SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reading First Improvement Act''.

SEC. 2. PROGRESS REPORT.

    Section 1202(e)(2) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6362(e)(5)) is amended by striking ``peer review 
panel'' and inserting ``Committee''.

SEC. 3. PEER REVIEW.

    Section 1203(c)(2) of that Act (20 U.S.C. 6363(c)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) in the first sentence, by striking ``a panel'' 
                and inserting ``a Reading First Advisory Committee''; 
                and
                    (B) in the second sentence, by striking ``panel'' 
                and inserting ``Committee'';
            (2) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (C) and (D), respectively;
            (3) by inserting after subparagraph (A) the following:
                    ``(B) Limitation.--The Committee shall not be 
                comprised of a majority of members selected by one 
                individual or entity described in subparagraph (A).'';
            (4) in subparagraph (C) (as redesignated by paragraph (2)) 
        by striking ``panel'' and inserting ``Committee'';
            (5) in subparagraph (D) (as redesignated by paragraph (2)) 
        by striking ``panel'' and inserting ``Committee''; and
            (6) by adding at the end the following:
                    ``(E) Subcommittees.--
                            ``(i) In general.--At its sole discretion, 
                        the Committee may form one or more 
                        subcommittees to assist the Committee with the 
                        functions described in this paragraph.
                            ``(ii) Representation.--If the Committee 
                        chooses to form such subcommittees, each 
                        subcommittee shall include at least one member 
                        selected by each individual or entity described 
                        in subparagraph (A), and in no case shall be 
                        comprised of a majority of members selected by 
                        one such entity. Members of the Committee may 
                        serve on one or more subcommittees.
                            ``(iii) Committee review.--The Committee 
                        shall review the recommendations of each 
                        subcommittee, and, following such review, make 
                        a final recommendation to the Secretary in 
                        accordance with subparagraph (D).
                    ``(F) Governance.--The Federal Advisory Committee 
                Act (5 U.S.C. App.) shall govern the activities of the 
                Committee.
                    ``(G) Conflicts of interest.--
                            ``(i) In general.--The Secretary shall 
                        establish a process through which members of 
                        the Committee or any subcommittees will be 
                        screened for potential conflicts of interest.
                            ``(ii) Screening.--Such screening process 
                        shall--
                                    ``(I) be reviewed and approved by 
                                the Office of General Counsel of the 
                                Department;
                                    ``(II) include, at a minimum, a 
                                review of each potential Committee or 
                                subcommittee member's connection to any 
                                State's program under this subpart, 
                                each potential Committee or 
                                subcommittee member's potential 
                                financial interest in products that 
                                might be purchased by a State 
                                educational agency or local educational 
                                agency in the course of such agency's 
                                implementation of the program under 
                                this subpart, and each potential 
                                Committee or subcommittee member's 
                                professional connections to teaching 
                                methodologies that might require the 
                                use of specific products; and
                                    ``(III) be designed to prevent, to 
                                the extent possible, bias or the 
                                appearance thereof in the Committee's 
                                performance of its responsibilities 
                                under this paragraph.
                    ``(H) Guidance.--
                            ``(i) In general.--The Secretary shall 
                        develop guidance for how the Committee and any 
                        subcommittees created in accordance with 
                        subparagraph (E) will review applications 
                        submitted under this section and provide 
                        feedback to State educational agencies and 
                        recommendations to the Secretary. The Secretary 
                        shall also develop guidance for how the 
                        Secretary will review the recommendations of 
                        the Committee and any subcommittees and make 
                        final determinations of approval or disapproval 
                        of an application submitted under this section.
                            ``(ii) Requirements.--Such guidance shall, 
                        at a minimum--
                                    ``(I) create a transparent process 
                                through which the Committee and 
                                subcommittees provide clear, 
                                consistent, and publicly available 
                                documentation in support of all 
                                recommendations;
                                    ``(II) ensure that the Committee 
                                reviews any subcommittee feedback prior 
                                to that feedback being submitted to a 
                                State educational agency;
                                    ``(III) ensure that State 
                                educational agencies have the 
                                opportunity for direct interaction with 
                                the Committee and any subcommittee, as 
                                appropriate, when revising an 
                                application under this section as a 
                                result of feedback submitted by the 
                                Committee or a subcommittee;
                                    ``(IV) require that the Committee, 
                                any subcommittee, and the Secretary 
                                clearly and consistently document that 
                                all criteria contained in subsection 
                                (b) are met before an application 
                                submitted under this section is 
                                approved; and
                                    ``(V) create a transparent process 
                                through which the Secretary clearly, 
                                consistently, and publicly documents 
                                decisions to approve or disapprove an 
                                application submitted under this 
                                section and the reasons for such 
                                decisions.''.

SEC. 4. TARGETED ASSISTANCE GRANTS.

    Section 1204(c)(2) of such Act (20 U.S.C. 6364(c)(2)) is amended--
            (1) in the first sentence, by striking ``peer review 
        panel'' and inserting ``Committee''; and
            (2) in the second sentence, by striking ``panel'' and 
        inserting ``Committee''.

SEC. 5. EXTERNAL EVALUATION.

    Section 1205 of such Act (20 U.S.C. 6365) is amended by adding at 
the end the following:
    ``(e) Limitation.--
            ``(1) In general.--The Secretary shall ensure that the 
        independent organization described in subsection (a) does not 
        hold a contract or subcontract to implement any aspect of the 
        program under this subpart.
            ``(2) Subcontractors.--The contract entered into under 
        subsection (a) shall prohibit the independent organization 
        conducting the evaluation from subcontracting with any entity 
        that holds a contract or subcontract for any aspect of the 
        implementation of this subpart.''.

SEC. 6. NATIONAL ACTIVITIES.

    Section 1206 of that Act (20 U.S.C. 6366) is amended--
            (1) by inserting before ``From funds'' the following:
    ``(a) Technical Assistance and Evaluation.--''; and
            (2) by adding at the end the following:
    ``(b) Contracts for Technical Assistance.--
            ``(1) In general.--The Secretary may enter into contracts 
        with independent entities to perform the activities described 
        in subsection (a)(1).
            ``(2) Conflicts of interest.--
                    ``(A) In general.--If the Secretary enters into 
                such contracts, the Secretary shall--
                            ``(i) ensure that such contracts require 
                        the contracted entity to screen for conflicts 
                        of interest when hiring individuals to carry 
                        out the responsibilities under the contract;
                            ``(ii) ensure that such contracts require 
                        the contracted entity to include the 
                        requirement in clause (i) in any subcontracts 
                        such entity enters into to fulfill the 
                        responsibilities described in paragraph (1).
                    ``(B) Screening process.--The screening process 
                described in subparagraph (A) shall--
                            ``(i) include, at a minimum, a review of 
                        each individual performing duties under the 
                        contract or subcontract for connections to any 
                        State's program under this subpart, potential 
                        financial interests in, or other connection to, 
                        products that might be purchased by a State 
                        educational agency or local educational agency 
                        in the course of such agency's implementation 
                        of the program under this subpart, and 
                        connections to teaching methodologies that 
                        might require the use of specific products; and
                            ``(ii) be designed to prevent, to the 
                        extent possible, bias or the appearance thereof 
                        in the performance of the responsibilities 
                        outlined in the contract or subcontract.
            ``(3) Information dissemination.--If the Secretary enters 
        into such contracts, and if a contracted entity enters into 
        such subcontracts, those contracts and subcontracts shall 
        require the technical assistance providers to clearly separate 
        technical assistance provided under such contract or 
        subcontract from information provided, or activities engaged 
        in, as part of the normal operations of the contractor or 
        subcontractor. Efforts to comply with this paragraph may 
        include, but are not limited to, the creation of separate web 
        pages for the purpose of fulfilling a contract or subcontract 
        entered into under this subsection.''.

SEC. 7. PROHIBITION ON FEDERAL GOVERNMENT.

    Subpart 1 of part B of title I of that Act is amended by adding 
after section 1208 (20 U.S.C. 6368) the following:

``SEC. 1209. PROHIBITION ON FEDERAL GOVERNMENT.

    ``(a) In General.--Nothing in this subpart shall be construed to 
alter or lessen the prohibition contained in section 9527(b) of this 
Act or section 103(b) of the Department of Education Organization Act 
(20 U.S.C. 3403(b)).
    ``(b) Guidance.--
            ``(1) In general.--The Secretary shall develop guidance for 
        Department employees responsible for the implementation of this 
        subpart that will assist those employees in complying with the 
        prohibitions included in subsection (a).
            ``(2) Consultation.--Such guidance shall emphasize the 
        importance of consultation with the Office of General Counsel 
        of the Department on issues related to such prohibitions.
            ``(3) Technical assistance.--Such guidance shall stress 
        that any information disseminated, or technical assistance 
        provided, related to this subpart, shall represent multiple 
        perspectives and not in any way endorse or appear to endorse 
        any particular product or service that might be purchased by a 
        State educational agency or local educational agency in the 
        course of such agency's implementation of the program under 
        this subpart.''.
Output: Reading First Improvement Act - Amends the Elementary and Secondary Education Act of 1965 to provide for the creation of a Reading First Advisory Committee, governed by the Federal Advisory Committee Act, to replace the peer review panel that reviews state grant applications under the Reading First program, designed to improve the reading skills of children in kindergarten through grade three.

Prohibits the Committee from being composed of a majority of members selected by one individual or entity. Allows the Committee to form one or more subcommittees. Directs the Secretary of Education to: (1) establish a process to screen Committee or subcommittee members for potential conflicts of interest; and (2) develop guidance for how the Committee and any subcommittees will review applications, and provide feedback to states and the Secretary.

Directs the Secretary to ensure that the independent organization tasked with evaluating the Reading First program does not hold a contract or subcontract to implement any aspect of the program and does not subcontract with an entity that has such a conflict.

Authorizes the Secretary to contract with independent entities for the provision of Reading First technical assistance to states, local educational agencies, and schools; but requires such entities and their subcontractors to screen potential employees for conflicts of interest and clearly separate their provision of such technical assistance from their other activities.

Directs the Secretary to provide guidance to Department of Education employees implementing the program on compliance with the prohibition against federal government usurpation of state or local control over school administration.