[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6204 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 6204

 To require States receiving funds under the Elementary and Secondary 
    Education Act of 1965 to establish policies with respect to the 
                      auditing of charter schools.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 23, 2010

   Ms. Chu introduced the following bill; which was referred to the 
                    Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
 To require States receiving funds under the Elementary and Secondary 
    Education Act of 1965 to establish policies with respect to the 
                      auditing of charter schools.

    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 Good Governance and 
Transparency Act''.

SEC. 2. CHARTER SCHOOL AUDITS.

    Not later than 1 year after the date of the enactment of this Act, 
each State educational agency receiving funds under the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) shall--
            (1) disseminate to each charter school in the State 
        receiving funds under such Act (20 U.S.C. 6301 et seq.) a list 
        of licensed, independent auditors that perform governmental 
        audits;
            (2) develop and implement a policy requiring each such 
        charter school to--
                    (A) maintain its financial records in accordance 
                with generally accepted accounting principles, and 
                applicable State and Federal requirements;
                    (B) be subject to an annual audit by a licensed, 
                independent auditor the results of which are public and 
                filed with--
                            (i) the authorized public chartering agency 
                        that authorized or approved the school; and
                            (ii) the office within the State 
                        educational agency that oversees education 
                        finance; and
                    (C) adopt policies and implement practices to--
                            (i) address all audit findings; and
                            (ii) report to the authorized public 
                        chartering agency that authorized or approved 
                        the school the actions taken by the school to 
                        address the audit findings;
            (3) develop and implement a policy requiring each 
        authorized public chartering agency that authorizes or approves 
        schools described in paragraph (1) to report to the State 
        educational agency--
                    (A) instances of significant audit findings for 
                each such school; and
                    (B) the corresponding actions reported by each such 
                school to address such findings; and
            (4) not later than 9 months after an audit is completed 
        pursuant to paragraph (2)(B), and annually thereafter, prepare 
        and submit to the Secretary of Education an overall summary 
        analysis of the audit results received under such paragraph.

SEC. 3. DEFINITIONS.

    In this Act--
            (1) the term ``authorized public chartering agency'' has 
        the meaning given the term in section 5210 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7721i);
            (2) the term ``charter school'' has the meaning given the 
        term in section 5210 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 7721i), except that meaning shall be 
        applied by substituting ``except as otherwise provided pursuant 
        to section 2, or other State or Federal law'' for ``unless such 
        requirements are specifically waived for the purpose of this 
        program''; and
            (3) 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).
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