To improve the accountability provisions of the part A of title I of the Elementary and Secondary Education Act of 1965, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Child Left Behind Improvement and 
Flexibility Act of 2004''.

SEC. 2. AMENDMENTS TO ESEA.

    (a) Assessments and Adequate Yearly Progress.--
            (1) Continuous growth model.--Clause (iii) of section 
        1111(b)(2)(C) of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 6311(b)(2)(C)) is amended to read as follows:
                            ``(iii) results in continuous and 
                        substantial academic improvement for all 
                        students as demonstrated by measures of 
                        students' progress toward proficiency, 
                        including longitudinal growth at the student 
                        level or student cohort level;''.
            (2) Data averaging.--Clause (iii) of section 1111(b)(2)(J) 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6311(b)(2)(C)) is amended by inserting ``or other means 
        that increase the stability of school-building results from 
        year to year'' after ``school''.
            (3) Same subgroup, same subject.--Section 1116(b) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6316(b)) is amended--
                    (A) in paragraph (1)(A), by striking ``that fails, 
                for 2 consecutive years, to make adequate yearly 
                progress'' and inserting ``in which the same group of 
                students described in section 1111(b)(2)(C)(v) fails in 
                the same subject, for 2 consecutive years, to make 
                adequate yearly progress'';
                    (B) in paragraph (5), by striking ``that fails to 
                make adequate yearly progress'' and inserting ``that 
                fails (with respect to the same group of students and 
                the same subject described in paragraph (1)(A)) to make 
                adequate yearly progress'';
                    (C) in paragraph (7)(C), by striking ``that fails 
                to make adequate yearly progress'' and inserting ``that 
                fails (with respect to the same group of students and 
                the same subject described in paragraph (1)(A)) to make 
                adequate yearly progress''; and
                    (D) in paragraph (8)(A), by striking ``to fail to 
                make adequate yearly progress'' and inserting ``to fail 
                (with respect to the same group of students and the 
                same subject described in paragraph (1)(A)) to make 
                adequate yearly progress''.
            (4) Multiple measures.--Paragraph (2) of section 1111(b) of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6316(b)) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``and'' at the end of 
                        clause (ii);
                            (ii) by striking the period at the end of 
                        clause (iii) and inserting ``; and''; and
                            (iii) by adding at the end the following:
                            ``(iv) include with respect to each group 
                        of students described in subparagraph (C)(v) 
                        multiple measures of academic achievement, such 
                        as the proportion of State report card 
                        indicators met, a performance index score, 
                        student drop-out rate, and a measure based on 
                        individual student achievement gains over 
                        time.'';
                    (B) in clause (iv) of subparagraph (C), by striking 
                ``based primarily on the academic assessments described 
                in paragraph (3)'' and inserting ``based primarily (but 
                not more than 60 percent) on the academic assessments 
                described in paragraph (3)''; and
                    (C) by amending subparagraph (D) to read as 
                follows:
                    ``(D) Requirements for other indicators.--In 
                carrying out subparagraphs (A), (B), and (C), the State 
                shall ensure that--
                            ``(i) the indicators described in those 
                        provisions are valid and reliable, and are 
                        consistent with relevant, nationally recognized 
                        professional and technical standards, if any; 
                        and
                            ``(ii) schools identified for school 
                        improvement, corrective action, or 
                        restructuring are identified using multiple 
                        measures of assessing school performance.''.
            (5) Norm referenced assessments.--Clause (ii) of section 
        1111(b)(3)(C) of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 6316(b)(3)(C)) is amended--
                    (A) by striking ``and'' before ``provide''; and
                    (B) by inserting ``, be aligned with curriculum and 
                instruction to adequately assess their effect on each 
                content standard assessed, and include individual test 
                items that, based on technical criteria, enable 
                students to achieve the items if the students receive 
                appropriate instruction'' before the semicolon at the 
                end.
            (6) Exclusion of lep students from math assessments.--
        Clause (ix) of section 1111(b)(3)(C) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 6311(b)(30(C)) is 
        amended--
                    (A) in subclause (II), by striking ``and'' at the 
                end;
                    (B) in subclause (III)--
                            (i) by inserting ``subject to subclause 
                        (IV),'' before ``the inclusion of limited 
                        English proficient students''; and
                            (ii) by adding ``and'' at the end; and
                    (C) at the end of the clause, by adding the 
                following:
                                    ``(IV) at the discretion of the 
                                State, the exclusion of limited English 
                                proficient students who have attended 
                                school in the United States for not 
                                more than 1 school year from the 
                                academic assessments of mathematics and 
                                reading or language arts;''.
    (b) Teacher Quality.--
            (1) Highly qualified special education teachers.--Paragraph 
        (23) of section 9101 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 7801) is amended--
                    (A) in subparagraph (B)--
                            (i) in subclause (I), by inserting 
                        ``(except that a special education teacher may 
                        satisfy the requirements of this subclause by 
                        passing such a rigorous State academic subject 
                        test in special education or in any 1 subject 
                        that the teacher teaches if, with respect to 
                        each other academic subject in which the 
                        teacher teaches, the teacher works in 
                        collaboration with a teacher who is highly 
                        qualified in the subject)'' before the 
                        semicolon; and
                            (ii) by striking ``and'' at the end of the 
                        subparagraph;
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) when used with respect to a special education 
                elementary, middle, or secondary school teacher, means 
                that the teacher holds at least a bachelor's degree 
                and--
                            ``(i) has met the applicable standard in 
                        subparagraph (B) or (C); or
                            ``(ii) has successfully completed an 
                        academic major, a graduate degree, coursework 
                        equivalent to an undergraduate academic major, 
                        or advanced certification or credentialing in 
                        special education.''.
            (2) Highly qualified elementary school teachers.--Section 
        9101(23)(B)(i) of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 7801(23)(B)(i)) is amended--
                    (A) by striking ``means that the teacher'' and 
                inserting ``means that the teacher holds at least a 
                bachelor's degree and''; and
                    (B) by amending subclause (I) to read as follows:
                                    ``(I) has successfully completed a 
                                graduate degree, or advanced 
                                certification or credentialing; and''.
            (3) Portability of highly qualified status.--Subsection (a) 
        of section 1119 of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 6319) is amended by adding at the end the 
        following:
            ``(4) Transferring teachers.--
                    ``(A) In general.--Subject to subparagraph (B), if 
                a teacher transfers to a school after demonstrating at 
                another school that he or she was highly qualified, the 
                teacher is deemed to continue to satisfy the 
                requirements of subparagraph (B), (C), or (D) of 
                section 9101(23), as applicable.
                    ``(B) Exception.--If a teacher described in 
                subparagraph (A) transfers to a school in a different 
                State, the State may reject the teacher's status as 
                highly qualified to the extent that such status was 
                based on passing a rigorous State test pursuant to 
                section 9101(23)(B) or meeting a high objective uniform 
                State standard of evaluation pursuant to section 
                9101(23)(C).
                    ``(C) Definition.--For purposes of this paragraph, 
                the term `different State' means a State other than the 
                State in which the teacher demonstrated that he or she 
                was highly qualified.''.
            (4) Certification waivers.--Clause (ii) of section 
        9101(23)(A) of the Elementary and Secondary Education Act (20 
        U.S.C. 7801(23)(A)) is amended to read as follows:
                            ``(ii) the teacher does not currently have 
                        certification or licensure requirements waived 
                        on an emergency, temporary, or provisional 
                        basis;''.
    (c) Special Education Students.--
            (1) Graduation rate.--Clause (vi) of section 1111(b)(2)(C) 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6311(b)(2)(C)) is amended by inserting ``, except that 
        the State may exclude from the calculation of such percentage 
        students with disabilities who are allowed by State law to 
        remain in secondary school beyond the standard number of 
        years'' after ``who graduate from secondary school with a 
        regular diploma in the standard number of years''.
            (2) Assessing students with disabilities.--Subparagraph (C) 
        of section 1111(b)(3) of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 6311(b)(3)) is amended--
                    (A) in clause (xiv), by striking ``and'' at the 
                end;
                    (B) in clause (xv), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(xvi) notwithstanding clause (i), at the 
                        discretion of the State, provide for out-of-
                        level testing of children with disabilities.''.
    (d) Rural Schools.--
            (1) Highly qualified teachers in rural schools.--Subsection 
        (a) of section 1119 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 6319), as amended by subsection (b)(3), 
        is further amended by adding at the end the following:
            ``(5) Rural schools.--
                    ``(A) Waiver.--The Secretary may waive the 
                requirements of this subsection with respect to the 
                teachers teaching at any rural school if the school 
                demonstrates to the Secretary's satisfaction that such 
                requirements impose an undue hardship on the school 
                because of population and geographic restraints.
                    ``(B) Application.--To seek a waiver under this 
                paragraph, a school shall submit to the Secretary an 
                application at such time, in such manner, and 
                containing such information as the Secretary may 
                require. Any such application shall include--
                            ``(i) an explanation of why the 
                        requirements of this paragraph impose an undue 
                        hardship on the school because of population 
                        and geographic constraints; and
                            ``(ii) a description of the actions the 
                        school intends to take to meet such 
                        requirements.
                    ``(C) Renewal.--A waiver under this paragraph may 
                be for a period of not more than 5 years and may be 
                renewed.''.
            (2) School choice, supplemental services.--Subparagraph (E) 
        of section 1116(b)(1) of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 6316(b)(1)) is amended--
                    (A) in clause (i), by striking ``In the case of'' 
                and inserting ``Subject to clause (iii), in the case 
                of'';
                    (B) by adding at the end the following:
                            ``(iii) Rural schools.--
                                    ``(I) First year.--During the first 
                                school year following identification 
                                for school improvement under this 
                                paragraph, a rural school may make 
                                supplemental educational services 
                                available consistent with subsection 
                                (e) in lieu of providing students an 
                                opportunity to transfer under this 
                                subparagraph.
                                    ``(II) Subsequent years.--If a 
                                rural school fails to make adequate 
                                yearly progress (as set out in the 
                                State's plan under section 1111(b)(2)) 
                                by the end of the first school year 
                                following identification for school 
                                improvement under this paragraph, and 
                                the rural school demonstrates to the 
                                Secretary's satisfaction that the 
                                requirements of this subparagraph 
                                impose an undue hardship on the school 
                                because of geographic restraints, the 
                                Secretary may waive the requirements of 
                                this subparagraph with respect to the 
                                school.
                                    ``(III) Application.--To seek a 
                                waiver under this paragraph, a school 
                                shall submit to the Secretary an 
                                application at such time, in such 
                                manner, and containing such information 
                                as the Secretary may require. Any such 
                                application shall include an 
                                explanation of why the requirements of 
                                this subparagraph impose an undue 
                                hardship on the school because of 
                                geographic restraints, and a 
                                description of the actions the school 
                                intends to take to meet such 
                                requirements.
                                    ``(IV) Supplemental educational 
                                services.--This clause shall not be 
                                construed to diminish a rural school's 
                                obligation to make supplemental 
                                educational services available under 
                                paragraph (5), (7), or (8) or 
                                subsection (e).''.

Summary: No Child Left Behind Improvement and Flexibility Act of 2004 - Amends the Elementary and Secondary Education Act of 1965 (ESEA) to revise certain requirements which were added by the No Child Left Behind Act of 2001, including ones relating to: (1) academic assessments and adequate yearly progress; (2) teacher qualifications; (3) special education students; and (4) rural schools.