,i #aacth ,,congress #ast ,session ,h4 ,r4 #bbeb ,,in ,,the ,,house ,,of ,,representatives ,june #d1 #bjac ,mr4 ,polis 7for himself1 ,mr4 ,petri1 ,mr4 ,hinojosa1 ,mr4 ,paulsen1 ,mr4 ,guthrie1 ,mrs4 ,davis of ,california1 ,mr4 ,delaney1 and ,mr4 ,schock7 introduced the following bill2 which was referred to the ,committee on ,education and the ,workforce ,a ,,bill ,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 ,all ,students ,achieving through ,reform ,act of #bjac or the ,all-,,star ,act of #bjac4 #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 ,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 educational 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 limited ,english proficient students1 and other traditionally underserved students to attend charter schools and meet challenging ,state academic achievement standards2 and 7#g7 support efforts to strengthen the charter school authorizing process to improve performance management1 including transparency1 monitoring1 and evaluation of such schools4 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 startup1 replication1 and expansion of charter schools2 7#b7 assisting charter schools in accessing credit to acquire and renovate facilities for school use2 and 7#c7 carrying out national and local activities to support-- 7,a7 the development of high-quality charter schools2 7,b7 the dissemination of best practices of charter schools for all schools2 and 7,c7 the evaluation of the impact of the program on schools participating in the program4 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 #b4e percent to carry out the technical assistance and best practices under section #ebje7;a7 and the evaluation under section #ebje7;b71 of which #a percent shall be used to carry out such evaluation2 7#c7 reserve not more than #bj percent to award grants for local activities under section #ebje7;c72 and 7#d7 use the remaining amount after the ,secretary reserves funds under paragraphs 7#a7 through 7#d7 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 ,all ,students ,achieving through ,reform ,act of #bjac1 shall continue to receive funds in accordance with the terms and conditions of such grant or subgrant4 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 ,grants to covered entities 7#a7 ,in general ,subject to paragraph 7#b71 from the amount reserved under #ebjb7;b77#e71 the ,secretary shall award grants to covered entities having applications approved pursuant to subsection 7f7 to enable such entities to-- 7,a7 award subgrants to eligible applicants for-- 7i7 opening new charter schools2 7ii7 replicating high-quality charter school models2 or 7iii7 expanding 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 7#b7 ,special rule ,in the case in which a covered entity that is a ,state educational agency elects not to receive a grant under this section or does not have an application approved under subsection 7f71 the ,secretary may award a grant to an eligible applicant that-- 7,a7 serves such ,state2 7,b7 submits an application to the ,secretary that would be approved pursuant to section #ebje7;c7 if such eligible applicant were to apply for a grant under such section2 and 7,c7 has not received a grant under such section #ebje7;c74 7b7 ,uses of funds for covered entities 7#a7 ,in general ,a covered entity receiving a grant under this section shall-- 7,a7 use #ij percent of the grant funds to award subgrants to eligible applicants1 in accordance with the quality charter school program described in the covered entity's application approved pursuant to subsection 7f71 for the purposes described in clauses 7i7 through 7iii7 of subsection 7a77#a77;,a72 and 7,b7 reserve #aj percent of such funds to carry out the activities described in subsection 7a77#a77;,b71 of which not more than #cj percent may be used for administrative costs which may include technical assistance4 7#b7 ,contracts and grants ,a covered 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 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 covered entity under this section shall be for a period of not more than #c years1 except that the covered entity may1 at the discretion of the ,secretary1 continue to expend grant funds after the end of such #c-year period to award subgrants in accordance with subsection 7b77#a77;,a74 7,b7 ,subgrants ,a subgrant awarded by a covered entity to an eligible applicant under this section shall be for a period of not more than #c years4 7#b7 ,peer ,review ,the ,secretary1 and each covered entity receiving a grant under this section1 shall use a peer review process to review applications for assistance under this section4 7#c7 ,grant number and amount ,the ,secretary shall ensure that the number of grants awarded under this section and the award amounts will allow for a sufficient number of new grants to be awarded under this section for each succeeding fiscal year4 7#d7 ,diversity of ,projects ,each covered 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 #ebaj7a7 or to an applicable civil rights requirement1 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 ,a covered entity may not receive more than #a grant under this section1 unless the entity-- 7,a7 for each charter school supported under the first grant received under this section1 provides aggregate data demonstrating that the students enrolled in the charter school have experienced demonstrated improvement in academic achievement2 and 7,b7 demonstrates that the funds provided under the additional grant will be awarded to replicate high-quality charter school models or expand high-quality charter schools4 7#b7 ,subgrants ,a charter school may not receive funds from more than #a subgrant awarded to an eligible applicant under this section4 7e7 ,applications ,a covered 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 covered entity's objectives in carrying out a quality charter school program under this section and how the objectives of the program will be carried out1 including a description-- 7,a7 of how the entity-- 7i7 will support both new charter school startup and the expansion and replication of high-quality charter school models2 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 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 and 7,,ii7 receive the commensurate share of ,federal funds the schools and students are eligible to receive under such programs2 7iv7 in the case in which the 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 entity's program under this section1 where applicable2 7v7 will ensure eligible applicants that receive a subgrant under the entity's program are prepared to continue to operate the charter schools receiving the subgrant funds once the funds have expired2 7vi7 will support charter schools participating in the entity's program and that are in local educational agencies with large numbers of schools that must comply with the requirements of section #aaaf7;b72 7vii7 will work with charter schools participating in the entity's program to promote inclusion of all students and support all students once they are enrolled to promote retention2 7viii7 will work with such charter schools on recruitment practices1 including efforts to engage groups that may otherwise have limited opportunities to participate in charter schools2 7ix7 will share best and promising practices between charter schools and other public schools1 including1 where appropriate1 instruction and professional development in science1 math1 technology1 and engineering education2 7x7 will ensure the charter schools they support can meet the educational needs of their students1 including students with disabilities and limited ,english proficient students2 and 7xi7 will support efforts to increase quality initiatives1 including meeting the quality authorizing elements described in paragraph 7#b77;,e72 7,b7 of the extent to which the 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 replication of high-quality charter school models1 and the expansion of high-quality charter schools2 7,c7 of how the 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 and how a school's performance on the ,state's accountability system established under section #aaaa7;b77#b77;,a7 will be a primary factor for renewal2 and 7,,iii7 a description of how the eligible applicant will solicit and consider input from parents and other members of the community on the planning1 implementation1 and operation of each charter school receiving funds under the entity's program2 and 7ii7 a description of how the entity will review applications2 7,d7 in the case of an entity that partners with an outside organization to carry out the entity's quality charter school program1 in whole or in part1 of the roles and responsibilities of this partner2 7,e7 of how the entity will support charter schools in providing for the transportation needs of their students2 and 7,f7 of how the 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 entity's program will have a high degree of autonomy over budget and operations2 7,b7 the entity will support charter schools in meeting the educational needs of their students as described in paragraph 7#a77;,a77x72 7,c7 the entity will ensure that the authorized public chartering agency of any charter school that receives funds under the entity's program-- 7i7 ensures that each charter school is meeting the obligations under this ,act1 part ,b of the ,individuals with ,disabilities ,education ,act1 title ,,vi of the ,civil ,rights ,act of #aifd1 section #ejd of the ,rehabilitation ,act of #aigc1 the ,age ,discrimination ,act of #aige1 the ,americans with ,disabilities ,act of #aiij1 section #ddd of the ,general ,education ,provisions ,act 7commonly known as the ,family ,educational ,rights and ,privacy ,act of #aigd71 and title ,,ix of the ,education ,amendments of #aigb2 7ii7 adequately monitors and hold accountable each charter school with respect to recruiting1 enrolling1 and meeting the needs of all students1 including students with disabilities and limited ,english proficient students2 7iii7 ensures that each charter school provides substantive outreach to students from low-income families in its plans to open new charter schools1 replicate high-quality charter school models1 or expand existing high-quality charter schools2 and 7iv7 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 entity will provide adequate technical assistance to eligible applicants to-- 7i7 meet the objectives described in clauses 7vii7 and 7viii7 of paragraph 7#a77;,a7 and paragraph 7#b77;,b72 and 7ii7 enroll traditionally underserved students1 including students with disabilities and limited ,english proficient students1 to promote an inclusive education environment2 7,e7 the entity will promote quality authorizing1 such as through providing technical assistance1 to support all authorized public chartering agencies in the ,state to improve the monitoring of their charter schools1 including by-- 7i7 assessing annual performance data of the schools1 including1 as appropriate1 graduation rates and student growth2 and 7ii7 reviewing the schools' independent1 annual audits of financial statements conducted in accordance with generally accepted accounting principles1 and ensuring any such audits are publicly reported2 7,f7 the entity will work to ensure that charter schools are included with the traditional public local educational agencies in decision-making about the public school system in the ,state2 and 7,g7 the entity will ensure that each charter school in the ,state make publicly available1 consistent with the dissemination requirements of the annual ,state report card1 the information parents need to make informed decisions about the educational options available to their children1 including information on the educational program1 student support services1 and annual performance and enrollment data for the groups of students described in section #aaaa7;b77#b77;,c77v77,,ii74 7#c7 ,requests for waivers ,a request and justification1 meeting the requirements of subparagraphs 7,a7 and 7,b7 of section #ebjc7;c77#e71 for waivers of any ,federal statutory or regulatory provisions that the entity believes are necessary for the successful operation of the charter schools that will receive funds under the 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 schools4 7f7 ,selection criteria2 priority 7#a7 ,selection criteria ,the ,secretary shall award grants under this section to covered entities on the basis of the quality of the applications submitted under subsection 7e71 after taking into consideration-- 7,a7 for covered entities described in paragraphs 7#a7 and 7#c7 of subsection 7i7-- 7i7 the degree of flexibility afforded by the ,state's public charter school law and how the entity will work to maximize the flexibility provided to charter schools under the law2 7ii7 the ambitiousness of the entity's objectives for the quality charter school program carried out under this section2 7iii7 the quality of the strategy for assessing achievement of those objectives2 7iv7 the likelihood that the eligible applicants receiving subgrants under the program will meet those objectives and improve educational results for students2 7v7 the proposed number of new charter schools to be opened1 and the proposed number of high-quality charter schools to be replicated or expanded under the program2 7vi7 the entity's plan to-- 7,i7 adequately monitor the eligible applicants receiving subgrants under the entity's program2 and 7,,ii7 work with the authorized public chartering agencies involved to avoid duplication of work for the charter schools and authorized public chartering agencies2 7vii7 the entity's plan to provide adequate technical assistance1 as described in the entity's application under subsection 7e71 for the eligible applicants receiving subgrants under the entity's program under this section2 7viii7 the entity's plan to support quality authorizing efforts in the ,state1 consistent with the objectives described in clause 7ii72 and 7ix7 the 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 ,state2 7,b7 for covered entities described in paragraphs 7#b7 and 7#d7 of subsection 7i7-- 7i7 the ambitiousness of the entity's objectives for the quality charter school program carried out under this section2 7ii7 the quality of the strategy for assessing achievement of those objectives2 7iii7 the likelihood that the eligible applicants receiving subgrants under the entity's program will meet those objectives and improve educational results for students2 7iv7 the proposed number of new charter schools to be opened1 and the proposed number of high-quality charter schools to be replicated or expanded under the program2 7v7 the entity's plan to adequately monitor the eligible applicants receiving subgrants under the entity's program2 7vi7 the entity's plan to provide adequate technical assistance1 as described in the entity's application under subsection 7e71 for the eligible applicants receiving subgrants under the entity's program under this section2 7vii7 the extent to which the entity has policies and procedures to ensure that charter schools in the area served by the entity-- 7,i7 have equitable access to facilities available to other public schools in such area2 or 7,,ii7 are not denied access to available public school facilities in such area2 and 7viii7 the extent to which the entity demonstrates support for public school choice and provides parents with information regarding charter school alternatives2 and 7,c7 for covered entities described in subsection 7i77#b71 in addition to taking into consideration the items described in clauses 7i7 through 7viii7 of subparagraph 7,b71 the entity's record of success in authorizing and supporting high-quality charter schools4 7#b7 ,priority ,in awarding grants under this section1 the ,secretary shall give priority to covered entities to the extent that such entities meet the following criteria3 7,a7 ,states ,for covered entities described in paragraphs 7#a7 and 7#c7 of subsection 7i73 7i7 ,the entity is located in a ,state that has a quality authorized public chartering agency that is an entity other than a local educational agency4 7ii7 ,the 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 7iii7 ,the 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 7iv7 ,the 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 7v7 ,the 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 7vi7 ,the entity demonstrates quality policies and practices to support and monitor charter schools through factors including-- 7,i7 the proportion of high-quality charter schools in the ,state2 and 7,,ii7 the proportion of charter schools enrolling1 at a rate similar to traditional public schools1 traditionally underserved students1 including students with disabilities and limited ,english proficient students4 7vii7 ,the entity supports charter schools that support at-risk students through activities such as dropout prevention or dropout recovery4 7viii7 ,the entity authorizes all charter schools in the ,state to serve as school food authorities4 7ix7 ,the entity is located in a ,state that authorizes any charter school to be a local educational agency in accordance with ,state law4 7x7 ,the entity is located in a ,state that allows appeals of decisions of authorized public chartering agencies4 7xi7 ,the entity is located in a ,state that funds local educational agencies based on an average daily enrollment or attendance count or based on more than one annual enrollment count4 7xii7 ,the entity is located in a ,state with a law or policy such that per pupil revenues are shared between local educational agencies to reflect split student enrollment in #b or more part-time educational programs operated or authorized by different local educational agencies4 7xiii7 ,the entity has taken steps to ensure that all authorized public chartering agencies implement practices that comply with nationally recognized best practices for quality charter school authorizing4 7xiv7 ,the entity has policies and procedures to ensure that charter schools identified as failing under the accountability system established under section #aaaa7;b77#b77;,a7 of the ,state in which the entity is located are closed1 do not have their charters renewed1 or are not otherwise allowed to continue operating1 except in special circumstances determined by the ,state for charter schools-- 7,i7 designated through a ,state system as alternative education programs with an explicit mission to serve students who have failed in traditional systems or large proportions of extremely at-risk students1 such as students with moderate to profound disabilities or incarcerated youth2 and 7,,ii7 that are required to comply with the accountability system established under section #aaaa7;b77#b77;,a7 of the ,state4 7,b7 ,local educational agencies and authorized public chartering agencies ,for covered entities described in paragraphs 7#b7 and 7#d7 of subsection 7i73 7i7 ,the entity does not impose1 to the extent allowable under ,state law1 any limitation on the number or percentage of charter schools that may exist or the number or percentage of students that may attend charter schools4 7ii7 ,the entity provides1 to the extent allowed under ,state law1 equitable financing1 as compared to traditional public schools1 for charter schools and students who attend such schools in a prompt manner4 7iii7 ,the entity demonstrates quality policies and practices to support and monitor charter schools through factors1 including the proportion of charter schools enrolling1 at a rate similar to traditional public schools1 traditionally underserved students1 including students with disabilities and limited ,english proficient students4 7iv7 ,the entity supports charter schools that support at-risk students through activities such as dropout prevention or dropout recovery4 7v7 ,the entity authorizes all charter schools it authorizes to serve as school food authorities to the extent allowed under ,state law4 7vi7 ,the entity has taken steps to ensure that it complies with nationally recognized best practices for quality charter school authorizing4 7vii7 ,the entity ensures that charter schools identified as failing under the accountability system established under section #aaaa7;b77#b77;,a7 of the ,state in which the entity is located are closed1 do not have their charter renewed1 or are otherwise allowed to continue operating1 except in special circumstances determined by the ,state for charter schools-- 7,i7 designated through a ,state system as alternative education programs with an explicit mission to serve students who have failed in traditional systems or large proportions of extremely at-risk students1 such as students with moderate to profound disabilities or incarcerated youth2 and 7,,ii7 that are required to comply with the accountability system established under section #aaaa7;b77#b77;,a7 of the ,state4 7viii7 ,the entity has authorized not less than #c high-quality charter schools4 7g7 ,local uses of funds ,an eligible applicant receiving a subgrant under this section shall use such funds to open new charter schools1 replicate high-quality charter school models1 or expand existing high-quality charter schools1 which may include-- 7#a7 securing a school building through lease or purchase and providing the necessary renovations to ensure a strong school opening or to meet the needs of increased student enrollment2 7#b7 paying startup costs associated with hiring teachers to ensure strong school starts2 7#c7 providing transportation to students to and from charter schools opened1 replicated1 or expanded under this subsection1 but only in the case of an applicant that demonstrates the capability to continue providing such transportation after the expiration of the subgrant funds2 7#d7 purchasing instructional materials1 implementing teacher and principal professional development programs1 and hiring additional other staff for such charter schools2 and 7#e7 supporting any other necessary startup and expansion activities with respect to such charter schools4 7h7 ,reporting requirements ,each covered entity receiving a grant under this section shall submit to the ,secretary1 at the end of each year of the #c-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 number of subgrants awarded under this section to carry out each of the following-- 7,a7 the opening of new charter schools2 7,b7 the replication of high-quality charter school models2 and 7,c7 the expansion of high-quality charter schools2 7#c7 the progress the entity made toward meeting the priorities described in subsection 7f77#b71 as applicable2 7#d7 how the entity met the objectives of the quality charter school program described in the entity's application under subsection 7e72 7#e7 how the entity complied with1 and ensured that eligible applicants complied with1 the assurances described in the entity's application2 and 7#f7 how the 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 section4 7i7 ,covered entity defined ,for purposes of this section1 the term covered entity means-- 7#a7 a ,state educational agency2 7#b7 an authorized public chartering agency that is located in a ,state in which neither the ,state educational agency nor the ,governor of the ,state has received a grant under this section2 7#c7 a ,governor of a ,state2 or 7#d7 a local educational agency that-- 7,a7 is not a charter school that is considered a local educational agency under ,state law2 and 7,b7 is located in a ,state in which neither the ,state educational agency nor the ,governor of the ,state has received a grant under this section4 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 ,the ,secretary shall use not less than #fe percent of the amount reserved under section #ebjb7;b77#a7 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 loan 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 ,in awarding grants under subsection 7a71 the ,secretary shall award multiple grants of 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 government funding used and otherwise enhance credit available to charter schools1 including how the 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 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 7,f7 a description of how the eligible entity will encourage energy-efficient school building practices2 7,g7 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 facilities2 and 7,h7 such other information as the ,secretary may reasonably require4 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 both 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 including predevelopment costs1 or the renovation1 repair1 or alteration of existing facilities1 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 7g7 of this section7 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 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 ,act4 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 reserved 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 ,state1 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 and grants for local activities 7a7 ,technical assistance and best practices ,from the amount reserved under section #ebjb7;b77#b7 for carrying out this subsection1 the ,secretary shall-- 7#a7 disseminate technical assistance to covered entities in awarding subgrants under section #ebjc1 and eligible entities and ,states receiving grants under section #ebjd2 and 7#b7 disseminate best practices4 7b7 ,evaluation ,from the amount reserved under section #ebjb7;b77#b7 for carrying out this subsection1 the ,secretary shall1 in partnership with the ,institute for ,education ,sciences-- 7#a7 develop relevant performance metrics1 including student outcome data1 for covered entities1 eligible applicants1 and charter schools that receive funds under section #ebjc2 7#b7 assist such covered entities1 eligible applicants1 and charter schools in collecting and submitting1 on an annual basis1 data on such performance metrics to the ,secretary2 7#c7 evaluate the performance of and conduct related research to-- 7,a7 determine which policies and practices of covered entities1 eligible applicants1 and charter schools have the greatest impact on student achievement2 7,b7 drive continuous improvement with respect to relevant performance metrics1 including student outcome data1 for covered entities1 eligible applicants1 and charter schools that receive funds under section #ebjc2 and 7,c7 inform the distribution of funds to higher performing covered entities1 eligible applicants1 and charter schools2 and 7#d7 disseminate the findings of the research1 evaluation1 and data collection under this subsection to maximize lessons learned for other educators1 charter schools1 and policy makers4 7c7 ,grants for local activities 7#a7 ,in general ,from the amount reserved under section #ebjb7;b77#c71 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 clauses 7i7 through 7iii7 of section #ebjc7;a77#a77;,a71 and section #ebjc7;g74 7#b7 ,terms and conditions ,except as otherwise provided in this subsection1 each grant awarded under this subsection shall have the same terms and conditions as a grant awarded to covered entities under section #ebjc1 including the grant limitations described in subparagraphs 7,a7 and 7,b7 in section #ebjc7;d77#a71 except that-- 7,a7 a charter school that has previously used funds received under this subpart for planning or charter school program design to open a new charter school may not use funds under this subsection for such planning or program design2 and 7,b7 notwithstanding subparagraph 7,a71 an eligible applicant that is a charter management organization may receive more than #a grant under this subsection during a grant period to expand a high-quality charter school1 replicate a high-quality charter school model1 or open or one or more high-quality charter schools that are based on the charter school model for which the eligible applicant has presented evidence of success to the ,secretary4 7#c7 ,definitions ,for purposes of this subsection-- 7,a7 the term charter management organization a nonprofit organization1 other nonprofit entity1 or a group or consortium of such organizations or entities that-- 7i7 operates1 manages1 or oversees multiple charter schools by centralizing or sharing certain functions and resources among such schools2 or 7ii7 desires to open1 replicate1 or expand a high-quality charter school4 7,b7 the term eligible applicant means-- 7i7 an eligible applicant 7as defined in section #ebaj7 that has not received a grant or subgrant under section #ebjc2 or 7ii7 a charter management organization4 7d7 ,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 in paragraph 7#a7-- 7,a7 in subparagraph 7,h7 by inserting 7which1 if authorized under the ,state law of the school and the school's charter agreement1 may be a lottery that gives added weight to students eligible for free or reduced price lunch under the ,richard ,b4 ,russell ,national ,school ,lunch ,act7 after lottery2 7,b7 by striking and at the end of subparagraph 7,k72 7,c7 by striking the period at the end of subparagraph 7,l7 and inserting 2 and2 and 7,d7 by adding at the end1 the following3 7,m7 may serve prekindergarten or post secondary students4 2 7#b7 in paragraph 7#c77;,b71 by striking under section #ebjc7;d77#c72 and 7#c7 by adding at the end the following3 7#e7 ,expansion of a high-quality charter school ,the term expansion of a high-quality charter school means significantly increasing the enrollment of a high-quality charter school or adding #a or more grades to such school4 7#f7 ,high-quality charter school ,the term high-quality charter school means a charter school that-- 7,a7 shows evidence of strong academic results1 including through-- 7i7 the percentage of students in the proficient or advanced levels of achievements on the ,state academic assessments required under section #aaaa7;b77#c71 compared to demographically similar schools in the ,state2 7ii7 the average student academic1 longitudinal growth from one school year to next school year1 if available and as determined by the ,state1 on the ,state academic assessments required under section #aaaa7;b77#c7 that is above such growth in demographically similar schools in the ,state2 7iii7 in the case of a charter school that is a secondary school1 high school graduation rates2 and 7iv7 college attendance and persistence rates1 when available2 7,b7 has no significant issues in the areas of student safety1 financial management1 or statutory or regulatory compliance2 7,c7 has demonstrated success in significantly increasing student academic achievement and attainment for all students served by the charter school2 and 7,d7 has demonstrated success in-- 7i7 increasing student academic achievement as described in subparagraph 7,a7 for each group of students described in section #aaaa7;b77#b77;,c77v77,,ii7 and served by the charter school1 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 student2 and 7ii7 closing achievement gaps between each such group and all populations served by the charter school4 7#g7 ,high-quality charter school model ,the term high-quality charter school model means a high-quality charter school that has the capability of opening another such charter school under an existing charter1 such as a feeder middle school or a secondary school that a middle school feeds students into4 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 #ccj1jjj1jjj for fiscal year #bjad 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 section #ebjc and inserting the following3 ,sec4 #ebjc4 ,grants to support high-quality charter schools4 2 7#b7 by striking the item relating to section #ebjd and inserting the following3 ,sec4 #ebjd4 ,facilities ,financing ,assistance4 2 and 7#c7 by striking subpart #b of part ,b of title ,v4