#aacth ,,congress #b;d ,session ,h4 ,r4 #aj ,,an ,,act ,to amend the charter school program under the ,elementary and ,secondary ,education ,act of #aife4 #a4 ,short title ,this ,act may be cited as the ,success and ,opportunity through ,quality ,charter ,schools ,act4 #b4 ,references ,except as otherwise specifically provided1 whenever in this ,act a section or other provision is amended or repealed1 such amendment or repeal shall be considered to be made to that section or other provision of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #fcja et seq474 #c4 ,subpart heading2 ,purpose 7a7 ,subpart heading ,the heading for subpart #a of part ,b of title ,v 7#bj ,u4,s4,c4 #gbba et seq47 is amended to read as follows3 ,charter school program4 7b7 ,purpose ,section #ebja 7#bj ,u4,s4,c4 #gbba7 is amended to read as follows3 #ebja4 ,purpose ,it is the purpose of this subpart to-- 7#a7 improve the ,united ,states education system and education opportunities for all ,americans by supporting innovation in public education in public school settings that prepare students to compete and contribute to the global economy2 7#b7 provide financial assistance for the planning1 program design1 and initial implementation of charter schools2 7#c7 expand the number of high-quality charter schools available to students across the ,nation2 7#d7 evaluate the impact of such schools on student achievement1 families1 and communities1 and share best practices between charter schools and other public schools2 7#e7 encourage ,states to provide support to charter schools for facilities financing in an amount more nearly commensurate to the amount the ,states have typically provided for traditional public schools2 7#f7 improve student services to increase opportunities for students with disabilities1 ,english learners1 and other traditionally underserved students to attend charter schools and meet challenging ,state academic achievement standards2 7#g7 support efforts to strengthen the charter school authorizing process to improve performance management1 including transparency1 oversight1 monitoring1 and evaluation of such schools2 and 7#h7 support quality accountability and transparency in the operational performance of all authorized public chartering agencies1 which include ,state educational agencies1 local educational agencies1 and other authorizing entities4 4 #d4 ,program authorized ,section #ebjb 7#bj ,u4,s4,c4 #gbba;a7 is amended to read as follows3 #ebjb4 ,program authorized 7a7 ,in general ,this subpart authorizes the ,secretary to carry out a charter school program that supports charter schools that serve elementary school and secondary school students by-- 7#a7 supporting the startup of charter schools1 and the replication and expansion of high-quality charter schools2 7#b7 assisting charter schools in accessing credit to acquire and renovate facilities for school use2 and 7#c7 carrying out national activities to support-- 7,a7 charter school development2 7,b7 the dissemination of best practices of charter schools for all schools2 7,c7 the evaluation of the impact of the program on schools participating in the program2 and 7,d7 stronger charter school authorizing4 7b7 ,funding ,allotment ,from the amount made available under section #ebaa for a fiscal year1 the ,secretary shall-- 7#a7 reserve #ab4e percent to support charter school facilities assistance under section #ebjd2 7#b7 reserve not more than #aj percent to carry out national activities under section #ebje2 and 7#c7 use the remaining amount after the ,secretary reserves funds under paragraphs 7#a7 and 7#b7 to carry out section #ebjc4 7c7 ,prior grants and subgrants ,the recipient of a grant or subgrant under this subpart or subpart #b1 as such subpart was in effect on the day before the date of enactment of the ,success and ,opportunity through ,quality ,charter ,schools ,act1 shall continue to receive funds in accordance with the terms and conditions of such grant or subgrant4 7d7 ,,gao report ,not later than #c years after the date of enactment of the ,success and ,opportunity through ,quality ,charter ,schools ,act1 the ,comptroller ,general of the ,united ,states shall submit a report to the ,secretary and ,congress that-- 7#a7 examines whether the funds authorized to be reserved by ,state entities for administrative costs under section #ebjc7;b77#a77;,c7 is appropriate2 and 7#b7 if determined not to be appropriate1 makes recommendations on the appropriate reservation of funding for such administrative costs4 4 #e4 ,grants to support high-quality charter schools ,section #ebjc 7#bj ,u4,s4,c4 #gbba;b7 is amended to read as follows3 #ebjc4 ,grants to support high-quality charter schools 7a7 ,in general ,from the amount reserved under section #ebjb7;b77#c71 the ,secretary shall award grants to ,state entities having applications approved pursuant to subsection 7f7 to enable such entities to-- 7#a7 award subgrants to eligible applicants for opening and preparing to operate-- 7,a7 new charter schools2 7,b7 replicated1 high-quality charter school models2 or 7,c7 expanded1 high-quality charter schools2 and 7#b7 provide technical assistance to eligible applicants and authorized public chartering agencies in carrying out the activities described in paragraph 7#a7 and work with authorized public chartering agencies in the ,state to improve authorizing quality4 7b7 ,state uses of funds 7#a7 ,in general ,a ,state entity receiving a grant under this section shall-- 7,a7 use not less than #ij percent of the grant funds to award subgrants to eligible applicants1 in accordance with the quality charter school program described in the ,state entity's application approved pursuant to subsection 7f71 for the purposes described in subparagraphs 7,a7 through 7,c7 of subsection 7a77#a72 7,b7 reserve not less than #g percent of such funds to carry out the activities described in subsection 7a77#b72 and 7,c7 reserve not more than #c percent of such funds for administrative costs which may include technical assistance4 7#b7 ,contracts and grants ,a ,state entity may use a grant received under this section to carry out the activities described in subparagraphs 7,a7 and 7,b7 of paragraph 7#a7 directly or through grants1 contracts1 or cooperative agreements4 7#c7 ,rule of construction ,nothing in this ,act shall prohibit the ,secretary from awarding grants to ,states that use a weighted lottery to give slightly better chances for admission to all1 or a subset of1 educationally disadvantaged students if-- 7,a7 the use of weighted lotteries in favor of such students is not prohibited by ,state law1 and such ,state law is consistent with laws described in section #ebaj7a77;,g72 and 7,b7 such weighted lotteries are not used for the purpose of creating schools exclusively to serve a particular subset of students4 7c7 ,program periods2 peer review2 grant number and amount2 diversity of projects2 waivers 7#a7 ,program periods 7,a7 ,grants ,a grant awarded by the ,secretary to a ,state entity under this section shall be for a period of not more than #e years4 7,b7 ,subgrants ,a subgrant awarded by a ,state entity under this section shall be for a period of not more than #e years1 of which an eligible applicant may use not more than #ah months for planning and program design4 7#b7 ,peer ,review ,the ,secretary1 and each ,state entity receiving a grant under this section1 shall use a peer review process to review applications for assistance under this section4 7#c7 ,grant awards ,the ,secretary shall-- 7,a7 for each fiscal year for which funds are appropriated under section #ebaa-- 7i7 award not less than #c grants under this section2 7ii7 wholly fund each grant awarded under this section1 without making continuation awards2 and 7iii7 fully obligate the funds appropriated for the purpose of awarding grants under this section in the fiscal year for which such grants are awarded2 and 7,b7 prior to the start of the final year of the grant period of each grant awarded under this section to a ,state entity1 review whether the ,state entity is using the grant funds for the agreed upon uses of funds and whether the full amount of the grant will be needed for the remainder of the grant period and may1 as determined necessary based on that review1 terminate or reduce the amount of the grant and reallocate the remaining grant funds to other ,state entities during the succeeding grant competition under this section4 7#d7 ,diversity of ,projects ,each ,state entity receiving a grant under this section shall award subgrants under this section in a manner that1 to the extent possible1 ensures that such subgrants-- 7,a7 are distributed throughout different areas1 including urban1 suburban1 and rural areas2 and 7,b7 will assist charter schools representing a variety of educational approaches4 7#e7 ,waivers ,the ,secretary may waive any statutory or regulatory requirement over which the ,secretary exercises administrative authority except any such requirement relating to the elements of a charter school described in section #ebaj7a71 if-- 7,a7 the waiver is requested in an approved application under this section2 and 7,b7 the ,secretary determines that granting such a waiver will promote the purpose of this subpart4 7d7 ,limitations 7#a7 ,grants ,the ,secretary shall not award a grant to a ,state entity under this section in a case in which such award would result in more than #a grant awarded under this section being carried out in a ,state at the same time4 7#b7 ,subgrants ,an eligible applicant may not receive more than #a subgrant under this section per individual charter school for a #e-year period1 unless the eligible applicant demonstrates to the ,state entity not less than #c years of improved educational results in the areas described in subparagraphs 7,a7 and 7,d7 of section #ebaj7h7 for students enrolled in such charter school4 7e7 ,applications ,a ,state entity desiring to receive a grant under this section shall submit an application to the ,secretary at such time and in such manner as the ,secretary may require4 ,the application shall include the following3 7#a7 ,description of ,program ,a description of the ,state entity's objectives under this section and how the objectives of the program will be carried out1 including a description-- 7,a7 of how the ,state entity-- 7i7 will support the opening of new charter schools1 replicated1 high-quality charter school models1 or expanded1 high-quality charter schools1 and a description of the proposed number of each type of charter school or model1 if applicable1 to be opened under the ,state entity's program2 7ii7 will inform eligible charter schools1 developers1 and authorized public chartering agencies of the availability of funds under the program2 7iii7 will work with eligible applicants to ensure that the eligible applicants access all ,federal funds that they are eligible to receive1 and help the charter schools supported by the applicants and the students attending the charter schools-- 7,i7 participate in the ,federal programs in which the schools and students are eligible to participate2 7,,ii7 receive the commensurate share of ,federal funds the schools and students are eligible to receive under such programs2 and 7,,iii7 meet the needs of students served under such programs1 including student with disabilities and ,english learners2 7iv7 will have clear plans and procedures to assist students enrolled in a charter school that closes or loses its charter to attend other high-quality schools2 7v7 in the case in which the ,state entity is not a ,state educational agency-- 7,i7 will work with the ,state educational agency and the charter schools in the ,state to maximize charter school participation in ,federal and ,state programs for charter schools2 and 7,,ii7 will work with the ,state educational agency to adequately operate the ,state entity's program under this section1 where applicable2 7vi7 will ensure each eligible applicant that receives a subgrant under the ,state entity's program to open and prepare to operate a new charter school1 a replicated1 high-quality charter school model1 or an expanded1 high-quality charter school-- 7,i7 will ensure such school or model meets the requirements under section #ebaj7a72 and 7,,ii7 is prepared to continue to operate such school or model1 in a manner consistent with the eligible applicant's application1 after the subgrant funds have expired2 7vii7 will support charter schools in local educational agencies with large numbers of schools identified by the ,state for improvement1 including supporting the use of charter schools to improve1 or in turning around1 struggling schools2 7viii7 will work with charter schools to promote inclusion of all students1 including eliminating any barriers to enrollment for foster youth or unaccompanied homeless youth1 and support all students once they are enrolled to promote retention including through the use of fair disciplinary practice2 7ix7 will work with charter schools on recruitment practices1 including efforts to engage groups that may otherwise have limited opportunities to participate in charter schools1 and to ensure such schools do not have in effect policies or procedures that may create barriers to enrollment of students1 including educationally disadvantaged students1 and are in compliance with all ,federal and ,state laws on enrollment practices2 7x7 will share best and promising practices between charter schools and other public schools1 including1 where appropriate1 instruction and professional development in core academic subjects1 and science1 technology1 engineering1 and math education1 including computer science2 7xi7 will ensure the charter schools receiving funds under the ,state entity's program meet the educational needs of their students1 including students with disabilities and ,english learners2 7xii7 will support efforts to increase quality initiatives1 including meeting the quality authorizing elements described in paragraph 7#b77;,e72 7xiii7 in the case of a ,state entity not described in clause 7xiv71 will provide oversight of authorizing activity1 including how the ,state will approve1 actively monitor1 and re-approve or revoke the authority of an authorized public chartering agency based on the performance of the charter schools authorized by such agency in the areas of student achievement1 student safety1 financial management1 and compliance with all applicable statutes and regulations2 7xiv7 in the case of a ,state entity defined in subsection 7i77#d71 will work with the ,state to provide assistance to and oversight of authorized public chartering agencies for authorizing activity described in clause 7xiii72 and 7xv7 will work with eligible applicants receiving a subgrant under the ,state entity's program to support the opening of charter schools or charter school models described in clause 7i7 that are secondary schools2 7,b7 of the extent to which the ,state entity-- 7i7 is able to meet and carry out the priorities listed in subsection 7f77#b72 and 7ii7 is working to develop or strengthen a cohesive statewide system to support the opening of new charter schools1 replicated1 high-quality charter school models1 or expanded1 high-quality charter schools2 7,c7 of how the ,state entity will carry out the subgrant competition1 including-- 7i7 a description of the application each eligible applicant desiring to receive a subgrant will submit1 including-- 7,i7 a description of the roles and responsibilities of eligible applicants1 partner organizations1 and management organizations1 including the administrative and contractual roles and responsibilities2 7,,ii7 a description of the quality controls agreed to between the eligible applicant and the authorized public chartering agency involved1 such as a contract or performance agreement1 how a school's performance in the ,state's academic accountability system will be a primary factor for renewal or revocation of the school's charter1 and how the ,state entity and the authorized public chartering agency involved will reserve the right to revoke or not renew a school's charter based on financial1 structural1 or operational factors involving the management of the school2 7,,iii7 a description of how the eligible applicant will solicit and consider input from parents and other members of the community on the implementation and operation of each charter school receiving funds under the ,state entity's program2 and 7,,iv7 a description of the planned activities and expenditures for the subgrant funds for purposes of opening and preparing to operate a new charter school1 a replicated1 high-quality charter school model1 or an expanded1 high-quality charter school1 and how the school or model will maintain financial sustainability after the end of the subgrant period2 and 7ii7 a description of how the ,state entity will review applications2 7,d7 in the case of an entity that partners with an outside organization to carry out the ,state entity's quality charter school program1 in whole or in part1 of the roles and responsibilities of this partner2 7,e7 of how the ,state entity will help the charter schools receiving funds under the ,state entity's program consider the transportation needs of the schools' students2 and 7,f7 of how the ,state entity will support diverse charter school models1 including models that serve rural communities4 7#b7 ,assurances ,assurances1 including a description of how the assurances will be met1 that-- 7,a7 each charter school receiving funds under the ,state entity's program will have a high degree of autonomy over budget and operations2 7,b7 the ,state entity will support charter schools in meeting the educational needs of their students as described in paragraph 7#a77;,a77xi72 7,c7 the ,state entity will ensure that the authorized public chartering agency of any charter school that receives funds under the ,state entity's program-- 7i7 adequately monitors each charter school in recruiting1 enrolling1 and meeting the needs of all students1 including students with disabilities and ,english learners2 and 7ii7 ensures that each charter school solicits and considers input from parents and other members of the community on the implementation and operation of the school2 7,d7 the ,state entity will provide adequate technical assistance to eligible applicants to-- 7i7 meet the objectives described in clauses 7viii7 and 7ix7 of paragraph 7#a77;,a7 and paragraph 7#b77;,b72 and 7ii7 recruit1 enroll1 and retain traditionally underserved students1 including students with disabilities and ,english learners1 at rates similar to traditional public schools2 7,e7 the ,state entity will promote quality authorizing1 such as through providing technical assistance and supporting all authorized public chartering agencies in the ,state to improve the oversight of their charter schools1 including by-- 7i7 assessing annual performance data of the schools1 including1 as appropriate1 graduation rates1 student academic growth1 and rates of student attrition2 7ii7 reviewing the schools' independent1 annual audits of financial statements conducted in accordance with generally accepted accounting principles1 and ensuring any such audits are publically reported2 and 7iii7 holding charter schools accountable to the academic1 financial1 and operational quality controls agreed to between the charter school and the authorized public chartering agency involved1 such as through renewal1 non-renewal1 or revocation of the school's charter2 7,f7 the ,state entity will work to ensure that charter schools are included with the traditional public schools in decision-making about the public school system in the ,state2 and 7,g7 ,the ,state entity will ensure that each charter school in the ,state makes publicly available1 consistent with the dissemination requirements of the annual ,state report card1 information to help parents make informed decisions about the education options available to their children1 including information for each school on-- 7i7 the educational program2 7ii7 student support services2 7iii7 annual performance and enrollment data1 disaggregated by the groups of students described in section #aaaa7;b77#b77;,c77v77,,ii72 and 7iv7 any other information the ,state requires all other public schools to report for purposes of section #aaaa7;h77#a77;,d74 7#c7 ,requests for waivers ,a request and justification for waivers of any ,federal statutory or regulatory provisions that the ,state entity believes are necessary for the successful operation of the charter schools that will receive funds under the ,state entity's program under this section1 and a description of any ,state or local rules1 generally applicable to public schools1 that will be waived1 or otherwise not apply to such schools or1 in the case of a ,state entity defined in subsection 7i77#d71 a description of how the ,state entity will work with the ,state to request necessary waivers where applicable4 7f7 ,selection criteria2 priority 7#a7 ,selection criteria ,the ,secretary shall award grants to ,state entities under this section on the basis of the quality of the applications submitted under subsection 7e71 after taking into consideration-- 7,a7 the degree of flexibility afforded by the ,state's public charter school law and how the ,state entity will work to maximize the flexibility provided to charter schools under the law2 7,b7 the ambitiousness of the ,state entity's objectives for the quality charter school program carried out under this section2 7,c7 the quality of the strategy for assessing achievement of those objectives2 7,d7 the likelihood that the eligible applicants receiving subgrants under the program will meet those objectives and improve educational results for students2 7,e7 the ,state entity's plan to-- 7i7 adequately monitor the eligible applicants receiving subgrants under the ,state entity's program2 7ii7 work with the authorized public chartering agencies involved to avoid duplication of work for the charter schools and authorized public chartering agencies2 and 7iii7 provide adequate technical assistance and support for-- 7,i7 the charter schools receiving funds under the ,state entity's program2 and 7,,ii7 quality authorizing efforts in the ,state2 and 7,f7 the ,state entity's plan to solicit and consider input from parents and other members of the community on the implementation and operation of the charter schools in the ,state4 7#b7 ,priority ,in awarding grants under this section1 the ,secretary shall give priority to ,state entities to the extent that they meet the following criteria3 7,a7 ,in the case of a ,state entity located in a ,state that allows an entity other than a local educational agency to be an authorized public chartering agency1 the ,state has a quality authorized public chartering agency that is an entity other than a local educational agency4 7,b7 ,the ,state entity is located in a ,state that does not impose any limitation on the number or percentage of charter schools that may exist or the number or percentage of students that may attend charter schools in the ,state4 7,c7 ,the ,state entity is located in a ,state that ensures equitable financing1 as compared to traditional public schools1 for charter schools and students in a prompt manner4 7,d7 ,the ,state entity is located in a ,state that uses charter schools and best practices from charter schools to help improve struggling schools and local educational agencies4 7,e7 ,the ,state entity partners with an organization that has a demonstrated record of success in developing management organizations to support the development of charter schools in the ,state4 7,f7 ,the ,state entity supports charter schools that support at-risk students through activities such as dropout prevention1 dropout recovery1 or comprehensive career counseling practices4 7,g7 ,the ,state entity authorizes all charter schools in the ,state to serve as school food authorities4 7,h7 ,the ,state entity has taken steps to ensure that all authorizing public chartering agencies implement best practices for charter school authorizing4 7g7 ,local uses of funds ,an eligible applicant receiving a subgrant under this section shall use such funds to carry out activities related to opening and preparing to operate a new charter school1 a replicated1 high-quality charter school model1 or an expanded1 high-quality charter school1 such as-- 7#a7 preparing teachers and school leaders1 including through professional development2 7#b7 acquiring equipment1 educational materials1 and supplies2 and 7#c7 necessary renovations and minor facilities repairs 7excluding construction74 7h7 ,reporting requirements ,each ,state entity receiving a grant under this section shall submit to the ,secretary1 at the end of the third year of the #e-year grant period and at the end of such grant period1 a report on-- 7#a7 the number of students served by each subgrant awarded under this section and1 if applicable1 how many new students were served during each year of the subgrant period2 7#b7 the progress the ,state entity made toward meeting the priorities described in subsection 7f77#b71 as applicable2 7#c7 how the ,state entity met the objectives of the quality charter school program described in the ,state entity's application under subsection 7e71 including how the ,state entity met the objective of sharing best and promising practices described in subsection 7e77#a77;,a77x7 in areas such as instruction1 professional development1 curricula development1 and operations between charter schools and other public schools1 and the extent to which1 if known1 such practices were adopted and implemented by such other public schools2 7#d7 how the ,state entity complied with1 and ensured that eligible applicants complied with1 the assurances described in the ,state entity's application2 7#e7 how the ,state entity worked with authorized public chartering agencies1 including how the agencies worked with the management company or leadership of the schools that received subgrants under this section2 7#f7 the number of subgrants awarded under this section to carry out each of the following3 7,a7 ,the opening of new charter schools4 7,b7 ,the opening of replicated1 high-quality charter school models4 7,c7 ,the opening of expanded1 high-quality charter schools2 and 7#g7 how the ,state entity has worked with charter schools receiving funds under the ,state entity's program to foster community involvement in the planning for and opening of such schools4 7i7 ,state entity defined ,for purposes of this section1 the term ,state entity means-- 7#a7 a ,state educational agency2 7#b7 a ,state charter school board2 7#c7 a ,governor of a ,state2 or 7#d7 a charter school support organization4 4 #f4 ,facilities ,financing ,assistance ,section #ebjd 7#bj ,u4,s4,c4 #gbba;c7 is amended to read as follows3 #ebjd4 ,facilities ,financing ,assistance 7a7 ,grants to eligible entities 7#a7 ,in general ,from the amount reserved under section #ebjb7;b77#a71 the ,secretary shall not use less than #ej percent to award grants to eligible entities that have the highest-quality applications approved under subsection 7d71 after considering the diversity of such applications1 to demonstrate innovative methods of assisting charter schools to address the cost of acquiring1 constructing1 and renovating facilities by enhancing the availability of loans or bond financing4 7#b7 ,eligible entity defined ,for purposes of this section1 the term eligible entity means-- 7,a7 a public entity1 such as a ,state or local governmental entity2 7,b7 a private nonprofit entity2 or 7,c7 a consortium of entities described in subparagraphs 7,a7 and 7,b74 7b7 ,grantee ,selection ,the ,secretary shall evaluate each application submitted under subsection 7d71 and shall determine whether the application is sufficient to merit approval4 7c7 ,grant ,characteristics ,grants under subsection 7a7 shall be of a sufficient size1 scope1 and quality so as to ensure an effective demonstration of an innovative means of enhancing credit for the financing of charter school acquisition1 construction1 or renovation4 7d7 ,applications 7#a7 ,in general ,to receive a grant under subsection 7a71 an eligible entity shall submit to the ,secretary an application in such form as the ,secretary may reasonably require4 7#b7 ,contents ,an application submitted under paragraph 7#a7 shall contain-- 7,a7 a statement identifying the activities proposed to be undertaken with funds received under subsection 7a71 including how the eligible entity will determine which charter schools will receive assistance1 and how much and what types of assistance charter schools will receive2 7,b7 a description of the involvement of charter schools in the application's development and the design of the proposed activities2 7,c7 a description of the eligible entity's expertise in capital market financing2 7,d7 a description of how the proposed activities will leverage the maximum amount of private-sector financing capital relative to the amount of public funding used and otherwise enhance credit available to charter schools1 including how the eligible entity will offer a combination of rates and terms more favorable than the rates and terms that a charter school could receive without assistance from the eligible entity under this section2 7,e7 a description of how the eligible entity possesses sufficient expertise in education to evaluate the likelihood of success of a charter school program for which facilities financing is sought2 and 7,f7 in the case of an application submitted by a ,state governmental entity1 a description of the actions that the entity has taken1 or will take1 to ensure that charter schools within the ,state receive the funding the charter schools need to have adequate facilities4 7e7 ,charter school objectives ,an eligible entity receiving a grant under this section shall use the funds deposited in the reserve account established under subsection 7f7 to assist one or more charter schools to access private sector capital to accomplish one or more of the following objectives3 7#a7 ,the acquisition 7by purchase1 lease1 donation1 or otherwise7 of an interest 7including an interest held by a third party for the benefit of a charter school7 in improved or unimproved real property that is necessary to commence or continue the operation of a charter school4 7#b7 ,the construction of new facilities1 or the renovation1 repair1 or alteration of existing facilities1 necessary to commence or continue the operation of a charter school4 7#c7 ,the predevelopment costs required to assess sites for purposes of paragraph 7#a7 or 7#b7 and which are necessary to commence or continue the operation of a charter school4 7f7 ,reserve account 7#a7 ,use of funds ,to assist charter schools to accomplish the objectives described in subsection 7e71 an eligible entity receiving a grant under subsection 7a7 shall1 in accordance with ,state and local law1 directly or indirectly1 alone or in collaboration with others1 deposit the funds received under subsection 7a7 7other than funds used for administrative costs in accordance with subsection 7g77 in a reserve account established and maintained by the eligible entity for this purpose4 ,amounts deposited in such account shall be used by the eligible entity for one or more of the following purposes3 7,a7 ,guaranteeing1 insuring1 and reinsuring bonds1 notes1 evidences of debt1 loans1 and interests therein1 the proceeds of which are used for an objective described in subsection 7e74 7,b7 ,guaranteeing and insuring leases of personal and real property for an objective described in subsection 7e74 7,c7 ,facilitating financing by identifying potential lending sources1 encouraging private lending1 and other similar activities that directly promote lending to1 or for the benefit of1 charter schools4 7,d7 ,facilitating the issuance of bonds by charter schools1 or by other public entities for the benefit of charter schools1 by providing technical1 administrative1 and other appropriate assistance 7including the recruitment of bond counsel1 underwriters1 and potential investors and the consolidation of multiple charter school projects within a single bond issue74 7#b7 ,investment ,funds received under this section and deposited in the reserve account established under paragraph 7#a7 shall be invested in obligations issued or guaranteed by the ,united ,states or a ,state1 or in other similarly low-risk securities4 7#c7 ,reinvestment of ,earnings ,any earnings on funds received under subsection 7a7 shall be deposited in the reserve account established under paragraph 7#a7 and used in accordance with such paragraph4 7g7 ,limitation on administrative costs ,an eligible entity may use not more than #b4e percent of the funds received under subsection 7a7 for the administrative costs of carrying out its responsibilities under this section 7excluding subsection 7k774 7h7 ,audits and reports 7#a7 ,financial ,record ,maintenance and ,audit ,the financial records of each eligible entity receiving a grant under subsection 7a7 shall be maintained in accordance with generally accepted accounting principles and shall be subject to an annual audit by an independent public accountant4 7#b7 ,reports 7,a7 ,grantee annual reports ,each eligible entity receiving a grant under subsection 7a7 annually shall submit to the ,secretary a report of its operations and activities under this section4 7,b7 ,contents ,each annual report submitted under subparagraph 7,a7 shall include-- 7i7 a copy of the most recent financial statements1 and any accompanying opinion on such statements1 prepared by the independent public accountant reviewing the financial records of the eligible entity2 7ii7 a copy of any report made on an audit of the financial records of the eligible entity that was conducted under paragraph 7#a7 during the reporting period2 7iii7 an evaluation by the eligible entity of the effectiveness of its use of the ,federal funds provided under subsection 7a7 in leveraging private funds2 7iv7 a listing and description of the charter schools served during the reporting period1 including the amount of funds used by each school1 the type of project facilitated by the grant1 and the type of assistance provided to the charter schools2 7v7 a description of the activities carried out by the eligible entity to assist charter schools in meeting the objectives set forth in subsection 7e72 and 7vi7 a description of the characteristics of lenders and other financial institutions participating in the activities undertaken by the eligible entity under this section 7excluding subsection 7k77 during the reporting period4 7,c7 ,secretarial report ,the ,secretary shall review the reports submitted under subparagraph 7,a7 and shall provide a comprehensive annual report to ,congress on the activities conducted under this section 7excluding subsection 7k774 7i7 ,no full faith and credit for grantee obligation ,no financial obligation of an eligible entity entered into pursuant to this section 7such as an obligation under a guarantee1 bond1 note1 evidence of debt1 or loan7 shall be an obligation of1 or guaranteed in any respect by1 the ,united ,states4 ,the full faith and credit of the ,united ,states is not pledged to the payment of funds which may be required to be paid under any obligation made by an eligible entity pursuant to any provision of this section4 7j7 ,recovery of funds 7#a7 ,in ,general ,the ,secretary1 in accordance with chapter #cg of title #ca1 ,united ,states ,code1 shall collect-- 7,a7 all of the funds in a reserve account established by an eligible entity under subsection 7f77#a7 if the ,secretary determines1 not earlier than #b years after the date on which the eligible entity first received funds under this section 7excluding subsection 7k771 that the eligible entity has failed to make substantial progress in carrying out the purposes described in subsection 7f77#a72 or 7,b7 all or a portion of the funds in a reserve account established by an eligible entity under subsection 7f77#a7 if the ,secretary determines that the eligible entity has permanently ceased to use all or a portion of the funds in such account to accomplish any purpose described in subsection 7f77#a74 7#b7 ,exercise of ,authority ,the ,secretary shall not exercise the authority provided in paragraph 7#a7 to collect from any eligible entity any funds that are being properly used to achieve one or more of the purposes described in subsection 7f77#a74 7#c7 ,procedures ,the provisions of sections #dea1 #deb1 and #deh of the ,general ,education ,provisions ,act #bj ,u4,s4,c4 #abd1 #abcd;a1 #abcd;g shall apply to the recovery of funds under paragraph 7#a74 7#d7 ,construction ,this subsection shall not be construed to impair or affect the authority of the ,secretary to recover funds under part ,d of the ,general ,education ,provisions ,act 7#bj ,u4,s4,c4 #abcd et seq474 7k7 ,per-pupil facilities aid program 7#a7 ,definition of per-pupil facilities aid program ,in this subsection1 the term per-pupil facilities aid program means a program in which a ,state makes payments1 on a per-pupil basis1 to charter schools to provide the schools with financing-- 7,a7 that is dedicated solely for funding charter school facilities2 or 7,b7 a portion of which is dedicated for funding charter school facilities4 7#b7 ,grants 7,a7 ,in general ,from the amount under section #ebjb7;b77#a7 remaining after the ,secretary makes grants under subsection 7a71 the ,secretary shall make grants1 on a competitive basis1 to ,states to pay for the ,federal share of the cost of establishing or enhancing1 and administering per-pupil facilities aid programs4 7,b7 ,period ,the ,secretary shall award grants under this subsection for periods of not more than #e years4 7,c7 ,federal share ,the ,federal share of the cost described in subparagraph 7,a7 for a per-pupil facilities aid program shall be not more than-- 7i7 #ij percent of the cost1 for the first fiscal year for which the program receives assistance under this subsection2 7ii7 #hj percent in the second such year2 7iii7 #fj percent in the third such year2 7iv7 #dj percent in the fourth such year2 and 7v7 #bj percent in the fifth such year4 7,d7 ,state share ,a ,state receiving a grant under this subsection may partner with #a or more organizations to provide up to #ej percent of the ,state share of the cost of establishing or enhancing1 and administering the per-pupil facilities aid program4 7,e7 ,multiple grants ,a ,state may receive more than #a grant under this subsection1 so long as the amount of such funds provided to charter schools increases with each successive grant4 7#c7 ,use of funds 7,a7 ,in general ,a ,state that receives a grant under this subsection shall use the funds made available through the grant to establish or enhance1 and administer1 a per-pupil facilities aid program for charter schools in the ,state of the applicant4 7,b7 ,evaluations2 technical assistance2 dissemination ,from the amount made available to a ,state through a grant under this subsection for a fiscal year1 the ,state may reserve not more than #e percent to carry out evaluations1 to provide technical assistance1 and to disseminate information4 7,c7 ,supplement1 not supplant ,funds made available under this subsection shall be used to supplement1 and not supplant1 ,state and local public funds expended to provide per pupil facilities aid programs1 operations financing programs1 or other programs1 for charter schools4 7#d7 ,requirements 7,a7 ,voluntary participation ,no ,state may be required to participate in a program carried out under this subsection4 7,b7 ,state law 7i7 ,in general ,except as provided in clause 7ii71 to be eligible to receive a grant under this subsection1 a ,state shall establish or enhance1 and administer1 a per-pupil facilities aid program for charter schools in the ,state1 that-- 7,i7 is specified in ,state law2 and 7,,ii7 provides annual financing1 on a per-pupil basis1 for charter school facilities4 7ii7 ,special ,rule ,notwithstanding clause 7i71 a ,state that is required under ,state law to provide its charter schools with access to adequate facility space1 but which does not have a per-pupil facilities aid program for charter schools specified in ,state law1 may be eligible to receive a grant under this subsection if the ,state agrees to use the funds to develop a per-pupil facilities aid program consistent with the requirements of this subsection4 7#e7 ,applications ,to be eligible to receive a grant under this subsection1 a ,state shall submit an application to the ,secretary at such time1 in such manner1 and containing such information as the ,secretary may require4 4 #g4 ,national activities ,section #ebje 7#bj ,u4,s4,c4 #gbba;d7 is amended to read as follows3 #ebje4 ,national ,activities 7a7 ,in general ,from the amount reserved under section #ebjb7;b77#b71 the ,secretary shall-- 7#a7 use not less than #ge percent of such funds to award grants in accordance with subsection 7b72 and 7#b7 use not more than #be percent of such funds to-- 7,a7 provide technical assistance to ,state entities in awarding subgrants under section #ebjc1 and eligible entities and ,states receiving grants under section #ebjd2 7,b7 disseminate best practices2 and 7,c7 evaluate the impact of the charter school program1 including the impact on student achievement1 carried out under this subpart4 7b7 ,grants 7#a7 ,in general ,the ,secretary shall make grants1 on a competitive basis1 to eligible applicants for the purpose of carrying out the activities described in section #ebjb7;a77#a71 subparagraphs 7,a7 through 7,c7 of section #ebjc7;a77#a71 and section #ebjc7;g74 7#b7 ,terms and conditions ,except as otherwise provided in this subsection1 grants awarded under this subsection shall have the same terms and conditions as grants awarded to ,state entities under section #ebjc4 7#c7 ,charter management organizations ,the ,secretary shall-- 7,a7 use not less than #ge percent of the funds described in subsection 7a77#a7 to make grants1 on a competitive basis1 to eligible applicants described in paragraph 7#d77;,b72 and 7,b7 notwithstanding paragraphs 7#a77;,a7 and 7#b7 of section #ebjc7;f7-- 7i7 award grants to eligible applicants on the basis of the quality of the applications submitted under this subsection2 and 7ii7 in awarding grants to eligible applicants described in paragraph 7#d77;,b71 take into consideration whether such an eligible applicant-- 7,i7 demonstrates a high proportion of high-quality charter schools within the network of the eligible applicant2 7,,ii7 demonstrates success in serving students who are educationally disadvantaged2 7,,iii7 does not have a significant proportion of charter schools that have been closed1 had their charter revoked for compliance issues1 or had their affiliation with such eligible applicant revoked2 7,,iv7 has sufficient procedures in effect to ensure timely closure of low-performing or financially-mismanaged charter schools and clear plans and procedures in effect for the students in such schools to attend other high-quality schools2 and 7,v7 demonstrates success in working with schools identified for improvement by the ,state4 7#d7 ,eligible applicant defined ,for purposes of this subsection1 the term eligible applicant means an eligible applicant 7as defined in section #ebaj7 that-- 7,a7 desires to open a charter school in-- 7i7 a ,state that did not apply for a grant under section #ebjc2 or 7ii7 a ,state that did not receive a grant under section #ebjc2 or 7,b7 is a charter management organization4 7c7 ,contracts and grants ,the ,secretary may carry out any of the activities described in this section directly or through grants1 contracts1 or cooperative agreements4 4 #h4 ,records transfer ,section #ebjh 7#bj ,u4,s4,c4 #gbba;g7 is amended-- 7#a7 by inserting as quickly as possible and before to the extent practicable2 and 7#b7 by striking section #fjb and inserting section #fjb7ad74 #i4 ,definitions ,section #ebaj 7#bj ,u4,s4,c4 #gbba;i7 is amended-- 7#a7 by amending paragraph 7#a7 to read as follows3 7#a7 ,charter school ,the term charter school means a public school that-- 7,a7 in accordance with a specific ,state statute authorizing the granting of charters to schools1 is exempt from significant ,state or local rules that inhibit the flexible operation and management of public schools1 but not from any rules relating to the other requirements of this paragraph2 7,b7 is created by a developer as a public school1 or is adapted by a developer from an existing public school1 and is operated under public supervision and direction2 7,c7 operates in pursuit of a specific set of educational objectives determined by the school's developer and agreed to by the authorized public chartering agency2 7,d7 provides a program of elementary or secondary education1 or both2 7,e7 is nonsectarian in its programs1 admissions policies1 employment practices1 and all other operations1 and is not affiliated with a sectarian school or religious institution2 7,f7 does not charge tuition2 7,g7 complies with the ,age ,discrimination ,act of #aige1 title ,,vi of the ,civil ,rights ,act of #aifd1 title ,,ix of the ,education ,amendments of #aigb1 section #ejd of the ,rehabilitation ,act of #aigc1 part ,b of the ,individuals with ,disabilities ,education ,act1 the ,americans with ,disabilities ,act of #aiij 7#db ,u4,s4,c4 #abaja et seq471 and section #ddd of the ,general ,education ,provisions ,act 7#bj ,u4,s4,c4 #abcb7;g77 7commonly known as the ,family ,education ,rights and ,privacy ,act of #aigd72 7,h7 is a school to which parents choose to send their children1 and admits students on the basis of a lottery if more students apply for admission than can be accommodated1 except that in cases in which students who are enrolled in a charter school affiliated 7such as by sharing a network7 with another charter school1 those students may be automatically enrolled in the next grade level at such other charter school1 so long as a lottery is used to fill seats created through regular attrition in student enrollment2 7,i7 agrees to comply with the same ,federal and ,state audit requirements as do other elementary schools and secondary schools in the ,state1 unless such ,state audit requirements are waived by the ,state2 7,j7 meets all applicable ,federal1 ,state1 and local health and safety requirements2 7,k7 operates in accordance with ,state law2 7,l7 has a written performance contract with the authorized public chartering agency in the ,state that includes a description of how student performance will be measured in charter schools pursuant to ,state assessments that are required of other schools and pursuant to any other assessments mutually agreeable to the authorized public chartering agency and the charter school2 and 7,m7 may serve prekindergarten or postsecondary students4 2 7#b7 by redesignating paragraphs 7#b7 through 7#d7 as paragraphs 7#d7 through 7#f71 respectively2 7#c7 by inserting after paragraph 7#a71 the following3 7#b7 ,charter management organization ,the term charter management organization means a not-for-profit organization that manages a network of charter schools linked by centralized support1 operations1 and oversight4 7#c7 ,charter school support organization ,the term charter school support organization means a nonprofit1 nongovernmental entity that is not an authorized public chartering agency1 which provides on a statewide basis-- 7,a7 assistance to developers during the planning1 program design1 and initial implementation of a charter school2 and 7,b7 technical assistance to charter schools to operate such schools4 2 7#d7 in paragraph 7#e77;,b71 as so redesignated1 by striking under section #ebjc7;d77#c72 and 7#e7 by adding at the end the following3 7#g7 ,expanded1 high-quality charter school ,the term expanded1 high-quality charter school means a high-quality charter school that has either significantly increased its enrollment or added one or more grades to its school4 7#h7 ,high-quality charter school ,the term high-quality charter school means a charter school that-- 7,a7 shows evidence of strong academic results1 which may include strong academic growth as determined by a ,state2 7,b7 has no significant issues in the areas of student safety1 operational and financial management1 or statutory or regulatory compliance2 7,c7 has demonstrated success in significantly increasing student academic achievement1 including graduation rates where applicable1 consistent with the requirements under title ,i1 for all students served by the charter school2 and 7,d7 has demonstrated success in increasing student academic achievement1 including graduation rates where applicable1 for the groups of students described in section #aaaa7;b77#b77;,c77v77,,ii71 except that such demonstration is not required in a case in which the number of students in a group is insufficient to yield statistically reliable information or the results would reveal personally identifiable information about an individual student4 7#i7 ,replicated1 high-quality charter school model ,the term replicated1 high-quality charter school model means a high-quality charter school that has opened a new campus under an existing charter or an additional charter if required or permitted by ,state law4 4 #aj4 ,authorization of appropriations ,section #ebaa 7#bj ,u4,s4,c4 #gbba;j7 is amended to read as follows3 #ebaa4 ,authorization of appropriations ,there are authorized to be appropriated to carry out this subpart #cjj1jjj1jjj for fiscal year #bjae and each of the #e succeeding fiscal years4 4 #aa4 ,conforming amendments 7a7 ,repeal ,subpart #b of part ,b of title ,v 7#bj ,u4,s4,c4 #gbbc et seq47 is repealed4 7b7 ,table of contents ,the table of contents in section #b is amended-- 7#a7 by striking the item relating to subpart #a of part ,b of title ,v and inserting the following3 ,subpart #a--;,charter ,school ,program 2 7#b7 by striking the item relating to section #ebjc and inserting the following3 ,sec4 #ebjc4 ,grants to support high-quality charter schools4 2 7#c7 by striking the item relating to section #ebjd and inserting the following3 ,sec4 #ebjd4 ,facilities financing assistance4 2 and 7#d7 by striking the items relating to subpart #b of part ,b of title ,v4 ,passed the ,house of ,representatives ,may #i1 #bjad4;,clerk4