirement.
‘‘(2) 
SUPPORT
AND
FACILITATION.—State
rules, regulations, and policies under this title shall
support and facilitate local educational agency and
school-level systemic reform designed to enable all
children to meet the challenging State student aca-
demic achievement standards.
‘‘(b) COMMITTEE OF PRACTITIONERS.—
‘‘(1) IN
GENERAL.—Each State educational
agency shall create a State committee of practi-
tioners to advise the State in carrying out its re-
sponsibilities under this title.
‘‘(2) 
MEMBERSHIP.—Each 
such 
committee
shall include—
331
‘‘(A) as a majority of its members, rep-
resentatives from local educational agencies;
‘‘(B) administrators, including the admin-
istrators of programs described in other parts
of this title;
‘‘(C) teachers, including vocational edu-
cators;
‘‘(D) parents;
‘‘(E) members of local boards of education;
‘‘(F) representatives of private school chil-
dren; and
‘‘(G) pupil services personnel.
‘‘(3) DUTIES.—The duties of such committee
shall include a review, prior to publication, of any
proposed or final State rule or regulation pursuant
to this title. In an emergency situation where such
rule or regulation must be issued within a very lim-
ited time to assist local educational agencies with
the operation of the program under this title, the
State educational agency may issue a regulation
without prior consultation, but shall immediately
thereafter convene the State committee of practi-
tioners to review the emergency regulation prior to
issuance in final form.
332
‘‘SEC. 1804. LOCAL ADMINISTRATIVE COST LIMITATION.
‘‘(a) LOCAL ADMINISTRATIVE COST LIMITATION.—
Each local educational agency may use not more than 4
percent of funds received under part A for administrative
expenses.
‘‘(b) REGULATIONS.—The Secretary, after consulting
with State and local officials and other experts in school
finance, shall develop and issue regulations that define the
term administrative cost for purposes of this title. Such
definition shall be consistent with generally accepted ac-
counting principles. The Secretary shall publish final regu-
lations on this section not later than 1 year after the date
of the enactment of the No Child Left Behind Act of 2001.
‘‘SEC. 1805. APPLICABILITY.
‘‘Nothing in this title shall be construed to affect
home schools nor shall any home schooled student be re-
quired to participate in any assessment referenced in this
title.
‘‘SEC. 1806. PRIVATE SCHOOLS.
‘‘Nothing in this title shall be construed to affect any
private school that does not receive funds or services under
this title, nor shall any student who attends a private
school that does not receive funds or services under this
title be required to participate in any assessment ref-
erenced in this title.
333
‘‘SEC. 1807. PRIVACY OF ASSESSMENT RESULTS.
‘‘Any results from individual assessments referenced
in this title which become part of the education records
of the student shall have the protections as provided in
section 444 of the General Education Provisions Act.’’.
TITLE 
II—PREPARING, 
TRAIN-
ING, AND RECRUITING QUAL-
ITY TEACHERS
SEC. 201. TEACHER QUALITY TRAINING AND RECRUITING
FUND.
Title II (20 U.S.C. 6601 et seq.) is amended to read
as follows:
‘‘TITLE II—PREPARING, TRAIN-
ING, AND RECRUITING QUAL-
ITY TEACHERS
‘‘PART A—TEACHER QUALITY TRAINING AND
RECRUITING FUND
‘‘SEC. 2001. PURPOSE.
‘‘The purpose of this part is to provide grants to
States and local educational agencies in order to assist
their efforts to increase student academic achievement
through such strategies as improving teacher and prin-
cipal quality and increasing the number of highly qualified
teachers in the classroom.
334
‘‘Subpart 1—Grants to States to Prepare, Train, and
Recruit Qualified Teachers
‘‘SEC. 2011. FORMULA GRANTS TO STATES.
‘‘(a) IN GENERAL.—In the case of each State that
in accordance with section 2013 submits to the Secretary
an application for a fiscal year, the Secretary shall make
a grant for the year to the State for the uses specified
in section 2012. The grant shall consist of the allotment
determined for the State under subsection (b).
‘‘(b) DETERMINATION
OF
AMOUNT
OF
ALLOT-
MENTS.—
‘‘(1) RESERVATION
OF
FUNDS.—From the
amount made available to carry out this subpart for
any fiscal year, the Secretary shall reserve—
‘‘(A) 1⁄2 of 1 percent for allotments for the
Virgin Islands, Guam, American Samoa, and
the Commonwealth of the Northern Mariana Is-
lands, to be distributed among these outlying
areas on the basis of their relative need, as de-
termined by the Secretary in accordance with
the purpose of this part; and
‘‘(B) 1⁄2 of 1 percent for the Secretary of
the Interior for programs under this subpart
for professional development activities for
teachers, other staff, and administrators in
335
schools operated or funded by the Bureau of In-
dian Affairs.
‘‘(2) STATE ALLOTMENTS.—
‘‘(A) HOLD HARMLESS.—
‘‘(i) IN
GENERAL.—Subject to sub-
paragraph (B), from the total amount
made available to carry out this subpart
for any fiscal year and not reserved under
paragraph (1), the Secretary shall allot to
each of the 50 States, the District of Co-
lumbia, and the Commonwealth of Puerto
Rico an amount equal to the total amount
that such State received for fiscal year
2001 under—
‘‘(I) section 2202(b) of this Act
(as in effect on the day before the
date of the enactment of the No Child
Left Behind Act of 2001); and
‘‘(II) section 306 of the Depart-
ment of Education Appropriations
Act, 2001 (as enacted into law by sec-
tion 1(a)(1) of Public Law 106–554).
‘‘(ii) NONPARTICIPATING STATES.—In
the case of a State that did not receive any
funds for fiscal year 2001 under one or
336
both of the provisions referred to in sub-
clauses (I) and (II) of clause (i), the
amount allotted to the State under such
clause shall be the total amount that the
State would have received for fiscal year
2001 if it had elected to participate in all
of the programs for which it was eligible
under each of the provisions referred to in
such subclauses.
‘‘(iii) RATABLE
REDUCTION.—If the
total amount made available to carry out
this subpart for any fiscal year and not re-
served under paragraph (1) is insufficient
to pay the full amounts that all States are
eligible to receive under clause (i) for any
fiscal year, the Secretary shall ratably re-
duce such amounts for such fiscal year.
‘‘(B) 
ALLOTMENT
OF
ADDITIONAL
FUNDS.—
‘‘(i) IN GENERAL.—Subject to clause
(ii), for any fiscal year for which the total
amount made available to carry out this
subpart and not reserved under paragraph
(1) exceeds the total amount required to
make allotments under subparagraph (A),
337
the Secretary shall allot such excess
amount among the 50 States, the District
of Columbia, and the Commonwealth of
Puerto Rico as follows:
‘‘(I) 50 percent of such excess
amount shall be allotted among such
States on the basis of their relative
populations of individuals aged 5
through 17, as determined by the Sec-
retary on the basis of the most recent
satisfactory data.
‘‘(II) 50 percent of such excess
amount shall be allotted among such
States in proportion to the number of
children, aged 5 to 17, who reside
within the State from families with in-
comes below the poverty line (as de-
fined 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)) applicable to a
family of the size involved for the
most recent fiscal year for which sat-
isfactory data are available, compared
338
to the number of such individuals who
reside in all such States for that fiscal
year.
‘‘(ii) EXCEPTION.—No State receiving
an allotment under clause (i) may receive
less than 1⁄2 of 1 percent of the total ex-
cess amount allotted under such clause.
‘‘(3) REALLOTMENT.—If any State does not
apply for an allotment under this subsection for any
fiscal year, the Secretary shall reallot such amount
to the remaining States in accordance with this sub-
section.
‘‘SEC. 2012. WITHIN-STATE ALLOCATIONS.
‘‘(a) USE OF FUNDS.—Each State receiving a grant
under this subpart shall use the funds provided under the
grant in accordance with this section to carry out activities
for the improvement of teaching and learning.
‘‘(b) RESERVATION OF FUNDS.—
‘‘(1) IN
GENERAL.—A State that receives a
grant under this subpart may reserve not more than
5 percent of the amount of the funds provided under
the grant for—
‘‘(A) one or more of the authorized State
activities described in subsection (e); and
339
‘‘(B) planning and administration related
to carrying out such activities and making sub-
grants to local educational agencies under sub-
parts 2 and 3.
‘‘(2) LIMITATION ON ADMINISTRATIVE COSTS.—
The amount reserved by a State under paragraph
(1)(B) may not exceed 1 percent of the amount of
the funds provided under the grant.
‘‘(c) SUBGRANTS TO LOCAL EDUCATIONAL AGEN-
CIES.—
‘‘(1) IN GENERAL.—The Secretary may make a
grant to a State under this subpart only if the State
agrees to distribute the funds described in this sub-
section as subgrants to local educational agencies
under subpart 3.
‘‘(2) HOLD HARMLESS.—
‘‘(A) IN GENERAL.—From the funds that
a State receives under this subpart for any fis-
cal year that are not reserved under subsection
(b), the State shall allot to each local edu-
cational agency an amount equal to the total
amount that such agency received for fiscal
year 2001 under—
‘‘(i) section 2203(1)(B) of this Act (as
in effect on the day before the date of the
340
enactment of the No Child Left Behind
Act of 2001); and
‘‘(ii) section 306 of the Department of
Education Appropriations Act, 2001 (as
enacted into law by section 1(a)(1) of Pub-
lic Law 106–554).
‘‘(B) NONPARTICIPATING
AGENCIES.—In
the case of a local educational agency that did
not receive any funds for fiscal year 2001 under
one or both of the provisions referred to in
clauses (i) and (ii) of subparagraph (A), the
amount allotted to the agency under such sub-
paragraph shall be the total amount that the
agency would have received for fiscal year 2001
if it had elected to participate in all of the pro-
grams for which it was eligible under each of
the provisions referred to in such clauses.
‘‘(C) RATABLE REDUCTION.—If the funds
described in subparagraph (A) are insufficient
to pay the full amounts that all local edu-
cational agencies are eligible to receive under
such subparagraph for any fiscal year, the
State shall ratably reduce such amounts for
such fiscal year.
‘‘(3) ALLOTMENT OF ADDITIONAL FUNDS.—
341
‘‘(A) IN
GENERAL.—For any fiscal year
for which the funds that a State receives under
this subpart that are not reserved under sub-
section (b) exceed the total amount required to
make allotments under paragraph (2), the State
shall distribute the amount described in sub-
paragraph (B) through a formula under
which—
‘‘(i) 20 percent is allocated to local
educational agencies in accordance with
the relative enrollment in public and pri-
vate nonprofit elementary and secondary
schools within the boundaries of such
agencies; and
‘‘(ii) 80 percent is allocated to local
educational agencies in proportion to the
number of children, aged 5 to 17, who re-
side within the geographic area served by
such agency from families with incomes
below the poverty line (as defined by the
Office of Management and Budget and re-
vised annually in accordance with section
673(2) of the Community Services Block
Grant Act (42 U.S.C. 9902(2))) applicable
to a family of the size involved for the
342
most recent fiscal year for which satisfac-
tory data are available, compared to the
number of such individuals who reside in
the geographic areas served by all the local
educational agencies in the State for that
fiscal year.
‘‘(B) CALCULATION OF AMOUNT.—
‘‘(i) IN GENERAL.—The amount de-
scribed in this subparagraph for a State
for any fiscal year is the base amount for
such State and year, plus any additional
amount for such State and year.
‘‘(ii) BASE AMOUNT.—For purposes of
this subparagraph, the term ‘base amount’
means 50 percent of the funds that remain
to a State after a State makes the reserva-
tions described in subsection (b) and the
allotments described in paragraph (2).
‘‘(iii) 
ADDITIONAL
AMOUNT.—For
purposes of this subparagraph, the term
‘additional amount’ means the amount (if
any) by which the base amount for a State
exceeds the maximum amount described in
subsection (d)(2)(B).
‘‘(d) MATH AND SCIENCE PARTNERSHIPS.—
343
‘‘(1) IN GENERAL.—The Secretary may make a
grant to a State under this subpart only if the State
agrees to distribute the amount described in para-
graph (2) through a competitive subgrant process in
accordance with subpart 2.
‘‘(2) AMOUNT DESCRIBED.—
‘‘(A) IN GENERAL.—The amount described
in this paragraph for a State for any fiscal year
is 50 percent of the funds that the State re-
ceives under this subpart for the year that re-
main after the State makes the reservations de-
scribed in subsection (b) and the allotments de-
scribed in subsection (c)(2).
‘‘(B) LIMITATION.—In no case may the
amount described in this paragraph exceed a
maximum amount calculated by multiplying the
total amount of the funds that a State receives
under this subpart for a fiscal year that the
State does not reserve under subsection (b) by
a percentage, selected by the State, that shall
be not less than 15 nor more than 20 percent.
‘‘(e) AUTHORIZED STATE ACTIVITIES.—The author-
ized State activities referred to in subsection (b)(1)(A) are
the following:
344
‘‘(1) Reforming teacher certification, recertifi-
cation, or licensure requirements to ensure that—
‘‘(A) teachers have the necessary teaching
skills and academic content knowledge in the
subject areas in which they are assigned to
teach;
‘‘(B) teacher certification, recertification,
or licensure requirements are aligned with the
State’s challenging State academic content
standards; and
‘‘(C) teachers have the knowledge and
skills necessary to help students meet chal-
lenging State student achievement standards.
‘‘(2) Carrying out programs that—
‘‘(A) include support during the initial
teaching or leadership experience, such as men-
toring programs that—
‘‘(i) provide—
‘‘(I) 
mentoring 
to 
beginning
teachers from veteran teachers with
expertise in the same subject matter
that the beginning teachers will be
teaching; or
‘‘(II) similar mentoring to prin-
cipals or superintendents;
345
‘‘(ii) provide mentors time for activi-
ties such as coaching, observing, and as-
sisting the teachers or school leaders who
are mentored; and
‘‘(iii) use standards or assessments
for guiding beginning teachers that are
consistent with the State’s student achieve-
ment standards and with the requirements
for 
professional 
development 
activities
under section 2033; and
‘‘(B) establish, expand, or improve alter-
native routes to State certification of teachers,
especially in the areas of mathematics and
science, for highly qualified individuals with a
baccalaureate degree, including mid-career pro-
fessionals from other occupations, paraprofes-
sionals, former military personnel, and recent
college or university graduates with records of
academic distinction who demonstrate the po-
tential to become highly effective teachers.
‘‘(3) Developing and implementing effective
mechanisms to assist local educational agencies and
schools in effectively recruiting and retaining highly
qualified and effective teachers and principals.
346
‘‘(4) Reforming tenure systems and imple-
menting teacher testing and other procedures to ex-
peditiously remove ineffective teachers from the
classroom.
‘‘(5) Developing enhanced performance systems
to measure the effectiveness of specific professional
development programs and strategies.
‘‘(6) Providing technical assistance to local edu-
cational agencies consistent with this part.
‘‘(7) Funding projects to promote reciprocity of
teacher certification or licensure between or among
States, except that no reciprocity agreement devel-
oped under this paragraph or developed using funds
provided under this part may lead to the weakening
of any State teaching certification or licensing re-
quirement.
‘‘(8) Developing or assisting local educational
agencies in the development and utilization of prov-
en, innovative strategies to deliver intensive profes-
sional development programs that are both cost-ef-
fective and easily accessible, such as through the use
of technology and distance learning.
‘‘(9) Providing assistance to local educational
agencies for the development and implementation of
innovative professional development programs that
347
train teachers to use technology to improve teaching
and learning and are consistent with the require-
ments of section 2033.
‘‘(10) Developing or assisting local educational
agencies in developing merit-based performance sys-
tems, rigorous assessments for teachers, and strate-
gies which provide differential and bonus pay for
teachers in high-need subject areas such as reading,
math, and science and in high-poverty schools and
districts.
‘‘(11) Providing assistance to local educational
agencies for the development and implementation of
professional development programs for principals
that enable them to be effective school leaders and
prepare all students to achieve challenging State
content and student achievement standards, includ-
ing the development and support of school leadership
academies to help exceptionally talented aspiring or
current principals and superintendents become out-
standing managers and educational leaders.
‘‘(12) Developing, or assisting local educational
agencies in developing, teacher advancement initia-
tives that promote professional growth and empha-
size multiple career paths (such as career teacher,
348
mentor teacher, and master teacher) and pay dif-
ferentiation.
‘‘(f) COORDINATION.—States receiving grants under
section 202 of the Higher Education Act of 1965 shall
coordinate the use of such funds with activities carried out
under this section.
‘‘SEC. 2013. APPLICATIONS BY STATES.
‘‘(a) IN GENERAL.—To be eligible to receive a grant
under this subpart, a State shall submit an application
to the Secretary at such time, in such manner, and con-
taining such information as the Secretary may reasonably
require.
‘‘(b) CONTENTS.—Each application under this sec-
tion shall include the following:
‘‘(1) A description of how the State will ensure
that a local educational agency receiving a subgrant
under subpart 3 will comply with the requirements
of such subpart.
‘‘(2) A description of how the State will use
funds under this part to meet the requirements of
section 1119(a)(2).
‘‘(3) A description of how the State will coordi-
nate professional development activities authorized
under this part with professional development activi-
ties provided under other Federal, State, and local
349
programs, including those authorized under title I,
part A of title III, parts A and B of title V, and
(where applicable) the Individuals with Disabilities
Education Act and the Carl D. Perkins Vocational
and Technical Education Act. The application shall
also describe the comprehensive strategy that the
State will take as part of such coordination effort,
to ensure that teachers are trained in the utilization
of technology so that technology and its applications
are effectively used in the classroom to improve
teaching and learning in all curriculum and content
areas, as appropriate.
‘‘(4) A description of how the State will encour-
age the development of proven, innovative strategies
to deliver intensive professional development pro-
grams that are both cost-effective and easily acces-
sible, such as through the use of technology and dis-
tance learning.
‘‘(5) A description of how the State will ensure
that local educational agencies will comply with the
requirements under section 2033, especially with re-
spect to ensuring the participation of teachers, prin-
cipals, and parents.
‘‘(c) APPLICATION APPROVAL.—A State application
submitted to the Secretary under this section shall be
350
deemed approved by the Secretary unless the Secretary
makes a written determination, within 90 days after re-
ceiving the application, that the application is in violation
of the provisions of this subpart. The Secretary shall not
finally disapprove a State application except after giving
the State notice and opportunity for a hearing.
‘‘Subpart 2—Math and Science Partnerships
‘‘SEC. 2021. PURPOSE.
‘‘The purpose of this subpart is to improve the
achievement of students in the areas of mathematics and
science by encouraging States, institutions of higher edu-
cation, and local educational agencies to participate in
programs that—
‘‘(1) focus on education and training of mathe-
matics and science teachers that improves teachers’
knowledge and skills and encourages intellectual
growth;
‘‘(2) improve mathematics and science teaching
by encouraging institutions of higher education to
assume greater responsibility for improving mathe-
matics and science teacher education through the es-
tablishment of a comprehensive, integrated system of
recruiting, training, and advising such teachers; and
‘‘(3) bring mathematics and science teachers in
elementary and secondary schools together with sci-
351
entists, mathematicians, and engineers to increase
the subject matter knowledge of teachers and im-
prove their teaching skills through the use of sophis-
ticated laboratory equipment and work space, com-
puting facilities, libraries, and other resources that
institutions of higher education are better able to
provide than the schools.
‘‘SEC. 2022. APPLICATION REQUIREMENTS.
‘‘(a) IN GENERAL.—An eligible partnership seeking
to receive a subgrant from a State under this subpart shall
submit an application to the State at such time, in such
manner, and accompanied by such information as the
State may require.
‘‘(b) PARTNERSHIP APPLICATION CONTENTS.—Each
such application shall include—
‘‘(1) an assessment of the teacher quality and
professional development of all the schools and agen-
cies participating in the eligible partnership with re-
spect to the teaching and learning of mathematics
and science;
‘‘(2) a description of how the activities to be
carried out by the eligible partnership will be aligned
with State academic content standards in mathe-
matics and science and with other educational re-
352
form activities that promote student achievement in
mathematics and science;
‘‘(3) a description of how the activities to be
carried out by the eligible partnership will be based
on a review of relevant research, and an explanation
of why the activities are expected to improve student
achievement and to strengthen the quality of mathe-
matics and science instructions; and
‘‘(4) a description of—
‘‘(A) how the eligible partnership will carry
out the activities described in section 2023(c);
and
‘‘(B) the eligible partnership’s evaluation
and accountability plan described in section
2024.
‘‘SEC. 2023. MATH AND SCIENCE PARTNERSHIP SUB-
GRANTS.
‘‘(a) IN GENERAL.—From the amount described in
section 2012(d), the State educational agency, working in
conjunction with the State agency for higher education (if
such agencies are separate), shall award subgrants on a
competitive basis to eligible partnerships to enable such
partnerships to carry out activities described in subsection
(c).
353
‘‘(b) DURATION.—The State shall award subgrants
under this subpart for a period of not less than 2 and
not more than 5 years.
‘‘(c) AUTHORIZED ACTIVITIES.—A recipient of funds
provided under this subpart may use the funds for the
following activities related to elementary or secondary
schools:
‘‘(1) Establishing and operating mathematics
and science summer professional development work-
shops or institutes for elementary and secondary
school teachers that—
‘‘(A) shall—
‘‘(i) directly relate to the curriculum
and content areas in which the teacher
provides instruction, and focus only sec-
ondarily on pedagogy;
‘‘(ii) enhance the ability of a teacher
to understand and use the State’s aca-
demic content standards for mathematics
and science and to select appropriate cur-
ricula;
‘‘(iii) train teachers to use curricula
that are—
‘‘(I) based on scientific research;
354
‘‘(II) aligned with State academic
content standards; and
‘‘(III) 
object-centered, 
experi-
ment-oriented, and concept- and con-
tent-based; and
‘‘(iv) provide supplemental assistance
and follow-up training during the school
year for summer institute graduates; and
‘‘(B) may include—
‘‘(i) programs that provide prospective
teachers and novice teachers opportunities
to work under the guidance of experienced
teachers and college faculty;
‘‘(ii) instruction in the use of data
and assessments to inform and instruct
classroom practice; and
‘‘(iii) professional development activi-
ties, including supplemental and follow-up
activities, such as curriculum alignment,
distance learning, and activities that train
teachers to utilize technology in the class-
room.
‘‘(2) Recruiting to the teaching profession—
‘‘(A) students studying mathematics, engi-
neering, and science; or
355
‘‘(B) mathematicians, engineers, and sci-
entists currently working in the field.
‘‘(3) Establishing and operating programs to
bring teachers into contact with working scientists,
mathematicians, and engineers, to expand teacher
content knowledge of and research in science and
mathematics.
‘‘(d) PRIORITY.—In awarding subgrants under this
subpart, States shall give priority to applications seeking
funding for the activity described in subsection (c)(1).
‘‘(e) COORDINATION.—Partnerships receiving grants
under section 203 of the Higher Education Act of 1965
(20 U.S.C. 1023) shall coordinate the use of such funds
with any related activities carried out by such partnership
with funds made available under this subpart.
‘‘SEC. 2024. EVALUATION AND ACCOUNTABILITY PLAN.
‘‘(a) IN GENERAL.—Each eligible partnership receiv-
ing a subgrant under this subpart shall develop an evalua-
tion and accountability plan for activities assisted under
this subpart that includes rigorous performance objectives
that measure the impact of activities funded under this
subpart.
‘‘(b) CONTENTS.—The plan—
‘‘(1) shall include measurable goals to increase
the number of mathematics and science teachers
356
who participate in content-based professional devel-
opment activities; and
‘‘(2) may include objectives and measures for—
‘‘(A) improved student achievement on
State mathematics and science assessments;
‘‘(B) increased participation by students in
advanced courses in mathematics and science;
‘‘(C) increased percentages of elementary
school teachers with academic majors or mi-
nors, or group majors or minors, in mathe-
matics, engineering, or the sciences; and
‘‘(D) increased percentages of secondary
school classes in mathematics and science
taught by teachers with academic majors in
mathematics and science, respectively.
‘‘SEC. 2025. REPORTS; REVOCATION OF SUBGRANTS.
‘‘(a) REPORTS.—Each eligible partnership receiving
a subgrant under this subpart annually shall report to the
State regarding the eligible partnership’s progress in
meeting the performance objectives described in section
2024.
‘‘(b) REVOCATION.—If the State determines that an
eligible partnership that receives a subgrant under this
subpart for 5 years is not making substantial progress in
meeting the performance objectives described in section
357
2024 by the end of the third year of the subgrant, the
subgrant payments shall not be made for the fourth and
fifth years.
‘‘SEC. 2026. DEFINITIONS.
‘‘In this subpart:
‘‘(1) ELIGIBLE PARTNERSHIP.—The term ‘eligi-
ble partnership’ means a partnership that—
‘‘(A) shall include—
‘‘(i) a State educational agency;
‘‘(ii) a mathematics or science depart-
ment of a private independent institution
of higher education or a State-supported
public institution of higher education; and
‘‘(iii) a high need local educational
agency; and
‘‘(B) may include—
‘‘(i) another institution of higher edu-
cation or the teacher training department
of such an institution;
‘‘(ii) additional local educational agen-
cies, public charter schools, public or pri-
vate elementary or secondary schools, or a
consortium of such schools;
‘‘(iii) a business; or
358
‘‘(iv) a nonprofit organization of dem-
onstrated effectiveness, including a mu-
seum or research institution.
‘‘(2) SUMMER
PROFESSIONAL
DEVELOPMENT
WORKSHOP OR INSTITUTE.—The term ‘summer pro-
fessional development workshop or institute’ means
a workshop or institute that—
‘‘(A) is conducted during a period of not
less than 2 weeks;
‘‘(B) includes as a component a program
that provides direct interaction between stu-
dents and faculty; and
‘‘(C) provides for follow-up training during
the academic year that is conducted in the
classroom for a period of not less than 3 con-
secutive or nonconsecutive days, except that—
‘‘(i) if the workshop or institute is
conducted during a two-week period, the
follow-up training shall be conducted for a
period of at least 4 days; and
‘‘(ii) if the follow-up training is for
teachers in rural school districts, it may be
conducted through distance learning.
359
‘‘Subpart 3—Subgrants to Local Educational
Agencies
‘‘SEC. 2031. LOCAL USE OF FUNDS.
‘‘(a) IN GENERAL.—Subject to subsection (b), each
local educational agency that receives a subgrant under
this subpart may use the subgrant to carry out the fol-
lowing activities:
‘‘(1) Initiatives to assist in recruiting and hir-
ing fully qualified teachers who will be assigned
teaching positions within their field, including—
‘‘(A) providing signing bonuses or other fi-
nancial incentives, such as differential pay, for
teachers to teach in academic subject areas in
which there exists a shortage of such fully
qualified teachers within a school or the local
educational agency;
‘‘(B) establishing programs that—
‘‘(i) recruit professionals from other
fields and provide such professionals with
alternative routes to teacher certification;
and
‘‘(ii) provide increased opportunities
for minorities, individuals with disabilities,
and other individuals underrepresented in
the teaching profession; and
360
‘‘(C) implementing hiring policies that en-
sure comprehensive recruitment efforts as a
way to expand the applicant pool, such as
through identifying teachers certified through
alternative routes, coupled with a system of in-
tensive screening designed to hire the most
qualified applicant.
‘‘(2) Initiatives to promote retention of highly
qualified teachers and principals, particularly within
elementary and secondary schools with a high per-
centage of low-achieving students, including pro-
grams that provide—
‘‘(A) mentoring to newly hired teachers,
such as from master teachers, or principals or
superintendents;
‘‘(B) incentives, including financial incen-
tives, to retain teachers who have a record of
success in helping low-achieving students im-
prove their academic success; or
‘‘(C) incentives, including financial incen-
tives, to principals who have a record of improv-
ing the performance of all students, but par-
ticularly students from economically disadvan-
taged families and students from racial and
ethnic minority groups.
361
‘‘(3) Programs and activities that are designed
to improve the quality of the teacher force, such
as—
‘‘(A) innovative professional development
programs (which may be through partnerships
including institutions of higher education), in-
cluding programs that train teachers and prin-
cipals to utilize technology to improve teaching
and learning, are consistent with the require-
ments of section 2033, and are coordinated
with part B of title V;
‘‘(B) development and utilization of prov-
en, cost-effective strategies for the implementa-
tion of professional development activities, such
as through the utilization of technology and dis-
tance learning;
‘‘(C) tenure reform;
‘‘(D) merit pay;
‘‘(E) testing of elementary and secondary
school teachers in the subject areas taught by
such teachers;
‘‘(F) professional development programs
that provide instruction in how to teach chil-
dren with different learning styles, particularly
children with disabilities and children with spe-
362
cial learning needs (including those who are
gifted and talented); and
‘‘(G) professional development programs
that provide instruction in methods of improv-
ing student behavior in the classroom and how
to identify early and appropriate interventions
to help children described in subparagraph (F)
learn.
‘‘(4) Teacher opportunity payments, consistent
with section 2034.
‘‘(5) Professional activities designed to improve
the quality of principals and superintendents, includ-
ing the development and support of academies to
help exceptionally talented aspiring or current prin-
cipals and superintendents become outstanding man-
agers and educational leaders.
‘‘(6) Hiring fully qualified teachers, including
teachers who become fully qualified through State
and local alternative routes, and special education
teachers, in order to reduce class size, particularly in
the early grades.
‘‘(7) Teacher advancement initiatives that pro-
mote professional growth and emphasize multiple ca-
reer paths (such as career teacher, mentor teacher,
and master teacher) and pay differentiation.
363
‘‘(b) SPECIAL RULE.—
‘‘(1) IN
GENERAL.—For any fiscal year for
which 
the 
amount 
described 
in 
section
2012(d)(2)(A) for a State is less than 15 percent of
the total amount of the funds that the State receives
under this subpart for the year that the State does
not reserve under section 2012(b), each local edu-
cational agency that receives a subgrant under this
subpart from the State shall use the funds to comply
with paragraph (2).
‘‘(2) REQUIREMENT.—A local educational agen-
cy required to comply with this paragraph shall use
not less than the amount expended by the agency
under section 2206(b) of this Act (as in effect on
the day before the date of the enactment of the No
Child Left Behind Act of 2001), for the fiscal year
preceding the year in which such enactment occurs,
to carry out professional development activities in
mathematics and science.
‘‘SEC. 2032. LOCAL APPLICATIONS.
‘‘(a) IN GENERAL.—A local educational agency seek-
ing to receive a subgrant from a State under this subpart
shall submit an application to the State—
‘‘(1) at such time as the State shall require;
and
364
‘‘(2) which is coordinated with other programs
under this Act, or other Acts, as appropriate.
‘‘(b) LOCAL APPLICATION CONTENTS.—The local ap-
plication described in subsection (a), shall include, at a
minimum, the following:
‘‘(1) An assurance that the local educational
agency will target funds to schools within the juris-
diction of the local educational agency that—
‘‘(A) have the lowest proportion of fully
qualified teachers;
‘‘(B) have the largest average class size; or
‘‘(C) are identified for school improvement
under section 1116(b).
‘‘(2) A description of how the local educational
agency will coordinate professional development ac-
tivities authorized under this subpart with profes-
sional development activities provided through other
Federal, State, and local programs, including those
authorized under title I, part A of title III, parts A
and B of title V, and (where applicable) the Individ-
uals with Disabilities Education Act and the Carl D.
Perkins Vocational and Technical Education Act.
‘‘(3) A description of how the local educational
agency will integrate funds under this subpart with
funds received under part B of title V that are used
365
for professional development to train teachers to uti-
lize technology to improve teaching and learning.
‘‘(4) A description of how the local educational
agency has collaborated with teachers, principals,
parents, and administrators in the preparation of
the application.
‘‘SEC. 2033. PROFESSIONAL DEVELOPMENT FOR TEACHERS.
‘‘(a) REQUIREMENTS FOR PROFESSIONAL DEVELOP-
MENT ACTIVITIES.—Professional development activities
under this subpart shall—
‘‘(1) 
meet 
the 
requirements 
of 
section
1119(a)(2);
‘‘(2) support professional development activities
that give teachers, principals, and administrators the
knowledge and skills to provide students with the op-
portunity to meet challenging State academic con-
tent standards and student achievement standards;
‘‘(3) support the recruiting, hiring, and training
of fully qualified teachers, including teachers fully
qualified through State and local alternative routes;
‘‘(4) advance teacher understanding of effective
instructional strategies based on scientifically based
research for improving student achievement, at a
minimum, in reading or language arts and mathe-
matics;
366
‘‘(5) be directly related to the curriculum and
content areas in which the teacher provides instruc-
tion, except that this paragraph shall not apply to
subparagraphs (F) and (G) of section 2031(3);
‘‘(6) be designed to enhance the ability of a
teacher to understand and use the State’s standards
for the subject area in which the teacher provides in-
struction;
‘‘(7) be tied to scientifically based research
demonstrating the effectiveness of such professional
development activities or programs in increasing stu-
dent achievement or substantially increasing the
knowledge and teaching skills of teachers;
‘‘(8) be of sufficient intensity and duration (not
to include 1-day or short-term workshops and con-
ferences) to have a positive and lasting impact on
the teacher’s performance in the classroom;
‘‘(9) be developed with extensive participation
of teachers, principals, parents, and administrators
of schools to be served under this subpart;
‘‘(10) be designed to give teachers of limited
English proficient children, and other teachers and
instructional staff, the knowledge and skills to pro-
vide instruction and appropriate language and aca-
367
demic support services to such children, including
the appropriate use of curriculum and assessments;
‘‘(11) to the extent appropriate, provide train-
ing for teachers and principals in the use of tech-
nology so that technology and its applications are ef-
fectively used in the classroom to improve teaching
and learning in the curriculum and academic content
areas in which the teachers provide instruction;
‘‘(12) as a whole, be regularly evaluated for
their impact on increased teacher effectiveness and
improved student achievement, with the findings of
such evaluations used to improve the quality of pro-
fessional development; and
‘‘(13) provide instruction in methods of teach-
ing children with special needs.
‘‘(b) PROFESSIONAL DEVELOPMENT ACTIVITIES.—
Professional development activities under this subpart
may include—
‘‘(1) instruction in the use of data and assess-
ments to inform and instruct classroom practice;
‘‘(2) instruction in ways that teachers, prin-
cipals, pupil services personnel, and school adminis-
trators may work more effectively with parents;
‘‘(3) the forming of partnerships with institu-
tions of higher education to establish school-based
368
teacher training programs that provide prospective
teachers and novice teachers with an opportunity to
work under the guidance of experienced teachers and
college faculty;
‘‘(4) the creation of programs for paraprofes-
sionals (assisting teachers employed by a local edu-
cational agency receiving assistance under this part)
to obtain the education necessary for such para-
professionals to become licensed and certified teach-
ers; and
‘‘(5) activities that provide follow-up training to
teachers who have participated in professional devel-
opment activities which are designed to ensure that
the knowledge and skills learned by the teacher are
implemented in the classroom.
‘‘(c) ACCOUNTABILITY.—
‘‘(1) IN GENERAL.—If, after any fiscal year, a
State determines that the programs or activities
funded by a local educational agency fail to meet the
requirements of subsection (a), the State shall notify
the agency that—
‘‘(A) it may be subject to paragraph (2);
and
369
‘‘(B) technical assistance is available from
the State to help the agency meet those require-
ments.
‘‘(2) REQUIREMENT TO PROVIDE TEACHER OP-
PORTUNITY PAYMENTS.—A local educational agency
that has been notified by a State for 2 consecutive
years under paragraph (1) shall expend under sec-
tion 2034 for the succeeding fiscal year a proportion
of the amount the agency receives under this sub-
part that is equal to the proportion of the amount
the agency received under this part for the preceding
fiscal year that the agency used for professional de-
velopment.
‘‘SEC. 2034. TEACHER OPPORTUNITY PAYMENTS.
‘‘(a) IN GENERAL.—A local educational agency re-
ceiving funds under this subpart may (or, in the case of
a local educational agency described in section 2033(c)(2),
shall) provide funds directly to a teacher or a group of
teachers seeking opportunities to participate in a profes-
sional development activity of their choice that meets the
requirements of section 2033(a) and is selected in con-
sultation with the principal in order to coordinate such
professional development with other reform efforts at the
school.
370
‘‘(b) NOTICE
TO
TEACHERS.—Local educational
agencies distributing funds under this section shall estab-
lish and implement a timely process through which proper
notice of availability of funds will be given to all teachers
within schools identified by the agency and shall develop
a process whereby teachers will have regular consultation
with and be specifically recommended by principals to par-
ticipate in such program by virtue of—
‘‘(1) a teacher not being fully qualified to teach
in the subject or subjects in which they teach; or
‘‘(2) a teacher’s need for additional assistance
to ensure that the teacher’s students make progress
toward meeting challenging State academic content
standards and student achievement standards.
‘‘(c) SELECTION OF TEACHERS.—If adequate fund-
ing is not available to provide payments under this section
to all teachers seeking such assistance or identified as
needing such assistance pursuant to subsection (b), a local
educational agency shall establish procedures for selecting
teachers that give priority to teachers described in para-
graph (1) or (2) of subsection (b).
371
‘‘Subpart 4—Mid-Career Transitions to Teaching
‘‘CHAPTER 1—TROOPS-TO-TEACHERS
PROGRAM
‘‘SEC. 2041. AUTHORIZATION OF TROOPS-TO-TEACHERS
PROGRAM.
‘‘(a) PROGRAM AUTHORIZED.—The Secretary may
carry out a program (to be known as the ‘Troops-to-
Teachers Program’)—
‘‘(1) to assist eligible members and former
members of the Armed Forces described in section
2042 to obtain certification or licensure as fully
qualified elementary school teachers, secondary
school teachers, or vocational or technical teachers;
and
‘‘(2) to facilitate the employment of such mem-
bers in elementary schools or secondary schools or as
vocational or technical teachers.
‘‘(b) ADMINISTRATION OF PROGRAM.—The Secretary
shall enter into a memorandum of agreement with the Sec-
retary of Defense under which the Secretary of Defense,
acting through the Defense Activity for Non-Traditional
Education Support of the Department of Defense, will
perform the actual administration of the Program, other
than section 2045. Using funds appropriated to the Sec-
retary to carry out this chapter, the Secretary shall trans-
fer to the Secretary of Defense such amounts as may be
372
necessary to administer the Program pursuant to the
memorandum of agreement.
‘‘(c) INFORMATION
REGARDING
PROGRAM.—The
Secretary shall provide to the Secretary of Defense, for
distribution as part of preseparation counseling provided
under section 1142 of title 10, United States Code, to
members of the Armed Forces described in section 2042,
information regarding the Troops-to-Teachers Program
and applications to participate in the program.
‘‘(d) PLACEMENT
ASSISTANCE
AND
REFERRAL
SERVICES.—As part of the Troops-to-Teachers Program,
the Secretary may, with the agreement of the Secretary
of Defense, provide placement assistance and referral serv-
ices regarding employment opportunities with local edu-
cational agencies to members of the Armed Forces who
are discharged or released from active duty under other
than adverse conditions. Unless the member is also se-
lected to participate in the Program under section 2042,
a member receiving placement assistance and referral
services under the authority of this subsection is not eligi-
ble for financial assistance under section 2043.
‘‘SEC. 2042. RECRUITMENT AND SELECTION OF PROGRAM
PARTICIPANTS.
‘‘(a) ELIGIBLE MEMBERS.—The following members
and former members of the Armed Forces are eligible for
373
selection to participate in the Troops-to-Teachers Pro-
gram:
‘‘(1) Any member who—
‘‘(A) on or after October 1, 1999, becomes
entitled to retired or retainer pay in the manner
provided in title 10 or title 14, United States
Code; or
‘‘(B) on or after the date of the enactment
of the No Child Left Behind Act of 2001, has
an approved date of voluntary retirement and,
as of the date the member submits an applica-
tion to participate in the Program, has one year
or less of active duty remaining before retire-
ment.
‘‘(2) Any member who, on or after the date of
the enactment of the No Child Left Behind Act of
2001—
‘‘(A) is separated or released from active
duty after six or more years of continuous ac-
tive duty immediately before the separation or
release; and
‘‘(B) executes a reserve commitment agree-
ment for a period of three years under sub-
section (e)(2).
374
‘‘(3) Any member who, on or after the date of
the enactment of the No Child Left Behind Act of
2001, is retired or separated for physical disability
under chapter 61 of title 10, United States Code.
‘‘(4) Any member who—
‘‘(A) during the period beginning on Octo-
ber 1, 1990, and ending on September 30,
1999, was involuntarily discharged or released
from active duty for purposes of a reduction of
force after six or more years of continuous ac-
tive duty immediately before the discharge or
release; or
‘‘(B) applied for the teacher placement
program administered under section 1151 of
title 10, United States Code, before its repeal,
and who satisfied the eligibility criteria specified
in subsection (c) of such section 1151.
‘‘(b) SUBMISSION OF APPLICATIONS.—
‘‘(1) FORM AND SUBMISSION.—Selection of eli-
gible members and former members of the Armed
Forces to participate in the Troops-to-Teachers Pro-
gram shall be made on the basis of applications sub-
mitted to the Secretary within the time periods spec-
ified in paragraph (2). An application shall be in
375
such form and contain such information as the Sec-
retary may require.
‘‘(2) TIME
FOR
SUBMISSION.—An application
shall be considered to be submitted on a timely basis
under paragraph (1) if—
‘‘(A) in the case of a member or former
member of the Armed Forces described in para-
graph (1), (2), or (3) of subsection (a), the ap-
plication is submitted not later than four years
after the date on which the member is retired
or separated or released from active duty,
whichever applies to the member; or
‘‘(B) in the case of a member or former
member described in subsection (a)(4), the ap-
plication is submitted not later than September
30, 2003.
‘‘(c) SELECTION CRITERIA.—
‘‘(1) ESTABLISHMENT.—Subject to paragraphs
(2) and (3), the Secretary shall prescribe the criteria
to be used to select eligible members and former
members of the Armed Forces to participate in the
Troops-to-Teachers Program.
‘‘(2) EDUCATIONAL BACKGROUND.—If a mem-
ber or former member of the Armed Forces de-
scribed in paragraph (1), (2), or (3) of subsection
376
(a) is applying for assistance for placement as an el-
ementary or secondary school teacher, the Secretary
shall require the member to have received a bacca-
laureate or advanced degree from an accredited in-
stitution of higher education. If such a member is
applying for assistance for placement as a vocational
or technical teacher, the Secretary shall require the
member—
‘‘(A) to have received the equivalent of one
year of college from an accredited institution of
higher education and have six or more years of
military experience in a vocational or technical
field; or
‘‘(B) to otherwise meet the certification or
licensure requirements for a vocational or tech-
nical teacher in the State in which the member
seeks assistance for placement under the Pro-
gram.
‘‘(3) HONORABLE
SERVICE.—A member or
former member of the Armed Forces is eligible to
participate in the Troops-to-Teachers Program only
if the member’s last period of service in the Armed
Forces was characterized as honorable. If the mem-
ber is selected to participate in the Program before
the retirement of the member or the separation or
377
release of the member from active duty, the member
may continue to participate in the Program only if,
upon the retirement or separation or release from
active duty, the member’s last period of service is
characterized as honorable.
‘‘(d) SELECTION PRIORITIES.—In selecting eligible
members and former members of the Armed Forces to re-
ceive assistance for placement as elementary or secondary
school teachers or vocational or technical teachers, the
Secretary shall give priority to members who have edu-
cational or military experience in science, mathematics,
special education, or vocational or technical subjects and
agree to seek employment as science, mathematics, or spe-
cial education teachers in elementary or secondary schools
or in other schools under the jurisdiction of a local edu-
cational agency.
‘‘(e) OTHER CONDITIONS ON SELECTION.—
‘‘(1) SELECTION SUBJECT TO FUNDING.—The
Secretary may not select an eligible member or
former member of the Armed Forces to participate
in the Troops-to-Teachers Program under this sec-
tion and receive financial assistance under section
2043 unless the Secretary has sufficient appropria-
tions for the Program available at the time of the
selection to satisfy the obligations to be incurred by
378
the United States under section 2043 with respect
to the member.
‘‘(2) RESERVE
COMMITMENT
AGREEMENT.—
The Secretary may not select an eligible member or
former member of the Armed Forces described in
subsection (a)(2)(A) to participate in the Troops-to-
Teachers Program under this section and receive fi-
nancial assistance under section 2043 unless—
‘‘(A) the Secretary notifies the Secretary
concerned and the member that the Secretary
has reserved a full stipend or bonus under sec-
tion 2043 for the member; and
‘‘(B) the member executes a written agree-
ment with the Secretary concerned to serve as
a member of the Selected Reserve of a reserve
component of the Armed Forces for a period of
three years (in addition to any other reserve
commitment the member may have).
‘‘SEC. 2043. PARTICIPATION AGREEMENT AND FINANCIAL
ASSISTANCE.
‘‘(a) 
PARTICIPATION
AGREEMENT.—An 
eligible
member or former member of the Armed Forces selected
to participate in the Troops-to-Teachers Program under
section 2042 and receive financial assistance under this
379
section shall be required to enter into an agreement with
the Secretary in which the member agrees—
‘‘(1) to obtain, within such time as the Sec-
retary may require, certification or licensure as a
fully qualified elementary school teacher, secondary
school teacher, or vocational or technical teacher;
and
‘‘(2) to accept an offer of full-time employment
as a fully qualified elementary school teacher, sec-
ondary school teacher, or vocational or technical
teacher for not less than three school years with a
local educational agency or public charter school, to
begin the school year after obtaining that certifi-
cation or licensure.
‘‘(b) VIOLATION
OF PARTICIPATION AGREEMENT;
EXCEPTIONS.—A participant in the Troops-to-Teachers
Program shall not be considered to be in violation of the
participation agreement entered into under subsection (a)
during any period in which the participant—
‘‘(1) is pursuing a full-time course of study re-
lated to the field of teaching at an institution of
higher education;
‘‘(2) is serving on active duty as a member of
the Armed Forces;
380
‘‘(3) is temporarily totally disabled for a period
of time not to exceed three years as established by
sworn affidavit of a qualified physician;
‘‘(4) is unable to secure employment for a pe-
riod not to exceed 12 months by reason of the care
required by a spouse who is disabled;
‘‘(5) is seeking and unable to find full-time em-
ployment as a fully qualified teacher in an elemen-
tary or secondary school or as a vocational or tech-
nical teacher for a single period not to exceed 27
months; or
‘‘(6) satisfies the provisions of additional reim-
bursement exceptions that may be prescribed by the
Secretary.
‘‘(c) STIPEND FOR PARTICIPANTS.—
‘‘(1) STIPEND AUTHORIZED.—Subject to para-
graph (2), the Secretary may pay to a participant in
the Troops-to-Teachers Program selected under sec-
tion 2042 a stipend in an amount up to $5,000.
‘‘(2) LIMITATION.—The total number of sti-
pends that may be paid under paragraph (1) in any
fiscal year may not exceed 3,000.
‘‘(d) BONUS FOR PARTICIPANTS.—
‘‘(1) BONUS
AUTHORIZED.—Subject to para-
graph (2), the Secretary may, in lieu of paying a sti-
381
pend under subsection (c), pay a bonus of $10,000
to a participant in the Troops-to-Teachers Program
selected under section 2042 who agrees in the par-
ticipation agreement under subsection (a) to accept
full-time employment as a fully qualified elementary
school teacher, secondary school teacher, or voca-
tional or technical teacher for not less than three
years in a high need school.
‘‘(2) LIMITATION.—The total number of bo-
nuses that may be paid under paragraph (1) in any
fiscal year may not exceed 1,000.
‘‘(3) HIGH NEED SCHOOL DEFINED.—For pur-
poses of this subsection, the term ‘high need school’
means a public elementary school, public secondary
school, or public charter school that meets one or
more of the following criteria:
‘‘(A) At least 50 percent of the students
enrolled in the school were children counted
under subsection (c) of section 1124 for pur-
poses of making grants under such section to
local educational agencies, when such counting
was most recently performed.
‘‘(B) The school has a large percentage of
students who qualify for assistance under part
382
B of the Individuals with Disabilities Education
Act (20 U.S.C. 1411 et seq.).
‘‘(C) The school meets any other criteria
established by the Secretary in consultation
with the National Assessment Governing Board.
‘‘(e) TREATMENT OF STIPEND AND BONUS.—A sti-
pend or bonus paid under this section to a participant in
the Troops-to-Teachers Program shall be taken into ac-
count in determining the eligibility of the participant for
Federal student financial assistance provided under title
IV of the Higher Education Act of 1965 (20 U.S.C. 1070
et seq.).
‘‘(f) 
REIMBURSEMENT
UNDER
CERTAIN
CIR-
CUMSTANCES.—
‘‘(1) REIMBURSEMENT REQUIRED.—A partici-
pant in the Troops-to-Teachers Program who is paid
a stipend or bonus under this section shall be re-
quired to repay the stipend or bonus under the fol-
lowing circumstances:
‘‘(A) The participant fails to obtain teach-
er certification or licensure or employment as a
fully qualified elementary school teacher, sec-
ondary school teacher, or vocational or technical
teacher as required by the participation agree-
ment under subsection (a).
383
‘‘(B) The participant voluntarily leaves, or
is terminated for cause, from employment as an
elementary school teacher, secondary school
teacher, or vocational or technical teacher dur-
ing the three years of required service in viola-
tion of the participation agreement.
‘‘(C) The participant executed a written
agreement with the Secretary concerned under
section 2042(e)(2) to serve as a member of a
reserve component of the Armed Forces for a
period of three years and fails to complete the
required term of service.
‘‘(2) AMOUNT OF REIMBURSEMENT.—A partici-
pant required to reimburse the Secretary for a sti-
pend or bonus paid to the participant under this sec-
tion shall pay an amount that bears the same ratio
to the amount of the stipend or bonus as the
unserved portion of required service bears to the
three years of required service. Any amount owed by
the participant shall bear interest at the rate equal
to the highest rate being paid by the United States
on the day on which the reimbursement is deter-
mined to be due for securities having maturities of
ninety days or less and shall accrue from the day on
384
which the participant is first notified of the amount
due.
‘‘(3) TREATMENT OF OBLIGATION.—The obliga-
tion to reimburse the Secretary under this sub-
section is, for all purposes, a debt owing the United
States. A discharge in bankruptcy under title 11,
United States Code, shall not release a participant
from the obligation to reimburse the Secretary.
‘‘(4) EXCEPTIONS
TO
REIMBURSEMENT
RE-
QUIREMENT.—A participant shall be excused from
reimbursement under this subsection if the partici-
pant becomes permanently totally disabled as estab-
lished by sworn affidavit of a qualified physician.
The Secretary may also waive reimbursement in
cases of extreme hardship to the participant, as de-
termined by the Secretary.
‘‘(g) RELATIONSHIP TO EDUCATIONAL ASSISTANCE
UNDER MONTGOMERY GI BILL.—The receipt by a partic-
ipant in the Troops-to-Teachers Program of a stipend or
bonus under this section shall not reduce or otherwise af-
fect the entitlement of the participant to any benefits
under chapter 30 of title 38, United States Code, or chap-
ter 1606 of title 10, United States Code.
385
‘‘SEC. 2044. PARTICIPATION BY STATES.
‘‘(a) DISCHARGE OF STATE ACTIVITIES THROUGH
CONSORTIA
OF STATES.—The Secretary may permit
States participating in the Troops-to-Teachers Program to
carry out activities authorized for such States under the
Program through one or more consortia of such States.
‘‘(b) ASSISTANCE TO STATES.—
‘‘(1) GRANTS AUTHORIZED.—Subject to para-
graph (2), the Secretary may make grants to States
participating in the Troops-to-Teachers Program, or
to consortia of such States, in order to permit such
States or consortia of States to operate offices for
purposes of recruiting eligible members and former
members of the Armed Forces for participation in
the Program and facilitating the employment of par-
ticipants in the Program as elementary school teach-
ers, secondary school teachers, and vocational or
technical teachers.
‘‘(2) LIMITATION.—The total amount of grants
under paragraph (1) in any fiscal year may not ex-
ceed $4,000,000.
‘‘SEC. 2045. SUPPORT OF INNOVATIVE PRERETIREMENT
TEACHER CERTIFICATION PROGRAMS.
‘‘(a) DEVELOPMENT, IMPLEMENTATION AND DEM-
ONSTRATION.—The Secretary may enter into a memo-
randum of agreement with a State, an institution of high-
386
er education, or a consortia of States or institutions of
higher education, to develop, implement, and demonstrate
teacher certification programs for members of the Armed
Forces described in section 2042(a)(1)(B) for the purpose
of assisting such members to consider and prepare for a
career as a fully qualified elementary school teacher, sec-
ondary school teacher, or vocational or technical teacher
upon their retirement from the Armed Forces.
‘‘(b) PROGRAM ELEMENTS.—A teacher certification
program under subsection (a) must—
‘‘(1) provide recognition of military experience
and training as related to licensure or certification
requirements;
‘‘(2) provide courses of instruction that may be
conducted on or near a military installation;
‘‘(3) incorporate alternative approaches to
achieve teacher certification, such as innovative
methods to gaining field-based teaching experiences,
and assessment of background and experience as re-
lated to skills, knowledge, and abilities required of
elementary school teachers, secondary school teach-
ers, or vocational or technical teachers;
‘‘(4) provide for courses to also be delivered via
distance education methods; and
387
‘‘(5) address any additional requirements or
specifications as established by the Secretary.
‘‘(c) APPLICATION PROCEDURES.—A State or insti-
tution of higher education (or a consortia of States or in-
stitutions of higher education) that has a program leading
to State approved teacher certification programs may sub-
mit a proposal to the Secretary for consideration under
subsection (a). The Secretary shall give preference to pro-
posals that provide for a sharing of the costs to carry out
the teacher certification program.
‘‘(d) CONTINUATION OF PROGRAMS.—The purpose of
this section is to provide funding to develop, implement,
and demonstrate teacher certification programs under
subsection (a). Upon successful completion of the dem-
onstration phase, the continued operation of the teacher
certification programs shall not be the responsibility of the
Secretary.
‘‘(e) FUNDING LIMITATION.—The total amount obli-
gated by the Secretary under this section in any fiscal year
may not exceed $5,000,000.
‘‘SEC. 2046. REPORTING REQUIREMENTS.
‘‘(a) REPORT REQUIRED.—Not later than March 31
of each year, the Secretary (in consultation with the Sec-
retary of Defense and the Secretary of Transportation)
and the Comptroller General shall each submit to Con-
388
gress a report on the effectiveness of the Troops-to-Teach-
ers Program in the recruitment and retention of qualified
personnel by local educational agencies and public charter
schools.
‘‘(b) ELEMENTS OF REPORT.—The report under sub-
section (a) shall include information on the following:
‘‘(1) The number of participants in the Troops-
to-Teachers Program.
‘‘(2) The schools in which the participants are
employed.
‘‘(3) The grade levels at which the participants
teach.
‘‘(4) The subject matters taught by the partici-
pants.
‘‘(5) The rates of retention of the participants
by the local educational agencies and public charter
schools employing the participants.
‘‘(6) Such other matters as the Secretary or the
Comptroller General, as the case may be, considers
appropriate.
‘‘(c) RECOMMENDATIONS.—The report of the Comp-
troller General under this section shall also include any
recommendations of the Comptroller General regarding
any means of improving the Troops-to-Teachers Program,
389
including means of enhancing the recruitment and reten-
tion of participants in the Program.
‘‘SEC. 2047. DEFINITIONS.
‘‘For purposes of this chapter:
‘‘(1) 
ARMED
FORCES.—The 
term 
‘Armed
Forces’ means the Army, Navy, Air Force, Marine
Corps, and Coast Guard.
‘‘(2) PROGRAM.—The term ‘Program’ means
the Troops-to-Teachers Program authorized by this
subpart.
‘‘(3) RESERVE COMPONENT.—The term ‘reserve
component’ means—
‘‘(A) the Army National Guard of the
United States;
‘‘(B) the Army Reserve;
‘‘(C) the Naval Reserve;
‘‘(D) the Marine Corps Reserve;
‘‘(E) the Air National Guard of the United
States;
‘‘(F) the Air Force Reserve; and
‘‘(G) the Coast Guard Reserve.
‘‘(4) SECRETARY CONCERNED.—The term ‘Sec-
retary concerned’ means—
390
‘‘(A) the Secretary of the Army, with re-
spect to matters concerning a reserve compo-
nent of the Army;
‘‘(B) the Secretary of the Navy, with re-
spect to matters concerning a reserve compo-
nent of the Navy;
‘‘(C) the Secretary of the Air Force, with
respect to matters concerning a reserve compo-
nent of the Air Force; and
‘‘(D) the Secretary of Transportation, with
respect to matters concerning the Coast Guard
Reserve.
‘‘CHAPTER 2—TRANSITION TO TEACHING
‘‘SEC. 2048. PROFESSIONALS SEEKING TO CHANGE CA-
REERS.
‘‘(a) PURPOSE.—The purpose of this section is to ad-
dress the need of high-need local educational agencies for
highly qualified teachers in particular subject areas, such
as mathematics, science, foreign languages, bilingual edu-
cation, and special education, needed by those agencies,
following the model of the program under chapter 1, by
recruiting, preparing, placing, and supporting career-
changing professionals who have knowledge and experi-
ence that will help them become such teachers.
391
‘‘(b) PROGRAM AUTHORIZED.—The Secretary may
award grants, contracts, or cooperative agreements to in-
stitutions of higher education and public and private non-
profit agencies or organizations to carry out programs au-
thorized by this section.
‘‘(c) APPLICATION.—Each applicant that desires an
award under subsection (b) shall submit an application to
the Secretary containing such information as the Sec-
retary requires, including—
‘‘(1) a description of the target group of career-
changing professionals upon which the applicant will
focus its recruitment efforts in carrying out its pro-
gram under this section, including a description of
the characteristics of that target group that shows
how the knowledge and experience of its members
are relevant to meeting the purpose of this section;
‘‘(2) a description of the training that program
participants will receive and how that training will
relate to their certification as teachers;
‘‘(3) a description of how the applicant will col-
laborate, as needed, with other institutions, agencies,
or organizations to recruit, train, place, support, and
provide teacher induction programs to program par-
ticipants under this section, including evidence of