[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR200.50]

[Page 470-471]
 
                           TITLE 34--EDUCATION
 
                  CHAPTER II--OFFICE OF ELEMENTARY AND
              SECONDARY EDUCATION, DEPARTMENT OF EDUCATION
 
PART 200_TITLE I_IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED
--Table of Contents
 
    Subpart A_Improving Basic Programs Operated by Local Educational 
                                Agencies
 
Sec. 200.50  SEA review of LEA progress.

    (a) State review. (1) An SEA must annually review the progress of 
each LEA in its State that receives funds under subpart A of this part 
to determine whether--
    (i) The LEA's schools served under this part are making AYP, as 
defined under Sec. Sec. 200.13 through 200.20, toward meeting the 
State's student academic achievement standards; and
    (ii) The LEA is carrying out its responsibilities under this part 
with respect to school improvement, technical assistance, parental 
involvement, and professional development.
    (2) In reviewing the progress of an LEA, the SEA may, in the case of 
targeted assistance schools served by the LEA, consider the progress 
only of the students served or eligible for services under this subpart, 
provided the students selected for services in such schools are those 
with the greatest need for special assistance, consistent with the 
requirements of section 1115 of the ESEA.
    (b) Rewards. If an LEA has exceeded AYP as defined under Sec. Sec. 
200.13 through 200.20 for two consecutive years, the SEA may--
    (1) Reserve funds in accordance with Sec. 200.100(c); and
    (2) Make rewards of the kinds described under section 1117 of the 
ESEA.
    (c) Opportunity for review of LEA-level data. (1) Before identifying 
an LEA for improvement or corrective action, the SEA must provide the 
LEA with an opportunity to review the data, including academic 
assessment data, on which the SEA has based the proposed identification.
    (2)(i) If the LEA believes that the proposed identification is in 
error for statistical or other substantive reasons, the LEA may provide 
supporting evidence to the SEA.
    (ii) The SEA must consider the evidence before making a final 
determination not later than 30 days after it has provided the LEA with 
the opportunity to review the data under paragraph (c)(1) of this 
section.
    (d) Identification for improvement. (1) The SEA must identify for 
improvement an LEA that, for two consecutive years, including the period 
immediately before January 8, 2002, fails to make AYP as defined in the 
SEA's plan under section 1111(b)(2) of the ESEA.
    (2) The SEA must identify for improvement an LEA that was in 
improvement status on January 7, 2002.
    (3)(i) The SEA may identify an LEA for improvement if, on the basis 
of assessments the LEA administers during the 2001-2002 school year, the 
LEA fails to make AYP for a second consecutive year.
    (ii) An SEA that does not identify such an LEA for improvement, 
however, must count the 2001-2002 school year as the first year of not 
making AYP for the purpose of subsequent identification decisions under 
paragraph (d)(1) of this section.
    (4) The SEA may remove an LEA from improvement status if, on the 
basis of assessments the LEA administers during the 2001-2002 school 
year, the LEA makes AYP for a second consecutive year.
    (e) Identification for corrective action. After providing technical 
assistance under Sec. 200.52(b), the SEA--
    (1) May take corrective action at any time with respect to an LEA 
that the SEA has identified for improvement under paragraph (d) of this 
section;
    (2) Must take corrective action--
    (i) With respect to an LEA that fails to make AYP, as defined under 
Sec. Sec. 200.13 through 200.20, by the end of the second full school 
year following the year in which the LEA administered the assessments 
that resulted in the LEA's failure to make AYP for a second consecutive 
year and led to the SEA's identification of the LEA for improvement 
under paragraph (d) of this section; and
    (ii) With respect to an LEA that was in corrective action status on 
January 7, 2002; and
    (3) May remove an LEA from corrective action if, on the basis of 
assessments administered by the LEA during the 2001-2002 school year, it 
makes AYP for a second consecutive year.

[[Page 471]]

    (f) Delay of corrective action. (1) The SEA may delay implementation 
of corrective action under Sec. 200.53 for a period not to exceed one 
year if--
    (i) The LEA makes AYP for one year; or
    (ii) The LEA's failure to make AYP is due to exceptional or 
uncontrollable circumstances, such as a natural disaster or a 
precipitous and unforeseen decline in the LEA's financial resources.
    (2)(i) The SEA may not take into account the period of delay 
referred to in paragraph (f)(1) of this section in determining the 
number of consecutive years the LEA has failed to make AYP; and
    (ii) The SEA must subject the LEA to further actions following the 
period of delay as if the delay never occurred.
    (g) Continuation of public school choice and supplemental 
educational services. An SEA must ensure that an LEA identified under 
paragraph (d) or (e) of this section continues to offer public school 
choice in accordance with Sec. 200.44 and supplemental educational 
services in accordance with Sec. 200.45.
    (h) Removal from improvement or corrective action status. If an LEA 
makes AYP for two consecutive years following identification for 
improvement under paragraph (d) or corrective action under paragraph (e) 
of this section, the SEA need no longer--
    (1) Identify the LEA for improvement; or
    (2) Subject the LEA to corrective action for the succeeding school 
year.

(Approved by the Office of Management and Budget under control number 
1810-0581)

(Authority: 20 U.S.C. 6316(c))

[67 FR 71727, Dec. 2, 2002]