A r c h i v e d  I n f o r m a t i o n

``Subpart 4--Product Development


``(a) Purpose.--It is the purpose of this subpart to--
``(1) support development of curriculum-based learning resources using state-of-the-art technologies and techniques designed to improve student learning; and
``(2) support development of long-term comprehensive instructional programming and associated support resources that ensure maximum access by all educational institutions.
``(b) Federal Assistance Authorized.--
``(1) In general.--The Secretary shall provide assistance, on a competitive basis, to eligible consortia to enable such entities to develop, produce, and distribute state-of-the-art technology-enhanced instructional resources and programming for use in the classroom or to support professional development for teachers.
``(2) Grants and loans authorized.--In carrying out the purposes of this section, the Secretary is authorized to pay the Federal share of the cost of the development, production, and distribution of state-of-the-art technology enhanced instructional resources and programming--
``(A) by awarding grants to, or entering into contracts or cooperative agreements with, eligible consortia; or
``(B) by awarding loans to eligible consortia which--
``(i) shall be secured in such manner and be repaid within such period, not exceeding 20 years, as may be determined by the Secretary;
``(ii) shall bear interest at a rate determined by the Secretary which shall be not more than the total of one-quarter of 1 percent per annum added to the rate of interest paid by the Secretary on funds obtained from the Secretary of the Treasury; and
``(iii) may be forgiven by the Secretary, in an amount not to exceed 25 percent of the total loan, under such terms and conditions as the Secretary may consider appropriate.
``(3) Matching requirement.--The Secretary may require any recipient of a grant or contract under this subpart to share in the cost of the activities assisted under such grant or contract, which non-Federal share shall be announced through a notice in the Federal Register and may be in the form of cash or in-kind contributions, fairly valued.
``(4) Eligible consortium.--For the purpose of this subsection, the term `eligible consortium' means a consortium--
``(A) that shall include--
``(i) a State or local educational agency; and
``(ii) a business, industry, or telecommunications entity; and
``(B) that may include--
``(i) a public or private nonprofit organization; or
``(ii) a postsecondary institution.
``(5) Priorities.--In awarding assistance under this section, the Secretary shall give priority to applications describing programs or systems that--
``(A) promote the acquisition of higher-order thinking skills and promise to raise the achievement levels of all students, particularly disadvantaged students who are not realizing their potential;
``(B) are aligned with challenging State content standards and State and local curriculum frameworks;
``(C) may be adapted and applied nationally at a reasonable cost over a broad technology platform;
``(D) convert technology resources developed with support from the Department of Defense and other Federal agencies for effective use in the classroom;
``(E) show promise of reducing the costs of providing high-quality instruction;
``(F) show promise of expanding access to high-quality instruction in content areas which would otherwise not be available to students in rural and urban communities or who are served by other educational agencies with limited financial resources;
``(G) are developed in consultation with classroom teachers;
``(H) are developed through consultation and collaboration with appropriate education entities in designing the product to ensure relevance to the voluntary national content standards, the voluntary national student performance standards and State curriculum frameworks; and
``(I) are developed so that the product can be adapted for use by adults in need of literacy services, including English as a second language and preparation for a secondary school diploma or its recognized equivalent.
``(6) Requirements for federal assistance.--Each eligible consortium desiring Federal assistance under this section shall submit an application to the Secretary at such time and in such manner as the Secretary may prescribe. Each application shall include--
``(A) a description of how the product will improve the achievement levels of students;
``(B) a description of how the activities assisted under this section will promote professional development of teachers and administrators in the uses and applications of the product, including the development of training materials;
``(C) a description of design, development, field testing, evaluation, and distribution of products, where appropriate;
``(D) an assurance that the product shall effectively serve a significant number or percentage of economically disadvantaged students;
``(E) plans for dissemination of products to a wide audience of learners;
``(F) a description of how the product can be adapted for use by students with disabilities including provisions for closed captioning or descriptive video, where appropriate;
``(G) a description of how ownership and rights to the use and marketing of any product developed by the consortium, including intellectual property rights, will be allocated among consortium participants; and
``(H) a description of the contributions, including services and funds, to be made by each member of the consortium, and how any revenues derived from the sale of any product developed by the consortium shall be distributed.
``(c) Consumer Report.--The Secretary shall provide for the independent evaluation of products developed under this section and shall disseminate information about products developed pursuant to provisions of this section to State and local educational agencies, and other organizations or individuals that the Secretary determines to be appropriate, through print and electronic media that are accessible to the education community at large.
``(d) Proceeds.--The Secretary shall not prohibit an eligible consortium or any of the members of such consortium from receiving financial benefits from the distribution of any products resulting from the assistance received under this section. Notwithstanding any other provision of law, any profits or royalties received by a State educational agency, local educational agency, or other nonprofit member of an eligible consortium receiving assistance under this section shall be used to support further development of curriculum-based learning resources, services, and programming or to provide access to such products for a wider audience.

Subpart 3--Regional Technical Support and Professional Development Table of Contents PART B--STAR SCHOOLS PROGRAM