112 STAT. 2681-409 PUBLIC LAW 105-277—OCT. 21, 1998 20 USC 6370. (1) by redesignating section 1210 as section 1212; and (2) by inserting after section 1209 the following: 20 USC 6369a. «SEC. 1210. INDICATORS OF PROGRAM QUALITY. "Each State receiving funds under this part shall develop, based on the best available research and evaluation data, indicators of program quality for programs assisted under this part. Such indicators shall be used to monitor, evaluate, and improve such programs within the State. Such indicators shall include the following: "(1) With respect to eligible participants in a program who are adults— " (A) achievement in the areas of reading, writing, English language acquisition, problem solving, and numeracy; "(B) receipt of a high school diploma or a general equivalency diploma; "(C) entry into a postsecondary school, job retraining program, or employment or career advancement, including the military; and "(D) such other indicators as the State may develop. "(2) With respect to eligible participants in a program who are children— "(A) improvement in ability to read on grade level or reading readiness; "(B) school attendance; "(C) grade retention and promotion; and "(D) such other indicators as the State may develop.". (b) STATE LEVEL ACTIVITIES.— Section 1203(a) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6363(a)) is amended— (1) in paragraph (1), by striking "and" at the end; (2) in paragraph (2), by striking the period at the end and inserting "; and"; and (3) by adding at the end the following: "(3) carrying out section 1210.". (c) AWARD OF SUBGRANTS. —Paragraphs (3) and (4) of section 1208(b) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6368) are amended to read as follows: "(3) CONTINUING ELIGIBILITY.— In awarding subgrant funds to continue a program under this part for the second, third, or fourth year, the State educational agency shall evaluate the program based on the indicators of program qusility developed by the State under section 1210. Such evaluation shall take place after the conclusion of the startup period, if any. "(4) INSUFFICIENT PROGRESS. —The State educational agency may refuse to award subgrant funds if such agency finds that the eligible entity has not sufficiently improved the performance of the program, as evaluated based on the indicators of program quality developed by the State under section 1210, after— " (A) providing technical assistguice to the eligible entity; and "(B) affording the eligible entity notice and an opportunity for a hearing.".