article: SECTION 1. PURPOSE. The purpose of this Act is-- (1) to encourage the best and brightest candidates to teach in public elementary and secondary schools serving disadvantaged populations; and (2) to encourage high achieving candidates to enter the teaching profession who would otherwise not consider a career in teaching. SEC. 2. GRANTS AUTHORIZED. (a) In General.--The Secretary is authorized to award grants to at least 50 local educational agencies for a fiscal year to enable the local educational agencies to award bonuses to highly qualified individuals who agree to teach in elementary schools or secondary schools that are served by the local educational agency and located in high poverty areas, for a period of not less than 4 years. (b) Local Educational Agency Eligibility.--A local educational agency shall be eligible for a grant under this Act if-- (1) not less than 20 percent of children in the schools served by the local educational agency are eligible to be counted under section 1124(c) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333(c)); or (2) the local educational agency is eligible to be counted under section 10952 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8272). (c) Requirement.--The Secretary shall award a grant under subsection (a) to at least 1 eligible local educational agency in each State. (d) Amount.--Grants under this section shall be awarded based on the number of students enrolled in schools under the jurisdiction of the local educational agency involved. With respect to a local educational agency with an enrollment of-- (1) 1,500 or fewer students, the amount of a grant shall be $22,500; (2) at least 1,501 but less than 5,001 students, the amount of a grant shall be $112,500; (3) at least 5,001 but less than 15,001 students, the amount of a grant shall be $150,000; and (4) at least 15,001 students, the amount of a grant shall be $300,000. (e) Bonuses Not Taxed.--For purposes of the Internal Revenue Code of 1986, a bonus awarded under this Act shall not be includable in the gross income of the individual awarded the bonus. (f) Collaboration.--The Secretary shall collaborate with local educational agencies, local boards of education, and local offices of student financial assistance in carrying out the program assisted under this section. (g) Definition.--The definitions in section 14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801) shall apply to this Act. SEC. 3. LOCAL REQUIREMENTS. (a) Local Uses.--Each local educational agency receiving a grant under this Act shall use the funds made available under this Act to-- (1) award bonuses to highly qualified individuals who agree to teach in elementary schools or secondary schools in which at least 40 percent of the children are eligible to be counted under section 1124(c) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333(c)); (2) award the bonuses in accordance with subsection (b) on a competitive basis taking into consideration-- (A) objective measures such as test scores, grade point average or class rank, and such other criteria as the local educational agency may determine appropriate; and (B) recommendations received under subsection (c); and (3) award the bonuses in the amount of $15,000 with $7,500 paid after the first year of such teaching and $7,500 paid after the second year of such teaching. (b) Bonuses.--With respect to bonuses under subsection (a)(2), the local educational agency shall, with respect to a local educational agency with an enrollment of-- (1) 1,500 or fewer students, award bonuses to not more than 3 highly qualified individuals in the fiscal year involved; (2) at least 1,501 but less than 5,001 students, award bonuses to not more than 15 highly qualified individuals; (3) at least 5,001 but less than 15,001 students, award bonuses to not more than 20 highly qualified individuals; and (4) at least 15,001 students, award bonuses to not more than 40 highly qualified individuals. (c) Prohibition.--Each local educational agency receiving a grant under this Act shall not use the grant funds to offset the salary of a teacher awarded a bonus under this Act. (d) Recommendations.--Each local educational agency receiving a grant under this Act shall establish a system for receiving a limited number of recommendations from institutions of higher education for individuals to receive bonus awards under this Act. SEC. 4. ELIGIBILITY. To be eligible to receive a bonus award under this Act an individual-- (1) shall enter into an agreement with the local educational agency to work in a school described in section 3(a)(1) for not less than 4 years or repay the bonus in accordance with section 6; (2) shall pass all State certification examinations required to teach in an elementary school or secondary school in the State; (3) shall have graduated with a 3.5 grade point average from an institution of higher education, or have graduated in the top 15 percent of the individual's graduating class at an institution of higher education, with a bachelor's degree; (4) shall submit an application to the local educational agency in accordance with section 5(a). SEC. 5. APPLICATIONS; NOTIFICATION. (a) Application.--Each individual desiring a bonus award under this Act shall submit an application to a local educational agency not later than January 15 of each year containing such information as the local educational agency may require. (b) Notification.--A local educational agency shall notify individuals of their bonus awards by May 1 of each year. SEC. 6. REPAYMENT. Each individual who receives a bonus award under this Act and does not comply with the terms of the agreement described in section 4(1) within 6 years of receiving the first bonus award payment under this Act, without an excuse that is acceptable to the local educational agency, shall repay to the local educational agency the amount of the bonus awards received plus interest. Repayment shall begin not later than 2 years after the local educational agency determines the individual is in noncompliance with the agreement. SEC. 7. AUTHORIZATION OF APPROPRIATIONS. There is authorized to be appropriated to carry out this Act $15,000,000 for each of the fiscal years 2000 through 2004.
summary: Authorizes the Secretary of Education to make grants to local educational agencies (LEAs) to award nontaxable bonuses to highly qualified individuals who agree to teach in elementary schools or secondary schools that are served by the LEA and located in high poverty areas. Requires such grants to be made to at least 50 LEAs per fiscal year, and to at least one eligible LEA in each State, for a period of not less than four years. Sets forth requirements relating to: (1) LEA, school, and individual eligibility; (2) grant and bonus amounts; (3) a competitive award process based on objective measures and recommendations from higher education institutions; and (4) service obligations or award repayment. Authorizes appropriations.