Title I, Part A Statute

TITLE I—IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED


PART A—IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES
Subpart 1—Basic Program Requirements
Sec. 1111. State plans.
Sec. 1112. Local educational agency plans.
Sec. 1113. Eligible school attendance areas.
Sec. 1114. Schoolwide programs.
Sec. 1115. Targeted assistance schools.
Sec. 1116. Academic assessment and local educational agency and school improvement.
Sec. 1117. School support and recognition.
Sec. 1118. Parental involvement.
Sec. 1119. Qualifications for teachers and paraprofessionals.
Sec. 1120. Participation of children enrolled in private schools.
Sec. 1120A. Fiscal requirements.
Sec. 1120B. Coordination requirements.

Subpart 2—Allocations
Sec. 1121. Grants for the outlying areas and the Secretary of the Interior.
Sec. 1122. Allocations to States.
Sec. 1124. Basic grants to local educational agencies.
Sec. 1124A. Concentration grants to local educational agencies.
Sec. 1125. Targeted grants to local educational agencies.
Sec. 1125AA. Adequacy of funding of targeted grants to local educational agencies in fiscal years after fiscal year 2001.
Sec. 1125A. Education finance incentive grant program.
Sec. 1126. Special allocation procedures.
Sec. 1127. Carryover and waiver.


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PART A—IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES

Subpart 1—Basic Program Requirements

SEC. 1111. STATE PLANS.

(a) PLANS REQUIRED.—

(1) IN GENERAL.—For any State desiring to receive a grant

under this part, the State educational agency shall submit

to the Secretary a plan, developed by the State educational

agency, in consultation with local educational agencies,

teachers, principals, pupil services personnel, administrators

(including administrators of programs described in other parts

of this title), other staff, and parents, that satisfies the requirements

of this section and that is coordinated with other programs

under this Act, the Individuals with Disabilities Education

Act, the Carl D. Perkins Vocational and Technical Education

Act of 1998, the Head Start Act, the Adult Education

and Family Literacy Act, and the McKinney-Vento Homeless

Assistance Act.

(2) CONSOLIDATED PLAN.—A State plan submitted under

paragraph (1) may be submitted as part of a consolidated

plan under section 9302.

(b) ACADEMIC STANDARDS, ACADEMIC ASSESSMENTS, AND

ACCOUNTABILITY.—

(1) CHALLENGING ACADEMIC STANDARDS.—

(A) IN GENERAL.—Each State plan shall demonstrate

that the State has adopted challenging academic content

standards and challenging student academic achievement

standards that will be used by the State, its local educational

agencies, and its schools to carry out this part,

except that a State shall not be required to submit such

standards to the Secretary.

(B) SAME STANDARDS.—The academic standards

required by subparagraph (A) shall be the same academic

standards that the State applies to all schools and children

in the State.

(C) SUBJECTS.—The State shall have such academic

standards for all public elementary school and secondary

school children, including children served under this part,

in subjects determined by the State, but including at least

mathematics, reading or language arts, and (beginning in

the 2005–2006 school year) science, which shall include

the same knowledge, skills, and levels of achievement

expected of all children.

(D) CHALLENGING ACADEMIC STANDARDS.—Standards

under this paragraph shall include—

(i) challenging academic content standards in academic

subjects that—

(I) specify what children are expected to know

and be able to do;

(II) contain coherent and rigorous content;

and

(III) encourage the teaching of advanced

skills; and

(ii) challenging student academic achievement

standards that—

(I) are aligned with the State’s academic content

standards;

(II) describe two levels of high achievement

(proficient and advanced) that determine how well

children are mastering the material in the State

academic content standards; and

(III) describe a third level of achievement

(basic) to provide complete information about the

progress of the lower-achieving children toward

mastering the proficient and advanced levels of

achievement.

(E) INFORMATION.—For the subjects in which students

will be served under this part, but for which a State is

not required by subparagraphs (A), (B), and (C) to develop,

and has not otherwise developed, such academic standards,

the State plan shall describe a strategy for ensuring that

students are taught the same knowledge and skills in

such subjects and held to the same expectations as are

all children.

(F) EXISTING STANDARDS.—Nothing in this part shall

prohibit a State from revising, consistent with this section,

any standard adopted under this part before or after the

date of enactment of the No Child Left Behind Act of

2001.

(2) ACCOUNTABILITY.—

(A) IN GENERAL.—Each State plan shall demonstrate

that the State has developed and is implementing a single,

statewide State accountability system that will be effective

in ensuring that all local educational agencies, public

elementary schools, and public secondary schools make adequate

yearly progress as defined under this paragraph.

Each State accountability system shall—

(i) be based on the academic standards and academic

assessments adopted under paragraphs (1) and

(3), and other academic indicators consistent with

subparagraph (C)(vi) and (vii), and shall take into

account the achievement of all public elementary school

and secondary school students;

(ii) be the same accountability system the State

uses for all public elementary schools and secondary

schools or all local educational agencies in the State,

except that public elementary schools, secondary

schools, and local educational agencies not participating

under this part are not subject to the requirements

of section 1116; and

(iii) include sanctions and rewards, such as

bonuses and recognition, the State will use to hold

local educational agencies and public elementary

schools and secondary schools accountable for student

achievement and for ensuring that they make adequate

yearly progress in accordance with the State’s definition

under subparagraphs (B) and (C).

(B) ADEQUATE YEARLY PROGRESS.—Each State plan

shall demonstrate, based on academic assessments

described in paragraph (3), and in accordance with this

paragraph, what constitutes adequate yearly progress of

the State, and of all public elementary schools, secondary

schools, and local educational agencies in the State, toward

enabling all public elementary school and secondary school

students to meet the State’s student academic achievement

standards, while working toward the goal of narrowing

the achievement gaps in the State, local educational agencies,

and schools.

(C) DEFINITION.—‘Adequate yearly progress’ shall be

defined by the State in a manner that—

(i) applies the same high standards of academic

achievement to all public elementary school and secondary

school students in the State;

(ii) is statistically valid and reliable;

(iii) results in continuous and substantial academic

improvement for all students;

(iv) measures the progress of public elementary

schools, secondary schools and local educational agencies

and the State based primarily on the academic

assessments described in paragraph (3);

(v) includes separate measurable annual objectives

for continuous and substantial improvement for

each of the following:

(I) The achievement of all public elementary

school and secondary school students.

(II) The achievement of—

(aa) economically disadvantaged students;

(bb) students from major racial and

ethnic groups;

(cc) students with disabilities; and

(dd) students with limited English proficiency;

except that disaggregation of data under subclause

(II) shall not be required in a case in which the

number of students in a category is insufficient

to yield statistically reliable information or the

results would reveal personally identifiable

information about an individual student;

(vi) in accordance with subparagraph (D), includes

graduation rates for public secondary school students

(defined as the percentage of students who graduate

from secondary school with a regular diploma in the

standard number of years) and at least one other academic

indicator, as determined by the State for all

public elementary school students; and

(vii) in accordance with subparagraph (D), at the

State’s discretion, may also include other academic

indicators, as determined by the State for all public

school students, measured separately for each group

described in clause (v), such as achievement on additional

State or locally administered assessments,

decreases in grade-to-grade retention rates, attendance

rates, and changes in the percentages of students completing

gifted and talented, advanced placement, and

college preparatory courses.

(D) REQUIREMENTS FOR OTHER INDICATORS.—In carrying

out subparagraph (C)(vi) and (vii), the State—

(i) shall ensure that the indicators described in

those provisions are valid and reliable, and are consistent

with relevant, nationally recognized professional

and technical standards, if any; and

(ii) except as provided in subparagraph (I)(i), may

not use those indicators to reduce the number of, or

change, the schools that would otherwise be subject

to school improvement, corrective action, or restructuring

under section 1116 if those additional indicators

were not used, but may use them to identify additional

schools for school improvement or in need of corrective

action or restructuring.

(E) STARTING POINT.—Each State, using data for the

2001–2002 school year, shall establish the starting point

for measuring, under subparagraphs (G) and (H), the

percentage of students meeting or exceeding the State’s

proficient level of academic achievement on the State

assessments under paragraph (3) and pursuant to the

timeline described in subparagraph (F). The starting point

shall be, at a minimum, based on the higher of the percentage

of students at the proficient level who are in—

(i) the State’s lowest achieving group of students

described in subparagraph (C)(v)(II); or

(ii) the school at the 20th percentile in the State,

based on enrollment, among all schools ranked by the

percentage of students at the proficient level.

(F) TIMELINE.—Each State shall establish a timeline

for adequate yearly progress. The timeline shall ensure

that not later than 12 years after the end of the 2001–

2002 school year, all students in each group described

in subparagraph (C)(v) will meet or exceed the State’s

proficient level of academic achievement on the State

assessments under paragraph (3).

(G) MEASURABLE OBJECTIVES.—Each State shall establish

statewide annual measurable objectives, pursuant to

subparagraph (C)(v), for meeting the requirements of this

paragraph, and which—

(i) shall be set separately for the assessments

of mathematics and reading or language arts under

subsection (a)(3);

(ii) shall be the same for all schools and local

educational agencies in the State;

(iii) shall identify a single minimum percentage

of students who are required to meet or exceed the

proficient level on the academic assessments that

applies separately to each group of students described

in subparagraph (C)(v);

(iv) shall ensure that all students will meet or

exceed the State’s proficient level of academic achievement

on the State assessments within the State’s

timeline under subparagraph (F); and

(v) may be the same for more than 1 year, subject

to the requirements of subparagraph (H).

(H) INTERMEDIATE GOALS FOR ANNUAL YEARLY

PROGRESS.—Each State shall establish intermediate goals

for meeting the requirements, including the measurable

objectives in subparagraph (G), of this paragraph and that

shall—

(i) increase in equal increments over the period

covered by the State’s timeline under subparagraph

(F);

(ii) provide for the first increase to occur in not

more than 2 years; and

(iii) provide for each following increase to occur

in not more than 3 years.

(I) ANNUAL IMPROVEMENT FOR SCHOOLS.—Each year,

for a school to make adequate yearly progress under this

paragraph—

(i) each group of students described in subparagraph

(C)(v) must meet or exceed the objectives set

by the State under subparagraph (G), except that if

any group described in subparagraph (C)(v) does not

meet those objectives in any particular year, the school

shall be considered to have made adequate yearly

progress if the percentage of students in that group

who did not meet or exceed the proficient level of

academic achievement on the State assessments under

paragraph (3) for that year decreased by 10 percent

of that percentage from the preceding school year and

that group made progress on one or more of the academic

indicators described in subparagraph (C)(vi) or

(vii); and

(ii) not less than 95 percent of each group of

students described in subparagraph (C)(v) who are

enrolled in the school are required to take the assessments,

consistent with paragraph (3)(C)(xi) and with

accommodations, guidelines, and alternative assessments

provided in the same manner as those provided

under section 612(a)(17)(A) of the Individuals with

Disabilities Education Act and paragraph (3), on which

adequate yearly progress is based (except that the

95 percent requirement described in this clause shall

not apply in a case in which the number of students

in a category is insufficient to yield statistically reliable

information or the results would reveal personally

identifiable information about an individual student).

(J) UNIFORM AVERAGING PROCEDURE.—For the purpose

of determining whether schools are making adequate yearly

progress, the State may establish a uniform procedure for

averaging data which includes one or more of the following:

(i) The State may average data from the school

year for which the determination is made with data

from one or two school years immediately preceding

that school year.

(ii) Until the assessments described in paragraph

(3) are administered in such manner and time to allow

for the implementation of the uniform procedure for

averaging data described in clause (i), the State may

use the academic assessments that were required

under paragraph (3) as that paragraph was in effect

on the day preceding the date of enactment of the

No Child Left Behind Act of 2001, provided that

nothing in this clause shall be construed to undermine

or delay the determination of adequate yearly progress,

the requirements of section 1116, or the implementation

of assessments under this section.

(iii) The State may use data across grades in

a school.

(K) ACCOUNTABILITY FOR CHARTER SCHOOLS.—The

accountability provisions under this Act shall be overseen

for charter schools in accordance with State charter school

law.

(3) ACADEMIC ASSESSMENTS.—

(A) IN GENERAL.—Each State plan shall demonstrate

that the State educational agency, in consultation with

local educational agencies, has implemented a set of highquality,

yearly student academic assessments that include,

at a minimum, academic assessments in mathematics,

reading or language arts, and science that will be used

as the primary means of determining the yearly performance

of the State and of each local educational agency

and school in the State in enabling all children to meet

the State’s challenging student academic achievement

standards, except that no State shall be required to meet

the requirements of this part relating to science assessments

until the beginning of the 2007–2008 school year.

(B) USE OF ASSESSMENTS.—Each State educational

agency may incorporate the data from the assessments

under this paragraph into a State-developed longitudinal

data system that links student test scores, length of enrollment,

and graduation records over time.

(C) REQUIREMENTS.—Such assessments shall—

(i) be the same academic assessments used to

measure the achievement of all children;

(ii) be aligned with the State’s challenging academic

content and student academic achievement

standards, and provide coherent information about student

attainment of such standards;

(iii) be used for purposes for which such assessments

are valid and reliable, and be consistent with

relevant, nationally recognized professional and technical

standards;

(iv) be used only if the State educational agency

provides to the Secretary evidence from the test publisher

or other relevant sources that the assessments

used are of adequate technical quality for each purpose

required under this Act and are consistent with the

requirements of this section, and such evidence is made

public by the Secretary upon request;

(v)(I) except as otherwise provided for grades 3

through 8 under clause vii, measure the proficiency

of students in, at a minimum, mathematics and reading

or language arts, and be administered not less than

once during—

(aa) grades 3 through 5;

(bb) grades 6 through 9; and

(cc) grades 10 through 12;

(II) beginning not later than school year 2007–

2008, measure the proficiency of all students in science

and be administered not less than one time during—

(aa) grades 3 through 5;

(bb) grades 6 through 9; and

(cc) grades 10 through 12;

(vi) involve multiple up-to-date measures of student

academic achievement, including measures that

assess higher-order thinking skills and understanding;

(vii) beginning not later than school year 2005–

2006, measure the achievement of students against

the challenging State academic content and student

academic achievement standards in each of grades 3

through 8 in, at a minimum, mathematics, and reading

or language arts, except that the Secretary may provide

the State 1 additional year if the State demonstrates

that exceptional or uncontrollable circumstances, such

as a natural disaster or a precipitous and unforeseen

decline in the financial resources of the State, prevented

full implementation of the academic assessments

by that deadline and that the State will complete

implementation within the additional 1-year period;

(viii) at the discretion of the State, measure the

proficiency of students in academic subjects not

described in clauses (v), (vi), (vii) in which the State

has adopted challenging academic content and academic

achievement standards;

(ix) provide for—

(I) the participation in such assessments of

all students;

(II) the reasonable adaptations and accommodations

for students with disabilities (as defined

Deadline.

under section 602(3) of the Individuals with

Disabilities Education Act) necessary to measure

the academic achievement of such students relative

to State academic content and State student academic

achievement standards; and

(III) the inclusion of limited English proficient

students, who shall be assessed in a valid and

reliable manner and provided reasonable accommodations

on assessments administered to such

students under this paragraph, including, to the

extent practicable, assessments in the language

and form most likely to yield accurate data on

what such students know and can do in academic

content areas, until such students have achieved

English language proficiency as determined under

paragraph (7);

(x) notwithstanding subclause (III), the academic

assessment (using tests written in English) of reading

or language arts of any student who has attended

school in the United States (not including Puerto Rico)

for three or more consecutive school years, except that

if the local educational agency determines, on a caseby-

case individual basis, that academic assessments

in another language or form would likely yield more

accurate and reliable information on what such student

knows and can do, the local educational agency may

make a determination to assess such student in the

appropriate language other than English for a period

that does not exceed two additional consecutive years,

provided that such student has not yet reached a level

of English language proficiency sufficient to yield valid

and reliable information on what such student knows

and can do on tests (written in English) of reading

or language arts;

(xi) include students who have attended schools

in a local educational agency for a full academic year

but have not attended a single school for a full academic

year, except that the performance of students

who have attended more than 1 school in the local

educational agency in any academic year shall be used

only in determining the progress of the local educational

agency;

(xii) produce individual student interpretive,

descriptive, and diagnostic reports, consistent with

clause (iii) that allow parents, teachers, and principals

to understand and address the specific academic needs

of students, and include information regarding achievement

on academic assessments aligned with State academic

achievement standards, and that are provided

to parents, teachers, and principals, as soon as is practicably

possible after the assessment is given, in an

understandable and uniform format, and to the extent

practicable, in a language that parents can understand;

(xiii) enable results to be disaggregated within

each State, local educational agency, and school by

gender, by each major racial and ethnic group, by

English proficiency status, by migrant status, by students

with disabilities as compared to nondisabled students,

and by economically disadvantaged students as

compared to students who are not economically disadvantaged,

except that, in the case of a local educational

agency or a school, such disaggregation shall

not be required in a case in which the number of

students in a category is insufficient to yield statistically

reliable information or the results would reveal

personally identifiable information about an individual

student;

(xiv) be consistent with widely accepted professional

testing standards, objectively measure academic

achievement, knowledge, and skills, and be tests that

do not evaluate or assess personal or family beliefs

and attitudes, or publicly disclose personally identifiable

information; and

(xv) enable itemized score analyses to be produced

and reported, consistent with clause (iii), to local educational

agencies and schools, so that parents, teachers,

principals, and administrators can interpret and

address the specific academic needs of students as

indicated by the students’ achievement on assessment

items.

(D) DEFERRAL.—A State may defer the commencement,

or suspend the administration, but not cease the

development, of the assessments described in this paragraph,

that were not required prior to the date of enactment

of the No Child Left Behind Act of 2001, for 1 year for

each year for which the amount appropriated for grants

under section 6113(a)(2) is less than—

(i) $370,000,000 for fiscal year 2002;

(ii) $380,000,000 for fiscal year 2003;

(iii) $390,000,000 for fiscal year 2004; and

(iv) $400,000,000 for fiscal years 2005 through

2007.

(4) SPECIAL RULE.—Academic assessment measures in

addition to those in paragraph (3) that do not meet the requirements

of such paragraph may be included in the assessment

under paragraph (3) as additional measures, but may not be

used in lieu of the academic assessments required under paragraph

(3). Such additional assessment measures may not be

used to reduce the number of or change, the schools that

would otherwise be subject to school improvement, corrective

action, or restructuring under section 1116 if such additional

indicators were not used, but may be used to identify additional

schools for school improvement or in need of corrective action

or restructuring except as provided in paragraph (2)(I)(i).

(5) STATE AUTHORITY.—If a State educational agency provides

evidence, which is satisfactory to the Secretary, that

neither the State educational agency nor any other State

government official, agency, or entity has sufficient authority,

under State law, to adopt curriculum content and student academic

achievement standards, and academic assessments

aligned with such academic standards, which will be applicable

to all students enrolled in the State’s public elementary schools

and secondary schools, then the State educational agency may

meet the requirements of this subsection by—

(A) adopting academic standards and academic assessments

that meet the requirements of this subsection, on

a statewide basis, and limiting their applicability to students

served under this part; or

(B) adopting and implementing policies that ensure

that each local educational agency in the State that receives

grants under this part will adopt curriculum content and

student academic achievement standards, and academic

assessments aligned with such standards, which—

(i) meet all of the criteria in this subsection and

any regulations regarding such standards and assessments

that the Secretary may publish; and

(ii) are applicable to all students served by each

such local educational agency.

(6) LANGUAGE ASSESSMENTS.—Each State plan shall identify

the languages other than English that are present in the

participating student population and indicate the languages

for which yearly student academic assessments are not available

and are needed. The State shall make every effort to

develop such assessments and may request assistance from

the Secretary if linguistically accessible academic assessment

measures are needed. Upon request, the Secretary shall assist

with the identification of appropriate academic assessment

measures in the needed languages, but shall not mandate a

specific academic assessment or mode of instruction.

(7) ACADEMIC ASSESSMENTS OF ENGLISH LANGUAGE PROFICIENCY.

—Each State plan shall demonstrate that local educational

agencies in the State will, beginning not later than

school year 2002–2003, provide for an annual assessment of

English proficiency (measuring students’ oral language,

reading, and writing skills in English) of all students with

limited English proficiency in the schools served by the State

educational agency, except that the Secretary may provide the

State 1 additional year if the State demonstrates that exceptional

or uncontrollable circumstances, such as a natural disaster

or a precipitous and unforeseen decline in the financial

resources of the State, prevented full implementation of this

paragraph by that deadline and that the State will complete

implementation within the additional 1-year period.

(8) REQUIREMENT.—Each State plan shall describe—

(A) how the State educational agency will assist each

local educational agency and school affected by the State

plan to develop the capacity to comply with each of the

requirements of sections 1112(c)(1)(D), 1114(b), and 1115(c)

that is applicable to such agency or school;

(B) how the State educational agency will assist each

local educational agency and school affected by the State

plan to provide additional educational assistance to individual

students assessed as needing help to achieve the

State’s challenging academic achievement standards;

(C) the specific steps the State educational agency

will take to ensure that both schoolwide programs and

targeted assistance schools provide instruction by highly

qualified instructional staff as required by sections

1114(b)(1)(C) and 1115(c)(1)(E), including steps that the

Deadline.

State educational agency will take to ensure that poor

and minority children are not taught at higher rates than

other children by inexperienced, unqualified, or out-of-field

teachers, and the measures that the State educational

agency will use to evaluate and publicly report the progress

of the State educational agency with respect to such steps;

(D) an assurance that the State educational agency

will assist local educational agencies in developing or

identifying high-quality effective curricula aligned with

State academic achievement standards and how the State

educational agency will disseminate such curricula to each

local educational agency and school within the State; and

(E) such other factors the State educational agency

determines appropriate to provide students an opportunity

to achieve the knowledge and skills described in the challenging

academic content standards adopted by the State.

(9) FACTORS AFFECTING STUDENT ACHIEVEMENT.—Each

State plan shall include an assurance that the State educational

agency will coordinate and collaborate, to the extent feasible

and necessary as determined by the State educational agency,

with agencies providing services to children, youth, and families,

with respect to local educational agencies within the State

that are identified under section 1116 and that request assistance

with addressing major factors that have significantly

affected the academic achievement of students in the local

educational agency or schools served by such agency.

(10) USE OF ACADEMIC ASSESSMENT RESULTS TO IMPROVE

STUDENT ACADEMIC ACHIEVEMENT.—Each State plan shall

describe how the State educational agency will ensure that

the results of the State assessments described in paragraph

(3)—

(A) will be promptly provided to local educational

agencies, schools, and teachers in a manner that is clear

and easy to understand, but not later than before the

beginning of the next school year; and

(B) be used by those local educational agencies,

schools, and teachers to improve the educational achievement

of individual students.

(c) OTHER PROVISIONS TO SUPPORT TEACHING AND LEARNING.—

Each State plan shall contain assurances that—

(1) the State educational agency will meet the requirements

of subsection (h)(1) and, beginning with the 2002–2003

school year, will produce the annual State report cards

described in such subsection, except that the Secretary may

provide the State educational agency 1 additional year if the

State educational agency demonstrates that exceptional or

uncontrollable circumstances, such as a natural disaster or

a precipitous and unforeseen decline in the financial resources

of the State, prevented full implementation of this paragraph

by that deadline and that the State will complete implementation

within the additional 1-year period;

(2) the State will, beginning in school year 2002–2003,

participate in biennial State academic assessments of 4th and

8th grade reading and mathematics under the National Assessment

of Educational Progress carried out under section

411(b)(2) of the National Education Statistics Act of 1994 if

the Secretary pays the costs of administering such assessments;

Deadline.

(3) the State educational agency, in consultation with the

Governor, will include, as a component of the State plan, a

plan to carry out the responsibilities of the State under sections

1116 and 1117, including carrying out the State educational

agency’s statewide system of technical assistance and support

for local educational agencies;

(4) the State educational agency will work with other

agencies, including educational service agencies or other local

consortia, and institutions to provide technical assistance to

local educational agencies and schools, including technical

assistance in providing professional development under section

1119, technical assistance under section 1117, and technical

assistance relating to parental involvement under section 1118;

(5)(A) where educational service agencies exist, the State

educational agency will consider providing professional development

and technical assistance through such agencies; and

(B) where educational service agencies do not exist, the

State educational agency will consider providing professional

development and technical assistance through other cooperative

agreements such as through a consortium of local educational

agencies;

(6) the State educational agency will notify local educational

agencies and the public of the content and student

academic achievement standards and academic assessments

developed under this section, and of the authority to operate

schoolwide programs, and will fulfill the State educational

agency’s responsibilities regarding local educational agency

improvement and school improvement under section 1116,

including such corrective actions as are necessary;

(7) the State educational agency will provide the least

restrictive and burdensome regulations for local educational

agencies and individual schools participating in a program

assisted under this part;

(8) the State educational agency will inform the Secretary

and the public of how Federal laws, if at all, hinder the ability

of States to hold local educational agencies and schools accountable

for student academic achievement;

(9) the State educational agency will encourage schools

to consolidate funds from other Federal, State, and local sources

for schoolwide reform in schoolwide programs under section

1114;

(10) the State educational agency will modify or eliminate

State fiscal and accounting barriers so that schools can easily

consolidate funds from other Federal, State, and local sources

for schoolwide programs under section 1114;

(11) the State educational agency has involved the committee

of practitioners established under section 1903(b) in

developing the plan and monitoring its implementation;

(12) the State educational agency will inform local educational

agencies in the State of the local educational agency’s

authority to transfer funds under title VI, to obtain waivers

under part D of title IX, and, if the State is an Ed-Flex Partnership

State, to obtain waivers under the Education Flexibility

Partnership Act of 1999;

(13) the State educational agency will coordinate activities

funded under this part with other Federal activities as appropriate;

and

Notification.

(14) the State educational agency will encourage local

educational agencies and individual schools participating in

a program assisted under this part to offer family literacy

services (using funds under this part), if the agency or school

determines that a substantial number of students served under

this part by the agency or school have parents who do not

have a secondary school diploma or its recognized equivalent

or who have low levels of literacy.

(d) PARENTAL INVOLVEMENT.—Each State plan shall describe

how the State educational agency will support the collection and

dissemination to local educational agencies and schools of effective

parental involvement practices. Such practices shall—

(1) be based on the most current research that meets

the highest professional and technical standards, on effective

parental involvement that fosters achievement to high standards

for all children; and

(2) be geared toward lowering barriers to greater participation

by parents in school planning, review, and improvement

experienced.

(e) PEER REVIEW AND SECRETARIAL APPROVAL.—

(1) SECRETARIAL DUTIES.—The Secretary shall—

(A) establish a peer-review process to assist in the

review of State plans;

(B) appoint individuals to the peer-review process who

are representative of parents, teachers, State educational

agencies, and local educational agencies, and who are

familiar with educational standards, assessments, accountability,

the needs of low-performing schools, and other educational

needs of students;

(C) approve a State plan within 120 days of its submission

unless the Secretary determines that the plan does

not meet the requirements of this section;

(D) if the Secretary determines that the State plan

does not meet the requirements of subsection (a), (b), or

(c), immediately notify the State of such determination

and the reasons for such determination;

(E) not decline to approve a State’s plan before—

(i) offering the State an opportunity to revise

its plan;

(ii) providing technical assistance in order to

assist the State to meet the requirements of subsections

(a), (b), and (c); and

(iii) providing a hearing; and

(F) have the authority to disapprove a State plan

for not meeting the requirements of this part, but shall

not have the authority to require a State, as a condition

of approval of the State plan, to include in, or delete

from, such plan one or more specific elements of the State’s

academic content standards or to use specific academic

assessment instruments or items.

(2) STATE REVISIONS.—A State plan shall be revised by

the State educational agency if it is necessary to satisfy the

requirements of this section.

(f) DURATION OF THE PLAN.—

(1) IN GENERAL.—Each State plan shall—

(A) remain in effect for the duration of the State’s

participation under this part; and

Deadline.

Establishment.

(B) be periodically reviewed and revised as necessary

by the State educational agency to reflect changes in the

State’s strategies and programs under this part.

(2) ADDITIONAL INFORMATION.—If significant changes are

made to a State’s plan, such as the adoption of new State

academic content standards and State student achievement

standards, new academic assessments, or a new definition of

adequate yearly progress, such information shall be submitted

to the Secretary.

(g) PENALTIES.—

(1) FAILURE TO MEET DEADLINES ENACTED IN 1994.—

(A) IN GENERAL.—If a State fails to meet the deadlines

established by the Improving America’s Schools Act of 1994

(or under any waiver granted by the Secretary or under

any compliance agreement with the Secretary) for demonstrating

that the State has in place challenging academic

content standards and student achievement standards, and

a system for measuring and monitoring adequate yearly

progress, the Secretary shall withhold 25 percent of the

funds that would otherwise be available to the State for

State administration and activities under this part in each

year until the Secretary determines that the State meets

those requirements.

(B) NO EXTENSION.—Notwithstanding any other provision

of law, 90 days after the date of enactment of the

No Child Left Behind Act of 2001 the Secretary shall

not grant any additional waivers of, or enter into any

additional compliance agreements to extend, the deadlines

described in subparagraph (A) for any State.

(2) FAILURE TO MEET REQUIREMENTS ENACTED IN 2001.—

If a State fails to meet any of the requirements of this section,

other than the requirements described in paragraph (1), then

the Secretary may withhold funds for State administration

under this part until the Secretary determines that the State

has fulfilled those requirements.

(h) REPORTS.—

(1) ANNUAL STATE REPORT CARD.—

(A) IN GENERAL.—Not later than the beginning of

the 2002–2003 school year, unless the State has received

a 1-year extension pursuant to subsection (c)(1), a State

that receives assistance under this part shall prepare and

disseminate an annual State report card.

(B) IMPLEMENTATION.—The State report card shall

be—

(i) concise; and

(ii) presented in an understandable and uniform

format and, to the extent practicable, provided in a

language that the parents can understand.

(C) REQUIRED INFORMATION.—The State shall include

in its annual State report card—

(i) information, in the aggregate, on student

achievement at each proficiency level on the State academic

assessments described in subsection (b)(3)

(disaggregated by race, ethnicity, gender, disability

status, migrant status, English proficiency, and status

as economically disadvantaged, except that such

disaggregation shall not be required in a case in which

Deadline.

the number of students in a category is insufficient

to yield statistically reliable information or the results

would reveal personally identifiable information about

an individual student);

(ii) information that provides a comparison

between the actual achievement levels of each group

of students described in subsection (b)(2)(C)(v) and the

State’s annual measurable objectives for each such

group of students on each of the academic assessments

required under this part;

(iii) the percentage of students not tested

(disaggregated by the same categories and subject to

the same exception described in clause (i));

(iv) the most recent 2-year trend in student

achievement in each subject area, and for each grade

level, for which assessments under this section are

required;

(v) aggregate information on any other indicators

used by the State to determine the adequate yearly

progress of students in achieving State academic

achievement standards;

(vi) graduation rates for secondary school students

consistent with subsection (b)(2)(C)(vi);

(vii) information on the performance of local educational

agencies in the State regarding making adequate

yearly progress, including the number and

names of each school identified for school improvement

under section 1116; and

(viii) the professional qualifications of teachers

in the State, the percentage of such teachers teaching

with emergency or provisional credentials, and the

percentage of classes in the State not taught by highly

qualified teachers, in the aggregate and disaggregated

by high-poverty compared to low-poverty schools which,

for the purpose of this clause, means schools in the

top quartile of poverty and the bottom quartile of poverty

in the State.

(D) OPTIONAL INFORMATION.—The State may include

in its annual State report card such other information

as the State believes will best provide parents, students,

and other members of the public with information

regarding the progress of each of the State’s public

elementary schools and public secondary schools. Such

information may include information regarding—

(i) school attendance rates;

(ii) average class size in each grade;

(iii) academic achievement and gains in English

proficiency of limited English proficient students;

(iv) the incidence of school violence, drug abuse,

alcohol abuse, student suspensions, and student expulsions;

(v) the extent and type of parental involvement

in the schools;

(vi) the percentage of students completing

advanced placement courses, and the rate of passing

of advanced placement tests; and

(vii) a clear and concise description of the State’s

accountability system, including a description of the

criteria by which the State evaluates school performance,

and the criteria that the State has established,

consistent with subsection (b)(2), to determine the

status of schools regarding school improvement, corrective

action, and restructuring.

(2) ANNUAL LOCAL EDUCATIONAL AGENCY REPORT CARDS.—

(A) REPORT CARDS.—

(i) IN GENERAL.—Not later than the beginning

of the 2002–2003 school year, a local educational

agency that receives assistance under this part shall

prepare and disseminate an annual local educational

agency report card, except that the State educational

agency may provide the local educational agency 1

additional year if the local educational agency demonstrates

that exceptional or uncontrollable circumstances,

such as a natural disaster or a precipitous

and unforeseen decline in the financial resources of

the local educational agency, prevented full

implementation of this paragraph by that deadline and

that the local educational agency will complete

implementation within the additional 1-year period.

(ii) SPECIAL RULE.—If a State educational agency

has received an extension pursuant to subsection (c)(1),

then a local educational agency within that State shall

not be required to include the information required

under paragraph (1)(C) in such report card during

such extension.

(B) MINIMUM REQUIREMENTS.—The State educational

agency shall ensure that each local educational agency

collects appropriate data and includes in the local educational

agency’s annual report the information described

in paragraph (1)(C) as applied to the local educational

agency and each school served by the local educational

agency, and—

(i) in the case of a local educational agency—

(I) the number and percentage of schools

identified for school improvement under section

1116(c) and how long the schools have been so

identified; and

(II) information that shows how students

served by the local educational agency achieved

on the statewide academic assessment compared

to students in the State as a whole; and

(ii) in the case of a school—

(I) whether the school has been identified

for school improvement; and

(II) information that shows how the school’s

students achievement on the statewide academic

assessments and other indicators of adequate

yearly progress compared to students in the local

educational agency and the State as a whole.

(C) OTHER INFORMATION.—A local educational agency

may include in its annual local educational agency report

card any other appropriate information, whether or not

Deadline.

such information is included in the annual State report

card.

(D) DATA.—A local educational agency or school shall

only include in its annual local educational agency report

card data that are sufficient to yield statistically reliable

information, as determined by the State, and that do not

reveal personally identifiable information about an individual

student.

(E) PUBLIC DISSEMINATION.—The local educational

agency shall, not later than the beginning of the 2002–

2003 school year, unless the local educational agency has

received a 1-year extension pursuant to subparagraph (A),

publicly disseminate the information described in this paragraph

to all schools in the school district served by the

local educational agency and to all parents of students

attending those schools in an understandable and uniform

format and, to the extent practicable, provided in a language

that the parents can understand, and make the

information widely available through public means, such

as posting on the Internet, distribution to the media, and

distribution through public agencies, except that if a local

educational agency issues a report card for all students,

the local educational agency may include the information

under this section as part of such report.

(3) PREEXISTING REPORT CARDS.—A State educational

agency or local educational agency that was providing public

report cards on the performance of students, schools, local

educational agencies, or the State prior to the enactment of

the No Child Left Behind Act of 2001 may use those report

cards for the purpose of this subsection, so long as any such

report card is modified, as may be needed, to contain the

information required by this subsection.

(4) ANNUAL STATE REPORT TO THE SECRETARY.—Each State

educational agency receiving assistance under this part shall

report annually to the Secretary, and make widely available

within the State—

(A) beginning with school year 2002–2003, information

on the State’s progress in developing and implementing

the academic assessments described in subsection (b)(3);

(B) beginning not later than school year 2002–2003,

information on the achievement of students on the academic

assessments required by subsection (b)(3), including

the disaggregated results for the categories of students

identified in subsection (b)(2)(C)(v);

(C) in any year before the State begins to provide

the information described in subparagraph (B), information

on the results of student academic assessments (including

disaggregated results) required under this section;

(D) beginning not later than school year 2002–2003,

unless the State has received an extension pursuant to

subsection (c)(1), information on the acquisition of English

proficiency by children with limited English proficiency;

(E) the number and names of each school identified

for school improvement under section 1116(c), the reason

why each school was so identified, and the measures taken

to address the achievement problems of such schools;

(F) the number of students and schools that participated

in public school choice and supplemental service

programs and activities under this title; and

(G) beginning not later than the 2002–2003 school

year, information on the quality of teachers and the

percentage of classes being taught by highly qualified

teachers in the State, local educational agency, and school.

(5) REPORT TO CONGRESS.—The Secretary shall transmit

annually to the Committee on Education and the Workforce

of the House of Representatives and the Committee on Health,

Education, Labor, and Pensions of the Senate a report that

provides national and State-level data on the information collected

under paragraph (4).

(6) PARENTS RIGHT-TO-KNOW.—

(A) QUALIFICATIONS.—At the beginning of each school

year, a local educational agency that receives funds under

this part shall notify the parents of each student attending

any school receiving funds under this part that the parents

may request, and the agency will provide the parents on

request (and in a timely manner), information regarding

the professional qualifications of the student’s classroom

teachers, including, at a minimum, the following:

(i) Whether the teacher has met State qualification

and licensing criteria for the grade levels and

subject areas in which the teacher provides instruction.

(ii) Whether the teacher is teaching under emergency

or other provisional status through which State

qualification or licensing criteria have been waived.

(iii) The baccalaureate degree major of the teacher

and any other graduate certification or degree held

by the teacher, and the field of discipline of the certification

or degree.

(iv) Whether the child is provided services by

paraprofessionals and, if so, their qualifications.

(B) ADDITIONAL INFORMATION.—In addition to the

information that parents may request under subparagraph

(A), a school that receives funds under this part shall

provide to each individual parent—

(i) information on the level of achievement of the

parent’s child in each of the State academic assessments

as required under this part; and

(ii) timely notice that the parent’s child has been

assigned, or has been taught for four or more consecutive

weeks by, a teacher who is not highly qualified.

(C) FORMAT.—The notice and information provided

to parents under this paragraph shall be in an understandable

and uniform format and, to the extent practicable,

provided in a language that the parents can understand.

(i) PRIVACY.—Information collected under this section shall

be collected and disseminated in a manner that protects the privacy

of individuals.

(j) TECHNICAL ASSISTANCE.—The Secretary shall provide a

State educational agency, at the State educational agency’s request,

technical assistance in meeting the requirements of this section,

including the provision of advice by experts in the development

of high-quality academic assessments, the setting of State standards,

the development of measures of adequate yearly progress

that are valid and reliable, and other relevant areas.

(k) VOLUNTARY PARTNERSHIPS.—A State may enter into a voluntary

partnership with another State to develop and implement

the academic assessments and standards required under this section.

(l) CONSTRUCTION.—Nothing in this part shall be construed

to prescribe the use of the academic assessments described in

this part for student promotion or graduation purposes.

(m) SPECIAL RULE WITH RESPECT TO BUREAU-FUNDED

SCHOOLS.—In determining the assessments to be used by each

operated or funded by BIA school receiving funds under this part,

the following shall apply:

(1) Each such school that is accredited by the State in

which it is operating shall use the assessments the State has

developed and implemented to meet the requirements of this

section, or such other appropriate assessment as approved by

the Secretary of the Interior.

(2) Each such school that is accredited by a regional

accrediting organization shall adopt an appropriate assessment,

in consultation with and with the approval of, the Secretary

of the Interior and consistent with assessments adopted by

other schools in the same State or region, that meets the

requirements of this section.

(3) Each such school that is accredited by a tribal accrediting

agency or tribal division of education shall use an assessment

developed by such agency or division, except that the

Secretary of the Interior shall ensure that such assessment

meets the requirements of this section.

SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.

(a) PLANS REQUIRED.—

(1) SUBGRANTS.—A local educational agency may receive

a subgrant under this part for any fiscal year only if such

agency has on file with the State educational agency a plan,

approved by the State educational agency, that is coordinated

with other programs under this Act, the Individuals with

Disabilities Education Act, the Carl D. Perkins Vocational and

Technical Education Act of 1998, the McKinney-Vento Homeless

Assistance Act, and other Acts, as appropriate.

(2) CONSOLIDATED APPLICATION.—The plan may be submitted

as part of a consolidated application under section 9305.

(b) PLAN PROVISIONS.—

(1) IN GENERAL.—In order to help low-achieving children

meet challenging achievement academic standards, each local

educational agency plan shall include—

(A) a description of high-quality student academic

assessments, if any, that are in addition to the academic

assessments described in the State plan under section

1111(b)(3), that the local educational agency and schools

served under this part will use—

(i) to determine the success of children served

under this part in meeting the State student academic

achievement standards, and to provide information to

teachers, parents, and students on the progress being

made toward meeting the State student academic

achievement standards described in section

1111(b)(1)(D)(ii);

(ii) to assist in diagnosis, teaching, and learning

in the classroom in ways that best enable low-achieving

children served under this part to meet State student

achievement academic standards and do well in the

local curriculum;

(iii) to determine what revisions are needed to

projects under this part so that such children meet

the State student academic achievement standards;

and

(iv) to identify effectively students who may be

at risk for reading failure or who are having difficulty

reading, through the use of screening, diagnostic, and

classroom-based instructional reading assessments, as

defined under section 1208;

(B) at the local educational agency’s discretion, a

description of any other indicators that will be used in

addition to the academic indicators described in section

1111 for the uses described in such section;

(C) a description of how the local educational agency

will provide additional educational assistance to individual

students assessed as needing help in meeting the State’s

challenging student academic achievement standards;

(D) a description of the strategy the local educational

agency will use to coordinate programs under this part

with programs under title II to provide professional

development for teachers and principals, and, if appropriate,

pupil services personnel, administrators, parents

and other staff, including local educational agency level

staff in accordance with sections 1118 and 1119;

(E) a description of how the local educational agency

will coordinate and integrate services provided under this

part with other educational services at the local educational

agency or individual school level, such as—

(i) Even Start, Head Start, Reading First, Early

Reading First, and other preschool programs, including

plans for the transition of participants in such programs

to local elementary school programs; and

(ii) services for children with limited English proficiency,

children with disabilities, migratory children,

neglected or delinquent youth, Indian children served

under part A of title VII, homeless children, and

immigrant children in order to increase program

effectiveness, eliminate duplication, and reduce fragmentation

of the instructional program;

(F) an assurance that the local educational agency

will participate, if selected, in the State National Assessment

of Educational Progress in 4th and 8th grade reading

and mathematics carried out under section 411(b)(2) of

the National Education Statistics Act of 1994;

(G) a description of the poverty criteria that will be

used to select school attendance areas under section 1113;

(H) a description of how teachers, in consultation with

parents, administrators, and pupil services personnel, in

targeted assistance schools under section 1115, will identify

the eligible children most in need of services under this

part;

(I) a general description of the nature of the programs

to be conducted by such agency’s schools under sections

1114 and 1115 and, where appropriate, educational services

outside such schools for children living in local institutions

for neglected or delinquent children, and for neglected and

delinquent children in community day school programs;

(J) a description of how the local educational agency

will ensure that migratory children and formerly migratory

children who are eligible to receive services under this

part are selected to receive such services on the same

basis as other children who are selected to receive services

under this part;

(K) if appropriate, a description of how the local educational

agency will use funds under this part to support

preschool programs for children, particularly children

participating in Early Reading First, or in a Head Start

or Even Start program, which services may be provided

directly by the local educational agency or through a subcontract

with the local Head Start agency designated by

the Secretary of Health and Human Services under section

641 of the Head Start Act, or an agency operating an

Even Start program, an Early Reading First program, or

another comparable public early childhood development

program;

(L) a description of the actions the local educational

agency will take to assist its low-achieving schools identified

under section 1116 as in need of improvement;

(M) a description of the actions the local educational

agency will take to implement public school choice and

supplemental services, consistent with the requirements

of section 1116;

(N) a description of how the local educational agency

will meet the requirements of section 1119;

(O) a description of the services the local educational

agency will provide homeless children, including services

provided with funds reserved under section 1113(c)(3)(A);

(P) a description of the strategy the local educational

agency will use to implement effective parental involvement

under section 1118; and

(Q) where appropriate, a description of how the local

educational agency will use funds under this part to support

after school (including before school and summer

school) and school-year extension programs.

(2) EXCEPTION.—The academic assessments and indicators

described in subparagraphs (A) and (B) of paragraph (1) shall

not be used—

(A) in lieu of the academic assessments required under

section 1111(b)(3) and other State academic indicators

under section 1111(b)(2); or

(B) to reduce the number of, or change which, schools

would otherwise be subject to school improvement, corrective

action, or restructuring under section 1116, if such

additional assessments or indicators described in such subparagraphs

were not used, but such assessments and

indicators may be used to identify additional schools for

school improvement or in need of corrective action or

restructuring.

(c) ASSURANCES.—

(1) IN GENERAL.—Each local educational agency plan shall

provide assurances that the local educational agency will—

(A) inform eligible schools and parents of schoolwide

program authority and the ability of such schools to consolidate

funds from Federal, State, and local sources;

(B) provide technical assistance and support to

schoolwide programs;

(C) work in consultation with schools as the schools

develop the schools’ plans pursuant to section 1114 and

assist schools as the schools implement such plans or

undertake activities pursuant to section 1115 so that each

school can make adequate yearly progress toward meeting

the State student academic achievement standards;

(D) fulfill such agency’s school improvement responsibilities

under section 1116, including taking actions under

paragraphs (7) and (8) of section 1116(b);

(E) provide services to eligible children attending private

elementary schools and secondary schools in accordance

with section 1120, and timely and meaningful consultation

with private school officials regarding such services;

(F) take into account the experience of model programs

for the educationally disadvantaged, and the findings of

relevant scientifically based research indicating that services

may be most effective if focused on students in the

earliest grades at schools that receive funds under this

part;

(G) in the case of a local educational agency that

chooses to use funds under this part to provide early childhood

development services to low-income children below

the age of compulsory school attendance, ensure that such

services comply with the performance standards established

under section 641A(a) of the Head Start Act;

(H) work in consultation with schools as the schools

develop and implement their plans or activities under sections

1118 and 1119;

(I) comply with the requirements of section 1119

regarding the qualifications of teachers and paraprofessionals

and professional development;

(J) inform eligible schools of the local educational

agency’s authority to obtain waivers on the school’s behalf

under title IX and, if the State is an Ed-Flex Partnership

State, to obtain waivers under the Education Flexibility

Partnership Act of 1999;

(K) coordinate and collaborate, to the extent feasible

and necessary as determined by the local educational

agency, with the State educational agency and other agencies

providing services to children, youth, and families with

respect to a school in school improvement, corrective action,

or restructuring under section 1116 if such a school

requests assistance from the local educational agency in

addressing major factors that have significantly affected

student achievement at the school;

(L) ensure, through incentives for voluntary transfers,

the provision of professional development, recruitment programs,

or other effective strategies, that low-income students

and minority students are not taught at higher rates

than other students by unqualified, out-of-field, or inexperienced

teachers;

(M) use the results of the student academic assessments

required under section 1111(b)(3), and other measures

or indicators available to the agency, to review

annually the progress of each school served by the agency

and receiving funds under this part to determine whether

all of the schools are making the progress necessary to

ensure that all students will meet the State’s proficient

level of achievement on the State academic assessments

described in section 1111(b)(3) within 12 years from the

end of the 2001–2002 school year;

(N) ensure that the results from the academic assessments

required under section 1111(b)(3) will be provided

to parents and teachers as soon as is practicably possible

after the test is taken, in an understandable and uniform

format and, to the extent practicable, provided in a language

that the parents can understand; and

(O) assist each school served by the agency and

assisted under this part in developing or identifying examples

of high-quality, effective curricula consistent with section

1111(b)(8)(D).

(2) SPECIAL RULE.—In carrying out subparagraph (G) of

paragraph (1), the Secretary—

(A) shall consult with the Secretary of Health and

Human Services and shall establish procedures (taking

into consideration existing State and local laws, and local

teacher contracts) to assist local educational agencies to

comply with such subparagraph; and

(B) shall disseminate to local educational agencies

the Head Start performance standards as in effect under

section 641A(a) of the Head Start Act, and such agencies

affected by such subparagraph shall plan for the

implementation of such subparagraph (taking into consideration

existing State and local laws, and local teacher contracts),

including pursuing the availability of other Federal,

State, and local funding sources to assist in compliance

with such subparagraph.

(3) INAPPLICABILITY.—Paragraph (1)(G) of this subsection

shall not apply to preschool programs using the Even Start

model or to Even Start programs that are expanded through

the use of funds under this part.

(d) PLAN DEVELOPMENT AND DURATION.—

(1) CONSULTATION.—Each local educational agency plan

shall be developed in consultation with teachers, principals,

administrators (including administrators of programs described

in other parts of this title), and other appropriate school personnel,

and with parents of children in schools served under

this part.

(2) DURATION.—Each such plan shall be submitted for

the first year for which this part is in effect following the

date of enactment of the No Child Left Behind Act of 2001

Procedures.

and shall remain in effect for the duration of the agency’s

participation under this part.

(3) REVIEW.—Each local educational agency shall periodically

review and, as necessary, revise its plan.

(e) STATE APPROVAL.—

(1) IN GENERAL.—Each local educational agency plan shall

be filed according to a schedule established by the State educational

agency.

(2) APPROVAL.—The State educational agency shall

approve a local educational agency’s plan only if the State

educational agency determines that the local educational

agency’s plan—

(A) enables schools served under this part to substantially

help children served under this part meet the academic

standards expected of all children described in section

1111(b)(1); and

(B) meets the requirements of this section.

(3) REVIEW.—The State educational agency shall review

the local educational agency’s plan to determine if such agencies

activities are in accordance with sections 1118 and 1119.

(f) PROGRAM RESPONSIBILITY.—The local educational agency

plan shall reflect the shared responsibility of schools, teachers,

and the local educational agency in making decisions regarding

activities under sections 1114 and 1115.

(g) PARENTAL NOTIFICATION.—

(1) IN GENERAL.—

(A) NOTICE.—Each local educational agency using

funds under this part to provide a language instruction

educational program as determined in part C of title III

shall, not later than 30 days after the beginning of the

school year, inform a parent or parents of a limited English

proficient child identified for participation or participating

in, such a program of—

(i) the reasons for the identification of their child

as limited English proficient and in need of placement

in a language instruction educational program;

(ii) the child’s level of English proficiency, how

such level was assessed, and the status of the child’s

academic achievement;

(iii) the methods of instruction used in the program

in which their child is, or will be participating,

and the methods of instruction used in other available

programs, including how such programs differ in content,

instructional goals, and the use of English and

a native language in instruction;

(iv) how the program in which their child is, or

will be participating, will meet the educational

strengths and needs of their child;

(v) how such program will specifically help their

child learn English, and meet age-appropriate academic

achievement standards for grade promotion and

graduation;

(vi) the specific exit requirements for the program,

including the expected rate of transition from such

program into classrooms that are not tailored for limited

English proficient children, and the expected rate

of graduation from secondary school for such program

Deadline.

if funds under this part are used for children in secondary

schools;

(vii) in the case of a child with a disability, how

such program meets the objectives of the individualized

education program of the child;

(viii) information pertaining to parental rights

that includes written guidance—

(I) detailing—

(aa) the right that parents have to have

their child immediately removed from such

program upon their request; and

(bb) the options that parents have to

decline to enroll their child in such program

or to choose another program or method of

instruction, if available; and

(II) assisting parents in selecting among various

programs and methods of instruction, if more

than one program or method is offered by the

eligible entity.

(B) SEPARATE NOTIFICATION.—In addition to providing

the information required to be provided under paragraph

(1), each eligible entity that is using funds provided under

this part to provide a language instruction educational

program, and that has failed to make progress on the

annual measurable achievement objectives described in section

3122 for any fiscal year for which part A is in effect,

shall separately inform a parent or the parents of a child

identified for participation in such program, or participating

in such program, of such failure not later than

30 days after such failure occurs.

(2) NOTICE.—The notice and information provided in paragraph

(1) to a parent or parents of a child identified for participation

in a language instruction educational program for limited

English proficient children shall be in an understandable

and uniform format and, to the extent practicable, provided

in a language that the parents can understand.

(3) SPECIAL RULE APPLICABLE DURING THE SCHOOL YEAR.—

For those children who have not been identified as limited

English proficient prior to the beginning of the school year

the local educational agency shall notify parents within the

first 2 weeks of the child being placed in a language instruction

educational program consistent with paragraphs (1) and (2).

(4) PARENTAL PARTICIPATION.—Each local educational

agency receiving funds under this part shall implement an

effective means of outreach to parents of limited English proficient

students to inform the parents regarding how the parents

can be involved in the education of their children, and

be active participants in assisting their children to attain

English proficiency, achieve at high levels in core academic

subjects, and meet challenging State academic achievement

standards and State academic content standards expected of

all students, including holding, and sending notice of opportunities

for, regular meetings for the purpose of formulating and

responding to recommendations from parents of students

assisted under this part.

(5) BASIS FOR ADMISSION OR EXCLUSION.—A student shall

not be admitted to, or excluded from, any federally assisted

education program on the basis of a surname or languageminority

status.

SEC. 1113. ELIGIBLE SCHOOL ATTENDANCE AREAS.

(a) DETERMINATION.—

(1) IN GENERAL.—A local educational agency shall use

funds received under this part only in eligible school attendance

areas.

(2) ELIGIBLE SCHOOL ATTENDANCE AREAS.—For the purposes

of this part—

(A) the term ‘school attendance area’ means, in relation

to a particular school, the geographical area in which

the children who are normally served by that school reside;

and

(B) the term ‘eligible school attendance area’ means

a school attendance area in which the percentage of children

from low-income families is at least as high as the

percentage of children from low-income families served by

the local educational agency as a whole.

(3) RANKING ORDER.—If funds allocated in accordance with

subsection (c) are insufficient to serve all eligible school attendance

areas, a local educational agency shall—

(A) annually rank, without regard to grade spans,

such agency’s eligible school attendance areas in which

the concentration of children from low-income families

exceeds 75 percent from highest to lowest according to

the percentage of children from low-income families; and

(B) serve such eligible school attendance areas in rank

order.

(4) REMAINING FUNDS.—If funds remain after serving all

eligible school attendance areas under paragraph (3), a local

educational agency shall—

(A) annually rank such agency’s remaining eligible

school attendance areas from highest to lowest either by

grade span or for the entire local educational agency

according to the percentage of children from low-income

families; and

(B) serve such eligible school attendance areas in rank

order either within each grade-span grouping or within

the local educational agency as a whole.

(5) MEASURES.—The local educational agency shall use

the same measure of poverty, which measure shall be the

number of children ages 5 through 17 in poverty counted in

the most recent census data approved by the Secretary, the

number of children eligible for free and reduced priced lunches

under the Richard B. Russell National School Lunch Act, the

number of children in families receiving assistance under the

State program funded under part A of title IV of the Social

Security Act, or the number of children eligible to receive

medical assistance under the Medicaid program, or a composite

of such indicators, with respect to all school attendance areas

in the local educational agency—

(A) to identify eligible school attendance areas;

(B) to determine the ranking of each area; and

(C) to determine allocations under subsection (c).

20 USC 6313.

(6) EXCEPTION.—This subsection shall not apply to a local

educational agency with a total enrollment of less than 1,000

children.

(7) WAIVER FOR DESEGREGATION PLANS.—The Secretary

may approve a local educational agency’s written request for

a waiver of the requirements of subsections (a) and (c), and

permit such agency to treat as eligible, and serve, any school

that children attend with a State-ordered, court-ordered school

desegregation plan or a plan that continues to be implemented

in accordance with a State-ordered or court-ordered desegregation

plan, if—

(A) the number of economically disadvantaged children

enrolled in the school is at least 25 percent of the

school’s total enrollment; and

(B) the Secretary determines on the basis of a written

request from such agency and in accordance with such

criteria as the Secretary establishes, that approval of that

request would further the purposes of this part.

(b) LOCAL EDUCATIONAL AGENCY DISCRETION.—

(1) IN GENERAL.—Notwithstanding subsection (a)(2), a

local educational agency may—

(A) designate as eligible any school attendance area

or school in which at least 35 percent of the children

are from low-income families;

(B) use funds received under this part in a school

that is not in an eligible school attendance area, if the

percentage of children from low-income families enrolled

in the school is equal to or greater than the percentage

of such children in a participating school attendance area

of such agency;

(C) designate and serve a school attendance area or

school that is not eligible under this section, but that

was eligible and that was served in the preceding fiscal

year, but only for 1 additional fiscal year; and

(D) elect not to serve an eligible school attendance

area or eligible school that has a higher percentage of

children from low-income families if—

(i) the school meets the comparability requirements

of section 1120A(c);

(ii) the school is receiving supplemental funds

from other State or local sources that are spent

according to the requirements of section 1114 or 1115;

and

(iii) the funds expended from such other sources

equal or exceed the amount that would be provided

under this part.

(2) SPECIAL RULE.—Notwithstanding paragraph (1)(D), the

number of children attending private elementary schools and

secondary schools who are to receive services, and the assistance

such children are to receive under this part, shall be

determined without regard to whether the public school attendance

area in which such children reside is assisted under

subparagraph (A).

(c) ALLOCATIONS.—

(1) IN GENERAL.—A local educational agency shall allocate

funds received under this part to eligible school attendance

areas or eligible schools, identified under subsections (a) and

(b), in rank order, on the basis of the total number of children

from low-income families in each area or school.

(2) SPECIAL RULE.—

(A) IN GENERAL.—Except as provided in subparagraph

(B), the per-pupil amount of funds allocated to each school

attendance area or school under paragraph (1) shall be

at least 125 percent of the per-pupil amount of funds a

local educational agency received for that year under the

poverty criteria described by the local educational agency

in the plan submitted under section 1112, except that

this paragraph shall not apply to a local educational agency

that only serves schools in which the percentage of such

children is 35 percent or greater.

(B) EXCEPTION.—A local educational agency may

reduce the amount of funds allocated under subparagraph

(A) for a school attendance area or school by the amount

of any supplemental State and local funds expended in

that school attendance area or school for programs that

meet the requirements of section 1114 or 1115.

(3) RESERVATION.—A local educational agency shall

reserve such funds as are necessary under this part to provide

services comparable to those provided to children in schools

funded under this part to serve—

(A) homeless children who do not attend participating

schools, including providing educationally related support

services to children in shelters and other locations where

children may live;

(B) children in local institutions for neglected children;

and

(C) if appropriate, children in local institutions for

delinquent children, and neglected or delinquent children

in community day school programs.

(4) FINANCIAL INCENTIVES AND REWARDS RESERVATION.—

A local educational agency may reserve such funds as are

necessary from those funds received by the local educational

agency under title II, and not more than 5 percent of those

funds received by the local educational agency under subpart

2, to provide financial incentives and rewards to teachers who

serve in schools eligible under this section and identified for

school improvement, corrective action, and restructuring under

section 1116(b) for the purpose of attracting and retaining

qualified and effective teachers.

SEC. 1114. SCHOOLWIDE PROGRAMS.

(a) USE OF FUNDS FOR SCHOOLWIDE PROGRAMS.—

(1) IN GENERAL.—A local educational agency may consolidate

and use funds under this part, together with other Federal,

State, and local funds, in order to upgrade the entire educational

program of a school that serves an eligible school

attendance area in which not less than 40 percent of the children

are from low-income families, or not less than 40 percent

of the children enrolled in the school are from such families.

(2) IDENTIFICATION OF STUDENTS NOT REQUIRED.—

(A) IN GENERAL.—No school participating in a

schoolwide program shall be required—

(i) to identify particular children under this part

as eligible to participate in a schoolwide program; or

20 USC 6314.

(ii) to provide services to such children that are

supplementary, as otherwise required by section

1120A(b).

(B) SUPPLEMENTAL FUNDS.—A school participating in

a schoolwide program shall use funds available to carry

out this section only to supplement the amount of funds

that would, in the absence of funds under this part, be

made available from non-Federal sources for the school,

including funds needed to provide services that are required

by law for children with disabilities and children with

limited English proficiency.

(3) EXEMPTION FROM STATUTORY AND REGULATORY

REQUIREMENTS.—

(A) EXEMPTION.—Except as provided in subsection (b),

the Secretary may, through publication of a notice in the

Federal Register, exempt schoolwide programs under this

section from statutory or regulatory provisions of any other

noncompetitive formula grant program administered by the

Secretary (other than formula or discretionary grant programs

under the Individuals with Disabilities Education

Act, except as provided in section 613(a)(2)(D) of such Act),

or any discretionary grant program administered by the

Secretary, to support schoolwide programs if the intent

and purposes of such other programs are met.

(B) REQUIREMENTS.—A school that chooses to use

funds from such other programs shall not be relieved of

the requirements relating to health, safety, civil rights,

student and parental participation and involvement, services

to private school children, maintenance of effort, comparability

of services, uses of Federal funds to supplement,

not supplant non-Federal funds, or the distribution of funds

to State educational agencies or local educational agencies

that apply to the receipt of funds from such programs.

(C) RECORDS.—A school that consolidates and uses

funds from different Federal programs under this section

shall not be required to maintain separate fiscal accounting

records, by program, that identify the specific activities

supported by those particular funds as long as the school

maintains records that demonstrate that the schoolwide

program, considered as a whole, addresses the intent and

purposes of each of the Federal programs that were consolidated

to support the schoolwide program.

(4) PROFESSIONAL DEVELOPMENT.—Each school receiving

funds under this part for any fiscal year shall devote sufficient

resources to effectively carry out the activities described in

subsection (b)(1)(D) in accordance with section 1119 for such

fiscal year, except that a school may enter into a consortium

with another school to carry out such activities.

(b) COMPONENTS OF A SCHOOLWIDE PROGRAM.—

(1) IN GENERAL.—A schoolwide program shall include the

following components:

(A) A comprehensive needs assessment of the entire

school (including taking into account the needs of migratory

children as defined in section 1309(2)) that is based on

information which includes the achievement of children

in relation to the State academic content standards and

the State student academic achievement standards

described in section 1111(b)(1).

(B) Schoolwide reform strategies that—

(i) provide opportunities for all children to meet

the State’s proficient and advanced levels of student

academic achievement described in section

1111(b)(1)(D);

(ii) use effective methods and instructional strategies

that are based on scientifically based research

that—

(I) strengthen the core academic program in

the school;

(II) increase the amount and quality of

learning time, such as providing an extended

school year and before- and after-school and

summer programs and opportunities, and help provide

an enriched and accelerated curriculum; and

(III) include strategies for meeting the educational

needs of historically underserved populations;

(iii)(I) include strategies to address the needs of

all children in the school, but particularly the needs

of low-achieving children and those at risk of not

meeting the State student academic achievement

standards who are members of the target population

of any program that is included in the schoolwide

program, which may include—

(aa) counseling, pupil services, and mentoring

services;

(bb) college and career awareness and

preparation, such as college and career guidance,

personal finance education, and innovative

teaching methods, which may include applied

learning and team-teaching strategies; and

(cc) the integration of vocational and technical

education programs; and

(II) address how the school will determine if such

needs have been met; and

(iv) are consistent with, and are designed to implement,

the State and local improvement plans, if any.

(C) Instruction by highly qualified teachers.

(D) In accordance with section 1119 and subsection

(a)(4), high-quality and ongoing professional development

for teachers, principals, and paraprofessionals and, if

appropriate, pupil services personnel, parents, and other

staff to enable all children in the school to meet the State’s

student academic achievement standards.

(E) Strategies to attract high-quality highly qualified

teachers to high-need schools.

(F) Strategies to increase parental involvement in

accordance with section 1118, such as family literary services.

(G) Plans for assisting preschool children in the transition

from early childhood programs, such as Head Start,

Even Start, Early Reading First, or a State-run preschool

program, to local elementary school programs.

(H) Measures to include teachers in the decisions

regarding the use of academic assessments described in

section 1111(b)(3) in order to provide information on, and

to improve, the achievement of individual students and

the overall instructional program.

(I) Activities to ensure that students who experience

difficulty mastering the proficient or advanced levels of

academic achievement standards required by section

1111(b)(1) shall be provided with effective, timely additional

assistance which shall include measures to ensure that

students’ difficulties are identified on a timely basis and

to provide sufficient information on which to base effective

assistance.

(J) Coordination and integration of Federal, State,

and local services and programs, including programs supported

under this Act, violence prevention programs, nutrition

programs, housing programs, Head Start, adult education,

vocational and technical education, and job training.

(2) PLAN.—

(A) IN GENERAL.—Any eligible school that desires to

operate a schoolwide program shall first develop (or amend

a plan for such a program that was in existence on the

day before the date of enactment of the No Child Left

Behind Act of 2001), in consultation with the local educational

agency and its school support team or other technical

assistance provider under section 1117, a comprehensive

plan for reforming the total instructional program

in the school that—

(i) describes how the school will implement the

components described in paragraph (1);

(ii) describes how the school will use resources

under this part and from other sources to implement

those components;

(iii) includes a list of State educational agency

and local educational agency programs and other Federal

programs under subsection (a)(3) that will be

consolidated in the schoolwide program; and

(iv) describes how the school will provide individual

student academic assessment results in a language

the parents can understand, including an

interpretation of those results, to the parents of a

child who participates in the academic assessments

required by section 1111(b)(3).

(B) PLAN DEVELOPMENT.—The comprehensive plan

shall be—

(i) developed during a one-year period, unless—

(I) the local educational agency, after considering

the recommendation of the technical assistance

providers under section 1117, determines that

less time is needed to develop and implement the

schoolwide program; or

(II) the school is operating a schoolwide program

on the day preceding the date of enactment

of the No Child Left Behind Act of 2001, in which

case such school may continue to operate such

program, but shall develop amendments to its

existing plan during the first year of assistance

Records.

after that date to reflect the provisions of this

section;

(ii) developed with the involvement of parents

and other members of the community to be served

and individuals who will carry out such plan, including

teachers, principals, and administrators (including

administrators of programs described in other parts

of this title), and, if appropriate, pupil services personnel,

technical assistance providers, school staff, and,

if the plan relates to a secondary school, students

from such school;

(iii) in effect for the duration of the school’s

participation under this part and reviewed and revised,

as necessary, by the school;

(iv) available to the local educational agency, parents,

and the public, and the information contained

in such plan shall be in an understandable and uniform

format and, to the extent practicable, provided in a

language that the parents can understand; and

(v) if appropriate, developed in coordination with

programs under Reading First, Early Reading First,

Even Start, Carl D. Perkins Vocational and Technical

Education Act of 1998, and the Head Start Act.

(c) PREKINDERGARTEN PROGRAM.—A school that is eligible for

a schoolwide program under this section may use funds made

available under this part to establish or enhance prekindergarten

programs for children below the age of 6, such as Even Start

programs or Early Reading First programs.

SEC. 1115. TARGETED ASSISTANCE SCHOOLS.

(a) IN GENERAL.—In all schools selected to receive funds under

section 1113(c) that are ineligible for a schoolwide program under

section 1114, or that choose not to operate such a schoolwide program,

a local educational agency serving such school may use

funds received under this part only for programs that provide

services to eligible children under subsection (b) identified as having

the greatest need for special assistance.

(b) ELIGIBLE CHILDREN.—

(1) ELIGIBLE POPULATION.—

(A) IN GENERAL.—The eligible population for services

under this section is—

(i) children not older than age 21 who are entitled

to a free public education through grade 12; and

(ii) children who are not yet at a grade level

at which the local educational agency provides a free

public education.

(B) ELIGIBLE CHILDREN FROM ELIGIBLE POPULATION.—

From the population described in subparagraph (A), eligible

children are children identified by the school as failing,

or most at risk of failing, to meet the State’s challenging

student academic achievement standards on the basis of

multiple, educationally related, objective criteria established

by the local educational agency and supplemented

by the school, except that children from preschool through

grade 2 shall be selected solely on the basis of such criteria

as teacher judgment, interviews with parents, and developmentally

appropriate measures.

20 USC 6315.

(2) CHILDREN INCLUDED.—

(A) IN GENERAL.—Children who are economically disadvantaged,

children with disabilities, migrant children or

limited English proficient children, are eligible for services

under this part on the same basis as other children selected

to receive services under this part.

(B) HEAD START, EVEN START, OR EARLY READING FIRST

CHILDREN.—A child who, at any time in the 2 years preceding

the year for which the determination is made,

participated in a Head Start, Even Start, or Early Reading

First program, or in preschool services under this title,

is eligible for services under this part.

(C) PART C CHILDREN.—A child who, at any time in

the 2 years preceding the year for which the determination

is made, received services under part C is eligible for

services under this part.

(D) NEGLECTED OR DELINQUENT CHILDREN.—A child

in a local institution for neglected or delinquent children

and youth or attending a community day program for such

children is eligible for services under this part.

(E) HOMELESS CHILDREN.—A child who is homeless

and attending any school served by the local educational

agency is eligible for services under this part.

(3) SPECIAL RULE.—Funds received under this part may

not be used to provide services that are otherwise required

by law to be made available to children described in paragraph

(2) but may be used to coordinate or supplement such services.

(c) COMPONENTS OF A TARGETED ASSISTANCE SCHOOL PROGRAM.



(1) IN GENERAL.—To assist targeted assistance schools

and local educational agencies to meet their responsibility to

provide for all their students served under this part the opportunity

to meet the State’s challenging student academic

achievement standards in subjects as determined by the State,

each targeted assistance program under this section shall—

(A) use such program’s resources under this part to

help participating children meet such State’s challenging

student academic achievement standards expected for all

children;

(B) ensure that planning for students served under

this part is incorporated into existing school planning;

(C) use effective methods and instructional strategies

that are based on scientifically based research that

strengthens the core academic program of the school and

that—

(i) give primary consideration to providing

extended learning time, such as an extended school

year, before- and after-school, and summer programs

and opportunities;

(ii) help provide an accelerated, high-quality curriculum,

including applied learning; and

(iii) minimize removing children from the regular

classroom during regular school hours for instruction

provided under this part;

(D) coordinate with and support the regular education

program, which may include services to assist preschool

children in the transition from early childhood programs

such as Head Start, Even Start, Early Reading First or

State-run preschool programs to elementary school programs;

(E) provide instruction by highly qualified teachers;

(F) in accordance with subsection (e)(3) and section

1119, provide opportunities for professional development

with resources provided under this part, and, to the extent

practicable, from other sources, for teachers, principals,

and paraprofessionals, including, if appropriate, pupil services

personnel, parents, and other staff, who work with

participating children in programs under this section or

in the regular education program;

(G) provide strategies to increase parental involvement

in accordance with section 1118, such as family literacy

services; and

(H) coordinate and integrate Federal, State, and local

services and programs, including programs supported

under this Act, violence prevention programs, nutrition

programs, housing programs, Head Start, adult education,

vocational and technical education, and job training.

(2) REQUIREMENTS.—Each school conducting a program

under this section shall assist participating children selected

in accordance with subsection (b) to meet the State’s proficient

and advanced levels of achievement by—

(A) the coordinating of resources provided under this

part with other resources; and

(B) reviewing, on an ongoing basis, the progress of

participating children and revising the targeted assistance

program, if necessary, to provide additional assistance to

enable such children to meet the State’s challenging student

academic achievement standards, such as an extended

school year, before- and after-school, and summer programs

and opportunities, training for teachers regarding how to

identify students who need additional assistance, and

training for teachers regarding how to implement student

academic achievement standards in the classroom.

(d) INTEGRATION OF PROFESSIONAL DEVELOPMENT.—To promote

the integration of staff supported with funds under this part

into the regular school program and overall school planning and

improvement efforts, public school personnel who are paid with

funds received under this part may—

(1) participate in general professional development and

school planning activities; and

(2) assume limited duties that are assigned to similar

personnel who are not so paid, including duties beyond classroom

instruction or that do not benefit participating children,

so long as the amount of time spent on such duties is the

same proportion of total work time as prevails with respect

to similar personnel at the same school.

(e) SPECIAL RULES.—

(1) SIMULTANEOUS SERVICE.—Nothing in this section shall

be construed to prohibit a school from serving students under

this section simultaneously with students with similar educational

needs, in the same educational settings where appropriate.

(2) COMPREHENSIVE SERVICES.—If—

(A) health, nutrition, and other social services are

not otherwise available to eligible children in a targeted

assistance school and such school, if appropriate, has

engaged in a comprehensive needs assessment and established

a collaborative partnership with local service providers;

and

(B) funds are not reasonably available from other

public or private sources to provide such services, then

a portion of the funds provided under this part may be

used as a last resort to provide such services, including—

(i) the provision of basic medical equipment, such

as eyeglasses and hearing aids;

(ii) compensation of a coordinator; and

(iii) professional development necessary to assist

teachers, pupil services personnel, other staff, and parents

in identifying and meeting the comprehensive

needs of eligible children.

(3) PROFESSIONAL DEVELOPMENT.—Each school receiving

funds under this part for any fiscal year shall devote sufficient

resources to carry out effectively the professional development

activities described in subparagraph (F) of subsection (c)(1)

in accordance with section 1119 for such fiscal year, and a

school may enter into a consortium with another school to

carry out such activities.

SEC. 1116. ACADEMIC ASSESSMENT AND LOCAL EDUCATIONAL

AGENCY AND SCHOOL IMPROVEMENT.

(a) LOCAL REVIEW.—

(1) IN GENERAL.—Each local educational agency receiving

funds under this part shall—

(A) use the State academic assessments and other

indicators described in the State plan to review annually

the progress of each school served under this part to determine

whether the school is making adequate yearly

progress as defined in section 1111(b)(2);

(B) at the local educational agency’s discretion, use

any academic assessments or any other academic indicators

described in the local educational agency’s plan under section

1112(b)(1)(A) and (B) to review annually the progress

of each school served under this part to determine whether

the school is making adequate yearly progress as defined

in section 1111(b)(2), except that the local educational

agency may not use such indicators (other than as provided

for in section 1111(b)(2)(I)) if the indicators reduce the

number or change the schools that would otherwise be

subject to school improvement, corrective action, or restructuring

under section 1116 if such additional indicators

were not used, but may identify additional schools for

school improvement or in need of corrective action or

restructuring;

(C) publicize and disseminate the results of the local

annual review described in paragraph (1) to parents,

teachers, principals, schools, and the community so that

the teachers, principals, other staff, and schools can continually

refine, in an instructionally useful manner, the program

of instruction to help all children served under this

20 USC 6316.

part meet the challenging State student academic achievement

standards established under section 1111(b)(1); and

(D) review the effectiveness of the actions and activities

the schools are carrying out under this part with

respect to parental involvement, professional development,

and other activities assisted under this part.

(2) AVAILABLE RESULTS.—The State educational agency

shall ensure that the results of State academic assessments

administered in that school year are available to the local

educational agency before the beginning of the next school

year.

(b) SCHOOL IMPROVEMENT.—

(1) GENERAL REQUIREMENTS.—

(A) IDENTIFICATION.—Subject to subparagraph (C), a

local educational agency shall identify for school improvement

any elementary school or secondary school served

under this part that fails, for 2 consecutive years, to make

adequate yearly progress as defined in the State’s plan

under section 1111(b)(2).

(B) DEADLINE.—The identification described in

subparagraph (A) shall take place before the beginning

of the school year following such failure to make adequate

yearly progress.

(C) APPLICATION.—Subparagraph (A) shall not apply

to a school if almost every student in each group specified

in section 1111(b)(2)(C)(v) enrolled in such school is meeting

or exceeding the State’s proficient level of academic achievement.

(D) TARGETED ASSISTANCE SCHOOLS.—To determine if

an elementary school or a secondary school that is conducting

a targeted assistance program under section 1115

should be identified for school improvement, corrective

action, or restructuring under this section, a local educational

agency may choose to review the progress of only

the students in the school who are served, or are eligible

for services, under this part.

(E) PUBLIC SCHOOL CHOICE.—

(i) IN GENERAL.—In the case of a school identified

for school improvement under this paragraph, the local

educational agency shall, not later than the first day

of the school year following such identification, provide

all students enrolled in the school with the option

to transfer to another public school served by the local

educational agency, which may include a public charter

school, that has not been identified for school improvement

under this paragraph, unless such an option

is prohibited by State law.

(ii) RULE.—In providing students the option to

transfer to another public school, the local educational

agency shall give priority to the lowest achieving children

from low-income families, as determined by the

local educational agency for purposes of allocating

funds to schools under section 1113(c)(1).

(F) TRANSFER.—Students who use the option to

transfer under subparagraph (E) and paragraph (5)(A),

(7)(C)(i), or (8)(A)(i) or subsection (c)(10)(C)(vii) shall be

enrolled in classes and other activities in the public school

to which the students transfer in the same manner as

all other children at the public school.

(2) OPPORTUNITY TO REVIEW AND PRESENT EVIDENCE; TIME

LIMIT.—

(A) IDENTIFICATION.—Before identifying an

elementary school or a secondary school for school improvement

under paragraphs (1) or (5)(A), for corrective action

under paragraph (7), or for restructuring under paragraph

(8), the local educational agency shall provide the school

with an opportunity to review the school-level data,

including academic assessment data, on which the proposed

identification is based.

(B) EVIDENCE.—If the principal of a school proposed

for identification under paragraph (1), (5)(A), (7), or (8)

believes, or a majority of the parents of the students

enrolled in such school believe, that the proposed identification

is in error for statistical or other substantive reasons,

the principal may provide supporting evidence to the local

educational agency, which shall consider that evidence

before making a final determination.

(C) FINAL DETERMINATION.—Not later than 30 days

after a local educational agency provides the school with

the opportunity to review such school-level data, the local

educational agency shall make public a final determination

on the status of the school with respect to the identification.

(3) SCHOOL PLAN.—

(A) REVISED PLAN.—After the resolution of a review

under paragraph (2), each school identified under paragraph

(1) for school improvement shall, not later than

3 months after being so identified, develop or revise a

school plan, in consultation with parents, school staff, the

local educational agency serving the school, and outside

experts, for approval by such local educational agency.

The school plan shall cover a 2-year period and—

(i) incorporate strategies based on scientifically

based research that will strengthen the core academic

subjects in the school and address the specific academic

issues that caused the school to be identified for school

improvement, and may include a strategy for the

implementation of a comprehensive school reform

model that includes each of the components described

in part F;

(ii) adopt policies and practices concerning the

school’s core academic subjects that have the greatest

likelihood of ensuring that all groups of students specified

in section 1111(b)(2)(C)(v) and enrolled in the

school will meet the State’s proficient level of achievement

on the State academic assessment described in

section 1111(b)(3) not later than 12 years after the

end of the 2001–2002 school year;

(iii) provide an assurance that the school will

spend not less than 10 percent of the funds made

available to the school under section 1113 for each

fiscal year that the school is in school improvement

status, for the purpose of providing to the school’s

teachers and principal high-quality professional

development that—

(I) directly addresses the academic achievement

problem that caused the school to be identified

for school improvement;

(II) meets the requirements for professional

development activities under section 1119; and

(III) is provided in a manner that affords

increased opportunity for participating in that

professional development;

(iv) specify how the funds described in clause

(iii) will be used to remove the school from school

improvement status;

(v) establish specific annual, measurable objectives

for continuous and substantial progress by each

group of students specified in section 1111(b)(2)(C)(v)

and enrolled in the school that will ensure that all

such groups of students will, in accordance with adequate

yearly progress as defined in section 1111(b)(2),

meet the State’s proficient level of achievement on

the State academic assessment described in section

1111(b)(3) not later than 12 years after the end of

the 2001–2002 school year;

(vi) describe how the school will provide written

notice about the identification to parents of each student

enrolled in such school, in a format and, to the

extent practicable, in a language that the parents can

understand;

(vii) specify the responsibilities of the school, the

local educational agency, and the State educational

agency serving the school under the plan, including

the technical assistance to be provided by the local

educational agency under paragraph (4) and the local

educational agency’s responsibilities under section

1120A;

(viii) include strategies to promote effective

parental involvement in the school;

(ix) incorporate, as appropriate, activities before

school, after school, during the summer, and during

any extension of the school year; and

(x) incorporate a teacher mentoring program.

(B) CONDITIONAL APPROVAL.—The local educational

agency may condition approval of a school plan under this

paragraph on—

(i) inclusion of one or more of the corrective

actions specified in paragraph (7)(C)(iv); or

(ii) feedback on the school improvement plan from

parents and community leaders.

(C) PLAN IMPLEMENTATION.—Except as provided in

subparagraph (D), a school shall implement the school plan

(including a revised plan) expeditiously, but not later than

the beginning of the next full school year following the

identification under paragraph (1).

(D) PLAN APPROVED DURING SCHOOL YEAR.—Notwithstanding

subparagraph (C), if a plan is not approved prior

to the beginning of a school year, such plan shall be implemented

immediately upon approval.

(E) LOCAL EDUCATIONAL AGENCY APPROVAL.—The local

educational agency, within 45 days of receiving a school

plan, shall—

(i) establish a peer review process to assist with

review of the school plan; and

(ii) promptly review the school plan, work with

the school as necessary, and approve the school plan

if the plan meets the requirements of this paragraph.

(4) TECHNICAL ASSISTANCE.—

(A) IN GENERAL.—For each school identified for school

improvement under paragraph (1), the local educational

agency serving the school shall ensure the provision of

technical assistance as the school develops and implements

the school plan under paragraph (3) throughout the plan’s

duration.

(B) SPECIFIC ASSISTANCE.—Such technical

assistance—

(i) shall include assistance in analyzing data from

the assessments required under section 1111(b)(3), and

other examples of student work, to identify and address

problems in instruction, and problems if any, in implementing

the parental involvement requirements

described in section 1118, the professional development

requirements described in section 1119, and the

responsibilities of the school and local educational

agency under the school plan, and to identify and

address solutions to such problems;

(ii) shall include assistance in identifying and

implementing professional development, instructional

strategies, and methods of instruction that are based

on scientifically based research and that have proven

effective in addressing the specific instructional issues

that caused the school to be identified for school

improvement;

(iii) shall include assistance in analyzing and

revising the school’s budget so that the school’s

resources are more effectively allocated to the activities

most likely to increase student academic achievement

and to remove the school from school improvement

status; and

(iv) may be provided—

(I) by the local educational agency, through

mechanisms authorized under section 1117; or

(II) by the State educational agency, an

institution of higher education (that is in full

compliance with all the reporting provisions of title

II of the Higher Education Act of 1965), a private

not-for-profit organization or for-profit organization,

an educational service agency, or another

entity with experience in helping schools improve

academic achievement.

(C) SCIENTIFICALLY BASED RESEARCH.—Technical

assistance provided under this section by a local educational

agency or an entity approved by that agency shall

be based on scientifically based research.

(5) FAILURE TO MAKE ADEQUATE YEARLY PROGRESS AFTER

IDENTIFICATION.—In the case of any school served under this

Establishment.

part that fails to make adequate yearly progress, as set out

in the State’s plan under section 1111(b)(2), by the end of

the first full school year after identification under paragraph

(1), the local educational agency serving such school—

(A) shall continue to provide all students enrolled

in the school with the option to transfer to another public

school served by the local educational agency in accordance

with subparagraphs (E) and (F);

(B) shall make supplemental educational services

available consistent with subsection (e)(1); and

(C) shall continue to provide technical assistance.

(6) NOTICE TO PARENTS.—A local educational agency shall

promptly provide to a parent or parents (in an understandable

and uniform format and, to the extent practicable, in a language

the parents can understand) of each student enrolled in an

elementary school or a secondary school identified for school

improvement under paragraph (1), for corrective action under

paragraph (7), or for restructuring under paragraph (8)—

(A) an explanation of what the identification means,

and how the school compares in terms of academic achievement

to other elementary schools or secondary schools

served by the local educational agency and the State educational

agency involved;

(B) the reasons for the identification;

(C) an explanation of what the school identified for

school improvement is doing to address the problem of

low achievement;

(D) an explanation of what the local educational

agency or State educational agency is doing to help the

school address the achievement problem;

(E) an explanation of how the parents can become

involved in addressing the academic issues that caused

the school to be identified for school improvement; and

(F) an explanation of the parents’ option to transfer

their child to another public school under paragraphs (1)(E),

(5)(A), (7)(C)(i), (8)(A)(i), and subsection (c)(10)(C)(vii) (with

transportation provided by the agency when required by

paragraph (9)) or to obtain supplemental educational services

for the child, in accordance with subsection (e).

(7) CORRECTIVE ACTION.—

(A) IN GENERAL.—In this subsection, the term ‘corrective

action’ means action, consistent with State law, that—

(i) substantially and directly responds to—

(I) the consistent academic failure of a school

that caused the local educational agency to take

such action; and

(II) any underlying staffing, curriculum, or

other problems in the school; and

(ii) is designed to increase substantially the likelihood

that each group of students described in

1111(b)(2)(C) enrolled in the school identified for corrective

action will meet or exceed the State’s proficient

levels of achievement on the State academic assessments

described in section 1111(b)(3).

(B) SYSTEM.—In order to help students served under

this part meet challenging State student academic achievement

standards, each local educational agency shall implement

a system of corrective action in accordance with subparagraphs

(C) through (E).

(C) ROLE OF LOCAL EDUCATIONAL AGENCY.—In the

case of any school served by a local educational agency

under this part that fails to make adequate yearly progress,

as defined by the State under section 1111(b)(2), by the

end of the second full school year after the identification

under paragraph (1), the local educational agency shall—

(i) continue to provide all students enrolled in

the school with the option to transfer to another public

school served by the local educational agency, in

accordance with paragraph (1)(E) and (F);

(ii) continue to provide technical assistance consistent

with paragraph (4) while instituting any corrective

action under clause (iv);

(iii) continue to make supplemental educational

services available, in accordance with subsection (e),

to children who remain in the school; and

(iv) identify the school for corrective action and

take at least one of the following corrective actions:

(I) Replace the school staff who are relevant

to the failure to make adequate yearly progress.

(II) Institute and fully implement a new curriculum,

including providing appropriate professional

development for all relevant staff, that is

based on scientifically based research and offers

substantial promise of improving educational

achievement for low-achieving students and

enabling the school to make adequate yearly

progress.

(III) Significantly decrease management

authority at the school level.

(IV) Appoint an outside expert to advise the

school on its progress toward making adequate

yearly progress, based on its school plan under

paragraph (3).

(V) Extend the school year or school day for

the school.

(VI) Restructure the internal organizational

structure of the school.

(D) DELAY.—Notwithstanding any other provision of

this paragraph, the local educational agency may delay,

for a period not to exceed 1 year, implementation of the

requirements under paragraph (5), corrective action under

this paragraph, or restructuring under paragraph (8) if

the school makes adequate yearly progress for 1 year or

if its failure to make adequate yearly progress is due to

exceptional or uncontrollable circumstances, such as a natural

disaster or a precipitous and unforeseen decline in

the financial resources of the local educational agency or

school. No such period shall be taken into account in determining

the number of consecutive years of failure to make

adequate yearly progress.

(E) PUBLICATION AND DISSEMINATION.—The local educational

agency shall publish and disseminate information

regarding any corrective action the local educational agency

takes under this paragraph at a school—

(i) to the public and to the parents of each student

enrolled in the school subject to corrective action;

(ii) in an understandable and uniform format and,

to the extent practicable, provided in a language that

the parents can understand; and

(iii) through such means as the Internet, the

media, and public agencies.

(8) RESTRUCTURING.—

(A) FAILURE TO MAKE ADEQUATE YEARLY PROGRESS.—

If, after 1 full school year of corrective action under paragraph

(7), a school subject to such corrective action continues

to fail to make adequate yearly progress, then the

local educational agency shall—

(i) continue to provide all students enrolled in

the school with the option to transfer to another public

school served by the local educational agency, in

accordance with paragraph (1)(E) and (F);

(ii) continue to make supplemental educational

services available, in accordance with subsection (e),

to children who remain in the school; and

(iii) prepare a plan and make necessary arrangements

to carry out subparagraph (B).

(B) ALTERNATIVE GOVERNANCE.—Not later than the

beginning of the school year following the year in which

the local educational agency implements subparagraph (A),

the local educational agency shall implement one of the

following alternative governance arrangements for the

school consistent with State law:

(i) Reopening the school as a public charter school.

(ii) Replacing all or most of the school staff (which

may include the principal) who are relevant to the

failure to make adequate yearly progress.

(iii) Entering into a contract with an entity, such

as a private management company, with a demonstrated

record of effectiveness, to operate the public

school.

(iv) Turning the operation of the school over to

the State educational agency, if permitted under State

law and agreed to by the State.

(v) Any other major restructuring of the school’s

governance arrangement that makes fundamental

reforms, such as significant changes in the school’s

staffing and governance, to improve student academic

achievement in the school and that has substantial

promise of enabling the school to make adequate yearly

progress as defined in the State plan under section

1111(b)(2). In the case of a rural local educational

agency with a total of less than 600 students in average

daily attendance at the schools that are served by

the agency and all of whose schools have a School

Locale Code of 7 or 8, as determined by the Secretary,

the Secretary shall, at such agency’s request, provide

Deadline.

technical assistance to such agency for the purpose

of implementing this clause.

(C) PROMPT NOTICE.—The local educational agency

shall—

(i) provide prompt notice to teachers and parents

whenever subparagraph (A) or (B) applies; and

(ii) provide the teachers and parents with an adequate

opportunity to—

(I) comment before taking any action under

those subparagraphs; and

(II) participate in developing any plan under

subparagraph (A)(iii).

(9) TRANSPORTATION.—In any case described in paragraph

(1)(E) for schools described in paragraphs (1)(A), (5), (7)(C)(i),

and (8)(A), and subsection (c)(10)(C)(vii), the local educational

agency shall provide, or shall pay for the provision of, transportation

for the student to the public school the student attends.

(10) FUNDS FOR TRANSPORTATION AND SUPPLEMENTAL EDUCATIONAL

SERVICES.—

(A) IN GENERAL.—Unless a lesser amount is needed

to comply with paragraph (9) and to satisfy all requests

for supplemental educational services under subsection (e),

a local educational agency shall spend an amount equal

to 20 percent of its allocation under subpart 2, from which

the agency shall spend—

(i) an amount equal to 5 percent of its allocation

under subpart 2 to provide, or pay for, transportation

under paragraph (9);

(ii) an amount equal to 5 percent of its allocation

under subpart 2 to provide supplemental educational

services under subsection (e); and

(iii) an amount equal to the remaining 10 percent

of its allocation under subpart 2 for transportation

under paragraph (9), supplemental educational services

under subsection (e), or both, as the agency determines.

(B) TOTAL AMOUNT.—The total amount described in

subparagraph (A)(ii) is the maximum amount the local

educational agency shall be required to spend under this

part on supplemental educational services described in subsection

(e).

(C) INSUFFICIENT FUNDS.—If the amount of funds

described in subparagraph (A)(ii) or (iii) and available to

provide services under this subsection is insufficient to

provide supplemental educational services to each child

whose parents request the services, the local educational

agency shall give priority to providing the services to the

lowest-achieving children.

(D) PROHIBITION.—A local educational agency shall

not, as a result of the application of this paragraph, reduce

by more than 15 percent the total amount made available

under section 1113(c) to a school described in paragraph

(7)(C) or (8)(A) of subsection (b).

(11) COOPERATIVE AGREEMENT.—In any case described in

paragraph (1)(E), (5)(A), (7)(C)(i), or (8)(A)(i), or subsection

(c)(10)(C)(vii) if all public schools served by the local educational

agency to which a child may transfer are identified for school

improvement, corrective action or restructuring, the agency

shall, to the extent practicable, establish a cooperative agreement

with other local educational agencies in the area for

a transfer.

(12) DURATION.—If any school identified for school

improvement, corrective action, or restructuring makes adequate

yearly progress for two consecutive school years, the

local educational agency shall no longer subject the school

to the requirements of school improvement, corrective action,

or restructuring or identify the school for school improvement

for the succeeding school year.

(13) SPECIAL RULE.—A local educational agency shall

permit a child who transferred to another school under this

subsection to remain in that school until the child has completed

the highest grade in that school. The obligation of the

local educational agency to provide, or to provide for, transportation

for the child ends at the end of a school year if the

local educational agency determines that the school from which

the child transferred is no longer identified for school improvement

or subject to corrective action or restructuring.

(14) STATE EDUCATIONAL AGENCY RESPONSIBILITIES.—The

State educational agency shall—

(A) make technical assistance under section 1117

available to schools identified for school improvement,

corrective action, or restructuring under this subsection

consistent with section 1117(a)(2);

(B) if the State educational agency determines that

a local educational agency failed to carry out its responsibilities

under this subsection, take such corrective actions

as the State educational agency determines to be appropriate

and in compliance with State law;

(C) ensure that academic assessment results under

this part are provided to schools before any identification

of a school may take place under this subsection; and

(D) for local educational agencies or schools identified

for improvement under this subsection, notify the Secretary

of major factors that were brought to the attention of

the State educational agency under section 1111(b)(9) that

have significantly affected student academic achievement.

(c) STATE REVIEW AND LOCAL EDUCATIONAL AGENCY IMPROVEMENT.



(1) IN GENERAL.—A State shall—

(A) annually review the progress of each local educational

agency receiving funds under this part to determine

whether schools receiving assistance under this part

are making adequate yearly progress as defined in section

1111(b)(2) toward meeting the State’s student academic

achievement standards and to determine if each local educational

agency is carrying out its responsibilities under

this section and sections 1117, 1118, and 1119; and

(B) publicize and disseminate to local educational

agencies, teachers and other staff, parents, students, and

the community the results of the State review, including

statistically sound disaggregated results, as required by

section 1111(b)(2).

(2) REWARDS.—In the case of a local educational agency

that, for 2 consecutive years, has exceeded adequate yearly

progress as defined in the State plan under section 1111(b)(2),

the State may make rewards of the kinds described under

section 1117 to the agency.

(3) IDENTIFICATION OF LOCAL EDUCATIONAL AGENCY FOR

IMPROVEMENT.—A State shall identify for improvement any

local educational agency that, for 2 consecutive years, including

the period immediately prior to the date of enactment of the

No Child Left Behind Act of 2001, failed to make adequate

yearly progress as defined in the State’s plan under section

1111(b)(2).

(4) TARGETED ASSISTANCE SCHOOLS.—When reviewing targeted

assistance schools served by a local educational agency,

a State educational agency may choose to review the progress

of only the students in such schools who are served, or are

eligible for services, under this part.

(5) OPPORTUNITY TO REVIEW AND PRESENT EVIDENCE.—

(A) REVIEW.—Before identifying a local educational

agency for improvement under paragraph (3) or corrective

action under paragraph (10), a State educational agency

shall provide the local educational agency with an opportunity

to review the data, including academic assessment

data, on which the proposed identification is based.

(B) EVIDENCE.—If the local educational agency

believes that the proposed identification is in error for

statistical or other substantive reasons, the agency may

provide supporting evidence to the State educational

agency, which shall consider the evidence before making

a final determination not later than 30 days after the

State educational agency provides the local educational

agency with the opportunity to review such data under

subparagraph (A).

(6) NOTIFICATION TO PARENTS.—The State educational

agency shall promptly provide to the parents (in a format

and, to the extent practicable, in a language the parents can

understand) of each student enrolled in a school served by

a local educational agency identified for improvement, the

results of the review under paragraph (1) and, if the agency

is identified for improvement, the reasons for that identification

and how parents can participate in upgrading the quality of

the local educational agency.

(7) LOCAL EDUCATIONAL AGENCY REVISIONS.—

(A) PLAN.—Each local educational agency identified

under paragraph (3) shall, not later than 3 months after

being so identified, develop or revise a local educational

agency plan, in consultation with parents, school staff,

and others. Such plan shall—

(i) incorporate scientifically based research strategies

that strengthen the core academic program in

schools served by the local educational agency;

(ii) identify actions that have the greatest likelihood

of improving the achievement of participating

children in meeting the State’s student academic

achievement standards;

(iii) address the professional development needs

of the instructional staff serving the agency by committing

to spend not less than 10 percent of the funds

received by the local educational agency under subpart

2 for each fiscal year in which the agency is identified

for improvement for professional development

(including funds reserved for professional development

under subsection (b)(3)(A)(iii)), but excluding funds

reserved for professional development under section

1119;

(iv) include specific measurable achievement goals

and targets for each of the groups of students identified

in the disaggregated data pursuant to section

1111(b)(2)(C)(v), consistent with adequate yearly

progress as defined under section 1111(b)(2);

(v) address the fundamental teaching and

learning needs in the schools of that agency, and the

specific academic problems of low-achieving students,

including a determination of why the local educational

agency’s prior plan failed to bring about increased student

academic achievement;

(vi) incorporate, as appropriate, activities before

school, after school, during the summer, and during

an extension of the school year;

(vii) specify the responsibilities of the State educational

agency and the local educational agency under

the plan, including specifying the technical assistance

to be provided by the State educational agency under

paragraph (9) and the local educational agency’s

responsibilities under section 1120A; and

(viii) include strategies to promote effective

parental involvement in the school.

(B) IMPLEMENTATION.—The local educational agency

shall implement the plan (including a revised plan) expeditiously,

but not later than the beginning of the next school

year after the school year in which the agency was identified

for improvement.

(9) STATE EDUCATIONAL AGENCY RESPONSIBILITY.—

(A) TECHNICAL OR OTHER ASSISTANCE.—For each local

educational agency identified under paragraph (3), the

State educational agency shall provide technical or other

assistance if requested, as authorized under section 1117,

to better enable the local educational agency to—

(i) develop and implement the local educational

agency’s plan; and

(ii) work with schools needing improvement.

(B) METHODS AND STRATEGIES.—Technical assistance

provided under this section by the State educational agency

or an entity authorized by such agency shall be supported

by effective methods and instructional strategies based on

scientifically based research. Such technical assistance

shall address problems, if any, in implementing the

parental involvement activities described in section 1118

and the professional development activities described in

section 1119.

(10) CORRECTIVE ACTION.—In order to help students served

under this part meet challenging State student academic

achievement standards, each State shall implement a system

of corrective action in accordance with the following:

(A) DEFINITION.—As used in this paragraph, the term

‘corrective action’ means action, consistent with State law,

that—

(i) substantially and directly responds to the consistent

academic failure that caused the State to take

such action and to any underlying staffing, curricular,

or other problems in the agency; and

(ii) is designed to meet the goal of having all

students served under this part achieve at the proficient

and advanced student academic achievement

levels.

(B) GENERAL REQUIREMENTS.—After providing technical

assistance under paragraph (9) and subject to

subparagraph (E), the State—

(i) may take corrective action at any time with

respect to a local educational agency that has been

identified under paragraph (3);

(ii) shall take corrective action with respect to

any local educational agency that fails to make adequate

yearly progress, as defined by the State, by

the end of the second full school year after the identification

of the agency under paragraph (3); and

(iii) shall continue to provide technical assistance

while instituting any corrective action under clause

(i) or (ii).

(C) CERTAIN CORRECTIVE ACTIONS REQUIRED.—In the

case of a local educational agency identified for corrective

action, the State educational agency shall take at least

one of the following corrective actions:

(i) Deferring programmatic funds or reducing

administrative funds.

(ii) Instituting and fully implementing a new curriculum

that is based on State and local academic

content and achievement standards, including providing

appropriate professional development based on

scientifically based research for all relevant staff, that

offers substantial promise of improving educational

achievement for low-achieving students.

(iii) Replacing the local educational agency personnel

who are relevant to the failure to make adequate

yearly progress.

(iv) Removing particular schools from the jurisdiction

of the local educational agency and establishing

alternative arrangements for public governance and

supervision of such schools.

(v) Appointing, through the State educational

agency, a receiver or trustee to administer the affairs

of the local educational agency in place of the superintendent

and school board.

(vi) Abolishing or restructuring the local educational

agency.

(vii) Authorizing students to transfer from a

school operated by the local educational agency to a

higher-performing public school operated by another

local educational agency in accordance with subsections

(b)(1)(E) and (F), and providing to such students

transportation (or the costs of transportation) to such

schools consistent with subsection (b)(9), in conjunction

with carrying out not less than one additional action

described under this subparagraph.

(D) HEARING.—Prior to implementing any corrective

action under this paragraph, the State educational agency

shall provide notice and a hearing to the affected local

educational agency, if State law provides for such notice

and hearing. The hearing shall take place not later than

45 days following the decision to implement corrective

action.

(E) NOTICE TO PARENTS.—The State educational

agency shall publish, and disseminate to parents and the

public, information on any corrective action the State educational

agency takes under this paragraph through such

means as the Internet, the media, and public agencies.

(F) DELAY.—Notwithstanding subparagraph (B)(ii), a

State educational agency may delay, for a period not to

exceed 1 year, implementation of corrective action under

this paragraph if the local educational agency makes adequate

yearly progress for 1 year or its failure to make

adequate yearly progress is due to exceptional or uncontrollable

circumstances, such as a natural disaster or a precipitous

and unforeseen decline in the financial resources of

the local educational agency. No such period shall be taken

into account in determining the number of consecutive

years of failure to make adequate yearly progress.

(11) SPECIAL RULE.—If a local educational agency makes

adequate yearly progress for two consecutive school years beginning

after the date of identification of the agency under paragraph

(3), the State educational agency need no longer identify

the local educational agency for improvement or subject the

local educational agency to corrective action for the succeeding

school year.

(d) CONSTRUCTION.—Nothing in this section shall be construed

to alter or otherwise affect the rights, remedies, and procedures

afforded school or school district employees under Federal, State,

or local laws (including applicable regulations or court orders) or

under the terms of collective bargaining agreements, memoranda

of understanding, or other agreements between such employees

and their employers.

(e) SUPPLEMENTAL EDUCATIONAL SERVICES.—

(1) SUPPLEMENTAL EDUCATIONAL SERVICES.—In the case

of any school described in paragraph (5), (7), or (8) of subsection

(b), the local educational agency serving such school shall,

subject to this subsection, arrange for the provision of supplemental

educational services to eligible children in the school

from a provider with a demonstrated record of effectiveness,

that is selected by the parents and approved for that purpose

by the State educational agency in accordance with reasonable

criteria, consistent with paragraph (5), that the State educational

agency shall adopt.

(2) LOCAL EDUCATIONAL AGENCY RESPONSIBILITIES.—Each

local educational agency subject to this subsection shall—

(A) provide, at a minimum, annual notice to parents

(in an understandable and uniform format and, to the

extent practicable, in a language the parents can understand)

of—

(i) the availability of services under this subsection;

(ii) the identity of approved providers of those

services that are within the local educational agency

or whose services are reasonably available in neighboring

local educational agencies; and

(iii) a brief description of the services, qualifications,

and demonstrated effectiveness of each such provider;

(B) if requested, assist parents in choosing a provider

from the list of approved providers maintained by the State;

(C) apply fair and equitable procedures for serving

students if the number of spaces at approved providers

is not sufficient to serve all students; and

(D) not disclose to the public the identity of any student

who is eligible for, or receiving, supplemental educational

services under this subsection without the written

permission of the parents of the student.

(3) AGREEMENT.—In the case of the selection of an

approved provider by a parent, the local educational agency

shall enter into an agreement with such provider. Such agreement

shall—

(A) require the local educational agency to develop,

in consultation with parents (and the provider chosen by

the parents), a statement of specific achievement goals

for the student, how the student’s progress will be measured,

and a timetable for improving achievement that,

in the case of a student with disabilities, is consistent

with the student’s individualized education program under

section 614(d) of the Individuals with Disabilities Education

Act;

(B) describe how the student’s parents and the student’s

teacher or teachers will be regularly informed of

the student’s progress;

(C) provide for the termination of such agreement

if the provider is unable to meet such goals and timetables;

(D) contain provisions with respect to the making

of payments to the provider by the local educational agency;

and

(E) prohibit the provider from disclosing to the public

the identity of any student eligible for, or receiving, supplemental

educational services under this subsection without

the written permission of the parents of such student.

(4) STATE EDUCATIONAL AGENCY RESPONSIBILITIES.—A

State educational agency shall—

(A) in consultation with local educational agencies,

parents, teachers, and other interested members of the

public, promote maximum participation by providers to

ensure, to the extent practicable, that parents have as

many choices as possible;

(B) develop and apply objective criteria, consistent

with paragraph (5), to potential providers that are based

on a demonstrated record of effectiveness in increasing

the academic proficiency of students in subjects relevant

to meeting the State academic content and student achievement

standards adopted under section 1111(b)(1);

(C) maintain an updated list of approved providers

across the State, by school district, from which parents

may select;

(D) develop, implement, and publicly report on standards

and techniques for monitoring the quality and

effectiveness of the services offered by approved providers

under this subsection, and for withdrawing approval from

providers that fail, for 2 consecutive years, to contribute

to increasing the academic proficiency of students served

under this subsection as described in subparagraph (B);

and

(E) provide annual notice to potential providers of

supplemental educational services of the opportunity to

provide services under this subsection and of the applicable

procedures for obtaining approval from the State educational

agency to be an approved provider of those services.

(5) CRITERIA FOR PROVIDERS.—In order for a provider to

be included on the State list under paragraph (4)(C), a provider

shall agree to carry out the following:

(A) Provide parents of children receiving supplemental

educational services under this subsection and the appropriate

local educational agency with information on the

progress of the children in increasing achievement, in a

format and, to the extent practicable, a language that

such parents can understand.

(B) Ensure that instruction provided and content used

by the provider are consistent with the instruction provided

and content used by the local educational agency and State,

and are aligned with State student academic achievement

standards.

(C) Meet all applicable Federal, State, and local

health, safety, and civil rights laws.

(D) Ensure that all instruction and content under

this subsection are secular, neutral, and nonideological.

(6) AMOUNTS FOR SUPPLEMENTAL EDUCATIONAL SERVICES.

—The amount that a local educational agency shall make

available for supplemental educational services for each child

receiving those services under this subsection shall be the lesser

of—

(A) the amount of the agency’s allocation under subpart

2, divided by the number of children from families

below the poverty level counted under section 1124(c)(1)(A);

or

(B) the actual costs of the supplemental educational

services received by the child.

(7) FUNDS PROVIDED BY STATE EDUCATIONAL AGENCY.—

Each State educational agency may use funds that the agency

reserves under this part, and part A of title V, to assist local

educational agencies that do not have sufficient funds to provide

services under this subsection for all eligible students

requesting such services.

(8) DURATION.—The local educational agency shall continue

to provide supplemental educational services to a child

receiving such services under this subsection until the end

of the school year in which such services were first received.

(9) PROHIBITION.—Nothing contained in this subsection

shall permit the making of any payment for religious worship

or instruction.

(10) WAIVER.—

(A) REQUIREMENT.—At the request of a local educational

agency, a State educational agency may waive,

in whole or in part, the requirement of this subsection

to provide supplemental educational services if the State

educational agency determines that—

(i) none of the providers of those services on the

list approved by the State educational agency under

paragraph (4)(C) makes those services available in the

area served by the local educational agency or within

a reasonable distance of that area; and

(ii) the local educational agency provides evidence

that it is not able to provide those services.

(B) NOTIFICATION.—The State educational agency

shall notify the local educational agency, within 30 days

of receiving the local educational agency’s request for a

waiver under subparagraph (A), whether the request is

approved or disapproved and, if disapproved, the reasons

for the disapproval, in writing.

(11) SPECIAL RULE.—If State law prohibits a State educational

agency from carrying out one or more of its responsibilities

under paragraph (4) with respect to those who provide,

or seek approval to provide, supplemental educational services,

each local educational agency in the State shall carry out

those responsibilities with respect to its students who are

eligible for those services.

(12) DEFINITIONS.—In this subsection—

(A) the term ‘eligible child’ means a child from a

low-income family, as determined by the local educational

agency for purposes of allocating funds to schools under

section 1113(c)(1);

(B) the term ‘provider’ means a non-profit entity, a

for-profit entity, or a local educational agency that—

(i) has a demonstrated record of effectiveness in

increasing student academic achievement;

(ii) is capable of providing supplemental educational

services that are consistent with the instructional

program of the local educational agency and

the academic standards described under section 1111;

and

(iii) is financially sound; and

(C) the term ‘supplemental educational services’

means tutoring and other supplemental academic enrichment

services that are—

(i) in addition to instruction provided during the

school day; and

(ii) are of high quality, research-based, and

specifically designed to increase the academic achievement

of eligible children on the academic assessments

required under section 1111 and attain proficiency in

meeting the State’s academic achievement standards.

(f) SCHOOLS AND LEAS PREVIOUSLY IDENTIFIED FOR IMPROVEMENT

OR CORRECTIVE ACTION.—

(1) SCHOOLS.—

(A) SCHOOL IMPROVEMENT.—

(i) SCHOOLS IN SCHOOL-IMPROVEMENT STATUS

BEFORE DATE OF ENACTMENT.—Any school that was

in the first year of school improvement status under

this section on the day preceding the date of enactment

of the No Child Left Behind Act of 2001 (as this section

was in effect on such day) shall be treated by the

local educational agency as a school that is in the

first year of school improvement status under paragraph

(1).

(ii) SCHOOLS IN SCHOOL-IMPROVEMENT STATUS FOR

2 OR MORE YEARS BEFORE DATE OF ENACTMENT.—Any

school that was in school improvement status under

this section for two or more consecutive school years

preceding the date of enactment of the No Child Left

Behind Act of 2001 (as this section was in effect on

such day) shall be treated by the local educational

agency as a school described in subsection (b)(5).

(B) CORRECTIVE ACTION.—Any school that was in

corrective action status under this section on the day preceding

the date of enactment of the No Child Left Behind

Act of 2001 (as this section was in effect on such day)

shall be treated by the local educational agency as a school

described in paragraph (7).

(2) LEAS.—

(A) LEA IMPROVEMENT.—A State shall identify for

improvement under subsection (c)(3) any local educational

agency that was in improvement status under this section

as this section was in effect on the day preceding the

date of enactment of the No Child Left Behind Act of

2001.

(B) CORRECTIVE ACTION.—A State shall identify for

corrective action under subsection (c)(10) any local educational

agency that was in corrective action status under

this section as this section was in effect on the day preceding

the date of enactment of the No Child Left Behind

Act of 2001.

(C) SPECIAL RULE.—For the schools and other local

educational agencies described under paragraphs (1) and

(2), as required, the State shall ensure that public school

choice in accordance with subparagraphs (b)(1)(E) and (F)

and supplemental education services in accordance with

subsection (e) are provided not later than the first day

of the 2002–2003 school year.

(D) TRANSITION.—With respect to a determination

that a local educational agency has for 2 consecutive years

failed to make adequate yearly progress as defined in the

State plan under section 1111(b)(2), such determination

shall include in such 2-year period any continuous period

of time immediately preceding the date of enactment of

the No Child Left Behind Act of 2001 during which the

agency has failed to make such progress.

(g) SCHOOLS FUNDED BY THE BUREAU OF INDIAN AFFAIRS.—

(1) ADEQUATE YEARLY PROGRESS FOR BUREAU FUNDED

SCHOOLS.—

(A) DEVELOPMENT OF DEFINITION.—

(i) DEFINITION.—The Secretary of the Interior, in

consultation with the Secretary if the Secretary of

Interior requests the consultation, using the process

set out in section 1138(b) of the Education Amendments

of 1978, shall define adequate yearly progress,

consistent with section 1111(b), for the schools funded

by the Bureau of Indian Affairs on a regional or tribal

basis, as appropriate, taking into account the unique

circumstances and needs of such schools and the students

served by such schools.

(ii) USE OF DEFINITION.—The Secretary of the

Interior, consistent with clause (i), may use the definition

of adequate yearly progress that the State in

which the school that is funded by the Bureau is

located uses consistent with section 1111(b), or in the

case of schools that are located in more than one State,

the Secretary of the Interior may use whichever State

definition of adequate yearly progress that best meets

the unique circumstances and needs of such school

or schools and the students the schools serve.

(B) WAIVER.—The tribal governing body or school

board of a school funded by the Bureau of Indian Affairs

may waive, in part or in whole, the definition of adequate

yearly progress established pursuant to paragraph (A)

where such definition is determined by such body or school

board to be inappropriate. If such definition is waived,

the tribal governing body or school board shall, within

60 days thereafter, submit to the Secretary of Interior

a proposal for an alternative definition of adequate yearly

progress, consistent with section 1111(b), that takes into

account the unique circumstances and needs of such school

or schools and the students served. The Secretary of the

Interior, in consultation with the Secretary if the Secretary

of Interior requests the consultation, shall approve such

alternative definition unless the Secretary determines that

the definition does not meet the requirements of section

1111(b), taking into account the unique circumstances and

needs of such school or schools and the students served.

(C) TECHNICAL ASSISTANCE.—The Secretary of Interior

shall, in consultation with the Secretary if the Secretary

of Interior requests the consultation, either directly or

through a contract, provide technical assistance, upon

request, to a tribal governing body or school board of a

school funded by the Bureau of Indian Affairs that seeks

to develop an alternative definition of adequate yearly

progress.

(2) ACCOUNTABILITY FOR BIA SCHOOLS.—For the purposes

of this section, schools funded by the Bureau of Indian Affairs

shall be considered schools subject to subsection (b), as specifically

provided for in this subsection, except that such schools

shall not be subject to subsection (c), or the requirements

to provide public school choice and supplemental educational

services under subsections (b) and (e).

(3) SCHOOL IMPROVEMENT FOR BUREAU SCHOOLS.—

(A) CONTRACT AND GRANT SCHOOLS.—For a school

funded by the Bureau of Indian Affairs which is operated

under a contract issued by the Secretary of the Interior

pursuant to the Indian Self-Determination Act (25 U.S.C.

450 et seq.) or under a grant issued by the Secretary

of the Interior pursuant to the Tribally Controlled Schools

Act of 1988 (25 U.S.C. 2501 et seq.), the school board

of such school shall be responsible for meeting the requirements

of subsection (b) relating to development and

implementation of any school improvement plan as

described in subsections (b)(1) through (b)(3), and subsection

(b)(5), other than subsection (b)(1)(E). The Bureau

of Indian Affairs shall be responsible for meeting the

requirements of subsection (b)(4) relating to technical

assistance.

(B) BUREAU OPERATED SCHOOLS.—For schools operated

by the Bureau of Indian Affairs, the Bureau shall be

responsible for meeting the requirements of subsection (b)

relating to development and implementation of any school

improvement plan as described in subsections (b)(1)

through (b)(5), other than subsection (b)(1)(E).

(4) CORRECTIVE ACTION AND RESTRUCTURING FOR BUREAUFUNDED

SCHOOLS.—

(A) CONTRACT AND GRANT SCHOOLS.—For a school

funded by the Bureau of Indian Affairs which is operated

under a contract issued by the Secretary of the Interior

pursuant to the Indian Self-Determination Act (25 U.S.C.

450 et seq.) or under a grant issued by the Secretary

of the Interior pursuant to the Tribally Controlled Schools

Act of 1988 (25 U.S.C. 2501 et seq.), the school board

of such school shall be responsible for meeting the requirements

of subsection (b) relating to corrective action and

restructuring as described in subsection (b)(7) and (b)(8).

Any action taken by such school board under subsection

(b)(7) or (b)(8) shall take into account the unique circumstances

and structure of the Bureau of Indian Affairsfunded

school system and the laws governing that system.

(B) BUREAU OPERATED SCHOOLS.—For schools operated

by the Bureau of Indian Affairs, the Bureau shall be

responsible for meeting the requirements of subsection (b)

relating to corrective action and restructuring as described

in subsection (b)(7) and (b)(8). Any action taken by the

Bureau under subsection (b)(7) or (b)(8) shall take into

account the unique circumstances and structure of the

Bureau of Indian Affairs-funded school system and the

laws governing that system.

(5) ANNUAL REPORT.—On an annual basis, the Secretary

of the Interior shall report to the Secretary of Education and

to the appropriate committees of Congress regarding any

schools funded by the Bureau of Indian Affairs which have

been identified for school improvement. Such report shall

include—

(A) the identity of each school;

(B) a statement from each affected school board

regarding the factors that lead to such identification; and

(C) an analysis by the Secretary of the Interior, in

consultation with the Secretary if the Secretary of Interior

requests the consultation, as to whether sufficient resources

were available to enable such school to achieve adequate

yearly progress.

(h) OTHER AGENCIES.—After receiving the notice described

in subsection (b)(14)(D), the Secretary may notify, to the extent

feasible and necessary as determined by the Secretary, other relevant

Federal agencies regarding the major factors that were determined

by the State educational agency to have significantly affected

student academic achievement.

SEC. 1117. SCHOOL SUPPORT AND RECOGNITION.

(a) SYSTEM FOR SUPPORT.—

(1) IN GENERAL.—Each State shall establish a statewide

system of intensive and sustained support and improvement

for local educational agencies and schools receiving funds under

this part, in order to increase the opportunity for all students

served by those agencies and schools to meet the State’s academic

content standards and student academic achievement

standards.

(2) PRIORITIES.—In carrying out this subsection, a State

shall—

(A) first, provide support and assistance to local educational

agencies with schools subject to corrective action

under section 1116 and assist those schools, in accordance

with section 1116(b)(11), for which a local educational

agency has failed to carry out its responsibilities under

paragraphs (7) and (8) of section 1116(b);

(B) second, provide support and assistance to other

local educational agencies with schools identified as in

need of improvement under section 1116(b); and

(C) third, provide support and assistance to other

local educational agencies and schools participating under

this part that need that support and assistance in order

to achieve the purpose of this part.

(3) REGIONAL CENTERS.—Such a statewide system shall,

to the extent practicable, work with and receive support and

assistance from the comprehensive regional technical assistance

centers and the regional educational laboratories under section

941(h) of the Educational Research, Development, Dissemination,

and Improvement Act of 1994, or other providers of technical

assistance.

(4) STATEWIDE SYSTEM.—

(A) In order to achieve the purpose described in paragraph

(1), the statewide system shall include, at a minimum,

the following approaches:

(i) Establishing school support teams in accordance

with subparagraph (C) for assignment to, and

working in, schools in the State that are described

in paragraph (2).

(ii) Providing such support as the State educational

agency determines necessary and available

in order to ensure the effectiveness of such teams.

(iii) Designating and using distinguished teachers

and principals who are chosen from schools served

under this part that have been especially successful

in improving academic achievement.

(iv) Devising additional approaches to providing

the assistance described in paragraph (1), such as providing

assistance through institutions of higher education

and educational service agencies or other local

consortia, and private providers of scientifically based

technical assistance.

20 USC 6317.

(B) PRIORITY.—The State educational agency shall

give priority to the approach described in clause (i) of

subparagraph (A).

(5) SCHOOL SUPPORT TEAMS.—

(A) COMPOSITION.—Each school support team established

under this section shall be composed of persons

knowledgeable about scientifically based research and practice

on teaching and learning and about successful

schoolwide projects, school reform, and improving educational

opportunities for low-achieving students,

including—

(i) highly qualified or distinguished teachers and

principals;

(ii) pupil services personnel;

(iii) parents;

(iv) representatives of institutions of higher education;

(v) representatives of regional educational laboratories

or comprehensive regional technical assistance

centers;

(vi) representatives of outside consultant groups;

or

(vii) other individuals as the State educational

agency, in consultation with the local educational

agency, may determine appropriate.

(B) FUNCTIONS.—Each school support team assigned

to a school under this section shall—

(i) review and analyze all facets of the school’s

operation, including the design and operation of the

instructional program, and assist the school in developing

recommendations for improving student performance

in that school;

(ii) collaborate with parents and school staff and

the local educational agency serving the school in the

design, implementation, and monitoring of a plan that,

if fully implemented, can reasonably be expected to

improve student performance and help the school meet

its goals for improvement, including adequate yearly

progress under section 1111(b)(2)(B);

(iii) evaluate, at least semiannually, the effectiveness

of school personnel assigned to the school,

including identifying outstanding teachers and principals,

and make findings and recommendations to the

school, the local educational agency, and, where appropriate,

the State educational agency; and

(iv) make additional recommendations as the

school implements the plan described in clause (ii)

to the local educational agency and the State educational

agency concerning additional assistance that

is needed by the school or the school support team.

(C) CONTINUATION OF ASSISTANCE.—After one school

year, from the beginning of the activities, such school support

team, in consultation with the local educational

agency, may recommend that the school support team continue

to provide assistance to the school, or that the local

educational agency or the State educational agency, as

appropriate, take alternative actions with regard to the

school.

(b) STATE RECOGNITION.—

(1) ACADEMIC ACHIEVEMENT AWARDS PROGRAM.—

(A) IN GENERAL.—Each State receiving a grant under

this part—

(i) shall establish a program for making academic

achievement awards to recognize schools that meet

the criteria described in subparagraph (B); and

(ii) as appropriate and as funds are available

under subsection (c)(2)(A), may financially reward

schools served under this part that meet the criteria

described in clause (ii).

(B) CRITERIA.—The criteria referred to in subparagraph

(A) are that a school—

(i) significantly closed the achievement gap

between the groups of students described in section

1111(b)(2); or

(ii) exceeded their adequate yearly progress, consistent

with section 1111(b)(2), for 2 or more consecutive

years.

(2) DISTINGUISHED SCHOOLS.—Of those schools meeting

the criteria described in paragraph (2), each State shall designate

as distinguished schools those schools that have made

the greatest gains in closing the achievement gap as described

in subparagraph (B)(i) or exceeding adequate yearly progress

as described in subparagraph (B)(ii). Such distinguished schools

may serve as models for and provide support to other schools,

especially schools identified for improvement under section

1116, to assist such schools in meeting the State’s academic

content standards and student academic achievement standards.

(3) AWARDS TO TEACHERS.—A State program under paragraph

(1) may also recognize and provide financial awards

to teachers teaching in a school described in such paragraph

that consistently makes significant gains in academic achievement

in the areas in which the teacher provides instruction,

or to teachers or principals designated as distinguished under

subsection (a)(4)(A)(iii).

(c) FUNDING.—

(1) IN GENERAL.—Each State—

(A) shall use funds reserved under section 1003(a)

and may use funds made available under section 1003(g)

for the approaches described under subsection (a)(4)(A);

and

(B) shall use State administrative funds authorized

under section 1004(a) to establish the statewide system

of support described under subsection (a).

(2) RESERVATIONS OF FUNDS BY STATE.—

(A) AWARDS PROGRAM.—For the purpose of carrying

out subsection (b)(1), each State receiving a grant under

this part may reserve, from the amount (if any) by which

the funds received by the State under subpart 2 for a

fiscal year exceed the amount received by the State under

that subpart for the preceding fiscal year, not more than

5 percent of such excess amount.

(B) TEACHER AWARDS.—For the purpose of carrying

out subsection (b)(3), a State educational agency may

reserve such funds as necessary from funds made available

under section 2113.

(3) USE WITHIN 3 YEARS.—Notwithstanding any other

provision of law, the amount reserved under subparagraph

(A) by a State for each fiscal year shall remain available to

the State until expended for a period not exceeding 3 years

receipt of funds.

(4) SPECIAL ALLOCATION RULE FOR SCHOOLS IN HIGH-POVERTY

AREAS.—

(A) IN GENERAL.—Each State shall distribute not less

than 75 percent of any amount reserved under paragraph

(2)(A) for each fiscal year to schools described in subparagraph

(B), or to teachers in those schools consistent with

subsection (b)(3).

(B) SCHOOL DESCRIBED.—A school described in

subparagraph (A) is a school whose student population

is in the highest quartile of schools statewide in terms

of the percentage of children from low income families.

SEC. 1118. PARENTAL INVOLVEMENT.

(a) LOCAL EDUCATIONAL AGENCY POLICY.—

(1) IN GENERAL.—A local educational agency may receive

funds under this part only if such agency implements programs,

activities, and procedures for the involvement of parents in

programs assisted under this part consistent with this section.

Such programs, activities, and procedures shall be planned

and implemented with meaningful consultation with parents

of participating children.

(2) WRITTEN POLICY.—Each local educational agency that

receives funds under this part shall develop jointly with, agree

on with, and distribute to, parents of participating children

a written parent involvement policy. The policy shall be incorporated

into the local educational agency’s plan developed under

section 1112, establish the agency’s expectations for parent

involvement, and describe how the agency will—

(A) involve parents in the joint development of the

plan under section 1112, and the process of school review

and improvement under section 1116;

(B) provide the coordination, technical assistance, and

other support necessary to assist participating schools in

planning and implementing effective parent involvement

activities to improve student academic achievement and

school performance;

(C) build the schools’ and parents’ capacity for strong

parental involvement as described in subsection (e);

(D) coordinate and integrate parental involvement

strategies under this part with parental involvement strategies

under other programs, such as the Head Start program,

Reading First program, Early Reading First program,

Even Start program, Parents as Teachers program,

and Home Instruction Program for Preschool Youngsters,

and State-run preschool programs;

(E) conduct, with the involvement of parents, an

annual evaluation of the content and effectiveness of the

parental involvement policy in improving the academic

20 USC 6318.

quality of the schools served under this part, including

identifying barriers to greater participation by parents in

activities authorized by this section (with particular attention

to parents who are economically disadvantaged, are

disabled, have limited English proficiency, have limited

literacy, or are of any racial or ethnic minority background),

and use the findings of such evaluation to design strategies

for more effective parental involvement, and to revise, if

necessary, the parental involvement policies described in

this section; and

(F) involve parents in the activities of the schools

served under this part.

(3) RESERVATION.—

(A) IN GENERAL.—Each local educational agency shall

reserve not less than 1 percent of such agency’s allocation

under subpart 2 of this part to carry out this section,

including promoting family literacy and parenting skills,

except that this paragraph shall not apply if 1 percent

of such agency’s allocation under subpart 2 of this part

for the fiscal year for which the determination is made

is $5,000 or less.

(B) PARENTAL INPUT.—Parents of children receiving

services under this part shall be involved in the decisions

regarding how funds reserved under subparagraph (A) are

allotted for parental involvement activities.

(C) DISTRIBUTION OF FUNDS.—Not less than 95 percent

of the funds reserved under subparagraph (A) shall be

distributed to schools served under this part.

(b) SCHOOL PARENTAL INVOLVEMENT POLICY.—

(1) IN GENERAL.—Each school served under this part shall

jointly develop with, and distribute to, parents of participating

children a written parental involvement policy, agreed on by

such parents, that shall describe the means for carrying out

the requirements of subsections (c) through (f). Parents shall

be notified of the policy in an understandable and uniform

format and, to the extent practicable, provided in a language

the parents can understand. Such policy shall be made available

to the local community and updated periodically to meet the

changing needs of parents and the school.

(2) SPECIAL RULE.—If the school has a parental involvement

policy that applies to all parents, such school may amend

that policy, if necessary, to meet the requirements of this subsection.

(3) AMENDMENT.—If the local educational agency involved

has a school district-level parental involvement policy that

applies to all parents, such agency may amend that policy,

if necessary, to meet the requirements of this subsection.

(4) PARENTAL COMMENTS.—If the plan under section 1112

is not satisfactory to the parents of participating children,

the local educational agency shall submit any parent comments

with such plan when such local educational agency submits

the plan to the State.

(c) POLICY INVOLVEMENT.—Each school served under this part

shall—

(1) convene an annual meeting, at a convenient time,

to which all parents of participating children shall be invited

and encouraged to attend, to inform parents of their school’s

Public

information.

Notification.

participation under this part and to explain the requirements

of this part, and the right of the parents to be involved;

(2) offer a flexible number of meetings, such as meetings

in the morning or evening, and may provide, with funds provided

under this part, transportation, child care, or home visits,

as such services relate to parental involvement;

(3) involve parents, in an organized, ongoing, and timely

way, in the planning, review, and improvement of programs

under this part, including the planning, review, and improvement

of the school parental involvement policy and the joint

development of the schoolwide program plan under section

1114(b)(2), except that if a school has in place a process for

involving parents in the joint planning and design of the school’s

programs, the school may use that process, if such process

includes an adequate representation of parents of participating

children;

(4) provide parents of participating children—

(A) timely information about programs under this

part;

(B) a description and explanation of the curriculum

in use at the school, the forms of academic assessment

used to measure student progress, and the proficiency

levels students are expected to meet; and

(C) if requested by parents, opportunities for regular

meetings to formulate suggestions and to participate, as

appropriate, in decisions relating to the education of their

children, and respond to any such suggestions as soon

as practicably possible; and

(5) if the schoolwide program plan under section 1114(b)(2)

is not satisfactory to the parents of participating children,

submit any parent comments on the plan when the school

makes the plan available to the local educational agency.

(d) SHARED RESPONSIBILITIES FOR HIGH STUDENT ACADEMIC

ACHIEVEMENT.—As a component of the school-level parental involvement

policy developed under subsection (b), each school served

under this part shall jointly develop with parents for all children

served under this part a school-parent compact that outlines how

parents, the entire school staff, and students will share the responsibility

for improved student academic achievement and the means

by which the school and parents will build and develop a partnership

to help children achieve the State’s high standards. Such

compact shall—

(1) describe the school’s responsibility to provide highquality

curriculum and instruction in a supportive and effective

learning environment that enables the children served under

this part to meet the State’s student academic achievement

standards, and the ways in which each parent will be responsible

for supporting their children’s learning, such as monitoring

attendance, homework completion, and television watching; volunteering

in their child’s classroom; and participating, as appropriate,

in decisions relating to the education of their children

and positive use of extracurricular time; and

(2) address the importance of communication between

teachers and parents on an ongoing basis through, at a

minimum—

(A) parent-teacher conferences in elementary schools,

at least annually, during which the compact shall be discussed

as the compact relates to the individual child’s

achievement;

(B) frequent reports to parents on their children’s

progress; and

(C) reasonable access to staff, opportunities to volunteer

and participate in their child’s class, and observation

of classroom activities.

(e) BUILDING CAPACITY FOR INVOLVEMENT.—To ensure effective

involvement of parents and to support a partnership among the

school involved, parents, and the community to improve student

academic achievement, each school and local educational agency

assisted under this part—

(1) shall provide assistance to parents of children served

by the school or local educational agency, as appropriate, in

understanding such topics as the State’s academic content

standards and State student academic achievement standards,

State and local academic assessments, the requirements of

this part, and how to monitor a child’s progress and work

with educators to improve the achievement of their children;

(2) shall provide materials and training to help parents

to work with their children to improve their children’s achievement,

such as literacy training and using technology, as appropriate,

to foster parental involvement;

(3) shall educate teachers, pupil services personnel, principals,

and other staff, with the assistance of parents, in the

value and utility of contributions of parents, and in how to

reach out to, communicate with, and work with parents as

equal partners, implement and coordinate parent programs,

and build ties between parents and the school;

(4) shall, to the extent feasible and appropriate, coordinate

and integrate parent involvement programs and activities with

Head Start, Reading First, Early Reading First, Even Start,

the Home Instruction Programs for Preschool Youngsters, the

Parents as Teachers Program, and public preschool and other

programs, and conduct other activities, such as parent resource

centers, that encourage and support parents in more fully

participating in the education of their children;

(5) shall ensure that information related to school and

parent programs, meetings, and other activities is sent to the

parents of participating children in a format and, to the extent

practicable, in a language the parents can understand;

(6) may involve parents in the development of training

for teachers, principals, and other educators to improve the

effectiveness of such training;

(7) may provide necessary literacy training from funds

received under this part if the local educational agency has

exhausted all other reasonably available sources of funding

for such training;

(8) may pay reasonable and necessary expenses associated

with local parental involvement activities, including transportation

and child care costs, to enable parents to participate

in school-related meetings and training sessions;

(9) may train parents to enhance the involvement of other

parents;

(10) may arrange school meetings at a variety of times,

or conduct in-home conferences between teachers or other educators,

who work directly with participating children, with parents

who are unable to attend such conferences at school,

in order to maximize parental involvement and participation;

(11) may adopt and implement model approaches to

improving parental involvement;

(12) may establish a districtwide parent advisory council

to provide advice on all matters related to parental involvement

in programs supported under this section;

(13) may develop appropriate roles for community-based

organizations and businesses in parent involvement activities;

and

(14) shall provide such other reasonable support for

parental involvement activities under this section as parents

may request.

(f) ACCESSIBILITY.—In carrying out the parental involvement

requirements of this part, local educational agencies and schools,

to the extent practicable, shall provide full opportunities for the

participation of parents with limited English proficiency, parents

with disabilities, and parents of migratory children, including providing

information and school reports required under section 1111

in a format and, to the extent practicable, in a language such

parents understand.

(g) INFORMATION FROM PARENTAL INFORMATION AND RESOURCE

CENTERS.—In a State where a parental information and resource

center is established to provide training, information, and support

to parents and individuals who work with local parents, local educational

agencies, and schools receiving assistance under this part,

each local educational agency or school that receives assistance

under this part and is located in the State shall assist parents

and parental organizations by informing such parents and organizations

of the existence and purpose of such centers.

(h) REVIEW.—The State educational agency shall review the

local educational agency’s parental involvement policies and practices

to determine if the policies and practices meet the requirements

of this section.

SEC. 1119. QUALIFICATIONS FOR TEACHERS AND PARAPROFESSIONALS.

(a) TEACHER QUALIFICATIONS AND MEASURABLE OBJECTIVES.—

(1) IN GENERAL.—Beginning with the first day of the first

school year after the date of enactment of the No Child Left

Behind Act of 2001, each local educational agency receiving

assistance under this part shall ensure that all teachers hired

after such day and teaching in a program supported with

funds under this part are highly qualified.

(2) STATE PLAN.—As part of the plan described in section

1111, each State educational agency receiving assistance under

this part shall develop a plan to ensure that all teachers

teaching in core academic subjects within the State are highly

qualified not later than the end of the 2005–2006 school year.

Such plan shall establish annual measurable objectives for

each local educational agency and school that, at a minimum—

(A) shall include an annual increase in the percentage

of highly qualified teachers at each local educational agency

and school, to ensure that all teachers teaching in core

Deadline.

20 USC 6319.

academic subjects in each public elementary school and

secondary school are highly qualified not later than the

end of the 2005–2006 school year;

(B) shall include an annual increase in the percentage

of teachers who are receiving high-quality professional

development to enable such teachers to become highly

qualified and successful classroom teachers; and

(C) may include such other measures as the State

educational agency determines to be appropriate to increase

teacher qualifications.

(3) LOCAL PLAN.—As part of the plan described in section

1112, each local educational agency receiving assistance under

this part shall develop a plan to ensure that all teachers

teaching within the school district served by the local educational

agency are highly qualified not later than the end

of the 2005–2006 school year.

(b) REPORTS.—

(1) ANNUAL STATE AND LOCAL REPORTS.—

(A) LOCAL REPORTS.—Each State educational agency

described in subsection (a)(2) shall require each local educational

agency receiving funds under this part to publicly

report, each year, beginning with the 2002–2003 school

year, the annual progress of the local educational agency

as a whole and of each of the schools served by the agency,

in meeting the measurable objectives described in subsection

(a)(2).

(B) STATE REPORTS.—Each State educational agency

receiving assistance under this part shall prepare and

submit each year, beginning with the 2002–2003 school

year, a report to the Secretary, describing the State educational

agency’s progress in meeting the measurable objectives

described in subsection (a)(2).

(C) INFORMATION FROM OTHER REPORTS.—A State educational

agency or local educational agency may submit

information from the reports described in section 1111(h)

for the purposes of this subsection, if such report is modified,

as may be necessary, to contain the information

required by this subsection, and may submit such information

as a part of the reports required under section 1111(h).

(2) ANNUAL REPORTS BY THE SECRETARY.—Each year,

beginning with the 2002–2003 school year, the Secretary shall

publicly report the annual progress of State educational agencies,

local educational agencies, and schools, in meeting the

measurable objectives described in subsection (a)(2).

(c) NEW PARAPROFESSIONALS.—

(1) IN GENERAL.—Each local educational agency receiving

assistance under this part shall ensure that all paraprofessionals

hired after the date of enactment of the No Child

Left Behind Act of 2001 and working in a program supported

with funds under this part shall have—

(A) completed at least 2 years of study at an institution

of higher education;

(B) obtained an associate’s (or higher) degree; or

(C) met a rigorous standard of quality and can demonstrate,

through a formal State or local academic

assessment—

(i) knowledge of, and the ability to assist in

instructing, reading, writing, and mathematics; or

(ii) knowledge of, and the ability to assist in

instructing, reading readiness, writing readiness, and

mathematics readiness, as appropriate.

(2) CLARIFICATION.—The receipt of a secondary school

diploma (or its recognized equivalent) shall be necessary but

not sufficient to satisfy the requirements of paragraph (1)(C).

(d) EXISTING PARAPROFESSIONALS.—Each local educational

agency receiving assistance under this part shall ensure that all

paraprofessionals hired before the date of enactment of the No

Child Left Behind Act of 2001, and working in a program supported

with funds under this part shall, not later than 4 years after

the date of enactment satisfy the requirements of subsection (c).

(e) EXCEPTIONS FOR TRANSLATION AND PARENTAL INVOLVEMENT

ACTIVITIES.—Subsections (c) and (d) shall not apply to a

paraprofessional—

(1) who is proficient in English and a language other

than English and who provides services primarily to enhance

the participation of children in programs under this part by

acting as a translator; or

(2) whose duties consist solely of conducting parental

involvement activities consistent with section 1118.

(f) GENERAL REQUIREMENT FOR ALL PARAPROFESSIONALS.—

Each local educational agency receiving assistance under this part

shall ensure that all paraprofessionals working in a program supported

with funds under this part, regardless of the paraprofessionals’

hiring date, have earned a secondary school diploma or

its recognized equivalent.

(g) DUTIES OF PARAPROFESSIONALS.—

(1) IN GENERAL.—Each local educational agency receiving

assistance under this part shall ensure that a paraprofessional

working in a program supported with funds under this part

is not assigned a duty inconsistent with this subsection.

(2) RESPONSIBILITIES PARAPROFESSIONALS MAY BE

ASSIGNED.—A paraprofessional described in paragraph (1) may

be assigned—

(A) to provide one-on-one tutoring for eligible students,

if the tutoring is scheduled at a time when a student

would not otherwise receive instruction from a teacher;

(B) to assist with classroom management, such as

organizing instructional and other materials;

(C) to provide assistance in a computer laboratory;

(D) to conduct parental involvement activities;

(E) to provide support in a library or media center;

(F) to act as a translator; or

(G) to provide instructional services to students in

accordance with paragraph (3).

(3) ADDITIONAL LIMITATIONS.—A paraprofessional

described in paragraph (1)—

(A) may not provide any instructional service to a

student unless the paraprofessional is working under the

direct supervision of a teacher consistent with section 1119;

and

(B) may assume limited duties that are assigned to

similar personnel who are not working in a program supported

with funds under this part, including duties beyond

classroom instruction or that do not benefit participating

children, so long as the amount of time spent on such

duties is the same proportion of total work time as prevails

with respect to similar personnel at the same school.

(h) USE OF FUNDS.—A local educational agency receiving funds

under this part may use such funds to support ongoing training

and professional development to assist teachers and paraprofessionals

in satisfying the requirements of this section.

(i) VERIFICATION OF COMPLIANCE.—

(1) IN GENERAL.—In verifying compliance with this section,

each local educational agency, at a minimum, shall require

that the principal of each school operating a program under

section 1114 or 1115 attest annually in writing as to whether

such school is in compliance with the requirements of this

section.

(2) AVAILABILITY OF INFORMATION.—Copies of attestations

under paragraph (1)—

(A) shall be maintained at each school operating a

program under section 1114 or 1115 and at the main office

of the local educational agency; and

(B) shall be available to any member of the general

public on request.

(j) COMBINATIONS OF FUNDS.—Funds provided under this part

that are used for professional development purposes may be combined

with funds provided under title II of this Act, other Acts,

and other sources.

(k) SPECIAL RULE.—Except as provided in subsection (l), no

State educational agency shall require a school or a local educational

agency to expend a specific amount of funds for professional development

activities under this part, except that this paragraph shall

not apply with respect to requirements under section 1116(c)(3).

(l) MINIMUM EXPENDITURES.—Each local educational agency

that receives funds under this part shall use not less than 5 percent,

or more than 10 percent, of such funds for each of fiscal years

2002 and 2003, and not less than 5 percent of the funds for each

subsequent fiscal year, for professional development activities to

ensure that teachers who are not highly qualified become highly

qualified not later than the end of the 2005–2006 school year.

SEC. 1120. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE

SCHOOLS.


(a) GENERAL REQUIREMENT.—

(1) IN GENERAL.—To the extent consistent with the number

of eligible children identified under section 1115(b) in the school

district served by a local educational agency who are enrolled

in private elementary schools and secondary schools, a local

educational agency shall, after timely and meaningful consultation

with appropriate private school officials, provide such children,

on an equitable basis, special educational services or

other benefits under this part (such as dual enrollment, educational

radio and television, computer equipment and materials,

other technology, and mobile educational services and

equipment) that address their needs, and shall ensure that

teachers and families of the children participate, on an equitable

basis, in services and activities developed pursuant to

sections 1118 and 1119.

(2) SECULAR, NEUTRAL, NONIDEOLOGICAL.—Such educational

services or other benefits, including materials and

equipment, shall be secular, neutral, and nonideological.

(3) EQUITY.—Educational services and other benefits for

such private school children shall be equitable in comparison

to services and other benefits for public school children participating

under this part, and shall be provided in a timely

manner.

(4) EXPENDITURES.—Expenditures for educational services

and other benefits to eligible private school children shall be

equal to the proportion of funds allocated to participating school

attendance areas based on the number of children from lowincome

families who attend private schools, which the local

educational agency may determine each year or every 2 years.

(5) PROVISION OF SERVICES.—The local educational agency

may provide services under this section directly or through

contracts with public and private agencies, organizations, and

institutions.

(b) CONSULTATION.—

(1) IN GENERAL.—To ensure timely and meaningful consultation,

a local educational agency shall consult with appropriate

private school officials during the design and development

of such agency’s programs under this part, on issues

such as—

(A) how the children’s needs will be identified;

(B) what services will be offered;

(C) how, where, and by whom the services will be

provided;

(D) how the services will be academically assessed

and how the results of that assessment will be used to

improve those services;

(E) the size and scope of the equitable services to

be provided to the eligible private school children, and

the proportion of funds that is allocated under subsection

(a)(4) for such services;

(F) the method or sources of data that are used under

subsection (c) and section 1113(c)(1) to determine the

number of children from low-income families in participating

school attendance areas who attend private schools;

(G) how and when the agency will make decisions

about the delivery of services to such children, including

a thorough consideration and analysis of the views of the

private school officials on the provision of services through

a contract with potential third-party providers; and

(H) how, if the agency disagrees with the views of

the private school officials on the provision of services

through a contract, the local educational agency will provide

in writing to such private school officials an analysis

of the reasons why the local educational agency has chosen

not to use a contractor.

(2) TIMING.—Such consultation shall include meetings of

agency and private school officials and shall occur before the

local educational agency makes any decision that affects the

opportunities of eligible private school children to participate

in programs under this part. Such meetings shall continue

throughout implementation and assessment of services provided

under this section.

(3) DISCUSSION.—Such consultation shall include a discussion

of service delivery mechanisms a local educational agency

can use to provide equitable services to eligible private school

children.

(4) DOCUMENTATION.—Each local educational agency shall

maintain in the agency’s records and provide to the State

educational agency involved a written affirmation signed by

officials of each participating private school that the consultation

required by this section has occurred. If such officials

do not provide such affirmation within a reasonable period

of time, the local educational agency shall forward the documentation

that such consultation has taken place to the State

educational agency.

(5) COMPLIANCE.—

(A) IN GENERAL.—A private school official shall have

the right to complain to the State educational agency that

the local educational agency did not engage in consultation

that was meaningful and timely, or did not give due consideration

to the views of the private school official.

(B) PROCEDURE.—If the private school official wishes

to complain, the official shall provide the basis of the

noncompliance with this section by the local educational

agency to the State educational agency, and the local educational

agency shall forward the appropriate documentation

to the State educational agency.

(c) ALLOCATION FOR EQUITABLE SERVICE TO PRIVATE SCHOOL

STUDENTS.—

(1) CALCULATION.—A local educational agency shall have

the final authority, consistent with this section, to calculate

the number of children, ages 5 through 17, who are from

low-income families and attend private schools by—

(A) using the same measure of low income used to

count public school children;

(B) using the results of a survey that, to the extent

possible, protects the identity of families of private school

students, and allowing such survey results to be extrapolated

if complete actual data are unavailable;

(C) applying the low-income percentage of each participating

public school attendance area, determined pursuant

to this section, to the number of private school children

who reside in that school attendance area; or

(D) using an equated measure of low income correlated

with the measure of low income used to count public school

children.

(2) COMPLAINT PROCESS.—Any dispute regarding lowincome

data for private school students shall be subject to

the complaint process authorized in section 9505.

(d) PUBLIC CONTROL OF FUNDS.—

(1) IN GENERAL.—The control of funds provided under

this part, and title to materials, equipment, and property purchased

with such funds, shall be in a public agency, and a

public agency shall administer such funds, materials, equipment,

and property.

(2) PROVISION OF SERVICES.—

(A) PROVIDER.—The provision of services under this

section shall be provided—

(i) by employees of a public agency; or

(ii) through contract by such public agency with

an individual, association, agency, or organization.

(B) REQUIREMENT.—In the provision of such services,

such employee, individual, association, agency, or organization

shall be independent of such private school and of

any religious organization, and such employment or contract

shall be under the control and supervision of such

public agency.

(e) STANDARDS FOR A BYPASS.—If a local educational agency

is prohibited by law from providing for the participation in programs

on an equitable basis of eligible children enrolled in private

elementary schools and secondary schools, or if the Secretary determines

that a local educational agency has substantially failed or

is unwilling, to provide for such participation, as required by this

section, the Secretary shall—

(1) waive the requirements of this section for such local

educational agency;

(2) arrange for the provision of services to such children

through arrangements that shall be subject to the requirements

of this section and sections 9503 and 9504; and

(3) in making the determination under this subsection,

consider one or more factors, including the quality, size, scope,

and location of the program and the opportunity of eligible

children to participate.

SEC. 1120A. FISCAL REQUIREMENTS.

(a) MAINTENANCE OF EFFORT.—A local educational agency may

receive funds under this part for any fiscal year only if the State

educational agency involved finds that the local educational agency

has maintained the agency’s fiscal effort in accordance with section

9521.

(b) FEDERAL FUNDS TO SUPPLEMENT, NOT SUPPLANT, NONFEDERAL

FUNDS.—

(1) IN GENERAL.—A State educational agency or local educational

agency shall use Federal funds received under this

part only to supplement the funds that would, in the absence

of such Federal funds, be made available from non-Federal

sources for the education of pupils participating in programs

assisted under this part, and not to supplant such funds.

(2) SPECIAL RULE.—No local educational agency shall be

required to provide services under this part through a particular

instructional method or in a particular instructional setting

in order to demonstrate such agency’s compliance with paragraph

(1).

(c) COMPARABILITY OF SERVICES.—

(1) IN GENERAL.—

(A) COMPARABLE SERVICES.—Except as provided in

paragraphs (4) and (5), a local educational agency may

receive funds under this part only if State and local funds

will be used in schools served under this part to provide

services that, taken as a whole, are at least comparable

to services in schools that are not receiving funds under

this part.

(B) SUBSTANTIALLY COMPARABLE SERVICES.—If the

local educational agency is serving all of such agency’s

schools under this part, such agency may receive funds

under this part only if such agency will use State and

20 USC 6321.

local funds to provide services that, taken as a whole,

are substantially comparable in each school.

(C) BASIS.—A local educational agency may meet the

requirements of subparagraphs (A) and (B) on a gradespan

by grade-span basis or a school-by-school basis.

(2) WRITTEN ASSURANCE.—

(A) EQUIVALENCE.—A local educational agency shall

be considered to have met the requirements of paragraph

(1) if such agency has filed with the State educational

agency a written assurance that such agency has established

and implemented—

(i) a local educational agency-wide salary

schedule;

(ii) a policy to ensure equivalence among schools

in teachers, administrators, and other staff; and

(iii) a policy to ensure equivalence among schools

in the provision of curriculum materials and instructional

supplies.

(B) DETERMINATIONS.—For the purpose of this subsection,

in the determination of expenditures per pupil

from State and local funds, or instructional salaries per

pupil from State and local funds, staff salary differentials

for years of employment shall not be included in such

determinations.

(C) EXCLUSIONS.—A local educational agency need not

include unpredictable changes in student enrollment or

personnel assignments that occur after the beginning of

a school year in determining comparability of services

under this subsection.

(3) PROCEDURES AND RECORDS.—Each local educational

agency assisted under this part shall—

(A) develop procedures for compliance with this subsection;

and

(B) maintain records that are updated biennially documenting

such agency’s compliance with this subsection.

(4) INAPPLICABILITY.—This subsection shall not apply to

a local educational agency that does not have more than one

building for each grade span.

(5) COMPLIANCE.—For the purpose of determining compliance

with paragraph (1), a local educational agency may exclude

State and local funds expended for—

(A) language instruction educational programs; and

(B) the excess costs of providing services to children

with disabilities as determined by the local educational

agency.

(d) EXCLUSION OF FUNDS.—For the purpose of complying with

subsections (b) and (c), a State educational agency or local educational

agency may exclude supplemental State or local funds

expended in any school attendance area or school for programs

that meet the intent and purposes of this part.

SEC. 1120B. COORDINATION REQUIREMENTS.

(a) IN GENERAL.—Each local educational agency receiving

assistance under this part shall carry out the activities described

in subsection (b) with Head Start agencies and, if feasible, other

entities carrying out early childhood development programs such

as the Early Reading First program.

(b) ACTIVITIES.—The activities referred to in subsection (a)

are activities that increase coordination between the local educational

agency and a Head Start agency and, if feasible, other

entities carrying out early childhood development programs, such

as the Early Reading First program, serving children who will

attend the schools of the local educational agency, including—

(1) developing and implementing a systematic procedure

for receiving records regarding such children, transferred with

parental consent from a Head Start program or, where

applicable, another early childhood development program such

as the Early Reading First program;

(2) establishing channels of communication between school

staff and their counterparts (including teachers, social workers,

and health staff) in such Head Start agencies or other entities

carrying out early childhood development programs such as

the Early Reading First program, as appropriate, to facilitate

coordination of programs;

(3) conducting meetings involving parents, kindergarten

or elementary school teachers, and Head Start teachers or,

if appropriate, teachers from other early childhood development

programs such as the Early Reading First program, to discuss

the developmental and other needs of individual children;

(4) organizing and participating in joint transition-related

training of school staff, Head Start program staff, Early

Reading First program staff, and, where appropriate, other

early childhood development program staff; and

(5) linking the educational services provided by such local

educational agency with the services provided by local Head

Start agencies and entities carrying out Early Reading First

programs.

(c) COORDINATION OF REGULATIONS.—The Secretary shall work

with the Secretary of Health and Human Services to coordinate

regulations promulgated under this part with regulations promulgated

under the Head Start Act.

Subpart 2—Allocations

SEC. 1121. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY

OF THE INTERIOR
.

(a) RESERVATION OF FUNDS.—From the amount appropriated

for payments to States for any fiscal year under section 1002(a)

and 1125A(f), the Secretary shall reserve a total of 1 percent to

provide assistance to—

(1) the outlying areas in the amount determined in accordance

with subsection (b); and

(2) the Secretary of the Interior in the amount necessary

to make payments pursuant to subsection (d).

(b) ASSISTANCE TO OUTLYING AREAS.—

(1) FUNDS RESERVED.—From the amount made available

for any fiscal year under subsection (a), the Secretary shall

award grants to local educational agencies in the outlying areas.

(2) COMPETITIVE GRANTS.—Until each appropriate outlying

area enters into an agreement for extension of United States

educational assistance under the Compact of Free Association

after the date of enactment of the No Child Left Behind Act

of 2001, the Secretary shall carry out the competition described

in paragraph (3), except that the amount reserved to carry

out such competition shall not exceed $5,000,000.

(3) LIMITATION FOR COMPETITIVE GRANTS.—

(A) COMPETITIVE GRANTS.—The Secretary shall use

funds described in paragraph (2) to award grants to the

outlying areas and freely associated States to carry out

the purposes of this part.

(B) AWARD BASIS.—The Secretary shall award grants

under subparagraph (A) on a competitive basis, taking

into consideration the recommendations of the Pacific

Region Educational Laboratory in Honolulu, Hawaii.

(C) USES.—Except as provided in subparagraph (D),

grant funds awarded under this paragraph may be used

only—

(i) for programs described in this Act, including

teacher training, curriculum development, instructional

materials, or general school improvement and

reform; and

(ii) to provide direct educational services that

assist all students with meeting challenging State academic

content standards.

(D) ADMINISTRATIVE COSTS.—The Secretary may provide

not more than 5 percent of the amount reserved for

grants under this paragraph to pay the administrative

costs of the Pacific Region Educational Laboratory under

subparagraph (B).

(4) SPECIAL RULE.—The provisions of Public Law 95–134,

permitting the consolidation of grants by the outlying areas,

shall not apply to funds provided to the freely associated States

under this section.

(c) DEFINITIONS.—For the purpose of subsections (a) and (b)—

(1) the term ‘freely associated states’ means the Republic

of the Marshall Islands, the Federated States of Micronesia,

and the Republic of Palau; and

(2) the term ‘outlying area’ means the United States Virgin

Islands, Guam, American Samoa, and the Commonwealth of

the Northern Mariana Islands.

(d) ALLOTMENT TO THE SECRETARY OF THE INTERIOR.—

(1) IN GENERAL.—The amount allotted for payments to

the Secretary of the Interior under subsection (a)(2) for any

fiscal year shall be, as determined pursuant to criteria established

by the Secretary, the amount necessary to meet the

special educational needs of—

(A) Indian children on reservations served by

elementary schools and secondary schools for Indian children

operated or supported by the Department of the

Interior; and

(B) out-of-State Indian children in elementary schools

and secondary schools in local educational agencies under

special contracts with the Department of the Interior.

(2) PAYMENTS.—From the amount allotted for payments

to the Secretary of the Interior under subsection (a)(2), the

Secretary of the Interior shall make payments to local educational

agencies, on such terms as the Secretary determines

will best carry out the purposes of this part, with respect

to out-of-State Indian children described in paragraph (1). The

amount of such payment may not exceed, for each such child,

the greater of—

(A) 40 percent of the average per-pupil expenditure

in the State in which the agency is located; or

(B) 48 percent of such expenditure in the United

States.

SEC. 1122. ALLOCATIONS TO STATES.

(a) ALLOCATION FORMULA.—Of the amount appropriated under

section 1002(a) to carry out this part for each of fiscal years 2002–

2007 (referred to in this subsection as the current fiscal year)—

(1) an amount equal to the amount made available to

carry out section 1124 for fiscal year 2001 shall be allocated

in accordance with section 1124;

(2) an amount equal to the amount made available to

carry out section 1124A for fiscal year 2001 shall be allocated

in accordance with section 1124A; and

(3) an amount equal to 100 percent of the amount, if

any, by which the amount made available to carry out sections

1124, 1124A, and 1125 for the current fiscal year for which

the determination is made exceeds the amount available to

carry out sections 1124 and 1124A for fiscal year 2001 shall

be allocated in accordance with section 1125.

(b) ADJUSTMENTS WHERE NECESSITATED BY APPROPRIATIONS.—

(1) IN GENERAL.—If the sums available under this subpart

for any fiscal year are insufficient to pay the full amounts

that all local educational agencies in States are eligible to

receive under sections 1124, 1124A, and 1125 for such year,

the Secretary shall ratably reduce the allocations to such local

educational agencies, subject to subsections (c) and (d) of this

section.

(2) ADDITIONAL FUNDS.—If additional funds become available

for making payments under sections 1124, 1124A, and

1125 for such fiscal year, allocations that were reduced under

paragraph (1) shall be increased on the same basis as they

were reduced.

(c) HOLD-HARMLESS AMOUNTS.—

(1) AMOUNTS FOR SECTIONS 1124, 1124A, AND 1125.—For

each fiscal year, the amount made available to each local educational

agency under each of sections 1124, 1124A, and 1125

shall be—

(A) not less than 95 percent of the amount made

available for the preceding fiscal year if the number of

children counted for grants under section 1124 is not less

than 30 percent of the total number of children aged 5

to 17 years, inclusive, in the local educational agency;

(B) not less than 90 percent of the amount made

available for the preceding fiscal year if the percentage

described in subparagraph (A) is between 15 percent and

30 percent; and

(C) not less than 85 percent of the amount made

available for the preceding fiscal year if the percentage

described in subparagraph (A) is below 15 percent.

(2) PAYMENTS.—If sufficient funds are appropriated, the

amounts described in paragraph (1) shall be paid to all local

educational agencies that received grants under section 1124A

for the preceding fiscal year, regardless of whether the local

20 USC 6332.

educational agency meets the minimum eligibility criteria for

that fiscal year described in section 1124A(a)(1)(A) except that

a local educational agency that does not meet such minimum

eligibility criteria for 4 consecutive years shall no longer be

eligible to receive a hold harmless amount referred to in paragraph

(1).

(3) APPLICABILITY.—Notwithstanding any other provision

of law, the Secretary shall not take into consideration the

hold-harmless provisions of this subsection for any fiscal year

for purposes of calculating State or local allocations for the

fiscal year under any program administered by the Secretary

other than a program authorized under this part.

(4) POPULATION DATA.—For any fiscal year for which the

Secretary calculates grants on the basis of population data

for counties, the Secretary shall apply the hold-harmless

percentages in paragraphs (1) and (2) to counties and, if the

Secretary’s allocation for a county is not sufficient to meet

the hold-harmless requirements of this subsection for every

local educational agency within that county, the State educational

agency shall reallocate funds proportionately from all

other local educational agencies in the State that are receiving

funds in excess of the hold-harmless amounts specified in this

subsection.

(d) RATABLE REDUCTIONS.—

(1) IN GENERAL.—If the sums made available under this

subpart for any fiscal year are insufficient to pay the full

amounts that local educational agencies in all States are eligible

to receive under subsection (c) for such year, the Secretary

shall ratably reduce such amounts for such year.

(2) ADDITIONAL FUNDS.—If additional funds become available

for making payments under subsection (c) for such fiscal

year, amounts that were reduced under paragraph (1) shall

be increased on the same basis as such amounts were reduced.

(e) DEFINITION.—For the purpose of this section and sections

1124, 1124A, 1125, and 1125A, the term ‘State’ means each of

the 50 States, the District of Columbia, and the Commonwealth

of Puerto Rico.

SEC. 1124. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES.

(a) AMOUNT OF GRANTS.—

(1) GRANTS FOR LOCAL EDUCATIONAL AGENCIES AND PUERTO

RICO.—Except as provided in paragraph (4) and in section 1126,

the grant that a local educational agency is eligible to receive

under this section for a fiscal year is the amount determined

by multiplying—

(A) the number of children counted under subsection

(c); and

(B) 40 percent of the average per-pupil expenditure

in the State, except that the amount determined under

this subparagraph shall not be less than 32 percent, or

more than 48 percent, of the average per-pupil expenditure

in the United States.

(2) CALCULATION OF GRANTS.—

(A) ALLOCATIONS TO LOCAL EDUCATIONAL AGENCIES.—

The Secretary shall calculate grants under this section

on the basis of the number of children counted under

subsection (c) for local educational agencies, unless the

20 USC 6333.

Secretary and the Secretary of Commerce determine that

some or all of those data are unreliable or that their

use would be otherwise inappropriate, in which case—

(i) the two Secretaries shall publicly disclose the

reasons for their determination in detail; and

(ii) paragraph (3) shall apply.

(B) ALLOCATIONS TO LARGE AND SMALL LOCAL EDUCATIONAL

AGENCIES.—

(i) For any fiscal year to which this paragraph

applies, the Secretary shall calculate grants under this

section for each local educational agency.

(ii) The amount of a grant under this section

for each large local educational agency shall be the

amount determined under clause (i).

(iii) For small local educational agencies, the State

educational agency may either—

(I) distribute grants under this section in

amounts determined by the Secretary under clause

(i); or

(II) use an alternative method approved by

the Secretary to distribute the portion of the

State’s total grants under this section that is based

on those small agencies.

(iv) An alternative method under clause (iii)(II)

shall be based on population data that the State educational

agency determines best reflect the current distribution

of children in poor families among the State’s

small local educational agencies that meet the eligibility

criteria of subsection (b).

(v) If a small local educational agency is dissatisfied

with the determination of its grant by the State

educational agency under clause (iii)(II), it may appeal

that determination to the Secretary, who shall respond

not later than 45 days after receipt of such appeal.

(vi) As used in this subparagraph—

(I) the term ‘large local educational agency’

means a local educational agency serving an area

with a total population of 20,000 or more; and

(II) the term ‘small local educational agency’

means a local educational agency serving an area

with a total population of less than 20,000.

(3) ALLOCATIONS TO COUNTIES.—

(A) CALCULATION.—For any fiscal year to which this

paragraph applies, the Secretary shall calculate grants

under this section on the basis of the number of children

counted under subsection (c) for counties, and State educational

agencies shall suballocate county amounts to local

educational agencies, in accordance with regulations issued

by the Secretary.

(B) DIRECT ALLOCATIONS.—In any State in which a

large number of local educational agencies overlap county

boundaries, or for which the State believes it has data

that would better target funds than allocating them by

county, the State educational agency may apply to the

Secretary for authority to make the allocations under this

subpart for a particular fiscal year directly to local educational

agencies without regard to counties.

(C) ALLOCATIONS TO LOCAL EDUCATIONAL AGENCIES.—

If the Secretary approves the State educational agency’s

application under subparagraph (B), the State educational

agency shall provide the Secretary an assurance that such

allocations shall be made—

(i) using precisely the same factors for determining

a grant as are used under this subpart; or

(ii) using data that the State educational agency

submits to the Secretary for approval that more

accurately target poverty.

(D) APPEAL.—The State educational agency shall provide

the Secretary an assurance that it will establish a

procedure through which a local educational agency that

is dissatisfied with its determinations under subparagraph

(B) may appeal directly to the Secretary for a final determination.

(4) PUERTO RICO.—

(A) IN GENERAL.—For each fiscal year, the grant that

the Commonwealth of Puerto Rico shall be eligible to

receive under this section shall be the amount determined

by multiplying the number of children counted under subsection

(c) for the Commonwealth of Puerto Rico by the

product of—

(i) subject to subparagraph (B), the percentage

that the average per-pupil expenditure in the Commonwealth

of Puerto Rico is of the lowest average perpupil

expenditure of any of the 50 States; and

(ii) 32 percent of the average per-pupil expenditure

in the United States.

(B) MINIMUM PERCENTAGE.—The percentage in

subparagraph (A)(i) shall not be less than—

(i) for fiscal year 2002, 77.5 percent;

(ii) for fiscal year 2003, 80.0 percent;

(iii) for fiscal year 2004, 82.5 percent;

(iv) for fiscal year 2005, 85.0 percent;

(v) for fiscal year 2006, 92.5 percent; and

(vi) for fiscal year 2007 and succeeding fiscal

years, 100.0 percent.

(C) LIMITATION.—If the application of subparagraph

(B) would result in any of the 50 States or the District

of Columbia receiving less under this subpart than it

received under this subpart for the preceding fiscal year,

the percentage in subparagraph (A) shall be the greater

of—

(i) the percentage in subparagraph (A)(i);

(ii) the percentage specified in subparagraph (B)

for the preceding fiscal year; or

(iii) the percentage used for the preceding fiscal

year.

(b) MINIMUM NUMBER OF CHILDREN TO QUALIFY.—A local

educational agency is eligible for a basic grant under this section

for any fiscal year only if the number of children counted under

subsection (c) for that agency is both—

(1) 10 or more; and

(2) more than 2 percent of the total school-age population

in the agency’s jurisdiction.

(c) CHILDREN TO BE COUNTED.—

(1) CATEGORIES OF CHILDREN.—The number of children

to be counted for purposes of this section is the aggregate

of—

(A) the number of children aged 5 to 17, inclusive,

in the school district of the local educational agency from

families below the poverty level as determined under paragraph

(2);

(B) the number of children (determined under paragraph

(4) for either the preceding year as described in

that paragraph, or for the second preceding year, as the

Secretary finds appropriate) aged 5 to 17, inclusive, in

the school district of such agency in institutions for

neglected and delinquent children (other than such institutions

operated by the United States), but not counted

pursuant to subpart 1 of part D for the purposes of a

grant to a State agency, or being supported in foster homes

with public funds; and

(C) the number of children aged 5 to 17, inclusive,

in the school district of such agency from families above

the poverty level as determined under paragraph (4).

(2) DETERMINATION OF NUMBER OF CHILDREN.—For the

purposes of this section, the Secretary shall determine the

number of children aged 5 to 17, inclusive, from families below

the poverty level on the basis of the most recent satisfactory

data, described in paragraph (3), available from the Department

of Commerce. The District of Columbia and the Commonwealth

of Puerto Rico shall be treated as individual local educational

agencies. If a local educational agency contains two or more

counties in their entirety, then each county will be treated

as if such county were a separate local educational agency

for purposes of calculating grants under this part. The total

of grants for such counties shall be allocated to such a local

educational agency, which local educational agency shall distribute

to schools in each county within such agency a share

of the local educational agency’s total grant that is no less

than the county’s share of the population counts used to calculate

the local educational agency’s grant.

(3) POPULATION UPDATES.—

(A) IN GENERAL.—In fiscal year 2002 and each subsequent

fiscal year, the Secretary shall use updated data

on the number of children, aged 5 to 17, inclusive, from

families below the poverty level for counties or local educational

agencies, published by the Department of Commerce,

unless the Secretary and the Secretary of Commerce

determine that the use of the updated population data

would be inappropriate or unreliable. If appropriate and

reliable data are not available annually, the Secretary shall

use data which are updated every 2 years.

(B) INAPPROPRIATE OR UNRELIABLE DATA.—If the Secretary

and the Secretary of Commerce determine that some

or all of the data referred to in subparagraph (A) are

inappropriate or unreliable, the Secretary and the Secretary

of Commerce shall publicly disclose their reasons.

(C) CRITERIA OF POVERTY.—In determining the families

that are below the poverty level, the Secretary shall

use the criteria of poverty used by the Bureau of the

Census in compiling the most recent decennial census,

as the criteria have been updated by increases in the

Consumer Price Index for All Urban Consumers, published

by the Bureau of Labor Statistics.

(4) OTHER CHILDREN TO BE COUNTED.—

(A) For the purpose of this section, the Secretary

shall determine the number of children aged 5 to 17, inclusive,

from families above the poverty level on the basis

of the number of such children from families receiving

an annual income, in excess of the current criteria of poverty,

from payments under a State program funded under

part A of title IV of the Social Security Act; and in making

such determinations, the Secretary shall use the criteria

of poverty used by the Bureau of the Census in compiling

the most recent decennial census for a family of four in

such form as those criteria have been updated by increases

in the Consumer Price Index for All Urban Consumers,

published by the Bureau of Labor Statistics.

(B) The Secretary shall determine the number of such

children and the number of children aged 5 through 17

living in institutions for neglected or delinquent children,

or being supported in foster homes with public funds, on

the basis of the caseload data for the month of October

of the preceding fiscal year (using, in the case of children

described in the preceding sentence, the criteria of poverty

and the form of such criteria required by such sentence

which were determined for the calendar year preceding

such month of October) or, to the extent that such data

are not available to the Secretary before January of the

calendar year in which the Secretary’s determination is

made, then on the basis of the most recent reliable data

available to the Secretary at the time of such determination.

(C) Except for the data on children living in institutions

for neglected or delinquent children, the Secretary

of Health and Human Services shall collect and transmit

the information required by this subparagraph to the Secretary

not later than January 1 of each year.

(D) For the purpose of this section, the Secretary

shall consider all children who are in correctional institutions

to be living in institutions for delinquent children.

(5) ESTIMATE.—When requested by the Secretary, the Secretary

of Commerce shall make a special updated estimate

of the number of children of such ages who are from families

below the poverty level (as determined under paragraph (1)(A))

in each school district, and the Secretary is authorized to pay

(either in advance or by way of reimbursement) the Secretary

of Commerce the cost of making this special estimate. The

Secretary of Commerce shall give consideration to any request

of the chief executive of a State for the collection of additional

census information.

(d) STATE MINIMUM.—Notwithstanding section 1122, the

aggregate amount allotted for all local educational agencies within

a State may not be less than the lesser of—

(1) 0.25 percent of the total amount allocated to States

under this section for fiscal year 2001, plus 0.35 percent of

the total amount allocated to States under this section in excess

of the amount allocated for fiscal year 2001; or

(2) the average of—

(A) the amount calculated in paragraph (1), above;

and

(B) the number of children in such State counted

under subsection (c) in the fiscal year multiplied by 150

percent of the national average per-pupil payment made

with funds available under this section for that year.

SEC. 1124A. CONCENTRATION GRANTS TO LOCAL EDUCATIONAL

AGENCIES.

(a) ELIGIBILITY FOR AND AMOUNT OF GRANTS.—

(1) IN GENERAL.—(A) Except as otherwise provided in this

paragraph, each local educational agency which is eligible for

a grant under section 1124 for any fiscal year is eligible for

an additional grant under this section for that fiscal year if

the number of children counted under section 1124(c) in the

agency exceeds either—

(i) 6,500; or

(ii) 15 percent of the total number of children aged

5 through 17 in the agency.

(B) Notwithstanding section 1122, no State shall receive

less than the lesser of—

(i) 0.25 percent of the total amount allocated to States

under this section for fiscal year 2001, plus 0.35 percent

of the total amount allocated to States under this section

in excess of the amount allocated for fiscal year 2001;

or

(ii) the average of—

(I) the amount calculated under clause (i); and

(II) the greater of—

(aa) $340,000; or

(bb) the number of children in such State

counted for purposes of this section in that fiscal

year multiplied by 150 percent of the national

average per-pupil payment made with funds available

under this section for that year.

(2) DETERMINATION.—For each county or local educational

agency eligible to receive an additional grant under this section

for any fiscal year, the Secretary shall determine the product

of—

(A) the number of children counted under section

1124(c) for that fiscal year; and

(B) the amount in section 1124(a)(1)(B) for each State

except the Commonwealth of Puerto Rico, and the amount

in section 1124(a)(4) for the Commonwealth of Puerto Rico.

(3) AMOUNT.—The amount of the additional grant for

which an eligible local educational agency or county is eligible

under this section for any fiscal year shall be an amount

which bears the same ratio to the amount available to carry

out this section for that fiscal year as the product determined

under paragraph (2) for such local educational agency for that

fiscal year bears to the sum of such products for all local

educational agencies in the United States for that fiscal year.

(4) LOCAL ALLOCATIONS.—(A) Grant amounts under this

section shall be determined in accordance with section

(B) For any fiscal year for which the Secretary allocates

funds under this section on the basis of counties, a State

may reserve not more than 2 percent of its allocation under

this section to make grants to local educational agencies that

meet the criteria of paragraph (1)(A)(i) or (ii) and are in ineligible

counties that do not meet these criteria.

(b) SMALL STATES.—In any State for which on the date of

enactment of the No Child Left Behind Act of 2001 the number

of children counted under section 1124(c) is less than 0.25 percent

of the number of those children counted for all States, the State

educational agency shall allocate funds under this section among

the local educational agencies in the State either—

(1) in accordance with paragraphs (2) and (4) of subsection

(a); or

(2) based on their respective concentrations and numbers

of children counted under section 1124(c), except that only

those local educational agencies with concentrations or numbers

of children counted under section 1124(c) that exceed the statewide

average percentage of such children or the statewide

average number of such children shall receive any funds on

the basis of this paragraph.

SEC. 1125. TARGETED GRANTS TO LOCAL EDUCATIONAL AGENCIES.

(a) ELIGIBILITY OF LOCAL EDUCATIONAL AGENCIES.—

(1) IN GENERAL.—A local educational agency in a State

is eligible to receive a targeted grant under this section for

any fiscal year if—

(A) the number of children in the local educational

agency counted under section 1124(c), before application

of the weighted child count described in subsection (c),

is at least 10; and

(B) if the number of children counted for grants under

section 1124(c), before application of the weighted child

count described in subsection (c), is at least 5 percent

of the total number of children aged 5 to 17 years, inclusive,

in the school district of the local educational agency.

(2) SPECIAL RULE.—For any fiscal year for which the Secretary

allocates funds under this section on the basis of counties,

funds made available as a result of applying this subsection

shall be reallocated by the State educational agency to other

eligible local educational agencies in the State in proportion

to the distribution of other funds under this section.

(b) GRANTS FOR LOCAL EDUCATIONAL AGENCIES, THE DISTRICT

OF COLUMBIA, AND THE COMMONWEALTH OF PUERTO RICO.—

(1) IN GENERAL.—The amount of the grant that a local

educational agency in a State (other than the Commonwealth

of Puerto Rico) is eligible to receive under this section for

any fiscal year shall be the product of—

(A) the weighted child count determined under subsection

(c); and

(B) the amount determined under section

1124(a)(1)(B).

(2) PUERTO RICO.—For each fiscal year, the amount of

the grant the Commonwealth of Puerto Rico is eligible to receive

under this section shall be equal to the number of children

counted under subsection (c) for the Commonwealth of Puerto

Rico, multiplied by the amount determined in section 1124(a)(4)

for the Commonwealth of Puerto Rico.

(c) WEIGHTED CHILD COUNT.—

(1) WEIGHTS FOR ALLOCATIONS TO COUNTIES.—

(A) IN GENERAL.—For each fiscal year for which the

Secretary uses county population data to calculate grants,

the weighted child count used to determine a county’s

allocation under this section is the larger of the two

amounts determined under subparagraphs (B) and (C).

(B) BY PERCENTAGE OF CHILDREN.—The amount

referred to in subparagraph (A) is determined by adding—

(i) the number of children determined under section

1124(c) for that county who constitute not more

than 15.00 percent, inclusive, of the county’s total

population aged 5 to 17, inclusive, multiplied by 1.0;

(ii) the number of such children who constitute

more than 15.00 percent, but not more than 19.00

percent, of such population, multiplied by 1.75;

(iii) the number of such children who constitute

more than 19.00 percent, but not more than 24.20

percent, of such population, multiplied by 2.5;

(iv) the number of such children who constitute

more than 24.20 percent, but not more than 29.20

percent, of such population, multiplied by 3.25; and

(v) the number of such children who constitute

more than 29.20 percent of such population, multiplied

by 4.0.

(C) BY NUMBER OF CHILDREN.—The amount referred

to in subparagraph (A) is determined by adding—

(i) the number of children determined under section

1124(c) who constitute not more than 2,311, inclusive,

of the county’s total population aged 5 to 17,

inclusive, multiplied by 1.0;

(ii) the number of such children between 2,312

and 7,913, inclusive, in such population, multiplied

by 1.5;

(iii) the number of such children between 7,914

and 23,917, inclusive, in such population, multiplied

by 2.0;

(iv) the number of such children between 23,918

and 93,810, inclusive, in such population, multiplied

by 2.5; and

(v) the number of such children in excess of 93,811

in such population, multiplied by 3.0.

(D) PUERTO RICO.—Notwithstanding subparagraph

(A), the weighting factor for the Commonwealth of Puerto

Rico under this paragraph shall not be greater than the

total number of children counted under section 1124(c)

multiplied by 1.82.

(2) WEIGHTS FOR ALLOCATIONS TO LOCAL EDUCATIONAL

AGENCIES.—

(A) IN GENERAL.—For each fiscal year for which the

Secretary uses local educational agency data, the weighted

child count used to determine a local educational agency’s

grant under this section is the larger of the two amounts

determined under subparagraphs (B) and (C).

(B) BY PERCENTAGE OF CHILDREN.—The amount

referred to in subparagraph (A) is determined by adding—

(i) the number of children determined under section

1124(c) for that local educational agency who constitute

not more than 15.58 percent, inclusive, of the

agency’s total population aged 5 to 17, inclusive, multiplied

by 1.0;

(ii) the number of such children who constitute

more than 15.58 percent, but not more than 22.11

percent, of such population, multiplied by 1.75;

(iii) the number of such children who constitute

more than 22.11 percent, but not more than 30.16

percent, of such population, multiplied by 2.5;

(iv) the number of such children who constitute

more than 30.16 percent, but not more than 38.24

percent, of such population, multiplied by 3.25; and

(v) the number of such children who constitute

more than 38.24 percent of such population, multiplied

by 4.0.

(C) BY NUMBER OF CHILDREN.—The amount referred

to in subparagraph (A) is determined by adding—

(i) the number of children determined under section

1124(c) who constitute not more than 691, inclusive,

of the agency’s total population aged 5 to 17,

inclusive, multiplied by 1.0;

(ii) the number of such children between 692 and

2,262, inclusive, in such population, multiplied by 1.5;

(iii) the number of such children between 2,263

and 7,851, inclusive, in such population, multiplied

by 2.0;

(iv) the number of such children between 7,852

and 35,514, inclusive, in such population, multiplied

by 2.5; and

(v) the number of such children in excess of 35,514

in such population, multiplied by 3.0.

(D) PUERTO RICO.—Notwithstanding subparagraph

(A), the weighting factor for the Commonwealth of Puerto

Rico under this paragraph shall not be greater than the

total number of children counted under section 1124(c)

multiplied by 1.82.

(d) CALCULATION OF GRANT AMOUNTS.—Grant amounts under

this section shall be calculated in the same manner as grant

amounts are calculated under section 1124(a)(2) and (3).

(e) STATE MINIMUM.—Notwithstanding any other provision of

this section or section 1122, from the total amount available for

any fiscal year to carry out this section, each State shall be allotted

at least the lesser of—

(1) 0.35 percent of the total amount available to carry

out this section; or

(2) the average of—

(A) 0.35 percent of the total amount available to carry

out this section; and

(B) 150 percent of the national average grant under

this section per child described in section 1124(c), without

application of a weighting factor, multiplied by the State’s

total number of children described in section 1124(c), without

application of a weighting factor.

SEC. 1125AA. ADEQUACY OF FUNDING OF TARGETED GRANTS TO

LOCAL EDUCATIONAL AGENCIES IN FISCAL YEARS

AFTER FISCAL YEAR 2001.

(a) FINDINGS.—Congress makes the following findings:

(1) The current Basic Grant Formula for the distribution

of funds under this part often does not provide funds for the

economically disadvantaged students for which such funds are

targeted.

(2) Any school district in which more than 2 percent

of the students live below the poverty level qualifies for funding

under the Basic Grant Formula. As a result, 9 out of every

10 school districts in the country receive some form of aid

under the Formula.

(3) Fifty-eight percent of all schools receive at least some

funding under this part, including many suburban schools with

predominantly well-off students.

(4) One out of every 5 schools with concentrations of

poor students between 50 and 75 percent receive no funding

at all under this part.

(5) In passing the Improving America’s Schools Act in

1994, Congress declared that grants under this part would

more sharply target high poverty schools by using the Targeted

Grant Formula, but annual appropriation Acts have prevented

the use of that Formula.

(6) The advantage of the Targeted Grant Formula over

other funding formulas under this part is that the Targeted

Grant Formula provides increased grants per poor child as

the percentage of economically disadvantaged children in a

school district increases.

(7) Studies have found that the poverty of a child’s family

is much more likely to be associated with educational disadvantage

if the family lives in an area with large concentrations

of poor families.

(8) States with large populations of high poverty students

would receive significantly more funding if more funds under

this part were allocated through the Targeted Grant Formula.

(9) Congress has an obligation to allocate funds under

this part so that such funds will positively affect the largest

number of economically disadvantaged students.

(b) LIMITATION ON ALLOCATION OF TITLE I FUNDS CONTINGENT

ON ADEQUATE FUNDING OF TARGETED GRANTS.—Pursuant to section

1122, the total amount allocated in any fiscal year after fiscal

year 2001 for programs and activities under this part shall not

exceed the amount allocated in fiscal year 2001 for such programs

and activities unless the amount available for targeted grants to

local educational agencies under section 1125 in the applicable

fiscal year meets the requirements of section 1122(a).

SEC. 1125A. EDUCATION FINANCE INCENTIVE GRANT PROGRAM.

(a) GRANTS.—From funds appropriated under subsection (f)

the Secretary is authorized to make grants to States, from allotments

under subsection (b), to carry out the programs and activities

of this part.

(b) DISTRIBUTION BASED UPON FISCAL EFFORT AND EQUITY.—

(1) IN GENERAL.—

(A) IN GENERAL.—Except as provided in subparagraph

(B), funds appropriated pursuant to subsection (f) shall

be allotted to each State based upon the number of children

counted under section 1124(c) in such State multiplied

by the product of—

(i) the amount in section 1124(a)(1)(B) for all

States other than the Commonwealth of Puerto Rico,

except that the amount determined under that

subparagraph shall not be less that 34 percent or more

than 46 percent of the average per pupil expenditure

in the United States, and the amount in section

1124(a)(4) for the Commonwealth of Puerto Rico, except

that the amount in section 1124(a)(4)(A)(ii) shall be

34 percent of the average per pupil expenditure in

the United States; multiplied by

(ii) such State’s effort factor described in paragraph

(2); multiplied by

(iii) 1.30 minus such State’s equity factor

described in paragraph (3).

(B) STATE MINIMUM.—Notwithstanding any other

provision of this section or section 1122, from the total

amount available for any fiscal year to carry out this section,

each State shall be allotted at least the lesser of—

(i) 0.35 percent of total appropriations; or

(ii) the average of—

(I) 0.35 percent of the total amount available

to carry out this section; and

(II) 150 percent of the national average grant

under this section per child described in section

1124(c), without application of a weighting factor,

multiplied by the State’s total number of children

described in section 1124(c), without application

of a weighting factor.

(2) EFFORT FACTOR.—

(A) IN GENERAL.—Except as provided in subparagraph

(B), the effort factor for a State shall be determined in

accordance with the succeeding sentence, except that such

factor shall not be less than 0.95 nor greater than 1.05.

The effort factor determined under this sentence shall be

a fraction the numerator of which is the product of the

3-year average per-pupil expenditure in the State multiplied

by the 3-year average per capita income in the United

States and the denominator of which is the product of

the 3-year average per capita income in such State multiplied

by the 3-year average per-pupil expenditure in the

United States.

(B) COMMONWEALTH OF PUERTO RICO.—The effort

factor for the Commonwealth of Puerto Rico shall be equal

to the lowest effort factor calculated under subparagraph

(A) for any State.

(3) EQUITY FACTOR.—

(A) DETERMINATION.—

(i) IN GENERAL.—Except as provided in subparagraph

(B), the Secretary shall determine the equity

factor under this section for each State in accordance

with clause (ii).

(ii) COMPUTATION.—

(I) IN GENERAL.—For each State, the Secretary

shall compute a weighted coefficient of variation

for the per-pupil expenditures of local educational

agencies in accordance with subclauses

(II), (III), and (IV).

(II) VARIATION.—In computing coefficients of

variation, the Secretary shall weigh the variation

between per-pupil expenditures in each local educational

agency and the average per-pupil expenditures

in the State according to the number of

pupils served by the local educational agency.

(III) NUMBER OF PUPILS.—In determining the

number of pupils under this paragraph served by

each local educational agency and in each State,

the Secretary shall multiply the number of children

counted under section 1124(c) by a factor

of 1.4.

(IV) ENROLLMENT REQUIREMENT.—In computing

coefficients of variation, the Secretary shall

include only those local educational agencies with

an enrollment of more than 200 students.

(B) SPECIAL RULE.—The equity factor for a State that

meets the disparity standard described in section 222.162

of title 34, Code of Federal Regulations (as such section

was in effect on the day preceding the date of enactment

of the No Child Left Behind Act of 2001) or a State with

only one local educational agency shall be not greater than

0.10.

(c) USE OF FUNDS; ELIGIBILITY OF LOCAL EDUCATIONAL AGENCIES.

—All funds awarded to each State under this section shall

be allocated to local educational agencies under the following provisions.

Within local educational agencies, funds allocated under this

section shall be distributed to schools on a basis consistent with

section 1113, and may only be used to carry out activities under

this part. A local educational agency in a State is eligible to receive

a targeted grant under this section for any fiscal year if—

(A) the number of children in the local educational agency

counted under section 1124(c), before application of the

weighted child count described in paragraph (3), is at least

10; and

(B) if the number of children counted for grants under

section 1124(c), before application of the weighted child count

described in paragraph (3), is at least 5 percent of the total

number of children aged 5 to 17 years, inclusive, in the school

district of the local educational agency.

For any fiscal year for which the Secretary allocates funds

under this section on the basis of counties, funds made available

as a result of applying this subsection shall be reallocated by

the State educational agency to other eligible local educational

agencies in the State in proportion to the distribution of other

funds under this section.

(d) ALLOCATION OF FUNDS TO ELIGIBLE LOCAL EDUCATIONAL

AGENCIES.—Funds received by States under this section shall be

allocated within States to eligible local educational agencies on

the basis of weighted child counts calculated in accordance with

paragraph (1), (2), or (3), as appropriate for each State.

(1) STATES WITH AN EQUITY FACTOR LESS THAN .10.—In

States with an equity factor less than .10, the weighted child

counts referred to in subsection (d) shall be calculated as follows:

(A) WEIGHTS FOR ALLOCATIONS TO COUNTIES.—

(i) IN GENERAL.—For each fiscal year for which

the Secretary uses county population data to calculate

grants, the weighted child count used to determine

a county’s allocation under this section is the larger

of the two amounts determined under clauses (ii) and

(iii).

(ii) BY PERCENTAGE OF CHILDREN.—The amount

referred to in clause (i) is determined by adding—

(I) the number of children determined under

section 1124(c) for that county who constitute not

more than 15.00 percent, inclusive, of the county’s

total population aged 5 to 17, inclusive, multiplied

by 1.0;

(II) the number of such children who constitute

more than 15.00 percent, but not more

than 19.00 percent, of such population, multiplied

by 1.75;

(III) the number of such children who constitute

more than 19.00 percent, but not more

than 24.20 percent, of such population, multiplied

by 2.5;

(IV) the number of such children who constitute

more than 24.20 percent, but not more

than 29.20 percent, of such population, multiplied

by 3.25; and

(V) the number of such children who constitute

more than 29.20 percent of such population,

multiplied by 4.0.

(iii) BY NUMBER OF CHILDREN.—The amount

referred to in clause (i) is determined by adding

(I) the number of children determined under

section 1124(c) who constitute not more than 2,311,

inclusive, of the county’s total population aged 5

to 17, inclusive, multiplied by 1.0;

(II) the number of such children between

2,312 and 7,913, inclusive, in such population,

multiplied by 1.5;

(III) the number of such children between

7,914 and 23,917, inclusive, in such population,

multiplied by 2.0;

(IV) the number of such children between

23,918 and 93,810, inclusive, in such population,

multiplied by 2.5; and

(V) the number of such children in excess

of 93,811 in such population, multiplied by 3.0.

(B) WEIGHTS FOR ALLOCATIONS TO LOCAL EDUCATIONAL

AGENCIES.—

(i) IN GENERAL.—For each fiscal year for which

the Secretary uses local educational agency data, the

weighted child count used to determine a local educational

agency’s grant under this section is the larger

of the two amounts determined under clauses (ii) and

(iii).

(ii) BY PERCENTAGE OF CHILDREN.—The amount

referred to in clause (i) is determined by adding—

(I) the number of children determined under

section 1124(c) for that local educational agency

who constitute not more than 15.58 percent, inclusive,

of the agency’s total population aged 5 to

17, inclusive, multiplied by 1.0;

(II) the number of such children who constitute

more than 15.58 percent, but not more

than 22.11 percent, of such population, multiplied

by 1.75;

(III) the number of such children who constitute

more than 22.11 percent, but not more

than 30.16 percent, of such population, multiplied

by 2.5;

(IV) the number of such children who constitute

more than 30.16 percent, but not more

than 38.24 percent, of such population, multiplied

by 3.25; and

(V) the number of such children who constitute

more than 38.24 percent of such population,

multiplied by 4.0.

(iii) BY NUMBER OF CHILDREN.—The amount

referred to in clause (i) is determined by adding—

(I) the number of children determined under

section 1124(c) who constitute not more than 691,

inclusive, of the agency’s total population aged 5

to 17, inclusive, multiplied by 1.0;

(II) the number of such children between 692

and 2,262, inclusive, in such population, multiplied

by 1.5;

(III) the number of such children between

2,263 and 7,851, inclusive, in such population,

multiplied by 2.0;

(IV) the number of such children between

7,852 and 35,514, inclusive, in such population,

multiplied by 2.5; and

(V) the number of such children in excess

of 35,514 in such population, multiplied by 3.0.

(2) STATES WITH AN EQUITY FACTOR GREATER THAN OR

EQUAL TO .10 AND LESS THAN .20.—In States with an equity

factor greater than or equal to .10 and less than .20, the

weighted child counts referred to in subsection (d) shall be

calculated as follows:

(A) WEIGHTS FOR ALLOCATIONS TO COUNTIES.—

(i) IN GENERAL.—For each fiscal year for which

the Secretary uses county population data to calculate

grants, the weighted child count used to determine

a county’s allocation under this section is the larger

of the two amounts determined under clauses (ii) and

(iii).

(ii) BY PERCENTAGE OF CHILDREN.—The amount

referred to in clause (i) is determined by adding—

(I) the number of children determined under

section 1124(c) for that county who constitute not

more than 15.00 percent, inclusive, of the county’s

total population aged 5 to 17, inclusive, multiplied

by 1.0;

(II) the number of such children who constitute

more than 15.00 percent, but not more

than 19.00 percent, of such population, multiplied

by 1.5;

(III) the number of such children who constitute

more than 19.00 percent, but not more

than 24.20 percent, of such population, multiplied

by 3.0;

(IV) the number of such children who constitute

more than 24.20 percent, but not more

than 29.20 percent, of such population, multiplied

by 4.5; and

(V) the number of such children who constitute

more than 29.20 percent of such population,

multiplied by 6.0.

(iii) BY NUMBER OF CHILDREN.—The amount

referred to in clause (i) is determined by adding—

(I) the number of children determined under

section 1124(c) who constitute not more than 2,311,

inclusive, of the county’s total population aged 5

to 17, inclusive, multiplied by 1.0;

(II) the number of such children between

2,312 and 7,913, inclusive, in such population,

multiplied by 1.5;

(III) the number of such children between

7,914 and 23,917, inclusive, in such population,

multiplied by 2.25;

(IV) the number of such children between

23,918 and 93,810, inclusive, in such population,

multiplied by 3.375; and

(V) the number of such children in excess

of 93,811 in such population, multiplied by 4.5.

(B) WEIGHTS FOR ALLOCATIONS TO LOCAL EDUCATIONAL

AGENCIES.—

(i) IN GENERAL.—For each fiscal year for which

the Secretary uses local educational agency data, the

weighted child count used to determine a local educational

agency’s grant under this section is the larger

of the two amounts determined under clauses (ii) and

(iii).

(ii) BY PERCENTAGE OF CHILDREN.—The amount

referred to in clause (i) is determined by adding—

(I) the number of children determined under

section 1124(c) for that local educational agency

who constitute not more than 15.58 percent, inclusive,

of the agency’s total population aged 5 to

17, inclusive, multiplied by 1.0;

(II) the number of such children who constitute

more than 15.58 percent, but not more

than 22.11 percent, of such population, multiplied

by 1.5;

(III) the number of such children who constitute

more than 22.11 percent, but not more

than 30.16 percent, of such population, multiplied

by 3.0;

(IV) the number of such children who constitute

more than 30.16 percent, but not more

than 38.24 percent, of such population, multiplied

by 4.5; and

(V) the number of such children who constitute

more than 38.24 percent of such population,

multiplied by 6.0.

(iii) BY NUMBER OF CHILDREN.—The amount

referred to in clause (i) is determined by adding—

(I) the number of children determined under

section 1124(c) who constitute not more than 691,

inclusive, of the agency’s total population aged 5

to 17, inclusive, multiplied by 1.0;

(II) the number of such children between 692

and 2,262, inclusive, in such population, multiplied

by 1.5;

(III) the number of such children between

2,263 and 7,851, inclusive, in such population,

multiplied by 2.25;

(IV) the number of such children between

7,852 and 35,514, inclusive, in such population,

multiplied by 3.375; and

(V) the number of such children in excess

of 35,514 in such population, multiplied by 4.5.

(3) STATES WITH AN EQUITY FACTOR GREATER THAN OR

EQUAL TO .20.—In States with an equity factor greater than

or equal to .20, the weighted child counts referred to in subsection

(d) shall be calculated as follows:

(A) WEIGHTS FOR ALLOCATIONS TO COUNTIES.—

(i) IN GENERAL.—For each fiscal year for which

the Secretary uses county population data to calculate

grants, the weighted child count used to determine

a county’s allocation under this section is the larger

of the two amounts determined under clauses (ii) and

(iii).

(ii) BY PERCENTAGE OF CHILDREN.—The amount

referred to in clause (i) is determined by adding—

(I) the number of children determined under

section 1124(c) for that county who constitute not

more than 15.00 percent, inclusive, of the county’s

total population aged 5 to 17, inclusive, multiplied

by 1.0;

(II) the number of such children who constitute

more than 15.00 percent, but not more

than 19.00 percent, of such population, multiplied

by 2.0;

(III) the number of such children who constitute

more than 19.00 percent, but not more

than 24.20 percent, of such population, multiplied

by 4.0;

(IV) the number of such children who constitute

more than 24.20 percent, but not more

than 29.20 percent, of such population, multiplied

by 6.0; and

(V) the number of such children who constitute

more than 29.20 percent of such population,

multiplied by 8.0.

(iii) BY NUMBER OF CHILDREN.—The amount

referred to in clause (i) is determined by adding—

(I) the number of children determined under

section 1124(c) who constitute not more than 2,311,

inclusive, of the county’s total population aged 5

to 17, inclusive, multiplied by 1.0;

(II) the number of such children between

2,312 and 7,913, inclusive, in such population,

multiplied by 2.0;

(III) the number of such children between

7,914 and 23,917, inclusive, in such population,

multiplied by 3.0;

(IV) the number of such children between

23,918 and 93,810, inclusive, in such population,

multiplied by 4.5; and

(V) the number of such children in excess

of 93,811 in such population, multiplied by 6.0.

(B) WEIGHTS FOR ALLOCATIONS TO LOCAL EDUCATIONAL

AGENCIES.—

(i) IN GENERAL.—For each fiscal year for which

the Secretary uses local educational agency data, the

weighted child count used to determine a local educational

agency’s grant under this section is the larger

of the two amounts determined under clauses (ii) and

(iii).

(ii) BY PERCENTAGE OF CHILDREN.—The amount

referred to in clause (i) is determined by adding—

(I) the number of children determined under

section 1124(c) for that local educational agency

who constitute not more than 15.58 percent, inclusive,

of the agency’s total population aged 5 to

17, inclusive, multiplied by 1.0;

(II) the number of such children who constitute

more than 15.58 percent, but not more

than 22.11 percent, of such population, multiplied

by 2.0;

(III) the number of such children who constitute

more than 22.11 percent, but not more

than 30.16 percent, of such population, multiplied

by 4.0;

(IV) the number of such children who constitute

more than 30.16 percent, but not more

than 38.24 percent, of such population, multiplied

by 6.0; and

(V) the number of such children who constitute

more than 38.24 percent of such population,

multiplied by 8.0.

(iii) BY NUMBER OF CHILDREN.—The amount

referred to in clause (i) is determined by adding—

(I) the number of children determined under

section 1124(c) who constitute not more than 691,

inclusive, of the agency’s total population aged 5

to 17, inclusive, multiplied by 1.0;

(II) the number of such children between 692

and 2,262, inclusive, in such population, multiplied

by 2.0;

(III) the number of such children between

2,263 and 7,851, inclusive, in such population,

multiplied by 3.0;

(IV) the number of such children between

7,852 and 35,514, inclusive, in such population,

multiplied by 4.5; and

(V) the number of such children in excess

of 35,514 in such population, multiplied by 6.0.

(e) MAINTENANCE OF EFFORT.—

(1) IN GENERAL.—Except as provided in paragraph (2),

a State is entitled to receive its full allotment of funds under

this section for any fiscal year if the Secretary finds that

either the combined fiscal effort per student or the aggregate

expenditures within the State with respect to the provision

of free public education for the fiscal year preceding the fiscal

year for which the determination is made was not less than

90 percent of such combined fiscal effort or aggregate expenditures

for the second fiscal year preceding the fiscal year for

which the determination is made.

(2) REDUCTION OF FUNDS.—The Secretary shall reduce

the amount of funds awarded to any State under this section

in any fiscal year in the exact proportion to which the State

fails to meet the requirements of paragraph (1) by falling below

90 percent of both the fiscal effort per student and aggregate

expenditures (using the measure most favorable to the State),

and no such lesser amount shall be used for computing the

effort required under paragraph (1) for subsequent years.

(3) WAIVERS.—The Secretary may waive, for 1 fiscal year

only, the requirements of this subsection if the Secretary determines

that such a waiver would be equitable due to exceptional

or uncontrollable circumstances such as a natural disaster or

a precipitous and unforeseen decline in the financial resources

of the State.

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated to carry out this section such sums as may

be necessary for fiscal year 2002 and for each of the 5 succeeding

fiscal years.

(g) ADJUSTMENTS WHERE NECESSITATED BY APPROPRIATIONS.—

(1) IN GENERAL.—If the sums available under this section

for any fiscal year are insufficient to pay the full amounts

that all local educational agencies in States are eligible to

receive under this section for such year, the Secretary shall

ratably reduce the allocations to such local educational agencies,

subject to paragraphs (2) and (3).

(2) ADDITIONAL FUNDS.—If additional funds become available

for making payments under this section for such fiscal

year, allocations that were reduced under paragraph (1) shall

be increased on the same basis as they were reduced.

(3) HOLD-HARMLESS AMOUNTS.—For each fiscal year, if

sufficient funds are available, the amount made available to

each local educational agency under this section shall be

(A) not less than 95 percent of the amount made

available for the preceding fiscal year if the number of

children counted for grants under section 1124 is not less

than 30 percent of the total number of children aged 5

to 17 years, inclusive, in the local educational agency;

(B) not less than 90 percent of the amount made

available for the preceding fiscal year if the percentage

described in subparagraph (A) is between 15 percent and

30 percent; and

(C) not less than 85 percent of the amount made

available for the preceding fiscal year if the percentage

described in subparagraph (A) is below 15 percent.

(4) APPLICABILITY.—Notwithstanding any other provision

of law, the Secretary shall not take into consideration the

hold-harmless provisions of this subsection for any fiscal year

for purposes of calculating State or local allocations for the

fiscal year under any program administered by the Secretary

other than a program authorized under this part.

SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

(a) ALLOCATIONS FOR NEGLECTED CHILDREN.—

(1) IN GENERAL.—If a State educational agency determines

that a local educational agency in the State is unable or

unwilling to provide for the special educational needs of children

who are living in institutions for neglected children as

described in section 1124(c)(1)(B), the State educational agency

shall, if such agency assumes responsibility for the special

educational needs of such children, receive the portion of such

local educational agency’s allocation under sections 1124,

1124A, 1125, and 1125A that is attributable to such children.

(2) SPECIAL RULE.—If the State educational agency does

not assume such responsibility, any other State or local public

agency that does assume such responsibility shall receive that

portion of the local educational agency’s allocation.

(b) ALLOCATIONS AMONG LOCAL EDUCATIONAL AGENCIES.—The

State educational agency may allocate the amounts of grants under

sections 1124, 1124A, 1125, and 1125A among the affected local

educational agencies—

(1) if two or more local educational agencies serve, in

whole or in part, the same geographical area;

(2) if a local educational agency provides free public education

for children who reside in the school district of another

local educational agency; or

(3) to reflect the merger, creation, or change of boundaries

of one or more local educational agencies.

(c) REALLOCATION.—If a State educational agency determines

that the amount of a grant a local educational agency would receive

under sections 1124, 1124A, 1125, and 1125A is more than such

local educational agency will use, the State educational agency

shall make the excess amount available to other local educational

agencies in the State that need additional funds in accordance

with criteria established by the State educational agency.

SEC. 1127. CARRYOVER AND WAIVER.

(a) LIMITATION ON CARRYOVER.—Notwithstanding section

421(b) of the General Education Provisions Act or any other provision

of law, not more than 15 percent of the funds allocated to

a local educational agency for any fiscal year under this subpart

(but not including funds received through any reallocation under

this subpart) may remain available for obligation by such agency

for one additional fiscal year.

(b) WAIVER.—A State educational agency may, once every 3

years, waive the percentage limitation in subsection (a) if—

(1) the agency determines that the request of a local

educational agency is reasonable and necessary; or

(2) supplemental appropriations for this subpart become

available.

(c) EXCLUSION.—The percentage limitation under subsection

(a) shall not apply to any local educational agency that receives

less than $50,000 under this subpart for any fiscal year. 

 


 

NCLB Program Coordination Home Page

Cory Green, Senior Director

Contact:  nclb@tea.state.tx.us  or (512) 463-9374

Last Updated: 10/12/2009



 

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