A bill to establish a demonstration project to increase teacher salaries and employee benefits for teachers who enter into contracts with local educational agencies to serve as master teachers.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Master Teacher Act of 2001''.

SEC. 2. MASTER TEACHER DEMONSTRATION PROJECT.

    (a) Definitions.--In this section:
            (1) Local educational agency.--The term ``local educational 
        agency'' has the meaning given the term in section 14101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        8801).
            (2) Master teacher.--The term ``master teacher'' means a 
        teacher who--
                    (A) is licensed or credentialed under State law;
                    (B) has been teaching for at least 5 years in a 
                public or private school or institution of higher 
                education;
                    (C) is selected upon application, is judged to be 
                an excellent teacher, and is recommended by 
                administrators and other teachers who are knowledgeable 
                of the individual's performance;
                    (D) at the time of submission of such application, 
                is teaching and based in a public school;
                    (E) assists other teachers in improving 
                instructional strategies, improves the skills of other 
                teachers, performs mentoring, develops curriculum, and 
                offers other professional development; and
                    (F) enters into a contract with the local 
                educational agency to continue to teach and serve as a 
                master teacher for at least 5 additional years.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
    (b) Establishment of Demonstration Project.--
            (1) In general.--Not later than July 1, 2002, the Secretary 
        shall conduct a demonstration project under which the Secretary 
        shall award competitive grants to local educational agencies to 
        increase teacher salaries and employee benefits for teachers 
        who enter into contracts with the local educational agencies to 
        serve as master teachers.
            (2) Requirements.--In awarding grants under the 
        demonstration project, the Secretary shall--
                    (A) ensure that grants are awarded under the 
                demonstration project to a diversity of local 
                educational agencies in terms of size of school 
                district, location of school district, ethnic and 
                economic composition of students, and experience of 
                teachers; and
                    (B) give priority to local educational agencies in 
                school districts that have schools with a high 
                proportion of economically disadvantaged students.
    (c) Applications.--In order to receive a grant under the 
demonstration project, a local educational agency shall submit an 
application to the Secretary that contains--
            (1) an assurance that funds received under the grant will 
        be used in accordance with this section; and
            (2) a detailed description of how the local educational 
        agency will use the grant funds to pay the salaries and 
        employee benefits for positions designated by the local 
        educational agency as master teacher positions.
    (d) Matching Requirement.--The Secretary may not award a grant to a 
local educational agency under the demonstration project unless the 
local educational agency agrees that, with respect to costs to be 
incurred by the agency in carrying out activities for which the grant 
was awarded, the agency shall provide (directly, through the State, or 
through a combination thereof) in non-Federal contributions an amount 
equal to the amount of the grant awarded to the agency.
    (e) Study and Report.--
            (1) In general.--Not later than July 1, 2005, the Secretary 
        shall conduct a study and transmit a report to Congress 
        analyzing the results of the demonstration project conducted 
        under this section.
            (2) Contents of report.--The report shall include--
                    (A) an analysis of the results of the project on--
                            (i) the recruitment and retention of 
                        experienced teachers;
                            (ii) the effect of master teachers on 
                        teaching by less experienced teachers;
                            (iii) the impact of mentoring new teachers 
                        by master teachers; and
                            (iv) the impact of master teachers on 
                        student achievement; and
                    (B) recommendations regarding--
                            (i) continuing or terminating the 
                        demonstration project; and
                            (ii) establishing a grant program to expand 
                        the project to additional local educational 
                        agencies and school districts.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section, $100,000,000, for the period of 
fiscal years 2002 through 2006.

Summary: Master Teacher Act of 2001 - Directs the Secretary of Education to conduct a demonstration project to increase teacher salaries and employee benefits for teachers who contract with local educational agencies (LEAs) to serve as master teachers. Gives priority to LEAs in school districts that have schools with a high proportion of economically disadvantaged students.