,,ii #aacth ,,congress #b;d ,session ,s4 #bcjd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #g1 #bjad ,mr4 ,kirk 7for himself1 ,ms4 ,landrieu1 ,mr4 ,alexander1 ,mr4 ,bennet1 ,mrs4 ,feinstein1 ,mr4 ,paul1 ,mr4 ,isakson1 ,mr4 ,rubio1 ,mr4 ,vitter1 ,mr4 ,cornyn1 ,mr4 ,scott1 ,mr4 ,booker1 ,mr4 ,hatch1 ,mr4 ,carper1 ,mr4 ,mc,connell1 and ,mr4 ,cruz7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,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 ,expanding ,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 ,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 individuals in the ,united ,states by supporting innovation in public education in public school settings that prepare students to compete in1 and contribute to1 the global economy2 7#b7 provide financial assistance for the planning1 program design1 and initial implementation of charter schools2 7#c7 increase 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 among 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 expand opportunities for students with disabilities1 students who are limited ,english proficient1 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 in order 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 ,the ,secretary is authorized 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 the replication of high-quality charter schools1 and the 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 the startup of charter schools1 the replication of high-quality charter schools1 and the expansion of high-quality charter schools2 7,b7 the dissemination of best practices of charter schools for all schools2 7,c7 the evaluation of the impact of the charter school program on schools participating in such 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 less than #be percent to carry out national activities under section #ebje2 and 7#c7 use the remaining amount after the reservations 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 subpart1 as such subpart was in effect on the day before the date of enactment of the ,expanding ,opportunity through ,quality ,charter ,schools ,act1 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 ,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 7b7 ,program authorized ,from the amount available under section #ebjb7;b77#c71 the ,secretary shall award1 on a competitive basis1 grants to ,state entities having applications approved under subsection 7f7 to enable such entities to-- 7#a7 award subgrants to eligible applicants-- 7,a7 to open new charter schools2 7,b7 to replicate high-quality charter schools2 or 7,c7 to expand 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 7c7 ,state entity 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 entity's application pursuant to subsection 7f71 for the purposes described in subparagraphs 7,a7 through 7,c7 of subsection 7b77#a72 7,b7 reserve not less than #g percent of such funds to carry out the activities described in subsection 7b77#b72 and 7,c7 reserve not more than #c percent of such funds for administrative costs1 which may include the administrative costs of providing 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 subparagraph 7,a7 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 ,state entities1 or ,state entities from awarding subgrants to eligible applicants1 that use a weighted lottery1 or an equivalent lottery mechanism1 to give better chances for school admission to all or a subset of educationally disadvantaged students if-- 7,a7 the use of a weighted lottery in favor of such students is not prohibited by ,state law1 and such ,state law is consistent with the laws described in subparagraph 7,g7 of section #ebaj7b72 and 7,b7 such weighted lottery is not used for the purpose of creating schools exclusively to serve a particular subset of students4 7d7 ,program periods2 peer review2 distribution of subgrants2 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 #c years1 and may be renewed by the ,secretary for #a additional #b-year period4 7,b7 ,subgrants ,a subgrant awarded by a ,state entity under this section-- 7i7 shall be for a period of not more than #c years1 of which an eligible applicant may use not more than #ah months for planning and program design2 and 7ii7 may be renewed by the ,state entity for #a additional #b-year period4 7#b7 ,peer ,review ,the ,secretary1 and each ,state entity awarding subgrants under this section1 shall use a peer review process to review applications for assistance under this section4 7#c7 ,distribution of subgrants ,each ,state entity awarding subgrants under this section shall award subgrants in a manner that1 to the extent practicable and applicable1 ensures that such subgrants-- 7,a7 prioritize eligible applicants that plan to serve a significant number of students from low-income families2 7,b7 are distributed throughout different areas1 including urban1 suburban1 and rural areas2 and 7,c7 will assist charter schools representing a variety of educational approaches4 7#d7 ,waivers ,the ,secretary may waive any statutory or regulatory requirement over which the ,secretary exercises administrative authority1 except any such requirement relating to the elements of a charter school described in section #ebaj7b71 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 purposes of this subpart4 7e7 ,limitations 7#a7 ,grants ,a ,state entity may not receive more than #a grant under this section at a time4 7#b7 ,subgrants ,an eligible applicant may not receive more than #a subgrant under this section for each individual charter school for each grant period or renewal period1 unless the eligible applicant demonstrates to the ,state entity that the charter school has demonstrated a strong track record of positive results over the course of the grant period regarding the elements described in subparagraphs 7,a7 and 7,d7 of section #ebaj7h74 7f7 ,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 in running a quality charter school program under this section and how the objectives of the program will be carried out1 including-- 7,a7 a description of how the ,state entity will-- 7i7 support the opening of new charter schools and1 if applicable1 the replication of high-quality charter schools and the expansion of high-quality charter schools1 and the proposed number of charter schools to be opened1 replicated1 or expanded under the ,state entity's program2 7ii7 inform eligible charter schools1 developers1 and authorized public chartering agencies of the availability of funds under the program2 7iii7 work with eligible applicants to ensure that the eligible applicants access all ,federal funds that such applicants are eligible to receive1 and help the charter schools supported by such applicants and the students attending those 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 of a ,state entity that is not a ,state educational agency-- 7,i7 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 work with the ,state educational agency to operate the ,state entity's program under this section1 if applicable2 7v7 ensure each eligible applicant that receives a subgrant under the ,state entity's program-- 7,i7 is opening or expanding schools that meet the definition of a charter school under section #ebaj7b72 and 7,,ii7 is prepared to continue to operate such charter schools once the subgrant funds under this section are no longer available2 7vi7 support charter schools in local educational agencies with large numbers of schools that have been identified by the ,state for improvement2 7vii7 work with charter schools to promote inclusion of all students and support all students upon enrollment in order to promote retention of students in the school2 7viii7 work with charter schools on recruitment practices1 including efforts to engage groups that may otherwise have limited opportunities to attend charter schools2 7ix7 share best and promising practices among charter schools and other public schools2 7x7 ensure that charter schools receiving funds under the ,state entity's program meet the educational needs of their students1 including students with disabilities and students who are limited ,english proficient2 and 7xi7 support efforts to increase charter school quality initiatives1 including meeting the quality authorizing elements described in paragraph 7#b77;,d72 7,b7 a description of how the ,state will actively monitor and hold authorized public chartering agencies accountable to ensure high-quality authorizing activity1 including by establishing authorizing standards and by approving1 re-approving1 and revoking 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 statutes2 7,c7 a description of the extent to which the ,state entity-- 7i7 is able to meet and carry out the priorities described in subsection 7g77#b72 and 7ii7 is working to develop or strengthen a cohesive statewide system to support the opening of new charter schools and1 if applicable1 the replication of high-quality charter schools and the expansion of high-quality charter schools2 7,d7 a description of how the ,state entity will award subgrants1 on a competitive basis1 including-- 7i7 a description of the application each eligible applicant desiring to receive a subgrant will be required to submit1 which application shall include-- 7,i7 a description of the roles and responsibilities of eligible applicants and of any charter management organizations or other organizations with which the eligible applicant will partner to open charter schools1 including 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 academic accountability system and impact on student achievement1 which may include student growth1 will be primary factors for renewal or revocation of the school's charter2 and 7,,iii7 a description of how the autonomy and flexibility granted to the charter school are consistent with the definition of a charter school in section #ebaj7b72 and 7,,iv7 a description of the planned activities and expenditures of subgrant funds for purposes of opening a new charter school1 replicating a high-quality charter school1 or expanding a high-quality charter school1 and how the charter school will maintain financial sustainability after the end of the subgrant period2 and 7ii7 a description of how the ,state entity will review applications from eligible applicants2 7,e7 in the case of a ,state entity that partners with an outside organization to carry out the ,state entity's quality charter school program1 in whole or in part1 a description of the roles and responsibilities of the partner2 and 7,f7 a description of how the ,state entity will help the charter schools receiving funds under the ,state entity's program address the transportation needs of the schools' students4 7#b7 ,assurances ,assurances that-- 7,a7 each charter school receiving funds through the ,state entity's grant program will have a high degree of autonomy over budget and operations1 including autonomy over personnel decisions2 7,b7 the ,state entity will support charter schools in meeting the educational needs of their students1 as described in paragraph 7#a77;,a77x72 7,c7 the ,state 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 under the authority of such agency is meeting the requirements of this ,act1 part ,b of the ,individuals with ,disabilities ,education ,act1 title ,,vi of the ,civil ,rights ,act of #aifd1 and section #ejd of the ,rehabilitation ,act of #aigc2 and 7ii7 adequately monitors and provides adequate technical assistance to each charter school under the authority of such agency in recruiting1 enrolling1 and meeting the needs of all students1 including students with disabilities and students who are limited ,english proficient2 7,d7 the ,state entity will promote quality authorizing1 such as through providing technical assistance1 to support all authorized public chartering agencies in the ,state in improving the monitoring of the charter schools authorized by such agency1 including by-- 7i7 using annual performance data1 which may include graduation rates and student academic growth data1 as appropriate1 to measure a school's progress toward becoming a high-quality charter school2 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 and 7,e7 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 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 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 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 apply1 to such schools or1 in the case of a ,state entity defined in subsection 7a77#d71 a description of how the ,state entity will work with the ,state to request necessary waivers1 if applicable4 7g7 ,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 7f71 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 proposed number of new charter schools to be opened1 and1 if applicable1 the number of high-quality charter schools to be replicated or expanded under the program1 and the number of new students to be served by such schools2 7,c7 the likelihood that the schools opened1 replicated1 or expanded by eligible applicants receiving subgrant funds will increase the academic achievement of the school's students and progress toward becoming high-quality charter schools2 and 7,d7 the quality of the ,state entity's plan to-- 7i7 monitor the eligible applicants receiving subgrants under the ,state entity's program2 and 7ii7 provide technical assistance and support for-- 7,i7 the eligible applicants receiving subgrants under the ,state entity's program2 and 7,,ii7 quality authorizing efforts in the ,state4 7#b7 ,priority ,in awarding grants under this section1 the ,secretary shall give priority to a ,state entity to the extent that the entity meets the following criteria3 7,a7 ,the ,state entity is located in a ,state that-- 7i7 allows at least one entity that is not a local educational agency to be an authorized public chartering agency for each developer seeking to open a charter school in the ,state2 or 7ii7 in the case of a ,state in which local educational agencies are the only authorized public chartering agencies1 the ,state has an appeals process for the denial of an application for a charter school4 7,b7 ,the ,state entity is located in a ,state that ensures that charter schools receive equitable financing1 as compared to traditional public schools1 in a prompt manner4 7,c7 ,the ,state entity is located in a ,state that provides charter schools one or more of the following3 7i7 ,funding for facilities4 7ii7 ,assistance with facilities acquisition4 7iii7 ,access to public facilities4 7iv7 ,the ability to share in bonds or mill levies4 7v7 ,the right of first refusal to purchase public school buildings4 7vi7 ,low- or no-cost leasing privileges4 7,d7 ,the ,state entity is located in a ,state that uses best practices from charter schools to help improve struggling schools and local educational agencies4 7,e7 ,the ,state entity supports charter schools that support at-risk students through activities such as dropout prevention or dropout recovery4 7,f7 ,the ,state entity ensures that each charter school has a high degree of autonomy over the charter school's budget and operations1 including autonomy over personnel decisions4 7,g7 ,the ,state entity has taken steps to ensure that all authorizing public chartering agencies implement best practices for charter school authorizing4 7h7 ,local uses of funds ,an eligible applicant receiving a subgrant under this section shall use such funds to carry out activities related to opening a new charter school1 replicating a high-quality charter school1 or expanding a high-quality charter school1 which may include-- 7#a7 supporting the acquisition1 expansion1 or preparation of a charter school building to meet increasing enrollment needs1 including financing the development of a new building and ensuring that a school building complies with applicable statutes and regulations2 7#b7 paying costs associated with hiring additional teachers to serve additional students2 7#c7 providing transportation to students to and from the charter school2 7#d7 providing instructional materials1 implementing teacher and principal professional development programs1 and hiring additional non-teaching staff2 and 7#e7 supporting any necessary activities that assist the charter school in carrying out the purposes of this section1 such as preparing individuals to serve as members of the charter school's board4 7i7 ,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 grant period and at the end of any renewal period1 a report that includes the following3 7#a7 ,the number of students served by each subgrant awarded under this section and1 if applicable1 the number of new students served during each year of the subgrant period4 7#b7 ,the number and amount of subgrants awarded under this section to carry out each of the following3 7,a7 ,the opening of new charter schools4 7,b7 ,the replication of high-quality charter schools4 7,c7 ,the expansion of high-quality charter schools4 7#c7 ,the progress the ,state entity made toward meeting the priorities described in subsection 7g77#b71 as applicable4 7#d7 ,a description of-- 7,a7 how the ,state entity complied with1 and ensured that eligible applicants complied with1 the assurances described in the ,state entity's application2 and 7,b7 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 subgrant funds1 if applicable4 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 use not less than #ej percent to award not less than #c grants1 on a competitive basis1 to eligible entities that have the highest-quality applications approved under subsection 7d7 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 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 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 in accessing 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 including predevelopment costs1 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 such subsection4 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 subsection4 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 the entity's 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 such subsection4 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 and 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 administering1 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 for the second such year2 7iii7 #fj percent for the third such year2 7iv7 #dj percent for the fourth such year2 and 7v7 #bj percent for 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 administering1 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 grant 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 ,state4 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 ,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 ,a ,state that is required under ,state law to provide charter schools in the ,state with access to adequate facility space 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 #hj percent of such funds to award grants in accordance with subsection 7b72 and 7#b7 use the remainder of such funds to-- 7,a7 disseminate technical assistance to ,state entities in awarding subgrants under section #ebjc7;b77#a77;,a72 7,b7 disseminate best practices regarding public charter schools2 7,c7 evaluate the impact of the charter school program carried out under this subpart1 including the impact on student achievement2 and 7,d7 make grants1 on a competitive basis1 for the purpose of carrying out the activities described in section #ebjc7;h71 to eligible applicants that desire to open a charter school1 replicate a high-quality charter school1 or expand a high-quality 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 #ebjc4 7b7 ,grants for the replication and expansion of high-,quality charter schools ,the ,secretary shall make grants1 on a competitive basis1 to eligible entities having applications approved under paragraph 7#b7 to enable such entities to replicate a high-quality charter school or expand a high-quality charter school4 7#a7 ,definition of eligible entity ,for purposes of this subsection1 the term eligible entity means-- 7,a7 a charter management organization that1 at the time of the application1 operates or manages one or more high-quality charter schools2 or 7,b7 a nonprofit organization that oversees and coordinates the activities of a group of such charter management organizations4 7#b7 ,application requirements ,an eligible entity desiring to receive a grant under this subsection 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 ,a description of the eligible entity's objectives for implementing a high-quality charter school program with funding under this subsection1 including a description of the proposed number of high-quality charter schools to be replicated or expanded with funding under this subsection4 7,b7 ,a description of the educational program that the eligible entity will implement in the charter schools that the eligible entity proposes to replicate or expand1 including information on how the program will enable all students to meet challenging ,state academic standards1 the grade levels or ages of students that will be served1 and the instructional practices that will be used4 7,c7 ,a multi-year financial and operating model for the eligible entity1 including a description of how the operation of the charter schools to be replicated or expanded will be sustained after the grant under this subsection has ended4 7,d7 ,a description of how the eligible entity will inform all students in the community1 including students with disabilities1 students who are limited ,english proficient1 and other educationally disadvantaged students1 about the charter schools to be replicated or expanded with funding under this subsection4 7,e7 ,for each charter school currently operated or managed by the eligible entity-- 7i7 student assessment results for all students and for the subgroups of students described in section #aaaa7;b77#b77;,c77v77,,ii72 and 7ii7 attendance and student retention rates for the most recently completed school year and1 if applicable1 the most recent available #d-year adjusted cohort high school graduation rate 7as defined in section #bjj4ai7;b77#a77;i77,a7 of title #cd1 ,code of ,federal ,regulations1 or a successor regulation74 7,f7 ,information on any significant compliance issues encountered1 within the last #c years1 by any school operated or managed by the eligible entity1 including in the areas of student safety and financial management4 7,g7 ,a request and justification for any waivers of ,federal statutory or regulatory requirements that the eligible entity believes are necessary for the successful operation of the charter schools to be opened or expanded with funding under this subsection4 7#c7 ,selection criteria ,the ,secretary shall select eligible entities to receive grants under this subsection1 on the basis of the quality of the applications submitted under paragraph 7#b71 after taking into consideration such factors as-- 7,a7 the degree to which the eligible entity has demonstrated success in increasing academic achievement and attainment for all students attending the charter schools the eligible entity operates or manages2 7,b7 the degree to which the eligible entity has demonstrated success in increasing academic achievement and attainment for the subgroups of students described in section #aaaa7;b77#b77;,c77v77,,ii72 7,c7 the quality of the eligible entity's financial and operating model as described under paragraph 7#b77;,c71 including the quality of the eligible entity's plan for sustaining the operation of the charter schools to be replicated or expanded after the grant under this subsection has ended2 7,d7 a determination that the eligible entity has not operated or managed a significant proportion of charter schools that-- 7i7 have been closed2 7ii7 have had a school charter revoked due to problems with statutory or regulatory compliance2 or 7iii7 have had the school's affiliation with the eligible entity revoked2 and 7,e7 a determination that the eligible entity has not experienced significant problems with statutory or regulatory compliance that could lead to the revocation of a school's charter4 7#d7 ,priority ,in awarding grants under this section1 the ,secretary shall give priority to eligible entities that operate or manage charter schools that1 in the aggregate1 serve students at least #fj percent of whom are eligible for a free or reduced price lunch under the ,richard ,b4 ,russell ,national ,school ,lunch ,act4 7#e7 ,terms and conditions ,except as otherwise provided in this subsection1 grants awarded under subsection 7a77#b77;,d7 and subsection 7b7 shall have the same terms and conditions as grants awarded to ,state entities under section #ebjc4 4 #h4 ,records transfer ,section #ebjh 7#bj ,u4,s4,c4 #gbba;g7 is amended by inserting as quickly as possible and before to the extent practicable4 #i4 ,definitions ,section #ebaj 7#bj ,u4,s4,c4 #gbba;i7 is amended-- 7#a7 by redesignating paragraphs 7#a71 7#b71 and 7#c7 as paragraphs 7#b71 7#e71 and 7#f71 respectively2 7#b7 by redesignating paragraph 7#d7 as paragraph 7#a71 and moving such paragraph so as to precede paragraph 7#b71 as redesignated by paragraph 7#a7 of this section2 7#c7 in paragraph 7#b71 as redesignated by paragraph 7#a7-- 7,a7 in subparagraph 7,g71 by striking 1 and part ,b and inserting 1 the ,americans with ,disabilities ,act of #aiij 7#db ,u4,s4,c4 #abaja et seq471 section #ddd of the ,general ,education ,provisions ,act 7#bj ,u4,s4,c4 #abcb7 7commonly referred to as the ,family ,educational ,rights and ,privacy ,act of #aigd71 and part ,b2 7,b7 by striking subparagraph 7,h7 and inserting the following3 7,h7 is a school to which parents choose to send their children1 and which-- 7i7 admits students on the basis of a lottery1 if more students apply for admission than can be accommodated2 or 7ii7 in the case of a school that has an affiliated charter school 7such as a school that is part of the same network of schools71 automatically enrolls students who are enrolled in the immediate prior grade level of the affiliated charter school and1 for any additional student openings or student openings created through regular attrition in student enrollment in the affiliated charter school and the enrolling school1 admits students on the basis of a lottery as described in clause 7i72 2 7,c7 by striking subparagraph 7,i7 and inserting the following3 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 2 7,d7 in subparagraph 7,k71 by striking and at the end2 7,e7 in subparagraph 7,l71 by striking the period at the end and inserting a semicolon2 and 7,f7 by adding at the end the following3 7,m7 may serve prekindergarten or postsecondary students4 2 7#d7 by inserting after paragraph 7#b71 as redesignated by paragraph 7#a71 the following3 7#c7 ,charter management organization ,the term charter management organization means a nonprofit organization that operates or manages multiple charter schools by centralizing or sharing certain functions or resources4 7#d7 ,charter school support organization ,the term charter school support organization means a nonprofit1 nongovernmental entity that is not an authorized public chartering agency and 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 operating charter schools4 2 7#e7 in paragraph 7#e77;,b71 as redesignated by paragraph 7#a71 by striking under section #ebjc7;d77#c72 and 7#f7 by adding at the end the following3 7#g7 ,expansion of a high-quality charter school ,the term expansion of a high-quality charter school means increasing the enrollment at a high-quality charter school by not less than #ej percent or adding #b or more grades to a high-quality charter 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 growth1 as determined by a ,state2 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 achievement1 including graduation rates where applicable1 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 subgroups 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 ,replication of a high-quality charter school ,the term replication of a high-quality charter school means the opening of a charter school-- 7,a7 under an existing charter or an additional charter1 if permitted by ,state law2 7,b7 based on the model of a high-quality charter school2 and 7,c7 that will be operated or managed by the same nonprofit organization that operates or manages such high-quality charter school under an existing charter4 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 such sums as may be necessary for 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 and 7#c7 by striking the item relating to section #ebjd and inserting the following3 ,sec4 #ebjd4 ,facilities financing assistance4 4 7c7 ,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