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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1569 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1569

To improve the calculation of, the reporting of, and the accountability 
                for, secondary school graduation rates.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 17, 2009

  Mr. Scott of Virginia (for himself, Mr. Hinojosa, Mr. Grijalva, Mr. 
Fattah, Mr. Payne, Mr. Meeks of New York, Ms. Corrine Brown of Florida, 
 Mr. Polis of Colorado, Mr. Davis of Illinois, Mr. Conyers, Mr. Bishop 
  of Georgia, Mr. Honda, Ms. Clarke, Mr. Ortiz, Ms. Fudge, Ms. Lee of 
 California, and Mr. Thompson of Mississippi) introduced the following 
    bill; which was referred to the Committee on Education and Labor

_______________________________________________________________________

                                 A BILL

 
To improve the calculation of, the reporting of, and the accountability 
                for, secondary school graduation rates.

    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 ``Every Student Counts Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) To retain the competitive edge of the United States in 
        the world economy, it is essential that America's youth be 
        prepared for the jobs of today and for the jobs of the future. 
        Such jobs increasingly require a postsecondary education, and 
        almost 90 percent of the fastest growing and best paying jobs 
        require some postsecondary education according to a 2008 
        Department of Labor report.
            (2) Individuals without a secondary school diploma 
        experience higher rates of unemployment, incarceration, living 
        in poverty, and receiving public assistance than individuals 
        with at least a secondary school diploma.
            (3) According to the 2009 Center for Public Education 
        report ``Better late than never? Examining late high school 
        graduates'', on-time graduation with a regular secondary school 
        diploma leads to the best outcomes for students, and students 
        who graduate late with a regular secondary school diploma are 
        more likely to earn an associate's or a bachelor's degree, to 
        be employed full-time, and to obtain a job with retirement 
        benefits and health insurance than either secondary school 
        dropouts or GED recipients.
            (4) About 1,230,000 secondary school students, which is 
        approximately one-third of all secondary school students, fail 
        to graduate with their peers every year. According to the 
        Department of Education, the United States secondary school 
        graduation rate is the lowest the rate has been since 2002.
            (5) The graduation rates for historically disadvantaged 
        minority groups are far lower than that of their White peers. 
        Little more than half of all African-American and Hispanic 
        students will finish secondary school on time with a regular 
        secondary school diploma compared to over three-quarters of 
        White students.
            (6) Nearly 2,000 secondary schools (about 10 percent of all 
        secondary schools in the United States) produce about half of 
        the Nation's secondary school dropouts. In these schools, the 
        number of seniors is routinely 60 percent or less than the 
        number of freshmen 3 years earlier. While almost half of the 
        Nation's African-American students and nearly 40 percent of 
        Latino students attend these dropout factories, only 11 percent 
        of White students do.
            (7) The graduation rate calculations used by most States 
        for reporting and accountability are inconsistent and 
        misleading. Not only does this obscure the graduation rate 
        crisis, particularly for poor and minority students, but it 
        also makes it impossible to compare graduation rates across 
        schools, school districts, and States.
            (8) The average gap between State-reported and 
        independently reported graduation rates is approximately 12 
        percent.
            (9) In 2005, all 50 of the Nation's Governors signed the 
        National Governors Association's Graduation Rate Compact, 
        pledging to use a common, accurate graduation rate.
            (10) In 2008, the Secretary of Education released final 
        regulations that also require States to report a common 
        graduation rate calculation. However, since the Department of 
        Education did not specify in the regulations what graduation 
        rate goals and growth targets are appropriate and how States 
        should include 4-year rates and extended year rates in 
        calculating adequate yearly progress, it is necessary to 
        clarify these goals, targets and rates in order to create a 
        meaningful Federal accountability system for secondary schools.
            (11) The most accurate graduation rate calculations are 
        reliant on high-quality longitudinal data systems that track 
        individual student data from the time a student enters the 
        kindergarten through grade 12 educational system until the 
        student leaves the kindergarten through grade 12 educational 
        system. In 2008, 42 States had the 4 elements of a statewide 
        longitudinal data system that are necessary to calculate the 
        National Governor's Association Compact rate at the school 
        level.
            (12) Forty-nine States should have secondary school data 
        that will allow the States to use the National Governor's 
        Association Compact rate formula not later than school year 
        2011-2012.
            (13) An accountability system with meaningful graduation 
        rate goals--
                    (A) holds schools, school districts, and States 
                responsible for both student achievement and outcomes; 
                and
                    (B) ensures that low-performing students are not 
                unnecessarily held back or pushed out (encouraged to 
                leave school without a diploma).
            (14) Prior to the 2008 regulations, the amendments to the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 
        et seq.) made by the No Child Left Behind Act of 2001 (Public 
        Law 107-110) did not require consistent calculations, 
        meaningful goals, or disaggregation of graduation rates. 
        Without clear guidance from the Department of Education, most 
        secondary schools can continue to make adequate yearly progress 
        by making as little as 0.1 percent improvement or less in 
        secondary school graduation rates each year and can do so with 
        a consistent, or even growing, secondary school graduation gap.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to require consistent calculations and reporting of 
        secondary school graduation rates across schools, school 
        districts, and States;
            (2) to provide educators with critical information about 
        students' progress toward secondary school graduation; and
            (3) to ensure meaningful accountability for the improvement 
        of secondary school graduation rates for all students, 
        particularly those rates for poor and minority students.

SEC. 4. SECONDARY SCHOOL GRADUATION RATES.

    Subpart 1 of part A of title I of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6311 et seq.) is amended by inserting 
after section 1111 (20 U.S.C. 6311) the following:

``SEC. 1111A. SECONDARY SCHOOL GRADUATION RATES.

    ``(a) Definitions.--In this section:
            ``(1) Adjusted cohort; transferred in; transferred out.--
                    ``(A) In general.--Subject to subparagraphs (C)(ii) 
                through (F), the term `adjusted cohort' means the 
                difference of--
                            ``(i) the sum of--
                                    ``(I) the number of first-time 
                                ninth graders; plus
                                    ``(II) any students that 
                                transferred in to the cohort in any of 
                                grades 9 through 12; minus
                            ``(ii) any students removed from the 
                        cohort.
                    ``(B) Transferred in.--The term `transferred in' 
                when used with respect to a secondary school student, 
                means a student who enrolls after the beginning of the 
                entering cohort's first year in secondary school, up to 
                and including enrolling in grade 12.
                    ``(C) Transferred out.--
                            ``(i) In general.--The term `transferred 
                        out' when used with respect to a secondary 
                        school student, means a student who the 
                        secondary school or local educational agency 
                        confirms has transferred to another school or 
                        another educational program for which the 
                        student is expected to receive a regular 
                        secondary school diploma.
                            ``(ii) Confirmation requirements.--
                                    ``(I) Documentation required.--The 
                                confirmation of a student's transfer to 
                                another school or educational program 
                                described in clause (i) requires 
                                documentation from the receiving school 
                                or program that the student enrolled in 
                                the receiving school or program.
                                    ``(II) Lack of confirmation.--A 
                                student who was enrolled, but for whom 
                                there is no confirmation of transfer or 
                                completion, shall not be considered a 
                                transfer or an error, but shall remain 
                                in the cohort as a nongraduate for 
                                reporting and accountability purposes 
                                under this section.
                            ``(iii) Programs not providing credit.--A 
                        student enrolled in a GED or other alternative 
                        educational program that does not issue or 
                        provide credit toward the issuance of a regular 
                        secondary school diploma shall not be 
                        considered transferred out.
                    ``(D) Cohort removal.--To remove a student from a 
                cohort, a school or local educational agency shall 
                confirm that the student has transferred out, 
                emigrated, or is deceased.
                    ``(E) Treatment of other leavers and withdrawals.--
                A student who was retained in a grade, enrolled in a 
                GED program, aged-out of a secondary school or 
                secondary school program, or left secondary school for 
                any other reason, including expulsion, shall not be 
                considered transferred out, and shall remain in the 
                adjusted cohort.
                    ``(F) Special rule.--For those secondary schools 
                that start after grade 9, the cohort shall be 
                calculated based on the earliest secondary school grade 
                at the secondary school.
            ``(2) Alternative educational setting.--The term 
        `alternative educational setting' means--
                    ``(A) a secondary school or secondary school 
                educational program that--
                            ``(i) is designed for students who are 
                        under-credited or have dropped out of secondary 
                        school; and
                            ``(ii) awards a regular secondary school 
                        diploma; or
                    ``(B) a secondary school or secondary school 
                educational program designed to issue a regular 
                secondary school diploma concurrently with a 
                postsecondary degree or not more than 2 years of 
                college credit.
            ``(3) Cumulative graduation rate.--The term `cumulative 
        graduation rate' means, for each school year, the percent 
        obtained by calculating the product of--
                    ``(A) the result of--
                            ``(i) the sum of--
                                    ``(I) the number of students who--
                                            ``(aa) formed the adjusted 
                                        cohort 4 years earlier; and
                                            ``(bb) graduate in 4 years 
                                        or less with a regular 
                                        secondary school diploma (which 
                                        shall not include a GED or 
                                        other certificate of completion 
                                        or alternative to a diploma 
                                        except as provided in paragraph 
                                        (6)(B)); plus
                                    ``(II) the number of additional 
                                students from previous cohorts who 
                                graduate in more than 4 years with a 
                                regular secondary school diploma (which 
                                shall not include a GED or other 
                                certificate of completion or 
                                alternative to a diploma except as 
                                provided in paragraph (6)(B)); divided 
                                by
                            ``(ii) the sum of--
                                    ``(I) the number of students who 
                                formed the adjusted cohort for that 
                                graduating class 4 years earlier; plus
                                    ``(II) the number of additional 
                                student graduates described in clause 
                                (i)(II); multiplied by
                    ``(B) 100.
            ``(4) 4-year adjusted cohort graduation rate.--The term `4-
        year adjusted cohort graduation rate' means the percent 
        obtained by calculating the product of--
                    ``(A) the result of--
                            ``(i) the number of students who--
                                    ``(I) formed the adjusted cohort 4 
                                years earlier; and
                                    ``(II) graduate in 4 years or less 
                                with a regular secondary school diploma 
                                (which shall not include a GED or other 
                                certificate of completion or 
                                alternative to a diploma except as 
                                provided in paragraph (6)(B)); divided 
                                by
                            ``(ii) the number of students who formed 
                        the adjusted cohort for that graduating class 4 
                        years earlier; multiplied by
                    ``(B) 100.
            ``(5) On-track student.--The term `on-track student' means 
        a student who--
                    ``(A) has accumulated the number of credits 
                necessary to promote to the next grade, in accordance 
                with State and local educational agency policies; and
                    ``(B) has failed not more than 1 semester in 
                English or language arts, mathematics, science, or 
                social studies.
            ``(6) Regular secondary school diploma.--
                    ``(A) In general.--The term `regular secondary 
                school diploma' means the standard secondary school 
                diploma awarded to the preponderance of students in the 
                State that is fully aligned with State standards, or a 
                higher diploma. Such term shall not include GEDs, 
                certificates of attendance, or any lesser diploma 
                award.
                    ``(B) Special rule.--For a student who has a 
                significant cognitive disability and is assessed using 
                an alternate assessment aligned to an alternate 
                achievement standard, receipt of a regular secondary 
                school diploma or a State-defined alternate diploma 
                aligned with completion of the student's right to a 
                free and appropriate public education under the 
                Individuals with Disabilities Education Act (20 U.S.C. 
                1400 et seq.) shall be counted as graduating with a 
                regular secondary school diploma for the purposes of 
                this section, except that not more than 1 percent of 
                students served by the State or local educational 
                agency, as appropriate, shall be counted as graduates 
                with a regular secondary school diploma under this 
                subparagraph.
            ``(7) Under-credited student.--The term `under-credited 
        student' means a secondary school student who is a year or more 
        behind in the expected accumulation of credits or courses 
        toward an on-time graduation as determined by the relevant 
        local educational agency's and State educational agency's 
        secondary school graduation requirements for an on-time 
        graduation.
    ``(b) Calculating and Reporting Accurate Graduation Rates.--
            ``(1) Calculating graduation rates.--Not later than school 
        year 2010-2011, and every school year thereafter, each State 
        educational agency and local educational agency that is 
        assisted under this part shall calculate, using a statewide 
        longitudinal data system with individual student identifiers 
        for each school served by the State or local educational 
        agency, as the case may be--
                    ``(A) the 4-year adjusted cohort graduation rate; 
                and
                    ``(B) the cumulative graduation rate.
            ``(2) Calculation at school, lea, and state levels; 
        disaggregation.--The 4-year adjusted cohort graduation rate and 
        the cumulative graduation rate shall be calculated at the 
        school, local educational agency, and State levels in the 
        aggregate and disaggregated by race, ethnicity, gender, 
        disability status, migrant status, English proficiency, and 
        status as economically disadvantaged, except that such 
        disaggregation shall not be required in a case in which the 
        number of students in a subgroup is insufficient to yield 
        statistically reliable information or the results would reveal 
        personally identifiable information about an individual 
        student.
            ``(3) Reporting graduation rates.--Subject to paragraph 
        (4), not later than school year 2010-2011, and every school 
        year thereafter, each State educational agency, local 
        educational agency and school that is assisted under this part 
        shall report annually, as part of the State and local 
        educational agency report cards required under section 1111(h), 
        each of the following:
                    ``(A) 4-year adjusted cohort graduation rate.--The 
                4-year adjusted cohort graduation rate, in the 
                aggregate and disaggregated by each of the subgroups 
                described in paragraph (2).
                    ``(B) Cumulative graduation rate.--The cumulative 
                graduation rate, in the aggregate and disaggregated by 
                each of the subgroups described in paragraph (2).
                    ``(C) Number and percentage of students graduating 
                in more than 4 years.--The number and percentage of 
                secondary school students graduating in more than 4 
                years with a regular secondary school diploma as 
                described in subsection (a)(3)(A)(i)(II), disaggregated 
                by the number of years accounted for in the cumulative 
                graduation rate and by each of the subgroups described 
                in paragraph (2).
                    ``(D) Number and percentage of students removed 
                from cohort.--The number and percentage of secondary 
                school students who have been removed from the adjusted 
                cohort, in the aggregate and disaggregated by each of 
                the subgroups described in paragraph (2).
                    ``(E) Number and percentage of continuing 
                students.--The number and percentage of students from 
                each previous adjusted cohort that began 4 years or 
                more earlier who have not graduated from and are still 
                enrolled in secondary school.
            ``(4) Use of interim graduation rate.--In the case of a 
        State that does not have an individual student identifier 
        longitudinal data system, with respect to each graduation rate 
        calculation or reporting requirement under this section, the 
        State and local educational agencies and secondary schools in 
        the State shall temporarily carry out this section by using an 
        interim graduation rate calculation that meets the following 
        conditions:
                    ``(A) Number of graduates compared to number of 
                students.--The calculation shall measure or estimate 
                the number of secondary school graduates compared to 
                the number of students in the secondary school's 
                entering grade.
                    ``(B) Dropout data.--The calculation shall not use 
                dropout data.
                    ``(C) Regular secondary school diploma.--The 
                calculation shall count as graduates only those 
                students who receive a regular secondary school 
                diploma.
                    ``(D) Disaggregation.--The calculation shall be 
                disaggregated by each of the subgroups described in 
                paragraph (2).
                    ``(E) Annual basis and rate of growth.--The 
                calculation shall be used on an annual basis to 
                determine a rate of growth, as described in subsection 
                (c).
                    ``(F) Timeframe limitation.--The interim graduation 
                rate calculation may only be used through the end of 
                school year 2010-2011.
                    ``(G) Reporting use of interim graduation rate.--
                Each State that receives assistance under this part 
                shall describe in the State's plan submitted under 
                section 1111 the interim graduation rate used in 
                accordance with this paragraph.
            ``(5) Reporting on alternative settings.--Not later than 
        school year 2010-2011, and every school year thereafter, each 
        State educational agency and local educational agency that 
        receives assistance under this part and contains an alternative 
        education setting which establishes an alternative 4-year 
        completion requirement as described in subsection 
        (c)(3)(C)(iii), shall report annually as part of the State and 
        local educational agency report cards required under section 
        1111(h), the following:
                    ``(A) The name of each alternative education 
                setting that establishes an alternative 4-year 
                completion requirement.
                    ``(B) A description of the program provided at each 
                setting and the population served.
                    ``(C) The enrollment of such settings in the 
                aggregate and disaggregated by each of the subgroups 
                described in paragraph (2), including as a percent of 
                overall enrollment.
                    ``(D) Whether the setting is a new school or 
                setting.
                    ``(E) The alternative 4-year completion requirement 
                as described in subsection (c)(3)(C)(iii).
            ``(6) Reporting percent of on-track students.--Not later 
        than school year 2010-2011, and every school year thereafter, 
        every State educational agency, local educational agency, and 
        school that receives assistance under this part shall report 
        annually, as part of the State and local educational agency 
        report cards required under section 1111(h), the percent of on-
        track students for each secondary school grade served by the 
        State educational agency, local educational agency, and school, 
        respectively, other than the graduating grade for the secondary 
        school, in the aggregate and disaggregated by each of the 
        subgroups described in paragraph (2).
            ``(7) Reporting additional indicators.--
                    ``(A) In general.--A State may report additional 
                complementary indicators of secondary school 
                completion, such as--
                            ``(i) a college-ready graduation rate;
                            ``(ii) a dropout rate;
                            ``(iii) in-grade retention rates;
                            ``(iv) percentages of students receiving 
                        GEDs, certificates of completion, or 
                        alternatives to a diploma; and
                            ``(v) in the case of a State with exit 
                        examinations, students who have completed 
                        course requirements but failed a State exam 
                        required for secondary school graduation.
                    ``(B) Definitions for indicators.--The Secretary 
                shall promulgate and publish in the Federal Register 
                regulations containing definitions for the indicators 
                described in clauses (i), (ii), and (iii) of 
                subparagraph (A) that are consistent with the 
                definitions used by the National Center for Educational 
                Statistics, in order to ensure that the indicators are 
                comparable across schools and school districts within a 
                State.
                    ``(C) Prohibition.--For purposes of reporting or 
                accountability under this section, the additional 
                indicators shall not replace the 4-year adjusted cohort 
                graduation rate or the cumulative graduation rate.
                    ``(D) Rule of construction.--Nothing in this Act 
                shall be construed to prohibit a State from reporting 
                indicators of secondary school completion that are not 
                described in subparagraph (A).
            ``(8) Data anomalies.--
                    ``(A) In general.--When an individual student 
                record indicates a student was enrolled in more than 1 
                secondary school or a student record shows enrollment 
                in a secondary school but no subsequent information, 
                such student record shall be assigned to 1 adjusted 
                cohort for the purposes of calculating and reporting 
                school, local educational agency, and State 4-year 
                adjusted cohort graduation rates and cumulative 
                graduation rates under this subsection.
                    ``(B) Special rule.--A student who returns to 
                secondary school after dropping out of secondary 
                school, or receives a diploma from more than 1 school 
                or educational program served by any 1 local 
                educational agency, shall be counted--
                            ``(i) only once for purposes of reporting 
                        and accountability under this section; and
                            ``(ii) as part of the student's original 
                        adjusted cohort.
            ``(9) Monitoring of data collection.--Each State that 
        receives assistance under this part shall conduct regular 
        audits of data collection, reporting, and calculations by local 
        educational agencies in the State. The Secretary shall assist 
        States in their efforts to develop and retain the capacity for 
        collection, analysis, and public reporting of 4-year adjusted 
        cohort graduation rate and cumulative graduation rate data.
    ``(c) School, Local Educational Agency, and State Accountability.--
            ``(1) Graduation rate goal.--Each State that receives 
        assistance under this part shall seek to have all students 
        graduate from secondary school prepared for success in college 
        and work.
            ``(2) Graduation rate calculation.--Each State that 
        receives assistance under this part shall use aggregate and 
        disaggregated cumulative graduation rates as the additional 
        indicator described in section 1111(b)(2)(C)(vi) for the 
        purposes of determining each secondary school's and local 
        educational agency's adequate yearly progress.
            ``(3) Annual measurable objectives.--The Secretary shall 
        require a State, local educational agency, or school that 
        receives assistance under this part and has a cumulative 
        graduation rate below 90 percent in the aggregate or for any 
        subgroup described in subsection (b)(2), to increase the 
        cumulative graduation rate, in the aggregate or for such 
        subgroup, respectively, in order to make adequate yearly 
        progress under section 1111(b)(2), as follows:
                    ``(A) Baseline for cumulative graduation rates.--
                Subject to subparagraph (B), the cumulative graduation 
                rate calculated and reported in accordance with this 
                section for the first school year that begins after the 
                date of enactment of Every Student Counts Act shall 
                serve as the baseline graduation rate. Each school year 
                thereafter, cumulative graduation rates calculated at 
                the school, local educational agency, and State levels 
                in the aggregate and disaggregated by each subgroup 
                described in subsection (b)(2) shall be evaluated for 
                annual growth in accordance with subparagraph (C).
                    ``(B) Baseline adjustment.--In the case of a State 
                that uses an interim graduation rate, after the State 
                has implemented an individual student identifier 
                longitudinal data system and can calculate the 4-year 
                adjusted cohort graduation rate and the cumulative 
                graduation rate, but not later than the 2010-2011 
                school year, the State shall use the cumulative 
                graduation rate as the baseline graduation rate for 
                reporting and accountability under this section.
                    ``(C) Annual growth.--
                            ``(i) In general.--In order for a State, 
                        local educational agency, or school to make 
                        adequate yearly progress under section 
                        1111(b)(2), the State, local educational 
                        agency, or school, respectively, shall 
                        demonstrate increases in the cumulative 
                        graduation rate from the baseline graduation 
                        rate, in the aggregate and for each subgroup 
                        described in subsection (b)(2), by an average 
                        of 3 percent per school year, until the 
                        cumulative graduation rate, in the aggregate 
                        and for each such subgroup, equals or exceeds 
                        90 percent.
                            ``(ii) AYP not made.--A secondary school 
                        shall not be considered to have made adequate 
                        yearly progress under section 1111(b)(2) if--
                                    ``(I) the school's 4-year adjusted 
                                cohort graduation rate, in the 
                                aggregate or for any subgroup described 
                                in subsection (b)(2), falls below the 
                                cohort's initial baseline graduation 
                                rate or shows no improvement over a 4-
                                year period; or
                                    ``(II) fewer than 90 percent of the 
                                students included in the cumulative 
                                graduation rate, in the aggregate or 
                                for any subgroup described in 
                                subsection (b)(2), are students who 
                                graduate from secondary school in 4 
                                years.
                            ``(iii) Special rule.--A secondary school 
                        or secondary school educational program that is 
                        an alternative education setting may apply to 
                        the State to establish an alternative 4-year 
                        completion requirement for purposes of 
                        determinations under clause (ii)(II) if--
                                    ``(I) the secondary school or 
                                educational program submits to the 
                                State--
                                            ``(aa) a description of the 
                                        secondary school or educational 
                                        program; and
                                            ``(bb) an alternative 4-
                                        year completion requirement; 
                                        and
                                    ``(II) the State approves the use 
                                of the alternative 4-year completion 
                                requirement for such purposes.
            ``(4) Delayed applicability to schools.--Paragraphs (2) and 
        (3)(C) shall not apply to a secondary school until the 
        beginning of school year 2011-2012.
    ``(d) Reporting Requirement.--Not later than 90 days after the date 
of the enactment of the Every Student Counts Act, and annually 
thereafter, each State educational agency that receives assistance 
under this part shall submit to the Secretary, and make publicly 
available, a report on the implementation of this section. Such report 
shall include--
            ``(1) a description of each category, code, and the 
        corresponding definition that the State has authorized for 
        identifying, tracking, calculating, and publicly reporting 
        student status; and
            ``(2) if using an interim graduation rate pursuant to 
        subsection (b)(4), a description of the efforts of the State to 
        implement the cumulative graduation rate and the expected date 
        of implementation, which date shall not be later than the 
        beginning of school year 2011-2012.''.

SEC. 5. AYP CONFORMING AMENDMENTS.

    Section 1111(b)(2)(C) of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 6311(b)(2)(C)) is amended--
            (1) in clause (vi), by striking ``and'' after the 
        semicolon;
            (2) in clause (vii), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
                            ``(viii) complies with the requirements of 
                        section 1111A.''.
                                 <all>
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