S. 1567 (112th): Teacher and Principal Improvement Act

S 1567 IS

To amend title II of the Elementary and Secondary Education Act of 1965, and for other purposes.

September 15, 2011

Mr. ALEXANDER (for himself, Mr. ISAKSON, Mr. KIRK, Mr. ROBERTS, and Mr. WICKER) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

To amend title II of the Elementary and Secondary Education Act of 1965, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Teacher and Principal Improvement Act’.

SEC. 2. HIGH-QUALITY TEACHERS AND PRINCIPALS.

The Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) is amended--

(1) by redesignating subpart 5 of part C of title II as subpart 3 of part E of title IX and moving that subpart to the end of part E of title IX;

(2) by redesignating sections 2361 through 2368 as sections 9541 through 9548, respectively;

(3) by striking the subpart heading of subpart 3 of part E of title IX, as redesignated by paragraph (1), and inserting the following:

‘Subpart 3--Teacher Liability Protection’;

(4) in section 9546, as redesignated by paragraph (2), in subsection (b), by striking the matter following paragraph (2) and inserting the following:

‘(3) A State law that makes a limitation of liability inapplicable if the civil action was brought by an officer of a State or local government pursuant to State or local law.’;

(5) by redesignating subpart 4 of part D of title II as subpart 4 of part E of title IX and moving that subpart to the end of part E of title IX;

(6) by redesignating section 2441 as section 9551;

(7) by striking the subpart heading of subpart 4 of title IX, as redesignated by paragraph (5), and inserting the following:

‘Subpart 4--Internet Safety’;

and

(8) by striking title II and inserting the following:

‘TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH-QUALITY TEACHERS AND PRINCIPALS

‘SEC. 2001. AUTHORIZATION OF APPROPRIATIONS.

‘(a) Grants to States and Local Educational Agencies- There are authorized to be appropriated to carry out this title $3,285,993,842 for each of fiscal years 2012 through 2016.

‘(b) National Activities- From amounts appropriated under subsection (a) for each fiscal year, the Secretary shall reserve not more than 5 percent to carry out activities authorized under subpart 4 of part A.

‘(c) Teacher Incentive Fund- From amounts appropriated under subsection (a) for each fiscal year that remain after making the reservation under subsection (b), the Secretary shall reserve not less than 20 percent to carry out activities authorized under part B.

‘PART A--TEACHER AND PRINCIPAL TRAINING AND RECRUITMENT FUND

‘SEC. 2101. PURPOSE.

‘The purpose of this part is to improve student academic achievement by improving teacher and principal quality and effectiveness and increasing the number of teachers and principals who are effective in improving student academic achievement in schools.

‘SEC. 2102. DEFINITIONS.

‘In this title:

‘(1) CORE ACADEMIC SUBJECTS- The term ‘core academic subjects’ means English, reading or language arts, writing, science, technology, engineering, mathematics, foreign languages, civics and government, economics, arts, history, and geography.

‘(2) STATE- The term ‘State’ means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.

‘Subpart 1--Grants to States

‘SEC. 2111. ALLOTMENTS TO STATES.

‘(a) In General- The Secretary shall make grants to States with applications approved under section 2112 to pay for the Federal share of the cost of carrying out the activities specified in section 2113. Each grant shall consist of the allotment determined for a State under subsection (b).

‘(b) Determination of Allotments-

‘(1) RESERVATION OF FUNDS- From the total amount appropriated under section 2001(a) for a fiscal year, the Secretary shall reserve--

‘(A) one-half of 1 percent for allotments for the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, to be distributed among those outlying areas on the basis of their relative need, as determined by the Secretary, in accordance with the purpose of this part; and

‘(B) one-half of 1 percent for the Secretary of the Interior for programs under this part in schools operated or funded by the Bureau of Indian Education.

‘(2) STATE ALLOTMENTS-

‘(A) IN GENERAL- Subject to subparagraph (B), from the amount appropriated under section 2001(a) for a fiscal year that remains after the Secretary makes the reservations under paragraph (1), the Secretary shall allot to each State with an approved application for such fiscal year the sum of--

‘(i) an amount that bears the same relationship to 20 percent of the remaining amount as the number of individuals age 5 through 17 in the State, as determined by the Secretary on the basis of the most recent satisfactory data, bears to the number of those individuals in all such States, as so determined; and

‘(ii) an amount that bears the same relationship to 80 percent of the remaining amount as the number of individuals age 5 through 17 from families with incomes below the poverty line, in the State, as determined by the Secretary on the basis of the most recent satisfactory data, bears to the number of those individuals in all such States, as so determined.

‘(B) EXCEPTION- No State receiving an allotment under clause (A) may receive less than one-half of 1 percent of the total remaining amount allotted under such subparagraph for a fiscal year.

‘SEC. 2112. STATE APPLICATIONS.

‘(a) In General- For a State to be eligible to receive a grant under this part, the State educational agency shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may reasonably require.

‘(b) Contents- Each application submitted under this section shall include the following:

‘(1) An assurance that the activities to be carried out by the State educational agency under this subpart will be based on a review of scientifically valid research and an explanation of why the activities are expected to improve student academic achievement.

‘(2) An assurance that the State educational agency will use funds under this part to improve the quality of the State’s teachers and principals.

‘(3) An assurance that the State educational agency will coordinate professional development activities authorized under this part with professional development activities provided under other Federal, State, and local programs.

‘(4) An assurance that the State educational agency will work in consultation with the entity responsible for teacher professional standards, certification, and licensing, to ensure that the State activities carried out under this subpart are carried out in conjunction with the entity responsible for such standards, certification, and licensing under State law.

‘(5) An assurance that the State educational agency will comply with section 9501 (regarding participation by private school children and teachers).

‘(6) A description of how the State educational agency will use funds received under this title for State-level activities described in section 2113(b).

‘(c) Deemed Approval- An application submitted by a State educational agency pursuant to subsection (a) shall be deemed to be approved by the Secretary unless the Secretary makes a written determination, prior to the expiration of the 120-day period beginning on the date on which the Secretary received the application, that the application fails to meet the requirements of this subpart.

‘(d) Disapproval- The Secretary shall not finally disapprove an application submitted under this section, except after giving the State educational agency notice and an opportunity for a hearing.

‘(e) Notification- If the Secretary finds that an application submitted under this section is not in compliance, in whole or in part, with this subpart, the Secretary shall--

‘(1) give the State educational agency notice and an opportunity for a hearing; and

‘(2) notify the State educational agency of the finding of noncompliance and, in such notification, shall--

‘(A) cite the specific provisions in the application that are not in compliance; and

‘(B) request additional information, only as to the noncompliant provisions, needed to make the application compliant.

‘(f) Response- If the State educational agency responds to the Secretary’s notification described in subsection (e)(2) during the 45-day period beginning on the date on which the agency received the notification, and resubmits the application with the requested information described in subsection (e)(2)(B), the Secretary shall approve or disapprove such application prior to the later of--

‘(1) the expiration of the 45-day period beginning on the date on which the application is resubmitted; or

‘(2) the expiration of the 120-day period described in subsection (c).

‘(g) Failure To Respond- If the State educational agency does not respond to the Secretary’s notification described in subsection (e)(2) during the 45-day period beginning on the date on which the agency received the notification, such application shall be deemed to be disapproved.

‘SEC. 2113. STATE USE OF FUNDS.

‘(a) In General- A State that receives a grant under section 2111 shall--

‘(1) reserve 98.5 percent of the funds made available through the grant to make subgrants to local educational agencies as described in subpart 2; and

‘(2) use the remainder of the funds for State activities described in subsection (b).

‘(b) State Activities- The State educational agency for a State that receives a grant under section 2111 shall use the funds described in subsection (a)(2) to carry out 1 or more of the following activities, which may be carried out through a grant or contract with a for-profit or nonprofit entity:

‘(1) Reforming teacher and principal certification or licensing requirements to ensure that--

‘(A) teachers have the necessary subject matter knowledge and teaching skills in the academic subjects that the teachers teach to help students meet challenging State standards;

‘(B) principals have the instructional leadership skills to help teachers teach and to help students meet challenging State standards; and

‘(C) teacher certification or licensing requirements are aligned with challenging State standards.

‘(2) Developing or improving teacher and principal evaluation systems that shall be based in significant part on evidence of student achievement.

‘(3) Carrying out programs that establish, expand, or improve alternative routes for State certification of teachers and principals, especially in the areas of mathematics and science, for highly qualified individuals with a bachelor’s or master’s degree, including mid-career professionals from other occupations, paraprofessionals, former military personnel, and recent college or university graduates with records of academic distinction who demonstrate the potential to become highly effective teachers or principals.

‘(4) Developing and implementing mechanisms to assist local educational agencies and schools in effectively recruiting and retaining teachers and principals who are effective in improving student academic achievement.

‘(5) Reforming tenure systems.

‘(6) Fulfilling the State educational agency’s responsibilities concerning proper and efficient administration and monitoring of the programs carried out under this part, including provision of technical assistance to local educational agencies.

‘(7) Developing, or assisting local educational agencies in developing, performance-based pay systems, and strategies that provide differential and bonus pay for teachers in high-need academic subjects and teachers or principals in high-poverty schools and districts.

‘(8) Developing, or assisting local educational agencies in developing, teacher advancement initiatives that promote professional growth and emphasize multiple career paths and pay differentiation.

‘(9) Providing assistance to local educational agencies for the development and implementation of professional development programs for principals that enable the principals to be effective school leaders and prepare all students to meet challenging State academic content and student academic achievement standards, and the development and support of school leadership academies to develop educational leaders.

‘(10) Other activities identified by the State that meet the purpose of this part.

‘(c) Supplement, Not Supplant- Funds received under this subpart shall be used to supplement, and not supplant, non-Federal funds that would otherwise be used for activities authorized under this subpart.

‘Subpart 2--Subgrants to Local Educational Agencies

‘SEC. 2121. ALLOCATIONS TO LOCAL EDUCATIONAL AGENCIES.

‘(a) In General- The Secretary may make a grant to a State under subpart 1 only if the State educational agency agrees to distribute the funds described in section 2113(a)(1) as subgrants to local educational agencies under this subpart.

‘(b) Allocation of Funds-

‘(1) IN GENERAL- A State educational agency that receives a grant under this part shall use the funds described in section 2113(a)(1) for a fiscal year to award subgrants to local educational agencies from allocations described in paragraph (2).

‘(2) ALLOCATION FORMULA- From the funds described in paragraph (1), the State educational agency shall allocate to each of the eligible local educational agencies in the State for a fiscal year the sum of--

‘(A) an amount that bears the same relationship to 20 percent of the funds for such fiscal year as the number of individuals age 5 through 17 in the geographic area served by the agency, as determined by the Secretary on the basis of the most recent satisfactory data, bears to the number of those individuals in the geographic areas served by all the local educational agencies in the State, as so determined; and

‘(B) an amount that bears the same relationship to 80 percent of the funds for such fiscal year as the number of individuals age 5 through 17 from families with incomes below the poverty line in the geographic area served by the agency, as determined by the Secretary on the basis of the most recent satisfactory data, bears to the number of those individuals in the geographic areas served by all the local educational agencies in the State, as so determined.

‘SEC. 2122. LOCAL APPLICATIONS AND NEEDS ASSESSMENT.

‘(a) In General- To be eligible to receive a subgrant under this subpart, a local educational agency shall submit an application to the State educational agency at such time, in such manner, and containing such information as the State educational agency may reasonably require.

‘(b) Needs Assessment-

‘(1) IN GENERAL- To be eligible to receive a subgrant under this subpart, a local educational agency shall conduct a comprehensive needs assessment, based on student academic achievement, identified by the local educational agency and school staff, including--

‘(A) increasing the number of teachers and principals who are effective in improving student academic achievement;

‘(B) ensuring that low-income and minority students are served by effective teachers and principals and have access to a high-quality instructional program in the core academic subjects;

‘(C) hiring, retention, and promotion;

‘(D) understanding and using data and assessments to improve student learning and classroom practice;

‘(E) improving student behavior in the classroom and school, including the identification of early and appropriate interventions; and

‘(F) teaching students who are English language learners and students with disabilities.

‘(2) CONSULTATION-

‘(A) IN GENERAL- In conducting a needs assessment as described in paragraph (1), a local educational agency shall--

‘(i) involve teachers, principals, pupil services personnel, parents, community-based organizations, and others with relevant and demonstrated expertise in programs and activities designed to meet the purpose of this part; and

‘(ii) take into account the activities that need to be conducted in order to give teachers and principals the skills to provide students with the opportunity to meet challenging State standards.

‘(B) CONTINUED CONSULTATION- A local educational agency shall consult with such individuals and organizations described in subparagraph (A) on an ongoing basis in order to--

‘(i) seek advice regarding how best to improve the local educational agency’s activities to meet the purpose of this part; and

‘(ii) coordinate the local educational agency’s activities under this part with other related strategies, programs, and activities being conducted in the community.

‘(c) Contents- Each application submitted under this section shall be based on the results of the needs assessment required under subsection (b) and shall include the following:

‘(1) A description of the results of the comprehensive needs assessment carried out under subsection (b).

‘(2) A description of the activities to be carried out by the local educational agency under this subpart and how these activities will be aligned with State standards and assessments.

‘(3) A description of how the activities will be based on a review of scientifically valid research and an explanation of why the activities are expected to improve student academic achievement.

‘(4) A description of how the activities will have a substantial, measurable, and positive impact on student academic achievement and how the activities will be used as part of a broader strategy to eliminate the achievement gap.

‘(5) A description of the program activities to be conducted in the schools served by the local educational agency.

‘(6) A description of the professional development activities that will be made available to teachers and principals to meet needs identified by the needs assessment described in subsection (b).

‘(7) A description of how the local educational agency will support efforts to train teachers and principals to effectively integrate technology into curricula and instruction.

‘(8) An assurance that the local educational agency will comply with section 9501 (regarding participation by private school children and teachers).

‘(9) An assurance that the local educational agency will target funds to schools served by the agency that are identified under section 1114(a)(1)(B) and have the highest percentage or number of children counted under section 1124(c).

‘(10) An assurance that the local educational agency will coordinate professional development activities authorized under this subpart with professional development activities provided through other Federal, State, and local programs.

‘SEC. 2123. LOCAL USE OF FUNDS.

‘(a) In General- A local educational agency that receives a subgrant under section 2121 shall use the funds made available through the subgrant to carry out 1 or more of the following activities, which may be carried out through a grant or contract with a for-profit or nonprofit entity:

‘(1) Meeting the needs identified in the needs assessment described in 2122(b).

‘(2) Developing or improving a rigorous, transparent, and fair evaluation system for teachers and principals that shall be based in significant part on evidence of student achievement.

‘(3) Developing and implementing initiatives to assist in recruiting, hiring, and retaining effective teachers and principals, particularly in high-poverty schools with high percentages of ineffective teachers and high percentages of students who do not meet State-determined proficient levels of achievement in the core academic subjects, including initiatives that provide--

‘(A) differential, incentive, or bonus pay for teachers in high-need academic subject areas and specialty areas;

‘(B) performance-based pay systems for teachers and principals;

‘(C) teacher advancement, professional growth, and emphasis on multiple career paths and pay differentiation; and

‘(D) new teacher and principal induction and mentoring programs that are designed to improve instruction, student learning and achievement, and to increase teacher and principal retention.

‘(4) Recruiting qualified individuals from other fields, including mid-career professionals from other occupations, former military personnel, and recent graduates of an institution of higher education with a record of academic distinction who demonstrate potential to become effective teachers or principals.

‘(5) Establishing, improving, or expanding model instructional programs in the core academic subjects to ensure that all children receive a well-rounded and complete education.

‘(6) Providing high-quality professional development for teachers and principals focused on improving teaching and student learning and achievement in the core academic subjects, including supporting efforts to train teachers and principals to effectively integrate technology into curricula and instruction.

‘(7) Developing programs and activities that increase the ability of teachers to effectively teach students with disabilities, including students with significant cognitive disabilities, which may include the use of response to intervention and positive behavioral intervention and supports, and students who are English language learners so that such students can meet State academic content and student academic achievement standards.

‘(8) Providing students with increased access to up-to-date school library materials, a well-equipped, technologically advanced school library media center, and well-trained professionally certified school library media specialists.

‘(9) Providing programs and activities to help students prepare for postsecondary level coursework in the core academic subjects, including early college or dual enrollment programs, Advanced Placement and International Baccalaureate programs, and other advanced learning programs, including programs to meet the educational needs of gifted and talented students.

‘(10) Providing programs that support extended learning opportunities in the core academic subjects, including before and after school programs, summer school programs, and programs that extend the school day, week, or school-year calendar.

‘(11) Carrying out other activities identified by the local educational agencies that meet the purpose of this part.

‘(b) Administrative Costs- A local educational agency that receives a subgrant under section 2121 may use not more than 2 percent of the subgrant funds for the direct administrative costs of carrying out its responsibilities under this subpart.

‘(c) Supplement, Not Supplant- Funds received under this subpart shall be used to supplement, and not supplant, non-Federal funds that would otherwise be used for activities authorized under this subpart.

‘Subpart 3--Accountability

‘SEC. 2141. REPORTING.

‘(a) In General- Each State educational agency receiving funds under this part shall submit to the Secretary a report that provides--

‘(1) the number of teachers and principals in the State who are licensed and certified;

‘(2) the number of teachers in the State who are licensed and certified to teach in their field of study;

‘(3) the number of teachers and principals in the State who have received emergency licensure;

‘(4) the passage rate of teacher and principal licensure examinations; and

‘(5) if applicable, results of teacher and principal evaluation systems.

‘(b) Local Educational Agency Report- Each local educational agency receiving funds under this subpart shall submit to the State educational agency such information that the State requires, which shall include the information listed in subsection (a).

‘(c) Availability- The reports and information provided under subsections (a) and (b) shall be made readily available to the public.

‘Subpart 4--National Activities

‘SEC. 2151. NATIONAL ACTIVITIES OF DEMONSTRATED EFFECTIVENESS.

‘(a) Technical Assistance and National Evaluation- From the funds reserved by the Secretary under section 2001(b) to carry out this subpart, the Secretary may reserve not more than 20 percent to carry out directly or through grants and contracts--

‘(1) technical assistance to States and local educational agencies carrying out activities under this part; and

‘(2) national evaluations of activities carried out by States and local educational agencies under this part.

‘(b) Programs of National Significance- From the funds reserved by the Secretary under section 2001(b), the Secretary shall award grants, on a competitive basis, to national nonprofit organizations with a demonstrated record of meeting the purpose of this part for teacher or principal preparation and professional development activities and programs.

‘(c) Cost-Sharing-

‘(1) IN GENERAL- A national nonprofit organization that receives a grant under this section, shall provide, from non-Federal sources, not less than 50 percent of the funds for the total cost for each year of activities carried out under this section.

‘(2) ACCEPTABLE CONTRIBUTIONS- A national nonprofit organization that receives a grant under this section may meet the requirement of paragraph (1) by providing contributions in cash or in kind, fairly evaluated, including plant, equipment, and services.

‘(3) WAIVERS- The Secretary may waive or modify the requirement of paragraph (1) in cases of demonstrated financial hardship.

‘SEC. 2152. PROHIBITION AGAINST FEDERAL MANDATES, DIRECTION, OR CONTROL.

‘Nothing in this part shall be construed to authorize the Secretary or any other officer or employee of the Federal Government to mandate, direct, control, or exercise any direction or supervision over a State, local educational agency, or school’s instructional content or materials, curriculum, program of instruction, academic content and student academic achievement standards, or academic assessments.

‘PART B--TEACHER INCENTIVE FUND

‘SEC. 2201. PURPOSES; DEFINITIONS.

‘(a) Purposes- The purposes of this part are--

‘(1) to assist States, local educational agencies, and nonprofit organizations to develop, implement, improve, or expand comprehensive performance-based compensation systems for teachers and principals, especially for teachers and principals in high-need schools, who raise student academic achievement and close the achievement gap; and

‘(2) to study and review performance-based compensation systems for teachers and principals to evaluate the effectiveness, fairness, quality, consistency, and reliability of the systems.

‘(b) Definitions- In this part:

‘(1) ELIGIBLE ENTITY- The term ‘eligible entity’ means--

‘(A) a local educational agency or a consortium of local educational agencies, including a charter school that is a local educational agency;

‘(B) a State educational agency, or other State agency designated by the chief executive of a State to participate under this part; or

‘(C) a partnership consisting of--

‘(i) one or more agencies described in subparagraph (A) or (B); and

‘(ii) at least 1 nonprofit or for-profit organization.

‘(2) HIGH-NEED LOCAL EDUCATIONAL AGENCY- The term ‘high-need local educational agency’ means a local educational agency--

‘(A)(i) that serves not fewer than 10,000 children from families with incomes below the poverty line; or

‘(ii) for which not less than 20 percent of the children served by the agency are from families with incomes below the poverty line; and

‘(B)(i) for which there is a high percentage of teachers not teaching in the academic subjects or grade levels that the teachers were trained to teach; or

‘(ii) for which there is a high percentage of teachers with emergency, provisional, or temporary certification or licensing.

‘(3) HIGH-NEED SCHOOL- The term ‘high-need school’ means a school that--

‘(A) is located in an area in which the percentage of students from families with incomes below the poverty line is 30 percent or more; or

‘(B)(i) has a high percentage of out-of-field teachers;

‘(ii) is within the top quartile of elementary schools and secondary schools statewide, as ranked by the number of unfilled, available teaching positions at the schools;

‘(iii) has a high teacher turnover rate; or

‘(iv) has a high percentage of teachers who are not certified or licensed.

‘(4) PERFORMANCE-BASED COMPENSATION SYSTEM- The term ‘performance-based compensation system’ means a system of compensation for teachers and principals that--

‘(A) differentiates levels of compensation primarily on the basis of measurable increases in student academic achievement; and

‘(B) may include--

‘(i) differentiated levels of compensation on the basis of effective teachers’ and principals’ employment and success in hard-to-staff schools or high-need subject areas; and

‘(ii) recognition of the skills and knowledge of teachers and principals as demonstrated through--

‘(I) successful fulfillment of additional responsibilities or job functions; and

‘(II) evidence of high achievement and mastery of content knowledge and superior teaching skills.

‘SEC. 2202. TEACHER INCENTIVE FUND GRANTS.

‘(a) In General- From the amounts appropriated to carry out this part, the Secretary is authorized to award grants, on a competitive basis, to eligible entities to enable the eligible agencies to develop, implement, improve, or expand a performance-based compensation system in a school served by a project under this part.

‘(b) Priority- In awarding a grant under this part, the Secretary shall give priority to an eligible entity that concentrates the activities proposed to be assisted under the grant on teachers and principals serving in high-need schools.

‘(c) Applications- To be eligible to receive a grant under this part, an eligible entity shall submit an application to the Secretary, at such time and in such manner as the Secretary may reasonably require. The application shall include--

‘(1) a description of the performance-based compensation system that the eligible entity proposes to develop, implement, improve, or expand;

‘(2) a description and evidence of the support and commitment, from teachers and principals in the school to be served by the project, the community, and the local educational agency, for the performance-based compensation system, including a demonstration of consultation with teachers and principals on the development and implementation of the performance-based compensation system;

‘(3) a description of how the eligible entity will develop and implement a fair, rigorous, and objective process to evaluate teacher, principal, and student performance under the project, including the baseline performance against which evaluations of improved performance will be made;

‘(4) a description of the local educational agency or school to be served by the project, including such student academic achievement, demographic, and socioeconomic information as the Secretary may request;

‘(5) a description of the quality of teachers and principals in the local educational agency and the schools to be served by the project and how the project will increase the quality of teachers and principals in a high-need school;

‘(6) a description of how the eligible entity will use grant funds under this part in each year of the grant;

‘(7) a description of how the eligible entity will continue the performance-based compensation system assisted under the grant after the grant ends;

‘(8) a description, if applicable, of how the eligible entity will define effective for the purposes of section 2201(b)(4)(B)(i), through the use of measurable indicators, that are based in significant part on measures of student academic achievement; and

‘(9) a description of the State, local, or other public or private funds that will be used to supplement the grant and sustain the activities assisted under the grant at the end of the grant period.

‘(d) Use of Funds-

‘(1) IN GENERAL- An eligible entity that receives a grant under this part shall use the grant funds to develop, implement, improve, or expand, in collaboration with teachers, principals, other school administrators, and members of the public, a performance-based compensation system consistent with this part.

‘(2) AUTHORIZED ACTIVITIES- Grant funds under this part may be used for the following:

‘(A) Developing appraisal systems that reflect clear and fair measures of teacher and principal performance based on demonstrated improvements in student academic achievement.

‘(B) Conducting outreach within a local educational agency or a State to gain input on how to construct the appraisal system and to develop support for the appraisal system.

‘(C) Paying, as part of a comprehensive performance-based compensation system, bonuses and increased salaries, if the eligible entity uses an increasing share of non-Federal funds to pay the bonuses and increased salaries each year of the grant, to--

‘(i) teachers and principals who raise student academic achievement;

‘(ii) teachers who--

‘(I) raise student academic achievement; and

‘(II)(aa) teach in high-need schools; or

‘(bb) teach subjects that are difficult to staff; or

‘(iii) principals who raise student academic achievement in the school and serve in high-need schools.

‘(e) Duration of Grants-

‘(1) IN GENERAL- The Secretary may award a grant under this part for a period of not more than 5 years.

‘(2) LIMITATION- A local educational agency may receive (whether individually or as part of a consortium or partnership) a grant under this part only once.

‘(f) Equitable Distribution- To the extent practicable, the Secretary shall ensure an equitable geographic distribution of grants under this part.

‘(g) Matching Requirement- Each eligible entity that receives a grant under this part shall provide, from non-Federal sources, an amount equal to 50 percent of the amount of the grant (which may be provided in cash or in-kind) to carry out the activities supported by the grant.

‘(h) Supplement, Not Supplement- Grant funds provided under this part shall be used to supplement, not supplant, other Federal or State funds available to carry out activities described in this part.

‘SEC. 2203. REPORTS AND EVALUATIONS.

‘(a) Activities Summary- Each eligible entity receiving a grant under this part shall provide to the Secretary a summary of the activities assisted under the grant.

‘(b) Report- The Secretary shall provide to Congress an annual report on the implementation of the program assisted under this part, including--

‘(1) information on eligible entities that received grant funds under this part, including--

‘(A) information provided by eligible entities to the Secretary in the applications submitted under section 2202(c);

‘(B) the summaries received under subsection (a); and

‘(C) grant award amounts;

‘(2) student academic achievement data; and

‘(3) such other information as the Secretary may include.

‘(c) Evaluation-

‘(1) IN GENERAL- The Secretary shall, through a grant or contract, carry out an independent evaluation to measure the effectiveness of the program assisted under this part.

‘(2) CONTENTS- The evaluation under paragraph (1) shall measure--

‘(A) the effectiveness of the program in improving student academic achievement;

‘(B) the satisfaction of the participating teachers or principals; and

‘(C) the extent to which the program assisted the eligible entities in recruiting and retaining high-quality teachers and principals, especially in hard-to-staff subject areas.

‘SEC. 2204. RESERVATION OF FUNDS.

‘Of the total amount reserved under section 2001(c) for this part for a fiscal year, the Secretary may reserve for such fiscal year not more than 1 percent for the cost of the evaluation under section 2203(c) and for technical assistance in carrying out this part.’.

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