SEC. 1204
INNOVATIVE ASSESSMENT AND ACCOUNTABILITY DEMONSTRATION AUTHORITY
Section Summary
ESSA Update
``SEC. 1204. <<NOTE: 20 USC 6364.>> INNOVATIVE ASSESSMENT AND ACCOUNTABILITY DEMONSTRATION AUTHORITY.
``(a) Innovative Assessment System Defined.--The term `innovative
assessment system' means a system of assessments that may include--
``(1) competency-based assessments, instructionally embedded
assessments, interim assessments, cumulative year-end
assessments, or performance-based assessments that combine into
an annual summative determination for a student, which may be
administered through computer adaptive assessments; and
``(2) assessments that validate when students are ready to
demonstrate mastery or proficiency and allow for differentiated
student support based on individual learning needs.
``(b) Demonstration Authority.--
``(1) In general.--The Secretary may provide a State
educational agency, or a consortium of State educational
agencies, in accordance with paragraph (3), with the authority
to establish an innovative assessment system (referred to in
this section as `demonstration authority').
``(2) Demonstration period.--In accordance with the
requirements described in subsection (e), each State educational
agency, or consortium of State educational agencies, that
submits an application under this section shall propose in its
application the period of time over which the State educational
agency or consortium desires to exercise the demonstration
authority, except that such period shall not exceed 5 years.
``(3) Initial demonstration authority and expansion.--During
the first 3 years that the Secretary provides State educational
agencies and consortia with demonstration authority (referred to
in this section as the `initial demonstration period') the
Secretary shall provide such demonstration authority to--
``(A) a total number of not more than 7
participating State educational agencies, including
those participating in consortia, that have applications
approved under subsection (e); and
``(B) consortia that include not more than 4 State
educational agencies.
[[Page 129 STAT. 1886]]
``(c) Progress Report.--
``(1) In general.--Not later than 180 days after the end of
the initial demonstration period, and prior to providing
additional State educational agencies with demonstration
authority, the Director of the Institute of Education Sciences,
in consultation with the Secretary, shall publish a report
detailing the initial progress of innovative assessment systems
carried out through demonstration authority under this section.
``(2) Criteria.--The progress report under paragraph (1)
shall be based on the annual information submitted by
participating States described in subsection (e)(2)(B)(ix) and
examine the extent to which--
``(A) with respect to each innovative assessment
system--
``(i) the State educational agency has
solicited feedback from teachers, principals,
other school leaders, and parents about their
satisfaction with the innovative assessment
system;
``(ii) teachers, principals, and other school
leaders have demonstrated a commitment and
capacity to implement or continue to implement the
innovative assessment system; and
``(iii) substantial evidence exists
demonstrating that the innovative assessment
system has been developed in accordance with the
requirements of subsection (e); and
``(B) each State with demonstration authority has
demonstrated that--
``(i) the same innovative assessment system
was used to measure the achievement of all
students that participated in the innovative
assessment system; and
``(ii) of the total number of all students,
and the total number of each of the subgroups of
students defined in section 1111(c)(2), eligible
to participate in the innovative assessment system
in a given year, the State assessed in that year
an equal or greater percentage of such eligible
students, as measured under section 1111(c)(4)(E),
as were assessed in the State in such year using
the assessment system under section 1111(b)(2).
``(3) Use of report.--Upon completion of the progress
report, the Secretary shall provide a response to the findings
of the progress report, including a description of how the
findings of the report will be used--
``(A) to support State educational agencies with
demonstration authority through technical assistance;
and
``(B) to inform the peer-review process described in
subsection (f) for advising the Secretary on the
awarding of the demonstration authority to the
additional State educational agencies described in
subsection (d).
``(4) Publicly available.--The Secretary shall make the
progress report under this subsection and the response described
in paragraph (3) publicly available on the website of the
Department.
``(5) Prohibition.--The Secretary shall not require States
that have demonstration authority to submit any information for
the purposes of the progress report that is in addition
[[Page 129 STAT. 1887]]
to the information the State is already required to provide
under subsection (e)(2)(B)(x).
``(d) Expansion of the Demonstration Authority.--Upon completion and
publication of the report described in subsection (c), the Secretary may
grant demonstration authority to additional State educational agencies
or consortia that submit an application under subsection (e). Such State
educational agencies or consortia of State educational agencies shall be
subject to all of the same terms, conditions, and requirements of this
section.
``(e) Application.--
``(1) In general.--A State educational agency, or consortium
of State educational agencies, that desires to participate in
the program of demonstration authority under this section shall
submit an application to the Secretary at such time and in such
manner as the Secretary may reasonably require.
``(2) Contents.--Such application shall include a
description of the innovative assessment system, the experience
the applicant has in implementing any components of the
innovative assessment system, and the timeline over which the
State or consortium proposes to exercise the demonstration
authority. In addition, the application shall include each of
the following:
``(A) A demonstration that the innovative assessment
system will--
``(i) meet all the requirements of section
1111(b)(2)(B), except the requirements of clauses
(i) and (v) of such section;
``(ii) be aligned to the challenging State
academic standards and address the depth and
breadth of such standards;
``(iii) express student results or student
competencies in terms consistent with the State's
aligned academic achievement standards under
section 1111(b)(1);
``(iv) generate results that are valid and
reliable, and comparable, for all students and for
each subgroup of students described in section
1111(b)(2)(B)(xi), as compared to the results for
such students on the State assessments under
section 1111(b)(2);
``(v) be developed in collaboration with--
``(I) stakeholders representing the
interests of children with disabilities,
English learners, and other vulnerable
children;
``(II) teachers, principals, and
other school leaders;
``(III) local educational agencies;
``(IV) parents; and
``(V) civil rights organizations in
the State;
``(vi) be accessible to all students, such as
by incorporating the principles of universal
design for learning;
``(vii) provide teachers, principals, other
school leaders, students, and parents with timely
data, disaggregated by each subgroup of students
described in section 1111(b)(2)(B)(xi), to inform
and improve instructional practice and student
supports;
[[Page 129 STAT. 1888]]
``(viii) identify which students are not
making progress toward the challenging State
academic standards so that teachers can provide
instructional support and targeted interventions
to all students;
``(ix) annually measure the progress of not
less than the same percentage of all students and
students in each of the subgroups of students, as
defined in section 1111(c)(2), who are enrolled in
schools that are participating in the innovative
assessment system and are required to take such
assessments, as measured under section
1111(c)(4)(E), as were assessed by schools
administering the assessment under section
1111(b)(2);
``(x) generate an annual, summative
achievement determination, based on the aligned
State academic achievement standards under section
1111(b)(1) and based on annual data, for each
individual student; and
``(xi) allow the State educational agency to
validly and reliably aggregate data from the
innovative assessment system for purposes of--
``(I) accountability, consistent
with the requirements of section
1111(c); and
``(II) reporting, consistent with
the requirements of section 1111(h).
``(B) A description of how the State educational
agency will--
``(i) continue use of the statewide academic
assessments required under section 1111(b)(2) if
such assessments will be used for accountability
purposes for the duration of the demonstration
authority period;
``(ii) identify the distinct purposes for each
assessment that is part of the innovative
assessment system;
``(iii) provide support and training to local
educational agency and school staff to implement
the innovative assessment system described in this
subsection;
``(iv) inform parents of students in
participating local educational agencies about the
innovative assessment system at the beginning of
each school year during which the innovative
assessment system will be implemented;
``(v) engage and support teachers in
developing and scoring assessments that are part
of the innovative assessment system, including
through the use of high-quality professional
development, standardized and calibrated scoring
rubrics, and other strategies, consistent with
relevant nationally recognized professional and
technical standards, to ensure inter-rater
reliability and comparability;
``(vi) acclimate students to the innovative
assessment system;
``(vii) ensure that students with the most
significant cognitive disabilities may be assessed
with alternate assessments consistent with section
1111(b)(2)(D);
``(viii) if the State is proposing to
administer the innovative assessment system
initially in a subset of
[[Page 129 STAT. 1889]]
local educational agencies, scale up the
innovative assessment system to administer such
system statewide, or with additional local
educational agencies, in the State's proposed
demonstration authority period;
``(ix) gather data, solicit regular feedback
from teachers, principals, other school leaders,
and parents, and assess the results of each year
of the program of demonstration authority under
this section, and respond by making needed changes
to the innovative assessment system; and
``(x) report data from the innovative
assessment system annually to the Secretary,
including--
``(I) demographics of participating
local educational agencies, if such
system is not statewide, and additional
local educational agencies if added to
the system during the course of the
State's demonstration authority period
or 2-year extension, except that such
data shall not reveal any personally
identifiable information, including a
description of how the inclusion of
additional local educational agencies
contributes to progress toward achieving
high-quality and consistent
implementation across demographically
diverse local educational agencies
throughout the demonstration authority
period;
``(II) the performance of all
participating students, and for each
subgroup of students defined in section
1111(c)(2), on the innovative
assessment, consistent with the
requirements in section 1111(h), except
that such data shall not reveal any
personally identifiable information;
``(III) feedback from teachers,
principals, other school leaders, and
parents about their satisfaction with
the innovative assessment system; and
``(IV) if such system is not
statewide, a description of the State's
progress in scaling up the innovative
assessment system to additional local
educational agencies during the State's
demonstration authority period, as
described in clause (viii).
``(C) A description of the State educational
agency's plan to--
``(i) ensure that all students and each of the
subgroups of students defined in section
1111(c)(2) participating in the innovative
assessment system receive the instructional
support needed to meet State aligned academic
achievement standards;
``(ii) ensure that each local educational
agency has the technological infrastructure to
implement the innovative assessment system; and
``(iii) hold all schools in the local
educational agencies participating in the program
of demonstration authority accountable for meeting
the State's expectations for student achievement.
``(D) If the innovative assessment system will
initially be administered in a subset of local
educational agencies--
[[Page 129 STAT. 1890]]
``(i) a description of the local educational
agencies within the State educational agency that
will participate, including what criteria the
State has for approving any additional local
educational agencies to participate during the
demonstration authority period;
``(ii) assurances from such local educational
agencies that such agencies will comply with the
requirements of this subsection;
``(iii) a description of how the State will--
``(I) ensure that the inclusion of
additional local educational agencies
contributes to progress toward achieving
high-quality and consistent
implementation across demographically
diverse local educational agencies
during the demonstration authority
period; and
``(II) ensure that the participating
local educational agencies, as a group,
will be demographically similar to the
State as a whole by the end of the
State's demonstration authority period;
and
``(iv) a description of the State educational
agency's plan to hold all students and each of the
subgroups of students, as defined in section
1111(c)(2), to the same high standard as other
students in the State.
``(f) Peer Review.--The Secretary shall--
``(1) implement a peer-review process to inform--
``(A) the awarding of demonstration authority under
this section and the approval to operate an innovative
assessment system for the purposes of subsections (b)(2)
and (c) of section 1111, as described in subsection (h);
and
``(B) determinations about whether an innovative
assessment system--
``(i) is comparable to the State assessments
under section 1111(b)(2)(B)(v), valid, reliable,
of high technical quality, and consistent with
relevant, nationally recognized professional and
technical standards; and
``(ii) provides an unbiased, rational, and
consistent determination of progress toward the
goals described under section 1111(c)(4)(A)(i) for
all students;
``(2) ensure that the peer-review team consists of
practitioners and experts who are knowledgeable about the
innovative assessment system being proposed for all
participating students, including--
``(A) individuals with past experience developing
systems of assessment innovation that support all
students, including English learners, children with
disabilities, and disadvantaged students; and
``(B) individuals with experience implementing
innovative assessment and accountability systems;
``(3) make publicly available the applications submitted
under subsection (c) and the peer-review comments and
recommendations regarding such applications;
``(4) make a determination and inform the State regarding
approval or disapproval of the application under subsection (c)
not later than 90 days after receipt of the complete
application;
[[Page 129 STAT. 1891]]
``(5) if the Secretary disapproves an application under
paragraph (4), offer the State an opportunity to--
``(A) revise and resubmit such application within 60
days of the disapproval determination; and
``(B) submit additional evidence that the State's
application meets the requirements of subsection (c);
and
``(6) make a determination regarding application approval or
disapproval of a resubmitted application under paragraph (5) not
later than 45 days after receipt of the resubmitted application.
``(g) Extension.--The Secretary may extend an authorization of
demonstration authority under this section for an additional 2 years if
the State educational agency demonstrates with evidence that the State
educational agency's innovative assessment system is continuing to meet
the requirements of subsection (c), including by demonstrating a plan
for, and the capacity to, transition to statewide use of the innovative
assessment system by the end of the 2-year extension period.
``(h) Use of Innovative Assessment System.--A State may, during the
State's approved demonstration authority period or 2-year extension,
include results from the innovative assessment systems developed under
this section in accountability determinations for each student in the
participating local educational agencies instead of, or in addition to,
results from the assessment system under section 1111(b)(2) if the State
demonstrates that the State has met the requirements under subsection
(c). The State shall continue to meet all other requirements of section
1111(c).
``(i) Withdrawal of Authority.--The Secretary shall withdraw the
authorization for demonstration authority provided to a State
educational agency under this section and such State shall return to use
of the statewide assessment system under section 1111(b)(2) for all
local educational agencies in the State if, at any time during a State's
approved demonstration authority period or 2-year extension, the State
educational agency cannot present to the Secretary evidence that the
innovative assessment system developed under this section--
``(1) meets the requirements under subsection (c);
``(2) includes all students attending schools participating
in the innovative assessment system in a State that has
demonstration authority, including each of the subgroups of
students, as defined under section 1111(c)(2);
``(3) provides an unbiased, rational, and consistent
determination of progress toward the goals described under
section 1111(c)(4)(A)(i) for all students, which are comparable
to measures of academic achievement under section
1111(c)(4)(B)(i) across the State in which the local educational
agencies are located;
``(4) presents a high-quality plan to transition to full
statewide use of the innovative assessment system by the end of
the State's approved demonstration authority period or 2-year
extension, if the innovative assessment system will initially be
administered in a subset of local educational agencies; and
``(5) demonstrates comparability to the statewide
assessments under section 1111(b)(2) in content coverage,
difficulty, and quality.
``(j) Transition.--
``(1) In general.--
[[Page 129 STAT. 1892]]
``(A) Operation of innovative assessment system.--
If, after a State's approved demonstration authority
period or 2-year extension, the State educational agency
has met all the requirements of this section, including
having scaled the innovative assessment system up to
statewide use, and demonstrated that such system is of
high quality, as described in subparagraph (B), the
State shall be permitted to operate the innovative
assessment system approved under the program of
demonstration authority under this section for the
purposes of subsections (b)(2) and (c) of section 1111.
``(B) High quality.--Such system shall be considered
of high quality if the Secretary, through the peer-
review process described in section 1111(a)(4),
determines that--
``(i) the innovative assessment system meets
all of the requirements of this section;
``(ii) the State has examined the effects of
the system on other measures of student success,
including indicators in the accountability system
under section 1111(c)(4)(B);
``(iii) the innovative assessment system
provides coherent and timely information about
student achievement based on the challenging State
academic standards, including objective
measurement of academic achievement, knowledge,
and skills that are valid, reliable, and
consistent with relevant, nationally-recognized
professional and technical standards;
``(iv) the State has solicited feedback from
teachers, principals, other school leaders, and
parents about their satisfaction with the
innovative assessment system; and
``(v) the State has demonstrated that the same
innovative assessment system was used to measure--
``(I) the achievement of all
students that participated in such
innovative assessment system; and
``(II) not less than the percentage
of such students overall and in each of
the subgroups of students, as defined in
section 1111(c)(2), as measured under
section 1111(c)(4)(E), as were assessed
under the assessment required by section
1111(b)(2).
``(2) Baseline.--For the purposes of the evaluation
described in paragraph (1), the baseline year shall be
considered the first year that each local educational agency in
the State used the innovative assessment system.
``(3) Waiver authority.--A State may request, and the
Secretary shall review such request and may grant, a delay of
the withdrawal of authority under subsection (i) for the purpose
of providing the State with the time necessary to implement the
innovative assessment system statewide, if, at the conclusion of
the State's approved demonstration authority period and 2-year
extension--
``(A) the State has met all of the requirements of
this section, except transition to full statewide use of
the innovative assessment system; and
``(B) the State continues to comply with the other
requirements of this section, and demonstrates a high-
[[Page 129 STAT. 1893]]
quality plan for transition to statewide use of the
innovative assessment system in a reasonable period of
time.
``(k) Available Funds.--A State may use funds available under
section 1201 to carry out this section.
``(l) Consortium.--A consortium of States may apply to participate
in the program of demonstration authority under this section, and the
Secretary may provide each State member of such consortium with such
authority if each such State member meets all of the requirements of
this section. Such consortium shall be subject to the limitation
described in subsection (b)(3)(B) during the initial 3 years of the
demonstration authority.
``(m) Dissemination of Best Practices.--
``(1) In general.--Following the publication of the progress
report described in subsection (c), the Director of the
Institute of Education Sciences, in consultation with the
Secretary, shall collect and disseminate the best practices on
the development and implementation of innovative assessment
systems that meet the requirements of this section, including
best practices regarding the development of--
``(A) summative assessments that--
``(i) meet the requirements of section
1111(b)(2)(B);
``(ii) are comparable with statewide
assessments under section 1111(b)(2); and
``(iii) include assessment tasks that
determine proficiency or mastery of State-approved
competencies aligned to challenging State academic
standards;
``(B) effective supports for local educational
agencies and school staff to implement innovative
assessment systems;
``(C) effective engagement and support of teachers
in developing and scoring assessments and the use of
high-quality professional development;
``(D) effective supports for all students,
particularly each of the subgroups of students, as
defined in section 1111(c)(2), participating in the
innovative assessment system; and
``(E) standardized and calibrated scoring rubrics,
and other strategies, to ensure inter-rater reliability
and comparability of determinations of mastery or
proficiency across local educational agencies and the
State.
``(2) Publication.--The Secretary shall make the information
described in paragraph (1) available on the website of the
Department and shall publish an update to the information not
less often than once every 3 years.''.
NCLB Text
``SEC. <<NOTE: 20 USC 6364.>> 1204. TARGETED ASSISTANCE GRANTS.
``(a) Eligibility Criteria for Awarding Targeted Assistance Grants
to States.--Beginning <<NOTE: Effective date.>> with fiscal year 2004,
from funds appropriated under section 1202(b)(1)(E), the Secretary shall
make grants, on a competitive basis, to those State educational agencies
that--
``(1) for each of 2 consecutive years, demonstrate that an
increasing percentage of third graders in each of the groups
described in section 1111(b)(2)(C)(v)(II) in the schools served
by the local educational agencies receiving funds under section
1202 are reaching the proficient level in reading; and
``(2) for each of the same such consecutive 2 years,
demonstrate that schools receiving funds under section 1202 are
improving the reading skills of students in grades 1, 2, and 3
based on screening, diagnostic, and classroom-based
instructional reading assessments.
``(b) Continuation of Performance Awards.--For any State educational
agency that receives a competitive grant under this section, the
Secretary shall make an award for each of the succeeding years that the
State educational agency demonstrates it is continuing to meet the
criteria described in subsection (a).
``(c) Distribution of Targeted Assistance Grants.--
``(1) In general.--The Secretary shall make a grant to each
State educational agency with an application approved under this
section in an amount that bears the same relation to the amount
made available to carry out this section for a fiscal year as
the number of children counted under section 1124(c) for the
State bears to the number of such children so counted for all
States with applications approved for that year.
``(2) Peer review.--The peer review panel convened under
section 1203(c)(2) shall review the applications submitted under
this subsection. The panel shall recommend such applications to
the Secretary for funding or for disapproval.
``(3) Application contents.--A State educational agency that
desires to receive a grant under this section shall submit an
application to the Secretary at such time, in such manner,
[[Page 115 STAT. 1547]]
and accompanied by such information as the Secretary may
require. Each such application shall include the following:
``(A) Evidence that the State educational agency has
carried out its obligations under section 1203.
``(B) Evidence that the State educational agency has
met the criteria described in subsection (a).
``(C) The amount of funds requested by the State
educational agency and a description of the criteria the
State educational agency intends to use in distributing
subgrants to eligible local educational agencies under
this section to continue or expand activities under
subsection (d)(5).
``(D) Evidence that the State educational agency has
increased significantly the percentage of students
reading at grade level or above.
``(E) Any additional evidence that demonstrates
success in the implementation of this section.
``(d) Subgrants to Eligible Local Educational Agencies.--
``(1) In general.--The Secretary may make a grant to a State
educational agency under this section only if the State
educational agency agrees to expend 100 percent of the amount of
the funds provided under the grant for the purpose of making
competitive subgrants in accordance with this subsection to
eligible local educational agencies.
``(2) Notice.--A State educational agency receiving a grant
under this section shall provide notice to all local educational
agencies in the State of the availability of competitive
subgrants under this subsection and of the requirements for
applying for the subgrants.
``(3) 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.
``(4) Distribution.--
``(A) In general.--A State educational agency shall
distribute subgrants under this section through a
competitive process based on relative need of eligible
local educational agencies and the evidence described in
this paragraph.
``(B) Evidence used in all years.--For all fiscal
years, a State educational agency shall distribute
subgrants under this section based on evidence that an
eligible local educational agency--
``(i) satisfies the requirements of section
1202(c)(4);
``(ii) will carry out its obligations under
this subpart;
``(iii) will work with other local educational
agencies in the State that have not received a
subgrant under this subsection to assist such
nonreceiving agencies in increasing the reading
achievement of students; and
``(iv) is meeting the criteria described in
subsection (a).
``(5) Local uses of funds.--An eligible local educational
agency that receives a subgrant under this subsection--
[[Page 115 STAT. 1548]]
``(A) shall use the funds provided under the
subgrant to carry out the activities described in
section 1202(c)(7)(A); and
``(B) may use such funds to carry out the activities
described in section 1202(c)(7)(B).
