SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State and Local Education 
Flexibility Act of 2005''.

SEC. 2. AMENDMENTS TO ESEA.

    (a) Limited English Proficient Students.--Section 1111(b) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311(b)) is 
amended--
            (1) in paragraph (2)(C)--
                    (A) in clause (vi), by striking ``and'' at the end;
                    (B) in clause (vii), by striking the period at the 
                end and inserting ``; and'' ; and
                    (C) by adding at the end the following:
                            ``(viii) at the State's discretion on a 
                        case-by-case basis, may not include the 
                        performance of any limited English proficient 
                        student if--
                                    ``(I) the student has not been 
                                enrolled for 3 full school years in an 
                                elementary school or secondary school 
                                in the State; and
                                    ``(II) the parents of the student, 
                                and the school administrator or team of 
                                educators designated by the student's 
                                school for making limited English 
                                proficiency placement and assessment 
                                decisions, agree that such an exclusion 
                                is educationally appropriate for the 
                                student.'';
            (2) in clause (ii) of paragraph (2)(I), by inserting ``is 
        subject to paragraph (3)(C)(xvi),'' after ``except that the 95 
        percent requirement described in this clause'';
            (3) in paragraph (3)(C)--
                    (A) in clause (xiv), by striking ``and'' at the 
                end;
                    (B) in clause (xv), by striking the period at the 
                end and inserting ``; and'' ; and
                    (C) by adding at the end the following:
                            ``(xvi) notwithstanding clause (ix)(III), 
                        at the State's discretion on a case-by-case 
                        basis, not include any limited English 
                        proficient student if--
                                    ``(I) the student is enrolled in 
                                his or her first full school year in an 
                                elementary school or secondary school 
                                in the State; and
                                    ``(II) the parents of the student, 
                                and the school administrator or team of 
                                educators designated by the student's 
                                school for making limited English 
                                proficiency placement and assessment 
                                decisions, agree that such an exclusion 
                                is educationally appropriate for the 
                                student.''; and
            (4) in paragraph (7), by adding at the end the following: 
        ``Notwithstanding the preceding sentence, a State plan may 
        provide for the exclusion from such annual assessment of 
        English proficiency of any limited English proficient student 
        if (A) the student is enrolled in his or her first full school 
        year in an elementary or secondary school in the State; and (B) 
        the parents of the student, and the school administrator or 
        team of educators designated by the student's school for making 
        limited English proficiency placement and assessment decisions, 
        agree that such an exclusion is educationally appropriate for 
        the student.''
    (b) Consideration of Graduation Rates in AYP.--Clause (vi) of 
section 1111(b)(2)(C) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6311(b)(2)(C)) is amended by inserting ``, except that, 
at the discretion of the State, such graduation rates may include (I) 
any student who has exceptional circumstances and graduates from 
secondary school with a regular diploma in not more than 5 years, (II) 
any qualified child with a disability (as that term is defined in 
paragraph (3)(C)(11)) who graduates from secondary school with a 
regular diploma before attaining an age established by State law, and 
(III) any qualified child with a disability (as that term is defined in 
paragraph (3)(C)(11)) who satisfies such alternative challenging 
academic content and achievement standards as the State may establish 
for the child to complete secondary school in a reasonable period of 
time'' after ``in the standard number of years''.
    (c) Children With Disabilities.--Subsection (b) of section 1111 of 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311) is 
amended--
            (1) in subparagraph (B) of paragraph (1), by striking ``The 
        academic standards'' and inserting ``Subject to paragraph (11), 
        the academic standards'';
            (2) in clause (i) of paragraph (2)(C), by striking 
        ``applies the same high standards'' and inserting ``subject to 
        paragraph (11), applies the same high standards'';
            (3) in clause (i) of paragraph (3)(C), by striking ``be the 
        same academic assessments'' and inserting ``subject to 
        paragraph (11), be the same academic assessments''; and
            (4) by adding at the end the following:
            ``(11) Children with disabilities.--
                    ``(A) Relation to iep.--Subject to the requirements 
                of subparagraphs (B) and (C), with respect to a 
                qualified child with a disability, a State plan may 
                provide for modification of the challenging academic 
                content standards and challenging student academic 
                achievement standards required by paragraph (1)(A), the 
                high standards of academic achievement described in 
                paragraph (2)(C)(i), and the yearly student academic 
                assessments described in paragraph (3), to align such 
                standards and assessments with the child's 
                individualized education program.
                    ``(B) Parental consent.--A State plan may not 
                provide for modification pursuant to subparagraph (A) 
                of any standard or assessment unless the parents of the 
                child involved agree that such modification is 
                educationally appropriate for the child.
                    ``(C) Progressively higher level of instruction.--
                In the case of a qualified child with a disability who 
                has a significant cognitive impairment, but not a 
                severe cognitive impairment, any modification pursuant 
                to subparagraph (A) of any standard or assessment 
                applicable to the child shall continue to require a 
                progressively higher level of instruction each year.
                    ``(D) Rule of construction.--This paragraph shall 
                not be construed to give rise to any new right under 
                the Individuals with Disabilities Education Act, to 
                expand the definition of a child with a disability 
                under that Act, or to otherwise affect any provision of 
                that Act.
                    ``(E) Definitions.--In this paragraph:
                            ``(i) The term `individualized education 
                        program' has the meaning given to that term in 
                        section 602 of the Individuals with 
                        Disabilities Education Act.
                            ``(ii) The term `qualified child with a 
                        disability' means a child who receives services 
                        under the Individuals with Disabilities 
                        Education Act and has been certified by a 
                        licensed health care professional or a 
                        multidisciplinary team (established in 
                        accordance with State guidelines and including 
                        a licensed health care professional) as a child 
                        with severe or significant cognitive impairment 
                        that prevents learning consistent with the 
                        child's age group.''.
    (d) Local Development of Assessments.--Paragraph (3) of section 
1111(b) of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6311(b)(3)) is amended by adding at the end the following:
                    ``(E) Local development of assessments.--
                            ``(i) In general.--Notwithstanding 
                        subparagraphs (A) and (C)(i), a State 
                        educational agency may authorize a local 
                        educational agency, or school, in the State to 
                        develop and implement the student academic 
                        assessments required by this paragraph with 
                        respect to the students served by the local 
                        educational agency or school, respectively.
                            ``(ii) Same assessment.--Subject to 
                        paragraph (11), any assessment developed and 
                        implemented by a local educational agency or 
                        school pursuant to this subparagraph shall be 
                        the same academic assessment used to measure 
                        the achievement of all children served by the 
                        local educational agency or school, 
                        respectively.
                            ``(iii) State responsibility.-- If a State 
                        educational agency chooses to authorize a local 
                        educational agency, or school, in the State to 
                        develop and implement assessments pursuant to 
                        this subparagraph, the State educational agency 
                        shall be responsible for demonstrating in the 
                        State plan that each such assessment complies 
                        with the requirements of this paragraph.''.
    (e) Multiple Assessments.--
            (1) In general.--Paragraph (3) of section 1111(b) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6311(b)(3)) (as amended by subsection (d)) is amended by adding 
        at the end the following:
                    ``(F) Rule of construction.--Notwithstanding 
                subparagraph (A), this paragraph shall not be construed 
                to prohibit the development and implementation of the 
                student academic assessments required by this section 
                through the use of multiple assessments of high 
                technical quality integrated into a school's curriculum 
                and distributed throughout the course of the school 
                year.''.
            (2) Participation requirement.--Clause (ii) of section 
        1111(b)(2)(I) (20 U.S.C. 6311(b)(2)(I)) (as amended by 
        subsection (a)(2)) is amended by inserting ``, and shall be a 
        75 percent annual average requirement in a case in which the 
        school implements academic assessments for purposes of 
        paragraph (3) through the use of multiple assessments 
        integrated into a school's curriculum and distributed 
        throughout the course of the school year'' before the close 
        parenthesis at the end.
    (f) Highly Qualified Special Education and Rural Teachers.--Clause 
(I) of section 9101(23)(B)(ii) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7801(23)(B)(ii)) is amended by 
inserting ``(except that, at the discretion of the State, a special 
education teacher or a teacher in a rural school may satisfy the 
requirements of this subclause by passing such a rigorous State 
academic subject test in any 1 subject in which the teacher teaches if, 
with respect to each other academic subject in which the teacher 
teaches, the teacher works in close consultation, either in-person or 
through high-quality distance education or consultation, with another 
teacher who is highly qualified in such other academic subject)'' 
before the semicolon.

SEC. 3. STUDY ON THE ADEQUACY OF ESEA FUNDING.

    (a) Study.--The Comptroller General of the United States (in this 
section referred to as the ``Comptroller General'') shall conduct a 
study to determine for each of school years 2001-2002, 2002-2003, and 
2003-2004, the following:
            (1) The amount of costs incurred by local educational 
        agencies and schools as a result of efforts to comply with the 
        provisions of part A of title I of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6301 et seq.).
            (2) The amount of funds received by local educational 
        agencies and schools under such part A.
    (b) Regular Educational Expenses.--In making a determination of 
costs under subsection (a)(1), the Comptroller General shall exclude 
educational costs that would be incurred by local educational agencies 
and schools irrespective of efforts to comply with the provisions of 
part A of title I of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6301 et seq.).
    (c) Samples.--The Comptroller General shall make sample 
determinations under paragraphs (1) and (2) of subsection (a) for--
            (1) at least 1 local educational agency and 1 school in a 
        rural area in each State; and
            (2) at least 1 local educational agency and 1 school in an 
        urban area in each State.
    (d) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Comptroller General shall submit a report to the 
Congress on the results of the study conducted under this section.
    (e) Subsequent Study and Reports.--The Comptroller General shall 
conduct additional study under this section and submit a revised report 
to the Congress--
            (1) not later than 2 years after the date of the enactment 
        of this Act, containing determinations on the amounts described 
        in paragraphs (1) and (2) of subsection (a) for school year 
        2005-2006; and
            (2) not later than 3 years after the date of the enactment 
        of this Act, containing determinations on the amounts described 
        in paragraphs (1) and (2) of subsection (a) for school year 
        2006-2007.

SEC. 4. STUDY ON FEASIBILITY OF MEASURING INDIVIDUAL STUDENT ACADEMIC 
              ACHIEVEMENT.

    (a) Study.--The Secretary of Education (in this section referred to 
as the ``Secretary'') shall enter into an arrangement with a reputable, 
nonpartisan educational research entity to conduct a study--
            (1) to assess the feasibility of measuring student academic 
        achievement on an individual basis over a period of time for 
        purposes of determining whether a school is making adequate 
        yearly progress; and
            (2) to identify States and local educational agencies that 
        already have in effect longitudinal data systems that could be 
        used for such measurements.
    (b) Considerations.--In conducting the study under this section, 
the Secretary shall consider the following:
            (1) Privacy issues, including--
                    (A) who would have access to information on 
                individual student academic achievement; and
                    (B) how such information would be maintained in a 
                confidential manner.
            (2) Ensuring against labeling of students.
            (3) Costs.
    (c) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Secretary shall submit a report to the Congress on the 
results of the study conducted under this section.
State and Local Education Flexibility Act of 2005 - Amends the Elementary and Secondary Education Act of 1965, as amended by the No Child Left Behind Act of 2001, to revise accountability requirements of title I part A assistance for basic programs operated by local educational agencies (LEAs) to improve the academic achievement of the disadvantaged (ESEA I-A).

Provides for State and local flexibility, under specified conditions, to: (1) exclude from adequate yearly progress and academic assessments the performance of certain limited English proficient students; (2) modify academic content and achievement standards in the individual education plans of students with disabilities; (3) develop assessments locally and use multiple assessments; and (4) have alternative qualification requirements for special education teachers and rural teachers.

Directs the Comptroller General to study the amounts LEAs and schools receive from ESEA I-A, and the costs to them in complying with it. Directs the Secretary of Education to arrange with an educational research entity to assess feasibility of measuring individual academic achievement.
To amend the accountability provisions of part A of title I of the Elementary and Secondary Education Act of 1965, and for other purposes.