My children's reading levels have never been reported or disclosed to me. I am in the regular public school system. In K and 1, my son was given books way above grade level because his teachers knew he was reading at that level. Now he is in a GT magnet and all the kids read the same books, which are about 2-3 grades above level.
The only person who has ever attempted to restrict book choices, ironically, is the school librarian, who is draconian about "Kindergarteners read this" and "kids in second grade read that." (She recently sent him home with A to Z Mysteries, which he was reading in pre-K.) I have had to intervene multiple times with her.