Teacher and Principal Improvement Act

Teacher and Principal Improvement Act - Creates a new title II (Preparing, Training, and Recruiting High Quality Teachers and Principals) of the Elementary and Secondary Education Act of 1965 (ESEA) consisting of a part A (Teacher and Principal Training and Recruitment Fund) and part B (Teacher Incentive Fund).

Moves teacher liability and internet safety provisions to title IX of the ESEA.

Authorize appropriations for title II through FY2016. Reserves at least 20% of such funding for the part B program, after the Secretary of Education reserves funds for certain national activities under part A.

Allocates part A grants to states and, through them, subgrants to local educational agencies (LEAs) pursuant to a formula that apportions: (1) 20% of the funding to states and LEAs on the basis of their share of students aged 5-17 on the national and state level, respectively; and (2) 80% of such funding on the basis of their share of impoverished students in that age group.

Requires states to use 98.5% of those funds for subgrants to LEAs, with the remainder being used for specified state activities.

Lists the projects which the subgrants may fund, including: (1) teacher and principal recruitment, training, and retention efforts; (2) teacher and principal evaluation systems that are based in significant part on student achievement; (3) model instructional programs in the core academic subjects; and (4) measures that improve students' access to school library materials, postsecondary level coursework, and extended learning opportunities.

Directs the Secretary to: (1) provide technical assistance to part A grantees and subgrantees, (2) evaluate part A activities, and (3) award competitive matching grants to national nonprofit organizations for teacher or principal training programs.

Authorizes the Secretary to award competitive matching grants under part B to states, LEAs, or partnerships between those entities and profit or nonprofit organizations to develop, implement, improve, or expand, performance-based compensation systems for teachers and principals.

Favors grant applicants that focus on teachers and principals serving in high-need schools.

Directs the Secretary to arrange for an independent evaluation of the effectiveness of part B programs.