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[House Report 106-100]
[From the U.S. Government Publishing Office]

106th Congress                                                   Report
 1st Session            HOUSE OF REPRESENTATIVES                 106-100

=======================================================================

 
             EDUCATION FLEXIBILITY PARTNERSHIP ACT OF 1999

                                _______
                                

                April, 20, 1999.--Ordered to be printed

                                _______
                                

Mr. Goodling, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 800]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
800), to provide for education flexibility partnerships, having 
met, after full and free conference, have agreed to recommend 
and do recommend to their respective Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Education Flexibility 
Partnership Act of 1999''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) States differ substantially in demographics, in 
        school governance, and in school finance and funding. 
        The administrative and funding mechanisms that help 
        schools in 1 State improve may not prove successful in 
        other States.
            (2) Although the Elementary and Secondary Education 
        Act of 1965 and other Federal education statutes afford 
        flexibility to State educational agencies and local 
        educational agencies in implementing Federal programs, 
        certain requirements of Federal education statutes or 
        regulations may impede local efforts to reform and 
        improve education.
            (3) By granting waivers of certain statutory and 
        regulatory requirements, the Federal Government can 
        remove impediments for local educational agencies in 
        implementing educational reforms and raising the 
        achievement levels of all children.
            (4) State educational agencies are closer to local 
        school systems, implement statewide educational reforms 
        with both Federal and State funds, and are responsible 
        for maintaining accountability for local activities 
        consistent with State standards and assessment systems. 
        Therefore, State educational agencies are often in the 
        best position to align waivers of Federal and State 
        requirements with State and local initiatives.
            (5) The Education Flexibility Partnership 
        Demonstration Act allows State educational agencies the 
        flexibility to waive certain Federal requirements, 
        along with related State requirements, but allows only 
        12 States to qualify for such waivers.
            (6) Expansion of waiver authority will allow for 
        the waiver of statutory and regulatory requirements 
        that impede implementation of State and local 
        educational improvement plans, or that unnecessarily 
        burden program administration, while maintaining the 
        intent and purposes of affected programs, such as the 
        important focus on improving mathematics and science 
        performance under title II of the Elementary and 
        Secondary Education Act of 1965 (Dwight D. Eisenhower 
        Professional Development Program), and maintaining such 
        fundamental requirements as those relating to civil 
        rights, educational equity, and accountability.
            (7) To achieve the State goals for the education of 
        children in the State, the focus must be on results in 
        raising the achievement of all students, not process.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Local educational agency; state educational 
        agency; outlying area.--The terms ``local educational 
        agency'', ``State educational agency'', and ``outlying 
        area'' have the meanings given the terms in section 
        14101 of the Elementary and Secondary Education Act of 
        1965.
            (2) Eligible school attendance area; school 
        attendance area.--The terms ``eligible school 
        attendance area'' and ``school attendance area'' have 
        the meanings given the terms in section 1113(a)(2) of 
        the Elementary and Secondary Education Act of 1965.
            (3) Secretary.--The term ``Secretary'' means the 
        Secretary of Education.
            (4) State.--The term ``State'' means each of the 50 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, and each outlying area.

SEC. 4. EDUCATION FLEXIBILITY PARTNERSHIP.

    (a) Educational Flexibility Program.--
            (1) Program authorized.--
                    (A) In general.--The Secretary may carry 
                out an educational flexibility program under 
                which the Secretary authorizes a State 
                educational agency that serves an eligible 
                State to waive statutory or regulatory 
                requirements applicable to 1 or more programs 
                described in subsection (b), otherthan 
requirements described in subsection (c), for any local educational 
agency or school within the State.
                    (B) Designation.--Each eligible State 
                participating in the program described in 
                subparagraph (A) shall be known as an ``Ed-Flex 
                Partnership State''.
            (2) Eligible state.--For the purpose of this 
        section the term ``eligible State'' means a State 
        that--
                    (A) has--
                            (i) developed and implemented the 
                        challenging State content standards, 
                        challenging State student performance 
                        standards, and aligned assessments 
                        described in section 1111(b) of the 
                        Elementary and Secondary Education Act 
                        of 1965, and for which local 
                        educational agencies in the State are 
                        producing the individual school 
                        performance profiles required by 
                        section 1116(a)(3) of such Act; or
                            (ii)(I) developed and implemented 
                        the content standards described in 
                        clause (i);
                            (II) developed and implemented 
                        interim assessments; and
                            (III) made substantial progress (as 
                        determined by the Secretary) toward 
                        developing and implementing the 
                        performance standards and final aligned 
                        assessments described in clause (i), 
                        and toward having local educational 
                        agencies in the State produce the 
                        profiles described in clause (i);
                    (B) holds local educational agencies and 
                schools accountable for meeting the educational 
                goals described in the local applications 
                submitted under paragraph (4) and for engaging 
                in technical assistance and corrective actions 
                consistent with section 1116 of the Elementary 
                and Secondary Education Act of 1965, for the 
                local educational agencies and schools that do 
                not make adequate yearly progress as described 
                in section 1111(b)(2) of such Act; and
                    (C) waives State statutory or regulatory 
                requirements relating to education while 
                holding local educational agencies or schools 
                within the State that are affected by such 
                waivers accountable for the performance of the 
                students who are affected by such waivers.
            (3) State application.--
                    (A) In general.--Each State educational 
                agency desiring to participate in the 
                educational flexibility program under this 
                section shall submit an application to the 
                Secretary at such time, in such manner, and 
                containing such information as the Secretary 
                may reasonably require. Each such application 
                shall demonstrate that the eligible State has 
                adopted an educational flexibility plan for the 
                State that includes--
                            (i) a description of the process 
                        the State educational agency will use 
                        to evaluate applications from local 
                        educational agencies or schools 
                        requesting waivers of--
                                    (I) Federal statutory or 
                                regulatory requirements as 
                                described in paragraph (1)(A); 
                                and
                                    (II) State statutory or 
                                regulatory requirements 
                                relating to education;
                            (ii) a detailed description of the 
                        State statutory and regulatory 
                        requirements relating to education that 
                        the State educational agency will 
                        waive;
                            (iii) a description of clear 
                        educational objectives the State 
                        intends to meet under the educational 
                        flexibility plan;
                            (iv) a description of how the 
                        educational flexibility plan is 
                        consistent with and will assist in 
                        implementing the State comprehensive 
                        reform plan or, if a State does not 
                        have a comprehensive reform plan, a 
                        description of how the educational 
                        flexibility plan is coordinated with 
                        activities described in section 1111(b) 
                        of the Elementary and Secondary 
                        Education Act of 1965;
                            (v) a description of how the State 
                        educational agency will evaluate, 
                        (consistent with the requirements of 
                        title I of the Elementary and Secondary 
                        Education Act of 1965), the performance 
                        of students in the schools and local 
                        educational agencies affected by the 
                        waivers; and
                            (vi) a description of how the State 
                        educational agency will meet the 
                        requirements of paragraph (8).
                    (B) Approval and considerations.--The 
                Secretary may approve an application described 
                in subparagraph (A) only if the Secretary 
                determines that such application demonstrates 
                substantial promise of assisting the State 
                educational agency and affected local 
                educational agencies and schools within the 
                State in carrying out comprehensive educational 
                reform, after considering--
                            (i) the eligibility of the State as 
                        described in paragraph (2);
                            (ii) the comprehensiveness and 
                        quality of the educational flexibility 
                        plan described in subparagraph (A);
                            (iii) the ability of the 
                        educational flexibility plan to ensure 
                        accountability for the activities and 
                        goals described in such plan;
                            (iv) the degree to which the 
                        State's objectives described in 
                        subparagraph (A)(iii)--
                                    (I) are clear and have the 
                                ability to be assessed; and
                                    (II) take into account the 
                                performance of local 
                                educational agencies or 
                                schools, and students, 
                                particularly those affected by 
                                waivers;
                            (v) the significance of the State 
                        statutory or regulatory requirements 
                        relating to education that will be 
                        waived; and
                            (vi) the quality of the State 
                        educational agency's process for 
                        approving applications for waivers of 
                        Federal statutory or regulatory 
                        requirements as described in paragraph 
                        (1)(A) and for monitoring and 
                        evaluating the results of such waivers.
            (4) Local application.--
                    (A) In general.--Each local educational 
                agency or school requesting a waiver of a 
                Federal statutory or regulatory requirement as 
                described in paragraph (1)(A) and any relevant 
                State statutory or regulatory requirement from 
                a State educational agency shall submit an 
                application to the State educational agency at 
                such time, in such manner, and containing such 
                information as the State educational agency may 
                reasonably require. Each such application 
                shall--
                            (i) indicate each Federal program 
                        affected and each statutory or 
                        regulatory requirement that will be 
                        waived;
                            (ii) describe the purposes and 
                        overall expected results of waiving 
                        each such requirement;
                            (iii) describe, for each school 
                        year, specific, measurable, educational 
                        goals for each local educational agency 
                        or school affected by the proposed 
                        waiver, and for the students served by 
                        the local educational agency or school 
                        who are affected by the waiver;
                            (iv) explain why the waiver will 
                        assist the local educational agency or 
                        school in reaching such goals; and
                            (v) in the case of an application 
                        from a local educational agency, 
                        describe how the local educational 
                        agency will meet the requirements of 
                        paragraph (8).
                    (B) Evaluation of applications.--A State 
                educational agency shall evaluate an 
                application submitted under subparagraph (A) in 
                accordance with the State's educational 
                flexibility plan described in paragraph (3)(A).
                    (C) Approval.--A State educational agency 
                shall not approve an application for a waiver 
                under this paragraph unless--
                            (i) the local educational agency or 
                        school requesting such waiver has 
                        developed a local reform plan that is 
                        applicable to such agency or school, 
                        respectively;
                            (ii) the waiver of Federal 
                        statutory or regulatory requirements as 
                        described in paragraph (1)(A) will 
                        assist the local educational agency or 
                        school in reaching its educational 
                        goals, particularly goals with respect 
                        to school and student performance; and
                            (iii) the State educational agency 
                        is satisfied that the underlying 
                        purposes of the statutory requirements 
                        of each program for which a waiver is 
                        granted will continue to be met.
                    (D) Termination.--The State educational 
                agency shall annually review the performance of 
                any local educational agency or school granted 
                a waiver of Federal statutory or regulatory 
                requirements as described in paragraph (1)(A) 
                in accordance with the evaluation requirement 
                described in paragraph (3)(A)(v), and shall 
                terminate any waiver granted to the local 
                educational agency or school if the State 
                educational agency determines, after notice and 
                an opportunity for a hearing, that the local 
                educational agency or school's performance with 
                respect to meeting the 
accountabilityrequirement described in paragraph (2)(C) and the goals 
described in paragraph (4)(A)(iii)--
                            (i) has been inadequate to justify 
                        continuation of such waiver; or
                            (ii) has decreased for 2 
                        consecutive years, unless the State 
                        educational agency determines that the 
                        decrease in performance was justified 
                        due to exceptional or uncontrollable 
                        circumstances.
            (5) Oversight and reporting.--
                    (A) Oversight.--Each State educational 
                agency participating in the educational 
                flexibility program under this section shall 
                annually monitor the activities of local 
                educational agencies and schools receiving 
                waivers under this section.
                    (B) State reports.--
                            (i) Annual reports.--The State 
                        educational agency shall submit to the 
                        Secretary an annual report on the 
                        results of such oversight and the 
                        impact of the waivers on school and 
                        student performance.
                            (ii) Performance data.--Not later 
                        than 2 years after the date a State is 
                        designated an Ed-Flex Partnership 
                        State, each such State shall include, 
                        as part of the State's annual report 
                        submitted under clause (i), data 
                        demonstrating the degree to which 
                        progress has been made toward meeting 
                        the State's educational objectives. The 
                        data, when applicable, shall include--
                                    (I) information on the 
                                total number of waivers granted 
                                for Federal and State statutory 
                                and regulatory requirements 
                                under this section, including 
                                the number of waivers granted 
                                for each type of waiver;
                                    (II) information describing 
                                the effect of the waivers on 
                                the implementation of State and 
                                local educational reforms 
                                pertaining to school and 
                                student performance;
                                    (III) information 
                                describing the relationship of 
                                the waivers to the performance 
                                of schools and students 
                                affected by the waivers; and
                                    (IV) an assurance from 
                                State program managers that the 
                                data reported under this 
                                section are reliable, complete, 
                                and accurate, as defined by the 
                                State, or a description of a 
                                plan for improving the 
                                reliability, completeness, and 
                                accuracy of such data as 
                                defined by the State.
                    (C) Secretary's reports.--The Secretary, 
                not later than 2 years after the date of 
                enactment of this Act and annually thereafter, 
                shall--
                            (i) make each State report 
                        submitted under subparagraph (B) 
                        available to Congress and the public; 
                        and
                            (ii) submit to Congress a report 
                        that summarizes the State reports and 
                        describes the effects that the 
                        educational flexibility program under 
                        this section had on the implementation 
                        of State and local educational reforms 
                        and on the performance of students 
                        affected by the waivers.
            (6) Duration of federal waivers.--
                    (A) In general.--The Secretary shall not 
                approve the application of a State educational 
                agency under paragraph (3) for a period 
                exceeding 5 years, except that the Secretary 
                may extend such period if the Secretary 
                determines that such agency's authority to 
                grant waivers--
                            (i) has been effective in enabling 
                        such State or affected local 
                        educational agencies or schools to 
                        carry out their State or local reform 
                        plans and to continue to meet the 
                        accountability requirement described in 
                        paragraph (2)(C); and
                            (ii) has improved student 
                        performance.
                    (B) Performance review.--Three years after 
                the date a State is designated an Ed-Flex 
                Partnership State, the Secretary shall review 
                the performance of the State educational agency 
                in granting waivers of Federal statutory or 
                regulatory requirements as described in 
                paragraph (1)(A) and shall terminate such 
                agency's authority to grant such waivers if the 
                Secretary determines, after notice and an 
                opportunity for a hearing, that such agency's 
                performance (including performance with respect 
                to meeting the objectives described in 
                paragraph (3)(A)(iii)) has been inadequate to 
                justify continuation of such authority.
                    (C) Renewal.--In deciding whether to extend 
                a request for a State educational agency's 
                authority to issue waivers under this section, 
                the Secretary shall review the progress of the 
                State educational agency to determine if the 
                State educational agency--
                            (i) has made progress toward 
                        achieving the objectives described in 
                        the application submitted pursuant to 
                        paragraph (3)(A)(iii); and
                            (ii) demonstrates in the request 
                        that local educational agencies or 
                        schools affected by the waiver 
                        authority or waivers have made progress 
                        toward achieving the desired results 
                        described in the application submitted 
                        pursuant to paragraph (4)(A)(iii).
            (7) Authority to issue waivers.--Notwithstanding 
        any other provision of law, the Secretary is authorized 
        to carry out the educational flexibility program under 
        this section for each of the fiscal years 1999 through 
        2004.
            (8) Public notice and comment.--Each State 
        educational agency seeking waiver authority under this 
        section and each local educational agency seeking a 
        waiver under this section--
                    (A) shall provide the public with adequate 
                and efficient notice of the proposed waiver 
                authority or waiver, consisting of a 
                description of the agency's application for the 
                proposed waiver authority or waiver in a widely 
                read or distributed medium, including a 
                description of any improved student performance 
                that is expected to result from the waiver 
                authority or waiver;
                    (B) shall provide the opportunity for 
                parents, educators, and all other interested 
                members of the communityto comment regarding 
the proposed waiver authority or waiver;
                    (C) shall provide the opportunity described 
                in subparagraph (B) in accordance with any 
                applicable State law specifying how the 
                comments may be received, and how the comments 
                may be reviewed by any member of the public; 
                and
                    (D) shall submit the comments received with 
                the agency's application to the Secretary or 
                the State educational agency, as appropriate.
    (b) Included Programs.--The statutory or regulatory 
requirements referred to in subsection (a)(1)(A) are any such 
requirements for programs carried out under the following 
provisions:
            (1) Title I of the Elementary and Secondary 
        Education Act of 1965 (other than subsections (a) and 
        (c) of section 1116 of such Act).
            (2) Part B of title II of the Elementary and 
        Secondary Education Act of 1965.
            (3) Subpart 2 of part A of title III of the 
        Elementary and Secondary Education Act of 1965 (other 
        than section 3136 of such Act).
            (4) Title IV of the Elementary and Secondary 
        Education Act of 1965.
            (5) Title VI of the Elementary and Secondary 
        Education Act of 1965.
            (6) Part C of title VII of the Elementary and 
        Secondary Education Act of 1965.
            (7) The Carl D. Perkins Vocational and Technical 
        Education Act of 1998.
    (c) Waivers Not Authorized.--The Secretary and the State 
educational agency may not waive under subsection (a)(1)(A) any 
statutory or regulatory requirement--
            (1) relating to--
                    (A) maintenance of effort;
                    (B) comparability of services;
                    (C) equitable participation of students and 
                professional staff in private schools;
                    (D) parental participation and involvement;
                    (E) distribution of funds to States or to 
                local educational agencies;
                    (F) serving eligible school attendance 
                areas in rank order under section 1113(a)(3) of 
                the Elementary and Secondary Education Act of 
                1965;
                    (G) the selection of a school attendance 
                area or school under subsections (a) and (b) of 
                section 1113 of the Elementary and Secondary 
                Education Act of 1965, except that a State 
                educational agency may grant a waiver to allow 
                a school attendance area or school to 
                participate in activities under part A of title 
                I of such Act if the percentage of children 
                from low-income families in the school 
                attendance area of such school or who attend 
                such school is not less than 10 percentage 
                points below the lowest percentage of such 
                children for any school attendance area or 
                school ofthe local educational agency that 
meets the requirements of such subsections (a) and (b);
                    (H) use of Federal funds to supplement, not 
                supplant, non-Federal funds; and
                    (I) applicable civil rights requirements; 
                and
            (2) unless the underlying purposes of the statutory 
        requirements of the program for which a waiver is 
        granted continue to be met to the satisfaction of the 
        Secretary.
    (d) Treatment of Existing Ed-Flex Partnership States.--
            (1) In general.--Except as provided in paragraphs 
        (3) and (4), this section shall not apply to a State 
        educational agency that has been granted waiver 
        authority under the provisions of law described in 
        paragraph (2) for the duration of the waiver authority.
            (2) Applicable provisions.--The provisions of law 
        referred to in paragraph (1) are as follows:
                    (A) Section 311(e) of the Goals 2000: 
                Educate America Act.
                    (B) The proviso referring to such section 
                311(e) under the heading ``education reform'' 
                in the Department of Education Appropriations 
                Act, 1996 (Public Law 104-134; 110 Stat. 1321-
                229).
            (3) Special rule.--If a State educational agency 
        granted waiver authority pursuant to the provisions of 
        law described in subparagraph (A) or (B) of paragraph 
        (2) applies to the Secretary for waiver authority under 
        this section--
                    (A) the Secretary shall review the progress 
                of the State educational agency in achieving 
                the objectives set forth in the application 
                submitted pursuant to section 311(e) of the 
                Goals 2000: Educate America Act; and
                    (B) the Secretary shall administer the 
                waiver authority granted under this section in 
                accordance with the requirements of this 
                section.
            (4) Technology.--In the case of a State educational 
        agency granted waiver authority under the provisions of 
        law described in subparagraph (A) or (B) of paragraph 
        (2), the Secretary shall permit a State educational 
        agency to expand, on or after the date of enactment of 
        this Act, the waiver authority to include programs 
        under subpart 2 of part A of title III of the 
        Elementary and Secondary Education Act of 1965 (other 
        than section 3136 of such Act).
    (e) Publication.--A notice of the Secretary's decision to 
authorize State educational agencies to issue waivers under 
this section, including a description of the rationale the 
Secretary used to approve applications under subsection 
(a)(3)(B), shall be published in the Federal Register and the 
Secretary shall provide for the dissemination of such notice to 
State educational agencies, interested parties (including 
educators, parents, students, and advocacy and civil rights 
organizations), and the public.

SEC. 5. FLEXIBILITY TO DESIGN CLASS SIZE REDUCTION PROGRAMS.

    Section 307 of the Department of Education Appropriations 
Act, 1999, is amended--
            (1) in subsection (b)(2), by inserting ``(except as 
        provided in subsection (c)(2)(D))'' before the period; 
        and
            (2) in subsection (c)(2), by adding at the end the 
        following:
            ``(D) If a local educational agency has already 
        reduced class size in the early grades to 18 or fewer 
        children and intends to use funds provided under this 
        section to carry out professional development 
        activities, including activities to improve teacher 
        quality, then the State shall make the award under 
        subsection (b) to the local educational agency without 
        requiring the formation of a consortium.''.

SEC. 6. ALTERNATIVE EDUCATIONAL SETTING.

    (a) In General.--Section 615(k)(1)(A)(ii)(I) of the 
Individuals with Disabilities Education Act (20 U.S.C. 
1415(k)(1)(A)(ii)(I)) is amended to read as follows:
                                    ``(I) the child carries or 
                                possesses a weapon to or at 
                                school, on school premises, or 
                                to or at a school function 
                                under the jurisdiction of a 
                                State or a local educational 
                                agency; or''.
    (b) Application.--The amendment made by subsection (a) 
shall apply to conduct occurring not earlier than the date of 
enactment of this Act.

      And the Senate agree to the same.

                                   Bill Goodling,
                                   Peter Hoekstra,
                                   Michael N. Castle,
                                   James Greenwood,
                                   Mark Souder,
                                   Bob Schaffer,
                                 Managers on the Part of the House.

                                   Jim Jeffords,
                                   Judd Gregg,
                                   Bill Frist,
                                   Mike DeWine,
                                   Michael B. Enzi,
                                   Tim Hutchinson,
                                   Susan Collins,
                                   Sam Brownback,
                                   Chuck Hagel,
                                   Jeff Sessions,
                                   Ted Kennedy,
                                   Chris Dodd,
                                   Tom Harkin,
                                   Barbara A. Mikulski,
                                   Jeff Bingaman,
                                   Patty Murray,
                                   Jack Reed,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 800) to provide 
for education flexibility partnerships, submit the following 
joint statement to the House and the Senate in explanation of 
the effect of the action agreed upon by the managers and 
recommended in the accompanying conference report:

                              Short Title

      1. Both the House bill and the Senate amendment are 
identical in this section.

                                Findings

      2. The findings are identical in both the House bill and 
the Senate amendment except for finding (6). See note 3.
      Descriptive note.
      3. The House bill, but not the Senate amendment, mentions 
the important focus on math and science in the Eisenhower 
Professional Development Program as an example of the intent 
and purposes of programs to be maintained under Ed-Flex.
      The Senate recedes.

                              Definitions

      4. The House bill, but not the Senate amendment, contains 
two additional definitions. Those are: ``attendance area'' 
because this term is mentioned in (c)(F), which defines an 
unauthorized Title I school eligibility waiver and ``Ed-Flex 
Partnership State'' in order to make clear that the term refers 
to an eligible state. The Senate amendment, but not the House 
bill includes a definition of ``outlying areas''. The House 
bill refers to this definition under ESEA.
      The Senate recedes on attendance area. The House recedes 
on Ed-Flex Partnership State and the Senate recedes with an 
amendment to include cross-reference to the definition of 
``outlying area.''

               Education Flexibility Partnership Program

      5. The Senate amendment, but not the House bill, in Part 
(a)(1)(A) does not permit the State to waive requirements on 
itself.
      The House recedes.

                             Eligible State

      6. The House bill requires a state to have implemented 
more of their Title I plan than the Senate amendment. See Notes 
7 and 8. The House bill and the Senate amendment differ in how 
they measure the performance of local applicants. See Note 9.
      7. The Senate amendment but not the House bill, includes 
the phrase, ``including the requirements of that section 
relating to disaggregation of data.'' The House bill refers to 
disaggregation of data by reference.
      The Senate recedes. Provisions regarding disaggregation 
of data are included in the portion of section 1111(b) of the 
Elementary and Secondary Education Act which deals with 
assessments. These provisions were highlighted in the Senate 
bill, but specific reference to them was not included in the 
conference agreement. Conferees were concerned that a specific 
reference to only one of the requirements of section 1111(b) 
could create the inaccurate impression that States wanting to 
participate in the educational flexibility programs would be 
held to requirements beyond those currently in the law.
      8. The House bill requires content standards and interim 
assessments to be in place, in addition to having made 
substantial progress towards developing and implementing 
performance standards and final aligned assessments. The Senate 
amendment requires substantial progress for content and 
performance standards as well as final aligned assessments.
      The Senate recedes. The Conferees would like to clarify 
congressional intent with respect to State compliance with the 
Elementary and Secondary Education Act (ESEA) Title I, Part A, 
standards and assessment requirements (Sec. 1111(b)) as an 
eligibility criterion both for Ed-Flex authority under H.R. 800 
and for participation in ESEA, Title 1, Part A. Under both Ed-
Flex and Title 1, Part A, uniform State standards and uniform 
State assessments are not required as a condition for either 
being granted Ed-Flex authority or continuing to receive 
financial assistance under Title 1, Part A. However, if a State 
does not have uniform State standards and assessments, the 
State must have in effect, or be making substantial progress 
toward having in effect, local standards and assessments 
approved by the State in order for the State to be granted Ed-
Flex authority. The Conferees expect the Department of 
Education to maintain its current interpretation of the 
provisions of ESEA, Title 1, Section 1111(b) as published in 
the policy guidance in 1997. This guidance reflects the 
understanding of the Conferees that States, such as Nebraska 
and Iowa, can comply with section 1111(b) of Title 1, Part A if 
the State has implemented uniform statewide standards and 
assessments, has a statewide system with local standards and 
assessments approved by the State; or has local standards or 
assessments approved by the State on the basis of models or 
criteria to ensure challenging standards and high quality, 
aligned assessments.
      9. The House bill requires states to hold LEAs and 
schools accountable for meeting goals listed in waiver 
applications to be eligible. The Senate amendment has an 
additional requirement that States are implementing corrective 
action measures under Title I for schools that fail to make 
adequate yearly progress.
      The Senate recedes with an amendment to insert the words 
``and for engaging in the technical assistance and corrective 
actions consistent with section 1116 of the Elementary and 
Secondary Education Act of 1965, for the local educational 
agencies and schools that do not make adequate yearly progress 
as described in section 1111(b) of that Act'' after ``paragraph 
(4)''

                           State Application

      10. The House bill and Senate amendment differ in how 
States are to measure and set objectives. See Note 11-14.
      11. The House bill, but not the Senate amendment, 
requires states to describe specific objectives in their 
application.
      The Senate recedes with an amendment to delete 
``specific'' and insert ``clear.''
      12. The Senate amendment, but not the House bill requires 
state applications to reference State comprehensive plans or 
Section 1111(b) of ESEA (Title I standards and assessments).
      The House recedes.
      13. The House bill, but not the Senate amendment, 
requires local progress to be measured by using the local 
applicants' objectives, as defined by the section of the bill 
(a)(4)(A)(iii) requiring local applicants to set specific and 
measurable goals for schools and groups of students affected by 
waivers. The Senate amendment, but not the House bill, requires 
States to evaluate the performance of local applicants and 
students affected by waivers in general, not defined by local 
applications.
      The House recedes.
      14. Both the House bill and the Senate amendment require 
States to describe how they will notify the public of waivers 
granted. The House bill requires States to provide assurances 
that it will provide notice with a minimum requirement of 30 
days or in accordance with state law. The Senate amendment 
requires ``adequate and efficient'' notice and opportunity for 
comment. See note 18 for local comment and notice.
      The House recedes.

                      Approval and Considerations

      15. The Senate amendment, but not the House bill, 
explicitly requires the Secretary to consider a state's 
eligibility for Ed-Flex in approving their application. The 
House bill, but not the Senate amendment requires the Secretary 
to evaluate their objectives according to their specificity and 
their connection to students, schools and districts.
      The Senate recedes with an amendment to add (B)(i) from 
the Senate bill and to revise (B)(iii) of the House bill to 
read as follows: ``(iii) the degree to which the State's 
objectives described in subparagraph (A)(iii)--
            ``(I) are clear and have the ability to be 
        assessed; and
            ``(II) take into account the performance of local 
        educational agencies or schools and students, 
        particularly those affected by waivers.''

                           Local Application

      16. Both the House bill and the Senate amendment are 
identical with the exception of (iii) and (v). See notes 17 and 
18.
      17. The House bill, but not the Senate amendment, 
requires goals for each group of students affected by a 
proposed waiver, in addition to the LEA or school.
      The Senate recedes with an amendment to revise ``(iii)'' 
to read as follows:

            (iii) describe, for each school year, specific, 
        measurable, educational goals for each local 
        educational agency or school affected by the proposed 
        waiver and their students;

      18. Local public notice and comment: See Note 14.
      The House recedes.

                       Evaluation of Applications

      19. Both the House bill and the Senate amendment are 
identical.
      20. The Senate amendment stipulates that the SEA should 
consider how a waiver will help improve school and student 
performance when evaluating applications. The House bill 
requires the SEA to be satisfied that the LEA or school will 
continue to meet the underlying purposes of the statues 
included in this legislation.
      The House and Senate recede taking both provisions.
      21. The House bill requires a statistically significant 
decrease for two consecutive years until waivers can be 
terminated. The Senate amendment requires termination if 
performance has been ``inadequate'' to justify continuing the 
waiver.
      The House recedes with an amendment to have the title 
read ``Termination'' and to insert at the end of (5)(B) of the 
Senate bill the following: ``or has decreased for two 
consecutive years (unless the State educational agency 
determines that the decrease in performance was justified due 
to exceptional or uncontrollable circumstances).''

                        Oversight and Reporting

      22. The House bill entitles this section Oversight and 
Reporting. The Senate amendment entitles this section 
``Monitoring and Performance Review.''
      The Senate recedes.
      23. The House bill, but not the Senate amendment, 
stipulates that monitoring ``shall include a review of relevant 
audit, technical assistance, evaluation, and performance 
reports.'' Both the House bill and the Senate amendment require 
states to submit an annual report, but the House bill states 
this in (ii) and the Senate amendment states this in (i).
      The Senate recedes with an amendment to strike ``Such 
monitoring shall include a review of relevant audit, technical 
assistance, evaluation, and performance reports.'' While not 
listing in statute the specific reports to be reviewed, the 
conferees anticipate that State educational agencies will 
utilize these resources in their monitoring of local 
educational agencies and schools which have received waivers.
      24. The House bill and the Senate amendment require 
states to submit performance data. However, the House bill, but 
not the Senate amendment, requires States to submit performance 
data after two years of being an Ed-Flex state.
      The Senate recedes.

                            progress reports

      25. The House bill requires the Secretary to report to 
Congress on an annual basis the impact of Ed-Flex on 
performance objectives and to make state reports available to 
Congress. The Senate amendment requires a report to Congress 
after the first year and biennially thereafter. In general, the 
Senate amendment requires the Secretary to report what the 
House bill prescribes for the states. The Senate amendment in 
(1) requires the Secretary to describe the federal statutes and 
regulations for which they have received waiver authority. The 
House bill but not the Senate amendment specifies the type of 
information to be reported on waivers granted. The Senate 
amendment only requires information on waivers of state 
regulations and statutes. The House bill, but not the Senate 
amendment requires specific data on types of waivers granted 
and requires a report on the relationship between the waivers 
and meeting objectives. The Senate amendment in 3 and 4 
requires that they describe ``the effect'' on implementation of 
reforms and student performance. (cf. Note 38).

            The Senate recedes with an amendment to: (a) change 
        (B)(i)(II) to read as follows--``information describing 
        the effect of waivers granted on the implementation of 
        State and local educational reforms pertaining to 
        school and student performance;'' (b) add a new 
        (B)(i)(III) to read as follows--``information 
        describing the relationship of waivers granted to the 
        performance of schools and students affected by the 
        waivers.'' (c) add a new (B)(i)(IV) ``an assurance from 
        State program managers that the data reported under 
        this section are reliable, complete, and accurate, as 
        defined by the State, or a description of a plan for 
        improving the reliability, completeness, and accuracy 
        of such data as defined by the State.'' (d) change 
        (B)(ii)(II) to read as follows--``submit to Congress a 
        report that summarizes the State reports ensuring that 
        such reports address the effect that the educational 
        flexibility program under this section has had on the 
        implementation of State and local educational reforms 
        and on the performance of students affected by the 
        waivers.''

                      duration of federal waivers

      26. The Senate amendment, but not the House bill, 
requires that states ``continue to meet the accountability 
requirements described in subsection (a)(2)(B), and has 
improved student performance'' in order for authority to be 
extended.
      The House recedes.

                           performance review

      27. The House bill requires that the Secretary review the 
performance of States after three years of being an Ed-Flex 
State. The Senate amendment requires the Secretary to review 
the performance of States ``periodically.''
      The House recedes with an amendment specifying that the 
review be conducted three years after designation and to insert 
``, including meeting the objectives described in paragraph 
(3)(A)(iii),'' after ``performance''.

                       authority to issue waivers

      28. The House bill authorizes this program beginning in 
FY 1999. The Senate amendment begins this authorization in FY 
2000.
      The Senate recedes.

                       public notice and comment

      29. See Notes 14 and 18.
      The House recedes with an amendment to insert after 
``waiver'' in line 6 ``, including a description of any 
improved performance of students that is expected to result 
from the waiver authority or waiver,'' and to insert after 
``received'' on line 11 ``and made available for review by any 
member of the public,''.

                           included programs

      30. The House bill and the Senate amendment are identical 
except that subsection 4(b)(1) of the Senate amendment excludes 
the Local Review and School Improvement sections of Title I.
      The House recedes. It is the intent of the conferees 
that, if an LEA has higher standards than the State standard, 
then locally approved standards may be used for purposes of 
determining schools in need of improvement or need for 
corrective action.

                         waivers not authorized

      31. The Senate amendment specifies that the Secretary and 
the State may not waive these provisions. The House bill only 
addresses the Secretary.
      The House recedes.

                            title i waivers

      32. The House bill prohibits Title I school eligibility 
waivers unless they are marginally below the necessary poverty 
level. The Senate amendment prohibits waivers of Title I rank-
order requirements for schools with more than 75% poverty.
      The House recedes on Senate language and the Senate 
recedes on House language with an amendment changing the low-
income percentage from within 5 percentage points to 10 
percentage points, and clarifying the applicable subsections of 
section 1113 of Title I, Part A of the Elementary and Secondary 
Education Act.

                  treatment of existing ed-flex states

      33. The House bill protects the authority of current Ed-
Flex States by stating that this Act does not apply to them 
until they apply to renew their authority. The Senate amendment 
permanently exempts existing Ed-Flex States from being affected 
by this statute.
      The Senate recedes with an amendment which makes clear 
that the performance of the current 12 Ed-Flex States will be 
judged, when they re-apply for Ed-Flex status at the end of 
their current 5 year period, on the basis of section 311(e) of 
the Goals 2000: Educate America Act. The application itself, 
must conform to the new requirements of the Education 
Flexibility Partnership Act. The amendment also provides that, 
upon enactment of this Act, the 12 existing Ed-Flex States may 
exercise Ed-Flex waiver authority with respect to the 
technology programs under subpart 2 of part A of Title III of 
the Elementary and Secondary Education Act (other than section 
3136 of such Act).

                                renewal

      34. The House bill stipulates when renewing Ed-Flex 
Authority, the Secretary must determine whether SEAs have made 
measureable progress in accordance with their measurable 
objectives, as well as whether SEAs demonstrate that LEAs or 
schools have made measurable progress. The House bill also 
exempts current Ed-Flex States (see Note 33). The Senate 
amendment requires the Secretary to review generally the 
progress of those affected by Ed-Flex authority or waivers 
towards meeting goals set in local applications.
      The Senate recedes with an amendment striking the word 
``measurable'' in (e)(1)(A) and (B) and changing the word 
``Accountability'' in the heading to ``Renewal''.
      35. The House bill, but not the Senate amendment, 
clarifies that when current Ed-Flex States apply to renew their 
authority, their progress should be measured in accordance with 
the terms under which they were granted their authority. 
However, when their authority expires and they receive renewed 
authority this law will apply to them.
      The Senate recedes. The conferees have addressed renewal 
for the 12 Ed-Flex States in note 33.

                              publication

      36. The Senate amendment, but not the House bill, 
requires the Secretary to include the rationale for granting a 
State Ed-Flex authority when publishing notice in the Federal 
Register.
      The House recedes.

                             effective date

      37. The House bill, but not the Senate amendment, sunsets 
this law when ESEA reauthorization is enacted.
      The House recedes. The Conferees believe that when the 
Congress considers the Elementary and Secondary Education Act 
it will have to take into consideration the changes made to 
this Act and make whatever changes and adjustments are required 
to ensure that both laws operate in a coordinated fashion so as 
to provide as much flexibility as possible to States and local 
educational agencies.

               flexibility to design class size reduction

      38. The Senate amendment, but not the House bill, 
includes findings stating the impact of fully funding IDEA and 
amends the 1999 Omnibus Appropriations Act to allow LEAs to use 
class size reduction funds for IDEA part B.
      The Senate recedes with an amendment providing that, if a 
local educational agency has a class size in grades 1 through 3 
of 18 or fewer children, the local educational agency may use 
the funds made available for class-size reduction under the 
Department of Education Appropriations Act for fiscal year 1999 
for professional development without entering into a consortia.
      Currently, a local educational agency that is eligible 
for amounts less than the starting salary for a teacher must 
form a consortium in order to receive any class-size reduction 
funds. Under the conference agreement, such an agency would 
still have to form a consortium if it does not meet the 
criteria of having a class size in grades 1 through 3 of 18 or 
fewer children or if it plans to use the funds to reduce class 
size. Such an agency would not have to form a consortium if it 
has a class size in grades 1 through 3 of 18 or fewer children 
and plans to use the funds for professional development.
      In addition, the conferees note that--under current law--
any local educational agency that has a class size of 18 or 
fewer children may use class-size-reduction funds made 
available to take further class size reductions in grades 1 
through 3, to reduce class size in kindergarten, or other 
grades, or to carry out activities to improve teacher quality--
including professional development.

           flexibility to design dropout prevention programs

      39. The Senate amendment, but not the House bill includes 
findings stating that fully funding IDEA would free up funds at 
the local level to develop dropout programs to best address 
their needs and amends the 1999 Omnibus Appropriations Act to 
allow LEAs to use class size reduction funds for IDEA part B.
      The Senate recedes.

                    authorization of appropriations

      40. The Senate amendment, but not the House bill 
authorizes $150 million in additional funds for IDEA.
      The Senate recedes.

              flexibility to develop after school programs

      41. The Senate amendment, but not the House bill includes 
findings stating that fully funding IDEA would free up funds at 
the local level to develop after-school programs to best 
address their needs and amends the 1999 Omnibus Appropriations 
Act to allow LEAs to use class size reduction funds for IDEA 
part B.
      The Senate recedes.

               additional authorization of appropriations

      42. The Senate amendment, but not the House bill, 
authorizes $600 million in additional appropriations for IDEA 
part B.
      The Senate recedes.

    flexibility to develop programs to reduce social promotion and 
               establish school accountability procedures

      43. The Senate amendment, but not the House bill includes 
findings stating that fully funding IDEA would free up funds at 
the local level to develop programs to reduce social promotion, 
establish school accountability programs or any other programs 
to best address their needs and amends the 1999 Omnibus 
Appropriations Act to allow LEAs to use class size reduction 
funds for IDEA part B.
      The Senate recedes.

                    alternative educational setting

      44. The Senate amendment, but not the House bill, 
includes an amendment to IDEA that subjects a child with a 
disability to the discipline provisions if they possess a 
weapon at school, in addition to carrying a weapon to school 
(current law) and applies this new provision to conduct 
occurring not earlier than the date of enactment of this Act.
      The House recedes.

                further authorization of appropriations

      45. The Senate amendment, but not the House bill, 
authorizes $500 million in additional appropriations for IDEA 
part B.
      The Senate recedes.

                                   Bill Goodling,
                                   Peter Hoekstra,
                                   Michael N. Castle,
                                   James Greenwood,
                                   Mark Souder,
                                   Bob Schaffer,
                                 Managers on the Part of the House.

                                   Jim Jeffords,
                                   Judd Gregg,
                                   Bill Frist,
                                   Mike DeWine,
                                   Michael B. Enzi,
                                   Tim Hutchinson,
                                   Susan Collins,
                                   Sam Brownback,
                                   Chuck Hagel,
                                   Jeff Sessions,
                                   Ted Kennedy,
                                   Chris Dodd,
                                   Tom Harkin,
                                   Barbara A. Mikulski,
                                   Jeff Bingaman,
                                   Patty Murray,
                                   Jack Reed,
                                Managers on the Part of the Senate.

                                
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