H. R. 1—444
‘‘(D) pregnant and parenting teenagers are at high
risk for dropping out of school and existing dropout preven-
tion programs do not adequately address the needs of such
teenagers;
‘‘(4) efforts to improve the quality of public education also
must include efforts to ensure equal access to quality education
programs for all women and girls;
‘‘(5) Federal support should address not only research and
development of innovative model curricula and teaching and
learning strategies to promote gender equity, but should also
assist schools and local communities implement gender equi-
table practices;
‘‘(6) Federal assistance for gender equity must be tied to
systemic reform, involve collaborative efforts to implement
effective gender practices at the local level, and encourage
parental participation; and
‘‘(7) excellence in education, high educational achievements
and standards, and the full participation of women and girls
in American society, cannot be achieved without educational
equity for women and girls.
‘‘SEC. 5612. STATEMENT OF PURPOSE.
‘‘It is the purpose of this subpart—
‘‘(1) to promote gender equity in education in the United
States;
‘‘(2) to provide financial assistance to enable educational
agencies and institutions to meet the requirements of title
IX of the Educational Amendments of 1972; and
‘‘(3) to promote equity in education for women and girls
who suffer from multiple forms of discrimination based on
sex, race, ethnic origin, limited English proficiency, disability,
or age.
‘‘SEC. 5613. PROGRAMS AUTHORIZED.
‘‘(a) IN GENERAL.—The Secretary is authorized—
‘‘(1) to promote, coordinate, and evaluate gender equity
policies, programs, activities, and initiatives in all Federal edu-
cation programs and offices;
‘‘(2) to develop, maintain, and disseminate materials,
resources, analyses, and research relating to education equity
for women and girls;
‘‘(3) to provide information and technical assistance to
assure the effective implementation of gender equity programs;
‘‘(4) to coordinate gender equity programs and activities
with other Federal agencies with jurisdiction over education
and related programs;
‘‘(5) to assist the Assistant Secretary of the Office of Edu-
cational Research and Improvement in identifying research
priorities related to education equity for women and girls; and
‘‘(6) to perform any other activities consistent with
achieving the purposes of this subpart.
‘‘(b) GRANTS AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary is authorized to award
grants to, and enter into contracts and cooperative agreements
with, public agencies, private nonprofit agencies, organizations,
institutions, student groups, community groups, and individ-
uals, for a period not to exceed 4 years, to—
H. R. 1—445
‘‘(A) provide grants to develop model equity programs;
and
‘‘(B) provide funds for the implementation of equity
programs in schools throughout the Nation.
‘‘(2) SUPPORT AND TECHNICAL ASSISTANCE.—To achieve the
purposes of this subpart, the Secretary is authorized to provide
support and technical assistance—
‘‘(A) to implement effective gender-equity policies and
programs at all educational levels, including—
‘‘(i) assisting educational agencies and institutions
to implement policies and practices to comply with
title IX of the Education Amendments of 1972;
‘‘(ii) training for teachers, counselors, administra-
tors, and other school personnel, especially preschool
and elementary school personnel, in gender equitable
teaching and learning practices;
‘‘(iii) leadership training for women and girls to
develop professional and marketable skills to compete
in the global marketplace, improve self-esteem, and
benefit from exposure to positive role models;
‘‘(iv) school-to-work transition programs, guidance
and counseling activities, and other programs to
increase opportunities for women and girls to enter
a technologically demanding workplace and, in par-
ticular, to enter highly skilled, high paying careers
in which women and girls have been underrepresented;
‘‘(v) enhancing educational and career opportuni-
ties for those women and girls who suffer multiple
forms of discrimination, based on sex, and on race,
ethnic origin, limited English proficiency, disability,
socioeconomic status, or age;
‘‘(vi) assisting pregnant students and students
rearing children to remain in or to return to secondary
school, graduate, and prepare their preschool children
to start school;
‘‘(vii) evaluating exemplary model programs to
assess the ability of such programs to advance edu-
cational equity for women and girls;
‘‘(viii) introduction into the classroom of textbooks,
curricula, and other materials designed to achieve
equity for women and girls;
‘‘(ix) programs and policies to address sexual
harassment and violence against women and girls and
to ensure that educational institutions are free from
threats to the safety of students and personnel;
‘‘(x) nondiscriminatory tests of aptitude and
achievement and of alternative assessments that elimi-
nate biased assessment instruments from use;
‘‘(xi) programs to increase educational opportuni-
ties, including higher education, vocational training,
and other educational programs for low-income women,
including underemployed and unemployed women, and
women receiving assistance under a State program
funded under part A of title IV of the Social Security
Act;
‘‘(xii) programs to improve representation of
women in educational administration at all levels; and
H. R. 1—446
‘‘(xiii) 
planning, 
development, 
and 
initial
implementation of—
‘‘(I) comprehensive institutionwide or district-
wide evaluation to assess the presence or absence
of gender equity in educational settings;
‘‘(II) comprehensive plans for implementation
of equity programs in State educational agencies
and local educational agencies and institutions of
higher education, including community colleges;
and
‘‘(III) innovative approaches to school-commu-
nity partnerships for educational equity; and
‘‘(B) for research and development, which shall be
coordinated with each of the research institutes of the
Office of Educational Research and Improvement to avoid
duplication of research efforts, designed to advance gender
equity nationwide and to help make policies and practices
in educational agencies and institutions, and local commu-
nities, gender equitable, including—
‘‘(i) research and development of innovative strate-
gies and model training programs for teachers and
other education personnel;
‘‘(ii) the development of high-quality and chal-
lenging assessment instruments that are nondiscrim-
inatory;
‘‘(iii) the development and evaluation of model cur-
ricula, textbooks, software, and other educational mate-
rials to ensure the absence of gender stereotyping and
bias;
‘‘(iv) the development of instruments and proce-
dures that employ new and innovative strategies to
assess whether diverse educational settings are gender
equitable;
‘‘(v) the development of instruments and strategies
for evaluation, dissemination, and replication of prom-
ising or exemplary programs designed to assist local
educational agencies in integrating gender equity in
their educational policies and practices;
‘‘(vi) updating high-quality educational materials
previously developed through awards made under this
subpart;
‘‘(vii) the development of policies and programs
to address and prevent sexual harassment and violence
to ensure that educational institutions are free from
threats to safety of students and personnel;
‘‘(viii) the development and improvement of pro-
grams and activities to increase opportunity for women,
including continuing educational activities, vocational
education, and programs for low-income women,
including underemployed and unemployed women, and
women receiving assistance under the State program
funded under part A of title IV of the Social Security
Act; and
‘‘(ix) the development of guidance and counseling
activities, 
including 
career 
education 
programs,
designed to ensure gender equity.
H. R. 1—447
‘‘SEC. 5614. APPLICATIONS.
‘‘An application under this subpart shall—
‘‘(1) set forth policies and procedures that will ensure a
comprehensive evaluation of the activities assisted under this
subpart, including an evaluation of the practices, policies, and
materials used by the applicant and an evaluation or estimate
of the continued significance of the work of the project following
completion of the award period;
‘‘(2) demonstrate how the applicant will address perceptions
of gender roles based on cultural differences or stereotypes;
‘‘(3) for applications for assistance under section 5613(b)(1),
demonstrate how the applicant will foster partnerships and,
where applicable, share resources with State educational agen-
cies, local educational agencies, institutions of higher education,
community-based 
organizations 
(including 
organizations
serving 
women), 
parent, 
teacher, 
and 
student 
groups,
businesses, or other recipients of Federal educational funding
which may include State literacy resource centers;
‘‘(4) for applications for assistance under section 5613(b)(1),
demonstrate how parental involvement in the project will be
encouraged; and
‘‘(5) for applications for assistance under section 5613(b)(1),
describe plans for continuation of the activities assisted under
this subpart with local support following completion of the
grant period and termination of Federal support under this
subpart.
‘‘SEC. 5615. CRITERIA AND PRIORITIES.
‘‘(a) CRITERIA AND PRIORITIES.—
‘‘(1) IN GENERAL.—The Secretary shall establish separate
criteria and priorities for awards under paragraphs (1) and
(2) of section 5613(b) to ensure that funds under this subpart
are used for programs that most effectively will achieve the
purposes of this subpart.
‘‘(2) CRITERIA.—The criteria described in paragraph (1) may
include the extent to which the activities assisted under this
subpart—
‘‘(A) address the needs of women and girls of color
and women and girls with disabilities;
‘‘(B) meet locally defined and documented educational
equity needs and priorities, including compliance with title
IX of the Education Amendments of 1972;
‘‘(C) are a significant component of a comprehensive
plan for educational equity and compliance with title IX
of the Education Amendments of 1972 in the particular
school district, institution of higher education, vocational-
technical institution, or other educational agency or institu-
tion; and
‘‘(D) implement an institutional change strategy with
long-term impact that will continue as a central activity
of the applicant after the grant under this subpart has
terminated.
‘‘(b) PRIORITIES.—In awarding grants under this subpart, the
Secretary may give special consideration to applications—
‘‘(1) submitted by applicants that have not received assist-
ance under this subpart or this subpart’s predecessor authori-
ties;
H. R. 1—448
‘‘(2) for projects that will contribute significantly to directly
improving teaching and learning practices in the local commu-
nity; and
‘‘(3) for projects that will—
‘‘(A) 
provide 
for 
a 
comprehensive 
approach 
to
enhancing gender equity in educational institutions and
agencies;
‘‘(B) draw on a variety of resources, including the
resources of local educational agencies, community-based
organizations, institutions of higher education, and private
organizations;
‘‘(C) implement a strategy with long-term impact that
will continue as a central activity of the applicant after
the grant under this subpart has terminated;
‘‘(D) address issues of national significance that can
be duplicated; and
‘‘(E) address the educational needs of women and girls
who suffer multiple or compound discrimination based on
sex and on race, ethnic origin, disability, or age.
‘‘(c) SPECIAL RULE.—To the extent feasible, the Secretary shall
ensure that grants awarded under this subpart for each fiscal
year address—
‘‘(1) all levels of education, including preschool, elementary
and secondary education, higher education, vocational edu-
cation, and adult education;
‘‘(2) all regions of the United States; and
‘‘(3) urban, rural, and suburban educational institutions.
‘‘(d) COORDINATION.—Research activities supported under this
subpart—
‘‘(1) shall be carried out in consultation with the Office
of Educational Research and Improvement to ensure that such
activities are coordinated with and enhance the research and
development activities supported by the Office; and
‘‘(2) may include collaborative research activities which
are jointly funded and carried out with the Office of Educational
Research and Improvement.
‘‘(e) LIMITATION.—Nothing in this subpart shall be construed
as prohibiting men and boys from participating in any programs
or activities assisted with funds under this subpart.
‘‘SEC. 5616. REPORT.
‘‘Not later than January 1, 2006, the Secretary shall submit
to the President and Congress a report on the status of educational
equity for girls and women in the Nation.
‘‘SEC. 5617. ADMINISTRATION.
‘‘(a) EVALUATION AND DISSEMINATION.—Not later than January
1, 2005, the Secretary shall evaluate and disseminate materials
and programs developed under this subpart and shall report to
Congress regarding such evaluation materials and programs.
‘‘(b) PROGRAM OPERATIONS.—The Secretary shall ensure that
the activities assisted under this subpart are administered within
the Department by a person who has recognized professional quali-
fications and experience in the field of gender equity education.
H. R. 1—450
and local educational agencies are held accountable for results,
such as the following:
‘‘(A) Developing challenging State academic content
and student academic achievement standards and aligned
assessments in academic subjects for which standards and
assessments are not required by section 1111(b).
‘‘(B) Developing or improving assessments of English
language proficiency necessary to comply with section
1111(b)(7).
‘‘(C) Ensuring the continued validity and reliability
of State assessments.
‘‘(D) Refining State assessments to ensure their contin-
ued alignment with the State’s academic content standards
and to improve the alignment of curricula and instructional
materials.
‘‘(E) Developing multiple measures to increase the reli-
ability and validity of State assessment systems.
‘‘(F) Strengthening the capacity of local educational
agencies and schools to provide all students the opportunity
to increase educational achievement, including carrying out
professional development activities aligned with State stu-
dent academic achievement standards and assessments.
‘‘(G) Expanding the range of accommodations available
to students with limited English proficiency and students
with disabilities to improve the rates of inclusion of such
students, including professional development activities
aligned with State academic achievement standards and
assessments.
‘‘(H) Improving the dissemination of information on
student achievement and school performance to parents
and the community, including the development of informa-
tion and reporting systems designed to identify best edu-
cational practices based on scientifically based research
or to assist in linking records of student achievement,
length of enrollment, and graduation over time.
‘‘SEC. 6112. GRANTS FOR ENHANCED ASSESSMENT INSTRUMENTS.
‘‘(a) GRANT PROGRAM AUTHORIZED.—From funds made available
to carry out this subpart, the Secretary shall award, on a competi-
tive basis, grants to State educational agencies that have submitted
an application at such time, in such manner, and containing such
information as the Secretary may require, which demonstrate to
the satisfaction of the Secretary, that the requirements of this
section will be met, for the following:
‘‘(1) To enable States (or consortia of States) to collaborate
with institutions of higher education, other research institu-
tions, or other organizations to improve the quality, validity,
and reliability of State academic assessments beyond the
requirements for such assessments described in section
1111(b)(3).
‘‘(2) To measure student academic achievement using mul-
tiple measures of student academic achievement from multiple
sources.
‘‘(3) To chart student progress over time.
‘‘(4) To evaluate student academic achievement through
the development of comprehensive academic assessment
H. R. 1—451
instruments, such as performance and technology-based aca-
demic assessments.
‘‘(b) APPLICATION.—Each State wishing to apply for funds under
this section shall include in its State plan under part A of title
I such information as the Secretary may require.
‘‘(c) ANNUAL REPORT.—Each State educational agency receiving
a grant under this section shall submit an annual report to the
Secretary describing its activities, and the result of those activities,
under the grant.
‘‘SEC. 6113. FUNDING.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS.—
For the purpose of administering the State assessments under
the National Assessment of Educational Progress, there are
authorized to be appropriated $72,000,000 for fiscal year 2002,
and such sums as may be necessary for each of the 5 succeeding
fiscal years.
‘‘(2) STATE ASSESSMENTS AND RELATED ACTIVITIES.—For the
purpose of carrying out this subpart, there are authorized to
be appropriated $490,000,000 for fiscal year 2002, and such
sums as may be necessary for each of the 5 succeeding fiscal
years.
‘‘(b) ALLOTMENT OF APPROPRIATED FUNDS.—
‘‘(1) IN GENERAL.—From amounts made available for each
fiscal year under subsection (a)(2) that are equal to or less
than the amount described in section 1111(b)(3)(D) (hereinafter
in this subsection referred to as the ‘trigger amount’), the
Secretary shall—
‘‘(A) reserve one-half of 1 percent for the Bureau of
Indian Affairs;
‘‘(B) reserve one-half of 1 percent for the outlying areas;
and
‘‘(C) from the remainder, allocate to each State an
amount equal to—
‘‘(i) $3,000,000; and
‘‘(ii) with respect to any amounts remaining after
the allocation is made under clause (i), an amount
that bears the same relationship to such total
remaining amounts as the number of students ages
5 through 17 in the State (as determined by the Sec-
retary on the basis of the most recent satisfactory
data) bears to the total number of such students in
all States.
‘‘(2) REMAINDER.—Any amounts remaining for a fiscal year
after the Secretary carries out paragraph (1) shall be made
available as follows:
‘‘(A)(i) To award funds under section 6112 to States
according to the quality, needs, and scope of the State
application under that section.
‘‘(ii) In determining the grant amount under clause
(i), the Secretary shall ensure that a State’s grant shall
include an amount that bears the same relationship to
the total funds available under this paragraph for the
fiscal year as the number of students ages 5 through 17
in the State (as determined by the Secretary on the basis
H. R. 1—452
of the most recent satisfactory data) bears to the total
number of such students in all States.
‘‘(B) Any amounts remaining after the Secretary
awards funds under subparagraph (A) shall be allocated
to each State that did not receive a grant under such
subparagraph, in an amount that bears the same relation-
ship to the total funds available under this subparagraph
as the number of students ages 5 through 17 in the State
(as determined by the Secretary on the basis of the most
recent satisfactory data) bears to the total number of such
students in all States.
‘‘(c) STATE DEFINED.—In this section, the term ‘State’ means
each of the 50 States, the District of Columbia, and the Common-
wealth of Puerto Rico.
‘‘Subpart 2—Funding Transferability for State and
Local Educational Agencies
‘‘SEC. 6121. SHORT TITLE.
‘‘This subpart may be cited as the ‘State and Local Transfer-
ability Act’.
‘‘SEC. 6122. PURPOSE.
‘‘The purpose of this subpart is to allow States and local edu-
cational agencies the flexibility—
‘‘(1) to target Federal funds to Federal programs that most
effectively address the unique needs of States and localities;
and
‘‘(2) to transfer Federal funds allocated to other activities
to allocations for certain activities authorized under title I.
‘‘SEC. 6123. TRANSFERABILITY OF FUNDS.
‘‘(a) TRANSFERS BY STATES.—
‘‘(1) IN GENERAL.—In accordance with this subpart, a State
may transfer not more than 50 percent of the nonadministrative
State funds (including funds transferred under paragraph (2))
allotted to the State for use for State-level activities under
the following provisions for a fiscal year to one or more of
the State’s allotments for such fiscal year under any other
of such provisions:
‘‘(A) Section 2113(a)(3).
‘‘(B) Section 2412(a)(1).
‘‘(C) Subsections (a)(1) (with the agreement of the Gov-
ernor) and (c)(1) of section 4112 and section 4202(c)(3).
‘‘(D) Section 5112(b).
‘‘(2) ADDITIONAL FUNDS FOR TITLE I.—In accordance with
this subpart and subject to the 50 percent limitation described
in paragraph (1), a State may transfer any funds allotted to
the State under a provision listed in paragraph (1) to its allot-
ment under title I.
‘‘(b) TRANSFERS BY LOCAL EDUCATIONAL AGENCIES.—
‘‘(1) AUTHORITY TO TRANSFER FUNDS.—
‘‘(A) IN GENERAL.—In accordance with this subpart,
a local educational agency (except a local educational
agency identified for improvement under section 1116(c)
or subject to corrective action under section 1116(c)(9))
H. R. 1—453
may transfer not more than 50 percent of the funds allo-
cated to it (including funds transferred under subparagraph
(C)) under each of the provisions listed in paragraph (2)
for a fiscal year to one or more of its allocations for such
fiscal year under any other provision listed in paragraph
(2).
‘‘(B) AGENCIES
IDENTIFIED
FOR
IMPROVEMENT.—In
accordance with this subpart, a local educational agency
identified for improvement under section 1116(c) may
transfer not more than 30 percent of the funds allocated
to it (including funds transferred under subparagraph (C))
under each of the provisions listed in paragraph (2) for
a fiscal year—
‘‘(i) to its allocation for school improvement for
such fiscal year under section 1003; or
‘‘(ii) to any other allocation for such fiscal year
if such transferred funds are used only for local edu-
cational agency improvement activities consistent with
section 1116(c).
‘‘(C) ADDITIONAL FUNDS FOR TITLE I.—In accordance
with this subpart and subject to the percentage limitation
described in subparagraph (A) or (B), as applicable, a local
educational agency may transfer funds allocated to such
agency under any of the provisions listed in paragraph
(2) for a fiscal year to its allocation for part A of title
I for that fiscal year.
‘‘(2) APPLICABLE PROVISIONS.—A local educational agency
may transfer funds under subparagraph (A), (B), or (C) of
paragraph (1) from allocations made under each of the following
provisions:
‘‘(A) Section 2121.
‘‘(B) Section 2412(a)(2)(A).
‘‘(C) Section 4112(b)(1).
‘‘(D) Section 5112(a).
‘‘(c) NO TRANSFER OF TITLE I FUNDS.—A State or a local edu-
cational agency may not transfer under this subpart to any other
program any funds allotted or allocated to it for part A of title
I.
‘‘(d) MODIFICATION
OF PLANS
AND APPLICATIONS; NOTIFICA-
TION.—
‘‘(1) STATE TRANSFERS.—Each State that makes a transfer
of funds under this section shall—
‘‘(A) modify, to account for such transfer, each State
plan, or application submitted by the State, to which such
funds relate;
‘‘(B) not later than 30 days after the date of such
transfer, submit a copy of such modified plan or application
to the Secretary; and
‘‘(C) not later than 30 days before the effective date
of such transfer, notify the Secretary of such transfer.
‘‘(2) LOCAL TRANSFERS.—Each local educational agency that
makes a transfer of funds under this section shall—
‘‘(A) modify, to account for such transfer, each local
plan, or application submitted by the agency, to which
such funds relate;
H. R. 1—454
‘‘(B) not later than 30 days after the date of such
transfer, submit a copy of such modified plan or application
to the State; and
‘‘(C) not later than 30 days before the effective date
of such transfer, notify the State of such transfer.
‘‘(e) APPLICABLE RULES.—
‘‘(1) IN GENERAL.—Except as otherwise provided in this
subpart, funds transferred under this section are subject to
each of the rules and requirements applicable to the funds
under the provision to which the transferred funds are trans-
ferred.
‘‘(2) CONSULTATION.—Each State educational agency or
local educational agency that transfers funds under this section
shall conduct consultations in accordance with section 9501,
if such transfer transfers funds from a program that provides
for the participation of students, teachers, or other educational
personnel, from private schools.
‘‘Subpart 3—State and Local Flexibility
Demonstration
‘‘SEC. 6131. SHORT TITLE.
‘‘This subpart may be cited as the ‘State and Local Flexibility
Demonstration Act’.
‘‘SEC. 6132. PURPOSE.
‘‘The purpose of this subpart is to create options for selected
State educational agencies and local educational agencies—
‘‘(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 mathematics, reading, and science;
‘‘(3) to better empower parents, educators, administrators,
and schools to effectively address the needs of their children
and students;
‘‘(4) to give participating State educational agencies and
local educational agencies greater flexibility in determining how
to increase their students’ academic achievement and imple-
ment education reforms in their schools;
‘‘(5) to eliminate barriers to implementing effective State
and local education reform, while preserving the goals of oppor-
tunity for all students and accountability for student progress;
‘‘(6) to hold participating State educational agencies and
local educational agencies accountable for increasing the aca-
demic achievement of all students, especially disadvantaged
students; and
‘‘(7) to narrow achievement gaps between the lowest and
highest achieving groups of students so that no child is left
behind.
‘‘SEC. 6133. GENERAL PROVISION.
‘‘For purposes of this subpart, any State that is one local
educational agency shall be considered a State educational agency
and not a local educational agency.
H. R. 1—457
Secretary, distribute to print and broadcast media, and
post on the Internet, a report, which shall include a detailed
description of how the State educational agency, and the
local educational agencies with which the State educational
agency enters into performance agreements, used the funds
consolidated under the grant of authority to make adequate
yearly progress and advance the education priorities of
the State and local educational agencies in the State.
‘‘(2) PROPOSED
PERFORMANCE
AGREEMENTS
WITH
LOCAL
EDUCATIONAL AGENCIES.—
‘‘(A) IN
GENERAL.—A State educational agency that
wishes to receive flexibility authority under this subpart
shall propose performance agreements that meet the
requirements of clauses (i) and (ii) of subsection (b)(1)(B)
(subject to approval of the application or amendment
involved under subsection (d) or (e)).
‘‘(B) 
PERFORMANCE
AGREEMENTS.—Each 
proposed
performance agreement with a local educational agency
shall—
‘‘(i) contain plans for the local educational agency
to consolidate and use funds in accordance with section
6152, for activities that are aligned with the State
educational agency’s plan described in paragraph
(1)(G);
‘‘(ii) be subject to the requirements of chapter B
relating to agreements between the Secretary and a
local educational agency, except—
‘‘(I) that, as appropriate, references in that
chapter to the Secretary shall be deemed to be
references to the State educational agency; and
‘‘(II) as otherwise provided in this chapter;
and
‘‘(iii) contain an assurance that the local edu-
cational agency will, for the duration of the grant of
authority, use funds consolidated under section 6152
only to supplement the amount of funds that would,
in the absence of those Federal funds, be made avail-
able from non-Federal sources for the education of
students participating in programs assisted with the
consolidated funds, and not to supplant those funds.
‘‘(d) APPROVAL AND SELECTION.—The Secretary shall—
‘‘(1) establish a peer review process to assist in the review
of proposed State applications under this section; and
‘‘(2) appoint individuals to participate in the peer review
process who are—
‘‘(A) representative of parents, teachers, State edu-
cational agencies, and local educational agencies; and
‘‘(B) familiar with educational standards, assessments,
accountability, curricula, instruction, and staff develop-
ment, and other diverse educational needs of students.
‘‘(e) AMENDMENT TO GRANT OF AUTHORITY.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary
shall amend the grant of flexibility authority made to a State
educational agency under this chapter, in each of the following
circumstances:
‘‘(A) 
REDUCTION
IN
SCOPE
OF
THE
GRANT
OF
AUTHORITY.—Not later than 1 year after receiving a grant
H. R. 1—458
of flexibility authority, the State educational agency seeks
to amend the grant of authority to remove from the scope
of the grant of authority any program described in section
6142(b).
‘‘(B) 
EXPANSION
OF
SCOPE
OF
THE
GRANT
OF
AUTHORITY.—Not later than 1 year after receiving a grant
of flexibility authority, the State educational agency seeks
to amend the grant of authority to include in the scope
of the grant of authority any additional program described
in section 6142(b) or any additional achievement indicators
for which the State will be held accountable.
‘‘(C) CHANGES WITH RESPECT TO NUMBER OF PERFORM-
ANCE AGREEMENTS.—The State educational agency seeks
to amend the grant of authority to include or remove
performance agreements that the State educational agency
proposes to enter into with eligible local educational agen-
cies, except that in no case may the State educational
agency enter into performance agreements that do not meet
the requirements of clauses (i) and (ii) of subsection
(b)(1)(B).
‘‘(2) APPROVAL AND DISAPPROVAL.—
‘‘(A) DEEMED APPROVAL.—A proposed amendment to
a grant of flexibility authority submitted by a State edu-
cational agency pursuant to paragraph (1) shall be deemed
to be approved by the Secretary unless the Secretary makes
a written determination, prior to the expiration of the
120-day period beginning on the date on which the Sec-
retary received the proposed amendment, that the proposed
amendment is not in compliance with this chapter.
‘‘(B) DISAPPROVAL.—The Secretary shall not finally dis-
approve the proposed amendment, except after giving the
State educational agency notice and an opportunity for
a hearing.
‘‘(C) NOTIFICATION.—If the Secretary finds that the
proposed amendment is not in compliance, in whole or
in part, with this chapter, the Secretary shall—
‘‘(i) give the State educational agency notice and
an opportunity for a hearing; and
‘‘(ii) notify the State educational agency of the
finding of noncompliance and, in such notification,
shall—
‘‘(I) cite the specific provisions in the proposed
amendment that are not in compliance; and
‘‘(II) request additional information, only as
to the noncompliant provisions, needed to make
the proposed amendment compliant.
‘‘(D) RESPONSE.—If the State educational agency
responds to the Secretary’s notification described in
subparagraph (C)(ii) during the 45-day period beginning
on the date on which the agency received the notification,
and resubmits the proposed amendment with the requested
information described in subparagraph (C)(ii)(II), the Sec-
retary shall approve or disapprove such proposed amend-
ment prior to the later of—
‘‘(i) the expiration of the 45-day period beginning
on the date on which the proposed amendment is resub-
mitted; or
H. R. 1—459
‘‘(ii) the expiration of the 120-day period described
in subparagraph (A).
‘‘(E) FAILURE TO RESPOND.—If the State educational
agency does not respond to the Secretary’s notification
described in subparagraph (C)(ii) during the 45-day period
beginning on the date on which the agency received the
notification, such proposed amendment shall be deemed
to be disapproved.
‘‘(3) TREATMENT
OF
PROGRAM
FUNDS
WITHDRAWN
FROM
GRANT OF AUTHORITY.—Beginning on the effective date of an
amendment executed under paragraph (1)(A), each program
requirement of each program removed from the scope of a
grant of authority shall apply to the use of funds made available
under the program by the State educational agency and each
local educational agency with which the State educational
agency has a performance agreement.
‘‘SEC. 6142. CONSOLIDATION AND USE OF FUNDS.
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORITY.—Under a grant of flexibility authority
made under this chapter, a State educational agency may
consolidate Federal funds described in subsection (b) and made
available to the agency, and use such funds for any educational
purpose authorized under this Act.
‘‘(2) PROGRAM REQUIREMENTS.—Except as otherwise pro-
vided in this chapter, a State educational agency may use
funds under paragraph (1) notwithstanding the program
requirements of the program under which the funds were made
available to the State.
‘‘(b) ELIGIBLE FUNDS AND PROGRAMS.—
‘‘(1) FUNDS.—The funds described in this subsection are
funds, for State-level activities and State administration, that
are described in the following provisions:
‘‘(A) Section 1004.
‘‘(B) Paragraphs (4) and (5) of section 1202(d).
‘‘(C) Section 2113(a)(3).
‘‘(D) Section 2412(a)(1).
‘‘(E) Subsections (a) (with the agreement of the Gov-
ernor), (b)(2), and (c)(1) of section 4112.
‘‘(F) Paragraphs (2) and (3) of section 4202(c).
‘‘(G) Section 5112(b).
‘‘(2) PROGRAMS.—The programs described in this subsection
are the programs authorized to be carried out with funds
described in paragraph (1).
‘‘(c) SPECIAL RULE.—A State educational agency that receives
a grant of flexibility authority under this chapter—
‘‘(1) shall ensure that the funds described in section 5112(a)
are allocated to local educational agencies in the State in
accordance with section 5112(a); but
‘‘(2) may specify how the local educational agencies shall
use the allocated funds.
‘‘SEC. 6143. PERFORMANCE REVIEW AND PENALTIES.
‘‘(a) MIDTERM REVIEW.—
‘‘(1) FAILURE TO MAKE ADEQUATE YEARLY PROGRESS.—If,
during the term of a grant of flexibility authority under this
chapter, a State educational agency fails to make adequate
yearly progress for 2 consecutive years, the Secretary shall,
H. R. 1—460
after providing notice and an opportunity for a hearing, termi-
nate the grant of authority promptly.
‘‘(2) NONCOMPLIANCE.—The Secretary may, after providing
notice and an opportunity for a hearing (including the oppor-
tunity to provide evidence as described in paragraph (3)), termi-
nate a grant of flexibility authority for a State if there is
evidence that the State educational agency involved has failed
to comply with the terms of the grant of authority.
‘‘(3) EVIDENCE.—If a State educational agency believes that
a determination of the Secretary under this subsection is in
error for statistical or other substantive reasons, the State
educational agency may provide supporting evidence to the
Secretary, and the Secretary shall consider that evidence before
making a final termination determination under this sub-
section.
‘‘(b) FINAL REVIEW.—
‘‘(1) IN GENERAL.—If, at the end of the 5-year term of
a grant of flexibility authority made under this chapter, the
State educational agency has not met the requirements
described in section 6141(c), the Secretary may not renew the
grant of flexibility authority under section 6144.
‘‘(2) COMPLIANCE.—Beginning on the date on which such
term ends, the State educational agency, and the local edu-
cational agencies with which the State educational agency has
entered into performance agreements, shall be required to
comply with each of the program requirements in effect on
such date for each program that was included in the grant
of authority.
‘‘SEC. 6144. RENEWAL OF GRANT OF FLEXIBILITY AUTHORITY.
‘‘(a) IN GENERAL.—Except as provided in section 6143 and
in accordance with this section, if a State educational agency has
met, by the end of the original 5-year term of a grant of flexibility
authority under this chapter, the requirements described in section
6141(c), the Secretary shall renew a grant of flexibility authority
for one additional 5-year term.
‘‘(b) RENEWAL.—The Secretary may not renew a grant of flexi-
bility authority under this chapter unless, not later than 6 months
before the end of the original term of the grant of authority, the
State educational agency seeking the renewal notifies the Secretary,
and the local educational agencies with which the State educational
agency has entered into performance agreements, of the agency’s
intention to renew the grant of authority.
‘‘(c) EFFECTIVE DATE.—A renewal under this section shall be
effective on the later of—
‘‘(1) the expiration of the original term of the grant of
authority; or
‘‘(2) the date on which the State educational agency seeking
the renewal provides to the Secretary all data required for
the application described in section 6141(c).
‘‘CHAPTER B—LOCAL FLEXIBILITY DEMONSTRATION
‘‘SEC. 6151. LOCAL FLEXIBILITY DEMONSTRATION AGREEMENTS.
‘‘(a) AUTHORITY.—Except as otherwise provided in this chapter,
the Secretary shall, on a competitive basis, enter into local flexibility
demonstration agreements—
H. R. 1—461
‘‘(1) with local educational agencies that submit approvable
proposed agreements under subsection (c) and that are selected
under subsection (b); and
‘‘(2) under which those agencies may consolidate and use
funds in accordance with section 6152.
‘‘(b) SELECTION OF LOCAL EDUCATIONAL AGENCIES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary
shall enter into local flexibility demonstration agreements
under this chapter with not more than 80 local educational
agencies. Each local educational agency shall be selected on
a competitive basis from among those local educational agencies
that—
‘‘(A) submit a proposed local flexibility demonstration
agreement under subsection (c) to the Secretary and dem-
onstrate, to the satisfaction of the Secretary, that the
agreement—
‘‘(i) has a substantial promise of assisting the local
educational agency in meeting the State’s definition
of adequate yearly progress, advancing the education
priorities of the local educational agency, meeting the
general purposes of the programs included under this
chapter and the purposes of this part, improving stu-
dent achievement, and narrowing achievement gaps
in accordance with section 1111(b);
‘‘(ii) meets the requirements of this chapter; and
‘‘(iii) contains a plan to consolidate and use funds
in accordance with section 6152 in order to meet the
State’s definition of adequate yearly progress and the
local educational agency’s specific, measurable goals
for improving student achievement and narrowing
achievement gaps; and
‘‘(B) have consulted and involved parents and other
educators in the development of the proposed local flexi-
bility demonstration agreement.
‘‘(2) GEOGRAPHIC DISTRIBUTION.—
‘‘(A) INITIAL AGREEMENTS.—The Secretary may enter
into not more than three local flexibility demonstration
agreements under this chapter with local educational agen-
cies in each State that does not have a grant of flexibility
authority under chapter A.
‘‘(B) URBAN AND RURAL AREAS.—If more than three
local educational agencies in a State submit approvable
local flexibility demonstration agreements under this
chapter, the Secretary shall select local educational agen-
cies with which to enter into such agreements in a manner
that ensures an equitable distribution among such agencies
serving urban and rural areas.
‘‘(C) PRIORITY OF STATES TO ENTER INTO STATE FLEXI-
BILITY
DEMONSTRATION
AGREEMENTS.—Notwithstanding
any other provision of this part, a local educational agency
may not seek to enter into a local flexibility demonstration
agreement under this chapter if that agency is located
in a State for which the State educational agency—
‘‘(i) has, not later than 4 months after the date
of enactment of the No Child Left Behind Act of 2001,
notified the Secretary of its intent to apply for a grant
of flexibility authority under chapter A and, within
H. R. 1—462
such period of time as the Secretary may establish,
is provided with such authority by the Secretary; or
‘‘(ii) has, at any time after such period, been
granted flexibility authority under chapter A.
‘‘(c) REQUIRED TERMS OF LOCAL FLEXIBILITY DEMONSTRATION
AGREEMENT.—Each 
local 
flexibility 
demonstration 
agreement
entered into with the Secretary under this chapter shall contain
each of the following terms:
‘‘(1) DURATION.—The local flexibility demonstration agree-
ment shall be for a term of 5 years.
‘‘(2) APPLICATION OF PROGRAM REQUIREMENTS.—The local
flexibility demonstration agreement shall provide that no
requirements of any program described in section 6152 and
included by a local educational agency in the scope of its agree-
ment shall apply to that agency, except as otherwise provided
in this chapter.
‘‘(3) LIST OF PROGRAMS.—The local flexibility demonstration
agreement shall list which of the programs described in section
6152 are included in the scope of the agreement.
‘‘(4) USE OF FUNDS TO IMPROVE STUDENT ACHIEVEMENT.—
The local flexibility demonstration agreement shall contain a
5-year plan describing how the local educational agency intends
to consolidate and use the funds from programs included in
the scope of the agreement for any educational purpose author-
ized under this Act to advance the education priorities of the
local educational agency, meet the general purposes of the
included programs, improve student achievement, and narrow
achievement gaps in accordance with section 1111(b).
‘‘(5) LOCAL
INPUT.—The local flexibility demonstration
agreement shall contain an assurance that the local educational
agency will provide parents, teachers, and representatives of
schools with notice and an opportunity to comment on the
proposed terms of the local flexibility demonstration agreement.
‘‘(6) FISCAL RESPONSIBILITIES.—The local flexibility dem-
onstration agreement shall contain an assurance that the local
educational agency will use fiscal control and fund accounting
procedures that will ensure proper disbursement of, and
accounting for, Federal funds consolidated and used under the
agreement.
‘‘(7) CIVIL
RIGHTS.—The local flexibility demonstration
agreement shall contain an assurance that the local educational
agency will meet the requirements of all applicable Federal
civil rights laws in carrying out the agreement and in consoli-
dating and using the funds under the agreement.
‘‘(8) PRIVATE SCHOOL PARTICIPATION.—The local flexibility
demonstration agreement shall contain an assurance that the
local educational agency agrees that in consolidating and using
funds under the agreement—
‘‘(A) the local educational agency, will provide for the
equitable participation of students and professional staff
in private schools consistent with section 9501; and
‘‘(B) that sections 9502, 9503, and 9504 shall apply
to all services and assistance provided with such funds
in the same manner as such sections apply to services
and assistance provided in accordance with section 9501.
‘‘(9) SUPPLANTING.—The local flexibility demonstration
agreement shall contain an assurance that the local educational
H. R. 1—463
agency will, for the duration of the grant of authority, use
funds consolidated under section 6152 only to supplement the
amount of funds that would, in the absence of those Federal
funds, be made available from non-Federal sources for the
education of students participating in programs assisted with
the consolidated funds, and not to supplant those funds.
‘‘(10) ANNUAL REPORTS.—The local flexibility demonstration
agreement shall contain an assurance that the local educational
agency shall, not later than 1 year after the date on which
the Secretary enters into the agreement, and annually there-
after during the term of the agreement, disseminate widely
to parents and the general public, transmit to the Secretary,
and the State educational agency for the State in which the
local educational agency is located, distribute to print and
broadcast media, and post on the Internet, a report that
includes a detailed description of how the local educational
agency used the funds consolidated under the agreement to
improve student academic achievement and reduce achievement
gaps.
‘‘(d) PEER REVIEW.—The Secretary shall—
‘‘(1) establish a peer review process to assist in the review
of proposed local flexibility demonstration agreements under
this chapter; and
‘‘(2) appoint individuals to the peer review process who
are representative of parents, teachers, State educational agen-
cies, and local educational agencies, and who are familiar with
educational standards, assessments, accountability, curriculum,
instruction and staff development, and other diverse edu-
cational needs of students.
‘‘(e) AMENDMENT TO PERFORMANCE AGREEMENT.—
‘‘(1) IN GENERAL.—In each of the following circumstances,
the Secretary shall amend a local flexibility demonstration
agreement entered into with a local educational agency under
this chapter:
‘‘(A) REDUCTION IN SCOPE OF LOCAL FLEXIBILITY DEM-
ONSTRATION
AGREEMENT.—Not later than 1 year after
entering into a local flexibility demonstration agreement,
the local educational agency seeks to amend the agreement
to remove from the scope any program described in section
6152.
‘‘(B) EXPANSION OF SCOPE OF LOCAL FLEXIBILITY DEM-
ONSTRATION
AGREEMENT.—Not later than 1 year after
entering into the local flexibility demonstration agreement,
a local educational agency seeks to amend the agreement
to include in its scope any additional program described
in section 6251 or any additional achievement indicators
for which the local educational agency will be held account-
able.
‘‘(2) APPROVAL AND DISAPPROVAL.—
‘‘(A) DEEMED APPROVAL.—A proposed amendment to
a local flexibility demonstration agreement pursuant to
paragraph (1) shall be deemed to be approved by the Sec-
retary unless the Secretary makes a written determination,
prior to the expiration of the 120-day period beginning
on the date on which the Secretary received the proposed
amendment, that the proposed amendment is not in compli-
ance with this chapter.
H. R. 1—464
‘‘(B) DISAPPROVAL.—The Secretary shall not finally dis-
approve the proposed amendment, except after giving the
local educational agency notice and an opportunity for a
hearing.
‘‘(C) NOTIFICATION.—If the Secretary finds that the
proposed amendment is not in compliance, in whole or
in part, with this chapter, the Secretary shall—
‘‘(i) give the local educational agency notice and
an opportunity for a hearing; and
‘‘(ii) notify the local educational agency of the
finding of noncompliance and, in such notification,
shall—
‘‘(I) cite the specific provisions in the proposed
amendment that are not in compliance; and
‘‘(II) request additional information, only as
to the noncompliant provisions, needed to make
the proposed amendment compliant.
‘‘(D) RESPONSE.—If the local educational agency
responds to the Secretary’s notification described in
subparagraph (C)(ii) during the 45-day period beginning
on the date on which the agency received the notification,
and resubmits the proposed amendment with the requested
information described in subparagraph (C)(ii)(II), the Sec-
retary shall approve or disapprove such proposed amend-
ment prior to the later of—
‘‘(i) the expiration of the 45-day period beginning
on the date on which the proposed amendment is resub-
mitted; or
‘‘(ii) the expiration of the 120-day period described
in subparagraph (A).
‘‘(E) FAILURE
TO
RESPOND.—If the local educational
agency does not respond to the Secretary’s notification
described in subparagraph (C)(ii) during the 45-day period
beginning on the date on which the agency received the
notification, such proposed amendment shall be deemed
to be disapproved.
‘‘(3) TREATMENT
OF
PROGRAM
FUNDS
WITHDRAWN
FROM
AGREEMENT.—Beginning on the effective date of an amendment
executed under paragraph (1)(A), each program requirement
of each program removed from the scope of a local flexibility
demonstration agreement shall apply to the use of funds made
available under the program by the local educational agency.
‘‘SEC. 6152. CONSOLIDATION AND USE OF FUNDS.
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORITY.—Under a local flexibility demonstration
agreement entered into under this chapter, a local educational
agency may consolidate Federal funds made available to the
agency under the provisions listed in subsection (b) and use
such funds for any educational purpose permitted under this
Act.
‘‘(2) PROGRAM REQUIREMENTS.—Except as otherwise pro-
vided in this chapter, a local educational agency may use funds
under paragraph (1) notwithstanding the program requirements
of the program under which the funds were made available
to the agency.
H. R. 1—465
‘‘(b) ELIGIBLE PROGRAMS.—Program funds made available to
local educational agencies on the basis of a formula under the
following provisions may be consolidated and used under subsection
(a):
‘‘(1) Subpart 2 of part A of title II.
‘‘(2) Subpart 1 of part D of title II.
‘‘(3) Subpart 1 of part A of title IV.
‘‘(4) Subpart 1 of part A of title V.
‘‘SEC. 6153. LIMITATIONS ON ADMINISTRATIVE EXPENDITURES.
‘‘Each local educational agency that has entered into a local
flexibility demonstration agreement with the Secretary under this
chapter may use for administrative purposes not more than 4
percent of the total amount of funds allocated to the agency under
the programs included in the scope of the agreement.
‘‘SEC. 6154. PERFORMANCE REVIEW AND PENALTIES.
‘‘(a) MIDTERM REVIEW.—
‘‘(1) FAILURE TO MAKE ADEQUATE YEARLY PROGRESS.—If,
during the term of a local flexibility demonstration agreement,
a local educational agency fails to make adequate yearly
progress for 2 consecutive years, the Secretary shall, after
notice and opportunity for a hearing, promptly terminate the
agreement.
‘‘(2) NONCOMPLIANCE.—The Secretary may, after providing
notice and an opportunity for a hearing (including the oppor-
tunity to provide information as provided for in paragraph
(3)), terminate a local flexibility demonstration agreement
under this chapter if there is evidence that the local educational
agency has failed to comply with the terms of the agreement.
‘‘(3) EVIDENCE.—If a local educational agency believes that
the Secretary’s determination under this subsection is in error
for statistical or other substantive reasons, the local educational
agency may provide supporting evidence to the Secretary, and
the Secretary shall consider that evidence before making a
final early termination determination.
‘‘(b) FINAL REVIEW.—If, at the end of the 5-year term of a
local flexibility demonstration agreement entered into under this
chapter, the local educational agency has not met the requirements
described in section 6151(c), the Secretary may not renew the
agreement under section 6155 and, beginning on the date on which
such term ends, the local educational agency shall be required
to comply with each of the program requirements in effect on
such date for each program included in the local flexibility dem-
onstration agreement.
‘‘SEC. 6155. RENEWAL OF LOCAL FLEXIBILITY DEMONSTRATION
AGREEMENT.
‘‘(a) IN GENERAL.—Except as provided in section 6154 and
in accordance with this section, the Secretary shall renew for one
additional 5-year term a local flexibility demonstration agreement
entered into under this chapter if the local educational agency
has met, by the end of the original term of the agreement, the
requirements described in section 6151(c).
‘‘(b) NOTIFICATION.—The Secretary may not renew a local flexi-
bility demonstration agreement under this chapter unless, not less
than 6 months before the end of the original term of the agreement,
H. R. 1—466
the local educational agency seeking the renewal notifies the Sec-
retary of its intention to renew.
‘‘(c) EFFECTIVE DATE.—A renewal under this section shall be
effective at the end of the original term of the agreement or on
the date on which the local educational agency seeking renewal
provides to the Secretary all data required under the agreement,
whichever is later.
‘‘SEC. 6156. REPORTS.
‘‘(a) TRANSMITTAL TO CONGRESS.—Not later than 60 days after
the Secretary receives a report described in section 6151(b)(10),
the Secretary shall make the report available to the Committee
on Education and the Workforce of the House of Representatives
and the Committee on Health, Education, Labor, and Pensions
of the Senate.
‘‘(b) LIMITATION.—A State in which a local educational agency
that has a local flexibility demonstration agreement is located may
not require such local educational agency to provide any application
information with respect to the programs included within the scope
of that agreement other than that information that is required
to be included in the report described in section 6151(b)(10).
‘‘Subpart 4—State Accountability for Adequate
Yearly Progress
‘‘SEC. 6161. ACCOUNTABILITY FOR ADEQUATE YEARLY PROGRESS.
‘‘In the case of a State educational agency that has a plan
approved under subpart 1 of part A of title I after the date of
enactment of the No Child Left Behind Act of 2001, and has
a plan approved under subpart 1 of part A of title III of such
Act after such date of enactment, the Secretary shall annually,
starting with the beginning of the first school year following the
first two school years for which such plans were implemented,
review whether the State has—
‘‘(1) made adequate yearly progress, as defined in section
1111(b)(2)(B), for each of the groups of students described in
section 1111(b)(2)(C)(v); and
‘‘(2) met its annual measurable achievement objectives
under section 3122(a).
‘‘SEC. 6162. PEER REVIEW.
‘‘The Secretary shall use a peer review process to review, based
on data from the State assessments administered under section
1111(b)(3) and on data from the evaluations conducted under section
3121, whether the State has failed to make adequate yearly progress
for 2 consecutive years or whether the State has met its annual
measurable achievement objectives.
‘‘SEC. 6163. TECHNICAL ASSISTANCE.
‘‘(a) PROVISION OF ASSISTANCE.—
‘‘(1) ADEQUATE YEARLY PROGRESS.—Based on the review
described in section 6161(1), the Secretary shall provide tech-
nical assistance to a State that has failed to make adequate
yearly progress, as defined in section 1111(b)(2), for 2 consecu-
tive years. The Secretary shall provide such assistance not
later than the beginning of the first school year that begins
after such determination is made.
H. R. 1—467
‘‘(2) ANNUAL
MEASURABLE
ACHIEVEMENT
OBJECTIVES.—
Based on the reviews described in section 6161(2), the Secretary
may provide technical assistance to a State that has failed
to meet its annual measurable achievement objectives under
section 3122(a) for 2 consecutive years. The Secretary shall
provide such assistance not later than the beginning of the
first school year that begins after such determination is made.
‘‘(b) CHARACTERISTICS.—The technical assistance described in
subsection (a) shall—
‘‘(1) be valid, reliable and rigorous; and
‘‘(2) provide constructive feedback to help the State make
adequate yearly progress, as defined in section 1111(b)(2), or
meet the annual measurable achievement objectives under sec-
tion 3122(a).
‘‘SEC. 6164. REPORT TO CONGRESS.
‘‘Beginning with the school year that begins in 2005, the Sec-
retary shall submit an annual report to the Committee on Education
and the Workforce of the House of Representatives and the Com-
mittee on Health, Education, Labor, and Pensions of the Senate
containing the following:
‘‘(1) A list of each State that has not made adequate yearly
progress based on the review conducted under section 6161(1).
‘‘(2) A list of each State that has not met its annual measur-
able achievement objectives based on the review conducted
under section 6161(2).
‘‘(3) The information reported by the State to the Secretary
pursuant to section 1119(a).
‘‘(4) A description of any technical assistance provided
pursuant to section 6163.
‘‘PART B—RURAL EDUCATION INITIATIVE
‘‘SEC. 6201. SHORT TITLE.
‘‘This part may be cited as the ‘Rural Education Achievement
Program’.
‘‘SEC. 6202. PURPOSE.
‘‘It is the purpose of this part to address the unique needs
of rural school districts that frequently—
‘‘(1) lack the personnel and resources needed to compete
effectively for Federal competitive grants; and
‘‘(2) receive formula grant allocations in amounts too small
to be effective in meeting their intended purposes.
‘‘Subpart 1—Small, Rural School Achievement
Program
‘‘SEC. 6211. USE OF APPLICABLE FUNDING.
‘‘(a) ALTERNATIVE USES.—
‘‘(1) IN GENERAL.—Notwithstanding any other provision of
law, an eligible local educational agency may use the applicable
funding that the agency is eligible to receive from the State
educational agency for a fiscal year to carry out local activities
authorized under any of the following provisions:
‘‘(A) Part A of title I.
‘‘(B) Part A or D of title II.
H. R. 1—468
‘‘(C) Title III.
‘‘(D) Part A or B of title IV.
‘‘(E) Part A of title V.
‘‘(2) NOTIFICATION.—An eligible local educational agency
shall notify the State educational agency of the local educational
agency’s intention to use the applicable funding in accordance
with paragraph (1), by a date that is established by the State
educational agency for the notification.
‘‘(b) ELIGIBILITY.—
‘‘(1) IN
GENERAL.—A local educational agency shall be
eligible to use the applicable funding in accordance with sub-
section (a) if—
‘‘(A)(i)(I) the total number of students in average daily
attendance at all of the schools served by the local edu-
cational agency is fewer than 600; or
‘‘(II) each county in which a school served by the local
educational agency is located has a total population density
of fewer than 10 persons per square mile; and
‘‘(ii) all of the schools served by the local educational
agency are designated with a school locale code of 7 or
8, as determined by the Secretary; or
‘‘(B) the agency meets the criteria established in
subparagraph (A)(i) and the Secretary, in accordance with
paragraph (2), grants the local educational agency’s request
to waive the criteria described in subparagraph (A)(ii).
‘‘(2) 
CERTIFICATION.—The 
Secretary 
shall 
determine
whether to waive the criteria described in paragraph (1)(A)(ii)
based on a demonstration by the local educational agency,
and concurrence by the State educational agency, that the
local educational agency is located in an area defined as rural
by a governmental agency of the State.
‘‘(c) APPLICABLE FUNDING DEFINED.—In this section, the term
‘applicable funding’ means funds provided under any of the following
provisions:
‘‘(1) Subpart 2 and section 2412(a)(2)(A) of title II.
‘‘(2) Section 4114.
‘‘(3) Part A of title V.
‘‘(d) DISBURSEMENT.—Each State educational agency that
receives applicable funding for a fiscal year shall disburse the
applicable funding to local educational agencies for alternative uses
under this section for the fiscal year at the same time as the
State educational agency disburses the applicable funding to local
educational agencies that do not intend to use the applicable
funding for such alternative uses for the fiscal year.
‘‘(e) APPLICABLE RULES.—Applicable funding under this section
shall be available to carry out local activities authorized under
subsection (a).
‘‘SEC. 6212. GRANT PROGRAM AUTHORIZED.
‘‘(a) IN GENERAL.—The Secretary is authorized to award grants
to eligible local educational agencies to enable the local educational
agencies to carry out activities authorized under any of the following
provisions:
‘‘(1) Part A of title I.
‘‘(2) Part A or D of title II.
‘‘(3) Title III.
‘‘(4) Part A or B of title IV.
H. R. 1—469
‘‘(5) Part A of title V.
‘‘(b) ALLOCATION.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (3),
the Secretary shall award a grant under subsection (a) to
a local educational agency eligible under section 6211(b) for
a fiscal year in an amount equal to the initial amount deter-
mined under paragraph (2) for the fiscal year minus the total
amount received by the agency under the provisions of law
described in section 6211(c) for the preceding fiscal year.
‘‘(2) DETERMINATION
OF
INITIAL
AMOUNT.—The initial
amount referred to in paragraph (1) is equal to $100 multiplied
by the total number of students in excess of 50 students,
in average daily attendance at the schools served by the local
educational agency, plus $20,000, except that the initial amount
may not exceed $60,000.
‘‘(3) RATABLE ADJUSTMENT.—
‘‘(A) IN GENERAL.—If the amount made available to
carry out this section for any fiscal year is not sufficient
to pay in full the amounts that local educational agencies
are eligible to receive under paragraph (1) for such year,
the Secretary shall ratably reduce such amounts for such
year.
‘‘(B) ADDITIONAL AMOUNTS.—If additional funds become
available for making payments under paragraph (1) for
such fiscal year, payments that were reduced under
subparagraph (A) shall be increased on the same basis
as such payments were reduced.
‘‘(c) DISBURSEMENT.—The Secretary shall disburse the funds
awarded to a local educational agency under this section for a
fiscal year not later than July 1 of that fiscal year.
‘‘(d) SPECIAL ELIGIBILITY RULE.—A local educational agency
that is eligible to receive a grant under this subpart for a fiscal
year is not eligible to receive funds for such fiscal year under
subpart 2.
‘‘SEC. 6213. ACCOUNTABILITY.
‘‘(a) ACADEMIC ACHIEVEMENT ASSESSMENT.—Each local edu-
cational agency that uses or receives funds under this subpart
for a fiscal year shall administer an assessment that is consistent
with section 1111(b)(3).
‘‘(b) DETERMINATION REGARDING CONTINUING PARTICIPATION.—
Each State educational agency that receives funding under the
provisions of law described in section 6211(c) shall—
‘‘(1) after the third year that a local educational agency
in the State participates in a program under this subpart
and on the basis of the results of the assessments described
in subsection (a), determine whether the local educational
agency participating in the program made adequate yearly
progress, as described in section 1111(b)(2);
‘‘(2) permit only those local educational agencies that
participated and made adequate yearly progress, as described
in section 1111(b)(2), to continue to participate; and
‘‘(3) permit those local educational agencies that partici-
pated and failed to make adequate yearly progress, as described
in section 1111(b)(2), to continue to participate only if such
local educational agencies use applicable funding under this
subpart to carry out the requirements of section 1116.
H. R. 1—470
‘‘Subpart 2—Rural and Low-Income School
Program
‘‘SEC. 6221. PROGRAM AUTHORIZED.
‘‘(a) GRANTS TO STATES.—
‘‘(1) IN GENERAL.—From amounts appropriated under sec-
tion 6234 for this subpart for a fiscal year that are not reserved
under subsection (c), the Secretary shall award grants (from
allotments made under paragraph (2)) for the fiscal year to
State educational agencies that have applications submitted
under section 6223 approved to enable the State educational
agencies to award grants to eligible local educational agencies
for local authorized activities described in section 6222(a).
‘‘(2) ALLOTMENT.—From amounts described in paragraph
(1) for a fiscal year, the Secretary shall allot to each State
educational agency for that fiscal year an amount that bears
the same ratio to those amounts as the number of students
in average daily attendance served by eligible local educational
agencies in the State for that fiscal year bears to the number
of all such students served by eligible local educational agencies
in all States for that fiscal year.
‘‘(3) SPECIALLY QUALIFIED AGENCIES.—
‘‘(A) ELIGIBILITY
AND
APPLICATION.—If a State edu-
cational agency elects not to participate in the program
under this subpart or does not have an application sub-
mitted under section 6223 approved, a specially qualified
agency in such State desiring a grant under this subpart
may submit an application under such section directly to
the Secretary to receive an award under this subpart.
‘‘(B) DIRECT AWARDS.—The Secretary may award, on
a competitive basis or by formula, the amount the State
educational agency is eligible to receive under paragraph
(2) directly to a specially qualified agency in the State
that has submitted an application in accordance with
subparagraph (A) and obtained approval of the application.
‘‘(C) SPECIALLY QUALIFIED AGENCY DEFINED.—In this
subpart, the term ‘specially qualified agency’ means an
eligible local educational agency served by a State edu-
cational agency that does not participate in a program
under this subpart in a fiscal year, that may apply directly
to the Secretary for a grant in such year under this sub-
section.
‘‘(b) LOCAL AWARDS.—
‘‘(1) ELIGIBILITY.—A local educational agency shall be
eligible to receive a grant under this subpart if—
‘‘(A) 20 percent or more of the children ages 5 through
17 years served by the local educational agency are from
families with incomes below the poverty line; and
‘‘(B) all of the schools served by the agency are des-
ignated with a school locale code of 6, 7, or 8, as determined
by the Secretary.
‘‘(2) AWARD BASIS.—A State educational agency shall award
grants to eligible local educational agencies—
‘‘(A) on a competitive basis;
H. R. 1—471
‘‘(B) according to a formula based on the number of
students in average daily attendance served by the eligible
local educational agencies or schools in the State; or
‘‘(C) according to an alternative formula, if, prior to
awarding the grants, the State educational agency dem-
onstrates, to the satisfaction of the Secretary, that the
alternative formula enables the State educational agency
to allot the grant funds in a manner that serves equal
or greater concentrations of children from families with
incomes below the poverty line, relative to the concentra-
tions that would be served if the State educational agency
used the formula described in subparagraph (B).
‘‘(c) RESERVATIONS.—From amounts appropriated under section
6234 for this subpart for a fiscal year, the Secretary shall reserve—
‘‘(1) one-half of 1 percent to make awards to elementary
schools or secondary schools operated or supported by the
Bureau of Indian Affairs, to carry out the activities authorized
under this subpart; and
‘‘(2) one-half of 1 percent to make awards to the outlying
areas in accordance with their respective needs, to carry out
the activities authorized under this subpart.
‘‘SEC. 6222. USES OF FUNDS.
‘‘(a) LOCAL AWARDS.—Grant funds awarded to local educational
agencies under this subpart shall be used for any of the following:
‘‘(1) Teacher recruitment and retention, including the use
of signing bonuses and other financial incentives.
‘‘(2) Teacher professional development, including programs
that train teachers to utilize technology to improve teaching
and to train special needs teachers.
‘‘(3) Educational technology, including software and hard-
ware, as described in part D of title II.
‘‘(4) Parental involvement activities.
‘‘(5) Activities authorized under the Safe and Drug-Free
Schools program under part A of title IV.
‘‘(6) Activities authorized under part A of title I.
‘‘(7) Activities authorized under title III.
‘‘(b) ADMINISTRATIVE
COSTS.—A State educational agency
receiving a grant under this subpart may not use more than 5
percent of the amount of the grant for State administrative costs
and to provide technical assistance to eligible local educational
agencies.
‘‘SEC. 6223. APPLICATIONS.
‘‘(a) IN GENERAL.—Each State educational agency or specially
qualified agency desiring to receive a grant under this subpart
shall submit an application to the Secretary at such time, in such
manner, and accompanied by such information as the Secretary
may require.
‘‘(b) CONTENTS.—At a minimum, each application submitted
under subsection (a) shall include information on specific measur-
able goals and objectives to be achieved through the activities
carried out through the grant, which may include specific edu-
cational goals and objectives relating to—
‘‘(1) increased student academic achievement;
‘‘(2) decreased student dropout rates; or
‘‘(3) such other factors as the State educational agency
or specially qualified agency may choose to measure.
H. R. 1—473
‘‘(3) permit those local educational agencies or specially
qualified agencies that failed to make adequate yearly progress,
as described in section 1111(b)(2), to continue to receive such
grants only if the State educational agency disbursed such
grants to the local educational agencies or specially qualified
agencies to carry out the requirements of section 1116.
‘‘Subpart 3—General Provisions
‘‘SEC. 6231. ANNUAL AVERAGE DAILY ATTENDANCE DETERMINATION.
‘‘(a) CENSUS DETERMINATION.—Each local educational agency
desiring a grant under section 6212 and each local educational
agency or specially qualified agency desiring a grant under subpart
2 shall—
‘‘(1) not later than December 1 of each year, conduct a
census to determine the number of students in average daily
attendance in kindergarten through grade 12 at the schools
served by the agency; and
‘‘(2) not later than March 1 of each year, submit the number
described in paragraph (1) to the Secretary (and to the State
educational agency, in the case of a local educational agency
seeking a grant under subpart (2)).
‘‘(b) PENALTY.—If the Secretary determines that a local edu-
cational agency or specially qualified agency has knowingly sub-
mitted false information under subsection (a) for the purpose of
gaining additional funds under section 6212 or subpart 2, then
the agency shall be fined an amount equal to twice the difference
between the amount the agency received under this section and
the correct amount the agency would have received under section
6212 or subpart 2 if the agency had submitted accurate information
under subsection (a).
‘‘SEC. 6232. SUPPLEMENT, NOT SUPPLANT.
‘‘Funds made available under subpart 1 or subpart 2 shall
be used to supplement, and not supplant, any other Federal, State,
or local education funds.
‘‘SEC. 6233. RULE OF CONSTRUCTION.
‘‘Nothing in this part shall be construed to prohibit a local
educational agency that enters into cooperative arrangements with
other local educational agencies for the provision of special, compen-
satory, or other education services, pursuant to State law or a
written agreement, from entering into similar arrangements for
the use, or the coordination of the use, of the funds made available
under this part.
‘‘SEC. 6234. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out this
part $300,000,000 for fiscal year 2002 and such sums as may
be necessary for each of the 5 succeeding fiscal years, to be distrib-
uted equally between subparts 1 and 2.
‘‘PART C—GENERAL PROVISIONS
‘‘SEC. 6301. PROHIBITION AGAINST FEDERAL MANDATES, DIRECTION,
OR CONTROL.
‘‘Nothing in this title shall be construed to authorize an officer
or employee of the Federal Government to mandate, direct, or
H. R. 1—474
control a State, local educational agency, or school’s specific instruc-
tional content, academic achievement standards and assessments,
curriculum, or program of instruction, as a condition of eligibility
to receive funds under this Act.
‘‘SEC. 6302. RULE OF CONSTRUCTION ON EQUALIZED SPENDING.
‘‘Nothing in this title shall be construed to mandate equalized
spending per pupil for a State, local educational agency, or school.’’.
SEC. 602. AMENDMENT TO THE NATIONAL EDUCATION STATISTICS
ACT OF 1994.
(a) NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS.—Sec-
tion 411 of the National Education Statistics Act of 1994 (20 U.S.C.
9010) is amended to read as follows:
‘‘SEC. 411. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS.
‘‘(a) ESTABLISHMENT.—The Commissioner shall, with the advice
of the National Assessment Governing Board established under
section 412, and with the technical assistance of the Advisory
Council established under section 407, carry out, through grants,
contracts, or cooperative agreements with one or more qualified
organizations, or consortia thereof, a National Assessment of Edu-
cational Progress, which collectively refers to a national assessment,
State assessments, and a long-term trend assessment in reading
and mathematics.
‘‘(b) PURPOSE; STATE ASSESSMENTS.—
‘‘(1) PURPOSE.—The purpose of this section is to provide,
in a timely manner, a fair and accurate measurement of student
academic achievement and reporting trends in such achieve-
ment in reading, mathematics, and other subject matter as
specified in this section.
‘‘(2) MEASUREMENT AND REPORTING.—The Commissioner,
in carrying out the measurement and reporting described in
paragraph (1), shall—
‘‘(A) use a random sampling process which is consistent
with relevant, widely accepted professional assessment
standards and that produces data that are representative
on a national and regional basis;
‘‘(B) conduct a national assessment and collect and
report assessment data, including achievement data trends,
in a valid and reliable manner on student academic
achievement in public and private elementary schools and
secondary schools at least once every 2 years, in grades
4 and 8 in reading and mathematics;
‘‘(C) conduct a national assessment and collect and
report assessment data, including achievement data trends,
in a valid and reliable manner on student academic
achievement in public and private schools in reading and
mathematics in grade 12 in regularly scheduled intervals,
but at least as often as such assessments were conducted
prior to the date of enactment of the No Child Left Behind
Act of 2001;
‘‘(D) to the extent time and resources allow, and after
the requirements described in subparagraph (B) are imple-
mented and the requirements described in subparagraph
(C) are met, conduct additional national assessments and
collect and report assessment data, including achievement
data trends, in a valid and reliable manner on student
H. R. 1—475
academic achievement in grades 4, 8, and 12 in public
and private elementary schools and secondary schools in
regularly scheduled intervals in additional subject matter,
including writing, science, history, geography, civics,
economics, foreign languages, and arts, and the trend
assessment described in subparagraph (F);
‘‘(E) conduct the reading and mathematics assessments
described in subparagraph (B) in the same year, and every
other year thereafter, to provide for 1 year in which no
such assessments are conducted in between each adminis-
tration of such assessments;
‘‘(F) continue to conduct the trend assessment of aca-
demic achievement at ages 9, 13, and 17 for the purpose
of maintaining data on long-term trends in reading and
mathematics;
‘‘(G) include information on special groups, including,
whenever feasible, information collected, cross tabulated,
compared, and reported by race, ethnicity, socioeconomic
status, gender, disability and limited English proficiency;
and
‘‘(H) ensure that achievement data are made available
on a timely basis following official reporting, in a manner
that facilitates further analysis and that includes trend
lines.
‘‘(3) STATE ASSESSMENTS.—
‘‘(A) IN GENERAL.—The Commissioner—
‘‘(i) shall conduct biennial State academic assess-
ments of student achievement in reading and mathe-
matics in grades 4 and 8 as described in paragraphs
(1)(B) and (1)(E);
‘‘(ii) may conduct the State academic assessments
of student achievement in reading and mathematics
in grade 12 as described in paragraph (1)(C);
‘‘(iii) may conduct State academic assessments of
student achievement in grades 4, 8, and 12 as described
in paragraph (1)(D); and
‘‘(iv) shall conduct each such State assessment,
in each subject area and at each grade level, on a
developmental basis until the Commissioner deter-
mines, as the result of an evaluation required by sub-
section (f), that such assessment produces high quality
data that are valid and reliable.
‘‘(B) AGREEMENT.—
‘‘(i) IN
GENERAL.—States participating in State
assessments shall enter into an agreement with the
Secretary pursuant to subsection (d)(3).
‘‘(ii) CONTENT.—Such agreement shall contain
information sufficient to give States full information
about the process for decision-making (which shall
include the consensus process used), on objectives to
be tested, and the standards for random sampling,
test administration, test security, data collection,
validation, and reporting.
‘‘(C) REVIEW AND RELEASE.—
‘‘(i) IN
GENERAL.—Except as provided in clause
(ii), a participating State shall review and give permis-
sion for the release of results from any test of its
H. R. 1—476
students administered as a part of a State assessment
prior to the release of such data. Refusal by a State
to release its data shall not restrict the release of
data from other States that have approved the release
of such data.
‘‘(ii) SPECIAL RULE.—A State participating in the
biennial academic assessments of student achievement
in reading and mathematics in grades 4 and 8 shall
be deemed to have given its permission to release
its data if the State has an approved plan under section
1111 of the Elementary and Secondary Education Act
of 1965.
‘‘(4) PROHIBITED ACTIVITIES.—
‘‘(A) IN GENERAL.—The use of assessment items and
data on any assessment authorized under this section by
an agent or agents of the Federal Government to rank,
compare, or otherwise evaluate individual students or
teachers, or to provide rewards or sanctions for individual
students, teachers, schools or local educational agencies
is prohibited.
‘‘(B) SPECIAL RULE.—Any assessment authorized under
this section shall not be used by an agent or agents of
the Federal Government to establish, require, or influence
the standards, assessments, curriculum, including lesson
plans, textbooks, or classroom materials, or instructional
practices of States or local educational agencies.
‘‘(C) 
APPLICABILITY
TO
STUDENT
EDUCATIONAL
DECISIONS.—Nothing in this section shall be construed to
prescribe the use of any assessment authorized under this
section for student promotion or graduation purposes.
‘‘(D) APPLICABILITY TO HOME SCHOOLS.—Nothing in this
section shall be construed to affect home schools, whether
or not a home school is treated as a home school or a
private school under State law, nor shall any home schooled
student be required to participate in any assessment ref-
erenced or authorized under this section.
‘‘(5) REQUIREMENT.—In carrying out any assessment
authorized under this section, the Commissioner, in a manner
consistent with subsection (c)(2), shall—
‘‘(A) use widely accepted professional testing standards,
objectively measure academic achievement, knowledge, and
skills, and ensure that any academic assessment authorized
under this section be tests that do not evaluate or assess
personal or family beliefs and attitudes or publicly disclose
personally identifiable information;
‘‘(B) only collect information that is directly related
to the appraisal of academic achievement, and to the fair
and accurate presentation of such information; and
‘‘(C) collect information on race, ethnicity, socio-
economic status, disability, limited English proficiency, and
gender.
‘‘(6) TECHNICAL ASSISTANCE.—In carrying out any assess-
ment authorized under this section, the Commissioner may
provide technical assistance to States, localities, and other par-
ties.
‘‘(c) ACCESS.—
‘‘(1) PUBLIC ACCESS.—