```

[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2300 Referred in Senate (RFS)]

  1st Session
                                H. R. 2300

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            October 25, 1999

     Received; read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 AN ACT

 
   To allow a State to combine certain funds to improve the academic 
                    achievement of all its students.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Academic Achievement for All Act 
(Straight A's Act)''.

SEC. 2. PURPOSE.

    The purpose of this Act is to create options for States and 
communities--
            (1) to improve the academic achievement of all students, 
        and to focus the resources of the Federal Government upon such 
        achievement;
            (2) to improve teacher quality and subject matter mastery, 
        especially in math, reading, and science;
            (3) to empower parents and schools to effectively address 
        the needs of their children and students;
            (4) to give States and communities maximum freedom in 
        determining how to boost academic achievement and implement 
        education reforms;
            (5) to eliminate Federal barriers to implementing effective 
        State and local education programs;
            (6) to hold States and communities accountable for boosting 
        the academic achievement of all students, especially 
        disadvantaged children; and
            (7) to narrow achievement gaps between the lowest and 
        highest performing groups of students so that no child is left 
        behind.

SEC. 3. PERFORMANCE AGREEMENT.

    (a) Program Authorized.--Not more than 10 States may, at their 
option, execute a performance agreement with the Secretary under which 
the provisions of law described in section 4(a) shall not apply to such 
State except as otherwise provided in this Act.
    (b) Local Input.--States shall provide parents, teachers, and local 
schools and districts notice and opportunity to comment on any proposed 
performance agreement prior to submission to the Secretary as provided 
under general State law notice and comment provisions.
    (c) Approval of Performance Agreement.--A performance agreement 
submitted to the Secretary under this section shall be considered as 
approved by the Secretary within 60 days after receipt of the 
performance agreement unless the Secretary provides a written 
determination to the State that the performance agreement fails to 
satisfy the requirements of this Act before the expiration of the 60-
day period.
    (d) Terms of Performance Agreement.--Each performance agreement 
executed pursuant to this Act shall include the following provisions:
            (1) Term.--A statement that the term of the performance 
        agreement shall be 5 years.
            (2) Application of program requirements.--A statement that 
        no program requirements of any program included by the State in 
        the performance agreement shall apply, except as otherwise 
        provided in this Act.
            (3) List.--A list provided by the State of the programs 
        that it wishes to include in the performance agreement.
            (4) Use of funds to improve student achievement.--A 5-year 
        plan describing how the State intends to combine and use the 
        funds from programs included in the performance agreement to 
        advance the education priorities of the State, improve student 
        achievement, and narrow achievement gaps between students.
            (5) Accountability requirements.--If a State includes any 
        part of title I of the Elementary and Secondary Education Act 
        of 1965 in its performance agreement, the State shall include a 
        certification that the State has done the following:
                    (A)(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; or
                    (ii) developed and implemented a system to measure 
                the degree of change from one school year to the next 
                in student performance;
                    (B) developed and is implementing a statewide 
                accountability system that has been or is reasonably 
                expected to be effective in substantially increasing 
                the numbers and percentages of all students who meet 
                the State's proficient and advanced levels of 
                performance;
                    (C) established a system under which assessment 
                information may be disaggregated within each State, 
                local educational agency, and school by each major 
                racial and ethnic group, gender, English proficiency 
                status, migrant status, and by economically 
                disadvantaged students as compared to students who are 
                not economically disadvantaged (except that such 
                disaggregation shall not be required in cases in which 
                the number of students in any such group is 
                insufficient to yield statistically reliable 
                information or would reveal the identity of an 
                individual student);
                    (D) established specific, measurable, numerical 
                performance objectives for student achievement, 
                including a definition of performance considered to be 
                proficient by the State on the academic assessment 
                instruments described under subparagraph (A);
                    (E) developed and implemented a statewide system 
                for holding its local educational agencies and schools 
                accountable for student performance that includes--
                            (i) a procedure for identifying local 
                        educational agencies and schools in need of 
                        improvement, using the assessments described 
                        under subparagraph (A);
                            (ii) assisting and building capacity in 
                        local educational agencies and schools 
                        identified as in need of improvement to improve 
                        teaching and learning; and
                            (iii) implementing corrective actions after 
                        no more than 3 years if the assistance and 
                        capacity building under clause (ii) is not 
                        effective.
            (6) Performance goals.--
                    (A) Student academic achievement.--Each State shall 
                establish annual student performance goals for the 5-
                year term of the performance agreement that, at a 
                minimum--
                            (i) establish a single high standard of 
                        performance for all students;
                            (ii) take into account the progress of 
                        students from every local educational agency 
                        and school in the State;
                            (iii) are based primarily on the State's 
                        challenging content and student performance 
                        standards and assessments described under 
                        paragraph (5)(A);
                            (iv) include specific annual improvement 
                        goals in each subject and grade included in the 
                        State assessment system, which must include, at 
                        a minimum, reading or language arts and math;
                            (v) compares the proportions of students at 
                        the ``basic'', ``proficient'', and ``advanced'' 
                        levels of performance (as defined by the State) 
                        with the proportions of students at each of the 
                        three levels in the same grade in the previous 
                        school year;
                            (vi) includes annual numerical goals for 
                        improving the performance of each group 
                        specified in paragraph (5)(C) and narrowing 
                        gaps in performance between the highest and 
                        lowest performing students in accordance with 
                        section 10(b); and
                            (vii) requires all students in the State to 
                        make substantial gains in achievement.
                    (B) Additional indicators of performance.--A State 
                may identify in the performance agreement any 
                additional indicators of performance such as 
                graduation, dropout, or attendance rates.
                    (C) Consistency of performance measures.--A State 
                shall maintain, at a minimum, the same level of 
                challenging State student performance standards and 
                assessments throughout the term of the performance 
                agreement.
            (7) Fiscal responsibilities.--An assurance that the State 
        will use fiscal control and fund accounting procedures that 
        will ensure proper disbursement of, and accounting for, Federal 
        funds paid to the State under this Act.
            (8) Civil rights.--An assurance that the State will meet 
        the requirements of applicable Federal civil rights laws.
            (9) Private school participation.--
                    (A) Equitable participation.--An assurance that the 
                State will provide for the equitable participation of 
                students and professional staff in private schools.
                    (B) Application of bypass.--An assurance that 
                sections 14504, 14505, and 14506 of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 8894, 8895, 
                and 8896) shall apply to all services and assistance 
                provided under this Act in the same manner as they 
                apply to services and assistance provided in accordance 
                with section 14503 of such Act.
            (10) State financial participation.--An assurance that the 
        State will not reduce the level of spending of State funds for 
        elementary and secondary education during the term of the 
        performance agreement.
            (11) Annual report.--An assurance that not later than 1 
        year after the execution of the performance agreement, and 
        annually thereafter, each State shall disseminate widely to 
        parents and the general public, submit to the Secretary, 
        distribute to print and broadcast media, and post on the 
        Internet, a report that includes--
                    (A) student academic performance data, 
                disaggregated as provided in paragraph (5)(C); and
                    (B) a detailed description of how the State has 
                used Federal funds to improve student academic 
                performance and reduce achievement gaps to meet the 
                terms of the performance agreement.
    (e) Special Rule.--If a State does not include any part of title I 
of the Elementary and Secondary Education Act of 1965 in its 
performance agreement, the State shall--
            (1) certify that it has developed a system to measure the 
        academic performance of all students; and
            (2) establish challenging academic performance goals for 
        such other programs using academic assessment data described in 
        paragraph (5).
    (f) Amendment to Performance Agreement.--A State may submit an 
amendment to the performance agreement to the Secretary under the 
following circumstances:
            (1) Reduce scope of performance agreement.--Not later than 
        1 year after the execution of the performance agreement, a 
        State may amend the performance agreement through a request to 
        withdraw a program from such agreement. If the Secretary 
        approves the amendment, the requirements of existing law shall 
        apply for any program withdrawn from the performance agreement.
            (2) Expand scope of performance agreement.--Not later than 
        1 year after the execution of the performance agreement, a 
        State may amend its performance agreement to include additional 
        programs and performance indicators for which it will be held 
        accountable.
            (3) Approval of Amendment.--An amendment submitted to the 
        Secretary under this subsection shall be considered as approved 
        by the Secretary within 60 days after receipt of the amendment 
        unless the Secretary provides a written determination to the 
        State that the performance agreement if amended by the 
        amendment would fail to satisfy the requirements of this Act, 
        before the expiration of the 60-day period.

SEC. 4. ELIGIBLE PROGRAMS.

    (a) Eligible Programs.--The provisions of law referred to in 
section 3(a) except as otherwise provided in subsection (b), are as 
follows:
            (1) Part A of title I of the Elementary and Secondary 
        Education Act of 1965.
            (2) Part B of title I of the Elementary and Secondary 
        Education Act of 1965.
            (3) Part C of title I of the Elementary and Secondary 
        Education Act of 1965.
            (4) Part D of title I of the Elementary and Secondary 
        Education Act of 1965.
            (5) Part B of title II of the Elementary and Secondary 
        Education Act of 1965.
            (6) Section 3132 of title III of the Elementary and 
        Secondary Education Act of 1965.
            (7) Title IV of the Elementary and Secondary Education Act 
        of 1965.
            (8) Title VI of the Elementary and Secondary Education Act 
        of 1965.
            (9) Section 307 of the Department of Education 
        Appropriation Act of 1999.
            (10) Comprehensive school reform programs as authorized 
        under section 1502 of the Elementary and Secondary Education 
        Act of 1965 and described on pages 96-99 of the Joint 
        Explanatory Statement of the Committee of Conference included 
        in House Report 105-390 (Conference Report on the Departments 
        of Labor, Health and Human Services, and Education, and Related 
        Agencies Appropriations Act, 1998).
            (11) Part C of title VII of the Elementary and Secondary 
        Education Act of 1965.
            (12) Title III of the Goals 2000: Educate America Act.
            (13) Sections 115 and 116, and parts B and C of title I of 
        the Carl D. Perkins Vocational Technical Education Act.
            (14) Subtitle B of title VII of the Stewart B. McKinney 
        Homeless Assistance Act.
    (b) Allocations to States.--A State may choose to consolidate funds 
from any or all of the programs described in subsection (a) without 
regard to the program requirements of the provisions referred to in 
such subsection, except that the proportion of funds made available for 
national programs and allocations to each State for State and local 
use, under such provisions, shall remain in effect unless otherwise 
provided.
    (c) Uses of Funds.--Funds made available under this Act to a State 
shall be used for any elementary and secondary educational purposes 
permitted by State law of the participating State.

SEC. 5. WITHIN-STATE DISTRIBUTION OF FUNDS.

    (a) In General.--The distribution of funds from programs included 
in a performance agreement from a State to a local educational agency 
within the State shall be determined by the Governor of the State and 
the State legislature. In a State in which the constitution or State 
law designates another individual, entity, or agency to be responsible 
for education, the allocation of funds from programs included in the 
performance agreement from a State to a local educational agency within 
the State shall be determined by that individual, entity, or agency, in 
consultation with the Governor and State Legislature. Nothing in this 
section shall be construed to supersede or modify any provision of a 
State constitution or State law.
    (b) Local Input.--States shall provide parents, teachers, and local 
schools and districts notice and opportunity to comment on the proposed 
allocation of funds as provided under general State law notice and 
comment provisions.
    (c) Local Hold Harmless of Part A Title 1 Funds.--
            (1) In general.--In the case of a State that includes part 
        A of title I of the Elementary and Secondary Education Act of 
        1965 in the performance agreement, the agreement shall provide 
        an assurance that each local educational agency shall receive 
        under the performance agreement an amount equal to or greater 
        than the amount such agency received under part A of title I of 
        such Act in the fiscal year preceding the fiscal year in which 
        the performance agreement is executed.
            (2) Proportionate reduction.--If the amount made available 
        to the State from the Secretary for a fiscal year is 
        insufficient to pay to each local educational agency the amount 
        made available under part A of title I of the Elementary and 
        Secondary Education Act of 1965 to such agency for the 
        preceding fiscal year, the State shall reduce the amount each 
        local educational agency receives by a uniform percentage.

SEC. 6. LOCAL PARTICIPATION.

    (a) Nonparticipating State.--
            (1) In general.--If a State chooses not to submit a 
        performance agreement under this Act, any local educational 
        agency in such State is eligible, at its option, to submit to 
        the Secretary a performance agreement in accordance with this 
        section.
            (2) Agreement.--The terms of a performance agreement 
        between an eligible local educational agency and the Secretary 
        shall specify the programs to be included in the performance 
        agreement, as agreed upon by the State and the agency, from the 
        list under section 4(a).
    (b) State Approval.--When submitting a performance agreement to the 
Secretary, an eligible local educational agency described in subsection 
(a) shall provide written documentation from the State in which such 
agency is located that it has no objection to the agency's proposal for 
a performance agreement.
    (c) Application.--
            (1) In general.--Except as provided in this section, and to 
        the extent applicable, the requirements of this Act shall apply 
        to an eligible local educational agency that submits a 
        performance agreement in the same manner as the requirements 
        apply to a State.
            (2) Exceptions.--The following provisions shall not apply 
        to an eligible local educational agency:
                    (A) Within state distribution formula not 
                applicable.--The formula for the allocation of funds 
                under section 5 shall not apply.
                    (B) State set aside shall not apply.--The State set 
                aside for administrative funds in section 7 shall not 
                apply.

SEC. 7. LIMITATIONS ON STATE AND LOCAL EDUCATIONAL AGENCY 
              ADMINISTRATIVE EXPENDITURES.

    (a) In General.--Except as otherwise provided under subsection (b), 
a State that includes part A of title I of the Elementary and Secondary 
Education Act of 1965 in the performance agreement may use not more 
than 1 percent of such total amount of funds allocated to such State 
under the programs included in the performance agreement for 
administrative purposes.
    (b) Exception.--A State that does not include part A of title I of 
the Elementary and Secondary Education Act of 1965 in the performance 
agreement may use not more than 3 percent of the total amount of funds 
allocated to such State under the programs included in the performance 
agreement for administrative purposes.
    (c) Local Educational Agency.--A local educational agency 
participating in this Act under a performance agreement under section 6 
may not use for administrative purposes more than 4 percent of the 
total amount of funds allocated to such agency under the programs 
included in the performance agreement.

SEC. 8. PERFORMANCE REVIEW.

    (a) Mid-Term Performance Review.--If, during the 5-year term of the 
performance agreement, student achievement significantly declines for 
three consecutive years in the academic performance categories 
established in the performance agreement, the Secretary may, after 
notice and opportunity for a hearing, terminate the agreement
    (b) Failure To Meet Terms.--If at the end of the 5-year term of the 
performance agreement a State has not substantially met the performance 
goals submitted in the performance agreement, the Secretary shall, 
after notice and an opportunity for a hearing, terminate the 
performance agreement and the State shall be required to comply with 
the program requirements, in effect at the time of termination, for 
each program included in the performance agreement.
    (c) Penalty for Failure To Improve Student Performance.--If a State 
has made no progress toward achieving its performance goals by the end 
of the term of the agreement, the Secretary may reduce funds for State 
administrative costs for each program included in the performance 
agreement by up to 50 percent for each year of the 2-year period 
following the end of the term of the performance agreement.

SEC. 9. RENEWAL OF PERFORMANCE AGREEMENT.

    (a) Notification.--A State that wishes to renew its performance 
agreement shall notify the Secretary of its renewal request not less 
than 6 months prior to the end of the term of the performance 
agreement.
    (b) Renewal Requirements.--A State that has met or has 
substantially met its performance goals submitted in the performance 
agreement at the end of the 5-year term may reapply to the Secretary to 
renew its performance agreement for an additional 5-year period. Upon 
the completion of the 5-year term of the performance agreement or as 
soon thereafter as the State submits data required under the agreement, 
the Secretary shall renew, for an additional 5-year term, the 
performance agreement of any State that has met or has substantially 
met its performance goals.

SEC. 10. ACHIEVEMENT GAP REDUCTION REWARDS.

    (a) Closing the Gap Reward Fund.--
            (1) In general.--To reward States that make significant 
        progress in eliminating achievement gaps by raising the 
        achievement levels of the lowest performing students, the 
        Secretary shall set aside sufficient funds from the Fund for 
        the Improvement of Education under part A of title X of the 
        Elementary and Secondary Education Act of 1965 to grant a 
        reward to States that meet the conditions set forth in 
        subsection (b) by the end of their 5-year performance 
        agreement.
            (2) Reward amount.--The amount of the reward referred to in 
        paragraph (1) shall be not less than 5 percent of funds 
        allocated to the State during the first year of the performance 
        agreement for programs included in the agreement.
    (b) Conditions of Performance Reward.--Subject to paragraph (3), a 
State is eligible to receive a reward under this section as follows:
            (1) A State is eligible for such an award if the State 
        reduces by not less than 25 percent, over the 5-year term of 
        the performance agreement, the difference between the 
        percentage of highest and lowest performing groups of students 
        that meet the State's definition of ``proficient'' as 
        referenced in section 1111(b)(1)(D)(i)(II) of the Elementary 
        and Secondary Education Act of 1965.
            (2) A State is eligible for such an award if a State 
        increases the proportion of two or more groups of students 
        under section 3(d)(5)(C) that meet State proficiency standards 
        by 25 percent.
            (3) A State shall receive such an award if the following 
        requirements are met:
                    (A) Content areas.--The reduction in the 
                achievement gap or approvement in achievement shall 
                include not less than two content areas, one of which 
                shall be mathematics or reading.
                    (B) Grades tested.--The reduction in the 
                achievement gap or improvement in achievement shall 
                occur in at least two grade levels.
    (c) Rule of Construction.--Student achievement gaps shall not be 
considered to have been reduced in circumstances where the average 
academic performance of the highest performing quintile of students has 
decreased.

SEC. 11. STRAIGHT A'S PERFORMANCE REPORT.

    The Secretary shall make the annual State reports described in 
section 3 available to the House Committee on Education and the 
Workforce and the Senate Committee on Health, Education, Labor and 
Pensions not later than 60 days after the Secretary receives the 
report.

SEC. 12. APPLICABILITY OF TITLE XIV OF THE ELEMENTARY AND SECONDARY 
              EDUCATION ACT OF 1965.

    To the extent that provisions of title XIV of the Elementary and 
Secondary Education Act of 1965 are inconsistent with this Act, this 
Act shall be construed as superseding such provisions.

SEC. 13. APPLICABILITY OF GENERAL EDUCATION PROVISIONS ACT.

    To the extent that the provisions of the General Education 
Provisions Act are inconsistent with this Act, this Act shall be 
construed as superseding such provisions, except where relating to 
civil rights, withholdling of funds and enforcement authority, and 
family educational and privacy rights.

SEC. 14. APPLICABILITY TO HOME SCHOOLS.

    Nothing in this Act shall be construed to affect home schools 
whether or not a home school is treated as a private school or home 
school under State law.

SEC. 15. GENERAL PROVISIONS REGARDING NON-RECIPIENT, NON-PUBLIC 
              SCHOOLS.

    Nothing in this Act shall be construed to permit, allow, encourage, 
or authorize any Federal control over any aspect of any private, 
religious, or home school, whether or not a home school is treated as a 
private school or home school under State law.

SEC. 16. DEFINITIONS.

    For the purpose of this Act:
            (1) All students.--The term ``all students'' means all 
        students attending public schools or charter schools that are 
        participating in the State's accountability and assessment 
        system.
            (2) All schools.--The term ``all schools'' means all 
        schools that are participating in the State's accountability 
        and assessment system.
            (3) Local educational agency.--The term ``local educational 
        agency'' has the same meaning given such term in section 14101 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 8801).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (5) State.--The term ``State'' means each of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, 
        Guam, the United States Virgin Islands, the Commonwealth of the 
        Northern Mariana Islands, and American Samoa.

SEC. 17. EFFECTIVE DATE.

    This Act shall take effect with respect to funds appropriated for 
the fiscal year beginning October 1, 2000.

            Passed the House of Representatives October 21, 1999.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.
```