(J) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, A
LOCAL EDUCATION AGENCY MAY NOT RECEIVE A MARYLAND LEARNING SUCCESS
PROGRAM GRANT UNLESS THE LOCAL EDUCATION AGENCY EXPENDS ITS FEDERAL
CLASS SIZE REDUCTION INITIATIVE GRANTS PROVIDED IN PUBLIC LAW 105-277 TO
REDUCE CLASS SIZES FOR READING INSTRUCTION IN THE FIRST AND SECOND
GRADES.

(2) IF A LOCAL EDUCATION AGENCY HAS A RATIO OF NO GREATER THAN
20 STUDENTS PER ONE TEACHER FOR READING INSTRUCTION IN THE FIRST AND
SECOND GRADES, PARAGRAPH (1) OF THIS SUBSECTION DOES NOT APPLY.

(H) (J) (K) (1) ON OR BEFORE OCTOBER 1, IN 2001 AND EACH SUCCEEDING
YEAR, EACH LOCAL EDUCATION AGENCY SHALL SUBMIT A MARYLAND LEARNING.
SUCCESS PROGRAM REPORT TO THE STATE SUPERINTENDENT.

(2) THE REPORT SHALL DESCRIBE THE LOCAL EDUCATION AGENCY'S
ACTUAL USE OF FUNDING FROM MARYLAND LEARNING SUCCESS PROGRAM GRANTS,
FEDERAL CLASS SIZE INITIATIVE GRANTS PROVIDED IN PUBLIC LAW 105-277, AND
ANY OTHER FEDERAL FUNDS PROVIDED SPECIFICALLY FOR THE PURPOSE OF
INCREASING THE NUMBER OF TEACHERS.

(3) THE REPORT SHALL INCLUDE THE RESULTS OF THE PERFORMANCE
INDICATORS SPECIFIED IN THE LOCAL EDUCATION AGENCY'S MARYLAND LEARNING

SUCCESS PROGRAM PLAN. 

(4) THE REPORT MAY PROPOSE CHANGES TO THE LOCAL EDUCATION
AGENCY'S MARYLAND LEARNING SUCCESS PROGRAM PLAN.

(5) THE REPORT SHALL INCLUDE ANY OTHER INFORMATION REQUIRED
BY GUIDELINES OR REGULATIONS ISSUED BY THE STATE BOARD.

(6) THE REPORT SHALL BE IN A FORM AND FORMAT SPECIFIED BY THE
STATE SUPERINTENDENT.

(I) (K) (L) ON OR BEFORE DECEMBER 31 OF EACH YEAR, THE
SUPERINTENDENT SHALL REPORT THE STATUS OF THE MARYLAND LEARNING
SUCCESS PROGRAM TO THE GOVERNOR AND THE GENERAL ASSEMBLY.

(J) (L) (M) FOR FISCAL YEAR 2001 AND EACH SUCCEEDING FISCAL YEAR,
THE GOVERNOR SHALL INCLUDE FUNDS IN THE STATE BUDGET TO ACCOMPLISH
THE PURPOSES OF THIS SECTION.

(K) (M) (N) THE STATE BOARD MAY ESTABLISH ANY GUIDELINES OR

REGULATIONS THAT IT DETERMINES ARE NECESSARY TO IMPLEMENT THE
PURPOSES OF THIS SECTION.

SECTION 2. AND BE IT FURTHER ENACTED, That the Special Study
Commission on Class Size Reduction Programs established pursuant to House Joint
Resolution No. 15 of 1998 shall include in its report to the Governor and the General
Assembly the benefits and necessity of reducing class sizes for mathematics in public
schools and reading instruction in the third grade.