To modify certain amendments made by the No Child Left Behind Act of 2001.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flexibility for Individual 
Excellence in Education Act of 2007''.

SEC. 2. MODIFICATION TO AMENDMENTS MADE BY NO CHILD LEFT BEHIND ACT OF 
              2001.

    (a) Modifications to Highly Qualified Teacher Standard.--
            (1) Middle or secondary teachers new to profession may use 
        college minor.--Subclause (II) of section 9101(23)(B)(ii) of 
        the Elementary and Secondary School Act of 1965 (20 U.S.C. 
        7801(23)(B)(ii)) is amended by inserting ``or minor'' after 
        ``academic major''.
            (2) Extent time teaching is considered.--Subclause (V) of 
        section 9101(23)(C)(ii) of such Act (20 U.S.C. 7801(23)(C)(ii)) 
        is amended by striking ``not be based primarily on'' and 
        inserting ``not be based solely on''.
    (b) Extension Until 2011-12 School Year for Rural Schools To Meet 
All Highly Qualified Teacher Standards; Additional $50 Million 
Authorized To Help Rural Schools Meet Standards.--
            (1) Extension.--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 new paragraph:
            ``(4) Rural school districts.--
                    ``(A) In general.--Notwithstanding the deadline 
                described in paragraphs (2) and (3), a plan developed 
                by a State educational agency or a local educational 
                agency under this subsection shall ensure that all 
                teachers who are described in such paragraphs, but are 
                teaching in a rural school district, are highly 
                qualified not later than the end of the 2011-2012 
                school year.
                    ``(B) Definition.--For purposes of this paragraph, 
                the term `rural school district' means a local 
                educational agency that--
                            ``(i) meets the eligibility criteria 
                        described in section 6211(b), including by 
                        obtaining a waiver under paragraph (2) of such 
                        section; and
                            ``(ii) employs a percentage of teachers who 
                        are not highly qualified that is higher than 
                        the corresponding percentage for the State 
                        involved.''.
            (2) Additional funding.--Section 6234 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7355c) is amended--
                    (A) by striking ``There are'' and inserting ``(a) 
                In General.--There are''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(b) Additional Funding.--For the purpose of making grants under 
subpart 2 to be used for teacher recruitment, retention, and 
professional development activities described in section 6222(a) in 
rural school districts (as defined in section 1119(a)(4)), there are 
authorized to be appropriated $50,000,000 for fiscal year 2008 and such 
sums as may be necessary for each of the 4 following fiscal years. Such 
authorization shall be in addition to the authorization in subsection 
(a).''.
    (c) Highly Qualified Teacher Rules Limited to Teachers of Core 
Subjects.--
            (1) Title I of the Elementary and Secondary Education Act 
        of 1965 is amended by adding at the end the following new 
        section:

``SEC. 1005. HIGHLY QUALIFIED TEACHER CONCEPT LIMITED TO TEACHERS OF 
              CORE SUBJECTS.

    ``Notwithstanding any other provision of this Act, any reference in 
this Act to highly qualified teachers shall be deemed to refer only to 
teachers in core subjects.''.
            (2) The table of contents of such Act is amended by 
        inserting after the item relating to section 1004 the following 
        new item:

``Sec. 1005. Highly qualified teacher concept limited to teachers of 
                            core subjects.''.
    (d) Students With Disabilities Assessed at the Level of Instruction 
in Compliance With Their Individualized Education Plan.--Clause (ix) of 
section 1111(b)(3)(C) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6311(b)(3)(C)) is amended by striking ``and'' at the 
end of subclause (II), by adding ``and'' at the end of subclause (III), 
and by adding at the end the following new subclause:
                                    ``(IV) at the discretion of the 
                                State, the assessment of students with 
                                disabilities (as defined in section 
                                602(3) of the Individuals with 
                                Disabilities Education Act) whose 
                                instructional level in the core 
                                academic subjects is below the grade 
                                level in which the student is enrolled, 
                                by using the State assessment 
                                determined by the student's 
                                individualized education program team 
                                (as described in section 614(d)(1)(B) 
                                of such Act) to most closely correspond 
                                to the student's instructional 
                                level;''.
    (e) Use of Growth Models and Multiple Measures in Determining 
Adequate Yearly Progress.--
            (1) Growth models.--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 by striking ``for all 
        students'' and inserting ``for all students, as demonstrated by 
        measures of students' progress toward proficiency, including 
        longitudinal growth''.
            (2) Multiple measures.--Subparagraph (A) of section 
        1111(b)(2) of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 6311(b)(2)) is amended by striking ``and'' at 
        the end of clause (ii), by striking the period at the end of 
        clause (iii) and inserting ``; and'', and by adding at the end 
        the following new clause:
                            ``(iv) include multiple measures of student 
                        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, disaggregated by each of the 
                        groups of students described in subparagraph 
                        (C)(v).''.
    (f) Adequate Yearly Progress Determined by Group and Subject.--
            (1) Identification of schools in need of improvement.--
                    (A) Subparagraph (A) of section 1116(b)(1) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6316(b)(1)) is amended by striking ``that 
                fails'' and inserting ``if the same group of students 
                described in section 1111(b)(2)(C)(v) fails in the same 
                academic subject''.
                    (B) Subparagraph (C) of such section is amended by 
                striking ``almost every student in each group specified 
                in section 1111(b)(2)(C)(v) enrolled in such school is 
                meeting or exceeding the State's proficient level of 
                academic achievement'' and inserting ``almost every 
                student in each group enrolled in such school for which 
                there is such a failure in an academic subject is 
                meeting or exceeding the State's proficient level of 
                academic achievement in such subject''.
            (2) Failure to make adequate yearly progress during first 
        year after identification.--So much of the text of paragraph 
        (5) of section 1116(b) of such Act as precedes subparagraph (A) 
        is amended to read as follows: ``If, by the end of the first 
        full school year after identification under paragraph (1) of a 
        school served under this part, any group of students that met 
        the requirements for such identification in an academic subject 
        fails to make adequate yearly progress in such subject, as set 
        out in the State's plan under section 1111(b)(2), the local 
        educational agency serving such school--''.
            (3) Failure to make adequate yearly progress during second 
        year after identification.--So much of the text of subparagraph 
        (C) of section 1116(b)(7) of such Act as precedes clause (i) is 
        amended to read as follows: ``If, by the end of the second full 
        school year after identification under paragraph (1) of a 
        school served under this part, any group of students that met 
        the requirements for such identification in an academic subject 
        fails to make adequate yearly progress in such subject, as set 
        out in the State's plan under section 1111(b)(2), the local 
        educational agency shall--''.
            (4) Failure to make adequate yearly progress during first 
        year after corrective action.--So much of the text of 
        subparagraph (A) of section 1116(b)(8) of such Act as precedes 
        clause (i) is amended to read as follows: ``If, after 1 full 
        year of corrective action under paragraph (7), any group of 
        students (at the school subject to such corrective action) that 
        met the requirements for identification under paragraph (1) in 
        an academic subject continues to fail to make adequate yearly 
        progress in such subject, then the local educational agency 
        shall--''.
    (g) Needs Improvement Label To Be Group and Subject Specific.--
Subparagraph (A) of section 1116(b)(1) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6316(b)(1)) is amended by adding at 
the end the following new sentence: ``Such identification shall apply 
only to each group and subject with respect to which there is such a 
failure.''
    (h) Parental Notification of Needs Improvement To Be Group and 
Subject Specific.--Paragraph (6) of section 1116(b) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6316(b)) is amended by 
striking ``of each student enrolled in an elementary school or a 
secondary school identified for school improvement under paragraph 
(1)'' and inserting ``of each student in each group of students that 
met the requirements for identification in an academic subject under 
paragraph (1)''.
    (i) Transfer Option and Supplemental Services Limited to Students 
From Failing Groups.--
            (1) Clause (i) of section 1116(b)(1)(E) of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 6316(b)(1)(E)) 
        is amended by inserting ``in each group described in section 
        1111(b)(2)(C)(v) that met the requirements for such 
        identification'' after ``all students''.
            (2) Paragraphs (5)(A), (7)(C)(i), and (8)(A)(i) of section 
        1116(b) of such Act are each amended by inserting ``in such 
        group'' after ``all students''.
    (j) Local Educational Agencies May Choose To Offer Supplemental 
Educational Services, and Not Public School Choice, on Initial Failure 
To Make Adequate Yearly Progress.--
            (1) In general.--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 to read as follows:
                    ``(E) Public school choice or supplemental 
                educational services.--In the case of a school 
                identified for school improvement under this paragraph, 
                the local educational agency shall, not later than the 
                first day of the school year following such 
                identification--
                            ``(i) provide all students in each group 
                        described in section 1111(b)(2)(C)(v) that met 
                        the requirements for such identification (and 
                        who are enrolled in the school) with the option 
                        to transfer to another public school served by 
                        the local educational agency, which may include 
                        a public charter school, that has not been 
                        identified for school improvement under this 
                        paragraph, unless such an option is prohibited 
                        by State law, or
                            ``(ii) make supplemental educational 
                        services available consistent with subsection 
                        (e)(1) to students in such group in the 
                        academic subject to which such identification 
                        relates.
                If more than 1 school served by such agency is 
                identified for school improvement under this paragraph 
                or more than 1 group of students meets the requirements 
                for such identification, such agency shall make the 
                same choice under clause (i) or (ii) for all such 
                schools and all such groups.''.
            (2) Conforming amendment.--Paragraph (5) of section 1116(b) 
        of such Act is amended to read as follows:
            ``(5) Failure to make adequate yearly progress after 
        identification.--If, by the end of the first full school year 
        after identification under paragraph (1) of a school served 
        under this part, any group of students that met the 
        requirements for such identification in an academic subject 
        fails to make adequate yearly progress in such subject, as set 
        out in the State's plan under section 1111(b)(2), the local 
        educational agency serving such school--
                    ``(A) shall continue to provide the transfer option 
                under clause (i) of paragraph (1)(E) or to make the 
                supplemental educational services available under 
                clause (ii) of such paragraph, whichever was chosen by 
                such agency,
                    ``(B) shall provide the transfer option under such 
                clause (i) or to make the supplemental educational 
                services available under such clause (ii), whichever 
                was not chosen by such agency under such paragraph; and
                    ``(C) shall continue to provide technical 
                assistance.''.

Summary: Flexibility for Individual Excellence in Education Act of 2007 - Amends the Elementary and Secondary Education Act of 1965 to alter the requirement that teachers be highly qualified by: (1) applying it only to teachers of core subjects; (2) allowing new middle or secondary school teachers to teach subjects for which they earned a college minor; (3) allowing greater consideration to be given to the time experienced teachers have spent teaching a subject; and (4) extending the deadline for rural teachers to meet such requirements.

Provides additional funding for rural teacher recruitment, retention, and professional development activities.

Allows state determinations of students' adequate yearly progress (AYP) toward state academic performance standards to: (1) assess disabled students at the instructional level most closely corresponding to their individualized education plans; and (2) use growth models and multiple measures of student achievement.

Requires local educational agencies (LEAs) to identify schools as needing improvement, corrective action, or restructuring only if they fail to make AYP in the same subject for the same group of students over the requisite period of time. Provides school transfers and supplemental services to students in the failing group, rather than to all students in an affected school. Gives LEAs the option of providing such students with supplemental services rather than transfers for the year following a school's identification as needing improvement.