‘‘(5) Student-level data on the entrance and exit 
of the education system of each student, including 
first time grade enrollment, grade level retention, 
verified transfer status, dropout rates, receipt of es-
tablished diploma or nonstandard diploma, receipt of 
a GED, incarceration, and death. 
‘‘(6) A statewide audit system to ensure the 
quality, validity, and reliability of data in such sys-
tem. 
‘‘(7) A unique statewide teacher identifier that 
remains consistent over time and matches all stu-
dent records described in this subsection to the ap-
propriate teacher. 
‘‘(8) Student-level transcript information, in-
cluding information on courses completed and 
grades earned. 
‘‘(9) Ability to link information from preschool 
through grade 12, including that of students with 
disabilities, to data systems in higher education, and 
to gather information on college enrollment, place-
ment, persistence, and attainment, and ability to 
link data systems to data from workforce develop-
ment, unemployment insurance, child welfare, juve-
nile justice, and military services information sys-
tems. 
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‘‘(d) OTHER ELEMENT.—The data system required 
by subsection (a) may include student-level data on par-
ticipation in and performance on college admissions and 
placement assessments. 
‘‘(e) REQUIREMENTS.—The data system required by 
subsection (a) shall be developed and implemented to en-
sure the following: 
‘‘(1) The privacy of student records, consistent 
with the Family Educational Rights and Privacy Act 
of 1974 (20 U.S.C. 1232g). 
‘‘(2) Effective data architecture and storage, in-
cluding standard definitions and formatting, and 
warehousing, including the ability to link student 
records over time and across databases and to 
produce standardized or customized reports for use 
by local educators and policymakers, that— 
‘‘(A) is based on informational needs at 
the classroom, school, local educational agency, 
State, and Federal levels; 
‘‘(B) includes, at a minimum, all data ele-
ments required for reporting under this Act; 
‘‘(C) allows for longitudinal analysis of stu-
dent achievement growth and program evalua-
tions; and 
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‘‘(D) supports analyses and research to 
evaluate the effectiveness of education related 
programs and initiatives. 
‘‘(3) Interoperability among software interfaces 
utilized to input, access, and analyze the data of 
such system. 
‘‘(4) Interoperability with the other State and 
local systems developed and implemented pursuant 
to this section. 
‘‘(5) Interoperability with the system linking 
migratory student records required under part C. 
‘‘(6) Electronic portability of data and records. 
‘‘(7) Professional development for those that 
use and operate such system. 
‘‘(8) Researcher access to the data in such sys-
tem, consistent with the Family Educational Rights 
and Privacy Act of 1974 (20 U.S.C. 1232g). 
‘‘(9) The data described in subsection (c)(7) 
shall not be used in a manner that reduces the 
rights or remedies of employees under any other 
Federal, State, or local law or under any collective 
bargaining agreement or memorandum of under-
standing. 
‘‘(f) PREEXISTING DATA SYSTEMS.—A State that de-
veloped and implemented a longitudinal data system prior 
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to the date of the enactment of this section may use that 
system for the purpose of this section, if the system other-
wise meets the requirements of this section. 
‘‘(g) CERTIFICATION.—Prior to the implementation 
of the data system required by subsection (a), a State shall 
submit an independently conducted audit to the Secretary 
certifying that the data system developed and proposed to 
be implemented by the State pursuant to this section 
meets the requirements of this section. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—For the 
purposes of meeting the requirements of this section, there 
are authorized to be appropriated $150,000,000 for fiscal 
year 2008 and each of the 3 succeeding fiscal years. 
‘‘(i) ALLOCATION.—After reserving funds under sub-
section (j), from the funds appropriated under subsection 
(h), each State shall receive an allocation. In making such 
allocation, the Secretary shall allocate 50 percent of such 
funds in a manner that provides an equal amount to each 
State. The remainder of such funds shall be allocated to 
each State based on each State’s enrollment of students 
in kindergarten through grade 12, compared to all States. 
‘‘(j) APPLICATION.—The Secretary shall allot the 
funds described in subsection (i) after the State submits 
an application for such funds at such time, in such man-
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ner, and containing such information, as the Secretary 
may require. 
‘‘(k) PENALTIES.—Where any State is found not to 
have made substantial progress toward implementation of 
such a system three years after the date of the enactment 
of this section, the Secretary may withhold up to 25 per-
cent of the State’s funds reserved under section 1004. 
‘‘(l) ALLOWABLE USES OF FUNDS.—After the Sec-
retary’s certification of the State’s data system pursuant 
to subsection (e), the State may use the funds received 
under this section to— 
‘‘(1) maintain, operate, and upgrade its data 
systems; 
‘‘(2) provide data integrity training at the 
school and local educational agency levels to address 
technology maintenance needs at the school and dis-
trict levels, privacy policies (including training re-
lated to the Family Educational Rights and Privacy 
Act of 1974), data integrity issues, report planning 
and processes; 
‘‘(3) provide professional development to teach-
ers, office personnel, and school and district admin-
istrators on how to appropriately collect, report, and 
use data; 
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