[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2904 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2904

    To amend the Elementary and Secondary Education Act of 1965 to 
  reauthorize the laws relating to public charter schools to improve 
                 academic achievement of all students.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 28, 2007

 Mr. Boustany (for himself, Mr. McKeon, Mr. Castle, Mr. Hoekstra, Mrs. 
 McCarthy of New York, and Mr. Fortuno) introduced the following bill; 
       which was referred to the Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
    To amend the Elementary and Secondary Education Act of 1965 to 
  reauthorize the laws relating to public charter schools to improve 
                 academic achievement of all students.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Charter School Program Enhancement 
Act of 2007.''.

SEC. 2. CHARTER SCHOOLS PROGRAM.

    (a) Purpose.--Section 5201 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7221) is amended--
            (1) in the matter preceding paragraph (1) by striking ``to 
        increase national understanding of the charter schools model 
        by--'' and inserting ``to support the Nation's charter schools 
        in increasing the academic achievement of students, by--'';
            (2) in paragraph (3)--
                    (A) by inserting before the semicolon the 
                following: ``, especially those students that attend 
                schools that have been identified as in need of 
                improvement''; and
                    (B) by striking ``and'' at the end;
            (3) by redesignating paragraph (4) as (6); and
            (4) by inserting after paragraph (3) the following:
            ``(4) encouraging the replication of successful charter 
        school models;
            ``(5) disseminating charter school innovations throughout 
        public education; and''.
    (b) Program Authorized.--Section 5202 of that Act (20 U.S.C. 7221a) 
is amended--
            (1) in subsection (a) by inserting after ``State 
        educational agencies'' the following: ``and authorized public 
        chartering agencies'';
            (2) in subsection (b) by striking ``5203(c)'' and inserting 
        ``5203(d)'';
            (3) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) by striking ``under this section'' and 
                        inserting ``or authorized public chartering 
                        agencies under this section''; and
                            (ii) by striking ``3 years'' and inserting 
                        ``5 years''; and
                    (B) by amending paragraph (2) to read as follows:
            ``(2) Grants to eligible applicants.--Grants awarded by the 
        Secretary to eligible applicants under subsection (b) or 
        subgrants awarded by State educational agencies or authorized 
        public chartering agencies to eligible applicants under section 
        5204(g)(1) shall be for a period of not more than 3 years. The 
        eligible applicant shall use a portion of that period for 
        planning and program design and a portion for the initial 
        implementation of a charter school.'';
            (4) by striking subsection (d);
            (5) by redesignating subsections (e) and (f) as (d) and 
        (e), respectively;
            (6) in subsection (d) (as so redesignated)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--In awarding grants under this subpart 
        from any funds appropriated under section 5211 (other than 
        funds reserved to carry out section 5205(b)), the Secretary 
        shall--
                    ``(A) exclude applications from a State to the 
                extent the State has laws that meet the criteria 
                described in paragraph (4), unless the application 
                demonstrates that such laws do not stifle growth of 
                charter schools or limit parental options; and
                    ``(B) give priority to States to the extent that 
                the States meet the criteria described in paragraph (2) 
                and one or more of the criteria described in paragraph 
                (3).'';
                    (B) in paragraph (2)--
                            (i) by striking ``paragraph (1)'' and 
                        inserting ``paragraph (1)(B)'';
                            (ii) by striking ``periodic'' and inserting 
                        ``annual''; and
                            (iii) by striking ``, at least once every 
                        five years unless required more frequently by 
                        State law,'';
                    (C) in paragraph (3)--
                            (i) by striking ``paragraph (1)'' and 
                        inserting ``paragraph (1)(B)'';
                            (ii) in subparagraph (A) by inserting after 
                        ``State educational agency'' the following: ``, 
                        authorized public chartering agency,''; and
                            (iii) by striking subparagraphs (B) and (C) 
                        and inserting the following:
                    ``(B) The State provides for one authorized public 
                chartering agency that is not a local educational 
                agency, such as a State chartering board, for each 
                individual or entity seeking to operate a charter 
                school pursuant to such State law.
                    ``(C) The State allows for an appeals process for 
                the denial of an application for a charter school.
                    ``(D) The State ensures that each charter school 
                has a high degree of autonomy over the charter school's 
                budgets and expenditures and an independent governing 
                board that enters into a written performance contract 
                with an authorized public chartering agency.
                    ``(E) The State provides public charter schools 
                with funding commensurate with that provided to other 
                public schools, including provision for school 
                facilities, and ensures that local educational agencies 
                send to public charter schools the Federal, State, and 
                local dollars to which they are entitled in a timely 
                manner.
                    ``(F) The State makes it a priority to create 
                charter schools in districts or geographical areas with 
                large numbers of schools designated as in need of 
                improvement.
                    ``(G) The State demonstrates that a high percentage 
                of its charter school students are either achieving at 
                or above the proficient level or making sufficient 
                progress toward proficient levels on the State reading 
                or language arts, and mathematics, assessments 
                administered under section 1111(b)(3).''; and
                    (D) by adding at the end the following:
            ``(4) Exclusion criteria.--The criteria referred to in 
        paragraph (1)(A) are the following:
                    ``(A) The laws limit the number of charter schools 
                in the State.
                    ``(B) The laws limit the number of new charter 
                schools per year.
                    ``(C) The laws limit the number of start-up charter 
                schools.
                    ``(D) The laws limit the number of charter schools 
                per approved authorizer.
                    ``(E) The laws limit the number or percentages of 
                students who may attend a charter school.
                    ``(F) The laws limit the number or percentages of a 
                State's student population who may attend a charter 
                school.
                    ``(G) The laws limit the percentage of a school 
                district's budget allocated to charter schools.
                    ``(H) The laws limit, in any other way the 
                Secretary considers material, the ability of the State 
                to use charter schools to serve students in the 
                State.''; and
            (7) in subsection (e) (as so redesignated)--
                    (A) by striking ``subpart'' and inserting 
                ``section'';
                    (B) by inserting after ``State educational agency'' 
                the following: ``or authorized public chartering 
                agency'';
                    (C) by striking ``take into consideration'' and 
                inserting ``consider''; and
                    (D) by inserting before the period at the end the 
                following: ``and the number of subgrants the Secretary 
                believes the State educational agency or authorized 
                public chartering agency would be able to make''.
    (c) Applications.--Section 5203 of that Act (20 U.S.C. 7221b) is 
amended--
            (1) in subsection (a) by striking ``may require'' and 
        inserting ``may reasonably require'';
            (2) in subsection (b)--
                    (A) in paragraph (1) by striking ``and'' at the 
                end;
                    (B) in paragraph (2) by striking ``and'' at the 
                end;
                    (C) by redesignating paragraph (3) as (4);
                    (D) by inserting after paragraph (2) the following:
            ``(3) describe the criteria that the eligible entity will 
        use to award subgrants to eligible applicants to ensure high-
        quality charter schools; and''; and
                    (E) in paragraph (4) (as so redesignated)--
                            (i) in subparagraph (F) by striking 
                        ``authorized public chartering agency will 
                        provide for continued operation'' and inserting 
                        ``State educational agency will provide for 
                        continued funding'';
                            (ii) by redesignating subparagraphs (G) 
                        through (M), and subparagraph (N), as (H) 
                        through (N), and (Q), respectively;
                            (iii) by inserting after subparagraph (F) 
                        the following:
                    ``(G) a description of how the State educational 
                agency will ensure that the creation of charter schools 
                are targeted toward those districts or geographical 
                areas with a large number of schools designated as in 
                need of improvement;'';
                            (iv) in subparagraph (I) (as so 
                        redesignated) by inserting before the semicolon 
                        at the end the following: ``and how such funds 
                        will be used for planning and program design 
                        and for the initial implementation of a charter 
                        school'';
                            (v) in subparagraph (J)(ii) (as so 
                        redesignated) by inserting before the semicolon 
                        at the end the following: ``, including a 
                        description of how the eligible applicant will 
                        hold a lottery if the number of applicants 
                        exceeds the number of seats available'';
                            (vi) in subparagraph (N) (as so 
                        redesignated)--
                                    (I) by striking ``under section 
                                5202(c)(2)(C)'' and inserting ``as 
                                described in section 5204(g)(6)''; and
                                    (II) by striking ``and'' at the 
                                end; and
                            (vii) by inserting after subparagraph (N) 
                        (as so redesignated) the following:
                    ``(O) information demonstrating support of the 
                application from the State's charter school community;
                    ``(P) a description of how the State encourages the 
                inclusion, on independent governing boards, including 
                those overseeing multi-campus charters, individuals 
                with a diversity of skills, including business 
                management, financial management, real estate finance, 
                and curriculum and instruction; and'';
            (3) by redesignating subsections (c) and (d) as (d) and 
        (e), respectively;
            (4) by inserting after subsection (b) the following:
    ``(c) Authorized Public Chartering Agency's Application.--
            ``(1) In general.--Each authorized public chartering agency 
        desiring a grant under section 5202(a) shall submit an 
        application to the Secretary at such time, in such manner, and 
        accompanied by such information as the Secretary may reasonably 
        require.
            ``(2) Contents.--Each application submitted pursuant to 
        paragraph (1) shall contain the information and assurances 
        described in subsection (b), as appropriately applied to 
        authorized public chartering agencies.''; and
            (5) in subsection (e) (as so redesignated)--
                    (A) in the matter preceding paragraph (1) by 
                striking ``subsection (c)'' and inserting ``subsection 
                (d)'';
                    (B) in paragraph (1)--
                            (i) by striking ``(A) through (N)'' and 
                        inserting ``(A) through (Q)''; and
                            (ii) by striking ``(J), (K), and (N)'' and 
                        inserting ``(K), (L), and (Q)''; and
                    (C) in paragraph (2)(B) by striking ``5204(e)'' and 
                inserting ``5204(f)''.
    (d) Administration.--Section 5204 of that Act (20 U.S.C. 7221c) is 
amended--
            (1) in subsection (a)(7) by striking ``(f)(6)(B)'' and 
        inserting ``(g)(6)(B)'';
            (2) by striking subsection (g);
            (3) by redesignating subsections (b) through (f) as (c) 
        through (g), respectively;
            (4) by inserting after subsection (a) the following:
    ``(b) Selection Criteria for Authorized Public Chartering 
Agencies.--
            ``(1) In general.--The Secretary shall award grants to 
        authorized public chartering agencies under this subpart on the 
        basis of the quality of the applications submitted under 
        section 5203(c), after considering such factors as--
                    ``(A) the contribution that a proposed grant will 
                make to assisting educationally disadvantaged and other 
                students in meeting State academic content standards 
                and State student academic achievement standards;
                    ``(B) the degree of flexibility afforded by the 
                State educational agency to charter schools under the 
                State's charter school law;
                    ``(C) the ambitiousness of the objectives for the 
                proposed project;
                    ``(D) the quality of the strategy for assessing 
                achievement of those objectives;
                    ``(E) the likelihood that the proposed grant will 
                meet those objectives and improve educational results 
                for students;
                    ``(F) the number of high-quality charter schools 
                created under this subpart by the agency; and
                    ``(G) in the case of an authorized public 
                chartering agency that proposes to use grant funds to 
                support dissemination activities under subsection 
                (g)(6)(B), the quality of those activities and the 
                likelihood that those activities will improve student 
                academic achievement.
            ``(2) Requirements.--The Secretary may award a grant to an 
        authorized public chartering agency only if the Secretary 
        determines that--
                    ``(A) the agency has the capacity to make subgrants 
                effectively; and
                    ``(B) making the grant would benefit charter 
                schools in the State.'';
            (5) in subsection (c) (as so redesignated)----
                    (A) in the matter preceding paragraph (1) by 
                striking ``5203(c)'' and inserting ``5203(d)'';
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) the objectives for the charter school and a 
        description of how such objectives will be fulfilled, including 
        steps taken by the charter school to include teachers, parents, 
        and communities in fulfilling the objectives;''; and
                    (C) in paragraph (7) by striking ``(f)(6)(B)'' and 
                inserting ``(g)(6)(B)'';
            (6) in subsection (d) (as so redesignated) by inserting 
        after ``State educational agency'' the following: ``or 
        authorized public chartering agency'';
            (7) in subsection (e) (as so redesignated)--
                    (A) in the matter preceding paragraph (1) by 
                inserting after ``State educational agency'' the 
                following: ``or authorized public chartering agency''; 
                and
                    (B) in paragraph (2) by striking ``, such as 
                approaches designed to reduce school size'';
            (8) in subsection (g) (as so redesignated)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) State educational agencies and authorized public 
        chartering agencies.--Each State educational agency or 
        authorized public chartering agency receiving a grant under 
        this subpart shall use such grant funds to award subgrants to 
        one or more eligible applicants in the State to enable such 
        applicant to plan and implement a charter school in accordance 
        with this subpart, provided that most of the funds be awarded 
        to charter school developers, equitably distributed among 
        public nonprofit organizations, private nonprofit 
        organizations, and groups of teachers, administrators, parents, 
        and others. A State educational agency or authorized public 
        chartering agency may vary the dollar amount per grant that it 
        awards to eligible applicants based upon a variety of factors, 
        including whether the eligible applicant is a start-up charter 
        school or a conversion charter school and whether the eligible 
        applicant is creating a charter school under a new charter or 
        an existing charter.'';
                    (B) in paragraph (2) by striking ``or a State 
                educational agency'' and inserting ``, or from a State 
                educational agency or authorized public chartering 
                agency,'';
                    (C) in paragraph (3)--
                            (i) in subparagraph (A) by striking ``and'' 
                        at the end;
                            (ii) in subparagraph (B) by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(C) dissemination activities as described in 
                paragraphs (2) and (6).'';
                    (D) in paragraph (4) by amending subparagraph (A) 
                to read as follows:
                    ``(A) State educational agency and authorized 
                public chartering agency administrative expenses.--Each 
                State educational agency or authorized public 
                chartering agency receiving a grant pursuant to this 
                subpart may reserve not more than 5 percent of such 
                grant funds for administrative expenses associated with 
                the charter school grant program assisted under this 
                subpart.''; and
                    (E) in paragraph (6)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``In general'' and 
                                inserting ``Charter school''; and
                                    (II) by striking ``whether or not 
                                the charter school has applied for or 
                                received funds under this subpart for 
                                planning, program design, or 
                                implementation,''; and
                            (ii) by adding at the end the following:
                    ``(C) State dissemination activities.--
                            ``(i) General rule.--A State educational 
                        agency or authorized public chartering agency 
                        may use funds authorized to be reserved for 
                        dissemination activities under paragraph (3) to 
                        make subgrants for dissemination activities, 
                        described in subparagraph (B), for charter 
                        schools described in subparagraph (A), to--
                                    ``(I) eligible applicants; or
                                    ``(II) non-profit organizations 
                                that have demonstrated knowledge of, 
                                and experience with, the activities 
                                described in subparagraph (B).
                            ``(ii) Special rule.--A State educational 
                        agency may also use funds authorized to be 
                        reserved for dissemination under paragraph (3) 
                        to make a subgrant, for dissemination 
                        activities described in subparagraph (B), to an 
                        authorized public chartering agency that does 
                        not receive a direct grant from the Secretary 
                        under section 5202.''.
    (e) National Activities.--Section 5205 of that Act (20 U.S.C. 
7221d) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1) by inserting after ``State 
                educational agencies'' the following: ``or authorized 
                public chartering agencies'';
                    (B) in paragraph (3)(E) by inserting before the 
                period at the end the following: ``, authorized public 
                chartering agencies, and charter support 
                organizations''; and
                    (C) by striking paragraph (5) and inserting the 
                following:
            ``(6) To provide technical assistance to charter schools on 
        how to meet the requirements of part B of the Individuals with 
        Disabilities Education Act.'';
            (2) in subsection (b)--
                    (A) in paragraph (2)(A) by striking ``subsection'' 
                and all that follows through ``the Secretary shall'' 
                and inserting ``subpart, the Secretary may'';
                    (B) in paragraph (4) by striking subparagraph (B) 
                and inserting the following:
                    ``(B) Eligibility.--To be eligible to receive a 
                grant under this subsection, a State shall--
                            ``(i) establish or enhance, and administer, 
                        a per-pupil facilities aid program for charter 
                        schools in the State, that is specified in 
                        State law and provides annual financing, on a 
                        per-pupil basis, for charter school facilities; 
                        or
                            ``(ii) provide funding for operations, 
                        capital costs, and interest for charter schools 
                        in the State in an amount that, on a per-pupil 
                        basis, is commensurate with what it provides 
                        for those costs to public elementary and 
                        secondary schools in the State.'';
                    (C) in paragraph (6) by striking ``(A), (B), and 
                (C) of paragraph (3), of section 5202(e)'' and 
                inserting ``(A) through (G) of paragraph (3), of 
                section 5202(d)''; and
                    (D) by adding at the end the following:
            ``(7) Evaluations.--The Secretary shall carry out 
        evaluations of, technical assistance for, and information 
        dissemination regarding, the per-pupil facilities aid programs. 
        In carrying out the evaluations, the Secretary may carry out 
        one or more evaluations of State programs assisted under this 
        subsection, which shall, at a minimum, address--
                    ``(A) how, and the extent to which, the programs 
                promote educational equity and excellence; and
                    ``(B) the extent to which charter schools supported 
                through the programs are--
                            ``(i) held accountable to the public;
                            ``(ii) effective in improving public 
                        education; and
                            ``(iii) open and accessible to all 
                        students.''; and
            (3) by adding at the end the following:
    ``(d) Dissemination Grants.--
            ``(1) In general.--The Secretary may reserve not more than 
        7 percent of the funds appropriated under section 5211 for any 
        fiscal year to make grants, on a competitive basis, to State 
        educational agencies, authorized public chartering agencies, 
        local educational agencies, nonprofit organizations, or a 
        consortium of charter schools, in any combination, for multi-
        State dissemination activities designed to increase the number 
        of high-quality charter schools nationally by carrying out such 
        activities as--
                    ``(A) assisting others with the planning and start-
                up of one or more new public schools, including charter 
                schools;
                    ``(B) developing partnerships designed to improve 
                student academic achievement;
                    ``(C) developing curriculum materials, assessments, 
                and other materials that promote increased student 
                achievement and are based on successful practices 
                within charter schools;
                    ``(D) conducting evaluations and developing 
                materials that document successful practices at charter 
                schools and that are designed to improve student 
                performance in other schools; and
                    ``(E) training personnel of the adopting local 
                educational agencies, charter schools, authorized 
                public chartering agencies, and charter support 
                organizations in the innovative practice developed at 
                the original site.
            ``(2) Application.--An eligible entity desiring a grant 
        under paragraph (1) shall submit an application to the 
        Secretary at such time, in such manner, and containing such 
        information as the Secretary may reasonably require.''.
    (f) Definitions.--Section 5210 of that Act (20 U.S.C. 7221i) is 
amended--
            (1) in paragraph (1)--
                    (A) by striking subparagraph (L);
                    (B) by redesignating subparagraphs (C) through (K) 
                as (D) through (L);
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) has an independent governing board that 
                enters into a performance-based agreement--
                            ``(i) that encompasses one or more campuses 
                        with an authorized public chartering agency in 
                        the State;
                            ``(ii) that includes a description of how 
                        student performance will be measured in charter 
                        schools pursuant to State assessments that are 
                        required of other schools and pursuant to any 
                        other assessments or evaluations mutually 
                        agreeable to the authorized public chartering 
                        agency and the charter school and criteria for 
                        renewal or revocation;'';
                    (D) in subparagraph (I) (as so redesignated) by 
                inserting before the semicolon at the end the 
                following: ``, and does not give admissions preference 
                to any student on the basis of prior academic 
                achievement'';
                    (E) in subparagraph (K) (as so redesignated) by 
                adding ``and'' at the end; and
                    (F) in subparagraph (L) (as so redesignated) by 
                striking ``; and'' and inserting a period;
            (2) by amending paragraph (3) to read as follows:
            ``(3) Eligible applicant.--The term `eligible applicant' 
        means--
                    ``(A) a developer that has applied to an authorized 
                public chartering authority to operate a charter school 
                and provided adequate and timely notice and a copy of 
                the application to that authority under section 
                5203(e)(3); or
                    ``(B) a charter support organization.'';
            (3) in paragraph (4) by striking ``or other public entity'' 
        and inserting ``other public entity, private nonprofit entity, 
        or a consortium of entities''; and
            (4) by adding at the end the following:
            ``(5) Charter support organization.--The term `charter 
        support organization' means a public or private nonprofit 
        organization that provides assistance to developers during the 
        planning, program design, and initial implementation of a 
        charter school.''.
    (g) Authorization of Appropriations.--Section 5211 of that Act (20 
U.S.C. 7221j) is amended--
            (1) in subsection (a) by striking ``2002'' and inserting 
        ``2008''; and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Considerations.--In allocating funds under this subpart for 
any fiscal year, the Secretary shall consider the relative need between 
the programs under section 5202 and section 5205(b) and (d) and the 
quality of the applications submitted.''.

SEC. 3. CHARTER SCHOOL CREDIT ENHANCEMENT PROGRAM.

    (a) Grants to Eligible Entities.--Section 5222(a) of that Act (20 
U.S.C. 7223a(a)) is amended by striking ``The Secretary shall use 100 
percent of the amount available'' and inserting ``After reserving any 
funds as necessary for grant evaluation or administration consistent 
with applicable provisions (including section 9601(a) of this Act and 
section 402(b)(1) of the Department of Education Organization Act (20 
U.S.C. 3462(b)(1))), the Secretary shall use the amounts available''.
    (b) Applications.--Section 5223(b)(4) of that Act (20 U.S.C. 
7223b(b)(4)) is amended by inserting before the semicolon at the end 
the following: ``, including how the applicant will offer a combination 
of rates and terms more favorable than those that a charter school 
could receive without assistance under this subpart''.
    (c) Charter School Objectives.--Section 5224(2) of that Act (20 
U.S.C. 7223c(2)) is amended by inserting after ``construction'' the 
following: ``(including predevelopment costs, even in rare instances 
where construction or renovation cannot proceed as a result of pre-
development findings)''.
    (d) Reserve Account.--Section 5225(a) of that Act (20 U.S.C. 
7223d(a)) is amended by adding at the end the following:
            ``(5) Making limited loans to charter schools, under such 
        terms and conditions as the Secretary may prescribe.''.
    (e) Limitation on Administrative Costs.--Section 5226 of that Act 
(20 U.S.C. 7223e) is amended by striking ``0.25 percent of the funds 
received'' and inserting ``two percent of the funds received for any 
fiscal year''.
    (f) Authorization of Appropriations.--Section 5231 of that Act (20 
U.S.C. 7223j) is amended by striking ``for fiscal year 2002'' and all 
that follows through the period at the end and inserting ``for fiscal 
year 2008 and such sums as may be necessary for each of the five 
succeeding fiscal years.''.
                                 <all>