Act for that year except for the purpose of at-
taining compliance with subparagraph (A).’’. 
(b) HIGH OBJECTIVE UNIFORM STATE STANDARD 
OF
EVALUATION
(HOUSSE).—Section 
9101(23)(C)(ii)(IV) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7801(23)(C)(ii)(IV)) 
is amended by inserting ‘‘, except as provided in para-
graph (4) of section 1119(a),’’ after ‘‘is’’. 
SEC. 3. ADEQUATE YEARLY PROGRESS. 
(a) MEASUREMENT OVER MORE THAN ONE YEAR.— 
Section 1111(b)(2)(I)(i) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6311(b)(2)(I)(i)) is 
amended by striking ‘‘if the percentage of students in that 
group’’ and all that follows through ‘‘; and’’ and inserting 
‘‘if— 
‘‘(I) the percentage of students in 
that group who did not meet or ex-
ceed the proficient level of academic 
achievement on the State assessments 
under paragraph (3) for that year de-
creased by 10 percent of that percent-
age from the preceding school year 
and that group made progress on one 
or more of the academic indicators de-
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scribed in subparagraph (C)(vi) or 
(vii); or 
‘‘(II) that group meets or exceeds 
the 
proficient 
level 
of 
academic 
achievement on the State assessments 
under paragraph (3) in the imme-
diately preceding year; and’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect and apply beginning with 
the first academic year that begins after the date of the 
enactment of this Act. 
(c) LIMITED ENGLISH PROFICIENT STUDENTS AND 
CHILDREN WITH DISABILITIES.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Education shall submit to Congress a report containing 
recommendations for increasing the percentage of limited 
English proficient students (as defined in section 
9101(25) of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 7801(25)) and children with disabil-
ities (as defined in section 602(3) of the Individuals with 
Disabilities Education Act (20 U.S.C. 1401(3)) who meet 
or exceed the State’s proficient level of academic achieve-
ment on the State assessments under paragraph (3) of 
section 1111(b) of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6311(b)). 
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(d) INDIVIDUALIZED EDUCATION PROGRAM.—Sec-
tion 1111(b)(2) of the Elementary and Secondary Edu-
cation Act of 1965 is amended by adding at the end the 
following new subparagraph: 
‘‘(L) STUDENTS WITH DISABILITIES.—In 
the case of a student with a disability, a stu-
dent may be tested at the student’s instruc-
tional level (as determined by the student’s in-
dividualized education program), rather than 
grade level, provided that the assessments from 
year to year test the student’s knowledge of an 
increasing breadth and level of difficulty to the 
State’s content standards. Academic assessment 
shall be determined in accordance with the stu-
dent’s individualized education program, and, 
with parental approval, that assessment shall be 
applied in determining adequate yearly progress 
for the school and the district concerned. A stu-
dent’s individualized education program may 
not allow testing at the same instructional level 
year after year.’’. 
(e) 
SINGLE
COUNT
OF
STUDENTS.—Section 
1111(b)(2) of the Elementary and Secondary Education 
Act of 1965 is further amended by adding at the end the 
following new subparagraph: 
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‘‘(M) SINGLE COUNT OF STUDENTS.—In 
meeting the definition of adequate yearly 
progress under subparagraph (C), a State may 
allow students counted in two or more groups 
described in subparagraph (C)(v)(II) to be 
counted as an equal fraction of one for each 
such group.’’. 
(f) NUANCED SANCTIONS.—Section 1111(b)(2) of 
the Elementary and Secondary Education Act of 1965 is 
further amended by adding at the end the following new 
subparagraph: 
‘‘(N) 
NUANCED
SANCTIONS.—When 
a 
school is not making adequate yearly progress 
by reason of a very small group of students (4 
or fewer), the sanctions under subparagraph 
(A)(iii) shall provide, as a first step, not that 
the school is designated ‘needs improvement’ 
but that the school redirect a portion of its 
funds under this Act to address the particular 
needs of that group, and must ensure that the 
group is taught by a highly qualified teacher.’’. 
(g) USE OF GROWTH MODELS.— 
(1) IN
GENERAL.—During the 2007–2008 
school year, the Secretary of Education shall con-
tinue to study growth models and to allow more 
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States, as well as local educational agencies, to use 
growth models to achieve adequate yearly progress. 
(2) SENSE OF CONGRESS.—It is the sense of 
Congress that the growth models referred to in para-
graph (1)— 
(A) should enable schools to provide evi-
dence that students have demonstrated accept-
able achievement for purposes of State pro-
ficiency requirements; and 
(B) should encourage innovative ideas for 
high schools to demonstrate students are 
achieving academic proficiency and attaining 
graduation. 
Æ 
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