; (2) the State’s record of, and commitment to, establishing conditions for innovation and reform, as described in paragraph (2) of section 297A(a); and (3) the State’s evaluation plan as described in paragraph (5) of section 297A(a). (b) Special rule for States receiving grants in previous fiscal years In the case of a State that received a grant under this part in a previous fiscal year, the Commission may not award a grant under this part to the State for any subsequent fiscal year unless the State demonstrates to the satisfaction of the Commission that— (1) the State made sufficient progress in carrying out the grant implementation plan for that previous fiscal year at a rate that will enable the State to fully implement the plan prior to the end of the grant implementation period for that plan; or (2) the State made sufficient progress in meeting the performance measures and targets for the programs and activities funded by the grant (as established by the State under section 297C) to enable the State to fully meet such measures and targets prior to the end of the grant implementation period for that plan. (c) Explanation The Commission shall publish an explanation of how the application review process under this subsection will ensure an equitable and objective evaluation based on the criteria described in subsection (a) and the special rule described in subsection (b). 297C. Establishment of performance measures and targets Each State receiving a grant under this part shall establish performance measures and targets approved by the Commission for the programs and activities carried out with the funds provided by the grant. 297D. Reporting requirements Each State receiving a grant under this part shall submit to the Commission, at such time and in such manner as the Commission may require, an annual report including— (1) data on the State’s progress in achieving the targets for the performance measures established under section 297C