500
‘‘(2) IMPLEMENTATION; REQUIREMENTS.—
‘‘(A) IMPLEMENTATION.—The State shall
ensure implementation at all levels of the report
cards described in paragraph (1).
‘‘(B) 
REQUIREMENTS.—Annual 
report
cards under this part shall be—
‘‘(i) concise; and
‘‘(ii) presented in a format and man-
ner that parents can understand including,
to the extent practicable, in a language the
parents can understand.
‘‘(3) PUBLICATION THROUGH OTHER MEANS.—
In the event that the State provides no such report
card, the State shall, not later than the beginning of
the 2002–2003 school year, publicly report the infor-
mation described in subsection (g) for all public
schools that receive funds under this Act.
‘‘(g) CONTENT OF ANNUAL STATE REPORTS.—
‘‘(1) REQUIRED INFORMATION.—Each State de-
scribed in subsection (f)(1)(A), at a minimum, shall
include in the annual State report information on
each local educational agency and public school that
receives funds under this Act, including information
regarding—
501
‘‘(A) student performance on statewide as-
sessments for the year for which the annual
State report is made, and the preceding year, in
at least English language arts and mathe-
matics, including—
‘‘(i) a comparison of the proportions
of students who performed at the basic,
proficient, and advanced levels in each sub-
ject area, for each grade level at which as-
sessments are required under title I, with
proportions in each of the same 3 levels at
the same grade levels in the previous
school year;
‘‘(ii) a statement on the 3-year trend
in the percentage of students performing
at the basic, proficient, and advanced levels
in each subject area, for each grade level
for which assessments are required under
title I; and
‘‘(iii) a statement of the percentage of
students not tested and a listing of cat-
egories of the reasons why such students
were not tested;
502
‘‘(B) student retention rates in grades, the
number of students completing advanced place-
ment courses, and 4-year graduation rates;
‘‘(C) the professional qualifications of
teachers in the aggregate, including the per-
centage of teachers teaching with emergency or
provisional credentials, the percentage of class
sections not taught by fully qualified teachers,
and the percentage of teachers who are fully
qualified; and
‘‘(D) the professional qualifications of
paraprofessionals in the aggregate, the number
of paraprofessionals in the aggregate, and the
ratio of paraprofessionals to teachers in the
classroom.
‘‘(2) STUDENT DATA.—Student data in each re-
port shall contain disaggregated results for the fol-
lowing categories:
‘‘(A) Racial and ethnic groups.
‘‘(B) Gender.
‘‘(C) Economically disadvantaged students,
as compared to students who are not economi-
cally disadvantaged.
503
‘‘(D) Students with limited English pro-
ficiency, as compared to students who are pro-
ficient in English.
‘‘(E) migrant status; and
‘‘(F) students who are disabled, as com-
pared to students who are not disabled.
‘‘(3) OPTIONAL INFORMATION.—A State may
include in the State annual report any other infor-
mation the State determines appropriate to reflect
school quality and school achievement, including by
grade level information on average class size and in-
formation on school safety, such as the incidence of
school violence and drug and alcohol abuse, and the
incidence of student suspensions and expulsions.
‘‘(4) WAIVER.—The Secretary may grant a
waiver to a State seeking a waiver of the require-
ments of this subsection if the State demonstrates to
the Secretary that—
‘‘(A) the content of existing State report
cards meets the goals of this part; and
‘‘(B) the State is taking identifiable steps
to meet the requirements of this subsection.
‘‘(h) LOCAL EDUCATIONAL AGENCY AND SCHOOL
REPORT CARDS.—
‘‘(1) REPORT REQUIRED.—
504
‘‘(A) IN GENERAL.—The State shall ensure
that each local educational agency, public ele-
mentary school, or public secondary school that
receives funds under this Act, collects appro-
priate data and publishes an annual report card
consistent with this subsection.
‘‘(B) 
REQUIRED
INFORMATION.—Each
local educational agency, elementary school, and
secondary school described in subparagraph
(A), at a minimum, shall include in its annual
report card—
‘‘(i) the information described in sub-
sections (g)(1) and (2) for each local edu-
cational agency and school;
‘‘(ii) in the case of a local educational
agency—
‘‘(I) information regarding the
number and percentage of schools
identified for school improvement, in-
cluding schools identified under sec-
tion 1116 of this Act, served by the
local educational agency;
‘‘(II) information on the 3-year
trend in the number and percentage
of elementary schools and secondary
505
schools identified for school improve-
ment; and
‘‘(III) information that shows
how students in the schools served by
the local educational agency perform
on the statewide assessment compared
to students in the State as a whole;
‘‘(iii) in the case of an elementary
school or a secondary school—
‘‘(I) 
information 
regarding
whether the school has been identified
for school improvement; and
‘‘(II) information that shows how
the school’s students performed on the
statewide assessment compared to
students in schools served by the same
local educational agency and to all
students in the State; and
‘‘(iii) other appropriate information,
whether or not the information is included
in the annual State report.
‘‘(2) SPECIAL RULE.—A local educational agen-
cy that issues report cards for all public elementary
schools and secondary schools served by the agency
shall include, at a minimum, the information de-
506
scribed in subsection (g) for all public schools that
receive funds under this Act.
‘‘(i) DISSEMINATION
AND ACCESSIBILITY
OF RE-
PORTS AND REPORT CARDS.—
‘‘(1) STATE
REPORTS.—State annual reports
under subsection (g) shall be disseminated to all ele-
mentary schools, secondary schools, and local edu-
cational agencies in the State, and made broadly
available to the public through means such as post-
ing on the Internet and distribution to the media,
and through public agencies.
‘‘(2) LOCAL REPORT CARDS.—Local educational
agency report cards under subsection (h) shall be
disseminated to all elementary schools and secondary
schools served by the local educational agency and to
all parents of students attending such schools, and
made broadly available to the public through means
such as posting on the Internet and distribution to
the media, and through public agencies.
‘‘(3) SCHOOL
REPORT
CARDS.—Elementary
school and secondary school report cards under sub-
section (h) shall be disseminated to all parents of
students attending that school, and made broadly
available to the public, through means such as post-
507
ing on the Internet and distribution to the media,
and through public agencies.
‘‘(j) PARENTS RIGHT-TO-KNOW.—
‘‘(1) QUALIFICATIONS.—A local educational
agency that receives funds part A of title I or part
A of title II shall provide, upon request, in an under-
standable and uniform format, to any parent of a
student attending any school receiving funds under
part A of title I or part A of title II, information
regarding the professional qualifications of the stu-
dent’s 
classroom 
teachers, 
including, 
at 
a
minimum—
‘‘(A) whether the teacher is fully qualified
as defined in section 2002(1) for the grade lev-
els and subject areas in which the teacher pro-
vides instruction;
‘‘(B) whether the teacher is teaching under
emergency or other provisional status through
which State certification or licensing criteria
are waived;
‘‘(C) the baccalaureate degree major of the
teacher, any other graduate certification or de-
gree held by the teacher, and the field of dis-
cipline of each such certification or degree; and
508
‘‘(D) whether the student is provided serv-
ices by paraprofessionals, and the qualifications
of any such paraprofessional.
‘‘(2) ADDITIONAL INFORMATION.—In addition
to the information that parents may request under
paragraph (1), and the information provided in re-
port cards under this part, a school that receives
funds under part A of title I or part A of title II
shall provide, to the extent practicable, to each indi-
vidual parent or guardian—
‘‘(A) information on the level of perform-
ance of the individual student, for whom they
are the parent or guardian, in each of the State
assessments as required under part A of title I;
and
‘‘(B) timely notice that the student, for
whom they are the parent or guardian, was as-
signed or taught for 2 or more consecutive
weeks by a substitute teacher or by a teacher
not fully qualified.
‘‘(k) COORDINATION OF STATE PLAN CONTENT.—A
State shall include in its plan under part A of title I or
part A of title II, an assurance that the State has in effect
a policy that meets the requirements of this section.
509
‘‘(l) PRIVACY.—Information collected under this sec-
tion shall be collected and disseminated in a manner that
protects the privacy of individuals.
‘‘(m) DEFINITION.—The term ‘State’ means each of
the several States of the United States, the District of
Columbia, and the Commonwealth of Puerto Rico.
TITLE V—IMPACT AID
SEC. 501. PAYMENTS RELATING TO FEDERAL ACQUISITION
OF REAL PROPERTY.
Section 8002 (20 U.S.C. 7702), as amended by sec-
tion 1803 of the Floyd D. Spence National Defense Au-
thorization Act for Fiscal Year 2001 (Public Law 106–
398), is amended—
(1) in subsection (h)(4), by striking subpara-
graph (B) and inserting the following:
‘‘(B) the Secretary shall make a payment
to each local educational agency that is eligible
to receive a payment under this section for the
fiscal year involved in an amount that bears the
same relation to 75 percent of the remainder as
a percentage share determined for the local
educational agency (as determined by dividing
the maximum amount that such agency is eligi-
ble to receive under subsection (b)(1)(C) by the
total maximum amounts that all such local edu-
510
cational agencies are eligible to receive under
such subsection) bears to the percentage share
determined (in the same manner) for all local
educational agencies eligible to receive a pay-
ment under this section for the fiscal year in-
volved, except that for purposes of calculating a
local educational agency’s maximum payment,
data from the most current fiscal year shall be
used.’’; and
(2) by adding at the end the following:
‘‘(n) LOSS OF ELIGIBILITY.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this section, the Secretary shall make
the following minimum payments for each fiscal year
to each local educational agency described in para-
graph (2):
‘‘(A) For the first fiscal year following the
loss of eligibility (as described in paragraph
(2)), an amount equal to 90 percent of the
amount received in the final fiscal year of eligi-
bility.
‘‘(B) For the second fiscal year following
the loss of eligibility (as described in paragraph
(2)), an amount equal to 75 percent of the
511
amount received in the final fiscal year of eligi-
bility.
‘‘(C) For the third fiscal year following the
loss of eligibility (as described in paragraph
(2)), an amount equal to 50 percent of the
amount received in the final fiscal year of eligi-
bility.
‘‘(2) ELIGIBLE
LOCAL
EDUCATIONAL
AGEN-
CIES.—A local educational agency described in this
paragraph is an agency that—
‘‘(A) was eligible for, and received, a pay-
ment under this section for fiscal year 2002;
and
‘‘(B) beginning in fiscal year 2003, is no
longer eligible for payments under this section
as provided for in subsection (a)(1)(C) as a re-
sult of the transfer of the Federal property in-
volved to a non-Federal entity.’’.
SEC. 502. REPEAL OF SPECIAL RULE RELATING TO THE
COMPUTATION OF PAYMENTS FOR ELIGIBLE
FEDERALLY CONNECTED CHILDREN.
Section 8003(a) (20 U.S.C. 7703(a)) is amended by
striking paragraph (3).
512
SEC. 503. EXTENSION OF AUTHORIZATION OF APPROPRIA-
TIONS.
Section 8014 (20 U.S.C. 7714), as amended by sec-
tion 1817 of the Floyd D. Spence National Defense Au-
thorization Act for Fiscal Year 2001 (Public Law 106–
398), is amended—
(1) in subsection (a), by striking ‘‘three suc-
ceeding’’ and inserting ‘‘six succeeding’’;
(2) in subsection (b), by striking ‘‘three suc-
ceeding’’ and inserting ‘‘six succeeding’’;
(3) in subsection (c), by striking ‘‘three suc-
ceeding’’ and inserting ‘‘six succeeding’’;
(4) in subsection (e), by striking ‘‘three suc-
ceeding’’ and inserting ‘‘six succeeding’’;
(5) in subsection (f), by striking ‘‘three suc-
ceeding’’ and inserting ‘‘six succeeding’’; and
(6) in subsection (g), by striking ‘‘three suc-
ceeding’’ and inserting ‘‘six succeeding’’.
SEC. 504. REPEALS, TRANSFERS, AND REDESIGNATIONS.
The Act (20 U.S.C. 6301 et seq.) is amended—
(1) by repealing title V (20 U.S.C. 7201 et
seq.);
(2) by redesignating title VIII (20 U.S.C. 7701
et seq.) as title V, and transferring the title to follow
title IV (as amended by section 402);
513
(3) by redesignating references to title VIII as
references to title V (as redesignated and trans-
ferred by paragraph (2)); and
(4) by redesignating sections 8001 through
8005, and 8007 through 8014 (20 U.S.C. 7701,
7714) (as transferred by paragraph (2)) as sections
5001 through 5001, and 5007 through 5014, respec-
tively, and redesignating accordingly the references
to such sections 8001 through 8005 and 8007
through 8014.
TITLE VI—HIGH PERFORMANCE
AND 
QUALITY 
EDUCATION
INITIATIVES
SEC. 601. HIGH PERFORMANCE AND QUALITY EDUCATION
INITIATIVES.
Title VI (20 U.S.C. 7301 et seq.) is amended to read
as follows:
‘‘TITLE VI—HIGH PERFORMANCE
AND 
QUALITY 
EDUCATION
INITIATIVES
‘‘SEC. 6001. FINDINGS, POLICY, AND PURPOSE.
‘‘(a) FINDINGS.—Congress makes the following find-
ings:
‘‘(1)(A) Congress embraces the view that edu-
cators most familiar with schools, including school
514
superintendents, principals, teachers, and school
support personnel, have a critical role in knowing
what is needed and how best to meet the educational
needs of students.
‘‘(B) Local educational agencies should there-
fore have primary responsibility for deciding how to
implement funds.
‘‘(2)(A) Since the Elementary and Secondary
Education Act was first authorized in 1965, the
Federal Government has created numerous grant
programs, each of which was created to address 1
among the myriad challenges and problems facing
education.
‘‘(B) Only a few of the Federal grant programs
established before the date of enactment of the Pub-
lic Education Reinvestment, Reinvention, and Re-
sponsibility Act (Three R’s) can be tied to signifi-
cant quantitative results.
‘‘(C) Because Federal education dollars are dis-
tributed through a patchwork of programs, with
each program having its own set of requirements
and restrictions, local educational agencies and
schools have found it difficult to leverage funds for
maximum impact.
515
‘‘(D) In many cases, Federal education dollars
distributed through competitive grant programs are
too diffused to provide a true impact at the school
level.
‘‘(E) As a result of the Federal elementary and
secondary education policies in place before the date
of enactment of the Public Education Reinvestment,
Reinvention, and Responsibility Act (Three R’s), the
focus of Federal, State, and local educational agen-
cies has been diverted from comprehensive student
achievement to administrative compliance.
‘‘(3)(A) Every elementary school and secondary
school should provide a drug- and violence-free
learning environment.
‘‘(B) The widespread illegal use of alcohol and
drugs among the Nation’s secondary school stu-
dents, and increasingly among elementary school
students, constitutes a grave threat to students’
physical and mental well-being, and significantly im-
pedes the learning process.
‘‘(C) Drug and violence prevention programs
are essential components of a comprehensive strat-
egy to promote school safety, youth development,
and positive school outcomes, and reduce the de-
516
mand for and illegal use of alcohol, tobacco, and
drugs throughout the Nation.
‘‘(D) Schools, local organizations, parents, stu-
dents, and communities throughout the Nation have
a special responsibility to work together to combat
the continuing epidemic of violence and illegal drug
use, and should measure the success of programs es-
tablished to address this epidemic against clearly de-
fined goals and objectives.
‘‘(E) Drug and violence prevention programs
are most effective when implemented within a re-
search-based, drug and violence prevention frame-
work of proven effectiveness.
‘‘(F) Substance abuse and violence are intri-
cately related, and must be dealt with in a holistic
manner.
‘‘(4)(A) Technology can produce far greater op-
portunities for all students to meet high learning
standards, promote efficiency and effectiveness in
education, and help immediately and dramatically
reform our Nation’s educational system.
‘‘(B) Because most Federal and State edu-
cational technology programs have focused on ac-
quiring educational technologies, rather than empha-
sizing the utilization of those technologies in the
517
classroom and the training and infrastructure re-
quired efficiently to support the technologies, the full
potential of educational technology has rarely been
realized.
‘‘(C) The effective use of technology in edu-
cation has been inhibited by the inability of many
State educational agencies and local educational
agencies to invest in and support needed tech-
nologies, and to obtain sufficient resources to seek
expert technical assistance in developing high-quality
professional development activities for teachers and
keeping pace with the rapid technological advances.
‘‘(D) To remain competitive in the global econ-
omy, which is increasingly reliant on a workforce
that is comfortable with technology and able to inte-
grate rapid technological changes into production
processes, it is imperative that our Nation maintain
a work-ready labor force.
‘‘(b) POLICY.—Congress declares it to be the policy
of the United States—
‘‘(1) to facilitate significant innovation in ele-
mentary school and secondary school education pro-
grams;
518
‘‘(2) to enrich the learning environment of stu-
dents and expand learning opportunity for students,
including longer school days and school years;
‘‘(3) to provide a safe learning environment for
all students;
‘‘(3) to ensure that all students are techno-
logically literate; and
‘‘(4) to assist State educational agencies and
local educational agencies in building the agencies’
capacity to establish, implement, and sustain innova-
tive programs for public elementary and secondary
school students.
‘‘(c) PURPOSES.—The purposes of this title are as
follows:
‘‘(1) To provide supplementary assistance for
school improvement to elementary schools, secondary
schools, and local educational agencies—
‘‘(A) that have been or are at risk of being
identified as being in need of improvement, as
defined in section 1116 (c) and (d), to carry out
activities (as described in such schools’ or agen-
cies’ improvement plans developed under such
section) that are designed to remedy the cir-
cumstances that caused such schools or agen-
519
cies to be identified as in need of improvement;
or
‘‘(B) to improve core content curriculum
and instructional practices and materials in
core subject areas to ensure that all students
are at the proficient standard level within 10
years of the date of enactment of the Public
Education Reinvestment, Reinvention, and Re-
sponsibility Act (Three R’s).
‘‘(2) To provide assistance to local educational
agencies and schools for innovative programs and
activities that will transform schools into 21st cen-
tury opportunities for students by—
‘‘(A) creating a challenging learning envi-
ronment and facilitating academic enrichment
through innovative academic programs; or
‘‘(B) providing extra learning, time, and
opportunities for students.
‘‘(3) To provide assistance to local educational
agencies, schools, and communities to strengthen ex-
isting programs or develop and implement new pro-
grams based on proven researched-based strategies
that create safe learning environments by—
520
‘‘(A) preventing violence and other high-
risk behavior from occurring in and around
schools; and
‘‘(B) preventing the illegal use of alcohol,
tobacco, and drugs among students.
‘‘(4) To create New Economy Technology
Schools (NETs) by providing assistance to local edu-
cational agencies and schools for—
‘‘(A) the acquisition, development, inter-
connection, implementation, improvement, and
maintenance of an effective educational tech-
nology infrastructure;
‘‘(B) the acquisition and maintenance of
technology equipment and the provision of
training in the use of such equipment for teach-
ers, school library and media personnel, and ad-
ministrators;
‘‘(C) the acquisition or development of
technology-enhanced curricula and instructional
materials that are aligned with challenging
State content and student performance stand-
ards; and
‘‘(D) the acquisition or development and
implementation of high-quality professional de-
velopment for teachers in the use of technology
521
and its integration with challenging State con-
tent and student performance standards.
‘‘SEC. 6002. DEFINITIONS.
‘‘In this title:
‘‘(1) AUTHENTIC TASK.—The term ‘authentic
task’ means a real world task that—
‘‘(A) is challenging, meaningful, multidisci-
plinary, and interactive;
‘‘(B) involves reasoning, problem solving,
and composition; and
‘‘(C) is not a discrete component skill that
has no obvious connection with students’ activi-
ties outside of school.
‘‘(2) STATE.—The term ‘State’ means each of
the several States, the District of Columbia, and the
Commonwealth of Puerto Rico.
‘‘SEC. 6003. PROGRAMS AUTHORIZED.
‘‘(a) GRANTS AUTHORIZED.—From the amount ap-
propriated under section 6009 for a fiscal year, the Sec-
retary shall award a grant to each State educational agen-
cy having a State plan approved under section 6005(a)(4)
to enable the State educational agency to award grants
to local educational agencies in the State.
‘‘(b) RESERVATIONS AND ALLOTMENTS.—
522
‘‘(1) RESERVATIONS.—From the amount appro-
priated under section 6009 for a fiscal year, the Sec-
retary shall reserve—
‘‘(A) not more than 1⁄2 of 1 percent of
such amount for payments to the Bureau of In-
dian Affairs for activities, approved by the Sec-
retary, consistent with this title;
‘‘(B) not more than 1⁄2 of 1 percent of
such amounts for payments to outlying areas,
to be allotted in accordance with their respec-
tive needs for assistance under this title as de-
termined by the Secretary, for activities, ap-
proved by the Secretary, consistent with this
title; and
‘‘(C) such sums as may be necessary to
continue to support any multiyear award made
under titles III, IV, V (part B), or X (as such
titles were in effect on the day preceding the
date of enactment of the Public Education Re-
investment, Reinvention, and Responsibility Act
(Three R’s)) until the completion of the
multiyear award.
‘‘(2) STATE ALLOTMENTS.—
‘‘(A) IN GENERAL.—From the amount ap-
propriated under section 6009 for a fiscal year
523
and remaining after the Secretary makes res-
ervations under paragraph (1), the Secretary
shall allot to each State having a State plan ap-
proved under section 6005(a)(4) the sum of—
‘‘(i) an amount that bears the same
relationship to 50 percent of the remainder
as the amount the State received under
part A of title I bears to the amount all
States received under such part; and
‘‘(ii) an amount that bears the same
relationship to 50 percent of the remainder
as the school-age population in the State
bears to the school-age population in all
States.
‘‘(B) DATA.—For the purposes of deter-
mining the school-age population in a State and
in all States, the Secretary shall use the latest
available Bureau of the Census data.
‘‘(c) STATE MINIMUM.—For any fiscal year, no State
shall be allotted under this section an amount that is less
than 0.4 percent of the total amount allotted to all States
under subsection (b)(2).
‘‘(d) HOLD-HARMLESS AMOUNTS.—For fiscal year
2002, notwithstanding subsection (e), the amount allotted
to each State under this section shall be not less than 100
524
percent of the total amount the State was allotted in for-
mula grants under titles III, IV, and VI (as such titles
were in effect on the day preceding the date of enactment
of the Public Education Reinvestment, Reinvention, and
Responsibility Act (Three R’s)) for the preceding fiscal
year.
‘‘(e) RATABLE REDUCTIONS.—If the sums made
available under subsection (b)(2)(A) for any fiscal year are
insufficient to pay the full amounts that all State edu-
cational agencies are eligible to receive under that sub-
section for such year, the Secretary shall ratably reduce
such amounts for such year.
‘‘SEC. 6004. WITHIN STATE ALLOCATION.
‘‘(a) SHORT TITLE.—Each State educational agency
for a State receiving a grant award under section
6003(b)(2) shall—
‘‘(1) set aside not more than 1 percent of the
grant funds for the cost of administering the activi-
ties under this title;
‘‘(2) set aside not more than 4 percent of the
grant funds to—
‘‘(A) provide for the establishment of high-
quality, internationally competitive content and
student performance standards and strategies
that all students will be expected to meet;
525
‘‘(B) provide for the establishment of high-
quality, rigorous assessments that include mul-
tiple measures and demonstrate comprehensive
knowledge;
‘‘(C) encourage and enable all State edu-
cational agencies and local educational agencies
to develop, implement, and strengthen com-
prehensive education improvement plans that
address student achievement, teacher quality,
parent involvement, and reliable measurement
and evaluation methods; and
‘‘(D) encourage and enable all States to
develop and implement value-added assess-
ments, including model value-added assessments
identified by the Secretary under section
7004(a)(6); and
‘‘(3) using the remaining 95 percent of the
grant funds, make grants by allocating to each local
educational agency in the State having a local edu-
cational 
agency 
plan 
approved 
under 
section
6005(b)(3) the sum of—
‘‘(A) an amount that bears the same rela-
tionship to 60 percent of such remainder as the
amount the local educational agency received
under part A of title I bears to the amount all
527
‘‘(1) IN
GENERAL.—The State educational
agency for each State desiring a grant under this
title shall submit a State plan to the Secretary at
such time, in such manner, and accompanied by
such information as the Secretary may require.
‘‘(2) CONSOLIDATED PLAN.—A State plan sub-
mitted under paragraph (1) may be submitted as
part of a consolidated plan under section 8302.
‘‘(3) CONTENTS.—Each plan submitted under
paragraph (1) shall—
‘‘(A) describe how the State educational
agency will assist each local educational agency
and school served under this title to comply
with the requirements described in section 6006
that are applicable to the local educational
agency or school;
‘‘(B) certify that the State has in place the
standards and assessments required under sec-
tion 1111;
‘‘(C) certify that the State educational
agency has a system, as required under section
1111, for—
‘‘(i) holding each local educational
agency and school accountable for ade-
528
quate yearly progress (as defined in section
1111(b)(2)(B));
‘‘(ii) 
identifying 
local 
educational
agencies and schools that are in need of
improvement and corrective action (as re-
quired in sections 1116 and 1117);
‘‘(iii) assisting local educational agen-
cies and schools that are identified for im-
provement with the development of im-
provement plans; and
‘‘(iv) providing technical assistance,
professional development, and other capac-
ity building as needed to get such agencies
and schools out of improvement status;
‘‘(D) certify that the State educational
agency shall use the disaggregated results of
student assessments required under section
1111(b)(4), and other measures or indicators
available, to review annually the progress of
each local educational agency and school served
under this title to determine whether or not
each such agency and school is making ade-
quate yearly progress as required under section
1111;
529
‘‘(E) certify that the State educational
agency will take action against a local edu-
cational agency that is in corrective action and
receiving funds under this title as described in
section 6006(d)(1);
‘‘(F) describe what, if any, State and other
resources will be provided to local educational
agencies and schools served under this title to
carry out activities consisted with this title; and
‘‘(G) certify that the State educational
agency has a system to hold local educational
agencies accountable for meeting the annual
performance objectives required under sub-
section (b)(2)(C).
‘‘(4) APPROVAL.—The Secretary, using a peer
review process, shall approve a State plan if the
State plan meets the requirements of this sub-
section.
‘‘(5) DURATION
OF
THE
PLAN.—Each State
plan shall remain in effect for the duration of the
State’s participation under this title.
‘‘(6) REQUIREMENT.—A State shall not be eli-
gible to receive funds under this title unless the
State has established the standards and assessments
required under section 1111.
530
‘‘(b) LOCAL PLANS.—
‘‘(1) IN
GENERAL.—Each local educational
agency shall annually submit a local educational
agency plan to the State educational agency at such
time, in such manner, and accompanied by such in-
formation as the State educational agency may re-
quire.
‘‘(2) CONTENTS.—Each local educational agen-
cy shall—
‘‘(A) describe the programs for which
funds allocated under section 6004(3) will be
used and the reasons for the selection of such
programs;
‘‘(B) describe the methods the local edu-
cational agency will use to measure the annual
impact of programs described under subpara-
graph (A) and the extent to which such pro-
grams will increase student academic perform-
ance;
‘‘(C) describe the annual, quantifiable, and
measurable performance goals and objectives
for each program described under subparagraph
(A) and the extent to which such goals and ob-
jectives are aligned with State content and stu-
dent performance standards;
531
‘‘(D) describe how the local educational
agency will hold schools accountable for meeting
the intended performance objectives for each
program described under subparagraph (C);
‘‘(E) provide an assurance that the local
educational agency has met the local plan re-
quirements described in section 1112 for—
‘‘(i) holding schools accountable for
adequate yearly progress, including meet-
ing annual numerical goals for improving
the performance of all groups of students
based on the student performance stand-
ards set by the State under section
1111(b)(1)(D)(ii);
‘‘(ii) identifying schools for school im-
provement or corrective action;
‘‘(iii) fulfilling the local educational
agency’s school improvement responsibil-
ities described in section 1116, including
taking corrective actions under section
1116(c)(10); and
‘‘(iv) providing technical assistance,
professional development, or other capacity
building to schools served by the agency;
532
‘‘(F) certify that the local educational
agency will take action against a school that is
in corrective action and receiving funds under
this title as described under section 6006(d)(2);
‘‘(G) describe what State and local re-
sources will be contributed to carrying out pro-
grams described under subparagraph (A);
‘‘(H) provide assurances that the local edu-
cational agency consulted, at a minimum, with
parents, school board members, teachers, ad-
ministrators, business partners, education orga-
nizations, and community groups to develop the
local educational plan and select the programs
to be assisted under this title; and
‘‘(I) provide assurances that the local edu-
cational agency will continue such consultation
on a regular basis and will provide the State
with annual evidence of such consultation.
‘‘(3) APPROVAL.—The State, using a peer re-
view process, shall approve a local educational agen-
cy plan if the plan meets the requirements of this
subsection.
‘‘(4) DURATION
OF
THE
PLAN.—Each local
educational agency plan shall remain in effect for
533
the duration of the local educational agency’s par-
ticipation under this title.
‘‘(5) PUBLIC REVIEW.—Each State educational
agency will make publicly available each local edu-
cational agency plan approved under paragraph (3).
‘‘SEC. 6006. LOCAL USES OF FUNDS AND ACCOUNTABILITY.
‘‘(a) ADMINISTRATIVE EXPENSES.—Each local edu-
cational agency receiving a grant award under section
6004(3) may use not more than 1 percent of the grant
funds for any fiscal year for the cost of administering this
title.
‘‘(b) REQUIRED ACTIVITIES.—Each local educational
agency receiving a grant award under section 6004(3)
shall use the grant funds pursuant to this subsection to
establish and carry out programs that are designed to
achieve, separately or cumulatively, each of the goals de-
scribed in the category areas described in paragraphs (1)
through (4).
‘‘(1) SCHOOL IMPROVEMENT.—Each local edu-
cational agency shall use 30 percent of the grant
funds—
‘‘(A) in the case of a school that has been
identified as being in need of improvement
under section 1116(c), for activities or strate-
gies that are described in section 1116(c) that
534
focus on removing such school from improve-
ment status; or
‘‘(B) for programs that seek to raise the
academic achievement levels of all elementary
school and secondary school students based on
challenging State content and student perform-
ance standards and, to the greatest extent
possible—
‘‘(i) incorporate the best practices de-
veloped from research-based methods and
practices;
‘‘(ii) are aligned with challenging
State content and performance standards
and focused on reinforcing and boosting
the core academic skills and knowledge of
students who are struggling academically,
as determined by State assessments under
section 1111(b)(4) and local evaluations;
‘‘(iii) focus on accelerated learning
rather than remediation, so that students
will master the high level of skills and
knowledge needed to meet the highest
State standards or to perform at high lev-
els on all State assessments;
535
‘‘(iv) offer teachers, principals, and
administrators professional development
and technical assistance that are aligned
with the content of such programs; and
‘‘(v) address local needs, as deter-
mined by the local educational agency’s
evaluation of school and districtwide data.
‘‘(2) 21ST
CENTURY
OPPORTUNITIES.—Each
local educational agency shall use 25 percent of the
grant funds for—
‘‘(A) programs that provide for extra
learning, time, and opportunities for students
so that all students may achieve high levels of
learning and meet the State proficient standard
level within 10 years of the date of enactment
of the Public Education Reinvestment, Reinven-
tion, and Responsibility Act (Three R’s);
‘‘(B) programs to improve higher order
thinking skills of all students, especially dis-
advantaged students;
‘‘(C) promising innovative education re-
form projects that are consistent with chal-
lenging State content and student performance
standards; or
536
‘‘(D) programs that focus on ensuring that
disadvantaged students enter elementary school
with the basic skills needed to meet the highest
State content and student performance stand-
ards.
‘‘(3) SAFE
LEARNING
ENVIRONMENTS.—Each
local educational agency shall use 15 percent of the
grant funds for programs that help ensure that all
elementary school and secondary school students
learn in a safe and supportive environment by—
‘‘(A) reducing drugs, violence, and other
high-risk behavior in schools;
‘‘(B) providing safe, extended-day opportu-
nities for students;
‘‘(C) providing professional development
activities for teachers, principals, mental health
professionals, and guidance counselors in deal-
ing with students exhibiting distress (such as
substance abuse, disruptive behavior, and suici-
dal behavior);
‘‘(D) recruiting or retaining high-quality
mental health professionals;
‘‘(E) providing character education for stu-
dents; or
537
‘‘(F) providing alternative educational op-
portunity for violent and disruptive students; or
‘‘(G) meeting other objectives that are es-
tablished under State standards regarding safe-
ty or that address local community concerns.
‘‘(4) NEW ECONOMY TECHNOLOGY SCHOOLS.—
‘‘(A) IN GENERAL.—Each local educational
agency shall use 30 percent of the grant funds
to establish technology programs that will
transform schools into New Economy Tech-
nology Schools (NETS) and, to the greatest ex-
tent possible, will—
‘‘(i) increase student performance re-
lated to an authentic task;
‘‘(ii) integrate the use of technology
into activities that are a core part of class-
room curricula and are available to all stu-
dents;
‘‘(iii) emphasize how to use technology
to accomplish authentic tasks;
‘‘(iv) provide professional development
and technical assistance to teachers so that
teachers may integrate technology into
daily teaching activities that are directly
538
aligned with State content and student
performance standards; and
‘‘(v) enable the local educational agen-
cy annually to increase the percentage of
classrooms with access to technology, par-
ticularly in schools in which not less than
50 percent of the school-age population
comes 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))) applicable to a
family of the size involved.
‘‘(B) LIMITATION.—Each local educational
agency shall use not more than 50 percent of
the grant funds described in subparagraph (A)
to purchase, upgrade, or retrofit computer
hardware in schools in which not less than 50
percent of the school-age population comes from
families at or below the poverty line, as defined
in subparagraph (A)(v).
‘‘(c) TRANSFER OF FUNDS.—Notwithstanding sub-
section (b)—
539
‘‘(1) a local educational agency that meets ade-
quate yearly progress requirements for student per-
formance, as established by the State educational
agency under section 1111, may allocate, at the local
educational agency’s discretion, not more than 30
percent of the grant funds received under section
6004(3) among the 4 funding categories described in
subsection (b);
‘‘(2) a local educational agency that exceeds the
adequate yearly progress requirements described in
paragraph (1) by a significant amount, as deter-
mined by the State educational agency, may allocate,
at the local educational agency’s discretion, not more
than 50 percent of the grant funds received under
section 6004(3) among the 4 funding categories de-
scribed in subsection (b); and
‘‘(3) a local educational agency that is identi-
fied as in need of improvement, as defined under
section 1117, may apply not more than 25 percent
of the grant funds described in subsection (b) (2),
(3), or (4) to school improvement activities described
in subsection (b)(1).
‘‘(d) LIMITATIONS FOR SCHOOLS AND LOCAL EDU-
CATIONAL AGENCIES IN CORRECTIVE ACTION.—
540
‘‘(1) LOCAL EDUCATIONAL AGENCIES IN COR-
RECTIVE ACTION.—If a local educational agency is
identified 
for 
corrective 
action 
under 
section
1116(d), the State educational agency shall—
‘‘(A) notwithstanding any other provision
of law, specify how the local educational agency
shall spend the grant funds in order to focus
the local educational agency on activities that
will be the most effective in raising student per-
formance levels; and
‘‘(B) implement corrective action in ac-
cordance with the provisions for corrective ac-
tion described in section 1116(d).
‘‘(2) SCHOOLS IN CORRECTIVE ACTION.—If a
school is identified for corrective action under sec-
tion 1116(c), the local educational agency shall—
‘‘(A) specify how the school shall spend
grant funds received under this section in order
to focus on activities that will be the most effec-
tive in raising student performance levels; and
‘‘(B) implement corrective action in ac-
cordance with the provisions for corrective ac-
tion described in section 1116(c)(10).
‘‘(3) 
DURATION.—Limitations 
imposed 
on
schools and local educational agencies in corrective
541
action under paragraphs (1) and (2) shall remain in
effect until such time as the school or local edu-
cational agency has made sufficient improvement, as
determined by the State educational agency, and is
no longer in corrective action.
‘‘SEC. 6007. STATE AND LOCAL RESPONSIBILITIES.
‘‘(a) DATA REVIEW.—
‘‘(1) STATE AND LOCAL REVIEW.—A State edu-
cational agency shall jointly review with a local edu-
cational agency described in section 6006(d)(1) the
local educational agency’s data gathered from stu-
dent assessments and other measures required under
section 1111(b)(4), in order to determine how the
local educational agency shall spend the grant funds
pursuant to section 6006(d)(1)(A) in order to sub-
stantially increase student performance levels.
‘‘(1) SCHOOL
AND
LOCAL
REVIEW.—A local
educational agency shall jointly review with a school
described in section 6006(d)(2) the school’s data
gathered from student assessments and other meas-
ures required under section 1111(b)(4), in order to
determine how the school shall spend grant funds
pursuant to section 6006(d)(2) in order to substan-
tially increase student performance levels.
‘‘(b) TECHNICAL ASSISTANCE.—
542
‘‘(1) STATE ASSISTANCE.—
‘‘(A) A State educational agency shall pro-
vide, upon request by a local educational agency
receiving grant funds under this title, technical
assistance to the local educational agency and
schools served by the local educational agency,
including assistance in analyzing student per-
formance and the impact of programs assisted
under this title and identifying the best instruc-
tional strategies and methods for carrying out
such programs.
‘‘(B) State assistance may be provided
by—
‘‘(i) the State educational agency; or
‘‘(ii) with the local educational agen-
cy’s approval, by an institution of higher
education, a private not-for-profit or for-
profit organization, an educational service
agency, the recipient of a Federal contract
or cooperative agreement as described in
section 7005, a nontraditional entity such
as a corporation or consulting firm, or any
other entity with experience in the pro-
gram area for which the assistance is being
sought.
543
‘‘(2) LOCAL ASSISTANCE.—
‘‘(A) A local educational agency shall pro-
vide, upon request by an elementary school or
secondary school served by the agency, technical
assistance to such school, including assistance
in analyzing student performance and the im-
pact of programs assisted under this title, and
identifying the best instructional strategies and
methods for carrying out such programs.
‘‘(B) Local assistance may be provided
by—
‘‘(i) the State educational agency or
local educational agency; or
‘‘(ii) with the school’s approval, by an
institution of higher education, a private
not-for-profit or for-profit organization, an
educational service agency, the recipient of
a Federal contract or cooperative agree-
ment as described in section 7005, a non-
traditional entity such as a corporation or
consulting firm, or any other entity with
experience in the program area for which
the assistance is being sought.
544
‘‘SEC. 6008. LOCAL REPORTS.
‘‘Each local educational agency receiving funds under
this title shall annually publish and disseminate to the
public in a format and, to the extent practicable, in a lan-
guage that parents can understand, a report on—
‘‘(1) information describing the use of funds in
the 4 category areas described in section 6006(b);
‘‘(2) the impact of such programs and an as-
sessment of such programs’ effectiveness; and
‘‘(3) the local educational agency’s progress to-
ward attaining the goals and objectives described
under section 6005(b), and the extent to which pro-
grams assisted under this title have increased stu-
dent achievement.
‘‘SEC. 6009. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this title $3,500,000,000 for fiscal year 2002, and such
sums as may be necessary for each of the 4 succeeding
fiscal years.’’.
TITLE VII—ACCOUNTABILITY
SEC. 701. ACCOUNTABILITY.
Title VII of the Act (20 U.S.C. 7401 et seq.) is
amended to read as follows:
545
‘‘TITLE VII—ACCOUNTABILITY
‘‘PART A—PERFORMANCE REVIEW
‘‘SEC. 7001. SANCTIONS.
‘‘(a) THIRD FISCAL YEAR.—If performance objec-
tives established under a covered provision have not been
met by a State receiving grant funds under such provision
by the end of the third fiscal year for which the State
receives such grant funds, the Secretary shall reduce by
50 percent the amount the State is entitled to receive for
administrative expenses under such provision.
‘‘(b) FOURTH FISCAL YEAR.—If the State fails to
meet the performance objectives established under a cov-
ered provision by the end of the fourth fiscal year for
which the State receives grant funds under the covered
provision, the Secretary shall reduce the total amount the
State receives under title VI by 30 percent.
‘‘(c) DURATION.—If the Secretary determines, under
subsection (a) or (b), that a State failed to meet the per-
formance objectives established under a covered provision
for a fiscal year, the Secretary shall reduce grant funds
in accordance with subsection (a) or (b) for the State for
each subsequent fiscal year until the State demonstrates
that the State met the performance objectives for the fis-
cal year preceding the demonstration.
546
‘‘(d) TECHNICAL ASSISTANCE.—The Secretary shall
provide technical assistance, if sought, to a State subjected
to sanctions under subsection (a) or (b).
‘‘(e) LOCAL SANCTIONS.—
‘‘(1) IN GENERAL.—Each State receiving assist-
ance under title I, II, III, or VI shall develop a sys-
tem to hold local educational agencies accountable
for meeting—
‘‘(A) the performance objectives estab-
lished under part A of title II, part A of title
III, and title VI; and
‘‘(B) the adequate yearly progress require-
ments established under part A of title I, and
required under part A of title III and title VI.
‘‘(2) SANCTIONS.—A system developed under
paragraph (c) shall include a mechanism for sanc-
tioning local educational agencies for low perform-
ance with regard to failure to meet such perform-
ance objectives and adequate yearly progress levels.
‘‘(f) DEFINITIONS.—In this section:
‘‘(1) COVERED PROVISION.—The term ‘covered
provision’ means part A of title I, part A of title II,
part A of title III, and section 6005(b)(2)(C).
‘‘(2) PERFORMANCE
OBJECTIVES.—The term
‘performance objectives’ means in the case of—
547
‘‘(A) part A of title I, the adequate yearly
progress levels established under subsections
(b)(2)(A)(iii) and (b)(2)(B) of section 1111;
‘‘(B) part A of title II, the set of perform-
ance objectives established in section 2014;
‘‘(C) part A of title III, the set of perform-
ance objectives established in section 3109; and
‘‘(D) title VI, the set of performance objec-
tives set by each local educational agency in
section 6005(b)(2)(C).
‘‘SEC. 7002. REWARDING HIGH PERFORMANCE.
‘‘(a) STATE REWARDS.—
‘‘(1) IN
GENERAL.—From amounts appro-
priated under subsection (d), and from amounts
made available as a result of reductions under sec-
tion 7001, the Secretary shall make awards to
States that—
‘‘(A) for 3 consecutive years have—
‘‘(i) exceeded the States’ performance
objectives established for any title under
this Act;
‘‘(ii) exceeded their adequate yearly
progress 
levels 
established 
in 
section
1111(b);
548
‘‘(iii) significantly narrowed the gaps
between minority and non-minority stu-
dents, and between economically disadvan-
taged and non-economically disadvantaged
students;
‘‘(iv) raised all students to the pro-
ficient standard level prior to 10 years
from the date of enactment of the Public
Education Reinvention, Reinvestment, and
Responsibility Act; or
‘‘(v) significantly increased the per-
centage of core classes being taught by
fully qualified teachers teaching in schools
receiving funds under part A of title I; or
‘‘(B) by not later than fiscal year 2005,
ensure that all teachers teaching in the States’
public elementary schools and secondary schools
are fully qualified.
‘‘(2) STATE USE OF FUNDS.—
‘‘(A) DEMONSTRATION SITES.—Each State
receiving an award under paragraph (1) shall
use a portion of the award that is not distrib-
uted under subsection (b) to establish dem-
onstration sites with respect to high-performing
schools (based on achievement or performance
549
levels) objectives and adequate yearly progress
in order to help low-performing schools.
‘‘(B) IMPROVEMENT OF PERFORMANCE.—
Each State receiving an award under paragraph
(1) shall use the portion of the award that is
not used pursuant to subparagraph (A) or (C)
and is not distributed under subsection (b) for
the purpose of improving the level of perform-
ance of all elementary and secondary school
students in the State, based on State content
and performance standards.
‘‘(C) RESERVATION FOR ADMINISTRATIVE
EXPENSES.—Each State receiving an award
under paragraph (1) may set aside not more
than 1⁄2 of 1 percent of the award for the plan-
ning and administrative costs of carrying out
this section, including the costs of distributing
awards to local educational agencies.
‘‘(b) LOCAL EDUCATIONAL AGENCY AWARDS.—
‘‘(1) IN
GENERAL.—Each State receiving an
award under subsection (a)(1) shall distribute 80
percent of the award funds to local educational
agencies in the State that—
‘‘(A) for 3 consecutive years have—
550
‘‘(i) exceeded the State-established
local educational agency performance ob-
jectives established for any title under this
Act;
‘‘(ii) exceeded the adequate yearly
progress level established under section
1111(b)(2);
‘‘(iii) significantly narrowed the gaps
between minority and nonminority stu-
dents, and between economically disadvan-
taged and noneconomically disadvantaged
students;
‘‘(iv) raised all students enrolled in
schools within the local educational agency
to the proficient standard level prior to 10
years from the date of enactment of the
Public Education Reinvestment, Reinven-
tion, and Responsibility Act (Three R’s);
or
‘‘(v) significantly increased the per-
centage of core classes being taught by
fully qualified teachers teaching in schools
receiving funds under part A of title I; or
‘‘(B) not later than December 31, 2005,
ensured that all teachers teaching in the ele-
551
mentary schools and secondary schools served
by the local educational agencies are fully quali-
fied; or
‘‘(C) 
have 
attained 
consistently 
high
achievement in another area that the State
deems appropriate to reward.
‘‘(2) SCHOOL-BASED PERFORMANCE AWARDS.—
A local educational agency may use funds made
available under paragraph (1) for activities such as
school-based performance awards.
‘‘(3) RESERVATION FOR ADMINISTRATIVE EX-
PENSES.—Each local educational agency receiving
an award under paragraph (1) may set aside not
more than 1⁄2 of 1 percent of the award for the plan-
ning and administrative costs of carrying out this
section, including the costs of distributing awards to
eligible elementary schools and secondary schools,
teachers, and principals.
‘‘(c) SCHOOL REWARDS.—Each local educational
agency receiving an award under subsection (b) shall con-
sult with teachers and principals to develop a reward sys-
tem, and shall use the award funds—
‘‘(1) to reward individual schools that dem-
onstrate high performance with respect to—
552
‘‘(A) increasing the academic achievement
of all students;
‘‘(B) narrowing the academic achievement
gap described in section 1111(b)(2)(B)(vii);
‘‘(C) improving teacher quality;
‘‘(D) increasing high-quality professional
development for teachers, principals, and ad-
ministrators; or
‘‘(E) improving the English proficiency of
limited English proficient students;
‘‘(2) to reward collaborative teams of teachers,
or teams of teachers and principals, that—
‘‘(A) significantly increase the annual per-
formance of low-performing students; or
‘‘(B) significantly improve in a fiscal year
the English proficiency of limited English pro-
ficient students;
‘‘(3) to reward principals who successfully raise
the performance of a substantial number of low-per-
forming students to high academic levels;
‘‘(4) to develop or implement school district-
wide programs or policies to increase the level of
student performance on State assessments that are
aligned with State content standards; and
553
‘‘(5) to reward schools for consistently high
achievement in another area that the local edu-
cational agency deems appropriate to reward.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$200,000,000 for fiscal year 2002, and such sums as may
be necessary for each of the 4 succeeding fiscal years.
‘‘(e) DEFINITION.—The term ‘low-performing stu-
dent’ means students who are below the basic State stand-
ard level.
‘‘SEC. 7003. SUPPLEMENT NOT SUPPLANT.
‘‘A State educational agency and local educational
agency shall use funds under this title to supplement, and,
not supplant, Federal, State, and local funds that, in the
absence of funds under this title, would otherwise be spent
for activities of the type described in section 7002.
‘‘SEC. 7004. SECRETARY’S ACTIVITIES.
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of this Act, from amounts appropriated under sub-
section (b) and not reserved under subsection (c), the Sec-
retary may—
‘‘(1) support activities of the National Board
for Professional Teaching Standards;
‘‘(2) study and disseminate information regard-
ing model programs assisted under this Act;
554
‘‘(3) provide training and technical assistance
to States, local educational agencies, elementary
schools and secondary schools, Indian tribes, and
other recipients of grant funds under this Act that
are carrying out activities assisted under this Act,
including entering into contracts or cooperative
agreements with public or private nonprofit entities
or consortia of such entities, in order to provide
comprehensive training and technical assistance re-
lated to the administration and implementation of
activities assisted under this Act;
‘‘(4) support activities that will promote sys-
temic education reform at the State and local levels;
‘‘(5) award grants or contracts to public or pri-
vate nonprofit entities to enable the entities—
‘‘(A) to develop and disseminate exemplary
reading, mathematics, science, and technology
educational practices, and instructional mate-
rials to States, local educational agencies, and
elementary schools and secondary schools; and
‘‘(B) to provide technical assistance for the
implementation of teaching methods and assess-
ment tools for use by elementary schools and
secondary school students, teachers, and admin-
istrators;
555
‘‘(6) disseminate information on models of
value-added assessments;
‘‘(7) award a grant or contract to a public or
private nonprofit entity or consortium of such enti-
ties for the development and dissemination of exem-
plary programs and curricula for accelerated and ad-
vanced learning for all students, including gifted and
talented students;
‘‘(8) award a grant or contract to public or pri-
vate nonprofit entities to support and promote pro-
grams which include the distribution of inexpensive
books to students and literacy activities that moti-
vate children to read; and
‘‘(9) provide assistance to States—
‘‘(A) by assisting in the development of
English language development standards and
high-quality assessments, if requested by a
State participating in activities under subtitle A
of title III; and
‘‘(B) by developing native language tests
for limited English proficient students that a
State may administer to such students to assess
student achievement in at least reading, science,
and mathematics, consistent with section 1111.
556
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$150,000,000 for fiscal year 2002, and such sums as may
be necessary for each of the 4 succeeding fiscal years.
‘‘(c) RESERVATION.—From the amounts appro-
priated under subsection (b) the Secretary shall reserve
$10,000,000 for the purposes of carrying out activities
under section 1202(c).
‘‘(d) SPECIAL RULE FOR SECRETARY AWARDS.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this Act, a recipient of funds provided
under a direct award made by the Secretary, or a
contract or cooperative agreement entered into with
the Secretary, shall include the following in any ap-
plication or plan required under such programs:
‘‘(A) How funds provided under the pro-
gram will be used and how such use will in-
crease student academic achievement.
‘‘(B) The goals and objectives to be met,
including goals for dissemination and use of the
information or materials produced.
‘‘(C) How the recipient will track and re-
port annually to the Secretary—
‘‘(i) the successful dissemination of in-
formation or materials produced;
557
‘‘(ii) where information or materials
produced are being used; and
‘‘(iii) what is the impact of such use
and, if applicable, the extent to which such
use increased student academic achieve-
ment.
‘‘(2) REQUIREMENT.—If no application or plan
is required under a program, contract, or coopera-
tive agreement described in paragraph (1), the Sec-
retary shall require the recipient of funds to submit
a plan containing the information required under
paragraph (1).
‘‘(3) FAILURE TO ACHIEVE GOALS AND OBJEC-
TIVES.—
‘‘(A) IN
GENERAL.—The Secretary shall
evaluate the information submitted under this
subsection to determine whether the recipient
has met the goals and objectives described in
paragraph (1)(B), assess the magnitude of dis-
semination, and assess the effectiveness of the
activity funded in raising student academic
achievement in places where information or ma-
terials produced with such funds are used.
‘‘(B) INELIGIBILITY.—The Secretary shall
consider the recipient ineligible for future
558
grants under the program, contract, or coopera-
tive agreement described in paragraph (1) if—
‘‘(i) the goals and objectives described
in paragraph (1)(B) have not been met;
‘‘(ii) dissemination has not been of a
magnitude to ensure national goals are
being addressed; and
‘‘(iii) the information or materials
produced have not made a significant im-
pact on raising student achievement in
places where such information or materials
are used.
‘‘PART B—AMERICA’S EDUCATION GOALS PANEL
‘‘SEC. 7101. AMERICA’S EDUCATION GOALS PANEL.
‘‘(a) PURPOSE.—It is the purpose of this section to
establish a bipartisan mechanism for—
‘‘(1) building a national consensus for edu-
cation improvement; and
‘‘(2) reporting on progress toward achieving the
National Education Goals.
‘‘(b) AMERICA’S EDUCATION GOALS PANEL.—
‘‘(1) ESTABLISHMENT.—There is established in
the executive branch an America’s Education Goals
Panel (hereafter in this section referred to as the
559
‘Goals Panel’) to advise the President, the Secretary,
and Congress.
‘‘(2) COMPOSITION.—The Goals Panel shall be
composed of 18 members (hereafter in this section
referred to as ‘members’), including—
‘‘(A) 2 members appointed by the Presi-
dent;
‘‘(B) 8 members who are Governors, 3 of
whom shall be from the same political party as
the President and 5 of whom shall be from the
opposite political party of the President, ap-
pointed by the Chairperson and Vice Chair-
person of the National Governors’ Association,
with the Chairperson and Vice Chairperson
each appointing representatives of such Chair-
person’s or Vice Chairperson’s respective polit-
ical party, in consultation with each other;
‘‘(C) 4 Members of Congress, of whom—
‘‘(i) 1 Member shall be appointed by
the Majority Leader of the Senate from
among the Members of the Senate;
‘‘(ii) 1 Member shall be appointed by
the Minority Leader of the Senate from
among the Members of the Senate;
560
‘‘(iii) 1 Member shall be appointed by
the Majority Leader of the House of Rep-
resentatives from among the Members of
the House of Representatives; and
‘‘(iv) 1 Member shall be appointed by
the Minority Leader of the House of Rep-
resentatives from among the Members of
the House of Representatives; and
‘‘(D) 4 members of State legislatures ap-
pointed by the President of the National Con-
ference of State Legislatures, of whom 2 shall
be of the same political party as the President
of the United States.
‘‘(3) SPECIAL APPOINTMENT RULES.—
‘‘(A) IN
GENERAL.—The members ap-
pointed pursuant to paragraph (2)(B) shall be
appointed as follows:
‘‘(i) SAME
PARTY.—If the Chair-
person of the National Governors’ Associa-
tion is from the same political party as the
President, the Chairperson shall appoint 3
individuals and the Vice Chairperson of
such association shall appoint 5 individ-
uals.
561
‘‘(ii) OPPOSITE PARTY.—If the Chair-
person of the National Governors’ Associa-
tion is from the opposite political party as
the President, the Chairperson shall ap-
point 5 individuals and the Vice Chair-
person of such association shall appoint 3
individuals.
‘‘(B) SPECIAL
RULE.—If the National
Governors’ Association has appointed a panel
that meets the requirements of paragraph (2)
and subparagraph (A), except for the require-
ments of subparagraph (D) of paragraph (2),
prior to the date of enactment of the Public
Education 
Reinvestment, 
Reinvention, 
and
Responsibillity Act (Three R’s), then the mem-
bers serving on such panel shall be deemed to
be in compliance with the provisions of such
paragraph and subparagraph and shall not be
required to be reappointed pursuant to such
paragraph and subparagraph.
‘‘(C) REPRESENTATION.—To the extent
feasible, the membership of the Goals Panel
shall be geographically representative and re-
flect the racial, ethnic, and gender diversity of
the United States.
562
‘‘(4) TERMS.—The terms of service of members
shall be as follows:
‘‘(A) PRESIDENTIAL APPOINTEES.—Mem-
bers appointed under paragraph (2)(A) shall
serve at the pleasure of the President.
‘‘(B) GOVERNORS.—Members appointed
under paragraph (2)(B) shall serve for 2-year
terms, except that the initial appointments
under such paragraph shall be made to ensure
staggered terms with 1⁄2 of such members’
terms concluding every 2 years.
‘‘(C) CONGRESSIONAL
APPOINTEES
AND
STATE
LEGISLATORS.—Members 
appointed
under subparagraphs (C) and (D) of paragraph
(2) shall serve for 2-year terms.
‘‘(5) DATE
OF
APPOINTMENT.—The initial
members shall be appointed not later than 60 days
after the date of enactment of the Elementary and
Secondary Education Amendments of 1999.
‘‘(6) INITIATION.—The Goals Panel may begin
to carry out the Goals Panel’s duties under this sec-
tion when 10 members of the Goals Panel have been
appointed.
‘‘(7) VACANCIES.—A vacancy on the Goals
Panel shall not affect the powers of the Goals Panel,
563
but shall be filled in the same manner as the origi-
nal appointment.
‘‘(8) TRAVEL.—Each member may be allowed
travel expenses, including per diem in lieu of subsist-
ence, as authorized by section 5703 of title 5,
United States Code, for each day the member is en-
gaged in the performance of duties for the Goals
Panel away from the home or regular place of busi-
ness of the member.
‘‘(9) CHAIRPERSON.—
‘‘(A) IN GENERAL.—The members shall se-
lect a Chairperson from among the members.
‘‘(B) 
TERM
AND
POLITICAL
AFFILI-
ATION.—The Chairperson of the Goals Panel
shall serve a 1-year term and shall alternate be-
tween political parties.
‘‘(10) CONFLICT OF INTEREST.—A member of
the Goals Panel who is an elected official of a State
which has developed content or student performance
standards may not participate in Goals Panel con-
sideration of such standards.
‘‘(11) EX OFFICIO MEMBER.—If the President
has not appointed the Secretary as 1 of the 2 mem-
bers the President appoints pursuant to paragraph
564
(2)(A), then the Secretary shall serve as a nonvoting
ex officio member of the Goals Panel.
‘‘(c) DUTIES.—
‘‘(1) IN GENERAL.—The Goals Panel shall—
‘‘(A) report to the President, the Sec-
retary, and Congress regarding the progress the
Nation and the States are making toward
achieving America’s Education Goals, including
issuing an annual report;
‘‘(B) report on, and widely disseminate
through multiple strategies, promising or effec-
tive actions being taken at the Federal, State,
and local levels, and in the public and private
sectors, to achieve America’s Education Goals;
‘‘(C) report on, and widely disseminate on
promising or effective practices pertaining to,
the achievement of each of the 8 America’s
Education Goals; and
‘‘(D) help build a bipartisan consensus for
the reforms necessary to achieve America’s
Education Goals.
‘‘(2) REPORT.—
‘‘(A) IN GENERAL.—The Goals Panel shall
annually prepare and submit to the President,
the Secretary, the appropriate committees of
565
Congress, and the Governor of each State a re-
port that shall—
‘‘(i) assess the progress of the United
States toward achieving America’s Edu-
cation Goals; and
‘‘(ii) identify actions that should be
taken by Federal, State, and local govern-
ments.
‘‘(B) FORM; DATA.—Reports shall be pre-
sented in a form, and include data, that is un-
derstandable to parents and the general pub-
lic.’’.
TITLE VIII—GENERAL
PROVISIONS AND REPEALS
SEC. 801. REPEALS, TRANSFERS, AND REDESIGNATIONS RE-
GARDING TITLES VIII AND XIV.
(a) IN GENERAL.—The Act (20 U.S.C. 6301 et seq.)
is amended—
(1) by inserting after title VII the following:
‘‘TITLE VIII—GENERAL
PROVISIONS’’;
(2) by repealing sections 14514 and 14603 (20
U.S.C. 8904, 8923);
566
(3)(A) by transferring title XIV (20 U.S.C.
8801 et seq.) to title VIII and inserting such title
after the title heading for title VIII; and
(B) by striking the title heading for title XIV;
(4)(A) by redesignating part H of title VIII (as
redesignated by paragraph (3)) as part I of title
VIII; and
(B) by redesignating the references to part H
of title VIII as references to part I of title VIII;
(5) by inserting after part G of title VIII the
following:
‘‘PART H—SUPPLEMENT, NOT SUPPLANT
‘‘SEC. 8801. SUPPLEMENT, NOT SUPPLANT.
‘‘A State educational agency or local educational
agency shall use funds received under the Act to supple-
ment, and not supplant, State and local funds that, in the
absence of funds under this Act, would otherwise be spent
for activities under this Act.’’;
(6) by redesignating the references to title XIV
as references to title VIII;
(7)(A) by redesignating sections 14101 through
14103 (20 U.S.C. 8801, 8803) (as transferred by
paragraph (3)) as sections 8101 through 8103, re-
spectively; and
567
(B) by redesignating the references to such sec-
tions 14101 through 14103 as references to sections
8101 through 8103, respectively;
(8)(A) by redesignating sections 14201 through
14206 (20 U.S.C. 8821, 8826) (as transferred by
paragraph (3)) as sections 8201 through 8206, re-
spectively; and
(B) by redesignating the references to such sec-
tions 14201 through 14206 as references to sections
8201 through 8206, respectively;
(9)(A) by redesignating sections 14301 through
14307 (20 U.S.C. 8851, 8857) (as transferred by
paragraph (3)) as sections 8301 through 8307, re-
spectively; and
(B) by redesignating the references to such sec-
tions 14301 through 14307 as references to sections
8301 through 8307, respectively;
(10)(A) by redesignating section 14401 (20
U.S.C. 8881) (as transferred by paragraph (3)) as
section 8401; and
(B) by redesignating the references to such sec-
tion 14401 as references to section 8401;
(11)(A) 
by 
redesignating 
sections 
14501
through 14513 (20 U.S.C. 8891, 8903) (as trans-
568
ferred by paragraph (3)) as sections 8501 through
8513, respectively; and
(B) by redesignating the references to such sec-
tions 14501 through 14513 as references to sections
8501 through 8513, respectively;
(12)(A) by redesignating sections 14601 and
14602 (20 U.S.C. 8921, 8922) (as transferred by
paragraph (3)) as sections 8601 and 8602, respec-
tively; and
(B) by redesignating the references to such sec-
tions 14601 and 14602 as references to sections
8601 and 8602, respectively;
(13)(A) by redesignating section 14701 (20
U.S.C. 8941) (as transferred by paragraph (3)) as
section 8701; and
(B) by redesignating the references to such sec-
tion 14701 as references to section 8701; and
(14)(A) by redesignating sections 14801 and
14802 (20 U.S.C. 8961, 8962) (as transferred by
paragraph (3)) as sections 8901 and 8902, respec-
tively; and
(B) by redesignating the references to such sec-
tions 14801 and 14802 as references to sections
8901 and 8902, respectively.
569
(b) AMENDMENTS.—Title VIII (as so transferred and
redesignated) is amended—
(1) in section 8101(10) (as redesignated by
subsection (7)(A))—
(A) by striking subparagraphs (C) through
(F); and
(B) by adding after subparagraph (B) the
following:
‘‘(C) part A of title II;
‘‘(D) part A of title III; and
‘‘(E) title IV.’’;
(2) in section 8102 (as redesignated by sub-
section (a)(7)), by striking ‘‘VIII’’ and inserting
‘‘V’’;
(3) in section 8201 (as redesignated by sub-
section (a)(8))—
(A) in subsection (a)(2), by striking ‘‘, and
administrative funds under section 308(c) of
the Goals 2000: Educate America Act’’; and
(B) by striking subsection (f);
(4) in section 8203(b) (as redesignated by sub-
section (a)(8)), by striking ‘‘Improving America’s
Schools Act of 1994’’ and inserting ‘‘Public Edu-
cation Reinvestment, Reinvention, and Responsibility
Act (Three R’s)’’;
570
(5) in section 8204 (as redesignated by sub-
section (a)(8))—
(A) by striking subsection (b); and
(B) in subsection (a)—
(i) in paragraph (2)—
(I) in the matter preceding sub-
paragraph (A), by striking ‘‘1995’’
and inserting ‘‘2002’’;
(II) in subparagraph (B), by in-
serting ‘‘professional development,’’
after ‘‘curriculum development,’’; and
(ii) in paragraph (4)—
(I) by striking ‘‘and section
410(b) of the Improving America’s
Schools Act of 1994’’; and
(II) by striking ‘‘paragraph (2)’’
and inserting ‘‘subsection (a)(2)’’;
(III) by striking the following:
‘‘(4) RESULTS.—’’ and inserting the following:
‘‘(b) RESULTS.—’’;
(IV) by striking the following:
‘‘(A) develop’’ and inserting the following:
‘‘(1) develop’’; and
(V) by striking the following:
‘‘(B) within’’ and inserting the following:
571
‘‘(2) within’’;
(6) in section 8205(a)(1) (as redesignated by
subsection (a)(8)), by striking ‘‘part A of title IX’’
and inserting ‘‘part B of title III’’;
(7) in section 8206 (as redesignated by sub-
section (a)(8))—
(A) by striking ‘‘(a) UNNEEDED PROGRAM
FUNDS.—’’; and
(B) by striking subsection (b);
(8) in section 8302(a)(2) (as redesignated by
subsection (a)(9))—
(A) by striking subparagraph (C); and
(B) by redesignating subparagraphs (D)
and (E) as subparagraphs (C) and (D), respec-
tively;
(9) in section 8304(b) (as redesignated by sub-
section (a)(9)), by striking ‘‘Improving America’s
Schools Act of 1994’’ and inserting ‘‘Public Edu-
cation Reinvestment, Reinvention, and Responsibility
Act (Three R’s)’’;
(10) in section 8401 (as redesignated by sub-
section (a)(10))—
(A) in subsection (a), by striking ‘‘Except
as provided in subsection (c),’’ and inserting
‘‘Notwithstanding any other provision regarding
572
waivers in this Act and except as provided in
subsection (c),’’; and
(B) in subsection (c)(8), by striking ‘‘part
C of title X’’ and inserting ‘‘part B of title IV’’;
(11) in section 8502 (as redesignated by sub-
section (a)(11)), by striking ‘‘VIII’’ and inserting
‘‘V’’;
(12) in section 8503(b)(1) (as redesignated by
subsection (a)(11))—
(A) by striking subparagraphs (B) through
(E);
(B) by adding :
‘‘(B) professional development activities in
title II;
‘‘(C) title III;
‘‘(D) title VI.’’; and
(13) in section 8506(d) (as redesignated by
subsection (a)(11)), by striking ‘‘Improving Amer-
ica’s Schools Act of 1994’’ and inserting ‘‘Public
Education Reinvestment, Reinvention, and Responsi-
bility Act (Three R’s)’’;
(14) in section 8513 (as redesignated by sub-
section (a)(11)), by striking ‘‘Improving America’s
Schools Act of 1994’’ each place it appears and in-
573
serting ‘‘Public Education Reinvestment, Reinven-
tion, and Responsibility Act (Three R’s)’’;
(15) in section 8601 (as redesignated by sub-
section (a)(12))—
(A) in subsection (b)(3)—
(i) in subparagraph (A), by striking
‘‘Improving America’s Schools Act of
1994’’ and inserting ‘‘Public Education
Reinvestment, Reinvention, and Responsi-
bility Act (Three R’s)’’; and
(ii) in subparagraph (B), by striking
‘‘Improving America’s Schools Act’’ and
inserting ‘‘Public Education Reinvestment,
Reinvention, and Responsibility Act (Three
R’s)’’; and
(B) in subsection (f), by striking ‘‘Improv-
ing America’s Schools Act of 1994’’ and insert-
ing ‘‘Public Education Reinvestment, Reinven-
tion, and Responsibility Act (Three R’s)’’; and
(16) in section 8701(b) (as redesignated by
subsection (a)(13))—
(A) in paragraph (1)—
(i) in subparagraph (B)—
(I) in clause (i), by striking ‘‘Im-
proving America’s Schools Act of
574
1994’’ and inserting ‘‘Public Edu-
cation Reinvestment, Reinvention, and
Responsibility Act (Three R’s)’’; and
(II) in clause (ii), by striking
‘‘such as the initiatives under the
Goals 2000: Educate America Act,
and’’ and inserting ‘‘under’’; and
(ii) in subparagraph (C)(ii), by strik-
ing ‘‘the School-to-Work Opportunities Act
of 1994, and the Goals 2000: Educate
America Act’’ and inserting ‘‘and the
School-to-Work 
Opportunities 
Act 
of
1994’’; and
(B) in paragraph (3), by striking ‘‘1998’’
and inserting ‘‘2004’’.
SEC. 802. OTHER REPEALS.
Titles V, X, XI, XII, and XIII (20 U.S.C. 7201 et
seq., 8001 et seq., 8401 et seq., 8501 et seq., 8601 et
seq.) and the Goals 2000: Educate America Act (20
U.S.C. 5801 et seq.) are repealed.
Æ