text: 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.
target: 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.
feat_title: A bill to provide for a teacher quality enhancement and incentive program.