To provide for fairness and accuracy in high stakes educational decisions for students.

Establishes certain requirements relating to the use of large-scale standardized tests by State and local educational agencies (SEAs and LEAs) that receive funds under the Elementary and Secondary Education Act of 1965 (ESEA).

Prohibits performance on a large-scale test from being the sole determinant of any decision about an individual student's retention, graduation, tracking, or within-class ability grouping. Allows such test performance to be considered in making such decision only if specified criteria are met.

Requires evaluations of the impact of standardized tests used in high stakes decisions on students' education and educational outcomes, particularly on individuals and subgroups disaggregated by socioeconomic status, race, ethnicity, limited English proficiency, disability, and gender, to be carried out by: (1) SEAs receiving ESEA funds; (2) LEAs receiving ESEA funds located in States that do not do such evaluations; and (3) the Secretary of Education.