1.Short title; table of contents
(a)This Act may be cited as the
21st Century Charter School
Act
.
(b)The table of contents of this Act is as
follows:
Sec. 1. Short title;
table of contents.
Sec. 2. Purpose.
Sec. 3. Program authorized.
Sec. 4. Applications.
Sec. 5. Administration.
Sec. 6. National activities.
Sec. 7. Federal formula allocation.
Sec. 8. Credit enhancement.
Sec. 9. Definitions.
Sec. 10. Authorization of appropriations.
Sec. 11. Reorganization.
Sec. 12. Conforming amendments.
2.Section 5201 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7221) is amended—
(1)in paragraph (3), by striking
and
;
(2)by redesignating paragraph (4) as paragraph
(6);
(3)by inserting after paragraph (3) the
following:
(4)encouraging the growth of high-quality
charter schools through the replication and expansion of successful charter
school models;
(5)disseminating charter school innovations
throughout public education; and
;
and
(4)in paragraph (6) (as redesignated by
paragraph (2))—
(A)by striking more nearly
;
and
(B)by striking have typically
provided
and inserting provide
.
3.Section 5202 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7221a) is amended—
(1)in subsection (a)—
(A)by striking State educational
agencies
and inserting eligible entities
;
(B)by striking such agencies
and inserting such entities
; and
(C)by striking this subpart
and
inserting section 5204
;
(2)in subsection (b)—
(A)by striking Special rule.—If
and
inserting the following:
Special rule; reserve
account.—(1)If
;
(B)by striking a State educational
agency
and inserting an eligible entity
;
(C)by striking subpart
and
inserting section
; and
(D)by adding at the end the following:
(2)
(A)In order to assist eligible entities to
accomplish the purposes described in section 5201, an eligible entity receiving
a grant under this section shall, directly or indirectly, alone or in
collaboration with others, deposit the funds received under this section in a
reserve account established and maintained by the eligible entity for this
purpose, in accordance with State and local law.
(B)Funds received under this section that are
deposited in the reserve account established under subparagraph (A), shall be
invested, to the extent practicable, in obligations issued or guaranteed by the
United States or a State, or in other similarly low risk securities, in the
same manner as funds of a State are invested under chapter 65 of title 31,
United States Code.
(C)Any earnings on funds received under this
section shall be deposited in a reserve account and used in support of public
charter schools in accordance with activities authorized under this
Act.
;
(3)in subsection (c)—
(A)by striking subpart
each
place the term occurs and inserting section
;
(B)in paragraph (1)—
(i)by striking State educational
agencies
and inserting eligible entities
; and
(ii)by striking not more than 3
years
and inserting not more than 5 years
; and
(C)in paragraph (2)—
(i)by striking State educational
agencies
and inserting eligible entities
; and
(ii)by striking not more than 3
years
and all that follows through the period at the end and inserting
not more than 5 years. An eligible applicant may use a portion of the
grant period for planning and program design.
;
(4)by striking subsection (d) and inserting
the following:
(d)Charter schools with multiple
campusesThe Secretary shall
allow an eligible entity to award multiple subgrants under section 5204(f)(1)
to an eligible applicant in order to support multiple campuses of a charter
school.
;
(5)in subsection (e)—
(A)by striking paragraph (1) and inserting the
following:
(1)In awarding grants under this section for
fiscal year 2011 or any succeeding fiscal year from any funds appropriated
under section 5212 (other than funds reserved to carry out section 5205(c)),
the Secretary shall give priority to an eligible entity to the extent that the
State in which the eligible entity proposes to carry out the activities under
the grant meets the criteria described in paragraph (2) and one or more of the
criteria described in subparagraphs (A) through (H) of paragraph
(3).
;
(B)in paragraph (3)—
(i)in subparagraph (A)—
(I)by striking a State educational
agency
and inserting an eligible entity
; and
(II)by striking subpart
and
inserting section
;
(ii)by redesignating subparagraph (C) as
subparagraph (D);
(iii)in subparagraph (B)—
(I)by redesignating clause (ii) as
subparagraph (C), and aligning the margins of such subparagraph with the
margins of subparagraph (A);
(II)by striking The State
and
all that follows through provides
and inserting The State
provides
; and
(III)by striking law; or
and
inserting law.
;
(iv)in subparagraph (C) (as redesignated by
clause (iii)(I)), by striking in the case
and all that follows
through allows
and inserting The State
allows
;
(v)in subparagraph (D) (as redesignated by
clause (ii))—
(I)by striking school has a
and
inserting “school has—
(i)a
;
(II)by striking expenditures.
and inserting expenditures; and
; and
(III)by adding at the end the following:
(iii)an independent governing board that enters
into a written performance contract with an authorized public chartering
agency.
;
and
(vi)by adding at the end the following:
(E)The State—
(i)provides public charter schools with
funding commensurate with the funding provided to other public schools,
including capital or facilities aid distributed through a formula or revenue
generated by bonds; and
(ii)ensures that the State and local
educational agencies provide public charter schools with the Federal, State,
and local funds to which the public charter schools are entitled in a timely
manner.
(F)The State makes it a priority to create
charter schools in local educational agencies with large numbers of schools
designated as in need of improvement, corrective action, or restructuring under
paragraph (1), (7), or (8) of section 1116(b).
(G)The State has developed a transparent
authorizer accreditation, training, or review process for evaluating the
effectiveness and quality of the State’s authorized public chartering agencies,
or each authorized public chartering agency in the State has implemented such a
process, including—
(i)a process for reviewing and evaluating the
performance of the authorized public chartering agencies in the State in
authorizing or approving public 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 and in accordance with
the principles of high quality charter school authorizing, as determined by the
State in consultation with the charter school community and
stakeholders.
(H)The State does not have a cap on charter
schools that constrains growth and limits parental options in an unreasonable
manner.
;
and
(6)in subsection (f)—
(A)by striking subpart to a State
educational agency
and inserting section to an eligible
entity
; and
(B)by striking in the State
and
inserting in the State where the grant activities will be carried
out
.
4.Section 5203 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7221b) is amended—
(1)by striking this subpart
each place the term appears and inserting section 5202
;
(2)in subsection (a), by striking
state
agencies.—Each State educational agency
and inserting
eligible
entities.—An eligible entity
;
(3)in subsection (b)—
(A)in the subsection heading, by striking
a state educational
agency
and inserting an eligible
entity
;
(B)in paragraph (1)—
(i)by striking State educational
agency's
each place the term appears and inserting eligible
entity's
; and
(ii)by striking State educational
agency
and inserting eligible entity
;
(C)in paragraph (2)—
(i)in the matter preceding subparagraph (A),
by striking describe how the State educational agency—
and
inserting describe the State's level of participation and involvement in
the grant, including a letter from the State describing how the
State—
;
(ii)in the matter preceding clause (i) of
subparagraph (A), by striking in the State
and inserting
area served by the grant
;
(iii)in subparagraph (B)—
(I)by striking in the State
and
inserting in the area served by the grant
; and
(II)by striking and
after the
semicolon;
(iv)in subparagraph (C), by striking to
each local
and all that follows through ; and
and
inserting related to such areas as budgeting, scheduling, staffing, and
instruction to public schools, including public charter schools in the
State;
; and
(v)by adding at the end the following:
(D)will ensure the proper handling and
management of Federal funds; and
(E)will oversee and hold accountable the
authorized public chartering agencies in the State, including through a
transparent authorizer accreditation, training, and review process described in
subsection
(e)(3)(G);
;
(D)by redesignating paragraph (3) as paragraph
(4);
(E)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;
;
(F)in paragraph (4) (as redesignated by
subparagraph (D))—
(i)in the matter preceding subparagraph (A),
by striking State educational agency
each place the term appears
and inserting eligible entity
;
(ii)in subparagraph (A)—
(I)by redesignating clauses (ii) and (iii) as
clauses (iii) and (iv), respectively; and
(II)by inserting after clause (i) the
following:
(ii)the charter school's plan for using
academic assessments to measure and report student academic
progress;
;
(iii)in subparagraph (B), by striking
managed;
and inserting the
following:
managed,
including—(i)the charter school's financial plan and
policies, including financial controls and annual audit requirements;
(ii)a clear description of the roles and
responsibilities for the charter school's governing board, leadership, and
management team, and any other organizations critical to the charter school's
operations or success;
(iii)plans for recruiting and developing the
charter school's leadership and staff;
(iv)the charter school’s leadership and teacher
employment policies, including performance evaluation plans;
(v)the proposed governing bylaws of the
charter school; and
(vi)a detailed charter school start-up plan,
that identifies tasks, timelines, and responsible
parties;
;
(iv)in subparagraph (E), by inserting ,
including documentation of the parents' and community members' support for the
school
before the semicolon;
(v)in subparagraph (F), by striking a
description of how
and inserting an assurance from the
authorized public chartering agency that
;
(vi)in subparagraph (H), by inserting
and how such funds will be used for planning, program design, and the
initial implementation of a charter school
before the semicolon at the
end;
(vii)in subparagraph (I)(ii), by inserting
, including through a lottery process if the number of applicants
exceeds the number of seats available at the charter school
before the
semicolon;
(viii)in subparagraphs (J) and (K), by striking
State educational agency
each place the term appears and
inserting eligible entity
;
(ix)by striking subparagraph (M);
(x)by redesignating subparagraph (N) as
subparagraph (O);
(xi)by inserting after subparagraph (L) the
following:
(M)demonstration of support for the charter
school from the State’s charter school community;
(N)a description of how the independent
governing board of the charter school, including a board overseeing
multi-campus charters, is encouraged to include individuals with a diversity of
skills, including business management, financial management, real estate
finance, and curriculum and instruction;
and
;
and
(xii)in subparagraph (O) (as redesignated by
clause (x))—
(I)by striking State educational
agency
and inserting eligible entity
; and
(II)by striking the period at the end and
inserting ; and
; and
(G)by adding at the end the following:
(5)in the case of an eligible entity that is
an authorized public chartering agency—
(A)describe such eligible entity's strategic
goal for chartering schools and progress towards that goal; and
(B)provide an assurance that the eligible
entity will annually file a plan with the State in which the eligible entity is
located that covers such topics necessary for effective charter school
oversight, including, at a minimum—
(i)the academic and financial performance of
all operating public charter schools overseen by the eligible entity, according
to the performance expectations for each public charter school set forth in the
school's contract;
(ii)the status of the eligible entity's public
charter school portfolio, identifying all public charter schools in each of the
following categories: approved (but not yet open), operating, renewed,
transferred, revoked, not renewed, voluntarily closed, or never opened;
(iii)the authorizing functions provided by the
eligible entity to the public charter schools the eligible entity oversees,
including the eligible entity's operating costs and expenses detailed in annual
audited financial statements that conform with generally accepted accounting
principles; and
(iv)the services purchased from the eligible
entity by the public charter schools overseen by the eligible entity, including
an itemized accounting of the actual costs of these
services.
;
and
(4)in subsection (d)—
(A)in paragraph (1)—
(i)by striking (A) through (N)
and inserting (A) through (O)
;
(ii)by striking and (N)
and
inserting and (O)
; and
(iii)by striking State educational
agency
and inserting eligible entity
; and
(B)in paragraph (2)—
(i)in the matter preceding subparagraph (A),
by striking State educational agency
and inserting
eligible entity
; and
(ii)in paragraph (3)—
(I)by striking State educational
agency
and inserting eligible entity
; and
(II)by striking subgrant if
and
all that follows through the period and inserting
subgrant.
.
5.Section 5204 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7221c) is amended—
(1)in subsection (a)—
(A)in the subsection heading, by striking
State educational
agencies
and inserting eligible
entities
;
(B)by striking this subpart
each place the term appears and inserting section 5202
;
(C)in the matter preceding paragraph (1), by
striking State educational agencies
and inserting
eligible entities
;
(D)in paragraph (1), by inserting ,
including efforts at closing the achievement gap by meeting the annual
objectives described in section 1111(b)(2)(C)(v)
before the
semicolon;
(E)in paragraph (2), by inserting and
autonomy
after flexibility
;
(F)in paragraph (5), by inserting
and
after the semicolon;
(G)in paragraph (6), by striking ;
and
and inserting a period; and
(H)by striking paragraph (7);
(2)in subsection (b)—
(A)by striking this subpart
and
inserting section 5202
; and
(B)by striking paragraph (7);
(3)in subsection (c)—
(A)by striking this subpart
and
inserting section 5202
; and
(B)by striking State educational
agency
and inserting eligible entity
;
(4)in subsection (d)—
(A)in the matter preceding paragraph
(1)—
(i)by striking State educational agency
receiving a grant under this subpart
and inserting eligible
entity receiving a grant under section 5202
; and
(ii)by striking this subpart in
and inserting such section in
; and
(B)in paragraph (2), by inserting or
use non-traditional curricula
before the period at the end;
(5)in subsection (e)—
(A)in the matter preceding subparagraph (1),
by striking 5210(1)
and inserting 5211(1)
;
and
(B)in paragraph (1), by striking this
subpart
and inserting section 5203
;
(6)in subsection (f)—
(A)in paragraph (1)—
(i)in the paragraph heading, by striking
State educational
agencies.—Each State educational agency
and inserting
the following: “eligible
entities.—
(A)Each eligible
entity
;
(ii)by striking under this
subpart
and inserting under section 5202
;
(iii)by inserting , including a new
campus or expansion of an existing charter school,
after charter
school
;
(iv)by striking in the State
and
inserting in the area to be served by the grant
; and
(v)by striking except that
and
all that follows through paragraph (6).
and inserting a
period;
(B)by striking paragraph (6);
(C)by redesignating paragraphs (2) through (5)
as paragraphs (4) through (7), respectively;
(D)by inserting after paragraph (1) the
following:
(2)Charter school developersIn awarding subgrants under this section,
an eligible entity shall ensure that—
(A)most of the subgrant funds are awarded to
eligible applicants described in section 5211(3)(A); and
(B)subgrants are awarded, to the extent
practicable, to a mix of such eligible applicants.
(3)An eligible entity may vary the amount of a
subgrant under this section based upon a variety of factors, including—
(A)whether the eligible applicant is a
start-up charter school or a conversion charter school (as defined by the
eligible entity); and
(B)whether the eligible applicant is creating
a charter school under a new charter or an existing
charter.
;
(E)in paragraph (4) (as redesignated by
subparagraph (C))—
(i)by striking a State educational
agency
and inserting an eligible entity
; and
(ii)by striking , or to disseminate
information about the charter school and successful practices in the charter
school,
;
(F)in paragraph (5) (as redesignated by
subparagraph (C))—
(i)in the matter preceding subparagraph (A),
by striking this subpart
and inserting section
5202
;
(ii)in subparagraph (A)(ii), by striking
and
after the semicolon;
(iii)in subparagraph (B)(iv), by striking the
period and inserting ; and
; and
(iv)by adding at the end the following:
(C)providing assistance, through activities
described in section 5205(b)(4), in implementing charter school innovations and
disseminating information regarding such
innovations.
;
(G)in paragraph (6)(A) (as redesignated by
subparagraph (C))—
(i)in the subparagraph heading, by striking
State educational
agency
and inserting eligible entity
;
(ii)by striking State educational
agency
and inserting eligible entity
;
(iii)by striking pursuant to this
subpart
and inserting pursuant to section 5202
;
(iv)by striking this subpart
and
inserting such section
; and
(v)by adding at the end the following:
An eligible entity may use a portion of the reserved funds to improve
the charter school authorizing policies and practices of the area served by the
eligible entity, which may include the approval, monitoring, and renewal of
charter schools.
; and
(H)in paragraph (7) (as redesignated by
subparagraph (C))—
(i)by striking State educational
agency
and inserting eligible entity
;
(ii)by striking this subpart
and
inserting section 5202
;
(iii)by striking 10
and inserting
20
; and
(iv)by striking the State educational
agency
and all that follows through sources.
and
inserting the eligible entity, for expenses necessary to plan, begin
operations, and subsequently operate a public charter school.
;
and
(7)by striking subsection (g).
6.Section 5205 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7221d) is amended—
(1)in subsection (a)—
(A)in paragraph (3)(E), by striking
schools
each place the term occurs and inserting schools,
authorized public chartering agencies, and charter support
organizations
; and
(B)by adding at the end 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)by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively;
(3)by inserting after subsection (a) the
following:
(b)
(1)To carry out this subsection, the Secretary
shall reserve for each fiscal year not more than $8,000,000 of the amount
appropriated to carry out this subpart.
(2)In order to receive a grant under this
subsection, an entity shall—
(A)be—
(i)a charter school;
(ii)an eligible applicant;
(iii)an eligible entity; or
(iv)a consortium of entities described in
clauses (i), (ii), and (iii); and
(B)submit an application to the Secretary at
such time, in such manner, and containing such information as the Secretary may
require.
(3)The Secretary shall award grants under this
subsection on the basis of—
(A)the quality of the application;
(B)the capacity of the applicant to execute
the application; and
(C)the scale of the expected impact of the
application.
(4)A recipient of a grant under this
subsection shall use funds received under the grant to assist other schools in
the recipient's State and in other States in adopting charter school
innovations, or to disseminate information about charter school innovations,
through activities such as—
(A)assisting other entities 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 at 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, regarding the innovative
practices developed at the original site, for personnel of—
(i)local educational agencies that are
adopting innovations or successful practices used at charter schools;
(ii)authorized public chartering agencies;
or
(iii)charter support
organizations.
;
and
(4)in subsection (c) (as redesignated by
paragraph (2))—
(A)in paragraph (2)(A), by striking
paragraphs (2) and (3)(B) of section 5211(b)
and inserting
section 5212
;
(B)by redesignating paragraphs (5) and (6) as
paragraphs (6) and (7), respectively;
(C)by inserting after paragraph (4) the
following:
(5)A State that provides public charter
schools with access to existing adequate facility space may apply for a grant
under this subsection, if the State agrees that the State will, upon receipt of
the grant, develop a capital aid program consistent with the program described
in this subsection during the grant
period.
;
and
(D)in paragraph (7) (as redesignated by
subparagraph (B)), by striking (A), (B), and (C)
and inserting
(A) through (F)
.
7.Federal formula allocationSection 5206 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7221e) is amended—
(1)by striking the section heading and
inserting the following:
5206.Federal formula
allocation
;
and(2)in subsection (a), by inserting or
is in operation
after actually opens
.
8.Subpart 1 of part B of title V of the
Elementary and Secondary Education Act of 1965 (as amended by this Act) (20
U.S.C. 7221 et seq.) is further amended—
(1)by redesignating sections 5207 through 5211
as sections 5208 through 5212, respectively; and
(2)by inserting after section 5206 the
following:
5207.Credit enhancement for charter school
facilities programs
(a)The purpose of this section is to provide
grants to eligible entities to permit the eligible entities to demonstrate
innovative credit enhancement initiatives that assist charter schools to
address the cost of acquiring, constructing, and renovating facilities.
(b)Grants to eligible entitiesAfter reserving any funds as necessary for
grant evaluation or administration consistent with any applicable provisions
(including section 9601(a) of this Act and section 402(b)(1) of the Department
of Education Organization Act), the Secretary shall use the amounts available
to carry out this section to award, on a competitive basis, not less than 3
grants to eligible entities that have applications approved under this section
to demonstrate innovative methods of assisting charter schools to address the
cost of acquiring, constructing, and renovating facilities by enhancing the
availability of loans or bond financing for charter schools.
(c)
(1)Evaluation of applicationThe Secretary shall evaluate each
application submitted under subsection (e), and shall determine whether the
application is sufficient to merit approval.
(2)
(A)Subject to subparagraph (B) and paragraph
(3), the Secretary shall award—
(i)not less than 1 grant to an eligible entity
described in section 5211(6)(A);
(ii)not less than 1 grant to an eligible entity
described in section 5211(6)(B); and
(iii)not less than 1 grant to an eligible entity
described in section 5211(6)(C).
(B)Subparagraph (A) shall only apply if
applications are submitted that permit the Secretary to do so without approving
an application that is not of sufficient quality to merit approval.
(3)In the event the Secretary determines that
the funds made available under this section are insufficient to permit the
Secretary to award not less than 3 grants in accordance with this section, the
3-grant minimum under paragraph (2) shall not apply, and the Secretary may
determine the appropriate number of grants to be awarded in accordance with
subsection (d).
(d)Grants under this section shall be of a
sufficient size, scope, and quality so as to ensure an effective demonstration
of an innovative means of enhancing credit for the financing of charter school
acquisition, construction, or renovation.
(e)
(1)To receive a grant under this section, an
eligible entity shall submit to the Secretary an application in such form as
the Secretary may reasonably require.
(2)An application submitted under paragraph
(1) shall contain—
(A)a statement identifying the activities
proposed to be undertaken with funds received under this section, including how
the eligible entity will determine which charter schools will receive
assistance, and how much and what types of assistance charter schools will
receive;
(B)a description of the involvement of charter
schools in the application's development and the design of the proposed
activities;
(C)a description of the eligible entity's
expertise in capital market financing;
(D)a description of how the proposed
activities will leverage the maximum amount of private-sector financing capital
relative to the amount of Federal and State funds used and otherwise enhance
credit available to charter schools, including how the applicant will offer a
combination of rates and terms more favorable than rates and terms that a
charter school could receive without assistance under this section;
(E)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
sought;
(F)in the case of an application submitted by
an eligible entity that is a State governmental entity, a description of the
actions that the entity has taken, or will take, to ensure that charter schools
within the State receive the funding needed to have adequate facilities;
and
(G)such other information as the Secretary may
reasonably require.
(f)Charter school objectivesAn eligible entity receiving a grant under
this section shall use the funds deposited in the reserve account established
under subsection (g)(1) to assist 1 or more charter schools to access private
sector capital in order to accomplish one or more of the following
objectives:
(1)The acquisition (by purchase, lease,
donation, or otherwise) of an interest (including an interest held by a third
party for the benefit of a charter school) in improved or unimproved real
property that is necessary to commence or continue the operation of a charter
school.
(2)The construction (including
predevelopment costs in a case where construction or renovation cannot
proceed as a result of predevelopment findings) of new facilities, or the
renovation, repair, or alteration of existing facilities, necessary to commence
or continue the operation of a charter school.
(g)
(1)To assist charter schools to accomplish the
objectives described in subsection (f), an eligible entity receiving a grant
under this section shall, in accordance with State and local law, directly or
indirectly, alone or in collaboration with others, deposit the funds received
under this section (other than funds used for administrative costs in
accordance with subsection (h)) in a reserve account established and maintained
by the eligible entity for this purpose. Amounts deposited in such account
shall be used by the eligible entity for one or more of the following
purposes:
(A)Guaranteeing, insuring, and reinsuring
bonds, notes, evidences of debt, loans, and interests therein, the proceeds of
which are used for an objective described in subsection (f).
(B)Guaranteeing and insuring leases of
personal and real property for an objective described in subsection (f).
(C)Facilitating financing by identifying
potential lending sources, encouraging private lending, and other similar
activities that directly promote lending to, or for the benefit of, charter
schools.
(D)Facilitating the issuance of bonds by
charter schools, or by other public entities for the benefit of charter
schools, by providing technical, administrative, and other appropriate
assistance (including the recruitment of bond counsel, underwriters, and
potential investors and the consolidation of multiple charter school projects
within a single bond issue).
(E)Making limited loans to charter schools,
under such terms and conditions as the Secretary may prescribe.
(2)Funds received under this section and
deposited in the reserve account established under paragraph (1) shall be
invested in obligations issued or guaranteed by the United States or a State,
or in other similarly low-risk securities.
(3)Any earnings on funds received under this
section shall be deposited in the reserve account established under paragraph
(1) and used in accordance with such paragraph.
(h)Limitation on administrative
costsAn eligible entity may
use not more than 2 percent of the funds received for any fiscal year under
this section for the administrative costs of carrying out its responsibilities
under this section.
(i)
(1)Financial record maintenance and
auditThe financial records
of each eligible entity receiving a grant under this section shall be
maintained in accordance with generally accepted accounting principles and
shall be subject to an annual audit by an independent public accountant.
(2)
(A)Each eligible entity receiving a grant
under this section annually shall submit to the Secretary a report of the
eligible entity's operations and activities under this section.
(B)Each annual report submitted under
subparagraph (A) shall include—
(i)a copy of the most recent financial
statements, and any accompanying opinion on such statements, prepared by the
independent public accountant reviewing the financial records of the eligible
entity;
(ii)a copy of any report made on an audit of
the financial records of the eligible entity that was conducted under paragraph
(1) during the reporting period;
(iii)an evaluation by the eligible entity of the
effectiveness of its use of the Federal funds provided under this section in
leveraging private funds;
(iv)a listing and description of the charter
schools served during the reporting period;
(v)a description of the activities carried out
by the eligible entity to assist charter schools in meeting the objectives set
forth in subsection (f); and
(vi)a description of the characteristics of
lenders and other financial institutions participating in the activities
undertaken by the eligible entity under this section during the reporting
period.
(C)The Secretary shall review the reports
submitted under paragraph (2)(A) and shall provide a comprehensive annual
report to Congress on the activities conducted under this section.
(j)No full faith and credit for grantee
obligationsNo financial
obligation of an eligible entity entered into pursuant to this section (such as
an obligation under a guarantee, bond, note, evidence of debt, or loan) shall
be an obligation of, or guaranteed in any respect by, the United States. 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 section.
(k)
(1)The Secretary, in accordance with chapter
37 of title 31, United States Code, shall collect—
(A)all of the funds in a reserve account
established by an eligible entity under subsection (g)(1) if the Secretary
determines, not earlier than 2 years after the date on which the eligible
entity first received funds under this section, that the eligible entity has
failed to make substantial progress in carrying out the purposes described in
this section; or
(B)all or a portion of the funds in a reserve
account established by an eligible entity under subsection (g)(1) 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 this section.
(2)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 one or more of the objectives
described in subsection (f).
(3)The provisions of sections 451, 452, and
458 of the General Education Provisions Act shall apply to the recovery of
funds under paragraph (1).
(4)Nothing in this section shall be construed
to impair or affect the authority of the Secretary to recover funds under part
D of the General Education Provisions Act.
(l)To carry out this section, the Secretary
shall reserve for each fiscal year not less than 5 percent and not more than 15
percent of the amount appropriated under section
5212.
.
9.Section 5211 of the Elementary and Secondary
Education Act of 1965 (as redesignated by section 8(1)) (20 U.S.C. 7221i) is
amended—
(1)in paragraph (1)—
(A)by striking subparagraph (L);
(B)by redesignating subparagraphs (D) through
(K) as subparagraphs (E) through (L), respectively;
(C)by inserting after subparagraph (B) the
following:
(C)has an independent governing board that
enters into a performance-based agreement that encompasses one or more campuses
with an authorized public chartering agency in the State, which agreement shall
include a description of—
(i)how student performance will be measured in
each charter school pursuant to the State assessments that are required of
other schools and any other assessments or evaluations mutually agreeable to
the authorized public chartering agency and the charter school; and
(ii)criteria for renewal or revocation of the
charter;
;
(D)in subparagraph (E) (as redesignated by
subparagraph (B)), by striking elementary or secondary education, or
both
and inserting prekindergarten, elementary, or secondary
education, or adult education if permitted by State charter law, or any
combination of such types of education
;
(E)in subparagraph (I) (as redesignated by
subparagraph (B))—
(i)by striking school to
and
inserting “school—
(i)to
;
(ii)by striking children, and
that
and inserting “children;
(ii)that
;
and
(iii)by striking accommodated;
and inserting “accommodated; and
(iii)that does not give admissions preference to
any student on the basis of prior academic
achievement;
;
(F)in subparagraph (K) (as redesignated by
subparagraph (B)), by inserting and
after the semicolon;
and
(G)in subparagraph (L) (as redesignated by
subparagraph (B)), by striking ; and
and inserting a
period;
(2)by striking paragraph (3) and inserting the
following:
(3)The term eligible applicant
means—
(A)a developer that has applied to an
authorized public chartering agency to operate a charter school and provided
adequate and timely notice to that authority under section 5203(d)(3);
or
(B)a charter support
organization.
;
(3)by adding at the end the following:
(5)Charter support organizationThe term charter support
organization
means a public or private nonprofit organization that
provides assistance to a developer of a charter school during the planning,
program design, and initial implementation of a charter school.
(6)The term eligible entity
means—
(A)a public entity, such as a State
educational agency or other State or local governmental entity;
(B)a private nonprofit entity; or
(C)a consortium of entities described in
subparagraph (A) or (B).
;
and
(4)by redesignating paragraphs (1) through (6)
as paragraphs (2), (4), (5), (1), (3), and (6), respectively.
10.Authorization of
appropriationsSection 5212 of
the Elementary and Secondary Education Act of 1965 (as redesignated by section
8(1)) (20 U.S.C. 7221j) is amended to read as follows:
5212.Authorization of appropriations
(a)There are authorized to be appropriated to
carry out this subpart $650,000,000 for fiscal year 2011 and such sums as may
be necessary for each of the 5 succeeding fiscal years.
(b)In allocating funds under this subpart for
any fiscal year, the Secretary shall consider the relative need between the
programs under section 5202, section 5205(c), and section 5211 and the quality
of the applications submitted under such
sections.
.
11.Part B of title V of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7221 et seq.) is amended—
(1)by striking subpart 2; and
(2)by redesignating subpart 3 as subpart
2.
12.
(a)Section 5247(1) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7225f(1)) is amended by striking
5210
and inserting 5211
.
(b)The table of contents in section 2 of the
Elementary and Secondary Education Act of 1965 is amended—
(1)by striking the items relating to sections
5206 through 5211 and inserting the following:
Sec. 5206. Federal formula allocation.
Sec. 5207. Credit enhancement for charter school facilities
programs.
Sec. 5208. Solicitation of
input from charter school operators.
Sec. 5209. Records
transfer.
Sec. 5210. Paperwork
reduction.
Sec. 5211.
Definitions.
Sec. 5212. Authorization of
appropriations.
;
(2)by striking the item relating to subpart 2
of part B of title V;
(3)by striking the items relating to sections
5221 through 5231; and
(4)by striking the item relating to subpart 3
of part B of title V and inserting the following:
Subpart 2—Voluntary public
school choice
programs
.