[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4330 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 4330

 To provide high-quality public charter school options for students by 
     enabling such public charter schools to expand and replicate.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 16, 2009

Mr. Polis of Colorado (for himself, Ms. Berkley, Mr. Cao, Ms. DeGette, 
 Mr. Ehlers, Mr. Himes, Mr. Hinojosa, Mr. Holt, Mr. Klein of Florida, 
    Ms. Kosmas, Mr. Murphy of Connecticut, Mr. Patrick J. Murphy of 
    Pennsylvania, Ms. Norton, Mr. Paulsen, Mr. Perlmutter, and Mr. 
  Perriello) introduced the following bill; which was referred to the 
                    Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
 To provide high-quality public charter school options for students by 
     enabling such public charter schools to expand and replicate.

    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 ``All Students Achieving through 
Reform Act of 2009'' or ``All-STAR Act of 2009''.

SEC. 2. PURPOSE.

    It is the purpose of this Act to support State efforts to expand 
and replicate high-quality public charter schools to enable such 
schools to serve additional students, with a priority to serve those 
students who attend identified schools or schools with a low graduation 
rate.

SEC. 3. SUPPORT FOR PROVEN CHARTER SCHOOLS AND INCREASING THE SUPPLY OF 
              HIGH-QUALITY CHARTER SCHOOLS.

    (a) Grants Authorized.--From the amounts appropriated under section 
13 for any fiscal year, the Secretary shall award grants, on a 
competitive basis, to eligible entities to make subgrants to eligible 
public charter schools, and carry out the other activities described in 
section 6, to allow such schools to serve additional students through 
the expansion and replication of such schools.
    (b) Amount of Grants.--In determining the grant amount to be 
awarded under this section to an eligible entity, the Secretary shall 
take into consideration--
            (1) the number of eligible public charter schools under the 
        jurisdiction of the eligible entity that are operating, are 
        approved to open, or are likely to open during the duration of 
        the grant;
            (2) the number of seats for new students that could be 
        created in such schools with such grant;
            (3) the number of students eligible for free or reduced 
        price lunches under the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1751 et seq.) who are on waiting lists for 
        charter schools under the jurisdiction of the eligible entity, 
        and other information with respect to charter schools in such 
        jurisdiction that suggest the interest of parents in charter 
        school enrollment for their children;
            (4) the number of students attending identified schools and 
        schools with a low graduation rate in the State where an 
        eligible entity intends to replicate or expand eligible public 
        charter schools; and
            (5) the success of the eligible entity in overseeing public 
        charter schools and the likelihood of continued or increased 
        success because of the grant under this Act.
    (c) Duration of Grants.--Grants under this Act shall be awarded for 
a period of up to 5 years and may be continued for up to a period of 5 
additional years at the discretion of the Secretary.

SEC. 4. APPLICATION REQUIREMENTS.

    (a) Application Requirements.--To be considered for a grant under 
this Act, an eligible entity shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require.
    (b) Contents.--The application described in subsection (a) shall 
include, at a minimum, the following:
            (1) Record of success.--Documentation of the record of 
        success of the eligible entity in overseeing or operating 
        public charter schools, including--
                    (A) the performance of students on the academic 
                assessments described in section 1111(b)(3) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6311(b)(3)) of the State where such schools are 
                located, disaggregated by--
                            (i) economic disadvantage;
                            (ii) race and ethnicity;
                            (iii) disability status; and
                            (iv) level of English proficiency;
                    (B) the status of such schools under section 1116 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 6316) in making adequate yearly progress or 
                as identified schools; and
                    (C) in the case of high schools, the graduation 
                rates and rates of college enrollment and persistence 
                of such schools.
            (2) Plan.--A plan for using funds received under this Act 
        for--
                    (A) replicating and expanding eligible charter 
                schools operated or overseen by the eligible entity;
                    (B) identifying eligible public charter schools, or 
                networks of public charter schools, to receive 
                subgrants under this Act;
                    (C) increasing the number of seats in eligible 
                public charter schools for students attending 
                identified schools and schools with a low graduation 
                rate;
                    (D) ensuring that eligible public charter schools 
                receiving a subgrant under this Act enroll students 
                through a random lottery for admission, unless the 
                charter school is using the subgrant to expand the 
                school to serve additional grades, in which case such 
                school may reserve seats in the additional grades for--
                            (i) each student enrolled in the grade 
                        preceding each such additional grade; and
                            (ii) siblings of students enrolled in the 
                        charter school, if such siblings desire to 
                        enroll in such grade;
                    (E) the manner in which the eligible entity will 
                work with identified schools, and schools with low 
                graduation rates, under its jurisdiction or the 
                jurisdiction where the eligible entity intends to 
                replicate or expand eligible public charter schools, 
                and the local educational agencies serving such schools 
                that are eligible to enroll students in a public 
                charter school receiving a subgrant under this Act, 
                to--
                            (i) engage in community outreach and 
                        communicate with parents of students at 
                        identified schools and schools with low 
                        graduation rates who are eligible to attend a 
                        public charter school receiving a subgrant 
                        under this Act about the opportunity to enroll 
                        in such school, in a manner consistent with 
                        section 444 of the General Education Provisions 
                        Act (commonly known as the ``Family Educational 
                        Rights and Privacy Act of 1974'' (20 U.S.C. 
                        1232g));
                            (ii) notify parents of students at such 
                        schools of the option to transfer to an 
                        eligible public charter school receiving a 
                        subgrant under this Act;
                            (iii) provide information to parents of 
                        students at such schools, in a language that 
                        the parents can understand, to enable the 
                        parents to make informed decisions regarding 
                        such students; and
                            (iv) ensure that a student can continue to 
                        attend an eligible public charter school if the 
                        public charter school the student was attending 
                        in the previous school year is no longer an 
                        eligible public charter school;
                    (F) disseminating to public schools under the 
                jurisdiction of the eligible entity, in a manner 
                consistent with section 444 of the General Education 
                Provisions Act (20 U.S.C. 1232g) (commonly known as the 
                ``Family Educational Rights and Privacy Act of 1974''), 
                the best practices learned by awarding subgrants to 
                eligible public charter schools under this Act, with 
                particular emphasis on the best practices with respect 
                to--
                            (i) focusing on closing the achievement 
                        gap; and
                            (ii) successfully serving the education 
                        needs of low-income students.
            (3) Charter school information.--The number of--
                    (A) eligible public charter schools that are 
                operating in the State in which the eligible entity 
                intends to award subgrants under this Act;
                    (B) eligible public charter schools approved to 
                open in the next school year in such State;
                    (C) eligible public charter schools likely to open 
                during the duration of the grant to the eligible entity 
                in such State;
                    (D) available openings in eligible public charter 
                schools in such State that could be created through the 
                replication or expansion of such schools if the grant 
                is awarded to the eligible entity;
                    (E) students on charter school waiting lists (if 
                such lists are available) in--
                            (i) the State where the eligible entity 
                        intends to replicate or expand eligible public 
                        charter schools; and
                            (ii) in the local educational agency 
                        serving eligible public charter schools that 
                        may receive subgrants under this Act from the 
                        eligible entity;
                    (F) students, and the percentage of students, who 
                attend identified schools and schools with a low 
                graduation rate, in the State where the eligible entity 
                intends to replicate or expand eligible public charter 
                schools; and
                    (G) students, and the percentage of students, in a 
                local educational agency who are attending eligible 
                public charter schools that may receive a subgrant 
                under this Act from the eligible entity.
            (4) Traditional public school information.--In the case of 
        an eligible entity that is a State educational agency or local 
        educational agency, a list of the following schools under the 
        jurisdiction of the eligible entity, including the name and 
        location of each such school, and such demographic and 
        socioeconomic information as the Secretary may require:
                    (A) Identified schools.
                    (B) Schools with a low graduation rate.
            (5) Assurance.--An assurance that the State educational 
        agency will include in the notifications provided under section 
        1116(c)(6) of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 6316(c)(6)) to parents of each student enrolled 
        in a school served by a local educational agency identified for 
        improvement under such section, information (in a language that 
        the parents can understand) about the eligible public charter 
        schools receiving subgrants under this Act.

SEC. 5. PRIORITIES FOR AWARDING GRANTS.

    In awarding grants under this section, the Secretary shall give 
priority to an eligible entity--
            (1) that serves or plans to serve a large percentage of 
        low-income students from identified schools or public schools 
        with a low graduation rate;
            (2) that oversees or plans to oversee one or more eligible 
        public charter schools;
            (3) that is effectively monitoring the academic success of 
        students who attend eligible public charter schools under the 
        jurisdiction of the eligible entity;
            (4) that is under the jurisdiction of, or plans to make 
        subgrants under this Act in, a State that--
                    (A) ensures that all public charter schools 
                (including such schools served by a local educational 
                agency and such schools considered to be a local 
                educational agency under State law) receive, in a 
                timely manner, the Federal, State, and local funds to 
                which such schools are entitled under applicable law; 
                and
                    (B) does not have a cap that restricts the growth 
                of public charter schools in the State;
                    (C) provides funding (such as capital aid 
                distributed through a formula or access to revenue 
                generated bonds) on a per-pupil basis to public charter 
                schools (including funding for school facilities) 
                commensurate with the amount of funding (including 
                funding for school facilities) provided to traditional 
                public schools;
                    (D) supports public charter schools, and has in 
                place innovative policies that support academically 
                successful charter school growth;
                    (E) authorizes public charter schools to offer 
                early childhood education programs, including pre-
                kindergarten, in accordance with State law;
                    (F) ensures that each public charter school in the 
                State--
                            (i) has a high degree of autonomy over the 
                        public charter school's budgets and 
                        expenditures;
                            (ii) has a written performance contract 
                        with an authorized public chartering agency 
                        that ensures that the school has an independent 
                        governing board and such board has a high 
                        degree of autonomy; and
                            (iii) in the case of an eligible public 
                        charter school receiving a subgrant under this 
                        Act, amends its charter to reflect the growth 
                        activities described in section 6;
                    (G) has an appeals process for the denial of an 
                application for a charter school;
                    (H) provides for an 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;
                    (I) allows any public charter school to be a local 
                educational agency in accordance with State law;
                    (J) ensures that each authorized public chartering 
                agency in the State submits reports to the State 
                educational agency (which shall be made public) on the 
                performance of the schools authorized or approved by 
                such public chartering agency, which includes 
                information such as--
                            (i) the authorized public chartering 
                        agency's strategic plan for authorizing or 
                        approving public charter schools and any 
                        progress toward achieving the objectives of the 
                        strategic plan;
                            (ii) the authorized public chartering 
                        agency's policies for authorizing or approving 
                        public charter schools, including whether 
                        (among other factors) such policies examine a 
                        school's--
                                    (I) financial plan and policies, 
                                including financial controls and audit 
                                requirements;
                                    (II) plan for identifying and 
                                successfully (in compliance with 
                                applicable laws and regulations) 
                                serving students with disabilities, 
                                students who are English language 
                                learners, students who are academically 
                                behind their peers, and gifted 
                                students; and
                                    (III) capacity and capability to 
                                successfully launch and subsequently 
                                operate a public charter school, 
                                including the backgrounds of the 
                                individuals applying to the agency to 
                                operate such school;
                            (iii) the authorized public chartering 
                        agency's policies for renewing, not renewing, 
                        and revoking public charter schools' charters;
                            (iv) the authorized public chartering 
                        agency's transparent, timely, and effective 
                        process for closing down academically 
                        unsuccessful charter schools;
                            (v) the academic performance of each 
                        operating public charter school authorized or 
                        approved by the authorized public chartering 
                        agency, including the information reported by 
                        the State in the State annual report card under 
                        section 1111(h)(1)(C) of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 
                        6311(h)(1)(C));
                            (vi) the status of the authorized public 
                        chartering agency's charter school portfolio, 
                        identifying all charter schools in the 
                        categories of approved (but not yet open), 
                        operating, renewed, transferred, revoked, not 
                        renewed, voluntarily closed, or never opened by 
                        such public chartering agency;
                            (vii) the authorizing functions (such as 
                        approval, monitoring, and oversight) provided 
                        by the authorized public chartering agency to 
                        the public charter schools authorized or 
                        approved by such agency, including an itemized 
                        accounting of the actual costs of such 
                        functions; and
                            (viii) the services purchased (such as 
                        accounting, transportation, and data management 
                        and analysis) from the public chartering agency 
                        by the public charter schools authorized or 
                        approved by such agency, including an itemized 
                        accounting of the actual costs of these 
                        services;
                    (K) has or will have (within 1 year after receiving 
                a grant award under this Act) a State policy and 
                process for overseeing and reviewing the effectiveness 
                and quality of the State's authorized public chartering 
                agencies, including--
                            (i) a process for reviewing and evaluating 
                        the performance of the authorized public 
                        chartering agencies in authorizing or approving 
                        charter schools, including a process that 
                        enables the authorized public chartering 
                        agencies to respond to any State concerns or 
                        deficiencies regarding such authorizing or 
                        approving; and
                            (ii) any other necessary policies to ensure 
                        effective charter school authorizing in the 
                        State that are developed in conjunction with 
                        the State's charter school community in 
                        accordance with the principles of quality 
                        charter school authorizing, as determined by 
                        the State in consultation with the charter 
                        school community and stakeholders; and
                    (L) that, in the case of an eligible entity that is 
                a local educational agency under State law, has a 
                cooperative agreement under section 1116(b)(11) of the 
                Elementary and Secondary (20 U.S.C. 6316(b)(11)).

SEC. 6. USE OF FUNDS.

    An eligible entity receiving a grant under this Act may only use 
the grant funds for the following:
            (1) Subgrants.--
                    (A) In general.--To award subgrants, in such amount 
                as the eligible entity determines is appropriate, to 
                eligible public charter schools to replicate or expand 
                such schools.
                    (B) Application.--An eligible public charter school 
                desiring to receive a subgrant under this section shall 
                submit an application to the eligible entity at such 
                time, in such manner, and containing such information 
                as the Secretary may require.
                    (C) Uses of funds.--An eligible public charter 
                school receiving a subgrant under this section shall 
                use the subgrant funds to--
                            (i) provide for increases in each such 
                        school's enrollment of students through the 
                        replication or expansion of such school;
                            (ii) support the physical expansion of 
                        school buildings, including financing the 
                        development of new buildings and campuses to 
                        meet increased enrollment needs;
                            (iii) pay costs associated with hiring 
                        additional teachers to serve additional 
                        students;
                            (iv) provide transportation to additional 
                        students to and from each such school, 
                        including providing transportation to students 
                        who transfer to each such school under a 
                        cooperative agreement established under section 
                        1116(b)(11) of the Elementary and Secondary 
                        Education Act of 1965 (20 U.S.C. 6316(b)(11));
                            (v) purchase instructional materials, 
                        implement teacher and principal professional 
                        development programs, and hire additional non-
                        teaching staff; and
                            (vi) support any necessary activities 
                        associated with each such school serving 
                        additional students.
                    (D) Priority.--In awarding subgrants under this 
                section, an eligible entity shall give priority to each 
                eligible public charter school--
                            (i) that has significantly closed the 
                        achievement gap between the groups of students 
                        described in section 1111(b)(2)(C)(v) of the 
                        Elementary and Secondary Education Act of 1965 
                        (20 U.S.C. 6311(b)(2)(C)(v));
                            (ii) that--
                                    (I) ranks in at least the top 25th 
                                percentile in the State, based on 
                                enrollment, among all students ranked 
                                by the percentage of students in the 
                                proficient or advanced level of 
                                achievement on the State's academic 
                                assessments in mathematics and reading 
                                described in section 1111(b)(3) of the 
                                Elementary and Secondary Act of 1965 
                                (20 U.S.C. 6311(b)(3)), or has an 
                                average student score on an exam 
                                (chosen by the Secretary) that is at 
                                least in the 60th percentile in reading 
                                and at least in the 75th percentile in 
                                math; and
                                    (II) serves a high-need student 
                                population and is eligible to 
                                participate in a schoolwide program 
                                under section 1114 of the Elementary 
                                and Secondary Education Act of 1965 (20 
                                U.S.C. 6314), with additional priority 
                                given to schools that serve a greater 
                                percentage of low-income students, as 
                                compared to other schools that have 
                                submitted an application under this 
                                section, and at least 2 groups of 
                                students described in section 
                                1111(b)(2)(C)(v) of such Act (20 U.S.C. 
                                6311(b)(2)(C)(v)); or
                            (iii) that meets the criteria described in 
                        clause (i) and serves low-income students who 
                        have transferred to such school under a 
                        cooperative agreement described in section 
                        1116(b)(11) (20 U.S.C. 6316(b)(11)).
                    (E) Duration of subgrant.--A subgrant under this 
                section shall be awarded for a period of up to 5 years.
            (2) Facility financing and revolving loan fund.--An 
        eligible entity may use up to 20 percent of the amount of the 
        grant funds received under this Act to establish a reserve 
        account described in section 7 to facilitate public charter 
        school facility acquisition and development by--
                    (A) conducting credit enhancement initiatives (as 
                referred to in subpart 2 of part B of title V of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 7223 et seq.) in support of the development of 
                facilities for eligible public charter schools serving 
                students;
                    (B) establishing a revolving loan fund for use by 
                an eligible public charter school receiving a subgrant 
                under paragraph (1) from the eligible entity under such 
                terms as may be determined by the eligible entity to 
                allow such school to expand to serve additional 
                students;
                    (C) facilitating, through direct expenditure or 
                financing, the acquisition or development of public 
                charter school buildings by the eligible entity or an 
                eligible public charter school receiving a subgrant 
                under paragraph (1) from the eligible entity, which may 
                be used as both permanent locations for eligible public 
                charter schools or incubators for growing charter 
                schools; or
                    (D) establishing a partnership with 1 or more 
                community development financial institutions (as 
                defined in section 103(5) of the Community Development 
                Banking and Financial Institutions Act of 1994 (12 
                U.S.C. 4702(5)) or other mission-based financial 
                institutions to carry out the activities described in 
                subparagraphs (A), (B), and (C).
            (3) Administrative tasks and outreach.--
                    (A) In general.--An eligible entity may use not 
                more than 5 percent of the grant funds awarded under 
                this Act to cover the administrative tasks and outreach 
                associated with carrying out paragraphs (1) and (2).
                    (B) Nonprofit assistance.--In carrying out the 
                administrative tasks and outreach described in 
                subparagraph (A), eligible entities may contract with 
                an organization described in section 501(c)(3) of the 
                Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)) and 
                exempt from tax under section 501(a) of such Code (26 
                U.S.C. 501(a)).

SEC. 7. RESERVE ACCOUNT.

    (a) In General.--To assist eligible entities in the development of 
new public charter school buildings or facilities for eligible public 
charter schools serving students, an eligible entity receiving a grant 
under this Act that the entity has allocated for such purpose may, in 
accordance with State and local law, directly or indirectly, alone or 
in collaboration with others, deposit the funds received under this Act 
in a reserve account established and maintained by the eligible entity 
for that purpose.
    (b) Investment.--Funds received under this Act and deposited in the 
reserve account established under this section shall be invested in 
obligations issued or guaranteed by the United States or a State, or in 
other similarly low-risk securities.
    (c) Reinvestment of Earnings.--Any earnings on funds received under 
this section shall be deposited in the reserve account established 
under this section and used in accordance with the purpose described in 
subsection (a).
    (d) Recovery of Funds.--
            (1) In general.--The Secretary, in accordance with chapter 
        37 of title 31, United States Code, shall collect--
                    (A) all funds in a reserve account established by 
                an eligible entity under this section if the Secretary 
                determines, not earlier than 2 years after the date the 
                eligible entity first received funds under this Act, 
                that the eligible entity has failed to make substantial 
                progress carrying out the purpose described in 
                subsection (a); or
                    (B) all or a portion of the funds in a reserve 
                account established by an eligible entity under this 
                section if the Secretary determines that the eligible 
                entity has permanently ceased to use all or a portion 
                of funds in such account to accomplish the purpose 
                described in subsection (a).
            (2) Exercise of authority.--The Secretary shall not 
        exercise the authority provided in paragraph (1) to collect 
        from any eligible entity any funds that are being properly used 
        to achieve such purpose.
            (3) Procedures.--Sections 451, 452, and 458 of the General 
        Education Provisions Act (20 U.S.C. 1234; 1234a; 1234g) shall 
        apply to the recovery of funds under paragraph (1).
            (4) Construction.--This subsection shall not be construed 
        to impair or affect the authority of the Secretary to recover 
        funds under part D of the General Education Provisions Act (20 
        U.S.C. 1234 et seq.).
    (e) Reallocation.--Any funds collected by the Secretary under 
subsection (d) shall be awarded to eligible entities receiving grants 
under this Act in the next fiscal year.

SEC. 8. FINANCIAL RESPONSIBILITY.

    The financial records of each eligible entity and eligible public 
charter school receiving a grant or subgrant under this Act shall be 
maintained in accordance with generally accepted accounting principles 
and shall be subject to an annual audit by an independent public 
accountant.

SEC. 9. NATIONAL EVALUATION.

    (a) National Evaluation.--From the amounts appropriated under 
section 13, not sooner than 3 years after the date of the enactment of 
this Act, the Secretary shall conduct an independent, comprehensive, 
and scientifically sound evaluation, by grant or contract and using the 
highest quality research design available, of the impact on student 
achievement of the activities carried out under this Act.
    (b) Report.--Not later than 4 years after the date of the enactment 
of this Act, and biannually thereafter, the Secretary shall submit to 
Congress a report on the results of the evaluation described in 
subsection (a).

SEC. 10. REPORTS.

    Each eligible entity receiving a grant under this Act shall prepare 
and submit to the Secretary the following:
            (1) Report.--A report that contains such information as the 
        Secretary may require concerning use of the grant funds by the 
        eligible entity, including the academic achievement of the 
        students attending eligible public charter schools as a result 
        of the grant. Such report shall be submitted before the end of 
        the 4-year period beginning on the date of enactment of this 
        Act and every 2 years thereafter.
            (2) Performance information.--Such performance information 
        as the Secretary may require for the national evaluation 
        conducted under section 10(a).

SEC. 11. REGULATIONS.

    The Secretary is authorized to prescribe regulations necessary to 
implement this Act.

SEC. 12. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Adequate yearly progress.--The term ``adequate yearly 
        progress'' has the meaning given such term in a State's plan 
        under section 1111(b)(2)(C) of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6311(b)(2)).
            (2) Administrative tasks and outreach.--The term 
        ``administrative tasks and outreach'' includes costs and 
        activities associated with--
                    (A) recruiting and selecting students to attend 
                eligible public charter schools;
                    (B) outreach to parents of students enrolled in 
                identified schools or schools with low graduation 
                rates;
                    (C) providing information to such parents and 
                school officials at such schools regarding eligible 
                public charter schools receiving subgrants under this 
                Act; and
                    (D) necessary oversight of the grant program.
            (3) Authorized public chartering agency.--The term 
        ``authorized public chartering agency'' has the meaning given 
        such term under section 5210(4) of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7221i(4)).
            (4) Charter school.--The term ``charter school'' has the 
        meaning given such term under section 5210(1) of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7221i(1)) and 
        shall include dual language charter schools and charter schools 
        providing pre-kindergarten and adult education services.
            (5) Developer.--The term ``developer'' has the meaning 
        given such term under section 5210(2) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7221i(2))).
            (6) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State educational agency;
                    (B) an authorized public chartering agency;
                    (C) a local educational agency that has authorized 
                or is planning to authorize a public charter school; or
                    (D) an organization--
                            (i) described in section 501(c)(3) of the 
                        Internal Revenue Code of 1986 (26 U.S.C. 
                        501(c)(3));
                            (ii) exempt from tax under section 501(a) 
                        of such Code (26 U.S.C. 501(a)); and
                            (iii) that has an organizational mission 
                        and record of success supporting the 
                        replication and expansion of high-quality 
                        charter schools.
            (7) Eligible public charter school.--The term ``eligible 
        public charter school'' means a charter school, including a 
        charter school that is being developed by a developer--
                    (A) that has made adequate yearly progress for the 
                last 2 consecutive school years; and
                    (B) if a high school, that has met or exceeded the 
                most recent graduation rate identified by the State 
                receiving a grant under this Act for the purposes of 
                defining adequate yearly progress in such State under 
                section 1111(b)(2)(C) the Elementary and Secondary Act 
                of 1965 (20 U.S.C. 6311(b)(2)(C)).
            (8) Identified school.--The term ``identified school'' 
        means a school identified for school improvement, corrective 
        action, or restructuring under section 1116(b) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6316(b)).
            (9) Local educational agency.--The term ``local educational 
        agency''--
                    (A) has the meaning given such term in section 9101 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7801); and
                    (B) includes any charter school that is a local 
                educational agency (as defined in subparagraph (A)), as 
                determined by State law.
            (10) Low-income student.--The term ``low-income student'' 
        means a student eligible for free or reduced priced lunches 
        under the Richard B. Russell National School Lunch Act (42 
        U.S.C. 1751 et seq.)
            (11) Graduation rate.--The term ``graduation rate'' has the 
        meaning given the term in section 1111 (b)(2)(C)(vi) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6311(b)(2)(C)(vi)), as clarified in section 200.19(b)(1) of 
        title 34, Code of Federal Regulations.
            (12) School year.--The term ``school year'' has the meaning 
        given such term in section 12(d) of the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1760(d)).
            (13) Secretary.--The tem ``Secretary'' means the Secretary 
        of Education.
            (14) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the United States Virgin Islands, Guam, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, and the 
        Bureau of Indian Affairs for purposes of serving schools funded 
        by the Bureau.
            (15) State educational agency.--The term ``State 
        educational agency'' has the meaning given such term in section 
        9101 of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7801).
            (16) Traditional public school.--The term ``traditional 
        public school'' does not include charter schools as defined 
        under section 5210(1) of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 7221i(1)).

SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this Act 
$500,000,000 for fiscal year 2010 and such sums as may be necessary for 
each of the 5 succeeding fiscal years.
                                 <all>