SEC. 1202
STATE OPTION TO CONDUCT ASSESSMENT SYSTEM AUDIT
Section Summary
ESSA Update
``SEC. 1202. <<NOTE: 20 USC 6362.>> STATE OPTION TO CONDUCT ASSESSMENT SYSTEM AUDIT.
``(a) In General.--From the amount reserved under section 1203(a)(3)
for a fiscal year, the Secretary shall make grants to States to enable
the States to--
``(1) in the case of a grant awarded under this section to a
State for the first time--
``(A) audit State assessment systems and ensure that
local educational agencies audit local assessments under
subsection (e)(1);
``(B) execute the State plan under subsection
(e)(3)(D); and
``(C) award subgrants under subsection (f); and
``(2) in the case of a grant awarded under this section to a
State that has previously received a grant under this section--
``(A) execute the State plan under subsection
(e)(3)(D); and
``(B) award subgrants under subsection (f).
``(b) Minimum Amount.--Each State that receives a grant under this
section shall receive an annual grant amount of not less than
$1,500,000.
``(c) Reallocation.--If a State chooses not to apply for a grant
under this section, the Secretary shall reallocate such grant amount to
other States in accordance with the formula described in section
1203(a)(4)(B).
``(d) Application.--A State desiring to receive a grant under this
section shall submit an application to the Secretary at such time and in
such manner as the Secretary shall require. The application shall
include a description of--
``(1) in the case of a State that is receiving a grant under
this section for the first time--
``(A) the audit the State will carry out under
subsection (e)(1); and
``(B) the stakeholder feedback the State will seek
in designing such audit;
``(2) in the case of a State that is not receiving a grant
under this section for the first time, the plan described in
subsection (e)(3)(D); and
``(3) how the State will award subgrants to local
educational agencies under subsection (f).
``(e) Audits of State Assessment Systems and Local Assessments.--
``(1) Audit requirements.--Not later than 1 year after the
date a State receives an initial grant under this section, the
State shall--
``(A) conduct a State assessment system audit as
described in paragraph (3);
``(B) ensure that each local educational agency
receiving funds under this section--
[[Page 129 STAT. 1882]]
``(i) conducts an audit of local assessments
administered by the local educational agency as
described in paragraph (4); and
``(ii) submits the results of such audit to
the State; and
``(C) report the results of each State and local
educational agency audit conducted under subparagraphs
(A) and (B), in a format that is widely accessible and
publicly available.
``(2) Resources for local educational agencies.--In carrying
out paragraph (1)(B), each State shall provide local educational
agencies with resources, such as guidelines and protocols, to
assist in conducting and reporting audit results.
``(3) State assessment system description.--Each State
assessment system audit conducted under paragraph (1)(A) shall
include--
``(A) the schedule for the administration of all
State assessments;
``(B) for each State assessment--
``(i) the purpose for which the assessment was
designed and the purpose for which the assessment
is used; and
``(ii) the legal authority for the
administration of the assessment;
``(C) feedback on such system from stakeholders,
which shall include information such as--
``(i) how teachers, principals, other school
leaders, and administrators use assessment data to
improve and differentiate instruction;
``(ii) the timing of release of assessment
data;
``(iii) the extent to which assessment data is
presented in an accessible and understandable
format for all stakeholders;
``(iv) the opportunities, resources, and
training teachers, principals, other school
leaders, and administrators are given to review
assessment results and make effective use of
assessment data;
``(v) the distribution of technological
resources and personnel necessary to administer
assessments;
``(vi) the amount of time teachers spend on
assessment preparation and administration;
``(vii) the assessments that administrators,
teachers, principals, other school leaders,
parents, and students, if appropriate, do and do
not find useful; and
``(viii) other information as appropriate; and
``(D) a plan, based on the information gathered as a
result of the activities described in subparagraphs (A),
(B), and (C), to improve and streamline the State
assessment system, including activities such as--
``(i) eliminating any unnecessary assessments,
which may include paying the cost associated with
terminating procurement contracts;
``(ii) supporting the dissemination of best
practices from local educational agencies or other
States that have successfully improved assessment
quality and efficiency to improve teaching and
learning; and
[[Page 129 STAT. 1883]]
``(iii) supporting local educational agencies
or consortia of local educational agencies to
carry out efforts to streamline local assessment
systems and implement a regular process of review
and evaluation of assessment use in local
educational agencies.
``(4) Local assessment description.--An audit of local
assessments conducted in accordance with paragraph (1)(B)(i)
shall include the same information described in paragraph (3)
that is required of a State audit, except that such information
shall be included as applicable to the local educational agency
and the local assessments.
``(f) Subgrants to Local Educational Agencies.--
``(1) In general.--Each State shall reserve not less than 20
percent of the grant funds awarded to the State under this
section to make subgrants to local educational agencies in the
State or consortia of such local educational agencies, based on
demonstrated need in the agency's or consortium's application,
to enable such agencies or consortia to improve assessment
quality and use, and alignment, including, if applicable,
alignment to the challenging State academic standards.
``(2) Local educational agency application.--Each local
educational agency, or consortium of local educational agencies,
seeking a subgrant under this subsection shall submit an
application to the State at such time, in such manner, and
containing such other information as determined necessary by the
State. The application shall include a description of the
agency's or consortium's needs relating to the improvement of
assessment quality, use, and alignment.
``(3) Use of funds.--A subgrant awarded under this
subsection to a local educational agency or consortium of such
agencies may be used to--
``(A) conduct an audit of local assessments under
subsection (e)(1)(B)(i);
``(B) carry out the plan described in subsection
(e)(3)(D) as it pertains to such agency or consortium;
``(C) improve assessment delivery systems and
schedules, including by increasing access to technology
and assessment proctors, where appropriate;
``(D) hire instructional coaches, or promote
teachers who may receive increased compensation to serve
as instructional coaches, to support teachers in the
development of classroom-based assessments, interpreting
assessment data, and designing instruction;
``(E) provide for appropriate accommodations to
maximize inclusion of children with disabilities and
English learners participating in assessments; and
``(F) improve the capacity of teachers, principals,
and other school leaders to disseminate assessment data
in an accessible and understandable format for parents
and families, including for children with disabilities
and English learners.
``(g) Definitions.--In this section:
``(1) Local assessment.--The term `local assessment' means
an academic assessment selected and carried out by a local
educational agency that is separate from an assessment required
under section 1111(b)(2).
[[Page 129 STAT. 1884]]
``(2) State.--The term `State' means each of the 50 States,
the District of Columbia, and the Commonwealth of Puerto Rico.
NCLB Text
``SEC. <<NOTE: 20 USC 6362.>> 1202. FORMULA GRANTS TO STATE EDUCATIONAL AGENCIES.
``(a) In General.--
``(1) Authorization to make grants.--In the case of each
State educational agency that in accordance with section 1203
submits to the Secretary an application for a 6-year period, the
Secretary, from amounts appropriated under section 1002(b)(1)
and subject to the application's approval, shall make a grant to
the State educational agency for the uses specified in
subsections (c) and (d). For each fiscal year, the funds
provided under the grant shall equal the allotment determined
for the State educational agency under subsection (b).
[[Page 115 STAT. 1536]]
``(2) Duration of grants.--Subject to subsection (e)(3), a
grant under this section shall be awarded for a period of not
more than 6 years.
``(b) Determination of Amount of Allotments.--
``(1) Reservations from appropriations.--From the total
amount made available to carry out this subpart for a fiscal
year, the Secretary--
``(A) shall reserve one-half of 1 percent for
allotments for the United States Virgin Islands, Guam,
American Samoa, and the Commonwealth of the Northern
Mariana Islands, to be distributed among these outlying
areas on the basis of their relative need, as determined
by the Secretary in accordance with the purposes of this
subpart;
``(B) shall reserve one-half of 1 percent for the
Secretary of the Interior for programs under this
subpart in schools operated or funded by the Bureau of
Indian Affairs;
``(C) may reserve not more than 2\1/2\ percent or
$25,000,000, whichever is less, to carry out section
1205 (relating to external evaluation) and section 1206
(relating to national activities);
``(D) shall reserve $5,000,000 to carry out sections
1207 and 1224 (relating to information dissemination);
and
``(E) for any fiscal year, beginning with fiscal
year 2004, for which the amount appropriated to carry
out this subpart exceeds the amount appropriated for
fiscal year 2003, shall reserve, to carry out section
1204, the lesser of--
``(i) $90,000,000; or
``(ii) 10 percent of such excess amount.
``(2) State allotments.--In accordance with paragraph (3),
the Secretary shall allot among each of the States the total
amount made available to carry out this subpart for any fiscal
year and not reserved under paragraph (1).
``(3) Determination of state allotment amounts.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall allot the amount made available under
paragraph (2) for a fiscal year among the States in
proportion to the number of children, aged 5 to 17, who
reside within the State and are from families with
incomes below the poverty line for the most recent
fiscal year for which satisfactory data are available,
compared to the number of such individuals who reside in
all such States for that fiscal year.
``(B) Exceptions.--
``(i) Minimum grant amount.--Subject to clause
(ii), no State receiving an allotment under
subparagraph (A) may receive less than one-fourth
of 1 percent of the total amount allotted under
such subparagraph.
``(ii) Puerto rico.--The percentage of the
amount allotted under subparagraph (A) that is
allotted to the Commonwealth of Puerto Rico for a
fiscal year may not exceed the percentage that was
received by the Commonwealth of Puerto Rico of the
funds allocated to all States under subpart 2 of
part A for the preceding fiscal year.
``(4) Distribution of subgrants.--The Secretary may make a
grant to a State educational agency only if the State
[[Page 115 STAT. 1537]]
educational agency agrees to expend at least 80 percent of the
amount of the funds provided under the grant for the purpose of
making, in accordance with subsection (c), competitive subgrants
to eligible local educational agencies.
``(5) Reallotment.--If a State educational agency described
in paragraph (2) does not apply for an allotment under this
section for any fiscal year, or if the State educational
agency's application is not approved, the Secretary shall
reallot such amount to the remaining State educational agencies
in accordance with paragraph (3).
``(6) Definition of state.--For purposes of this subsection,
the term `State' means each of the 50 States, the District of
Columbia, and the Commonwealth of Puerto Rico.
``(c) Subgrants to Local Educational Agencies.--
``(1) Authorization to make subgrants.--In accordance with
paragraph (2), a State educational agency that receives a grant
under this section shall make competitive subgrants to eligible
local educational agencies.
``(2) Allocation.--
``(A) Minimum subgrant amount.--In making subgrants
under paragraph (1), a State educational agency shall
allocate to each eligible local educational agency that
receives such a subgrant, at a minimum, an amount that
bears the same relation to the funds made available
under subsection (b)(4) as the amount the eligible local
educational agency received under part A for the
preceding fiscal year bears to the amount all the local
educational agencies in the State received under part A
for the preceding fiscal year.
``(B) Priority.--In making subgrants under paragraph
(1), a State educational agency shall give priority to
eligible local educational agencies in which at least--
``(i) 15 percent of the children served by the
eligible local educational agency are from
families with incomes below the poverty line; or
``(ii) 6,500 children served by the eligible
local educational agency are from families with
incomes below the poverty line.
``(3) Notice.--A State educational agency receiving a grant
under this section shall provide notice to all eligible local
educational agencies in the State of the availability of
competitive subgrants under this subsection and of the
requirements for applying for the subgrants.
``(4) Local application.--To be eligible to receive a
subgrant under this subsection, an eligible local educational
agency shall submit an application to the State educational
agency at such time, in such manner, and containing such
information as the State educational agency may reasonably
require.
``(5) State requirement.--In distributing subgrant funds to
eligible local educational agencies under this subsection, a
State educational agency shall--
``(A) provide funds in sufficient size and scope to
enable the eligible local educational agencies to
improve reading instruction; and
[[Page 115 STAT. 1538]]
``(B) provide the funds in amounts related to the
number or percentage of students in kindergarten through
grade 3 who are reading below grade level.
``(6) Limitation to certain schools.--In distributing
subgrant funds under this subsection, an eligible local
educational agency shall provide funds only to schools that
both--
``(A) are among the schools served by that eligible
local educational agency with the highest percentages or
numbers of students in kindergarten through grade 3
reading below grade level, based on the most currently
available data; and
``(B)(i) are identified for school improvement under
section 1116(b); or
``(ii) have the highest percentages or numbers of
children counted under section 1124(c).
``(7) Local uses of funds.--
``(A) Required uses.--Subject to paragraph (8), an
eligible local educational agency that receives a
subgrant under this subsection shall use the funds
provided under the subgrant to carry out the following
activities:
``(i) Selecting and administering screening,
diagnostic, and classroom-based instructional
reading assessments.
``(ii) Selecting and implementing a learning
system or program of reading instruction based on
scientifically based reading research that--
``(I) includes the essential
components of reading instruction; and
``(II) provides such instruction to
the children in kindergarten through
grade 3 in the schools served by the
eligible local educational agency,
including children who--
``(aa) may have reading
difficulties;
``(bb) are at risk of being
referred to special education
based on these difficulties;
``(cc) have been evaluated
under section 614 of the
Individuals with Disabilities
Education Act but, in accordance
with section 614(b)(5) of that
Act, have not been identified as
being a child with a disability
(as defined in section 602 of
that Act);
``(dd) are being served
under such Act primarily due to
being identified as being a
child with a specific learning
disability (as defined in
section 602 of that Act) related
to reading;
``(ee) are deficient in the
essential components of reading
skills, as listed in
subparagraphs (A) through (E) of
section 1208(3); or
``(ff) are identified as
having limited English
proficiency.
``(iii) Procuring and implementing
instructional materials, including education
technology such as software and other digital
curricula, that are based on scientifically based
reading research.
``(iv) Providing professional development for
teachers of kindergarten through grade 3, and
special
[[Page 115 STAT. 1539]]
education teachers of kindergarten through grade
12, that--
``(I) will prepare these teachers in
all of the essential components of
reading instruction;
``(II) shall include--
``(aa) information on
instructional materials,
programs, strategies, and
approaches based on
scientifically based reading
research, including early
intervention, classroom reading
materials, and remedial programs
and approaches; and
``(bb) instruction in the
use of screening, diagnostic,
and classroom-based
instructional reading
assessments and other procedures
that effectively identify
students who may be at risk for
reading failure or who are
having difficulty reading;
``(III) shall be provided by
eligible professional development
providers; and
``(IV) will assist teachers in
becoming highly qualified in reading
instruction in accordance with the
requirements of section 1119.
``(v) Collecting and summarizing data--
``(I) to document the effectiveness
of activities carried out under this
subpart in individual schools and in the
local educational agency as a whole; and
``(II) to stimulate and accelerate
improvement by identifying the schools
that produce significant gains in
reading achievement.
``(vi) Reporting data for all students and
categories of students described in section
1111(b)(2)(C)(v)(II).
``(vii) Promoting reading and library programs
that provide access to engaging reading material,
including coordination with programs funded
through grants received under subpart 4, where
applicable.
``(B) Additional uses.--Subject to paragraph (8), an
eligible local educational agency that receives a
subgrant under this subsection may use the funds
provided under the subgrant to carry out the following
activities:
``(i) Humanities-based family literacy
programs (which may be referred to as `Prime Time
Family Reading Time') that bond families around
the acts of reading and using public libraries.
``(ii) Providing training in the essential
components of reading instruction to a parent or
other individual who volunteers to be a student's
reading tutor, to enable such parent or individual
to support instructional practices that are based
on scientifically based reading research and are
being used by the student's teacher.
``(iii) Assisting parents, through the use of
materials and reading programs, strategies, and
approaches (including family literacy services)
that are based on scientifically based reading
research, to encourage reading and support their
child's reading development.
[[Page 115 STAT. 1540]]
``(8) Local planning and administration.--An eligible local
educational agency that receives a subgrant under this
subsection may use not more than 3.5 percent of the funds
provided under the subgrant for planning and administration.
``(d) State Uses of Funds.--
``(1) In general.--A State educational agency that receives
a grant under this section may expend not more than a total of
20 percent of the grant funds to carry out the activities
described in paragraphs (3), (4), and (5).
``(2) Priority.--A State educational agency shall give
priority to carrying out the activities described in paragraphs
(3), (4), and (5) for schools described in subsection (c)(6).
``(3) Professional inservice and preservice development and
review.--A State educational agency may expend not more than 65
percent of the amount of the funds made available under
paragraph (1)--
``(A) to develop and implement a program of
professional development for teachers, including special
education teachers, of kindergarten through grade 3
that--
``(i) will prepare these teachers in all the
essential components of reading instruction;
``(ii) shall include--
``(I) information on instructional
materials, programs, strategies, and
approaches based on scientifically based
reading research, including early
intervention and reading remediation
materials, programs, and approaches; and
``(II) instruction in the use of
screening, diagnostic, and classroom-
based instructional reading assessments
and other scientifically based
procedures that effectively identify
students who may be at risk for reading
failure or who are having difficulty
reading; and
``(iii) shall be provided by eligible
professional development providers;
``(B) to strengthen and enhance preservice courses
for students preparing, at all public institutions of
higher education in the State, to teach kindergarten
through grade 3 by--
``(i) reviewing such courses to determine
whether the courses' content is consistent with
the findings of the most current scientifically
based reading research, including findings on the
essential components of reading instruction;
``(ii) following up such reviews with
recommendations to ensure that such institutions
offer courses that meet the highest standards; and
``(iii) <<NOTE: Reports. Public
information. Internet.>> preparing a report on the
results of such reviews, submitting the report to
the reading and literacy partnership for the State
established under section 1203(d), and making the
report available for public review by means of the
Internet; and
``(C) to make recommendations on how the State
licensure and certification standards in the area of
reading might be improved.
``(4) Technical assistance for local educational agencies
and schools.--A State educational agency may expend
[[Page 115 STAT. 1541]]
not more than 25 percent of the amount of the funds made
available under paragraph (1) for one or more of the following:
``(A) Assisting local educational agencies in
accomplishing the tasks required to design and implement
a program under this subpart, including--
``(i) selecting and implementing a program or
programs of reading instruction based on
scientifically based reading research;
``(ii) selecting screening, diagnostic, and
classroom-based instructional reading assessments;
and
``(iii) identifying eligible professional
development providers to help prepare reading
teachers to teach students using the programs and
assessments described in clauses (i) and (ii).
``(B) Providing expanded opportunities to students
in kindergarten through grade 3 who are served by
eligible local educational agencies for receiving
reading assistance from alternative providers that
includes--
``(i) screening, diagnostic, and classroom-
based instructional reading assessments; and
``(ii) as need is indicated by the assessments
under clause (i), instruction based on
scientifically based reading research that
includes the essential components of reading
instruction.
``(5) Planning, administration, and reporting.--
``(A) Expenditure of funds.--A State educational
agency may expend not more than 10 percent of the amount
of funds made available under paragraph (1) for the
activities described in this paragraph.
``(B) Planning and administration.--A State
educational agency that receives a grant under this
section may expend funds made available under
subparagraph (A) for planning and administration
relating to the State uses of funds authorized under
this subpart, including the following:
``(i) Administering the distribution of
competitive subgrants to eligible local
educational agencies under subsection (c) and
section 1204(d).
``(ii) Assessing and evaluating, on a regular
basis, eligible local educational agency
activities assisted under this subpart, with
respect to whether they have been effective in
increasing the number of children in grades 1, 2,
and 3 served under this subpart who can read at or
above grade level.
``(C) Annual reporting.--
``(i) In general.--A State educational agency
that receives a grant under this section shall
expend funds made available under subparagraph (A)
to provide the Secretary annually with a report on
the implementation of this subpart.
``(ii) Information included.--Each report
under this subparagraph shall include information
on the following:
``(I) Evidence that the State
educational agency is fulfilling its
obligations under this subpart.
[[Page 115 STAT. 1542]]
``(II) Specific identification of
those schools and local educational
agencies that report the largest gains
in reading achievement.
``(III) The progress the State
educational agency and local educational
agencies within the State are making in
reducing the number of students served
under this subpart in grades 1, 2, and 3
who are reading below grade level, as
demonstrated by such information as
teacher reports and school evaluations
of mastery of the essential components
of reading instruction.
``(IV) Evidence on whether the State
educational agency and local educational
agencies within the State have
significantly increased the number of
students reading at grade level or
above, significantly increased the
percentages of students described in
section 1111(b)(2)(C)(v)(II) who are
reading at grade level or above, and
successfully implemented this subpart.
``(iii) Privacy protection.--Data in the
report shall be reported in a manner that protects
the privacy of individuals.
``(iv) Contract.--To the extent practicable, a
State educational agency shall enter into a
contract with an entity that conducts
scientifically based reading research, under which
contract the entity will assist the State
educational agency in producing the reports
required to be submitted under this subparagraph.
``(e) Review.--
``(1) Progress report.--
``(A) <<NOTE: Deadline.>> Submission.--Not later
than 60 days after the termination of the third year of
the grant period, each State educational agency
receiving a grant under this section shall submit a
progress report to the Secretary.
``(B) Information included.--The progress report
shall include information on the progress the State
educational agency and local educational agencies within
the State are making in reducing the number of students
served under this subpart in grades 1, 2, and 3 who are
reading below grade level (as demonstrated by such
information as teacher reports and school evaluations of
mastery of the essential components of reading
instruction). The report shall also include evidence
from the State educational agency and local educational
agencies within the State that the State educational
agency and the local educational agencies have
significantly increased the number of students reading
at grade level or above, significantly increased the
percentages of students described in section
1111(b)(2)(C)(v)(II) who are reading at grade level or
above, and successfully implemented this subpart.
``(2) Peer review.--The progress report described in
paragraph (1) shall be reviewed by the peer review panel
convened under section 1203(c)(2).
``(3) Consequences of insufficient progress.--After
submission of the progress report described in paragraph (1), if
the Secretary determines that the State educational agency is
not making significant progress in meeting the purposes
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of this subpart, the Secretary may withhold from the State
educational agency, in whole or in part, further payments under
this section in accordance with section 455 of the General
Education Provisions Act or take such other action authorized by
law as the Secretary determines necessary, including providing
technical assistance upon request of the State educational
agency.
``(f) Funds not Used for State Level Activities.--Any portion of
funds described in subsection (d)(1) that a State educational agency
does not expend in accordance with subsection (d)(1) shall be expended
for the purpose of making subgrants in accordance with subsection (c).
