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SEC. 1203. STATE FORMULA GRANT APPLICATIONS.

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(a) APPLICATIONS-

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(1) IN GENERAL- A State educational agency that desires to receive a grant under section 1202 shall submit an application to the Secretary at such time and in such form as the Secretary may require. The application shall contain the information described in subsection (b).

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(2) SPECIAL APPLICATION PROVISIONS- For those State educational agencies that have received a grant under part C of title II (as such part was in effect on the day before the date of enactment of the No Child Left Behind Act of 2001), the Secretary shall establish a modified set of requirements for an application under this section that takes into account the information already submitted and approved under that program and minimizes the duplication of effort on the part of such State educational agencies.

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(b) CONTENTS- An application under this section shall contain the following:

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(1) An assurance that the Governor of the State, in consultation with the State educational agency, has established a reading and literacy partnership described in subsection (d), and a description of how such partnership —

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(A) coordinated the development of the application; and

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(B) will assist in the oversight and evaluation of the State educational agencys activities under this subpart.

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(2) A description, if applicable, of the States strategy to expand, continue, or modify activities authorized under part C of title II (as such part was in effect on the day before the date of enactment of the No Child Left Behind Act of 2001).

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(3) An assurance that the State educational agency, and any local educational agencies receiving a subgrant from that State educational agency under section 1202, will, if requested, participate in the external evaluation under section 1205.

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(4) A State educational agency plan containing a description of the following:

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(A) How the State educational agency will assist local educational agencies in identifying screening, diagnostic, and classroom-based instructional reading assessments.

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(B) How the State educational agency will assist local educational agencies in identifying instructional materials, programs, strategies, and approaches, based on scientifically based reading research, including early intervention and reading remediation materials, programs, and approaches.

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(C) How the State educational agency will ensure that professional development activities related to reading instruction and provided under section 1202 are —

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(i) coordinated with other Federal, State, and local level funds, and used effectively to improve instructional practices for reading; and

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(ii) based on scientifically based reading research.

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(D) How the activities assisted under section 1202 will address the needs of teachers and other instructional staff in implementing the essential components of reading instruction.

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(E) How subgrants made by the State educational agency under section 1202 will meet the requirements of section 1202, including how the State educational agency will ensure that eligible local educational agencies receiving subgrants under section 1202 will use practices based on scientifically based reading research.

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(F) How the State educational agency will, to the extent practicable, make grants to eligible local educational agencies in both rural and urban areas.

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(G) How the State educational agency will build on, and promote coordination among literacy programs in the State (including federally funded programs such as programs under the Adult Education and Family Literacy Act, the Individuals with Disabilities Education Act, and subpart 2), to increase the effectiveness of the programs in improving reading for adults and children and to avoid duplication of the efforts of the program.

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(H) How the State educational agency will assess and evaluate, on a regular basis, eligible local educational agency activities assisted under section 1202, with respect to whether the activities have been effective in achieving the purposes of section 1202.

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(I) Any other information that the Secretary may reasonably require.

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(c) APPROVAL OF APPLICATIONS-

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(1) IN GENERAL- The Secretary shall approve an application of a State educational agency under this section only if such application meets the requirements of this section.

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(2) PEER REVIEW-

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(A) IN GENERAL- The Secretary, in consultation with the National Institute for Literacy, shall convene a panel to evaluate applications under this section. At a minimum, the panel shall include —

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(i) three individuals selected by the Secretary;

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(ii) three individuals selected by the National Institute for Literacy;

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(iii) three individuals selected by the National Research Council of the National Academy of Sciences; and

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(iv) three individuals selected by the National Institute of Child Health and Human Development.

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(B) EXPERTS- The panel shall include —

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(i) experts who are competent, by virtue of their training, expertise, or experience, to evaluate applications under this section;

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(ii) experts who provide professional development to individuals who teach reading to children and adults based on scientifically based reading research;

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(iii) experts who provide professional development to other instructional staff based on scientifically based reading research; and

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(iv) an individual who has expertise in screening, diagnostic, and classroom-based instructional reading assessments.

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(C) RECOMMENDATIONS- The panel shall recommend grant applications from State educational agencies under this section to the Secretary for funding or for disapproval.

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(d) READING AND LITERACY PARTNERSHIPS-

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(1) IN GENERAL- For a State educational agency to receive a grant under section 1202, the Governor of the State, in consultation with the State educational agency, shall establish a reading and literacy partnership.

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(2) REQUIRED PARTICIPANTS- The reading and literacy partnership shall include the following participants:

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(A) The Governor of the State.

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(B) The chief State school officer.

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(C) The chairman and the ranking member of each committee of the State legislature that is responsible for education policy.

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(D) A representative, selected jointly by the Governor and the chief State school officer, of at least one eligible local educational agency.

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(E) A representative, selected jointly by the Governor and the chief State school officer, of a community-based organization working with children to improve their reading skills, particularly a community-based organization using tutors and scientifically based reading research.

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(F) State directors of appropriate Federal or State programs with a strong reading component, selected jointly by the Governor and the chief State school officer.

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(G) A parent of a public or private school student or a parent who educates the parents child in the parents home, selected jointly by the Governor and the chief State school officer.

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(H) A teacher, who may be a special education teacher, who successfully teaches reading, and another instructional staff member, selected jointly by the Governor and the chief State school officer.

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(I) A family literacy service provider selected jointly by the Governor and the chief State school officer.

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(3) OPTIONAL PARTICIPANTS- The reading and literacy partnership may include additional participants, who shall be selected jointly by the Governor and the chief State school officer, and who may include a representative of —

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(A) an institution of higher education operating a program of teacher preparation in the State that is based on scientifically based reading research;

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(B) a local educational agency;

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(C) a private nonprofit or for-profit eligible professional development provider providing instruction based on scientifically based reading research;

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(D) an adult education provider;

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(E) a volunteer organization that is involved in reading programs; or

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(F) a school library or a public library that offers reading or literacy programs for children or families.

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(4) PREEXISTING PARTNERSHIP- If, before the date of enactment of the No Child Left Behind Act of 2001, a State educational agency established a consortium, partnership, or any other similar body that was considered a reading and literacy partnership for purposes of part C of title II of this Act (as such part was in effect on the day before the date of enactment of No Child Left Behind Act of 2001), that consortium, partnership, or body may be considered a reading and literacy partnership for purposes of this subsection consistent with the provisions of this subpart.