I
107TH CONGRESS
1ST SESSION
H. R. 1036
To amend the Elementary and Secondary Education Act of 1965 to reduce
class size through the use of fully qualified teachers, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 14, 2001
Mr. WU (for himself, Mr. GEORGE MILLER of California, Mr. KILDEE, Mr.
OWENS, Mr. PAYNE, Mrs. MINK of Hawaii, Mr. ANDREWS, Mr. SCOTT,
Ms. WOOLSEY, Ms. RIVERS, Mrs. MCCARTHY of New York, Mr.
TIERNEY, Mr. KIND, Mr. FORD, Mr. KUCINICH, Ms. SOLIS, Mr. HOLT,
Mr. HINOJOSA, Ms. MCCOLLUM, and Mrs. DAVIS of California) intro-
duced the following bill; which was referred to the Committee on Edu-
cation and the Workforce
A BILL
To amend the Elementary and Secondary Education Act
of 1965 to reduce class size through the use of fully
qualified teachers, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CLASS SIZE REDUCTION.
Title VI of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6601 et seq.) is amended—
(1) by striking ‘‘this title’’ each place such term
appears and inserting ‘‘this title (excluding part
E)’’; and
(2) by adding at the end the following:
‘‘PART E—CLASS SIZE REDUCTION
‘‘SEC. 6501. GRANT PROGRAM.
‘‘(a) PURPOSE.—The purposes of this section are—
‘‘(1) to reduce class size through the use of
fully qualified teachers;
‘‘(2) to assist States and local educational agen-
cies in recruiting, hiring, and training 100,000
teachers in order to reduce class sizes nationally, in
grades 1 through 3, to an average of 18 students
per regular classroom; and
‘‘(3) to improve teaching in those grades so
that all students can learn to read independently
and well by the end of the 3d grade.
‘‘(b) ALLOTMENT TO STATES.—
‘‘(1) RESERVATION.—From the amount made
available to carry out this part for a fiscal year, the
Secretary shall reserve not more than 1 percent for
the Secretary of the Interior (on behalf of the Bu-
reau of Indian Affairs) and the outlying areas for
activities carried out in accordance with this section.
‘‘(2) STATE ALLOTMENTS.—
‘‘(A) HOLD HARMLESS.—
‘‘(i) IN
GENERAL.—Subject to sub-
paragraph (B) and clause (ii), from the
amount made available to carry out this
part for a fiscal year and not reserved
under paragraph (1), the Secretary shall
allot to each State an amount equal to the
amount that such State received for the
preceding fiscal year under this section or
section 306 of the Department of Edu-
cation Appropriations Act, 2001, as the
case may be.
‘‘(ii) RATABLE
REDUCTION.—If the
amount made available to carry out this
part for a fiscal year and not reserved
under paragraph (1) is insufficient to pay
the full amounts that all States are eligible
to receive under clause (i) for such fiscal
year, the Secretary shall ratably reduce
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
amount made available to carry out this
part and not reserved under paragraph (1)
exceeds the amount made available to the
States for the preceding year under the au-
thorities described in subparagraph (A)(i),
the Secretary shall allot to each of those
States the percentage of the excess amount
that is the greater of—
‘‘(I) the percentage the State re-
ceived for the preceding fiscal year of
the total amount made available to
the States under section 1122; or
‘‘(II) the percentage so received
of the total amount made available to
the States under section 2202(b).
‘‘(ii) RATABLE REDUCTIONS.—If the
excess amount for a fiscal year is insuffi-
cient to pay the full amounts that all
States are eligible to receive under clause
(i) for such fiscal year, the Secretary shall
ratably reduce such amounts for such fis-
cal year.
‘‘(c) ALLOCATION TO LOCAL EDUCATIONAL AGEN-
CIES.—
‘‘(1) ALLOCATION.—Each State that receives
funds under this section shall allocate 100 percent
of those funds to local educational agencies, of
which—
‘‘(A) 80 percent shall be allocated to those
local educational agencies in proportion to the
number of children, age 5 through 17, 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, who reside
in the school district served by that local edu-
cational agency for the most recent fiscal year
for which satisfactory data are available, com-
pared to the number of those children who re-
side in the school districts served by all the
local educational agencies in the State for that
fiscal year; and
‘‘(B) 20 percent shall be allocated to those
local educational agencies in accordance with
the relative enrollments of children, age 5
through 17, in public and private nonprofit ele-
mentary schools and secondary schools within
the areas served by those agencies.
‘‘(2) EXCEPTION.—Notwithstanding paragraph
(1) and subsection (d)(2)(B), if the award to a local
educational agency under this section is less than
the starting salary for a new fully qualified teacher
for a school served by that agency, that agency may
use funds made available under this section to—
‘‘(A) help pay the salary of a full- or part-
time fully qualified teacher hired to reduce class
size, which may be done in combination with
the expenditure of other Federal, State, or local
funds; or
‘‘(B) pay for activities described in sub-
section (d)(2)(A)(iii) that may be related to
teaching in smaller classes.
‘‘(d) USE OF FUNDS.—
‘‘(1) MANDATORY
USES.—Each local edu-
cational agency that receives funds under this sec-
tion shall use those funds to carry out effective ap-
proaches to reducing class size through use of fully
qualified teachers to improve educational achieve-
ment for both regular and special needs children,
with particular consideration given to reducing class
size in the early elementary grades for which some
research has shown class size reduction is most ef-
fective.
‘‘(2) PERMISSIBLE USES.—
‘‘(A) IN GENERAL.—Each such local edu-
cational agency may use funds made available
under this section for—
‘‘(i) recruiting (including through the
use of signing bonuses, and other financial
incentives), hiring, and training fully quali-
fied regular and special education teachers
(which may include hiring special edu-
cation teachers to team-teach with regular
teachers in classrooms that contain both
children with disabilities and non-disabled
children) and teachers of special needs
children;
‘‘(ii) testing new teachers for aca-
demic content knowledge, and to meet
State certification or licensing require-
ments that are consistent with title II of
the Higher Education Act of 1965; and
‘‘(iii) providing professional develop-
ment (which may include such activities as
promoting retention and mentoring) for
teachers, including special education teach-
ers and teachers of special needs children,
in order to meet the goal of ensuring that
all teachers have the general knowledge,
teaching skills, and subject matter knowl-
edge necessary to teach effectively in the
content areas in which the teachers teach,
consistent with title II of the Higher Edu-
cation Act of 1965.
‘‘(B) LIMITATION ON TESTING AND PRO-
FESSIONAL DEVELOPMENT.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), a local educational
agency may use not more than a total of
25 percent of the funds received by the
agency under this section for activities de-
scribed in clauses (ii) and (iii) of subpara-
graph (A).
‘‘(ii) SPECIAL
RULE.—A local edu-
cational agency may use more than 25 per-
cent of the funds the agency receives under
this section for activities described in sub-
paragraph (A)(iii) for the purpose of help-
ing teachers who are not yet fully qualified
in attaining full qualification if 10 percent
or more of the elementary school classes in
a school are taught by individuals who are
not fully qualified teachers or the State
educational agency has waived State cer-
tification or licensing requirements for 10
percent or more of such teachers.
‘‘(C) USE OF FUNDS BY AGENCIES THAT
HAVE REDUCED CLASS SIZE.—Notwithstanding
subparagraph (B), a local educational agency
that has already reduced class size in the early
elementary grades to 18 or fewer children (or
has already reduced class size to a State or
local class size reduction goal that was in effect
on November 28, 1999 if that goal is 20 or
fewer children) may use funds received under
this section—
‘‘(i) to make further class size reduc-
tions in kindergarten through third grade;
‘‘(ii) to reduce class size in other
grades; or
‘‘(iii) to carry out activities to improve
teacher quality, including professional de-
velopment.
‘‘(3) SUPPLEMENT, 
NOT
SUPPLANT.—Each
such agency shall use funds made available under
this section only to supplement, and not to supplant,
State and local funds that, in the absence of funds
made available under this section, would otherwise
be expended for activities described in this section.
‘‘(4) LIMITATION ON USE FOR SALARIES AND
BENEFITS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), no funds made available
under this section may be used to increase the
salaries of, or provide benefits (other than par-
ticipation in professional development and en-
richment programs) to, teachers who are not
hired under this section.
‘‘(B) EXCEPTION.—Funds made available
under this section may be used to pay the sala-
ries of teachers hired under section 306 of the
Department of Education Appropriations Act,
2001.
‘‘(e) REPORTS.—
‘‘(1) STATE ACTIVITIES.—Each State receiving
funds under this section shall prepare and submit to
the Secretary a biennial report on activities carried
out in the State under this section that provides the
information described in section 6202(a)(2) with re-
spect to the activities.
‘‘(2) PROGRESS CONCERNING CLASS SIZE AND
QUALIFIED TEACHERS.—Each State and local edu-
cational agency receiving funds under this section
shall annually report to parents and the public, in
numeric form as compared to the previous year,
on—
‘‘(A) the agency’s progress in reducing
class size, and increasing the percentage of
classes in core academic areas taught by fully
qualified teachers; and
‘‘(B) the impact that hiring additional fully
qualified teachers and reducing class size, has
had, if any, on increasing student academic
achievement.
‘‘(3) NOTICE.—Each local educational agency
that receives funds under this section shall provide
to each individual parent of a child who attends a
school in such local educational agency timely, writ-
ten notice if the child has been assigned or has been
taught for 2 or more consecutive weeks by a sub-
stitute teacher, as defined by such local educational
agency, or a teacher who is not fully qualified.
‘‘(f) PRIVATE SCHOOLS.—If a local educational agen-
cy uses funds made available under this section for profes-
sional development activities, the agency shall ensure the
equitable participation of private nonprofit elementary
schools and secondary schools in such activities in accord-
ance with section 6402. Section 6402 shall not apply to
other activities carried out under this section.
‘‘(g) ADMINISTRATIVE
EXPENSES.—A local edu-
cational agency that receives funds under this section may
use not more than 3 percent of such funds for local admin-
istrative costs.
‘‘(h) REQUEST FOR FUNDS.—Each local educational
agency that desires to receive funds under this section
shall include in the application required under section
6303 a description of the agency’s program to reduce class
size by hiring additional fully qualified teachers.
‘‘(i) 
CERTIFICATION, 
LICENSING, 
AND
COM-
PETENCY.—No funds made available under this section
may be used to pay the salary of any teacher unless such
teachers is fully qualified.
‘‘(j) DEFINITIONS.—As used in this section—
‘‘(1) the term ‘certified’ includes certification
through State or local alternative routes; and
‘‘(2) the term ‘fully qualified’—
‘‘(A) when used with respect to an elemen-
tary or secondary school teacher, means that
the teacher has obtained certification or passed
the State licensing exam and holds a license;
and
‘‘(B) when used with respect to—
‘‘(i) an elementary school teacher,
means that the teacher holds a bachelor’s
degree and demonstrates general knowl-
edge, teaching skill, and subject matter
knowledge required to teach at the elemen-
tary school level in the core academic sub-
jects; or
‘‘(ii) a middle or secondary school
teacher, means that the teacher holds a
bachelor’s degree and demonstrates a high
level of competency in all subject areas in
which he or she teaches through—
‘‘(I) a high level of performance
on a rigorous academic subject area
test; or
‘‘(II) completion of an academic
major in each of the subject areas in
which he or she provides instruction.
‘‘SEC. 6502. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this part $2,000,000,000 for fiscal year 2002 and such
sums as may be necessary for fiscal years 2003 through
2006.’’.
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