(e) PLAN APPROVAL.

(1) IN GENERAL.-The Secretary shall approve a State plan, or a revision to an approved State plan, unless the Secretary determines that

(A) the State plan, or revision, respectively, does not meet the requirements of this section; or

(B) the State's levels of performance on the core indicators of performance consistent with section 113 are not sufficiently rigorous to meet the purpose of this Act.

(2) DISAPPROVAL.-The Secretary shall not finally disapprove a State plan, except after giving the eligible agency notice and an opportunity for a hearing.

(3) CONSULTATION.-The eligible agency shall develop the portion of each State plan relating to the amount and uses of any funds proposed to be reserved for adult vocational and technical education, postsecondary vocational and technical education, tech-prep education, and secondary vocational and technical education after consultation with the State agency responsible for supervision of community colleges, technical institutes, or other 2-year postsecondary institutions primarily engaged in providing postsecondary vocational and technical education, and the State agency responsible for secondary education. If a State agency finds that a portion of the final State plan is objectionable, the State agency shall file such objections with the eligible agency. The eligible agency shall respond to any objections of the State agency in the State plan submitted to the Secretary.

(4) TIMEFRAME.-A State plan shall be deemed approved by the Secretary if the Secretary has not responded to the eligible agency regarding the State plan within 90 days of the date the Secretary receives the State plan.

(f) TRANSITION.-This section shall be subject to section 4 for fiscal year 1999 only, with respect to activities under this section. (20 U.S.C. 2342)

SEC. 123. IMPROVEMENT PLANS.

(a) STATE PROGRAM IMPROVEMENT PLAN.-If a State fails to meet the State adjusted levels of performance described in the report submitted under section 113(c), the eligible agency shall develop and implement a program improvement plan in consultation with appropriate agencies, individuals, and organizations for the first program year succeeding the program year in which the eligible agency failed to meet the State adjusted levels of performance, in order to avoid a sanction under subsection (d).

(b) LOCAL EVALUATION.-Each eligible agency shall evaluate annually, using the State adjusted levels of performance, the vocational and technical education activities of each eligible recipient receiving funds under this title.

(c) LOCAL IMPROVEMENT PLAN.—

(1) IN GENERAL.-If, after reviewing the evaluation, the eligible agency determines that an eligible recipient is not making substantial progress in achieving the State adjusted levels of performance, the eligible agency shall

(A) conduct an assessment of the educational needs that the eligible recipient shall address to overcome local performance deficiencies;

(B) enter into an improvement plan based on the results of the assessment, which plan shall include instructional and other programmatic innovations of demonstrated effectiveness, and where necessary, strategies for appropriate staffing and staff development; and

(C) conduct regular evaluations of the progress being made toward reaching the State adjusted levels of performance.

(2) CONSULTATION.-The eligible agency shall conduct the activities described in paragraph (1) in consultation with teachers, parents, other school staff, appropriate agencies, and other appropriate individuals and organizations.

(d) SANCTIONS.

(1) TECHNICAL ASSISTANCE.-If the Secretary determines that an eligible agency is not properly implementing the eligible agency's responsibilities under section 122, or is not making substantial progress in meeting the purpose of this Act, based on the State adjusted levels of performance, the Secretary shall work with the eligible agency to implement improvement activities consistent with the requirements of this Act.

(2) FAILURE.—If an eligible agency fails to meet the State adjusted levels of performance, has not implemented an improvement plan as described in paragraph (1), has shown no improvement within 1 year after implementing an improvement plan as described in paragraph (1), or has failed to meet the State adjusted levels of performance for 2 or more consecutive years, the Secretary may, after notice and opportunity for a hearing, withhold from the eligible agency all, or a portion of, the eligible agency's allotment under this title. The Secretary may waive the sanction under this paragraph due to exceptional or uncontrollable circumstances such as a natural disaster or a precipitous and unforeseen decline in the financial resources of the State.

(3) FUNDS RESULTING FROM REDUCED ALLOTMENTS.

(A) IN GENERAL.-The Secretary shall use funds withheld under paragraph (2), for a State served by an eligible agency, to provide (through alternative arrangements) services and activities within the State to meet the purpose of this Act.

(B) REDISTRIBUTION.-If the Secretary cannot satisfactorily use funds withheld under paragraph (2), then the amount of funds retained by the Secretary as a result of a reduction in an allotment made under paragraph (2) shall be redistributed to other eligible agencies in accordance with section 111.

(20 U.S.C. 2343)

SEC. 124. STATE LEADERSHIP ACTIVITIES.

(a) GENERAL AUTHORITY.-From amounts reserved under section 112(a)(2), each eligible agency shall conduct State leadership activities.

(b) REQUIRED USES OF FUNDS.-The State leadership activities described in subsection (a) shall include

(1) an assessment of the vocational and technical education programs carried out with funds under this title that includes an assessment of how the needs of special populations are being met and how such programs are designed to enable special populations to meet State adjusted levels of performance and prepare the special populations for further learning or for high skill, high wage careers;

(2) developing, improving, or expanding the use of technology in vocational and technical education that may include

(A) training of vocational and technical education personnel to use state-of-the-art technology, that may include distance learning;

(B) providing vocational and technical education students with the academic, and vocational and technical skills that lead to entry into the high technology and telecommunications field; or

(C) encouraging schools to work with high technology industries to offer voluntary internships and mentoring programs;

(3) professional development programs, including providing comprehensive professional development (including initial teacher preparation) for vocational and technical, academic, guidance, and administrative personnel, that—

(A) will provide inservice and preservice training in state-of-the-art vocational and technical education programs and techniques, effective teaching skills based on research, and effective practices to improve parental and community involvement; and

(B) will help teachers and personnel to assist students in meeting the State adjusted levels of performance established under section 113;

(C) will support education programs for teachers of vocational and technical education in public schools and other public school personnel who are involved in the direct delivery of educational services to vocational and technical education students to ensure that such teachers stay current with the needs, expectations, and methods of industry; and

(D) is integrated with the professional development activities that the State carries out under title II of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6001 et seq.) and title II of the Higher Education Act of 1965;

(4) support for vocational and technical education programs that improve the academic, and vocational and technical skills of students participating in vocational and technical education programs by strengthening the academic, and vocational and technical components of such vocational and technical education programs through the integration of academics with vocational and technical education to ensure learning in the core academic, and vocational and technical subjects;

(5) providing preparation for nontraditional training and employment;

(6) supporting partnerships among local educational agencies, institutions of higher education, adult education providers, and, as appropriate, other entities, such as employers, labor organizations, parents, and local partnerships, to enable students to achieve State academic standards, and vocational and technical skills;

(7) serving individuals in State institutions, such as State correctional institutions and institutions that serve individuals with disabilities; and

(8) support for programs for special populations that lead to high skill, high wage careers.

(c) PERMISSIBLE USES OF FUNDS.-The leadership activities described in subsection (a) may include

(1) technical assistance for eligible recipients;

(2) improvement of career guidance and academic counseling programs that assist students in making informed academic, and vocational and technical education decisions;

(3) establishment of agreements between secondary and postsecondary vocational and technical education programs in order to provide postsecondary education and training opportunities for students participating in such vocational and technical education programs, such as tech-prep programs;

(4) support for cooperative education;

(5) support for vocational and technical student organizations, especially with respect to efforts to increase the participation of students who are members of special populations;

(6) support for public charter schools operating secondary vocational and technical education programs;

(7) support for vocational and technical education programs that offer experience in, and understanding of, all aspects of an industry for which students are preparing to enter; (8) support for family and consumer sciences programs; (9) support for education and business partnerships;

(10) support to improve or develop new vocational and technical education courses;

(11) providing vocational and technical education programs for adults and school dropouts to complete their secondary school education; and

(12) providing assistance to students, who have participated in services and activities under this title, in finding an appropriate job and continuing their education.

(d) RESTRICTION ON USES OF FUNDS.-An eligible agency that receives funds under section 112(a)(2) may not use any of such funds for administrative costs.

(20 U.S.C. 2344)

PART C-LOCAL PROVISIONS

SEC. 131. DISTRIBUTION OF FUNDS TO SECONDARY SCHOOL PROGRAMS.

(a) DISTRIBUTION FOR FISCAL YEAR 1999.-Except as provided in section 133 and as otherwise provided in this section, each eligible agency shall distribute the portion of the funds made available

under section 112(a)(1) to carry out this section for fiscal year 1999 to local educational agencies within the State as follows:

(1) SEVENTY PERCENT.-From 70 percent of such portion, each local educational agency shall be allocated an amount that bears the same relationship to such 70 percent as the amount such local educational agency was allocated under section 1124 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333) for the preceding fiscal year bears to the total amount received under such section by all local educational agencies in the State for such preceding fiscal year.

(2) TWENTY PERCENT.-From 20 percent of such portion, each local educational agency shall be allocated an amount that bears the same relationship to such 20 percent as the number of students with disabilities who have individualized education programs under section 614(d) of the Individuals with Disabilities Education Act (20 U.S.C. 1414(d)) served by such local educational agency for the preceding fiscal year bears to the total number of such students served by all local educational agencies in the State for such preceding fiscal year.

(3) TEN PERCENT.-From 10 percent of such portion, each local educational agency shall be allocated an amount that bears the same relationship to such 10 percent as the number of students enrolled in schools and adults enrolled in training programs under the jurisdiction of such local educational agency for the preceding fiscal year bears to the number of students enrolled in schools and adults enrolled in training programs under the jurisdiction of all local educational agencies in the State for such preceding fiscal year.

(b) SPECIAL DISTRIBUTION RULES FOR SUCCEEDING FISCAL YEARS.-Except as provided in section 133 and as otherwise provided in this section, each eligible agency shall distribute the portion of funds made available under section 112(a)(1) to carry out this section for fiscal year 2000 and succeeding fiscal years to local educational agencies within the State as follows:

(1) 30 PERCENT.-30 percent shall be allocated to such local educational agencies in proportion to the number of individuals aged 15 through 19, inclusive, who reside in the school district served by such local educational agency for the preceding fiscal year compared to the total number of such individuals who reside in the school districts served by all local educational agencies in the State for such preceding fiscal year.

(2) 70 PERCENT.-70 percent shall be allocated to such local educational agencies in proportion to the number of individuals aged 15 through 19, inclusive, who reside in the school district served by such local educational agency from families with incomes below the poverty line (as defined by the Office of Management and Budget and revised annually in accordance with section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2))) applicable to a family of the size involved for the fiscal year for which the determination is made compared to the number of such individuals who reside in the school districts served by all the local educational agencies in the State for such preceding fiscal year.

(c) WAIVER FOR MORE EQUITABLE DISTRIBUTION.-The Secretary may waive the application of subsection (b) in the case of