[Congressional Record Volume 145, Number 54 (Tuesday, April 20, 1999)]
[House]
[Pages H2144-H2148]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




CONFERENCE REPORT ON H.R. 800, EDUCATION FLEXIBILITY PARTNERSHIP ACT OF 
                                  1999

  Mr. GOODLING submitted the following conference report and statement 
on the bill (H.R. 800) to provide for education flexibility 
partnerships:

                  Conference Report (H. Rept. 106-100)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     800), to provide for education flexibility partnerships, 
     having met, after full and free conference, have agreed to 
     recommend and do recommend to their respective Houses as 
     follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Education Flexibility 
     Partnership Act of 1999''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) States differ substantially in demographics, in school 
     governance, and in school finance and funding. The 
     administrative and funding mechanisms that help schools in 1 
     State improve may not prove successful in other States.
       (2) Although the Elementary and Secondary Education Act of 
     1965 and other Federal education statutes afford flexibility 
     to State educational agencies and local educational agencies 
     in implementing Federal programs, certain requirements of 
     Federal education statutes or regulations may impede local 
     efforts to reform and improve education.
       (3) By granting waivers of certain statutory and regulatory 
     requirements, the Federal Government can remove impediments 
     for local educational agencies in implementing educational 
     reforms and raising the achievement levels of all children.
       (4) State educational agencies are closer to local school 
     systems, implement statewide educational reforms with both 
     Federal and State funds, and are responsible for maintaining 
     accountability for local activities consistent with State 
     standards and assessment systems. Therefore, State 
     educational agencies are often in the best position to align 
     waivers of Federal and State requirements with State and 
     local initiatives.
       (5) The Education Flexibility Partnership Demonstration Act 
     allows State educational agencies the flexibility to waive 
     certain Federal requirements, along with related State 
     requirements, but allows only 12 States to qualify for such 
     waivers.
       (6) Expansion of waiver authority will allow for the waiver 
     of statutory and regulatory requirements that impede 
     implementation of State and local educational improvement 
     plans, or that unnecessarily burden program administration, 
     while maintaining the intent and purposes of affected 
     programs, such as the important focus on improving 
     mathematics and science performance under title II of the 
     Elementary and Secondary Education Act of 1965 (Dwight D. 
     Eisenhower Professional Development Program), and maintaining 
     such fundamental requirements as those relating to civil 
     rights, educational equity, and accountability.
       (7) To achieve the State goals for the education of 
     children in the State, the focus must be on results in 
     raising the achievement of all students, not process.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Local educational agency; state educational agency; 
     outlying area.--The terms ``local educational agency'', 
     ``State educational agency'', and ``outlying area'' have the 
     meanings given the terms in section 14101 of the Elementary 
     and Secondary Education Act of 1965.
       (2) Eligible school attendance area; school attendance 
     area.--The terms ``eligible school attendance area'' and 
     ``school attendance area'' have the meanings given the terms 
     in section 1113(a)(2) of the Elementary and Secondary 
     Education Act of 1965.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (4) State.--The term ``State'' means each of the 50 States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     and each outlying area.

     SEC. 4. EDUCATION FLEXIBILITY PARTNERSHIP.

       (a) Educational Flexibility Program.--
       (1) Program authorized.--
       (A) In general.--The Secretary may carry out an educational 
     flexibility program under which the Secretary authorizes a 
     State educational agency that serves an eligible State to 
     waive statutory or regulatory requirements applicable to 1 or 
     more programs described in subsection (b), other than 
     requirements described in subsection (c), for any local 
     educational agency or school within the State.
       (B) Designation.--Each eligible State participating in the 
     program described in subparagraph (A) shall be known as an 
     ``Ed-Flex Partnership State''.
       (2) Eligible state.--For the purpose of this section the 
     term ``eligible State'' means a State that--
       (A) has--
       (i) developed and implemented the challenging State content 
     standards, challenging State student performance standards, 
     and aligned assessments described in section 1111(b) of the 
     Elementary and Secondary Education Act of 1965, and for which 
     local educational agencies in the State are producing the 
     individual school performance profiles required by section 
     1116(a)(3) of such Act; or
       (ii)(I) developed and implemented the content standards 
     described in clause (i);
       (II) developed and implemented interim assessments; and
       (III) made substantial progress (as determined by the 
     Secretary) toward developing and implementing the performance 
     standards and final aligned assessments described in clause 
     (i), and toward having local educational agencies in the 
     State produce the profiles described in clause (i);
       (B) holds local educational agencies and schools 
     accountable for meeting the educational goals described in 
     the local applications submitted under paragraph (4) and for 
     engaging in technical assistance and corrective actions 
     consistent with section 1116 of the Elementary and Secondary 
     Education Act of 1965, for the local educational agencies and 
     schools that do not make adequate yearly progress as 
     described in section 1111(b)(2) of such Act; and
       (C) waives State statutory or regulatory requirements 
     relating to education while holding local educational 
     agencies or schools within the State that are affected by 
     such waivers accountable for the performance of the students 
     who are affected by such waivers.

[[Page H2145]]

       (3) State application.--
       (A) In general.--Each State educational agency desiring to 
     participate in the educational flexibility program under this 
     section shall submit an application to the Secretary at such 
     time, in such manner, and containing such information as the 
     Secretary may reasonably require. Each such application shall 
     demonstrate that the eligible State has adopted an 
     educational flexibility plan for the State that includes--
       (i) a description of the process the State educational 
     agency will use to evaluate applications from local 
     educational agencies or schools requesting waivers of--

       (I) Federal statutory or regulatory requirements as 
     described in paragraph (1)(A); and
       (II) State statutory or regulatory requirements relating to 
     education;

       (ii) a detailed description of the State statutory and 
     regulatory requirements relating to education that the State 
     educational agency will waive;
       (iii) a description of clear educational objectives the 
     State intends to meet under the educational flexibility plan;
       (iv) a description of how the educational flexibility plan 
     is consistent with and will assist in implementing the State 
     comprehensive reform plan or, if a State does not have a 
     comprehensive reform plan, a description of how the 
     educational flexibility plan is coordinated with activities 
     described in section 1111(b) of the Elementary and Secondary 
     Education Act of 1965;
       (v) a description of how the State educational agency will 
     evaluate, (consistent with the requirements of title I of the 
     Elementary and Secondary Education Act of 1965), the 
     performance of students in the schools and local educational 
     agencies affected by the waivers; and
       (vi) a description of how the State educational agency will 
     meet the requirements of paragraph (8).
       (B) Approval and considerations.--The Secretary may approve 
     an application described in subparagraph (A) only if the 
     Secretary determines that such application demonstrates 
     substantial promise of assisting the State educational agency 
     and affected local educational agencies and schools within 
     the State in carrying out comprehensive educational reform, 
     after considering--
       (i) the eligibility of the State as described in paragraph 
     (2);
       (ii) the comprehensiveness and quality of the educational 
     flexibility plan described in subparagraph (A);
       (iii) the ability of the educational flexibility plan to 
     ensure accountability for the activities and goals described 
     in such plan;
       (iv) the degree to which the State's objectives described 
     in subparagraph (A)(iii)--

       (I) are clear and have the ability to be assessed; and
       (II) take into account the performance of local educational 
     agencies or schools, and students, particularly those 
     affected by waivers;

       (v) the significance of the State statutory or regulatory 
     requirements relating to education that will be waived; and
       (vi) the quality of the State educational agency's process 
     for approving applications for waivers of Federal statutory 
     or regulatory requirements as described in paragraph (1)(A) 
     and for monitoring and evaluating the results of such 
     waivers.
       (4) Local application.--
       (A) In general.--Each local educational agency or school 
     requesting a waiver of a Federal statutory or regulatory 
     requirement as described in paragraph (1)(A) and any relevant 
     State statutory or regulatory requirement from a State 
     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. Each such application shall--
       (i) indicate each Federal program affected and each 
     statutory or regulatory requirement that will be waived;
       (ii) describe the purposes and overall expected results of 
     waiving each such requirement;
       (iii) describe, for each school year, specific, measurable, 
     educational goals for each local educational agency or school 
     affected by the proposed waiver, and for the students served 
     by the local educational agency or school who are affected by 
     the waiver;
       (iv) explain why the waiver will assist the local 
     educational agency or school in reaching such goals; and
       (v) in the case of an application from a local educational 
     agency, describe how the local educational agency will meet 
     the requirements of paragraph (8).
       (B) Evaluation of applications.--A State educational agency 
     shall evaluate an application submitted under subparagraph 
     (A) in accordance with the State's educational flexibility 
     plan described in paragraph (3)(A).
       (C) Approval.--A State educational agency shall not approve 
     an application for a waiver under this paragraph unless--
       (i) the local educational agency or school requesting such 
     waiver has developed a local reform plan that is applicable 
     to such agency or school, respectively;
       (ii) the waiver of Federal statutory or regulatory 
     requirements as described in paragraph (1)(A) will assist the 
     local educational agency or school in reaching its 
     educational goals, particularly goals with respect to school 
     and student performance; and
       (iii) the State educational agency is satisfied that the 
     underlying purposes of the statutory requirements of each 
     program for which a waiver is granted will continue to be 
     met.
       (D) Termination.--The State educational agency shall 
     annually review the performance of any local educational 
     agency or school granted a waiver of Federal statutory or 
     regulatory requirements as described in paragraph (1)(A) in 
     accordance with the evaluation requirement described in 
     paragraph (3)(A)(v), and shall terminate any waiver granted 
     to the local educational agency or school if the State 
     educational agency determines, after notice and an 
     opportunity for a hearing, that the local educational agency 
     or school's performance with respect to meeting the 
     accountability requirement described in paragraph (2)(C) and 
     the goals described in paragraph (4)(A)(iii)--
       (i) has been inadequate to justify continuation of such 
     waiver; or
       (ii) has decreased for 2 consecutive years, unless the 
     State educational agency determines that the decrease in 
     performance was justified due to exceptional or 
     uncontrollable circumstances.
       (5) Oversight and reporting.--
       (A) Oversight.--Each State educational agency participating 
     in the educational flexibility program under this section 
     shall annually monitor the activities of local educational 
     agencies and schools receiving waivers under this section.
       (B) State reports.--
       (i) Annual reports.--The State educational agency shall 
     submit to the Secretary an annual report on the results of 
     such oversight and the impact of the waivers on school and 
     student performance.
       (ii) Performance data.--Not later than 2 years after the 
     date a State is designated an Ed-Flex Partnership State, each 
     such State shall include, as part of the State's annual 
     report submitted under clause (i), data demonstrating the 
     degree to which progress has been made toward meeting the 
     State's educational objectives. The data, when applicable, 
     shall include--

       (I) information on the total number of waivers granted for 
     Federal and State statutory and regulatory requirements under 
     this section, including the number of waivers granted for 
     each type of waiver;
       (II) information describing the effect of the waivers on 
     the implementation of State and local educational reforms 
     pertaining to school and student performance;
       (III) information describing the relationship of the 
     waivers to the performance of schools and students affected 
     by the waivers; and
       (IV) an assurance from State program managers that the data 
     reported under this section are reliable, complete, and 
     accurate, as defined by the State, or a description of a plan 
     for improving the reliability, completeness, and accuracy of 
     such data as defined by the State.

       (C) Secretary's reports.--The Secretary, not later than 2 
     years after the date of enactment of this Act and annually 
     thereafter, shall--
       (i) make each State report submitted under subparagraph (B) 
     available to Congress and the public; and
       (ii) submit to Congress a report that summarizes the State 
     reports and describes the effects that the educational 
     flexibility program under this section had on the 
     implementation of State and local educational reforms and on 
     the performance of students affected by the waivers.
       (6) Duration of federal waivers.--
       (A) In general.--The Secretary shall not approve the 
     application of a State educational agency under paragraph (3) 
     for a period exceeding 5 years, except that the Secretary may 
     extend such period if the Secretary determines that such 
     agency's authority to grant waivers--
       (i) has been effective in enabling such State or affected 
     local educational agencies or schools to carry out their 
     State or local reform plans and to continue to meet the 
     accountability requirement described in paragraph (2)(C); and
       (ii) has improved student performance.
       (B) Performance review.--Three years after the date a State 
     is designated an Ed-Flex Partnership State, the Secretary 
     shall review the performance of the State educational agency 
     in granting waivers of Federal statutory or regulatory 
     requirements as described in paragraph (1)(A) and shall 
     terminate such agency's authority to grant such waivers if 
     the Secretary determines, after notice and an opportunity for 
     a hearing, that such agency's performance (including 
     performance with respect to meeting the objectives described 
     in paragraph (3)(A)(iii)) has been inadequate to justify 
     continuation of such authority.
       (C) Renewal.--In deciding whether to extend a request for a 
     State educational agency's authority to issue waivers under 
     this section, the Secretary shall review the progress of the 
     State educational agency to determine if the State 
     educational agency--
       (i) has made progress toward achieving the objectives 
     described in the application submitted pursuant to paragraph 
     (3)(A)(iii); and
       (ii) demonstrates in the request that local educational 
     agencies or schools affected by the waiver authority or 
     waivers have made progress toward achieving the desired 
     results described in the application submitted pursuant to 
     paragraph (4)(A)(iii).
       (7) Authority to issue waivers.--Notwithstanding any other 
     provision of law, the Secretary is authorized to carry out 
     the educational flexibility program under this section for 
     each of the fiscal years 1999 through 2004.
       (8) Public notice and comment.--Each State educational 
     agency seeking waiver authority under this section and each 
     local educational agency seeking a waiver under this 
     section--
       (A) shall provide the public with adequate and efficient 
     notice of the proposed waiver authority or waiver, consisting 
     of a description of the agency's application for the proposed 
     waiver authority or waiver in a widely read or distributed 
     medium, including a description of any improved student 
     performance that is expected to result from the waiver 
     authority or waiver;
       (B) shall provide the opportunity for parents, educators, 
     and all other interested members of the community to comment 
     regarding the proposed waiver authority or waiver;

[[Page H2146]]

       (C) shall provide the opportunity described in subparagraph 
     (B) in accordance with any applicable State law specifying 
     how the comments may be received, and how the comments may be 
     reviewed by any member of the public; and
       (D) shall submit the comments received with the agency's 
     application to the Secretary or the State educational agency, 
     as appropriate.
       (b) Included Programs.--The statutory or regulatory 
     requirements referred to in subsection (a)(1)(A) are any such 
     requirements for programs carried out under the following 
     provisions:
       (1) Title I of the Elementary and Secondary Education Act 
     of 1965 (other than subsections (a) and (c) of section 1116 
     of such Act).
       (2) Part B of title II of the Elementary and Secondary 
     Education Act of 1965.
       (3) Subpart 2 of part A of title III of the Elementary and 
     Secondary Education Act of 1965 (other than section 3136 of 
     such Act).
       (4) Title IV of the Elementary and Secondary Education Act 
     of 1965.
       (5) Title VI of the Elementary and Secondary Education Act 
     of 1965.
       (6) Part C of title VII of the Elementary and Secondary 
     Education Act of 1965.
       (7) The Carl D. Perkins Vocational and Technical Education 
     Act of 1998.
       (c) Waivers Not Authorized.--The Secretary and the State 
     educational agency may not waive under subsection (a)(1)(A) 
     any statutory or regulatory requirement--
       (1) relating to--
       (A) maintenance of effort;
       (B) comparability of services;
       (C) equitable participation of students and professional 
     staff in private schools;
       (D) parental participation and involvement;
       (E) distribution of funds to States or to local educational 
     agencies;
       (F) serving eligible school attendance areas in rank order 
     under section 1113(a)(3) of the Elementary and Secondary 
     Education Act of 1965;
       (G) the selection of a school attendance area or school 
     under subsections (a) and (b) of section 1113 of the 
     Elementary and Secondary Education Act of 1965, except that a 
     State educational agency may grant a waiver to allow a school 
     attendance area or school to participate in activities under 
     part A of title I of such Act if the percentage of children 
     from low-income families in the school attendance area of 
     such school or who attend such school is not less than 10 
     percentage points below the lowest percentage of such 
     children for any school attendance area or school of the 
     local educational agency that meets the requirements of 
     such subsections (a) and (b);
       (H) use of Federal funds to supplement, not supplant, non-
     Federal funds; and
       (I) applicable civil rights requirements; and
       (2) unless the underlying purposes of the statutory 
     requirements of the program for which a waiver is granted 
     continue to be met to the satisfaction of the Secretary.
       (d) Treatment of Existing Ed-Flex Partnership States.--
       (1) In general.--Except as provided in paragraphs (3) and 
     (4), this section shall not apply to a State educational 
     agency that has been granted waiver authority under the 
     provisions of law described in paragraph (2) for the duration 
     of the waiver authority.
       (2) Applicable provisions.--The provisions of law referred 
     to in paragraph (1) are as follows:
       (A) Section 311(e) of the Goals 2000: Educate America Act.
       (B) The proviso referring to such section 311(e) under the 
     heading ``education reform'' in the Department of Education 
     Appropriations Act, 1996 (Public Law 104-134; 110 Stat. 1321-
     229).
       (3) Special rule.--If a State educational agency granted 
     waiver authority pursuant to the provisions of law described 
     in subparagraph (A) or (B) of paragraph (2) applies to the 
     Secretary for waiver authority under this section--
       (A) the Secretary shall review the progress of the State 
     educational agency in achieving the objectives set forth in 
     the application submitted pursuant to section 311(e) of the 
     Goals 2000: Educate America Act; and
       (B) the Secretary shall administer the waiver authority 
     granted under this section in accordance with the 
     requirements of this section.
       (4) Technology.--In the case of a State educational agency 
     granted waiver authority under the provisions of law 
     described in subparagraph (A) or (B) of paragraph (2), the 
     Secretary shall permit a State educational agency to expand, 
     on or after the date of enactment of this Act, the waiver 
     authority to include programs under subpart 2 of part A of 
     title III of the Elementary and Secondary Education Act of 
     1965 (other than section 3136 of such Act).
       (e) Publication.--A notice of the Secretary's decision to 
     authorize State educational agencies to issue waivers under 
     this section, including a description of the rationale the 
     Secretary used to approve applications under subsection 
     (a)(3)(B), shall be published in the Federal Register and the 
     Secretary shall provide for the dissemination of such notice 
     to State educational agencies, interested parties (including 
     educators, parents, students, and advocacy and civil rights 
     organizations), and the public.

     SEC. 5. FLEXIBILITY TO DESIGN CLASS SIZE REDUCTION PROGRAMS.

       Section 307 of the Department of Education Appropriations 
     Act, 1999, is amended--
       (1) in subsection (b)(2), by inserting ``(except as 
     provided in subsection (c)(2)(D))'' before the period; and
       (2) in subsection (c)(2), by adding at the end the 
     following:
       ``(D) If a local educational agency has already reduced 
     class size in the early grades to 18 or fewer children and 
     intends to use funds provided under this section to carry out 
     professional development activities, including activities to 
     improve teacher quality, then the State shall make the award 
     under subsection (b) to the local educational agency without 
     requiring the formation of a consortium.''.

     SEC. 6. ALTERNATIVE EDUCATIONAL SETTING.

       (a) In General.--Section 615(k)(1)(A)(ii)(I) of the 
     Individuals with Disabilities Education Act (20 U.S.C. 
     1415(k)(1)(A)(ii)(I)) is amended to read as follows:

       ``(I) the child carries or possesses a weapon to or at 
     school, on school premises, or to or at a school function 
     under the jurisdiction of a State or a local educational 
     agency; or''.

       (b) Application.--The amendment made by subsection (a) 
     shall apply to conduct occurring not earlier than the date of 
     enactment of this Act.

       And the Senate agree to the same.
     Bill Goodling,
     Peter Hoekstra,
     Michael N. Castle,
     James Greenwood,
     Mark Souder,
     Bob Schaffer,
                                Managers on the Part of the House.

     Jim Jeffords,
     Judd Gregg,
     Bill Frist,
     Mike DeWine,
     Michael B. Enzi,
     Tim Hutchinson,
     Susan Collins,
     Sam Brownback,
     Chuck Hagel,
     Jeff Sessions,
     Ted Kennedy,
     Chris Dodd,
     Tom Harkin,
     Barbara A. Mikulski,
     Jeff Bingaman,
     Patty Murray,
     Jack Reed,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 800) to provide for 
     education flexibility partnerships, submit the following 
     joint statement to the House and the Senate in explanation of 
     the effect of the action agreed upon by the managers and 
     recommended in the accompanying conference report:


                              Short Title

       1. Both the House bill and the Senate amendment are 
     identical in this section.


                                Findings

       2. The findings are identical in both the House bill and 
     the Senate amendment except for finding (6). See note 3.
       Descriptive note.
       3. The House bill, but not the Senate amendment, mentions 
     the important focus on math and science in the Eisenhower 
     Professional Development Program as an example of the intent 
     and purposes of programs to be maintained under Ed-Flex.
       The Senate recedes.


                              Definitions

       4. The House bill, but not the Senate amendment, contains 
     two additional definitions. Those are: ``attendance area'' 
     because this term is mentioned in (c)(F), which defines an 
     unauthorized Title I school eligibility waiver and ``Ed-Flex 
     Partnership State'' in order to make clear that the term 
     refers to an eligible state. The Senate amendment, but not 
     the House bill includes a definition of ``outlying areas''. 
     The House bill refers to this definition under ESEA.
       The Senate recedes on attendance area. The House recedes on 
     Ed-Flex Partnership State and the Senate recedes with an 
     amendment to include cross-reference to the definition of 
     ``outlying area.''


               Education Flexibility Partnership Program

       5. The Senate amendment, but not the House bill, in Part 
     (a)(1)(A) does not permit the State to waive requirements on 
     itself.
       The House recedes.


                             Eligible State

       6. The House bill requires a state to have implemented more 
     of their Title I plan than the Senate amendment. See Notes 7 
     and 8. The House bill and the Senate amendment differ in how 
     they measure the performance of local applicants. See Note 9.
       7. The Senate amendment but not the House bill, includes 
     the phrase, ``including the requirements of that section 
     relating to disaggregation of data.'' The House bill refers 
     to disaggregation of data by reference.
       The Senate recedes. Provisions regarding disaggregation of 
     data are included in the portion of section 1111(b) of the 
     Elementary and Secondary Education Act which deals with 
     assessments. These provisions were highlighted in the Senate 
     bill, but specific reference to them was not included in the 
     conference agreement. Conferees were concerned that a 
     specific reference to only one of the requirements of section 
     1111(b) could create the inaccurate impression that States 
     wanting to participate in the educational flexibility 
     programs would be held to requirements beyond those currently 
     in the law.
       8. The House bill requires content standards and interim 
     assessments to be in place, in addition to having made 
     substantial progress towards developing and implementing 
     performance standards and final aligned assessments. The 
     Senate amendment requires substantial progress for content 
     and performance standards as well as final aligned 
     assessments.

[[Page H2147]]

       The Senate recedes. The Conferees would like to clarify 
     congressional intent with respect to State compliance with 
     the Elementary and Secondary Education Act (ESEA) Title I, 
     Part A, standards and assessment requirements (Sec. 1111(b)) 
     as an eligibility criterion both for Ed-Flex authority under 
     H.R. 800 and for participation in ESEA, Title 1, Part A. 
     Under both Ed-Flex and Title 1, Part A, uniform State 
     standards and uniform State assessments are not required as a 
     condition for either being granted Ed-Flex authority or 
     continuing to receive financial assistance under Title 1, 
     Part A. However, if a State does not have uniform State 
     standards and assessments, the State must have in effect, or 
     be making substantial progress toward having in effect, local 
     standards and assessments approved by the State in order for 
     the State to be granted Ed-Flex authority. The Conferees 
     expect the Department of Education to maintain its current 
     interpretation of the provisions of ESEA, Title 1, Section 
     1111(b) as published in the policy guidance in 1997. This 
     guidance reflects the understanding of the Conferees that 
     States, such as Nebraska and Iowa, can comply with section 
     1111(b) of Title 1, Part A if the State has implemented 
     uniform statewide standards and assessments, has a statewide 
     system with local standards and assessments approved by the 
     State; or has local standards or assessments approved by the 
     State on the basis of models or criteria to ensure 
     challenging standards and high quality, aligned assessments.
       9. The House bill requires states to hold LEAs and schools 
     accountable for meeting goals listed in waiver applications 
     to be eligible. The Senate amendment has an additional 
     requirement that States are implementing corrective action 
     measures under Title I for schools that fail to make adequate 
     yearly progress.
       The Senate recedes with an amendment to insert the words 
     ``and for engaging in the technical assistance and corrective 
     actions consistent with section 1116 of the Elementary and 
     Secondary Education Act of 1965, for the local educational 
     agencies and schools that do not make adequate yearly 
     progress as described in section 1111(b) of that Act'' after 
     ``paragraph (4)''.


                           State Application

       10. The House bill and Senate amendment differ in how 
     States are to measure and set objectives. See Note 11-14.
       11. The House bill, but not the Senate amendment, requires 
     states to describe specific objectives in their application.
       The Senate recedes with an amendment to delete ``specific'' 
     and insert ``clear.''
       12. The Senate amendment, but not the House bill requires 
     state applications to reference State comprehensive plans or 
     Section 1111(b) of ESEA (Title I standards and assessments).
       The House recedes.
       13. The House bill, but not the Senate amendment, requires 
     local progress to be measured by using the local applicants' 
     objectives, as defined by the section of the bill 
     (a)(4)(A)(iii) requiring local applicants to set specific and 
     measurable goals for schools and groups of students affected 
     by waivers. The Senate amendment, but not the House bill, 
     requires States to evaluate the performance of local 
     applicants and students affected by waivers in general, not 
     defined by local applications.
       The House recedes.
       14. Both the House bill and the Senate amendment require 
     States to describe how they will notify the public of waivers 
     granted. The House bill requires States to provide assurances 
     that it will provide notice with a minimum requirement of 30 
     days or in accordance with state law. The Senate amendment 
     requires ``adequate and efficient'' notice and opportunity 
     for comment. See note 18 for local comment and notice.
       The House recedes.


                      Approval and Considerations

       15. The Senate amendment, but not the House bill, 
     explicitly requires the Secretary to consider a state's 
     eligibility for Ed-Flex in approving their application. The 
     House bill, but not the Senate amendment requires the 
     Secretary to evaluate their objectives according to their 
     specificity and their connection to students, schools and 
     districts.
       The Senate recedes with an amendment to add (B)(i) from the 
     Senate bill and to revise (B)(iii) of the House bill to read 
     as follows: ``(iii) the degree to which the State's 
     objectives described in subparagraph (A)(iii)--
       ``(I) are clear and have the ability to be assessed; and
       ``(II) take into account the performance of local 
     educational agencies or schools and students, particularly 
     those affected by waivers.''


                           Local Application

       16. Both the House bill and the Senate amendment are 
     identical with the exception of (iii) and (v). See notes 17 
     and 18.
       17. The House bill, but not the Senate amendment, requires 
     goals for each group of students affected by a proposed 
     waiver, in addition to the LEA or school.
       The Senate recedes with an amendment to revise ``(iii)'' to 
     read as follows:

       (iii) describe, for each school year, specific, measurable, 
     educational goals for each local educational agency or school 
     affected by the proposed waiver and their students;

       18. Local public notice and comment: See Note 14.
       The House recedes.


                       Evaluation of Applications

       19. Both the House bill and the Senate amendment are 
     identical.
       20. The Senate amendment stipulates that the SEA should 
     consider how a waiver will help improve school and student 
     performance when evaluating applications. The House bill 
     requires the SEA to be satisfied that the LEA or school will 
     continue to meet the underlying purposes of the statues 
     included in this legislation.
       The House and Senate recede taking both provisions.
       21. The House bill requires a statistically significant 
     decrease for two consecutive years until waivers can be 
     terminated. The Senate amendment requires termination if 
     performance has been ``inadequate'' to justify continuing the 
     waiver.
       The House recedes with an amendment to have the title read 
     ``Termination'' and to insert at the end of (5)(B) of the 
     Senate bill the following: ``or has decreased for two 
     consecutive years (unless the State educational agency 
     determines that the decrease in performance was justified due 
     to exceptional or uncontrollable circumstances).''


                        Oversight and Reporting

       22. The House bill entitles this section Oversight and 
     Reporting. The Senate amendment entitles this section 
     ``Monitoring and Performance Review.''
       The Senate recedes.
       23. The House bill, but not the Senate amendment, 
     stipulates that monitoring ``shall include a review of 
     relevant audit, technical assistance, evaluation, and 
     performance reports.'' Both the House bill and the Senate 
     amendment require states to submit an annual report, but the 
     House bill states this in (ii) and the Senate amendment 
     states this in (i).
       The Senate recedes with an amendment to strike ``Such 
     monitoring shall include a review of relevant audit, 
     technical assistance, evaluation, and performance reports.'' 
     While not listing in statute the specific reports to be 
     reviewed, the conferees anticipate that State educational 
     agencies will utilize these resources in their monitoring of 
     local educational agencies and schools which have received 
     waivers.
       24. The House bill and the Senate amendment require states 
     to submit performance data. However, the House bill, but not 
     the Senate amendment, requires States to submit performance 
     data after two years of being an Ed-Flex state.
       The Senate recedes.


                            progress reports

       25. The House bill requires the Secretary to report to 
     Congress on an annual basis the impact of Ed-Flex on 
     performance objectives and to make state reports available to 
     Congress. The Senate amendment requires a report to Congress 
     after the first year and biennially thereafter. In general, 
     the Senate amendment requires the Secretary to report what 
     the House bill prescribes for the states. The Senate 
     amendment in (1) requires the Secretary to describe the 
     federal statutes and regulations for which they have received 
     waiver authority. The House bill but not the Senate amendment 
     specifies the type of information to be reported on waivers 
     granted. The Senate amendment only requires information on 
     waivers of state regulations and statutes. The House bill, 
     but not the Senate amendment requires specific data on types 
     of waivers granted and requires a report on the relationship 
     between the waivers and meeting objectives. The Senate 
     amendment in 3 and 4 requires that they describe ``the 
     effect'' on implementation of reforms and student 
     performance. (cf. Note 38).

       The Senate recedes with an amendment to: (a) change 
     (B)(i)(II) to read as follows--``information describing the 
     effect of waivers granted on the implementation of State and 
     local educational reforms pertaining to school and student 
     performance;'' (b) add a new (B)(i)(III) to read as follows--
     ``information describing the relationship of waivers granted 
     to the performance of schools and students affected by the 
     waivers.'' (c) add a new (B)(i)(IV) ``an assurance from State 
     program managers that the data reported under this section 
     are reliable, complete, and accurate, as defined by the 
     State, or a description of a plan for improving the 
     reliability, completeness, and accuracy of such data as 
     defined by the State.'' (d) change (B)(ii)(II) to read as 
     follows--``submit to Congress a report that summarizes the 
     State reports ensuring that such reports address the effect 
     that the educational flexibility program under this section 
     has had on the implementation of State and local educational 
     reforms and on the performance of students affected by the 
     waivers.''


                      duration of federal waivers

       26. The Senate amendment, but not the House bill, requires 
     that states ``continue to meet the accountability 
     requirements described in subsection (a)(2)(B), and has 
     improved student performance'' in order for authority to be 
     extended.
       The House recedes.


                           performance review

       27. The House bill requires that the Secretary review the 
     performance of States after three years of being an Ed-Flex 
     State. The Senate amendment requires the Secretary to review 
     the performance of States ``periodically.''
       The House recedes with an amendment specifying that the 
     review be conducted three years after designation and to 
     insert ``, including meeting the objectives described in 
     paragraph (3)(A)(iii),'' after ``performance''.

[[Page H2148]]

                       authority to issue waivers

       28. The House bill authorizes this program beginning in FY 
     1999. The Senate amendment begins this authorization in FY 
     2000.
       The Senate recedes.


                       public notice and comment

       29. See Notes 14 and 18.
       The House recedes with an amendment to insert after 
     ``waiver'' in line 6 ``, including a description of any 
     improved performance of students that is expected to result 
     from the waiver authority or waiver,'' and to insert after 
     ``received'' on line 11 ``and made available for review by 
     any member of the public,''.


                           included programs

       30. The House bill and the Senate amendment are identical 
     except that subsection 4(b)(1) of the Senate amendment 
     excludes the Local Review and School Improvement sections of 
     Title I.
       The House recedes. It is the intent of the conferees that, 
     if an LEA has higher standards than the State standard, then 
     locally approved standards may be used for purposes of 
     determining schools in need of improvement or need for 
     corrective action.


                         waivers not authorized

       31. The Senate amendment specifies that the Secretary and 
     the State may not waive these provisions. The House bill only 
     addresses the Secretary.
       The House recedes.


                            title i waivers

       32. The House bill prohibits Title I school eligibility 
     waivers unless they are marginally below the necessary 
     poverty level. The Senate amendment prohibits waivers of 
     Title I rank-order requirements for schools with more than 
     75% poverty.
       The House recedes on Senate language and the Senate recedes 
     on House language with an amendment changing the low-income 
     percentage from within 5 percentage points to 10 percentage 
     points, and clarifying the applicable subsections of section 
     1113 of Title I, Part A of the Elementary and Secondary 
     Education Act.


                  treatment of existing ed-flex states

       33. The House bill protects the authority of current Ed-
     Flex States by stating that this Act does not apply to them 
     until they apply to renew their authority. The Senate 
     amendment permanently exempts existing Ed-Flex States from 
     being affected by this statute.
       The Senate recedes with an amendment which makes clear that 
     the performance of the current 12 Ed-Flex States will be 
     judged, when they re-apply for Ed-Flex status at the end of 
     their current 5 year period, on the basis of section 311(e) 
     of the Goals 2000: Educate America Act. The application 
     itself, must conform to the new requirements of the Education 
     Flexibility Partnership Act. The amendment also provides 
     that, upon enactment of this Act, the 12 existing Ed-Flex 
     States may exercise Ed-Flex waiver authority with respect to 
     the technology programs under subpart 2 of part A of Title 
     III of the Elementary and Secondary Education Act (other than 
     section 3136 of such Act).


                                renewal

       34. The House bill stipulates when renewing Ed-Flex 
     Authority, the Secretary must determine whether SEAs have 
     made measureable progress in accordance with their measurable 
     objectives, as well as whether SEAs demonstrate that LEAs or 
     schools have made measurable progress. The House bill also 
     exempts current Ed-Flex States (see Note 33). The Senate 
     amendment requires the Secretary to review generally the 
     progress of those affected by Ed-Flex authority or waivers 
     towards meeting goals set in local applications.
       The Senate recedes with an amendment striking the word 
     ``measurable'' in (e)(1)(A) and (B) and changing the word 
     ``Accountability'' in the heading to ``Renewal''.
       35. The House bill, but not the Senate amendment, clarifies 
     that when current Ed-Flex States apply to renew their 
     authority, their progress should be measured in accordance 
     with the terms under which they were granted their authority. 
     However, when their authority expires and they receive 
     renewed authority this law will apply to them.
       The Senate recedes. The conferees have addressed renewal 
     for the 12 Ed-Flex States in note 33.


                              publication

       36. The Senate amendment, but not the House bill, requires 
     the Secretary to include the rationale for granting a State 
     Ed-Flex authority when publishing notice in the Federal 
     Register.
       The House recedes.


                             effective date

       37. The House bill, but not the Senate amendment, sunsets 
     this law when ESEA reauthorization is enacted.
       The House recedes. The Conferees believe that when the 
     Congress considers the Elementary and Secondary Education Act 
     it will have to take into consideration the changes made to 
     this Act and make whatever changes and adjustments are 
     required to ensure that both laws operate in a coordinated 
     fashion so as to provide as much flexibility as possible to 
     States and local educational agencies.


               flexibility to design class size reduction

       38. The Senate amendment, but not the House bill, includes 
     findings stating the impact of fully funding IDEA and amends 
     the 1999 Omnibus Appropriations Act to allow LEAs to use 
     class size reduction funds for IDEA part B.
       The Senate recedes with an amendment providing that, if a 
     local educational agency has a class size in grades 1 through 
     3 of 18 or fewer children, the local educational agency may 
     use the funds made available for class-size reduction under 
     the Department of Education Appropriations Act for fiscal 
     year 1999 for professional development without entering into 
     a consortia.
       Currently, a local educational agency that is eligible for 
     amounts less than the starting salary for a teacher must form 
     a consortium in order to receive any class-size reduction 
     funds. Under the conference agreement, such an agency would 
     still have to form a consortium if it does not meet the 
     criteria of having a class size in grades 1 through 3 of 18 
     or fewer children or if it plans to use the funds to reduce 
     class size. Such an agency would not have to form a 
     consortium if it has a class size in grades 1 through 3 of 18 
     or fewer children and plans to use the funds for professional 
     development.
       In addition, the conferees note that--under current law--
     any local educational agency that has a class size of 18 or 
     fewer children may use class-size-reduction funds made 
     available to take further class size reductions in grades 1 
     through 3, to reduce class size in kindergarten, or other 
     grades, or to carry out activities to improve teacher 
     quality--including professional development.


           flexibility to design dropout prevention programs

       39. The Senate amendment, but not the House bill includes 
     findings stating that fully funding IDEA would free up funds 
     at the local level to develop dropout programs to best 
     address their needs and amends the 1999 Omnibus 
     Appropriations Act to allow LEAs to use class size reduction 
     funds for IDEA part B.
       The Senate recedes.


                    authorization of appropriations

       40. The Senate amendment, but not the House bill authorizes 
     $150 million in additional funds for IDEA.
       The Senate recedes.


              flexibility to develop after school programs

       41. The Senate amendment, but not the House bill includes 
     findings stating that fully funding IDEA would free up funds 
     at the local level to develop after-school programs to best 
     address their needs and amends the 1999 Omnibus 
     Appropriations Act to allow LEAs to use class size reduction 
     funds for IDEA part B.
       The Senate recedes.


               additional authorization of appropriations

       42. The Senate amendment, but not the House bill, 
     authorizes $600 million in additional appropriations for IDEA 
     part B.
       The Senate recedes.


    flexibility to develop programs to reduce social promotion and 
               establish school accountability procedures

       43. The Senate amendment, but not the House bill includes 
     findings stating that fully funding IDEA would free up funds 
     at the local level to develop programs to reduce social 
     promotion, establish school accountability programs or any 
     other programs to best address their needs and amends the 
     1999 Omnibus Appropriations Act to allow LEAs to use class 
     size reduction funds for IDEA part B.
       The Senate recedes.


                    alternative educational setting

       44. The Senate amendment, but not the House bill, includes 
     an amendment to IDEA that subjects a child with a disability 
     to the discipline provisions if they possess a weapon at 
     school, in addition to carrying a weapon to school (current 
     law) and applies this new provision to conduct occurring not 
     earlier than the date of enactment of this Act.
       The House recedes.


                further authorization of appropriations

       45. The Senate amendment, but not the House bill, 
     authorizes $500 million in additional appropriations for IDEA 
     part B.
       The Senate recedes.
     Bill Goodling,
     Peter Hoekstra,
     Michael N. Castle,
     James Greenwood,
     Mark Souder,
     Bob Schaffer,
                                Managers on the Part of the House.

     Jim Jeffords,
     Judd Gregg,
     Bill Frist,
     Mike DeWine,
     Michael B. Enzi,
     Tim Hutchinson,
     Susan Collins,
     Sam Brownback,
     Chuck Hagel,
     Jeff Sessions,
     Ted Kennedy,
     Chris Dodd,
     Tom Harkin,
     Barbara A. Mikulski,
     Jeff Bingaman,
     Patty Murray,
     Jack Reed,
     Managers on the Part of the Senate.

                          ____________________