(a) State assessment In order to receive funds under this chapter, a State, not later than 2 years after October 7, 1998, shall have in place a procedure to identify, and assist, through the provision of technical assistance, low-performing programs of teacher preparation within institutions of higher education.

Such State shall provide the Secretary an annual list of such low-performing institutions that includes an identification of those institutions at-risk of being placed on such list. Such levels of performance shall be determined solely by the State and may include criteria based upon information collected pursuant to this part. Such assessment shall be described in the report under section 1027(b) of this title. (b) Termination of eligibility Any institution of higher education that offers a program of teacher preparation in which the State has withdrawn the State's approval or terminated the State's financial support due to the low performance of the institution's teacher preparation program based upon the State assessment described in subsection (a) of this section - (1) shall be ineligible for any funding for professional development activities awarded by the Department of Education; and (2) shall not be permitted to accept or enroll any student that receives aid under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42 in the institution's teacher preparation program. (c) Negotiated rulemaking If the Secretary develops any regulations implementing subsection (b)(2) of this section, the Secretary shall submit such proposed regulations to a negotiated rulemaking process, which shall include representatives of States, institutions of higher education, and educational and student organizations.