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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 767 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 767

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

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                April 7 (legislative day, April 5), 2011

  Mr. Harkin introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 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) In order for the United States to retain a competitive 
        edge in the world economy, it is essential that youth in the 
        United States be prepared for the jobs of today and for the 
        jobs of the future. Such jobs increasingly require 
        postsecondary education, and according to a 2008 Department of 
        Labor report, almost 90 percent of the fastest growing and best 
        paying jobs require some postsecondary education.
            (2) Individuals without a regular secondary school diploma 
        experience higher rates of unemployment, incarceration, 
        poverty, and receipt of public assistance than individuals with 
        a regular 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, but students 
        who graduate late with a regular secondary school diploma are 
        still more likely to earn an associate or a baccalaureate 
        degree, to be employed full-time, and to obtain a job with 
        retirement benefits and health insurance than are either 
        students who drop out of secondary school or students who 
        receive a GED.
            (4) About 1,300,000 secondary school students, which is 
        approximately \1/3\ of all secondary school students in the 
        United States, fail to graduate with their peers every year. 
        According to the Department of Education, the United States 
        secondary school graduation rate is only 75 percent.
            (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 finish secondary school on time with a regular 
        secondary school diploma, while more than \3/4\ of White 
        students finish secondary school on time with a regular 
        secondary school diploma.
            (6) Nearly 2,000 secondary schools (about 12 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 34 percent of the 
        Nation's African-American students and nearly 28 percent of 
        Latino students attend these ``dropout factories'', only 16 
        percent of White students do.
            (7) The average gap between State-reported graduation rates 
        and independently reported graduation rates is approximately 11 
        percent.
            (8) 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.
            (9) 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.
            (10) State-set targets to make adequate yearly progress 
        under the Secretary of Education's 2008 regulations are 
        numerous in type and varied in aggressiveness. Twenty-eight 
        States have set a graduation rate goal of less than 90 percent. 
        At least 8 States have set status targets that do not take into 
        consideration progress toward the State-set goal. Furthermore, 
        only 2 of the 9 States that include extended year rates in 
        measures of adequate yearly progress do so in a way that places 
        a priority on graduating students within 4 years.
            (11) The most accurate graduation rate calculations rely on 
        high-quality longitudinal data systems that track individual 
        student data from the time a student enters kindergarten 
        through the time such student finishes 12th grade. Forty-eight 
        States plan to have data systems that will provide secondary 
        school data that will allow such States to use the graduation 
        rate formula specified in the Department of Education's 2008 
        final regulations not later than the 2011-2012 school year.
            (12) 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 encouraged to leave school 
                without a diploma.
            (13) 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 
        among subgroups of students.

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 
        student progress toward secondary school graduation; and
            (3) to ensure meaningful accountability for the improvement 
        of secondary school graduation rates for all students, 
        particularly 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; entering cohort; transferred into; 
        transferred out.--
                    ``(A) Adjusted cohort.--Subject to subparagraphs 
                (D)(ii) through (G), the term `adjusted cohort' means 
                the difference of--
                            ``(i) the sum of--
                                    ``(I) the entering cohort; plus
                                    ``(II) any students that 
                                transferred into the cohort in any of 
                                grades 9 through 12; minus
                            ``(ii) any students that are removed from 
                        the cohort as described in subparagraph (E).
                    ``(B) Entering cohort.--The term `entering cohort' 
                means the number of first-time 9th graders enrolled in 
                the secondary school 1 month after the start of the 
                secondary school's academic year.
                    ``(C) Transferred into.--The term `transferred 
                into' when used with respect to a secondary school 
                student, means a student who--
                            ``(i) was a first-time 9th grader during 
                        the same school year as the entering cohort; 
                        and
                            ``(ii) enrolls after the entering cohort is 
                        calculated as described in subparagraph (B).
                    ``(D) 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 
                        has confirmed has transferred--
                                    ``(I) to another school from which 
                                the student is expected to receive a 
                                regular secondary school diploma; or
                                    ``(II) to another educational 
                                program from 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 the student 
                                having transferred out, 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.
                    ``(E) Cohort removal.--To remove a student from a 
                cohort, a school or local educational agency shall 
                require documentation to confirm that the student has 
                transferred out, emigrated to another country, or is 
                deceased.
                    ``(F) 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.
                    ``(G) Special rule.--For those secondary schools 
                that start after grade 9, the entering cohort shall be 
                calculated 1 month after the start of the secondary 
                school's academic year in 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 
                postsecondary education 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) form the adjusted 
                                        cohort; 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 
                                form the adjusted cohort for that 
                                year's graduating class; 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 year's 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 be promoted to the next grade, in 
                accordance with State and local educational agency 
                policies;
                    ``(B) has a 90 percent or higher school attendance 
                rate;
                    ``(C) has failed not more than 1 semester in 
                English or language arts, mathematics, science, or 
                social studies; and
                    ``(D) has failed not more than any 2 credit-bearing 
                courses.
            ``(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 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 2011-2012, 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 and cross tabulation.--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 and cross 
        tabulated by race, ethnicity, gender, disability status, 
        migrant status, English proficiency, and status as economically 
        disadvantaged, and made public, except that such disaggregation 
        or cross tabulation 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) Statewide exit codes.--Not later than 1 year after 
        the enactment of the Every Student Counts Act, each State that 
        receives funds under this subpart shall--
                    ``(A) design a statewide exit code system, in 
                consultation with local educational agencies;
                    ``(B) require all local educational agencies to use 
                the statewide exit code system; and
                    ``(C) provide technical assistance and support to 
                local educational agencies to assist such agencies with 
                the implementation of the statewide exit code system.
            ``(4) Reporting graduation rates.--Subject to paragraph 
        (5), not later than school year 2011-2012, and every school 
        year thereafter, each State that is assisted under this part 
        shall ensure that the State, all local educational agencies in 
        the State, and all secondary schools in the State 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) 4-year adjusted cohort size and 4-year 
                graduates.--The final number of students in the 4-year 
                adjusted cohort and the total number of 4-year 
                graduates in the aggregate and disaggregated by each of 
                the subgroups described in paragraph (2).
                    ``(C) Cumulative graduation rate.--The cumulative 
                graduation rate, in the aggregate and disaggregated by 
                each of the subgroups described in paragraph (2).
                    ``(D) 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 it took the students to graduate 
                and by each of the subgroups described in paragraph 
                (2).
                    ``(E) Number and percentage of students removed 
                from cohort.--The number and percentage of secondary 
                school students who have been removed from the 4-year 
                adjusted cohort by exit code (as described in 
                subsection (b)(3)), in the aggregate and disaggregated 
                by each of the subgroups described in paragraph (2).
                    ``(F) 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.
            ``(5) 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 2012-2013.
                    ``(G) Reporting use of interim graduation rate.--
                Each State that receives assistance under this part and 
                does not have an individual student identifier 
                longitudinal data system shall describe in the State's 
                plan submitted under section 1111 the interim 
                graduation rate used in accordance with this paragraph.
            ``(6) Reporting on alternative settings.--Not later than 
        school year 2011-2012, 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 that establishes an alternative 4-year 
        completion requirement as described in subsection 
        (c)(4)(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 as described in subsection 
                (c)(4)(C)(iii).
                    ``(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)(4)(C)(iii).
            ``(7) Reporting percent of on-track students.--Not later 
        than school year 2011-2012, and every school year thereafter, 
        each 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).
            ``(8) 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;
                            ``(v) average attendance rates in the 
                        aggregate and disaggregated by each of the 
                        subgroups described in paragraph (2); and
                            ``(vi) in the case of a State with exit 
                        examinations, students who have completed 
                        course requirements but failed a State 
                        examination 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).
            ``(9) 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.
            ``(10) Monitoring of data collection.--Each State that 
        receives assistance under this part shall conduct regular 
        audits of the data collection, use of exit codes (as described 
        in subsection (b)(3)), reporting, and calculations that are 
        carried out 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--
                    ``(A) seek to have all students graduate from 
                secondary school prepared for success in college and 
                career; and
                    ``(B) meet the graduation rate goal as described in 
                this subsection.
            ``(2) Graduation rate calculation.--Each State that 
        receives assistance under this part shall use aggregate and 
        disaggregated 4-year adjusted cohort graduation rates or 
        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) Meeting graduation rate goal.--In order to meet the 
        graduation rate goal, a State, local educational agency, or 
        school shall demonstrate that it has a 4-year adjusted cohort 
        graduation rate or a cumulative graduation rate above 90 
        percent in the aggregate and for all subgroups described in 
        subsection (b)(2).
            ``(4) Annual measurable objectives.--The Secretary shall 
        require a State, local educational agency, or school that 
        receives assistance under this part and that has not met the 
        graduation rate goal in the aggregate or for any subgroup 
        described in subsection (b)(2) to increase the 4-year adjusted 
        cohort graduation rate or 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 4-year adjusted cohort and 
                cumulative graduation rates.--
                            ``(i) In general.--Subject to subparagraph 
                        (B), the 4-year adjusted cohort graduation rate 
                        calculated and reported in accordance with this 
                        section for the first school year that begins 
                        after the date of enactment of the Every 
                        Student Counts Act shall serve as the baseline 
                        4-year adjusted cohort graduation rate and the 
                        cumulative graduation rate calculated and 
                        reported in accordance with this section for 
                        such first school year shall serve as the 
                        baseline cumulative graduation rate.
                            ``(ii) Annual growth.--Each school year 
                        after the baseline year described in clause 
                        (i), 4-year adjusted cohort graduation rates 
                        and 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 2013-2014 
                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 4-year adjusted 
                        cohort graduation rate from the baseline 4 year 
                        adjusted cohort graduation rate or increases in 
                        the cumulative graduation rate from the 
                        baseline cumulative graduation rate, in the 
                        aggregate and for each subgroup described in 
                        subsection (b)(2), by an average of 3 
                        percentage points per school year, until the 4-
                        year adjusted cohort graduation rate or 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 
                                initial baseline 4-year adjusted cohort 
                                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) Alternative 4-year completion 
                        requirement.--Notwithstanding clause (ii), a 
                        secondary school or secondary school 
                        educational program that is an alternative 
                        education setting may apply to the State for a 
                        waiver of the requirement in clause (ii) that 
                        at least 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 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.
            ``(5) Delayed applicability to schools.--Paragraphs (2), 
        (3), and (4)(C) shall not apply to a secondary school until the 
        beginning of school year 2012-2013 or, in the case of a State 
        using an interim rate, shall not apply to a secondary school 
        until the first school year after such State adjusts its 
        baseline graduation rate as described in paragraph (4)(B).
    ``(d) Reporting Requirement.--Not later than 90 days after the date 
of 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, exit code, and 
        the corresponding definition that the State has authorized for 
        identifying, tracking, calculating, and publicly reporting 
        student status;
            ``(2) if using an interim graduation rate pursuant to 
        subsection (b)(5), a description of the efforts of the State to 
        implement the 4-year adjusted cohort graduation rate and the 
        cumulative graduation rate and the expected date of 
        implementation, which date shall be not later than the school 
        year 2013-2014; and
            ``(3) a description of waivers granted in the State under 
        subsection (c)(4)(C)(iii), which shall include--
                    ``(A) the total number of waivers granted in the 
                State under subsection (c)(4)(C)(iii);
                    ``(B) a description of each waiver granted;
                    ``(C) the number of students who are enrolled in 
                secondary schools or secondary school education 
                programs receiving such waivers; and
                    ``(D) the cumulative graduation rates of the 
                secondary schools or secondary school education 
                programs receiving such waivers.''

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.''.
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