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 implement
education reforms in their schools;
(5) to eliminate barriers to implementing effective State
and local education reform, while preserving the goals of opportunity
for all students and accountability for student progress;
(6) to hold participating State educational agencies and
local educational agencies accountable for increasing the academic
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.
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—
(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 demonstrate,
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 student
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 flexibility
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 agencies
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 agencies
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 FLEXIBILITY
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
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 agreement
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 agreement
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 authorized
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 demonstration
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 consolidating
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
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 thereafter
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 agencies,
and local educational agencies, and who are familiar with
educational standards, assessments, accountability, curriculum,
instruction and staff development, and other diverse educational
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 DEMONSTRATION
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 DEMONSTRATION
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 accountable.
(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 Secretary
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 compliance
with this chapter.
(B) DISAPPROVAL.—The Secretary shall not finally disapprove
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 Secretary
shall approve or disapprove such proposed amendment
prior to the later of—
(i) the expiration of the 45-day period beginning
on the date on which the proposed amendment is resubmitted;
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 provided
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.
(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 opportunity
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 demonstration
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 flexibility
demonstration agreement under this chapter unless, not less
than 6 months before the end of the original term of the agreement,
the local educational agency seeking the renewal notifies the Secretary
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).
File Type | application/msword |
File Title | ‘‘Subpart 3—State and Local Flexibility |
Author | ESMLANAUZE |
Last Modified By | doritha.ross |
File Modified | 2009-03-05 |
File Created | 2009-03-05 |