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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2577 Introduced in House (IH)]

110th CONGRESS
  1st Session
                                H. R. 2577

To amend the Elementary and Secondary Education Act of 1965 to provide 
additional flexibility to State and local educational agencies to raise 
               the academic achievement of all students.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              June 6, 2007

   Mr. McKeon (for himself, Mr. Boehner, Mr. Castle, Mr. Regula, Mr. 
 Marchant, Mr. Heller of Nevada, Mr. Walberg, Mr. Renzi, and Mr. Paul) 
 introduced the following bill; which was referred to the Committee on 
                          Education and Labor

_______________________________________________________________________

                                 A BILL

 
To amend the Elementary and Secondary Education Act of 1965 to provide 
additional flexibility to State and local educational agencies to raise 
               the academic achievement of all students.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State and Local Flexibility 
Improvement Act''.

SEC. 2. INCREASED USE OF STATE AND LOCAL TRANSFERABILITY OF FUNDS.

    (a) Transfers by States.--Section 6123(a) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7305b(a)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``not more than 50 percent'' and 
                inserting ``up to 100 percent''; and
            (2) in paragraph (2)--
                    (A) by striking ``and subject to the 50 percent 
                limitation described in paragraph (1).''.
    (b) Transfers by Local Educational Agencies.--Section 6123(b) of 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
7305b(b))is amended--
            (1) in paragraph (1)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) In general.--In accordance with this subpart, 
                a local educational agency may transfer up to 100 
                percent of the funds allocated to it (including funds 
                transferred under subparagraph (B)) under each of the 
                provisions listed in paragraph (2) for a fiscal year to 
                one or more of its allocations for such fiscal year 
                under any other provision listed in paragraph (2).'';
                    (B) by striking subparagraph (B);
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B); and
                    (D) in subparagraph (B), as redesignated, by 
                striking, ``and subject to the percentage limitation 
                described in subparagraph (A) or (B), as applicable''; 
                and
            (2) in paragraph (2), by striking ``subparagraph (A), (B), 
        or (C)'' and inserting ``subparagraph (A) or (B)''.
    (c) Section 6123(e) of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 7305b(e)) is amended--
            (1) in paragraph (1), by striking ``In general'' and 
        inserting ``Partial transfer of funds'';
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (2) the following:
            ``(2) Total transfer of funds.--If a State or local 
        educational agency transfers 100 percent of the funds allocated 
        to it for any of the programs under subsection (a)(1) or 
        subsection (b)(2) respectively, the funds so transferred shall 
        not be subject to the rules and requirements applicable to the 
        funds under the provision from which the transferred funds are 
        transferred.''.

SEC. 3. STRENGTHENING STATE AND LOCAL CONTROL TO ENCOURAGE INNOVATION 
              IN THE CLASSROOM.

    Subpart 3 of part A of title VI of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7311 et seq.) is amended to read as 
follows:

         ``Subpart 3--State Flexibility Performance Agreements

``SEC. 6131. PURPOSE.

    ``The purpose of this subpart is to provide States greater 
flexibility in determining how--
            ``(1) to increase the academic achievement of all students 
        so that all students will meet or exceed the State's proficient 
        level of academic achievement in reading and math by school 
        year 2013-2014;
            ``(2) to narrow achievement gaps between the lowest- and 
        highest-achieving groups of students; and
            ``(3) to eliminate barriers to implementing effective 
        education reforms and directing Federal resources to where they 
        are most needed.

``SEC. 6132. STATE FLEXIBILITY PERFORMANCE AGREEMENTS.

    ``(a) Authority.--In accordance with this subpart, a State may 
enter into a performance agreement with the Secretary under which, 
except as otherwise provided in this subpart, the State may--
            ``(1) waive statutory or regulatory program requirements 
        pursuant to section 6133, including those requirements for any 
        local educational agency or school within the State;
            ``(2) consolidate the Federal funds described in section 
        6133 and use those funds for any educational purpose authorized 
        under State law;
            ``(3) enter into local performance agreements with local 
        educational agencies in the State in accordance with section 
        6134 in order to--
                    ``(A) assist those agencies in making adequate 
                yearly progress (as described in section 1111(b));
                    ``(B) advance the educational priorities of the 
                State;
                    ``(C) improve student achievement and narrow 
                achievement gaps; and
                    ``(D) allow those agencies to consolidate funds 
                under the Federal programs described in section 6134 
                and use those funds for any educational purpose 
                authorized under State law;
            ``(4) use an alternative method for making allocations to 
        local educational agencies under part A of title I, provided 
        that the Secretary determines that the method of allocation 
        proposed by the State targets a greater proportion of funds to 
        local educational agencies with high concentrations of children 
        from low-income families than would the allocation pursuant to 
        subpart 2 of that part; and
            ``(5) permit local educational agencies to use alternative 
        criteria for directing funds provided under part A of title I 
        to schools, in order to target services more effectively to 
        schools that serve a high concentration of students from low-
        income families.
    ``(b) Terms of Performance Agreement.--Each performance agreement 
entered into by the Secretary under this subpart shall include the 
following provisions:
            ``(1) Duration.--A statement that the duration of the 
        performance agreement shall be for a period of 5 years.
            ``(2) List and description of program requirements.--A list 
        and description of the Federal statutory and regulatory program 
        requirements described in section 6133 that the State expects 
        to waive and included in the performance agreement, and an 
        assurance that the State will waive only those requirements 
        described in that section.
            ``(3) Application of program requirements.--A statement 
        that no program requirements of any program included by the 
        State in the performance agreement shall apply, except as 
        otherwise provided in this subpart.
            ``(4) Use of funds to improve student achievement.--A 5-
        year plan describing how the State intends to use the 
        flexibility included in the performance agreement to advance 
        the education priorities of the State, improve student 
        achievement, and narrow achievement gaps between groups of 
        students.
            ``(5) Accountability requirements.--If a State includes any 
        part of part A of title I in its performance agreement, the 
        State shall include a certification that the State has 
        developed and continues to implement the challenging State 
        academic standards, academic assessments, and accountability 
        systems described in section 1111(b) and had those systems 
        approved by the Secretary pursuant to section 1111(e).
            ``(6) Student academic achievement requirements.--If a 
        State includes any part of part A of title I in its performance 
        agreement, the State shall include a description of how it will 
        hold local educational agencies and schools accountable for 
        student performance that includes a procedure for identifying 
        local educational agencies and schools in need of improvement, 
        and assistance and interventions for those local educational 
        agencies and schools to ensure that their students make 
        substantial gains in achievement.
            ``(7) Public school choice and supplemental educational 
        services.--If a State includes any part of part A of title I in 
        its performance agreement, the State shall include a 
        certification that the State accountability system developed in 
        paragraph (6) includes public school choice and supplemental 
        education services for those schools not making adequate yearly 
        progress for two or more consecutive years.
            ``(8) Local educational agencies responsibilities.--A 
        description of how a State will select local educational 
        agencies within the State with which to enter into local 
        performance agreements pursuant to section 6134 and a 
        description of how the State will evaluate the performance of 
        local educational agencies within the State with local 
        performance agreements pursuant to section 6134 and the 
        circumstances under which it will terminate those agreements.
            ``(9) Alternative method for allocating funds.--In the case 
        of a State that seeks to use an alternative method for 
        allocating funds under part A of title I to local educational 
        agencies, a description of that method and evidence that 
        demonstrates that the alternative method will target funds to 
        local educational agencies with high concentrations of children 
        from low-income families more effectively than the allocation 
        method required under that part.
            ``(10) Alternative criteria for allocating funds.--In the 
        case of a State that intends to permit local educational 
        agencies within the State to use alternative criteria for 
        allocating funds under part A of title I to schools, a 
        description of the criteria and an analysis of the effect those 
        criteria would have on those allocations.
            ``(11) Fiscal responsibilities.--An assurance that the 
        State will use fiscal control and funds accounting procedures 
        that will ensure proper disbursement of, and accounting for, 
        Federal funds paid to the State under this Act and an assurance 
        that the State will not reduce the level of spending of State 
        funds for elementary and secondary education during the term of 
        the performance agreement.
            ``(12) Civil rights.--An assurance that the State will meet 
        the requirements of applicable Federal civil rights laws.
            ``(13) State approval.--An assurance that not less than 2 
        of the following approved the proposed performance agreement:
                    ``(A) The Governor of the State.
                    ``(B) The State legislature.
                    ``(C) The State educational agency.
    ``(c) Approval of Performance Agreement.--
            ``(1) In general.--Not later than 90 days after the receipt 
        of a proposed performance agreement submitted by a State, the 
        Secretary shall approve the performance agreement or provide 
        the State with a written determination detailing the reasons 
        why the performance agreement fails to satisfy the purposes, 
        goals, or a requirement of this subpart.
            ``(2) Peer-review process.--In carrying out paragraph (1), 
        the Secretary shall establish a peer-review process to assist 
        in the review of applications under this section, and shall 
        appoint as peer reviewers individuals who represent a broad 
        range of educational stakeholders.
            ``(3) Treatment as approved.--Each performance agreement 
        for which the Secretary fails to take the action required in 
        paragraph (1) in the time period described in that paragraph 
        shall be considered to be approved.
            ``(4) Disapproval of performance agreement.--If the 
        Secretary disapproves a State's performance agreement, the 
        State shall have 30 days to resubmit a revised performance 
        agreement. The Secretary shall approve the revised performance 
        agreement within 30 days of receipt of the revised performance 
        agreement or provide the State with a written determination 
        that the revised performance agreement fails to satisfy the 
        purposes, goals, or a requirement of this subpart.
    ``(d) Amendment to Performance Agreement.--
            ``(1) In general.--In each of the following circumstances, 
        the Secretary, subject to approval under paragraph (2), shall 
        agree to amend a performance agreement entered into with a 
        State under this subpart:
                    ``(A) Reduction in scope of performance 
                agreement.--A State seeks to amend the performance 
                agreement to remove from the scope of the performance 
                agreement any program requirement described in section 
                6133.
                    ``(B) Expansion of scope of performance 
                agreement.--A State seeks to amend the performance 
                agreement to include within the scope of the 
                performance agreement any additional program 
                requirement described in section 6133.
            ``(2) Approval of amendment.--
                    ``(A) In general.--Not later than 60 days after the 
                receipt of a proposed performance agreement amendment 
                submitted by a State, the Secretary shall approve the 
                amendment or provide the State with a written 
                determination that the amendment fails to satisfy the 
                purposes, goals, or a requirement of this subpart.
                    ``(B) Treatment as approved.--Each amendment for 
                which the Secretary fails to take the action required 
                in subparagraph (A) in the time period described in 
                such subparagraph shall be considered to be approved.
            ``(3) Treatment of program requirements withdrawn from 
        agreement.--Beginning on the effective date of an amendment 
        executed under paragraph (1)(A), each program requirement of 
        each program removed from the scope of a performance agreement 
        shall apply to the State's use of funds made available under 
        the program.
    ``(e) Within-State Distribution of Funds.--
            ``(1) In general.--The distribution of funds from programs 
        included in a performance agreement from a State to a local 
        educational agency within the State shall be determined by the 
        Governor of the State and the State legislature. In a State in 
        which the constitution or State law designates another 
        individual, entity, or agency to be responsible for education, 
        the allocation of funds from programs included in the 
        performance agreement from a State to a local educational 
        agency within the State shall be determined by that individual, 
        entity, or agency, in consultation with the Governor and State 
        Legislature. Nothing in this section shall be construed to 
        supersede or modify any provision of a State constitution or 
        State law.
            ``(2) Local input.--States shall provide parents, teachers, 
        and local schools and educational agencies notice and 
        opportunity to comment on the proposed allocation of funds as 
        provided under general State law notice-and-comment provisions.

``SEC. 6133. ELIGIBLE PROGRAM REQUIREMENTS.

    ``(a) Scope.--A State may choose to include within the scope of its 
performance agreement--
            ``(1) any statutory or regulatory program requirement 
        authorized under this Act, except section 1111,
            ``(2) any program for which Congress makes funds available 
        to the State if the program is for a purpose described in 
        section 1001, except any program funded pursuant to the 
        Individuals with Disabilities Education Act, and
            ``(3) notwithstanding paragraph (1), additional models and 
        systems for measuring student progress for purposes of 
        determining whether a local educational agency or school has 
        made adequate yearly progress described in section 1111(b).
Such models and systems that measure student progress under this 
paragraph may include growth models that demonstrate progress based on 
longitudinal student assessment results indicating improvement in the 
academic performance of individual students over time and ensure that 
all students will meet or exceed the State's proficient level of 
academic achievement in reading and math by school year 2013-2014.
    ``(b) Uses of Funds.--Funds made available to a State pursuant to a 
performance agreement under this subpart shall be used for any 
educational purpose permitted by State law of the State participating 
in the performance agreement.

``SEC. 6134. LOCAL PERFORMANCE AGREEMENTS.

    ``(a) In General.--
            ``(1) A State that has entered into a performance agreement 
        with the Secretary pursuant to section 6132 may enter into 
        local performance agreements with local educational agencies in 
        the State to waive statutory or regulatory program requirements 
        and consolidate Federal funds to improve student achievement 
        and narrow achievement gaps. A State shall include a priority 
        on entering into such agreements with high-need local 
        educational agencies as described in paragraph (3).
            ``(2) Terms of performance agreement.--A local performance 
        agreement entered into with the State under this subpart shall 
        include specific, measurable educational goals, with annual 
        objectives, that the local educational agency plans to 
        accomplish under the agreement. The agreement shall waive only 
        those statutory or regulatory program requirements included in 
        the performance agreement authorized under section 6132.
            ``(3) High-need local educational agency.--The term `high-
        need local educational agency' means a local educational agency 
        that--
                    ``(A) has not made adequate yearly progress for the 
                two preceding academic years; and
                    ``(B) serves a larger number, or percentage, of 
                economically disadvantaged students than the average 
                number or percentage, as the case may be, of such 
                students served by local educational agencies in the 
                State.
    ``(b) Funds Available To Be Consolidated.--A local educational 
agency that has entered into a local performance agreement with a State 
under this section may consolidate the funds received by the local 
educational agency and use the consolidated funds for any educational 
purpose authorized under State law.
    ``(c) Termination of Local Performance Agreement.--A State may, 
after providing notice and an opportunity for a hearing, terminate a 
local educational agency's local performance agreement if the State 
determines that the local educational agency has failed to comply with 
the performance agreement.

``SEC. 6135. ADMINISTRATIVE EXPENSES.

    ``(a) State Consolidating Funds Under Part A of Title I.--Each 
State that includes part A of title I within the scope of a performance 
agreement under this subpart may use, for administrative expenses, not 
more than 1 percent of the total amount of funds made available to the 
State under the programs included within the scope of the performance 
agreement.
    ``(b) States Not Consolidating Funds Under Part A of Title I.--Each 
State that does not include part A of title I within the scope of a 
performance agreement under this subpart may use, for administrative 
expenses, not more than 3 percent of the total amount of funds made 
available to the State under the programs included within the scope of 
the performance agreement.
    ``(c) Local Educational Agencies.--Each local educational agency 
that enters into a local performance agreement with a State pursuant to 
section 6134 may use, for administrative expenses, not more than 4 
percent of the total amount of funds allocated to such agency under the 
programs included within the scope of the performance agreement.

``SEC. 6136. PARTICIPATION BY PRIVATE SCHOOL CHILDREN AND TEACHERS.

    ``Each State consolidating and using funds pursuant to a 
performance agreement under this subpart shall provide for the 
participation of private school children and teachers in the activities 
assisted under the performance agreement in the same manner as 
participation is provided to private school children and teachers under 
section 9501.

``SEC. 6137. ANNUAL REPORTS.

    ``(a) In General.--Not later than 1 year after the execution of the 
performance agreement, and annually thereafter, each State shall 
disseminate widely to the parents, the general public, and the 
Secretary, a report that includes--
            ``(1) student performance data disaggregated in the same 
        manner as data are disaggregated under section 
        1111(b)(3)(C)(xiii); and
            ``(2) a description of how the State has used Federal funds 
        to improve academic achievement, narrow the achievement gap, 
        and improve educational opportunities for the disadvantaged.
    ``(b) Submission to Congress.--Not later than 60 days after the 
Secretary receives a report under subsection (a), the Secretary shall 
submit that report to the Congress, together with any other information 
the Secretary considers appropriate.

``SEC. 6138. PERFORMANCE REVIEW AND EARLY TERMINATION.

    ``(a) Review.--For each State having in effect a performance 
agreement under this subpart, the Secretary shall carry out a review of 
the performance agreement, at the midpoint of the duration of the 
performance agreement, in order to determine whether the State has met 
the terms of the performance agreement described in section 6132.
    ``(b) Early Termination.--The Secretary may terminate a performance 
agreement, before the duration of that performance agreement expires, 
if the State does not, for 3 consecutive school years, meet the terms 
of the performance agreement described in section 6132. Such 
termination shall occur after the Secretary provides notice and an 
opportunity for a hearing.''.

SEC. 4. ENHANCING FLEXIBILITY FOR LOCAL SCHOOL DISTRICTS THAT OFFER 
              SCHOOLWIDE PROGRAMS.

    Section 1114(a)(1) of the Elementary and Secondary Education Act is 
amended by striking ``40 percent'' each place it appears and inserting 
``25 percent''.
                                 <all>
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