 
             CHAPTER 44--VOCATIONAL AND TECHNICAL EDUCATION
 
   SUBCHAPTER I--VOCATIONAL AND TECHNICAL EDUCATION ASSISTANCE TO THE 
                                 STATES
 
                        Part B--State Provisions
 
Sec. 2343. 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 2323(c) of this title, 
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) of this 
section.

(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 
subchapter.

(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 2342 of this title, or is not making substantial progress in 
    meeting the purpose of this chapter, 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 chapter.

                             (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 subchapter. 
    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 chapter.

        (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 2321 of this title.

(Pub. L. 88-210, title I, Sec. 123, as added Pub. L. 105-332, Sec. 1(b), 
Oct. 31, 1998, 112 Stat. 3106.)


                            Prior Provisions

    Provisions similar to this section were contained in section 2327 of 
this title, prior to the general amendment of this chapter by Pub. L. 
105-332.
    A prior section 2343, Pub. L. 88-210, title II, Sec. 240, as added 
Pub. L. 101-392, title II, Sec. 201, Sept. 25, 1990, 104 Stat. 784, 
related to local applications, prior to the general amendment of this 
chapter by Pub. L. 105-332.
